Tag Archives: WEU

Putin evokes Stalingrad to predict victory over ‘new Nazism’ in Ukraine

  • Russian president speaks in Volgograd
  • 80 years have passed since Soviet victory in Stalingrad
  • Putin draws parallels with Russia’s campaign in Ukraine
  • This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine.

VOLGOGRAD, Russia, Feb 2 (Reuters) – President Vladimir Putin evoked the spirit of the Soviet army that defeated Nazi German forces at Stalingrad 80 years ago to declare on Thursday that Russia would defeat a Ukraine supposedly in the grip of a new incarnation of Nazism.

In a fiery speech in Volgograd, known as Stalingrad until 1961, Putin lambasted Germany for helping to arm Ukraine and said, not for the first time, that he was ready to draw on Russia’s entire arsenal, which includes nuclear weapons.

“Unfortunately we see that the ideology of Nazism in its modern form and manifestation again directly threatens the security of our country,” Putin told an audience of army officers and members of local patriotic and youth groups.

“Again and again we have to repel the aggression of the collective West. It’s incredible but it’s a fact: we are again being threatened with German Leopard tanks with crosses on them.”

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Russian officials have been drawing parallels with the struggle against the Nazis ever since Russian forces entered Ukraine almost a year ago.

Ukraine – which was part of the Soviet Union and itself suffered devastation at the hands of Hitler’s forces – rejects those parallels as spurious pretexts for a war of imperial conquest.

Stalingrad was the bloodiest battle of World War Two, when the Soviet Red Army, at a cost of over 1 million casualties, broke the back of German invasion forces in 1942-3.

Putin evoked what he said was the spirit of the defenders of Stalingrad to explain why he thought Russia would prevail in Ukraine, saying the World War Two battle had become a symbol of “the indestructible nature of our people”.

“Those who draw European countries, including Germany, into a new war with Russia, and … expect to win a victory over Russia on the battlefield, apparently don’t understand that a modern war with Russia will be quite different for them,” he added.

“We don’t send our tanks to their borders but we have the means to respond, and it won’t end with the use of armoured vehicles, everyone must understand that.”

VICTORY PARADE

As Putin finished speaking, the audience gave him a standing ovation.

Putin had earlier laid flowers at the grave of the Soviet marshal who oversaw the defence of Stalingrad and visited the city’s main memorial complex, where he held a minute’s silence in honour of those who died during the battle.

Thousands of people lined Volgograd’s streets to watch a victory parade as planes flew overhead and modern and World War Two-era tanks and armoured vehicles rolled past.

Some of the modern vehicles had the letter ‘V’ painted on them, a symbol used by Russia’s forces in Ukraine.

Irina Zolotoreva, a 61-year-old who said her relatives had fought at Stalingrad, saw a parallel with Ukraine.

“Our country is fighting for justice, for freedom. We got victory in 1942 and that’s an example for today’s generation. I think we’ll win again now whatever happens.”

The focal point for the commemorations was the Mamayev Kurgan memorial complex, on a hill overlooking the River Volga dominated by a hulking statue called The Motherland Calls – of a woman brandishing a giant sword.

The five-month-long battle reduced the city that bore Soviet leader Josef Stalin’s name to rubble, while claiming an estimated 2 million dead and wounded on both sides.

A new bust of Stalin was erected in Volgograd on Wednesday along with two others, of Soviet marshals Georgy Zhukov and Alexander Vasilyevsky.

Despite Stalin’s record of presiding over a famine that killed millions and political repression that killed hundreds of thousands, Russian politicians and school textbooks have in recent years stressed his role as a successful wartime leader who turned the Soviet Union into a superpower.

Reporting by Tatiana Gomozova
Writing by Andrew Osborn
Editing by Mark Trevelyan and Kevin Liffey

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Adani’s market losses top $100 billion as shelved share sale spooks investors

NEW DELHI/MUMBAI, Feb 2 (Reuters) – India’s Adani group shares sank on Thursday after it abandoned its flagship company’s $2.5 billion stock offering, swelling the conglomerate’s market losses to more than $100 billion and sparking worries about the potential systemic impact.

The withdrawal of Adani Enterprises’ (ADEL.NS) share sale caps a dramatic setback for Gautam Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years but dwindled over the past one week after a U.S.-based short-seller published a critical research report.

The events are an embarrassing turn for Adani who has forged partnerships with foreign giants such as France’s TotalEnergies (TTEF.PA) and investors such as Abu Dhabi’s International Holding Company as he pursues a global expansion of businesses that stretch from ports and mining to cement and power.

Adani late on Wednesday called off the share sale as a stocks rout sparked by short-seller Hindenburg’s criticisms intensified, despite the offer being fully subscribed on Tuesday.

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Adani Enterprises plunged nearly 20% on Thursday, trading at its lowest since March 2022. Other group companies were also under pressure – Adani Ports and Special Economic Zone (APSE.NS) was down 5%, while Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Transmission (ADAI.NS) lost 10% each.

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

Adani, 60, is also no longer Asia’s richest person, having slid in the rankings of the world’s wealthiest to 16th, as per Forbes’ list, from third last week.

Reuters Graphics

“Unless Adani is able to regain the confidence of institutional investors, stocks will be in freefall,” said Avinash Gorakshakar, head of research at Mumbai-based Profitmart Securities.

Adani’s plummeting stocks 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 of companies, government and banking sources told Reuters on Thursday. CLSA estimates that Indian banks were exposed to about 40% of the 2 trillion rupees ($24.53 billion) of Adani group’s debt in the fiscal year to March 2022. read more

Citigroup’s (C.N) wealth unit has stopped extending margin loans to its clients against securities of Adani group and decided to cut the loan-to-value ratio for credit against Adani securities to zero on Thursday, said a source.

“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,” Monica Hsiao, Chief Investment Officer of Hong Kong-based credit fund Triada Capital, said.

In New Delhi, opposition lawmakers submitted notices in the Indian parliament, demanding discussion on the U.S. short-seller’s report. The Congress party demanded setting up a Joint Parliamentary Committee or a Supreme Court monitored investigation into the matter.

ADANI VS HINDENBURG

Hindenburg’s report last week 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 short-seller’s allegation of stock manipulation has “no basis” and stems from an ignorance of Indian law. The group has always made the necessary regulatory disclosures, it added.

Earlier this week, the Adani group said it had the complete support of investors, but investor confidence has tapered in recent days.

As shares plunged after the Hindenburg report publication, Adani managed to secure the share sale subscriptions on Tuesday even though the stock’s market price was below the issue’s offer price. But on Wednesday, stocks plunged again.

Maybank Securities and Abu Dhabi Investment Authority, as well as India’s Life Insurance Corporation (LIFI.NS), had bid for the anchor portion of the issue. Those investments will now be returned by Adani.

In a late night announcement on Wednesday, the billionaire said he was withdrawing the share sale as the company’s “stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the company’s board felt that going ahead with the issue will not be morally correct.”

Early on Thursday, Adani said in a video address the “interest of my investors is paramount and everything is secondary. Hence, to insulate the investors from potential losses we have withdrawn” the share sale.

Reporting by Chris Thomas, Nallur Sethuraman, Tanvi Madan, Ira Dugal, Aftab Ahmed, Sumeet Chatterjee, Anshuman Daga, Summer Zhen; Writing by Aditya Kalra; Editing by Muralikumar Anantharaman

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Russian missile wrecks apartment block, killing 3, as EU leaders visit Kyiv

  • Zelenskiy gives gloomy assessment on Russian offensive in east
  • Russian strike destroys apartment building; 4 dead – officials
  • Lavrov says Russia will respond to long-range rocket deliveries
  • European Commission chief in Kyiv to discuss Ukraine’s EU bid
  • Zelenskiy vows more anti-corruption measures

KYIV, Feb 2 (Reuters) – A Russian missile destroyed an apartment building in the eastern Ukrainian city of Kramatorsk, killing at least three people, police said, as top European Union officials arrived in Kyiv for talks seen as key to Ukraine’s pivot towards the West.

Ukraine’s President Volodymyr Zelenskiy vowed more anti-corruption measures as authorities continued raids ahead of Friday’s EU meeting, reflecting his determination to show that Kyiv can be a reliable steward of billions of dollars in aid.

“We are here together to show that the EU stands by Ukraine as firmly as ever. And to deepen further our support and cooperation,” the head of the European Commission, Ursula von der Leyen, tweeted as she arrived in Kyiv by train on Thursday.

Ukraine sees the meeting as important to its hopes of joining the bloc, a process likely to take years.

In his evening video address, Zelenskiy also gave another bleak assessment of the battlefield situation as Russian forces continued to make incremental gains in the east of the country as the first anniversary of Moscow’s invasion looms on Feb. 24.

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In Kramatorsk, a Russian Iskander-K tactical missile struck at 9:45 p.m. (1945 GMT) on Wednesday, killing at least three people and injuring 20 others, police said.

“At least eight apartment buildings were damaged. One of them was completely destroyed,” police said in a Facebook post.

“People may remain under the rubble.”

Kramatorsk is about 55 km (34 miles) northwest of Bakhmut, currently the main focus of fighting in eastern Ukraine.

‘TOUGHER’ ON EASTERN FRONT

Russia, determined to make progress before Ukraine gets newly promised Western battle tanks and armoured vehicles, has picked up momentum on the battlefield and announced advances north and south of Bakhmut, which has suffered persistent Russian bombardment for months.

“Definite increase has been noted in the offensive operations of the occupiers on the front in the east of our country. The situation has become tougher,” Zelenskiy said in his evening video broadcast.

“The enemy is trying to achieve at least something now to show that Russia has some chances on the anniversary of the invasion,” he added.

Bakhmut and 10 towns and villages around it came under Russian fire, the Ukrainian military said late on Wednesday.

Avdiivka, another major Russian target, the nearby town of Maryinka and some neighbouring settlements were also hit, the military added.

Russian forces are pushing from both the north and south to encircle Bakhmut, using their superior troop numbers to try to cut it off from re-supply and force the Ukrainians out, Ukrainian military analyst Yevhen Dikiy said.

“This for us is the most difficult scenario,” Dikiy told Espreso TV.

“The enemy is able to use its sole resource, which it has in excess, its men,” he said, describing a landscape to the northeast of Bakhmut “literally covered with corpses”.

Ukraine and its Western allies say Moscow has taken huge losses around Bakhmut, sending in waves of poorly equipped troops, including thousands of convicts recruited from prisons as mercenaries.

A former commander of Russia’s Wagner mercenary group who fled to Norway in January told Reuters he wanted to apologise for fighting in Ukraine and was speaking out to bring perpetrators of atrocities to justice.

“First of all, repeatedly, and again, I would like to apologise,” Andrei Medvedev, 26, said.

ROCKETS

Ukraine has secured pledges of weapons from the West offering new capabilities – the latest expected this week to include rockets from the United States that would nearly double the range of Ukrainian forces.

“We’re focused on providing Ukraine the capability that it needs to be effective in its upcoming anticipated counter- offensive in the spring,” U.S. Defense Secretary Lloyd Austin said during a visit to the Philippines on Thursday.

The new weapons would put all of Russia’s supply lines in eastern Ukraine, as well as parts of Crimea, within range of Ukrainian forces.

Moscow says such rockets will escalate the conflict but not change its course.

“The greater the range of the weapons supplied to the Kyiv regime the more we will have to push them back from territories which are part of our country,” Foreign Minister Sergei Lavrov told Russian state TV on Thursday. Moscow claims to have annexed four Ukrainian provinces last year, as well as Crimea which it seized in 2014.

Russian forces are probing areas of weakness in Ukraine’s defences on the western edges of Luhansk region, its governor Serhiy Gaidai told Ukrainian TV on Thursday.

“The amount of shelling has increased, the number of attacks in the direction of Svatove-Kreminna has increased… They are piling up our positions with bodies,” Gaidai said.

Reuters could not confirm the battlefield reports.

President Vladimir Putin sent troops into Ukraine last February in a “special military operation” to “disarm” its neighbour. He now casts the campaign as a fight to defend Russia against an aggressive West. Ukraine and the West call it an illegal war to expand Russian territory.

Reporting by Reuters bureaux
Writing by Himani Sarkar and Gareth Jones
Editing by Robert Birsel and Peter Graff

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Airbus and Qatar Airways settle bitter A350 jet row

PARIS, Feb 1 (Reuters) – Airbus (AIR.PA) and Qatar Airways have settled a dispute over grounded A350 jets, the companies said on Wednesday, averting a potentially damaging UK court trial after a blistering 18-month feud that tore the lid off the global jet market.

The “amicable and mutually agreeable settlement” ends a $2 billion row over surface damage on the long-haul jets. The spat led to the withdrawal of billions of dollars’ worth of jet deals by Airbus and prompted Qatar to increase purchases from Boeing.

The cancelled orders for 23 undelivered A350s and 50 smaller A321neos have been restored under the new deal, which is also expected to see Airbus pay several hundred million dollars to the Gulf carrier, while winning a reprieve from other claims.

Financial details were not publicly disclosed.

The companies said neither admitted liability. Both pledged to drop claims and “move forward and work together as partners”.

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The deal heads off what amounted to an unprecedented public divorce trial between heavyweights in the normally tight-knit and secretive $150 billion jet industry.

The two sides had piled up combined claims and counter-claims worth about $2 billion ahead of the June trial.

French Finance Minister Bruno Le Maire welcomed the deal, which came in the wake of increasing political involvement amid close ties between France, where Airbus is based, and Qatar.

“It is the culmination of significant joint efforts. It is excellent news for the French aerospace industry,” he said.

Airbus shares closed up 1% before the announcement.

Qatar Airways had taken the unusual step of publicly challenging the world’s largest planemaker over safety after paint cracks exposed gaps in a sub-layer of lightning protection on its new-generation A350 carbon-composite jets.

Airbus had acknowledged quality flaws but, backed by European regulators, had insisted that the jets were safe and accused the airline of exaggerating flaws to win compensation.

DAMAGES

Supported by a growing army of lawyers, both sides repeatedly bickered in preliminary hearings over access to documents, to the growing frustration of a judge forced to order co-operation.

Analysts said the deal would allow both sides to feel vindicated, with Qatar Airways winning damages and recognition that the problem lay outside the manual and therefore required a new repair, and Airbus standing its ground on safety and spared the difficult task of finding a home for cancelled A350s.

Qatar will get the in-demand A321neos needed to plan its growth, albeit three years later than expected, in 2026. Airbus’ decision to revoke that order, separate from the disputed A350 contract, had been criticised by global airlines group IATA.

Airbus said it had done its best to avoid pushing Qatar too far back in the queue, though some experts question whether it could have met the earlier schedule because of supply problems.

The settlement is also expected to stop the clock ticking on a claim for grounding compensation that had been growing by $6 million a day, triggered by a clause agreed upon after the repainting of a jet for the World Cup revealed significant surface damage.

Originally valued at $200,000 per day per plane, Airbus’ theoretical liability was ratcheting upwards by a total of $250,000 an hour for 30 jets – or $2 billion a year – by the time the deal was struck, based on court filings. Neither side commented on settlement details.

Airbus said it would now work with the airline and regulators to provide the necessary “repair solution” and return Qatar’s 30 grounded planes to the air.

Confirmation of a settlement came after Reuters reported a deal could arrive as early as Wednesday. In 2021, a Reuters investigation revealed other airlines had been affected by A350 skin degradation, all of whom said it was “cosmetic”.

The dispute has focused attention on the design of modern carbon-fibre jets, which do not interact as smoothly with paint as traditional metal ones, and shed light on industrial methods.

Additional reporting by Leigh Thomas, Michel Rose
Editing by David Goodman, Diane Craft and Gerry Doyle

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Ukraine raids home of billionaire in war-time anti-corruption crackdown

  • Security services make sweeping raids before EU summit
  • Homes of billionaire, former interior minster searched
  • New U.S. weapons would nearly double Ukraine’s range
  • Ukrainian soldier says fighting Russian forces in Bakhmut

KYIV, Feb 1 (Reuters) – Security services searched the home of one of Ukraine’s most prominent billionaires on Wednesday, moving against a figure once seen as President Volodymyr Zelenskiy’s sponsor in what the authorities called a war-time anti-corruption purge.

The action, days before a summit with the European Union, appears to reflect determination by Kyiv to demonstrate that it can be a steward of billions of dollars in Western aid and shed a reputation as one of the world’s most corrupt states.

It came as Kyiv has secured huge pledges of weapons from the West in recent weeks offering new capabilities – the latest expected this week to include rockets from the United States that would nearly double the firing range of Ukrainian forces.

Photographs circulating on social media appeared to show Ihor Kolomoiskiy dressed in a sweatsuit and looking on in the presence of an SBU security service officer at his home.

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The SBU said it had uncovered the embezzlement of more than $1 billion at Ukraine’s biggest oil company, Ukrnafta, and its biggest refiner, Ukrtatnafta. Kolomoiskiy, who has long denied wrongdoing, once held stakes in both firms, which Zelenskiy ordered seized by the state in November under martial law.

Separate raids were carried out at the tax office, and the home of Arsen Avakov, who led Ukraine’s police force as interior minister from 2014-2021. The SBU said it was cracking down on “people whose actions harm the security of the state in various spheres” and promised more details in coming days.

“Every criminal who has the audacity to harm Ukraine, especially in the conditions of war, must clearly understand that we will put handcuffs on his hands,” Ukraine’s security service chief Vasyl Malyuk was quoted as saying on the SBU Telegram channel.

The prosecutor general’s office said the top management of Ukrtatnafta had been notified it was under suspicion, as were a former energy minister, a former deputy defence minister and other officials.

Kolomoiskiy, who faces a fraud case in the United States, has been at the centre of corruption allegations and court disputes for years that Western donors have said must be resolved for Kyiv to win aid.

Zelenskiy, who first came to fame as the star of a sitcom on Kolomoiskiy’s TV station, has long promised to rid Ukraine of so-called oligarchs, but had faced accusations that he was unable to move decisively against his former sponsor.

In an address overnight before the raids, he alluded to new anti-corruption measures in time for Friday’s summit, at which Ukraine is expected to seek firm steps towards joining the EU.

“We are preparing new reforms in Ukraine. Reforms that will change the social, legal and political reality in many ways, making it more human, transparent and effective,” he said, promising to reveal the details soon.

LONGER RANGE MISSILES

Ukrainian forces which recaptured swathes of territory from Russian troops in the second half of 2022 have seen their advance stall since November. Kyiv says the key to regaining the initiative is securing advanced Western weaponry.

Two U.S. officials said a new $2 billion package of military aid to be announced as soon as this week would for the first time include Ground Launched Small Diameter Bombs (GLSDB), a new weapon designed by Boeing. (BA.N)

The cheap gliding missiles can strike targets more than 150 km (90 miles) away, a dramatic increase over the 80 km range of the rockets fired by HIMARS systems which changed the face of the war when Washington sent them last summer.

That would put all of the Russian-occupied territory on Ukraine’s mainland, as well as parts of the Crimea peninsula seized by Moscow in 2014, within range of Kyiv’s forces.

Kremlin spokesman Dmitry Peskov said the arrival of longer range U.S. weapons would escalate the conflict.

Western countries pledged scores of advanced main battle tanks for the first time last week, a breakthrough in support aimed at giving Kyiv the capability to recapture occupied territory this year.

But the arrival of the new weapons is still months away, and in the meantime, Russia has gained momentum on the battlefield, announcing advances north and south of the city of Bakhmut, its main target for months.

Kyiv disputes many of those claims and Reuters could not independently verify the full situation, but the locations of reported fighting clearly indicate incremental Russian advances.

Troops were fighting building to building in Bakhmut for gains of barely 100 metres (yards) a night, and the city was coming under constant Russian shelling, a soldier in a Ukrainian unit of Belarusian volunteers told Reuters from inside the city.

Ukraine’s general staff said late on Tuesday its forces had come under fire in Bakhmut and the villages of Klishchiivka and Kurdyumivka on its southern approaches.

South of Bakhmut, Russia has also launched a major new offensive this week on Vuhledar, a longstanding Ukrainian-held bastion at the junction of the southern and eastern front lines. Kyiv says its forces have so far held there.

PURGE

The infusion of Western military and financial aid creates new pressure on Zelenskiy to demonstrate his government can clean up Ukraine.

Last week, he purged more than a dozen senior officials following a series of scandals and graft allegations in the biggest shakeup of Ukraine’s leadership since the invasion.

Following Wednesday’s raids, the parliamentary leader of Zelenskiy’s Servant of the People party, David Arakhamia, wrote on Telegram: “The country will change during the war. If someone is not ready for change, then the state itself will come and help them change.”

Reporting by Reuters bureaux
Writing by Peter Graff
Editing by Philippa Fletcher

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Adani loses Asia’s richest crown as stock rout deepens to $84 billion

BENGALURU, Feb 1 (Reuters) – Shares in Indian tycoon Gautam Adani’s conglomerate plunged again on Wednesday as a rout in his companies deepened to $84 billion in the wake of a U.S. short-seller report, with the billionaire also losing his title as Asia’s richest person.

Wednesday’s stock losses saw Adani slip to 15th on Forbes rich list with an estimated net worth of $76.8 billion, below rival Mukesh Ambani, the chairman of Reliance Industries Ltd (RELI.NS) who ranks ninth with a net worth of $83.6 billion.

Before the critical report by U.S. short-seller Hindenburg, Adani had ranked third.

The losses mark a dramatic setback for Adani, the school-dropout-turned-billionaire whose business interests stretch from ports and airports to mining and cement. Now, the tycoon is fighting to stabilise his businesses and defend his reputation.

It comes just a day after the group managed to muster support from investors for a $2.5 billion share sale for flagship firm Adani Enterprises on Tuesday, in what some saw as a stamp of investor confidence.

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

The group has denied the allegations, saying the short-seller’s narrative of stock manipulation has “no basis” and stems from an ignorance of Indian law. It has always made the necessary regulatory disclosures, it added.

Shares in Adani Enterprises (ADEL.NS), often described as the incubator of Adani businesses, plunged 30% on Wednesday. Adani Power (ADAN.NS) fell 5%, while Adani Total Gas (ADAG.NS) slumped 10%, down by its daily price limit.

Adani Transmission (ADAI.NS) was down 6% and Adani Ports and Special Economic Zone (APSE.NS) dropped 20%.

Adani Total Gas, a joint venture with France’s Total (TTEF.PA), has been the biggest casualty of the short seller report, losing about $27 billion.

“There was a slight bounce yesterday after the share sale went through, after seeming improbable at a point, but now the weak market sentiment has become visible again after the bombshell Hindenburg report,” said Ambareesh Baliga, a Mumbai-based independent market analyst.

“With the stocks down despite Adani’s rebuttal, it clearly shows some damage on investor sentiment. It will take a while to stabilise,” Baliga added.

Reuters Graphics

SCRUTINY

Underscoring the nervousness in some quarters, Bloomberg reported on Wednesday that Credit Suisse (CSGN.S) had stopped accepting bonds of Adani group companies as collateral for margin loans to its private banking clients.

Deven Choksey, managing director of KRChoksey Shares and Securities, said this was a big factor in Wednesday’s share slides.

Credit Suisse had no immediate comment.

Scrutiny of the conglomerate is stepping up, with an Australian regulator saying on Wednesday it would review Hindenburg’s allegations to see if further enquiries were warranted.

Data also showed that foreign investors sold a net $1.5 billion worth of Indian equities after the Hindenburg report – the biggest outflow over four consecutive days since Sept. 30.

Headaches for the Adani Group are expected to continue for some time.

India’s markets regulator, which has been looking into deals by the conglomerate, has said it will add Hindenburg’s report to its own preliminary investigation.

State-run Life Insurance Corporation (LIC) (LIFI.NS)said on Monday it would seek clarifications from Adani’s management on the short seller report. The insurance giant was, however, a key investor in the Adani Enterprises share sale.

Hindenburg said in its report it had shorted U.S.-bonds and non-India traded derivatives of the Adani Group.

Reporting by Chris Thomas in Bengaluru and Aditi Shah in New Delhi; Additional reporting by Bharath Rajeshwaran and Aditya Kalra; Editing by Edwina Gibbs and Mark Potter

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‘Hands off Africa,’ Pope Francis tells rich world

  • Pope begins trip to DR Congo and South Sudan
  • Francis to meet victims of war in Congo
  • Trip postponed from July due to pope’s knee ailment

KINSHASA, Jan 31 (Reuters) – Pope Francis denounced the “poison of greed” driving conflicts in Africa as he began a visit to Democratic Republic of Congo on Tuesday, saying the rich world had to realise that people were more precious than the minerals in the earth beneath them.

Many tens of thousands of people cheered as he travelled from the airport into the capital Kinshasa in his popemobile, with some breaking away to chase it while others chanted and waved flags.

But the joyous mood, one of the most vibrant welcomes of his foreign trips, turned sombre when the 86-year-old pope spoke to dignitaries at the presidential palace. He condemned “terrible forms of exploitation, unworthy of humanity” in Congo, where vast mineral wealth has fuelled war, displacement and hunger.

“Hands off the Democratic Republic of the Congo. Hands off Africa. Stop choking Africa: it is not a mine to be stripped or a terrain to be plundered,” Francis said.

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Congo has some of the world’s richest deposits of diamonds, gold, copper, cobalt, tin, tantalum and lithium, but those have stoked conflict between militias, government troops and foreign invaders. Mining has also been linked to inhumane exploitation of workers, including children, and environmental degradation.

“It is a tragedy that these lands, and more generally the whole African continent, continue to endure various forms of exploitation,” the pope said, reading his speech in Italian while seated. People listening to a French translation applauded repeatedly.

“The poison of greed has smeared its diamonds with blood,” he said, referring to Congo specifically.

Compounding the country’s problems, eastern Congo has been plagued by violence connected to the long and complex fallout from the 1994 genocide in neighbouring Rwanda.

Congo accuses Rwanda of backing the M23 rebel group fighting government troops in the east. Rwanda denies this.

“As well as armed militias, foreign powers hungry for the minerals in our soil commit, with the direct and cowardly support of our neighbour Rwanda, cruel atrocities,” Congolese President Felix Tshisekedi said, speaking just before the pope on the same stage on a hot, muggy afternoon.

The pope did not name Rwanda in his address or take sides in the dispute.

Rwandan government spokesperson Yolande Makolo rebuffed Tshisekedi’s comments. “It’s obvious that this ridiculous obsession with scapegoating Rwanda is President Tshisekedi’s electoral strategy – a distraction from the poor performance of his government, and failure to deliver to their citizens,” she told Reuters.

‘DEVOURED BY VIOLENCE’

An estimated 5.7 million people are internally displaced in Congo and 26 million face severe hunger, largely because of the impact of armed conflict, according to the United Nations.

About half of Congo’s population of 90 million are Roman Catholics and the Church plays a crucial role in running schools and health facilities in the sprawling central African country, as well as promoting democracy.

The pope criticised rich countries for ignoring the tragedies unfolding in Congo and elsewhere in Africa.

“One has the impression that the international community has practically resigned itself to the violence devouring it (Congo). We cannot grow accustomed to the bloodshed that has marked this country for decades, causing millions of deaths,” he said.

Tshisekedi made a similar point: “While the international community has remained passive and silent, more than 10 million people have been horribly killed.”

First scheduled for last July, the pope’s trip was postponed because of a flare-up of a chronic knee ailment. Francis had originally planned to travel to Goma, in eastern Congo, but that stop was scrapped because of a resurgence in fighting between M23 rebels and government troops.

In an apparent reference to the M23 and other militias active in Congo’s eastern regions, the pope said the Congolese people were fighting to preserve their territorial integrity “against deplorable attempts to fragment the country”.

On Wednesday, Francis will celebrate Mass at a Kinshasa airport that is expected to draw more than a million people. He also will meet victims of violence from the east.

Francis will stay in Kinshasa until Friday morning, when he will fly to South Sudan, another African country grappling with conflict and poverty.

In a first, he will be accompanied for that leg of his journey by the Archbishop of Canterbury, leader of the global Anglican Communion, and by the Church of Scotland Moderator. The religious leaders have described their joint visit as a “pilgrimage of peace” to the world’s youngest nation.

South Sudan gained independence in 2011 from predominantly Muslim Sudan after decades of conflict. Two years later inter-ethnic conflict spiralled into a civil war that killed 400,000 people. A 2018 deal stopped the worst of the fighting.

Additional reporting by Justin Makangara, Benoit Nyemba, Sonia Rolley and Stanis Bujakera, and Philbert Girinema in Kigali; Writing by Estelle Shirbon and Philip Pullella; Editing by Alexandra Hudson, Barbara Lewis and Mark Heinrich

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France hit by new wave of strikes against Macron’s pension reform

  • Reform would raise retirement age to 64
  • Schools, transport networks, refinery deliveries hit
  • Macron: Reform vital to ensure viability of pension system

SAINT-NAZAIRE, France, Jan 31 (Reuters) – Striking workers disrupted French refinery deliveries, public transport and schools on Tuesday in a second day of nationwide protests over President Emmanuel Macron’s plan to make people work longer before retirement.

Crowds marched through cities across France to denounce a reform that raises the retirement age by two years to 64 and which is a test of Macron’s ability to push through change now that he has lost his working majority in parliament.

On the rail networks, only one in every three high-speed TGV trains were operating and even fewer local and regional trains. Services on the Paris metro were thrown into disarray.

Buoyed by their success earlier in the month when more than a million people took to the streets, trade unions which have been battling to maintain their power and influence urged the public to turnout en masse.

“We won’t drive until we’re 64!” bus driver Isabelle Texier said at a protest in Saint-Nazaire on the Atlantic coast, adding that many careers involved tough working conditions.

Others felt resigned ahead of likely bargaining between Macron’s ruling alliance and conservative opponents who are more open to pension reform than the left.

“There’s no point in going on strike. This bill will be adopted in any case,” said 34-year-old Matthieu Jacquot, who works in the luxury sector.

Unions said half of primary school teachers had walked off the job. TotalEnergies (TTEF.PA) said 55% of its workers on morning shifts at its refineries had downed tools, a lower number than on Jan. 19. The hard-left CGT union said the figure was inaccurate.

For unions, the challenge will be maintaining a strike movement at a time when high inflation is eroding salaries.

At a local level, some announced “Robin Hood” operations unauthorised by the government. In the southwestern Lot-et-Garonne area, the local CGT trade union branch cut power to several speed cameras and disabled smart power meters.

“When there is such a massive opposition, it would be dangerous for the government not to listen,” said Mylene Jacquot, secretary general of the CFDT union’s civil servants branch.

Opinion polls show a substantial majority of the French oppose the reform, but Macron intends to stand his ground. The reform was “vital” to ensure the viability of the pension system, he said on Monday.

A street march in Paris takes place later in the day.

‘BRUTAL’

The pension system reform would yield an additional 17.7 billion euros ($19.18 billion) in annual pension contributions, according to Labour Ministry estimates.

Unions say there are other ways to raise revenue, such as taxing the super rich or asking employers or well-off pensioners to contribute more.

“This reform is unfair and brutal,” said Luc Farre, the secretary general of the civil servants’ UNSA union. “Moving (the pension age) to 64 is going backwards, socially.”

French power supply was down by 4.5% or 3 gigawatts (GW), as workers at nuclear reactors and thermal plants joined the strike, data from utility group EDF (EDF.PA) showed.

TotalEnergies said deliveries of petroleum products from its French sites had been halted because of the strike, but that customers’ needs were met.

The government made some concessions while drafting the legislation. Macron had originally wanted the retirement age to be set at 65, while the government is also promising a minimum pension of 1,200 euros a month.

Prime Minister Elisabeth Borne has said the 64 threshold is “non-negotiable”, but the government is exploring ways to offset some of the impact, particularly on women.

Hard-left opposition figure Jean-Luc Melenchon, a vocal critic of the reform, said parliament would on Monday debate a motion calling for a referendum on the matter.

“The French are not stupid,” he said at a march in Marseille. “If this reform is vital, it should be possible to convince the people.”

Reporting by Forrest Crellin, Benjamin Mallet, Sudip Kar-Gupta, Leigh Thomas, Blandine Henault, Michel Rose, Dominique Vidalon, Benoit Van Overstraeten; Writing by Ingrid Melander and Richard Lough; Editing by Janet Lawrence

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Western allies differ over jets for Ukraine as Russia claims gains

  • Biden says ‘no’ when asked about F-16s for Ukraine
  • Zelenskiy says Moscow seeks ‘big revenge’
  • Russian administrator claims foothold in Vuhledar
  • Kyiv could recapture ground when Western weapons arrive – group

KYIV, Jan 31 (Reuters) – Ukraine’s defence minister is expected in Paris on Tuesday to meet President Emmanuel Macron amid a debate among Kyiv’s allies over whether to provide fighter jets for its war against Russia, after U.S. President Joe Biden ruled out giving F-16s.

Ukraine planned to push for Western fourth-generation fighters like F-16s after securing supplies of main battle tanks last week, an adviser to Defence Minister Oleksiy Reznikov said on Friday.

Asked at the White House on Monday if the United States would provide F-16s, Biden told reporters: “No.”

But France and Poland appear to be willing to entertain any such request from Ukraine, with Macron telling reporters in The Hague on Monday that “by definition, nothing is excluded” when it comes to military assistance.

In remarks carried on French television before Biden spoke in Washington, Macron stressed any such move would depend on several factors including the need to avoid escalation and assurances that the aircraft would not “touch Russian soil.” He said Reznikov would also meet his French counterpart Sebastien Lecornu in Paris on Tuesday.

In Poland on Monday, Prime Minister Mateusz Morawiecki also did not rule out a possible supply of F-16s to neighbouring Ukraine, in response to a question from a reporter before Biden spoke.

Morawiecki said in remarks posted on his website that any such transfer would take place “in complete coordination” with NATO countries.

Andriy Yermak, head of the Ukraine president’s office, noted “positive signals” from Poland and said France “does not exclude” such a move in separate posts on his Telegram channel.

NATO Secretary-General Jens Stoltenberg was in Japan on Tuesday where he thanked Tokyo for the “planes and the cargo capabilities” it is providing Ukraine. A day earlier in South Korea he urged Seoul to increase its military support to Ukraine.

Biden’s comment came shortly after Ukrainian President Volodymyr Zelenskiy said Russia had begun exacting its revenge for Ukraine’s resistance to its invasion with relentless attacks in the east, where it appeared to be making incremental gains.

Zelenskiy has warned for weeks that Moscow aims to step up its assault after about two months of virtual stalemate along the front line that stretches across the south and east.

Ukraine won a huge boost last week when Germany and the United States announced plans to provide heavy tanks, ending weeks of diplomatic deadlock on the issue.

While there was no sign of a broader new Russian offensive, the administrator of Russian-controlled parts of Ukraine’s eastern Donetsk province, Denis Pushilin, said Russian troops had secured a foothold in Vuhledar, a coal-mining town whose ruins have been a Ukrainian bastion since the outset of the war.

Pushilin said that despite “huge losses” Ukrainian forces were consolidating positions in industrial facilities.

‘BATTLE FOR EVERY METER’

Pushilin said Ukrainian forces were throwing reinforcements at Bakhmut, Maryinka and Vuhledar, towns running from north to south just west of Donetsk city. The Russian state news agency TASS quoted him as saying Russian forces were making advances there, but “not clear-cut, that is, here there is a battle for literally every meter.”

Ukrainian military analyst Oleh Zhdanov said Ukraine still controlled Maryinka and Vuhledar, where Russian attacks were less intense on Monday.

Pushilin’s adviser, Yan Gagin, said fighters from Russian mercenary force Wagner had taken partial control of a supply road leading to Bakhmut, a city that has been Moscow’s focus for months.

A day earlier, the head of Wagner said his fighters had secured Blahodatne, a village just north of Bakhmut, although Kyiv said it had repelled assaults on Blahodatne.

Reuters could not independently verify the battlefield reports. But the locations of the reported fighting indicated clear, though gradual, Russian gains.

In central Zaporizhzhia region and in southern Kherson region, Russian forces shelled more than 40 settlements, Ukraine’s General Staff said. Targets included the city of Kherson, where there were casualties.

The Russians also launched four rocket attacks on Ochakiv in southern Mykolaiv, the army said, on the day Zelenskiy met the Danish prime minister in Mykolaiv city, to the northeast.

WESTERN DELAYS

Zelenskiy is urging the West to hasten delivery of its promised weapons so Ukraine can go on the offensive, but most of the hundreds of tanks pledged by Western countries are months away from delivery.

British Defence Minister Ben Wallace said the 14 Challenger tanks donated by Britain would be on the front line around April or May, without giving an exact timetable.

Kremlin spokesperson Dmitry Peskov said Western countries supplying arms leads “to NATO countries more and more becoming directly involved in the conflict – but it doesn’t have the potential to change the course of events and will not do so.”

The U.S.-based Institute for the Study of War think-tank said “the West’s failure to provide the necessary materiel” last year was the main reason Kyiv’s advances had halted since November.

The researchers said in a report that Ukraine could still recapture territory once the promised weapons arrive.

The Belarusian defence ministry said on Tuesday that Russia and Belarus had started a week-long session of staff training in preparation for joint drills in Russia in September.

The Russian invasion of Ukraine, which Moscow justifies as necessary to protect itself from its neighbour’s ties with the West, has killed tens of thousands of people and driven millions from their homes.

Reporting by Reuters bureaus; Writing by Doina Chiacu and Stephen Coates; Editing by Cynthia Osterman & Simon Cameron-Moore

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U.S. court rejects J&J bankruptcy strategy for thousands of talc lawsuits

Jan 30 (Reuters) – A U.S. appeals court on Monday shot down Johnson & Johnson’s (JNJ.N) attempt to offload tens of thousands of lawsuits over its talc products into bankruptcy court. The ruling marked the first major repudiation of an emerging legal strategy with the potential to upend U.S. corporate liability law.

J&J is among four major companies that have filed so-called Texas two-step bankruptcies to avoid potentially massive lawsuit exposure. The tactic involves creating a subsidiary to absorb the liabilities and to immediately file for Chapter 11.

The court ruled the healthcare conglomerate improperly placed its subsidiary into bankruptcy even though it faced no financial distress. J&J’s two-step sought to halt more than 38,000 lawsuits from plaintiffs alleging the company’s baby powder and other talc products caused cancer. The appeals court ruling revives those lawsuits.

Reuters last year detailed the secret planning of Texas two-steps by Johnson & Johnson and other major firms in a series of reports exploring corporate attempts to evade lawsuits through bankruptcies.

Monday’s decision by the U.S. 3rd Circuit Court of Appeals in Philadelphia dismissed the bankruptcy filed by the J&J subsidiary in 2021. Before the filing, J&J had faced costs of $3.5 billion in verdicts and settlements.

J&J shares closed down 3.7% – the biggest one-day percentage decline in two years. The company said in a statement that it would challenge the ruling and that its talc products are safe.

Plaintiffs attorneys and some legal experts have argued the two-step could set a dangerous precedent, providing a blueprint for any corporation to easily avoid undesirable litigation. The appeals court decision could force companies considering the strategy to more carefully consider its risks, two legal experts said.

“It is a push back on the notion that any company anywhere can use the same tactic to get rid of their mass tort liability,” said Lindsey Simon, a professor at University of Georgia School of Law.

Bankruptcy filings typically suspend litigation in trial courts, forcing plaintiffs into often time-consuming settlement negotiations while leaving them unable to pursue their cases in the courts where they originally sued.

The 3rd Circuit ruling does not directly impact three other Texas two-step bankruptcies, filed by subsidiaries of Koch Industries-owned Georgia Pacific, global construction giant Saint-Gobain(SGOB.PA), and Trane Technologies (2IS.F). Those cases fall under the jurisdiction of the 4th Circuit appeals court. 3M (MMM.N) attempted a similar maneuver, which is currently pending in the 7th Circuit.

Those companies did not comment on the 3rd Circuit ruling or did not immediately respond to inquiries. All have previously defended the bankruptcies as the best way to fairly compensate claimants. Plaintiffs’ attorneys have countered that the Texas two-step is an improper manipulation of the bankruptcy system. The strategy uses a Texas law to split an existing company in two, creating the new subsidiary meant to shoulder the lawsuits.

New Jersey-based Johnson & Johnson, valued at more than $400 billion, said its subsidiary’s bankruptcy was initiated in good faith. J&J initially pledged $2 billion to the subsidiary to resolve talc claims and entered into an agreement to fund an eventual settlement approved by a bankruptcy judge.

“Resolving this matter as quickly and efficiently as possible is in the best interests of claimants and all stakeholders,” J&J said.

A three-judge panel on the appeals court rejected J&J’s argument, finding the company’s subsidiary, LTL Management, was created solely to file for Chapter 11 protection but had no legitimate need for it. Only a debtor in financial distress can seek bankruptcy, the panel ruled. The judges pointed out that J&J assured that it would give LTL plenty of money to pay talc claimants.

“Good intentions – such as to protect the J&J brand or comprehensively resolve litigation – do not suffice alone,” the judges said in a 56-page opinion. “LTL, at the time of its filing, was highly solvent with access to cash to meet comfortably its liabilities.”

‘PROJECT PLATO’

The decision could force J&J to fight talc lawsuits for years in trial courts. The company has a mixed record fighting the suits so far. While the firm was hit with major judgments in some cases before filing bankruptcy, more than 1,500 talc lawsuits have been dismissed and the majority of cases that have gone to trial have resulted in verdicts favoring J&J, judgments for the company on appeal, or mistrials, according to its subsidiary’s court filings.

A December 2018 Reuters investigation revealed that J&J officials knew for decades about tests showing that the company’s talc sometimes contained traces of carcinogenic asbestos but kept that information from regulators and the public. J&J has said its talc does not contain asbestos and does not cause cancer.

Facing unrelenting litigation, J&J enlisted law firm Jones Day, which had helped other companies execute Texas two-step bankruptcies to address asbestos-related lawsuits.

J&J’s effort, as Reuters reported last year, was internally dubbed “Project Plato,” and employees working on it signed confidentiality agreements. A company lawyer warned them to tell no one, including their spouses, about the plan.

Jones Day did not immediately respond to a request for comment.

The Texas two-step has garnered criticism from Democratic lawmakers in Washington, and inspired proposed legislation that would severely restrict the practice.

Senator Sheldon Whitehouse, a Democrat from Rhode Island, cheered Monday’s appeals court decision. Whitehouse chaired the first congressional hearing scrutinizing two-step bankruptcies in February of last year.

“Bankruptcy is meant to give honest debtors in unfortunate circumstances a fresh start,” he said, not to allow “large, highly profitable corporations” to avoid accountability for wrongdoing with a legal “shell game.”

Reporting by Tom Hals in Wilmington, Delaware; Mike Spector in New York; and Dan Levine in San Francisco; additional reporting by Dietrich Knauth and Chuck Mikolajczak in New York; editing by Bill Berkrot and Brian Thevenot

Our Standards: The Thomson Reuters Trust Principles.

Tom Hals

Thomson Reuters

Award-winning reporter with more than two decades of experience in international news, focusing on high-stakes legal battles over everything from government policy to corporate dealmaking.

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