Tag: INSR

Turkey orders arrests over collapsed buildings in earthquake
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Government vows meticulous probe into those responsible

Nearly 25,000 buildings collapsed or badly damaged

Opposition has accused government of not enforcing regulations

Erdogan says opposition lies to besmirch government

One developer arrested as he prepared to fly from Turkey
ISTANBUL, Feb 12 (Reuters) – Turkey vowed on Sunday to investigate thoroughly anyone suspected of responsibility for the collapse of buildings in the country’s devastating earthquakes nearly one week ago and has already ordered the detention of 113 suspects.

Vice President Fuat Oktay said overnight that 131 suspects had so far been identified as responsible for the collapse of some of the thousands of buildings flattened in the 10 provinces affected by the tremors early last Monday.

“Detention orders have been issued for 113 of them,” Oktay told reporters in a briefing at the disaster management coordination centre in Ankara.

“We will follow this up meticulously until the necessary judicial process is concluded, especially for buildings that suffered heavy damage and buildings that caused deaths and injuries.”

He said the justice ministry had established earthquake crimes investigation bureaus in the quake zone provinces to investigate deaths and injuries.

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Environment Minister Murat Kurum said that 24,921 buildings across the region had collapsed or were heavily damaged in the quake, based on assessments of more than 170,000 buildings.

Rescuers were still looking for survivors in the earthquake rubble six days after the disaster, which hit parts of Syria and Turkey. The death toll has exceeded 28,000 and is expected to rise further.

Opposition parties have accused President Tayyip Erdogan’s government of not enforcing building regulations, and of mis-spending special taxes levied after the last major earthquake in 1999 in order to make buildings more resistant to quakes.

[1/7] Rescuers carry survivor Muzeyyen Ofkeli in the aftermath of a deadly earthquake, in Hatay, Turkey February 12, 2023. REUTERS/Kemal Aslan

Erdogan has said the opposition just tells lies and spreads slander to besmirch the government, obstructing investment instead of facing up to corruption in the opposition-run municipalities.

In the 10 years to 2022, Turkey slipped 47 places in Transparency International’s Corruption Perception Index to 101, having been as high as 54 out of 174 countries in 2012.

State prosecutors in Adana ordered the detention of 62 people in an investigation into collapsed buildings, while prosecutors sought the arrest of 33 people in Diyarbakir for the same reason, state-owned Anadolu news agency reported.

It said eight people had been detained in Sanliurfa and four in Osmaniye in connection with destroyed buildings believed to have faults, such as columns being removed.

Police detained the developer of one residential complex which collapsed in Antakya at Istanbul Airport as he prepared to board a plane for Montenegro on Friday evening and he was formally arrested on Saturday, according to Anadolu.

The upmarket 12-storey residential complex was completed a decade ago and contained 249 apartments. There was no information on the casualties in that building.

The arrested man told prosecutors he did not know why the complex collapsed and that his desire to go to Montenegro was unrelated, Anadolu reported.

“We fulfilled all procedures set out in legislation,” he was quoted by Anadolu as saying in his statement. “All licenses were obtained.”

Additional reporting by Dominic Evans,
Writing by Daren Butler;
Editing by Ece Toksabay and Raissa Kasolowsky

Our Standards: The Thomson Reuters Trust Principles.
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February 13, 2023
Adani’s market losses top $100 bln as crisis shockwaves spread
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Market rout deepens in Indian tycoon Adani’s shares

Adani Enterprises loses $26 bln in value since report

Falls after Adani pulled share sale, investors spooked

Analysts say signals confidence crisis in Indian market
NEW DELHI/MUMBAI, Feb 2 (Reuters) – Adani’s market losses swelled above $100 billion on Thursday, sparking worries about a potential systemic impact a day after the Indian group’s flagship firm abandoned its $2.5 billion stock offering.

Another challenge for Adani on Thursday came when S&P Dow Jones Indices said it would remove Adani Enterprises from widely used sustainability indices, effective Feb. 7, which would make the shares less appealing to sustainability-minded funds.

In addition, India’s National Stock Exchange said it has placed on additional surveillance shares of Adani Enterprises <ADEL.NS>, Adani Ports <APSE.NS> and Ambuja Cements <ABUJ.NS>. read more

However, Adani Group Chairman Gautam Adani is in talks with lenders to prepay and release pledged shares as he seeks to restore confidence in the financial health of his conglomerate, Bloomberg News reported on Thursday. read more

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The shock withdrawal of Adani Enterprises’ share sale marks a dramatic setback for founder Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years but have plunged in just a week after a critical research report by U.S.-based short-seller Hindenburg Research.

Aborting the share sale sent shockwaves across markets, politics and business. Adani stocks plunged, opposition lawmakers called for a wider probe and India’s central bank sprang into action to check on the exposure of banks to the group. Meanwhile, Citigroup’s (C.N) wealth unit stopped making margin loans to clients against Adani Group securities.

The crisis marks an dramatic turn of fortune for Adani, who has in recent years forged partnerships with foreign giants such as France’s TotalEnergies (TTEF.PA) and attracted investors such as Abu Dhabi’s International Holding Company as he pursues a global expansion stretching from ports to the power sector.

In a shock move late on Wednesday, Adani called off the share sale as a stocks rout sparked by Hindenburg’s criticisms intensified, despite it being fully subscribed a day earlier.

“Adani may have started a confidence crisis in Indian shares and that could have broader market implications,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

Adani Enterprises shares tumbled 27% on Thursday, closing at their lowest level since March 2022.

Other group companies also lost further ground, with 10% losses at Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Transmission (ADAI.NS), while Adani Ports and Special Economic Zone shed nearly 7%.

Since Hindenburg’s report on Jan. 24, group companies have lost nearly half their combined market value. Adani Enterprises – described as an incubator of Adani’s businesses – has lost $26 billion in market capitalisation.

Adani is also no longer Asia’s richest person, having slid to 16th in the Forbes rankings of the world’s wealthiest people, with his net worth almost halved to $64.6 billion in a week.

The 60-year-old had been third on the list, behind billionaires Elon Musk and Bernard Arnault.

His rival Mukesh Ambani of Reliance Industries (RELI.NS) is now Asia’s richest person.

[1/4] Indian billionaire Gautam Adani addresses delegates during the Bengal Global Business Summit in Kolkata, India April 20, 2022. REUTERS/Rupak De Chowdhuri

Reuters Graphics

BROADER CONCERNS

Adani’s plummeting stock and bond prices have raised concerns about the likelihood of a wider impact on India’s financial system.

India’s central bank has asked local banks for details of their exposure to the Adani Group, government and banking sources told Reuters on Thursday.

CLSA estimates that Indian banks were exposed to about 40% of the $24.5 billion of Adani Group debt in the fiscal year to March 2022.

Dollar bonds issued by entities of Adani Group extended losses on Thursday, with notes of Adani Green Energy crashing to a record low. Adani Group entities made scheduled coupon payments on outstanding U.S. dollar-denominated bonds on Thursday, Reuters reported citing sources.

“We see the market is losing confidence on how to gauge where the bottom can be and although there will be short-covering rebounds, we expect more fundamental downside risks given more private banks (are) likely to cut or reduce margin,” said Monica Hsiao, chief investment officer of Hong Kong-based credit fund Triada Capital.

In New Delhi, opposition lawmakers submitted notices in parliament demanding discussion of the short-seller’s report.

The Congress Party called for a Joint Parliamentary Committee be set up or a Supreme Court monitored investigation, while some lawmakers shouted anti-Adani slogans inside parliament, which was adjourned for the day.

ADANI VS HINDENBURG

Adani made acquisitions worth $13.8 billion in 2022, Dealogic data showed, its highest ever and more than double the previous year.

The cancelled fundraising was critical for Adani, which had said it would use $1.33 billion to fund green hydrogen projects, airports facilities and greenfield expressways, and $508 million to repay debt at some units.

Hindenburg’s report alleged an improper use of offshore tax havens and stock manipulation by the Adani Group. It also raised concerns about high debt and the valuations of seven listed Adani companies.

The Adani Group has denied the accusations, saying the allegation of stock manipulation had “no basis” and stemmed from an ignorance of Indian law. It said it has always made the necessary regulatory disclosures.

Adani had managed to secure share sale subscriptions on Tuesday even though the stock’s market price was below the issue’s offer price. Maybank Securities and Abu Dhabi Investment Authority had bid for the anchor portion of the issue, investments which will now be reimbursed by Adani.

Late on Wednesday, the group’s founder said he was withdrawing the sale given the share price fall, adding his board felt going ahead with it “will not be morally correct”.

Reporting by Chris Thomas, Nallur Sethuraman, Tanvi Mehta, Ira Dugal, Aftab Ahmed, Sumeet Chatterjee, Anshuman Daga, Summer Zhen, Ross Kerber and Bansari Mayur Kamdar; Editing by Muralikumar Anantharaman, Jason Neely and Alexander Smith

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February 3, 2023
Adani crisis ignites Indian contagion fears, credit warnings
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Both houses of parliament adjourned amid row

Flagship Adani firm plunges 35% at one point

Moody’s warns will find it harder to raise capital
NEW DELHI, Feb 3 (Reuters) – Financial contagion fears spread in India on Friday as the Adani Group’s crisis worsened, with ratings agency Moody’s warning the conglomerate may struggle to raise capital and S&P cutting the outlook on two of its businesses.

Chaotic scenes in both houses of India’s parliament led to their adjournment on Friday as some lawmakers demanded an inquiry after a dramatic meltdown in the stock market values of Indian billionaire Gautam Adani’s companies.

The crisis was triggered by a Hindenburg Research report last week in which the U.S.-based short-seller accused the Adani Group of stock manipulation and unsustainable debt.

Adani Group, one of India’s top conglomerates, has rejected the criticism and denied wrongdoing in detailed rebuttals, but that has failed to arrest the unabated fall in its shares.

In the latest sign of the crisis widening, India’s ministry of corporate affairs has begun a preliminary review of Adani Group’s financial statements and other regulatory submissions made over the years, two government officials told Reuters.

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Although shares in Adani companies recovered after sharp falls earlier on Friday, the seven listed firms have still lost about half their market value, totalling more than $100 billion since Hindenburg published its report on Jan. 24.

Moody’s warned the share plunge could hit the Adani Group’s ability to raise capital, although fellow credit ratings agency Fitch saw no immediate impact on its ratings.

“These adverse developments are likely to reduce the group’s ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years. We recognise that a portion of the capex is deferrable,” Moody’s said.

For Adani, a former school drop-out from Gujarat, the western home state of Indian Prime Minister Narendra Modi, the crisis presents the biggest reputational and business challenge of his life, as his firm struggles to assuage investor concerns.

Amid fears the turmoil could spill over into the broader financial system, some Indian politicians have called for a wider investigation, and sources have told Reuters the central bank has asked lenders for details of exposure to the group.

“Contagion concerns are widening, but still limited to the banking sector,” Charu Chanana, a market strategist with Saxo Markets in Singapore, said on Friday.

The Reserve Bank of India said the country’s banking system remains resilient and stable. State Bank of India said it was not concerned about the exposure to Adani Group, but further financing to its projects would be “evaluated on its own merit”.

Adani Enterprises shares closed 1.4% higher, after earlier slumping 35% to hit their lowest since March 2021. That low took its losses to nearly $33.6 billion since last week, a 70% fall.

Shares fell 5% in Adani Total Gas (ADAG.NS), a joint venture with France’s TotalEnergies (TTEF.PA), which said its exposure to Adani companies was limited.

Traffic moves past the logo of the Adani Group installed at a roundabout on the ring road in Ahmedabad, India, Feb. 2, 2023. REUTERS/Amit Dave

Adani Ports and Special Economic Zone (APSE.NS) was up 8%, while Adani Transmission (ADAI.NS) and Adani Green Energy (ADNA.NS) were both down 10%.

“There is a risk that investor concerns about the group’s governance and disclosures are larger than we have currently factored into our ratings,” S&P said, as it cut its outlook on Adani Ports and Adani Electricity to negative from stable.

India’s divestment secretary Tuhin Kanta Pandey told Reuters that Life Insurance Corp (LIC) shareholders and customers should not be concerned about its exposure to the Adani Group.

State-run LIC (LIFI.NS) has a 4.23% stake in the flagship Adani Enterprises, while its other exposures include a 9.14% stake in Adani Ports.

Reuters Graphics

‘ONE INSTANCE’

Adani, 60, has in recent years forged partnerships with, and attracted investment from, foreign giants as he pursued global expansion in industries from ports to power.

The market and financial crisis means foreign investors, many already underweight on India as they consider its stock market overpriced, are reducing exposure.

“One instance, however much talked about globally it may be … is not going to be indicative of how well Indian financial markets are governed,” Indian Finance Minister Nirmala Sitharaman told Network18 when asked about the market weakness.

Reuters Graphics

Hindenburg’s report said key listed Adani companies had “substantial debt” and shares in the seven listed firms had a downside of 85% due to what it called sky-high valuations.

The Adani Group has called the report baseless and said over the past decade, its companies have “consistently de-levered”.

The listed Adani firms now have a combined market value of $107.5 billion, versus $218 billion before the report.

That has forced Adani to cede the crown of Asia’s richest person to Indian rival Mukesh Ambani of Reliance Industries Ltd (RELI.NS), and he has slid to 17th in Forbes’ list of the world’s wealthiest people.

He had ranked third, behind Elon Musk and Bernard Arnault.

Reporting by Aditya Kalra, Chris Thomas, Ankur Banerjee, Bansari Mayur Kamdar, Shivam Patel, Tanvi Mehta and Rae Wee in Singapore; Editing by Clarence Fernandez, Mark Potter and Alexander Smith

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February 3, 2023
Biden, Florida’s DeSantis work ‘hand-in-glove’ on Hurricane Ian recovery

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FORT MYERS, Fla., Oct 5 (Reuters) – U.S. President Joe Biden met with Florida Governor Ron DeSantis on Wednesday to assess the devastation from Hurricane Ian, and stressed the need for a united federal and state effort for the lengthy recovery ahead.

Biden, a Democrat, and DeSantis, his potential 2024 Republican presidential rival, have clashed over multiple issues including COVID-19 vaccines, abortion and LGBT rights.

They largely set those differences aside during the visit to hard-hit Fort Myers as Biden pledged federal support for a cleanup and rebuilding effort that could cost taxpayers billions of dollars and take years to complete.

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Biden and DeSantis greeted each other warmly and stood shoulder to shoulder as they met with victims of the hurricane.

“Mr. President, welcome to Florida. We appreciate working together across various levels of government,” DeSantis, often a blistering critic of the president, told Biden during remarks after the tour.

“We’re in this together,” said Biden, who referred to DeSantis as ‘Guv,’ and complimented the “good job” the governor had done. “We’ve worked hand-in-glove. We have very different political philosophies.”

More than 100 people died and nearly 400,000 homes and businesses remained without power in Florida on Tuesday, five days after Hurricane Ian crashed across the state.

Biden opened his remarks by saying the storm showed climate change was real and needed to be addressed, something some in DeSantis’s Republican party have denied. “I think the one thing this has finally ended is a discussion about whether or not there’s climate change and we should do something about it,” he said.

Climate change is making hurricanes wetter, windier and altogether more intense, experts say.

The president also stressed the amount of federal help Florida receive for storm aid and as part of Democrat-backed spending, including $13 billion over the next five years for highways and bridges.

“The key here is building back better and stronger to withstand the next storm. We can’t build back to what it was before. You got to build back better, because we know more is coming,” he said.

Biden and his wife, Jill, arrived in Fort Meyers early Wednesday afternoon, two days after visiting Puerto Rico, a U.S. territory battered by Hurricane Fiona last month.

A U.S. flag hangs in a gangway between affected buildings after Hurricane Ian caused widespread destruction in Fort Myers Beach, Florida, U.S., October 4, 2022. REUTERS/Marco Bello

Biden got an aerial view of the destruction during a helicopter flight and called the destruction “horrific.”

BILLIONS OF DOLLARS, INSURANCE QUESTIONS

Federal Emergency Management Agency Administrator Deanne Criswell said it would cost the federal government billions of dollars to repair the damage from the storm.

“We are still very much in the lifesaving and stabilization mode. They are just beginning the assessments of what the actual extent of damages to the infrastructure. It’s going to be in the billions,” Criswell told reporters on Air Force One.

Biden and Criswell also suggested Wednesday that Florida’s insurance industry, which faces tens of billions of dollars in losses for the storm, could come under increasing scrutiny.

“The fact of the matter is, states like Florida, where they’ve had a lot of natural disasters because of flooding and hurricanes and the like – the insurance industry is being very stretched,” Biden said. “We’re going to have to have a hard look at whether or not the insurance industry can be sustained.”

Fort Myers Mayor Ray Murphy, who also manages commercial real estate, told Reuters he and Biden were having a friendly chat and “trying to encourage each other” in a colorful exchange picked up by a microphone.

“No one fucks with a Biden,” the president told Murphy, to which the mayor replied: “You’re goddamn right … That’s exactly right.”

Murphy, elected on a nonpartisan basis, said there was no mention of DeSantis in the brief conversation.

Biden visited Florida in July after a condominium complex collapsed and killed nearly 100 people, and stressed cooperation with DeSantis at the time.

But before Hurricane Ian hit, Biden had planned a rally in the political battleground state where Democratic officials expected the president to attack the governor.

On climate change, Biden has made reducing carbon emissions a focus of his presidency, while DeSantis backed funding to harden Florida’s defenses against flooding but also opposed some previous disaster-relief aid and pushed pension funds not to consider environmental impact when they invest.

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Additional reporting by Doina Chiacu and Andrea Shalal; Writing by Jeff Mason and Trevor Hunnicutt; Editing by Heather Timmons, Aurora Ellis and Lincoln Feast

Our Standards: The Thomson Reuters Trust Principles.

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October 5, 2022