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Who is India’s Adani and why is his company tanking?

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Who is India's Adani and why is his company tanking?

The business empire of Gautam Adani has shed tens of billions of dollars in value on the back of a report alleging accounting fraud that the Indian tycoon’s firm has strenuously rejected.

Who is Gautam Adani?

Adani, 60, is a publicity-shy school dropout of humble origins who rose to become the world’s third-richest man with a fortune — until last week — of around $130 billion.

Moving to Mumbai in his teens to work sorting diamonds, he formed his own import-export business. His big break came in 1995 when he acquired a shipping port just as India’s economy was opening up.

What does his empire do?

Today Adani Group does everything from power generation and coal mining to cement, media and food. Its seven listed units had a market value in January of around $220 billion.

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Critics say Adani’s closeness to Prime Minister Narendra Modi, a fellow native of Gujarat state, has brought his group an unfair advantage in winning business.

On the back of eye-watering rises in the share prices of his firms, Adani became Asia’s richest man. Globally only Elon Musk and Bernard Arnault and family were wealthier, according to Forbes.

What has been alleged?

On January 24, Hindenburg Research — an activist US investment group that bets on stocks falling — accused Adani Group of committing “a brazen stock manipulation and accounting fraud scheme over the course of decades”.

Hindenburg’s two-year investigation also found that elder brother Vinod Adani, “through several close associates, manages a vast labyrinth of offshore shell entities”.

“We believe the Adani Group has been able to operate a large, flagrant fraud in broad daylight in large part because investors, journalists, citizens and even politicians have been afraid to speak out for fear of reprisal,” it said.

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What has been the result?

The report has sparked a huge sell-off in shares in Adani’s firms, wiping out more than $68 billion in market value, according to Bloomberg News. Trading in some stocks was temporarily halted.

Adani’s personal wealth has dived by around $40 billion and he has tumbled down the real-time Forbes rich list to number eight.

The timing was also terrible, coming just as Adani Group is seeking to raise $2.5 billion to strengthen its finances with a sale of shares that is due to expire on Tuesday.

How has Adani reacted?

On January 25, Adani´s finance chief called the Hindenburg report a “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India´s highest courts”.

On Sunday the firm issued a 413-page statement that it said rebutted all of Hindenburg’s claims, calling the group the “Madoffs of Manhattan” — a reference to crooked financier Bernie Madoff.

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“This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” it said.

Did this reassure investors?

Some of Adani´s firms inched back upwards on Monday, but on the whole, investors continued to dump Adani stock, wiping off billions more in market value.
Hindenburg said that only about 30 pages of the Adani statement focused on issues related to its report.

“The remainder of the response consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables,” it said.

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Ukraine sharply boosts delivery of drones to armed forces

Ukraine sharply boosts delivery of drones to armed forces

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Ukraine sharply boosts delivery of drones to armed forces

Ukraine has delivered three times more drones to its armed forces so far this year than in the whole of 2023, a top commander said, as Ukrainian forces accelerate the use of unmanned craft in the war against Russia.

“This process continues and will only grow,” said Colonel Vadym Sukharevskyi, the commander of Ukraine’s drone forces.

Ukraine, which has been fighting off a full-scale Russian invasion for nearly 26 months, is seeking to ramp up its domestic arms manufacturing and use of innovative technologies to compete against its much larger and wealthier enemy.

He was speaking at an exhibition on Saturday showcasing Ukrainian-made unmanned vehicles for land, sea and air, electronic warfare systems and armoured vehicles.

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Ninety-nine percent of drones used by the Ukrainian military are produced domestically, Sukharevskyi said.

“It’s no secret that our resource limitations in artillery are compensated by drones, such as FPVs (first-person view) and (bomber) drop drones,” he told reporters, referencing an imbalance of artillery firepower between Ukraine and Russia which analysts put at six to one in Russia’s favour.

As the Ukrainian military is outgunned and outmanned on the battlefield, Moscow’s forces have been increasing pressure along the entire frontline and making gradual gains.

The increased use of drones by both sides has been shifting the conflict away from the battlefield to strikes on each other’s military, energy and transport infrastructure.

Ukrainian Unmanned Aerial Vehicles (UAVs), used to hit targets inside Russia in recent months, can now hit targets more than 1,200 km (750 miles) away, Sukharevskyi said.

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Tesla will lay off more than 10% of its workforce.

Oleksandr Kamyshin, Ukraine’s Minister of Strategic Industries, said Ukrainian weapons manufacturers had fuelled both military and economic progress in the country.

Ukraine’s booming military-industrial complex grew GDP by 1.5% in 2023, a significant chunk of the total GDP growth last year of around 5%.
Kamyshin said he was confident that figure would double to 3% of GDP growth this year. But he warned Ukraine’s government could not afford to buy up all its domestic weapons production.

Ukraine was in discussions with international allies about the purchase of weapons for Ukraine from Ukrainian makers to cover the financial shortfall, he said.

“I am convinced that we will start purchases from Ukrainian manufacturers with foreign funds in the new future,” he said. 

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Aseefa Bhutto Zardari sworn in MNA

Aseefa Bhutto Zardari sworn in MNA

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Aseefa Bhutto Zardari sworn in MNA

Aseefa Bhutto Zardari was sworn in as a member of the National Assembly.

NA Speaker Ayaz Sadiq administered the oath.

During the session, Bilawal Bhutto Zardari provided headphones to Aseefa Bhutto Zardari to reduce the noise disturbances as PTI MNAs raised slogans calling for the release of the PTI founder.

Following Aseefa Zardari’s swearing-in, PPP members also chanted slogans in support of the Bhutto family like ‘jiye Bhutto’. 

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British jets shot down Iranian drones, PM Sunak says

British jets shot down Iranian drones, PM Sunak says

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British jets shot down Iranian drones, PM Sunak says

British Prime Minister Rishi Sunak said on Sunday that British military jets shot down drones launched by Iran in its attack on Israel and called for “calm heads to prevail” to avoid an escalation of the conflict.

“I can confirm that our planes did shoot down a number of Iranian attack drones,” Sunak told broadcasters.

“If this attack had been successful, the fallout for regional stability would be hard to overstate. We stand by the security of Israel and the wider region, which is of course important for our security here at home, too. What we now need is for calm heads to prevail.”

Sunak was due to join discussions between Group of Seven leaders later on Sunday.

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“It’s important that we coordinate with allies and we’ll be discussing next steps at that moment,” he said

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