Weekly Market Update - 30 January 2023

Adani Investment

Abu Dhabi’s International Holding Co. will invest about $400 million in Adani Enterprises follow-on share sale, voicing confidence in Indian billionaire Gautam Adani’s business empire. The funding from IHC, which is controlled by a key member of the emirate’s royal family, will represent about 16% of the offering. The investment comes following allegations from Hindenburg Research that the Indian conglomerate used a web of companies in tax havens to inflate revenue and stock prices. Adani’s 413-page attempt to restore confidence in his business empire fell flat with investors.

Source: Bloomberg

Cutting Ties

The Biden administration is considering cutting off Huawei from all of its American suppliers, including Intel and Qualcomm, as the US government intensifies a crackdown on the Chinese tech sector. Sales from US firms to Huawei currently require government approval, with the telecoms giant suspected of having ties to China’s military. Now, some officials in the Biden administration are advocating banning all sales to Huawei. Last week, the US persuaded Japan and the Netherlands to join it in restricting exports of advanced semiconductor manufacturing machinery to China.

Source: Bloomberg

1MDB Scandal

Malaysian Prime Minister Anwar Ibrahim urged Goldman Sachs honor its settlement with the government for its role in the 1MDB scandal, saying the Wall Street firm shouldn’t use its financial strength to dictate terms. State development fund 1MDB became the center of a multi-billion dollar scandal that spawned probes in Asia, the US and Europe, with Goldman in 2020 admitting its role in the biggest foreign bribery case in U.S. enforcement history. Malaysia says the bank hasn’t stuck to settlement terms announced in 2020.

Source: Bloomberg