US President Joe Biden speaks to employees at the CS Wind America Inc on November 29, 2023 in Pueblo, Colorado.
Helen H. Richardson | The Denver Post | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Mixed bag on Wall Street U.S. stocks ended mixed Tuesday as investors prepared for key inflation data due out later this week. The S&P 500 and the Nasdaq Composite closed with small gains, up 0.17% and 0.37%, respectively. The 30-stock Dow fell for a second straight day, off by 0.25%. Bitcoin also extended gains rising above $57,000.
Apple kills EV plans Apple has cancelled its plan to build electric cars, according to Bloomberg. This signals an end to the company’s secretive effort to compete in the EV space against rival Tesla. Reports of Apple’s ambition first surfaced in 2014 after it recruited automotive engineers and other talent from auto companies.
Will South Korean measures work? South Korea’s Japan-style measures to boost corporate governance may not work to lift its undervalued stock markets and tackle the so-called “Korea discount.” In its latest attempt, the Financial Services Commission revealed a “Corporate Value-up Program,” aimed at supporting shareholder returns through incentives including tax benefits.
Honor’s foray into flip phones Chinese technology firm Honor will launch a foldable flip phone this year, the company’s CEO George Zhao told CNBC. It will be the firm’s first entry into the vertical-folding style of smartphone as the company looks to push into the premium end of the market in a challenge to tech giants like Samsung and Apple.
[Pro] Alibaba’s compelling appeal Despite the recent slump in Alibaba’s shares, the Chinese e-commerce giant remains on the radar of fund managers. “Alibaba is our third biggest stock [position] now. Why? The valuation is absolutely compelling,” said Andrew Lapping, Ranmore’s chief investment officer.
Americans’ attitudes about the economy have soured.
Consumer confidence fell to 106.7 in February, said the Conference Board, down from a revised 110.9 in January. This comes after a three-month streak of improving mood.
The index measuring short-term expectations for income, business and the job market fell to 79.8 from 81.5 in January. A reading under 80 often signals an upcoming recession.
While Americans were less worried about food and gas prices, there were rising concerns over jobs and the upcoming presidential elections.
“The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy,” said Dana Peterson, chief economist at The Conference Board.
“While overall inflation remained the main preoccupation of consumers, they are now a bit less concerned about food and gas prices, which have eased in recent months. But they are more concerned about the labor market situation and the US political environment.”
The drop in consumer confidence was broad based, affecting most income groups, as well as among people under 35 years old and those aged 55 and over, according to Peterson.
The survey findings reveal that despite data showing a strong labor market and a surprisingly resilient economy, public perception on the economy proves to be a challenge ahead of high-stakes elections this year.
This signals troubling signs for President Joe Biden, who has been trying to tout his administration’s economic accomplishments ahead of a likely rematch against Republican nominee Donald Trump in November.
Chinese yuan cash bills and chinese flag (money, economy, finance, inflation, crisis)
Javier Ghersi | Moment | Getty Images
Ratings agency Moody’s downgraded its outlook on China’s government credit ratings to negative from stable, expecting Beijing’s support and possible bailouts for distressed local governments and state-owned enterprises to diminish China’s fiscal, economic and institutional strength.
Moody’s though retained China’s “A1” long-term rating on the country’s sovereign bonds, while expecting China annual GDP growth to slow to 4% in 2024 and 2025 and average 3.8% from 2026 to 2030.
Structural factors including weak demographics will drive a decline to 3.5% by 2030, it said.
Read more about China from CNBC Pro
The move underscores concerns over rising debt levels and the impact on broader growth in the world’s second-largest economy as Beijing resorts to fiscal stimulus to support local governments and contain the spiraling debt crisis among the country’s property developers.
“The outlook change also reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector,” Moody’s said in a statement issued Dec. 5.
“These trends underscore the increasing risks related to policy effectiveness, including the challenge to design and implement policies that support economic rebalancing while preventing moral hazard and containing the impact on the sovereign’s balance sheet,” Moody’s added.
China credit default swaps (the cost of insuring against a government default) rose 4 basis points from Monday’s closing level, according to Reuters data.
China’s Finance Ministry expressed its disappointment with Moody’s downgrade decision.
“Moody’s concerns about China’s economic growth prospects and fiscal sustainability are unnecessary,” the ministry said in a statement Tuesday.
“Since the beginning of this year, in the face of the complex and severe international situation, and against the background of unstable global economic recovery and weakening momentum, China’s macro economy has continued to recover and high-quality development has steadily advanced,” the ministry added.
Beijing also announced a rare mid-year fiscal revision, which included the issuance of 1 trillion yuan in ($137 billion) in government debt — one of the biggest changes to the national budget in years. The amount was for the reconstruction of areas hit hard by natural disasters — such as this summer’s historic floods — and for catastrophe prevention.
Moody’s also cited the 1.6 trillion yuan increase in central government transfers to regional and local governments in 2022 from 2021, which partly but only temporarily offset the 2 trillion yuan in lost land sales revenue, as a key development that factored in its thinking.
Regional banking stocks are on pace for their worst year back to 2006, with the long tail of the SVB collapse. But bank stocks had been in rally mode since May, when First Republic was seized by the government and sold to JPMorgan, until bond rating agencies began issuing August warnings and downgrades.
Bloomberg | Bloomberg | Getty Images
Just how bad off are America’s banks, really?
Bond rating agencies trash-talked banks all through August, helping drive a near-6% drop in the S&P 500 during the month. But Wall Street equity analysts who cover banks argue that their counterparts on the bond side of the research profession, at Moody’s Investors Service, Standard & Poor’s and Fitch Ratings, got it wrong. They point to a period of rising bank stock prices before the bond ratings calls and better-than-expected earnings reports as evidence that things are better than the agencies think.
While the regional banking sector as tracked by the SPDR S&P Regional Banking Index is down nearly 25% year to date, according to Morningstar — and on pace for the worst year on record back to its inception in 2006, with the long tail of the SVB collapse hard to claw back gains from — bank stocks had been in rally mode from May to July. Regional bank stocks, in particular, gained as much as 35% before the bond warnings and downgrades began. Meanwhile, second-quarter bank earnings beat forecasts by 5%, according to Morgan Stanley.
The higher interest rates bond analysts cited hurt profits some, but most banks’ net interest income and margins were higher than a year before. Delinquencies on commercial real estate loans rose, but stayed well below 1% of loans at most institutions, with some of the banks singled out by bond rating agencies reporting no delinquencies at all. The ratings actions pushed the regional bank stock index 10% lower for the month-long period ending Sept. 8, according to Morningstar (the Moody’s bank warning was issued August 7).
At stake is not only what bank stocks may do next, but whether banks will be able to fill their role in providing credit to the rest of the economy, said Jill Cetina, associate managing director for U.S. banks at Moody’s. Their medium-term fate will have a lot to do with outside forces, from whether the Federal Reserve cuts interest rates next year to how fast the return-to-work push from employers in recent months gains momentum. Looming over all of this is the question of whether there will be a recession by early 2024 that worsens credit problems and cuts banks’ asset values, as Moody’s Investors Service expects.
“It’s reasonable to ask, is there a credit contraction in the banking sector?” Cetina said. She pointed to Federal Reserve surveys of bank lending officers that look like pre-recession measures in 2007 and 2000, with many banks raising credit prices and tightening lending standards. “Banks play a key role in shaping macroeconomic outcomes,” she said.
By any reckoning, the argument about banks is about two things: Interest rates and real estate, specifically office buildings. (Banks also call warehouses and apartment complexes commercial real estate, but their vacancy rates are not historically high). The arguments depend on two assumptions that markets believe less than they did earlier this year.
The bear case relies heavily on the prospect of a recession, which stock investors and economists think is much less likely than many believed six months ago. Goldman Sachs chief economist Jan Hatzius cut the firm’s estimated U.S. recession odds to 15% on Sept. 4, meaning the bank sees only a baseline risk of a downturn. At Moody’s, while the bond-rating arm expects a U.S. recession next year, the company’s economic consulting unit Moody’s Analytics doesn’t.
It also turns on an assumption of sustained high interest rates. While debate continues and the Fed’s own commentary continues to express a willingness to raise rates more, many investors now think the Fed will begin to trim the Fed funds rate by spring as inflation fades, according to CME Fedwatch. And while experts such as RXR Realty CEO Scott Rechler and billionaire real estate investor Jeff Greene believe office vacancies will stay high enough to force defaults by more developers, even as employers gain the upper hand against workers who want to continue to work from home, that didn’t show up in second–quarter bank earnings.
“I don’t necessarily think what they said is not true– it’s just less true than in May,” said CFRA Research bank stock analyst Alexander Yokum. “Expectations have improved over the last few months.”
March’s bank failures were about interest rates. The rise in rates since the Fed’s first post-Covid boost to the Fed funds rate in March 2022 had left banks with trillions of dollars of bonds written at lower rates before last year, whose value fell as rates rose. That opened precarious holes in the balance sheets of some banks, and fatal ones for banks that failed. Coupled with commercial real estate, higher funding costs create “layers” of risk going forward, Cetina said. “They’re both a problem, and they are happening at the same time,” she said.
The Fed stepped in with a short-term solution for banks’ funding issues, extending more than $100 billion in financing under a program called the Bank Term Funding Program, designed to help banks close the gap between the book value of their securities, mostly U.S. Treasuries, and their market value in a new, higher interest-rate market. That lets banks act as if their capital is not impaired, when it is, said veteran analyst and Fed critic Dick Bove of Odeon Capital.
“If the capital is not there, the bank can’t put more money out there” in loans, Bove said. “People say they understand that, but they don’t.”
Interest rate effects on bank profits
The jump in rates threatens the net interest income that is the source of bank profits and their long-term lending capacity, the bond rating agencies said. Indeed, interest income fell at most banks in the second quarter – compared to the first quarter – and Yokum says it will fall more in the third quarter. So did net interest margin – the difference between the rates banks pay for funds, usually deposits, and what they collect on loans and other assets.
But the drops were small enough that banks made up the lost income elsewhere. The average regional bank stock rose 8% after earnings, Morgan Stanley said, with banks beating profit forecasts by an average of 5%. Most banks reported before the bond agencies acted.
Bulls point out that while interest rates began to bite at bank profits in the second quarter, the impact so far has been minor for most, and several banks said that higher interest rates have boosted profits over the past year. At most banks, both net interest income and net interest margins did better in the second quarter than in the second quarter of 2022, making rising rates helpful to bank profits overall. Morgan Stanley analysts Manan Gosalia and Betsy Graseck said most banks, even regional banks thought to be most vulnerable to depositors fleeing as rates rise, also added deposits in the quarter. That stems fears they would boost rates sharply to keep customers.
Not all banks felt much pressure on deposit rates: Wells Fargo said its average was 1.13% in the second quarter; at Bank of America it was just 1.24%.
Credit quality is on the decline
Credit quality is getting a little worse, but still better than pre-pandemic levels at most institutions, Yokum said. Even the office sector still is showing few signs of serious problems. Moody’s calls banks’ current credit quality “solid but unsustainable.”
Valley has $50 billion in loans on its balance sheet, and $27.8 billion of them are in commercial real estate, according to the bank, a much higher proportion than the 7% at Bank of America. But only 10% of Valley’s commercial real estate loans, less than 6% of its total loans, are to office buildings.
Valley has had stumbles in office lending, to be sure. It disclosed that its total non-performing assets were $256 million at the end of June. But that remains only about half of 1% of its total loan book. Chargeoffs of loans the bank thinks won’t be fully repaid fell in the quarter, and the company’s $460 million in loan loss reserves is nearly double the amount of all its troubled loans.
Similarly, Zions’ $2 billion office portfolio, part of a commercial real estate exposure that is more than a quarter of the bank’s assets, doesn’t have a single delinquent loan, according to the bank’s second-quarter report. Neither did Commerce.
“Zions’ chargeoffs were .09 of 1% of total assets,” said Yokum, who doesn’t follow Commerce or Valley. “Not alarming.”
Many banks argue that bears overstate real-estate lending problems by overlooking how few of their real estate loans are to office buildings. With hotel and warehouse occupancy high, they’re selling the idea that only their office portfolio is at serious risk, and that the office loans are too small to threaten banks’ health. At KeyCorp, whose shares have dropped 36% this year and which S&P downgraded, office loans are 0.8% of the bank’s total.
Bank delinquencies rose in the last quarter, but remain lower than a year ago.
“We have limited office exposure with … almost no delinquencies,” Fifth Third Bancorp chief financial officer James Leonard said on the bank’s earnings call. “We continue to watch office closely and believe the overall impact on Fifth Third will be limited.”
Two big questions about banks finding a bottom
There are two big unanswered questions about banks and real estate. Eight months into a year where nearly a quarter of office building mortgages are expected to mature and need refinancing at today’s higher rates, chargeoffs — while getting more common — are still less than 1% of loans at nearly every major bank. Is a surge coming, or are banks delaying a reckoning with short-term financing, hoping for rates to fall or occupancy to rise?
And, when will more workers go back to the office, relieving pressure on companies to stop paying for space they don’t really use?
The share of U.S. workers working from home at least part of the week has stabilized at around 20-25%, below its peak of 47% in 2021 but well above the pre-pandemic 2.6%, Goldman’s Hatzius wrote in an Aug. 28 report. With CEOs as prominent as Amazon’s Andy Jassy becoming more forceful about return to office, Goldman says online job postings are down to only 15% of new positions allowing work from home. Even Zoom Communications, maker of video-conferencing software, is making staffers return to the office two days a week. Hatzius estimates remaining part-time WFH will add 3 percentage points to office building vacancy rates by 2030. But that impact will be lessened by a near-halting in new construction, he wrote.
Findings like these have some market players speculating that a bottom may be near.
Manhattan real estate attorney Trevor Adler says he’s seeing an uptick, with public sector tenants like Empire State Development signing long-term leases. ESD took 117,000 square feet in Midtown in July, he said.
“To have that kind of deal in July is not typical,” said Adler, a partner at Stroock & Stroock & Lavan. “That work is keeping me busy, educational, hospital and charity.”
Others argue that the slow rate of foreclosures is normal early in what they believe is a long-term crisis.
“Crises happen slowly, then all at once,” said Ben Miller, CEO of Washington-based Fundrise, an online platform for real estate investment, pointing out that several years elapsed between early warnings and the depth of the late-2000s home mortgage crisis.
Banks have been encouraged by the Fed and other bank regulators to give previously-solvent borrowers extensions or other workouts, Miller said. Regulators argue that this guidance, released in June, simply restated previous policy.
The primary way the Fed can defuse upcoming foreclosures is to lower rates, so developers can refinance office buildings and stay profitable, Miller said.
“If we end up higher for longer, the banks have a huge problem,” Miller said. “If high rates are transitory, it gets the bank to a normalized rate environment and there’s no problem.”
Officials at the Fed declined comment.
The takeaway may be that banks’ problems are big enough to contain earnings for a few quarters, while not threatening their solvency, Yokum said. At Standard & Poor’s, analysts emphasized that 90% of U.S. banks have stable outlooks, even as it downgraded five banks. “Stability in the U.S. banking sector has improved significantly in recent months,” analysts led by Brendan Browne wrote.
“I do expect net interest margins to fall in the third quarter, and for credit quality to get worse, but I expect them both to be manageable,” Yokum said. “And both are well built into the stock prices.”
An aerial view shows the Central Bank of India building, in Mumbai, India, 28 September, 2022. (Photo by Niharika Kulkarni/NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
The global economy is set to slow down as inflation remains stickier than expected — but there may be some “pockets of resilience,” according to Moody’s Investors Service.
“We’re expecting globally a slowdown in growth, and that will have an impact on [emerging markets] Asia through trade conditions as well as access to financing in the region,” Marie Diron, managing director for global sovereign and sub-sovereign risk at Moody’s Investors Service, told CNBC Thursday.
Diron said the slowdown can be attributed to three factors: higher interest rates that persist, China’s slowing growth, as well as financial system stresses.
While central banks have managed to steer the global economy and “create a disinflationary trend” by raising interest rates, inflation risks are still a sticking point, she said.
“There are still risks out there that inflation could prove stickier … than currently expected, and that would lead to higher risks for longer and slower growth,” explained the managing director.
In the last year and a half, the U.S. central bank has raised the benchmark fed funds rate to between 5.25% to 5.5%. Fed Chair Jerome Powell last Friday warned that additional interest rate increases could be on the table.
A second risk is financial system stress, Diron said.
“We’ve seen banks absorbing that period of higher rates, which has had some positive impacts on margins for some, but also needed an adjustment in businesses, an adjustment to continue to attract deposits,” she explained.
“It could be that there are pockets of stress that currently have not quite emerged that materialize maybe later this year on to next year.”
Finally, China is a third source of vulnerability.
Moody’s is not expecting a quick turnaround in the world’s second largest economy and sees “relatively slow growth in China with implications across the region,” Diron said.
“It is an outlook really clouded by downside risks. And that may have an implication for default rates.”
While Moody’s expects a coming slowdown, there may be some “pockets of resilience,” Diron said.
She acknowledged that “we do see a slowdown from this year onto next year,” but added: “We see relatively robust growth and favorable conditions in markets like India and Indonesia.”
Indonesia in particular has the potential to materialize the country’s “vast natural resources” and develop the downstream sectors, through processing of minerals through the value chain, Diron noted.
The Southeast Asian nation carries large natural deposits including tin, nickel, cobalt and bauxite — some of which are important raw materials for electric vehicle production.
A PNC Bank branch in New York, on Wednesday, Jan. 18, 2023.
Bing Guan | Bloomberg | Getty Images
Investors dumped shares of regional bank stocks on Tuesday after Moody’s made changes to the credit outlook for more than two dozen banks across the group, putting the sector on track for its worst day since May.
Moody’s downgraded the credit of 10 small regional banks by one notch apiece, while 17 other banks were either given negative outlook or had their rating put under review.
In a note, Moody’s cited many of the concerns around interest rate risk that led to the collapse of several regional banks earlier this year.
“US banks continue to contend with interest rate and asset-liability management (ALM) risks with implications for liquidity and capital, as the wind-down of unconventional monetary policy drains systemwide deposits and higher interest rates depress the value of fixed-rate assets. Meanwhile, many banks’ Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital,” the Moody’s note said.
The declines dragged down the SPDR S&P Regional Banking ETF (KRE) by about 3.5%. That puts the fund on track for its worst day since May 4, when the fund fell nearly 5.5%.
The KRE ETF was suffering one of its worst days in months on Tuesday.
Hundreds of anti-Netanyahu protesters gathered on Wednesday outside a hair salon after the prime minister’s wife, Sara, was spotted at a hair salon nearby.
New concerns about Israel’s economy are leading global investors to question the money they have in the country.
Massive protests have intensified in recent weeks as Israel’s parliament, the Knesset, moves closer to creating a law that would profoundly change the way the country’s judicial system operates. Critics — who polls indicate represent a majority of Israel’s population — say the changes will endanger the country’s democracy.
In a sign of the seriousness of opposition to the proposed law, graduates of elite military programs and reservists in crucial parts of the Israeli army have threatened not to show up for duty and have begun petitions in protest of the changes.
In a recent report, the Finance Ministry’s chief economist Shira Greenberg wrote that “credit rating agencies are likely to react to these developments.”
So far all three ratings agencies — S&P Global, Moody’s and Fitch — have held steady, keeping Israel in a high credit tier, giving global investors a certain amount of reassurance.
You can’t separate Israel’s unicorns and startups and scale-ups from the equity market. As funding slows, we’ll see the impact on the stock market, and that’s happening now.
Steven Schoenfeld
CEO, MarketVector
Fitch reaffirmed its rating on Wednesday, but it published a special section on the economic risks of judicial reform in its note. The firm warned proposed judicial reform “could have a negative impact on Israel’s credit profile by weakening governance indicators or if the weakening of institutional checks leads to worse policy outcomes or sustained negative investor sentiment.”
Fitch pointed to the passing of similar rules in other countries, which it said had led to “significant weakening of World Bank governance indicators” in those places. Those indicators play an important role in shaping the ratings assigned to countries.
Fitch pointed out that the judicial proposal in Israel has been met with “strong civil society and political opposition,” in turn splitting Israeli society. Israel is the second biggest economy by GDP in the Middle East after Saudi Arabia.
In an earlier report, Moody’s ratings service raised similar concerns regarding the legal system, writing that “implementation of such changes would clearly be negative for our assessment of the strength of institutions and governance, which we have so far considered to be a positive feature of Israel’s sovereign credit profile.”
A drop in Israel’s credit rating would increase the cost of borrowing and hurt fundraising. Both are crucial due to Israel’s need for outside investment from institutions based in the United States, Europe and elsewhere.
A major part of the Israeli economy is tied to the value of the Israel shekel against the U.S. dollar. In February the shekel plunged, ending the month down almost 10% from its level of Feb. 3. That in turn hurt critical parts of Israel’s economy including real estate, as companies and individual citizens moved their money into U.S. dollars or other currencies.
The shekel’s fall also led to a drop in investor confidence. The Tel Aviv Stock Exchange tumbled about 8% in February.
Steven Schoenfeld, the CEO of MarketVector, said he believes investors are right to worry about the situation in Israel. MarketVector maintains stock indexes, including the Blue Star Fund, which Schoenfeld created to track Israeli stocks.
“Most of the concern is in Israel’s crucial venture capital and private equity areas,” Schoenfeld said.
“You can’t separate Israel’s unicorns and startups and scale-ups from the equity market,” he added. “As funding slows, we’ll see the impact on the stock market, and that’s happening now.”
Bank of Israel Governor Amir Yaron has tried to calm markets and business leaders.
A source with direct knowledge of the matter told CNBC that Yaron warned at a meeting hosted by Prime Minister Benjamin Netanyahu last week that the political crisis could become an economic one, and that “the issue must be dealt with.”
Members of Netanyahu’s cabinet maintain that a compromise is still possible — though critics dispute that claim. Insiders told CNBC that representatives of the government are in contact with important Israeli business executives in an effort to ease the impact on the economy.
Through the the central bank, Yaron declined to be interviewed for this report. However, he said in a statement last week that “the shekel has depreciated,” which would force the government to act with “tremendous responsibility” in terms of the budget.
The budget is another consideration that ratings agencies have cited as being potentially problematic for Israel’s economy.
The government may come under pressure to make expenditures designed to benefit select pockets of the population that are parts of the current coalition’s base.
Otherwise, Israel may face a sixth election in less than four years.
A man pushes a tricycle loaded with LPG cylinders on the road below the Adani signage in Mumbai. US based Hindenburg Research firm’s allegation on fraud by Adani Enterprise has sparked political debate in India by the opposition parties.
Sopa Images | Lightrocket | Getty Images
Moody’s lowered its outlook for four Adani Group companies on Friday, citing a “significant and rapid decline” in the market values of the entities, the ratings agency said in a notice.
It cut the outlook for Adani Green Energy from stable to negative, alongside Adani Transmission Step-One, Adani Electricity Mumbai and Adani Green Energy Restricted Group – an entity that includes Adani Green Energy, Parampujya Solar Energy, and Prayatna Developers.
“These rating actions follow the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a report from a short-seller,” Moody’s said.
Without naming Hindenburg Research, the ratings agency highlighted “the recent release of a report from a short-seller highlighting governance concerns in the Group.”
The U.S. short-seller in a Jan. 24 report accused the Indian conglomerate of stock manipulation and accounting fraud, and Adani has denied those allegations.
Adani group companies have lost more than $100 billion in market capitalization as shares plunged since the Hindenburg report.
For Adani Green Energy, Moody’s said the downgrade to negative takes into consideration the company’s large capital spending program and dependence on support from its sponsors.
Moody’s described Adani Green Energy’s support will potentially come in the form of subordinated debt or shareholder loans, adding that it will “likely be less certain in the current environment.”
Stock picks and investing trends from CNBC Pro:
“The negative outlook also factors in the company’s significant refinancing needs of around $2.7 billion in fiscal year ending March 2025 and limited headroom in its credit metrics to manage any material increase in funding costs,” it said.
Meanwhile, Moody’s maintained its stable outlook for four other Adani group companies, including Adani Ports and Special Economic Zone and Adani International Container Terminal. Adani Green Energy Restricted Group and Adani Transmission Restricted Group were also on the list.
The latest revision from Moody’s comes after global index provider MSCI announced last week it will be cutting the weightings of Adani Enterprises, the conglomerate’s flagship company, and three other Adani group companies.
MSCI’s latest quarterly review, however, showed no Adani stocks have been removed from its global index.
Adani Enterprises is scheduled to report its third-quarter earnings on Tuesday.
