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  • Indian PM Modi wraps up Washington trip with appeal to tech CEOs

    Indian PM Modi wraps up Washington trip with appeal to tech CEOs

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    WASHINGTON, June 23 (Reuters) – Indian Prime Minister Narendra Modi met with U.S. and Indian technology executives in Washington on Friday, the final day of a state visit where he agreed new defense and technology cooperation and addressed challenges posed by China.

    U.S. President Joe Biden rolled out the red carpet for Modi on Thursday, declaring after about 2-1/2 hours of talks that their countries’ economic relationship was “booming.” Trade has more than doubled over the past decade.

    Biden and Modi gathered with CEOs including Apple’s (AAPL.O) Tim Cook, Google’s (GOOGL.O) Sundar Pichai and Microsoft’s (MSFT.O) Satya Nadella.

    Also present were Sam Altman of OpenAI, NASA astronaut Sunita Williams, and Indian tech leaders including Anand Mahindra, chairman of Mahindra Group, and Mukesh Ambani, chairman of Reliance Industries, the White House said.

    “Our partnership between India and the United States will go a long way, in my view, to define what the 21st century looks like,” Biden told the group, adding that technological cooperation would be a big part of that partnership.

    Observing that there were a variety of tech companies represented at the meeting from startups to well established firms, Modi said: “Both of them are working together to create a new world.”

    Modi, who has appealed to global companies to “Make in India,” will also address business leaders at the Kennedy Center for Performing Arts.

    The CEOs of top American companies, including FedEx (FDX.N), MasterCard (MA.N) and Adobe (ADBE.O), are expected to be among the 1,200 participants.

    NOT ‘ABOUT CHINA’

    The backdrop to Modi’s visit is the Biden administration’s attempts to draw India, the world’s most populous country at 1.4 billion and its fifth-largest economy, closer amid its growing geopolitical rivalry with Beijing.

    Modi did not address China directly during the visit, and Biden only mentioned China in response to a reporter’s question, but a joint statement included a pointed reference to the East and South China Seas, where China has territorial disputes with its neighbors.

    Farwa Aamer, director for South Asia at the Asia Society Policy Institute, in an analysis note described that as “a clear signal of unity and determination to preserve stability and peace in the region.”

    Alongside agreements to sell weapons to India and share with it sensitive military technology, announcements this week included several investments from U.S.-firms aimed at spurring semiconductor manufacturing in India and lowering its dependence on China for electronics.

    White House national security spokesperson John Kirby said the challenges presented by China to both Washington and New Delhi were on the agenda, but insisted the visit “wasn’t about China.”

    “This wasn’t about leveraging India to be some sort of counterweight. India is a sovereign, independent state,” Kirby said at a news briefing, adding that Washington welcomes India becoming “an increasing exporter of security” in the Indo-Pacific.

    “There’s a lot we can do in the security front together. And that’s really what we’re focused on,” Kirby said.

    Some political analysts question India’s willingness to stand up to Beijing over Taiwan and other issues, however. Washington has also been frustrated by India’s close ties with Russia while Moscow wages war in Ukraine.

    DIASPORA TIES

    Modi attended a lunch on Friday at the State Department with Vice President Kamala Harris, the first Asian American to hold the No. 2 position in the White House, and Secretary of State Antony Blinken.

    In a toast, Harris spoke of her Indian-born late mother, Shyamala Gopalan, who came to the United States at age 19 and became a leading breast cancer researcher.

    “I think about it in the context of the millions of Indian students who have come to the United States since, to collaborate with American researchers to solve the challenges of our time and to reach new frontiers,” Harris said.

    Modi praised Gopalan for keeping India “close to her heart” despite the distance to her new home, and called Harris “really inspiring.”

    On Friday evening, Modi will address members of the Indian diaspora, many of whom have turned out at events during the visit to enthusiastically fete him, at times chanting “Modi! Modi! Modi!” despite protests from others.

    Activists said Biden had failed to strongly call out what they describe as India’s deteriorating human rights record under Modi, citing allegations of abuse of Indian dissidents and minorities, especially Muslims. Modi leads the Hindu nationalist Bharatiya Janata Party (BJP) and has held power since 2014.

    Biden said he had a “straightforward” discussion with Modi about issues including human rights, but U.S. officials emphasize that it is vital for Washington’s national security and economic prosperity to engage with a rising India.

    Asked on Thursday what he would do to improve the rights of minorities including Muslims, Modi insisted “there is no space for any discrimination” in his government.

    “There is no end to data that shows Modi is lying about minority abuse in India, and much of it can be found in the State Department’s own India country reports, which are scathing on human rights,” said Sunita Viswanath, co-founder Hindus for Human Rights, an advocacy group.

    Reporting by Steve Holland, Simon Lewis and Jeff Mason; additional reporting by Trevor Hunnicutt, Doina Chiacu, David Brunnstrom and Kanishka Singh; Editing by Don Durfee and Grant McCool

    Our Standards: The Thomson Reuters Trust Principles.

    Jeff Mason

    Thomson Reuters

    Jeff Mason is a White House Correspondent for Reuters. He has covered the presidencies of Barack Obama, Donald Trump and Joe Biden and the presidential campaigns of Biden, Trump, Obama, Hillary Clinton and John McCain. He served as president of the White House Correspondents’ Association in 2016-2017, leading the press corps in advocating for press freedom in the early days of the Trump administration. His and the WHCA’s work was recognized with Deutsche Welle’s “Freedom of Speech Award.” Jeff has asked pointed questions of domestic and foreign leaders, including Russian President Vladimir Putin and North Korea’s Kim Jong Un. He is a winner of the WHCA’s “Excellence in Presidential News Coverage Under Deadline Pressure” award and co-winner of the Association for Business Journalists’ “Breaking News” award. Jeff began his career in Frankfurt, Germany as a business reporter before being posted to Brussels, Belgium, where he covered the European Union. Jeff appears regularly on television and radio and teaches political journalism at Georgetown University. He is a graduate of Northwestern University’s Medill School of Journalism and a former Fulbright scholar.

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  • Ukraine’s Zelenskiy aims for Western warplane coalition; Russians pressure Bakhmut

    Ukraine’s Zelenskiy aims for Western warplane coalition; Russians pressure Bakhmut

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    • Poland pledges more MiG jets for Kyiv during Zelenskiy visit
    • Zelenskiy cites difficult situation for Kyiv’s forces in Bakhmut
    • France’s Macron in China to nudge it to help end Russia’s war

    KYIV, April 5 (Reuters) – Ukrainian President Volodymyr Zelenskiy said during a trip to Warsaw on Wednesday that Poland would help form a coalition of Western powers to supply warplanes to Kyiv, adding that Ukrainian troops were still fighting for Bakhmut in the east but could withdraw if they risked being cut off.

    Neighbouring Poland is a close ally of Ukraine and helped galvanise support in the West to supply main battle tanks to Kyiv. During Zelenskiy’s visit, Poland announced it would send 10 more MiG fighter jets on top of four provided earlier.

    “Just as your (Polish) leadership proved itself in the tank coalition, I believe that it will manifest itself in the planes coalition,” Zelenskiy said in a speech on a square in Warsaw.

    Earlier in the day, Zelenskiy said Ukrainian troops faced a really difficult situation in Bakhmut and the military would take “corresponding” decisions to protect them if they risk being encircled by Russian invasion forces.

    Ukrainian forces in Bakhmut sometimes advanced a little only to be knocked back, Zelenskiy said, but remained inside the city.

    “We are in Bakhmut and the enemy does not control it,” Zelenskiy said.

    BOMBARDMENT

    Bakhmut, in Ukraine’s mainly Russian-occupied Donetsk province, has proven one of the bloodiest and longest battles of Russia’s invasion, now in its 14th month. Kyiv’s forces have held out against a Russian onslaught with heavy losses on both sides and the city, a mining and transport hub, reduced to ruin after months of street fighting and bombardment.

    “For me, the most important is not to lose our soldiers and of course if there is a moment of even hotter events and the danger we could lose our personnel because of encirclement – of course the corresponding correct decisions will be taken by generals there,” Zelenskiy said.

    He appeared to be referring to the idea of withdrawing.

    However, Deputy Defence Minister Hanna Malyar said later in that the situation at the front was “completely under control” despite repeated Russian attempts to take Bakhmut and other cities in the east.

    Reuters could not verify the battlefield reports.

    Ukrainian military commanders have stressed the importance of holding Bakhmut and other cities and inflicting losses on Russian troops before an anticipated counter-offensive against them in the coming weeks or months.

    Mercenaries from the Wagner group – who have spearheaded the assault on Bakhmut – said at the weekend they had captured the city centre, a claim dismissed by Kyiv.

    The U.S.-based Institute for the Study of War said the Wagner fighters had made advances in Bakhmut and were likely to continue trying to consolidate control of the city centre and push westward through dense urban neighbourhoods.

    PLAYING THE CHINA CARD

    French President Emmanuel Macron, meanwhile, was visiting China after he and U.S. President Joe Biden agreed they would try to engage Beijing to hasten the end of the Russian assault on Ukraine.

    China has called for a comprehensive ceasefire and described its position on the conflict as “impartial”, even though the Chinese and Russian presidents announced a “no limits” partnership shortly before the invasion.

    Both Macron and European Commission President Ursula von der Leyen, due in Beijing shortly after him, have said they want to persuade China to use its influence over Russia to bring peace in Ukraine, or to at least deter Beijing from directly supporting Moscow in the conflict.

    The U.S. and NATO have said China was considering sending arms to Russia, which Beijing has denied.

    ‘SHOULDER TO SHOULDER’

    Poland has played a big role in persuading Western allies to supply battle tanks and other heavy weapons to Ukraine, which helped Kyiv stem and sometimes reverse Russian advances so far.

    “You have stood shoulder to shoulder with us, and we are grateful for it,” Zelenskiy said after Polish President Andrzej Duda presented him with Poland’s highest award, the Order of the White Eagle.

    Duda said Warsaw was also working to secure additional security guarantees for Ukraine at a NATO summit to be held in the Lithuania in July.

    Russian Foreign Minister Sergei Lavrov told state TV that Moscow needed to maintain relations with Washington even though American supplies of weapons to Ukraine meant “we are really in a hot phase of the war”.

    In addition to MiG-29s, Kyiv has also pressed NATO for F-16 jet fighters but Duda’s foreign policy adviser, Marcin Przydacz, said Poland would not decide soon on whether to send any.

    Reporting by Pavel Polityuk with additional reporting by Ron Popeski, Mike Stone, Alan Charlish, Pawel Florkiewicz and Tom Balmforth; writing by Angus MacSwan, Mark Heinrich and Idrees Ali; editing by Philippa Fletcher, Nick Macfie and Grant McCool

    Our Standards: The Thomson Reuters Trust Principles.

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  • Adani’s market losses top $100 bln as crisis shockwaves spread

    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.

    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

    Our Standards: The Thomson Reuters Trust Principles.

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  • Adani crisis ignites Indian contagion fears, credit warnings

    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

    Our Standards: The Thomson Reuters Trust Principles.

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  • Ukraine says Russia strike kills at least 10; Moscow blames pro-Kyiv forces

    Ukraine says Russia strike kills at least 10; Moscow blames pro-Kyiv forces

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    KYIV, Dec 24 (Reuters) – A Russian strike on Ukraine’s recently recaptured city of Kherson killed at least 10 people, wounded 58 and left bloodied corpses on the road, authorities said, in what Kyiv condemned as wanton killing for pleasure.

    A pro-Moscow official responded by saying Ukrainian forces had launched the attack in a bid to blame the Russian military.

    Fresh from a trip to the United States seeking weapons to resist the 10-month-old Russian invasion, President Volodymyr Zelenskiy published photos showing streets strewn with burning cars, smashed windows and bodies.

    “Social networks will most likely mark these photos as ‘sensitive content’. But this is not sensitive content – it is the real life of Ukraine and Ukrainians,” he wrote.

    “These are not military facilities. … It is terror, it is killing for the sake of intimidation and pleasure.”

    Russia controls most but not all of Kherson region. Local Governor Yaroslav Yanushevych, appointed by Kyiv, told national television the death toll had risen to 10, Interfax Ukraine news agency said.

    Vladimir Saldo, the region’s Russian-installed governor, said Kyiv had ordered troops to shell the city.

    “This is a disgusting provocation with the obvious aim of blaming the Russian armed forces,” he wrote on Telegram.

    Yuriy Sobolevskyi, deputy chair of the regional council, said a missile landed next to a supermarket by the city’s Freedom Square.

    Cars burn on a street after a Russian military strike, amid Russia’s attack of Ukraine, in Kherson, Ukraine December 24, 2022. Ukrainian Presidential Press Service/Handout via REUTERS

    “There were civilians there, each of whom lived their own life, went about their own business,” he said, noting a girl selling phone Sim cards, others unloading items from a truck, and passersby.

    Reuters was unable to independently verify the reports from Kherson.

    Ukraine retook the city, the only regional capital Russia had since its Feb. 24 invasion, in November. Since then, Kyiv says Russian forces have heavily shelled the city from across the vast Dnipro river.

    ‘KILL WITH IMPUNITY’

    Ukrainian presidential aide Kyrylo Tymoshenko said the attack came from a Grad multiple rocket launcher.

    Another aide, Mykhailo Podolyak, criticized those calling for Kyiv to seek peace talks with Russia, referencing Moscow’s relentless pounding of Ukraine’s power grid since October that has left millions without heat or water.

    “I’ll remind those who propose to take into account (Russian) ‘peace’ initiatives: Right now Russia is ‘negotiating,’ killing Kherson residents, wiping out Bakhmut, destroying Kyiv/Odesa grids, torturing civilians in Melitopol,” Podolyak wrote.

    “Russia wants to kill with impunity. Shall we allow it?”

    Yanushevych had earlier shared a message from the city’s blood bank calling for urgent donations.

    Kyiv was still recovering from Monday’s wave of missile strikes, which knocked out half the city’s power supply into the next day, according to Ukraine’s prime minister.

    Reporting by Max Hunder;
    Editing by Andrew Cawthorne, David Ljunggren, Josie Kao and Leslie Adler

    Our Standards: The Thomson Reuters Trust Principles.

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