Crypto rise falters on fears of Evergrande contagion

Crypto rise falters on fears of Evergrande contagion
Chinese real estate company Evergrande Real Estate Group logo (Shutterstock)
Short Url
Updated 21 September 2021

Crypto rise falters on fears of Evergrande contagion

Crypto rise falters on fears of Evergrande contagion

Global investors are turning their eyes to Evergrande Group, China's second-largest property developer by sales, for fear of a possible credit contagion.

Cryptocurrency prices rebounded from a one-and-a-half month low on Tuesday despite heavy selling linked to loan default concerns by property developer China Evergrande.

Global markets started the week with concerns that Evergrande's problems could lead to repercussions on the Chinese and global economies, leading to a sell-off in riskier assets.

On Monday, many people woke up to the news of China's Evergrande Group losing a significant amount of its market capitalization as the company's shares plunged to an 11-year low. The Hang Seng Tech Index also plunged in value on Monday morning as the news roiled markets.

Evergrande's losses could cause a domino effect like the collapse of Lehman Brothers during the 2008 financial crisis.

"We can't take a very positive view just yet until we get through the next few days," said Matthew Dibb, chief operating officer at crypto index fund provider Singapore-based Stack Funds.

"This is purely sentiment-driven right now, and it's actually been off very low liquidity," he said, adding that it would be better to wait on the sidelines as crypto markets will continue to be affected by the contagion.

Bitcoin traded around $43,000, recovering from its low to $4,0192. It hit a four-month high of $52,000 on September 6, while the value of smaller rival Ether rose 1 percent to $3,055 after falling below $3,000 for the first time since early August.


Singapore suspends crypto exchange Bitget

Singapore suspends crypto exchange Bitget
Updated 15 sec ago

Singapore suspends crypto exchange Bitget

Singapore suspends crypto exchange Bitget

RIYADH: The regulator in Singapore has suspended Bitget, a crypto exchange that got into a fray after promoting the digital currency Army Coin, which is named after the followers of South Korean boy band BTS, Bloomberg reported.

Bitget, the sponsor of Italian soccer team Juventus, describes the army coin as a way to provide lifelong financial support to BTS members, but BTS’ agency Hybe said the coin has nothing to do with BTS and threatened legal action.
Bitget has removed the Singapore Monetary Authority logo from its website and blocked Singapore users from accessing the app and website, according to Bloomberg.
It also said on its website that it was established in 2018 in Singapore and has more than 1.5 million users worldwide.


Saudi Arabia, Oman to sign 13 trade and investment agreements

Saudi Arabia, Oman to sign 13 trade and investment agreements
Updated 11 min 29 sec ago

Saudi Arabia, Oman to sign 13 trade and investment agreements

Saudi Arabia, Oman to sign 13 trade and investment agreements

RIYADH: Saudi Arabia and Oman plan to sign thirteen trade and investment agreements, Oman’s minister of commerce, industry and investment promotion said to Asharq. 

The announcement came during the Saudi’s Crown Prince Mohammad bin Salman visit to the Sultanate. 

MORE TO FOLLOW


Italy’s Enel to launch renewable power project in Australia

Italy’s Enel to launch renewable power project in Australia
Updated 28 min 6 sec ago

Italy’s Enel to launch renewable power project in Australia

Italy’s Enel to launch renewable power project in Australia

RIYADH: Enel SpA is the latest European energy giant to announce plans to expand its renewable electricity sales in Australia. 

The Rome-based company will launch a “greentailer” offering 100 percent renewable power to help customers meet sustainability objectives, Bloomberg reported citing a statement by Enel.

The offering initially targets commercial and industrial users but plans to expand to residential users.

This will happen after Enel is issued a retail license this week by the Australian Energy Regulator, the statement said.

The move comes less than a month after the Royal Dutch Shell bought one of Australia’s largest household providers of renewable power.

Enel plans to switch from coal by 2027 and gas by 2040, toward clean energy. It already has 55 GW of renewable energy in its 90-GW global portfolio, Bloomberg said.


Egyptian business sector debt dropped by 77% in 3 years

Egyptian business sector debt dropped by 77% in 3 years
Image: Shutterstock
Updated 06 December 2021

Egyptian business sector debt dropped by 77% in 3 years

Egyptian business sector debt dropped by 77% in 3 years

RIYADH: Companies in the Egyptian business sector have managed to decrease their debts by a notable 77 percent in three years.

Hisham Tawfik, minister of Public Business Sector said the debts dropped from 44 billion Egyptian pounds ($2.8 billion) to 10 billion Egyptian pounds, with the remainder mostly consisting of taxes.

Tawfik said that a settlement had been reached on the debt with only taxes outstanding.

He added that the original value of the debt in 2018 also included costs such as electricity and petroleum. 


Oil gains after Saudi price hike indicating confidence in the demand outlook

Oil gains after Saudi price hike indicating confidence in the demand outlook
Image: Shutterstock
Updated 06 December 2021

Oil gains after Saudi price hike indicating confidence in the demand outlook

Oil gains after Saudi price hike indicating confidence in the demand outlook
  • The price hikes were implemented just days after OPEC+ had agreed to boost output in January

RIYADH: Oil prices rose after top exporter Saudi Arabia raised prices for its crude sold to Asia and the US, shrugging off worries around the omicron variant and suggesting confidence in the demand outlook. 

Bloomberg reported that oil giant, Saudi Aramco, raised its key Arab Light grade for customers in Asia by 60 cents from December to $3.30 a barrel above a benchmark, according to a statement.

The price hikes were implemented just days after OPEC+ had agreed to boost output in January.

"The Saudi move to increase pricing is driving the market,” said Warren Patterson, Singapore-based head of commodities strategy at ING Groep NV.

“A bit of an odd move, given the supply hike in January, the omicron uncertainty and the expectation of a better supplied market in the first quarter of 2022.”