Europe news

Britain is facing its biggest day of coordinated industrial action for decades on Feb. 1 as staff from sectors across the economy walk out in an effort to win pay rises that better reflect double-digit inflation.

Healthcare workers are also taking coordinated action on Feb. 6 for the first time, in what is set to be the biggest day of action in Britain's state-funded National Health Service.

WHO IS STRIKING ON FEB. 1?

TEACHERS

Teachers from the National Education Union in England and Wales will take the first of several days of strike action, impacting 23,400 schools.

The NEU, Britain's largest education union, with around 500,000 members, has said the government offered its members a 5% pay rise which it says equated to a pay cut.

UNIVERSITY STAFF

More than 70,000 staff at 150 universities represented by the University and College Union will strike in a dispute over pay, saying they have had a pay rise worth 3% this year imposed following over a decade of below-inflation pay awards.

TRAIN DRIVERS

Thousands of train drivers from the ASLEF and RMT unions will stage the first of two days of walkouts after rejecting a pay offer, the latest in months of travel disruption caused by the long-running dispute over pay.

GOVERNMENT STAFF

More than 100,000 workers from the PCS union in government departments and public bodies will take part in a one-day strike.

Those walking out include staff at the Department for Transport, the Department for Education, the Department for Work and Pensions, the Department of Health and Social Care and the Home Office.

National Highways, the Maritime and Coastguard Agency, the Office for National Statistics and the Driver & Vehicle Standards Agency are among other impacted bodies. Services such as driving tests could be affected, the government has warned.

WHO IS STRIKING ON FEB. 6?

AMBULANCE WORKERS

Ambulance staff from the Unite and GMB unions are taking a fresh wave of action starting on Feb. 6 in an ongoing dispute over pay.

The GMB said more than 10,000 ambulance workers in England and Wales, including paramedics, emergency care assistants and call handlers, will strike on Feb. 6, Feb. 20, March 6 and March 20.

Unite said ambulance workers in England would walk out on Feb. 6, Feb. 17, Feb. 20, Feb. 22, Mar. 6 and Mar. 20, with members in different regions holding walk-outs on different days.

NURSES

Tens of thousands of nurses in England will launch their third wave of action, walking out for 12 hours each on Feb. 6 and 7, if progress is not made by the end of January in pay negotiations with the government, the Royal College of Nursing union has said.

FTSE 100 is expected to open lower following losses in the US and Asia and as the IMF posted another gloomy assessment of the UK economy.

Spread betting companies are calling the lead index down by around 28 points.

The IMF has downgraded its UK gross domestic product forecast once again, predicting a contraction of 0.6% against the 0.3% growth pencilled in last October as Britain looks set to suffer more than most from soaring inflation and higher interest rates.

In the US markets ended the Monday nursing heavy losses with the Dow down 260 points, 0.8%, at 33,718, the Nasdaq Composite off 228 points, 2%, to 11,394 and the S&P 500 53 points worse off, 1.3%, to end at 4,018.

Asian equities followed New York’s path, despite new figures showing China's factory activity returned to growth.

In Tokyo, the Nikkei 225 index was down 0.4%. In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong was down 1.6%.

In London, trading updates are expected from Pets at Home PLC and half-year numbers from ITM Power PLC.

On the economic front, consumer credit, mortgage approvals numbers and the latest Nationwide house price index are also due.

South Korea's Samsung Electronics (LON:0593xq) Co Ltd on Tuesday indicated it has no plan to cut investment in chips this year, even as a weak global economy condemns the industry to its worst downturn in over a decade.

The guidance bucks a broader industry trend to scale back spending and output, fanning concern that the world's biggest memory chipmaker intends to draw on its deep pockets and superior profit margins to gain market share from smaller peers.

"Samsung might be seeing this time as a good opportunity to increase market share, which should help it in the long term, at the expense of SK Hynix and Micron," said analyst Choi Yoo-june at Shinhan Securities.

Greg Roh, head of research at Hyundai Motor Securities, estimated Samsung Electronics' market share may reach the upper 40% range for DRAM chips and mid-30% range for NAND flash memory chips in the second half of the year, from around 43% and 32%.

Instead of cutting investment in response to slowing demand and falling prices, Samsung signalled it would curb short-term production organically through line maintenance, equipment adjustment and moving to advanced chipmaking processes. It also said it would increase the proportion of capital investment that goes into research and development.

"Samsung, in a roundabout way, is saying production will decrease slightly," said analyst Kim Yang-jae at Daol Investment and Securities. "However, investors were hoping for a stronger production cut, or a comment about faster market rebound - so its shares fell."

The share prices of Samsung and compatriot SK Hynix Inc fell 3% and 2.2% respectively on Tuesday.

Samsung said capital spending in 2023 would be similar to 2022, in contrast to SK Hynix and Micron Technology Inc (NASDAQ:MU) which have said they would slash investment. In contract chipmaking, bigger rival Taiwan Semiconductor Manufacturing Co Ltd has also announced a spending cut.

The global technology industry has been battling a sharp and sudden downturn in demand since late last year, as companies cut spending on tech products and services while consumers spend less on discretionary goods in the face of surging inflation.

CHIP PROFIT TUMBLES

Earlier on Tuesday, Samsung reported its lowest quarterly profit since 2014 and said persistent macroeconomic uncertainty will make for a tough first half of this year, though it expects demand to start recovering in the second half.

Sluggish demand and inventory adjustment will continue to impact the chip business in the first quarter, while smartphone demand is likely to decline year-on-year due to economic slowdown in major regions, Samsung said.

At 4.3 trillion won ($3.49 billion), October-December operating profit was Samsung's lowest quarterly profit in eight years. Revenue fell 8% to 70.5 trillion won.

With memory chip prices falling by double-digit percentages in 2022, Samsung's chip profit tumbled - to about 270 billion won in the fourth quarter from 8.83 trillion won a year earlier, marking the lowest since the first quarter of 2009.

Some analysts expect the chip business to book a loss in the first quarter, pulling overall profit below that of the fourth.

Last week, chipmaker Intel Corp (NASDAQ:INTC) said it expects to lose money in the current quarter as the personal computer industry experiences a chip glut.

In mobile, Samsung said fourth-quarter profit fell to 1.7 trillion won from 2.66 trillion won a year earlier, as a decline in low- and mid-end smartphone sales was greater than expected.

Three years after its departure from the European Union, Britain is yet to benefit from the Brexit dividend that was promised for its economy as it lags its peers on multiple fronts, including trade and investment.

Britain exited the EU on Jan. 31, 2020, though remained in the bloc's single market and customs union for 11 more months.

On that day, then-Prime Minister Boris Johnson said the country could finally fulfil its potential and that he hoped it would grow in confidence with each passing month.

So far, the opposite has happened, with a range of indicators showing under-performance compared with other economies.

Opinion polls show Britons who regret leaving the EU increasingly outnumber those who do not. A survey published on Monday by news website UnHerd showed this was now the case in all but three of 632 parliamentary constituencies surveyed.

The government, led by Brexit-supporting Prime Minister Rishi Sunak, says Britain is prospering with new-found freedoms.

Last week, finance minister Jeremy Hunt challenged the talk of decline and said Brexit offered a brighter future with room for measures that will attract investment in areas such as the green economy and tech.

Many economists say leaving the EU is not the sole cause of Britain's woes - the country was hit hard by the coronavirus pandemic - but it is a factor that can help explain recent underperformance.

"It's been more than a slow burn. It's been a serious reduction in economic performance," said John Springford, deputy director at the Centre for European Reform think tank.

"If you impose barriers to trade, investment and migration with your biggest trading partner (EU), then you're going have quite a big hit to trade volumes, and to investment and to GDP," he said, pointing to a string of dismal economic data.

Britain was the only Group of Seven advanced economy yet to regain its pre-pandemic size of late 2019 at the end of September last year, the most recent period covered by data.

Springford estimated that Brexit reduced Britain's economic output - compared with what it would have been without leaving the EU - by around 5.5% as of mid-2022, based on a "doppelganger" model in which an algorithm selects countries whose economic performance closely matched pre-Brexit Britain.

The government's own forecasting organisation, the Office for Budget Responsibility, and the Bank of England also judge there to be a long-running net cost to leaving the EU.

Some economists disagree with the consensus.

Brexit-supporting economist Gerard Lyons, an adviser to online wealth management platform NetWealth and who advised Boris Johnson during his years as the mayor of London, said it was wrong to blame Britain's problems on Brexit.

"Our problems pre-date Brexit," Lyons said, pointing to chronically low rates of investment in Britain. "Achieving the benefits of Brexit very much depends on delivering ... a growth plan - how you can use your levers post-Brexit."

He criticised the doppelganger method of analysis on the basis that some smaller countries selected by the models were inappropriate comparators for a large economy like Britain.

TRADING BLOWS

Trade and investment data point to other Brexit problems.

Exports, especially in goods, have disappointed over the last three years - despite high hopes for a "Global Britain" rebalancing of the economy after Brexit.

Total exports, including services, have grown by less than those of any other G7 country since late 2019.

Boris Glass, senior economist at ratings agency S&P Global (NYSE:SPGI), said increased red tape in UK-EU trade had damaged the competitiveness of smaller British manufacturers especially, since they have fewer resources to deal with it.

"It's worth noting that the UK has more small exporters than for example, France or Germany. So in that respect they are disadvantaged," Glass said. "If you are an exporter with 20 employees, then the burden of filling out these forms is very costly. Some of them can't compete at all."

Business investment too has grown by less since the June 2016 Brexit referendum than in the United States, France or Germany, according to a Reuters analysis of data from the Organization of Economic Cooperation and Development.

Some pro-Brexit economists say such statistics ignore the fact that British corporate investment was unusually strong in the years leading up to mid-2016 and was bound to slow. But business survey evidence overwhelmingly points to Brexit as a factor behind weak investment in recent years.

"It's concerning that there doesn't seem to be any kind of pickup in investment. And I think, in order for us to have a durable recovery from the Brexit shock, then we've got to see that rise," Springford said.

Britain still boasts higher rates of employment and lower unemployment than most EU countries but there are some signs that Brexit may have impacted the labour market too.

Business groups want the government to relax its post-Brexit immigration rules as firms are struggling to find workers, something the BoE fears is stoking inflationary pressures.

And unlike most of its G7 peers, Britain's employment rate has yet to recover to its pre-pandemic level.

A second nationwide strike disrupted French electricity production, public transport and schools on Tuesday, in a backlash against the government's plans to make people work longer before retirement.

Unions, which have scheduled protest rallies across France throughout the day, want to keep the pressure on the government and hope to repeat the large turnout for the first national day of protest on Jan. 19.

That day, more than a million people marched in opposition to pushing the retirement age to 64 from 62 and accelerating a planned delay in the age eligible for a full pension.

"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."

Only about one in three high-speed TGV trains ran on Tuesday and even fewer local and regional trains, while the Paris metro was seriously disrupted.

Half of primary school teachers will walk off the job, their union said, while oil refinery staff and workers across other sectors, including public broadcasters, which played music instead of news programmes, also went strike.

French power supply was down by 4.4%, or 2.9 gigawatts, as workers at nuclear reactors and thermal plants joined the strike, data from utility group EDF (EPA:EDF) showed.

TotalEnergies (LON:TTEF) said there was no delivery of petroleum products from its French sites because of the strike, adding that petrol stations were fully supplied and that customers' needs were met.

Opinion polls show most French people oppose the reform, but President Emmanuel Macron and his government intend to stand their ground. The reform is "vital" to ensure the pension system keeps working, Macron said on Monday.

Pushing back the retirement age by two years and extending the pay-in period would yield an additional 17.7 billion euros ($19.18 billion) in annual pension contributions, allowing the system to break even by 2027, according to Labour Ministry estimates.

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

'NON-NEGOTIABLE"

The government made some concessions in the draft bill, such as setting the new pensionable age at 64 instead of Macron's campaign pledge of 65, and agreeing to a minimum pension of 1,200 euros a month for all.

Prime Minister Elisabeth Borne says the 64 threshold is "non-negotiable", but the government is exploring ways to offset some of the impact, in particular on women.

Borne said the government was looking at the impact of the reform on the additional pension rights for mothers.

As protesters rally across France, lawmakers will be debating the draft bill at committee level. The unions said they were trying to persuade lawmakers not to back the bill.

"When there is such a massive opposition (to a reform), it would be dangerous for the government not to listen," Mylene Jacquot, the secretary general of the CFDT union's civil servants branch, told Reuters.

Volkswagen is looking at setting up a battery cell factory in Ontario, Canada, the Handelsblatt business daily reported on Tuesday, adding that the province had offered investments and other incentives to win over the carmaker.

Five entries from January 2023 are listed in a lobby register of the Canadian province for Volkswagen (ETR:VOWG_p), including one that mentions Chief Executive Oliver Blume by name, the report said, citing the documents.

Volkswagen did not immediately reply to a request for comment.

The carmaker confirmed in December it was searching for a site for a battery cell plant in North America, and Blume said at the time that Canada was "one logical option".

The documents seen by Handelsblatt said that Ontario wanted to be "considered in competition with other locations in consideration."

The Dow closed lower Monday as investors were reluctant to load up on bullish bets ahead of the Federal Reserve decision and further quarterly earnings from big tech this week.

The S&P 500 fell 1.3%, the Dow Jones Industrial Average slipped 0.8%, or 260 points, and the Nasdaq Composite closed down 2%.

The Federal Reserve kicks off its two-day meeting on Tuesday, but with the prospect of a downshift to a 25-basis-point rate hike almost priced in for Wednesday, investors are expecting Fed chairman Jerome Powell to signal more hikes ahead and push back against expectations that the Fed could cut rates later this year.

“The 25 basis points hike is priced into the market,” Chief Strategist at Spouting Rock Asset Management Rhys Williams told Investing.com’s Yasin Ebrahim in an interview on Monday. “If Powell says we're not nearly done yet, then the market is going to sell off and some of the big January performance of the more longer duration assets [such as tech], will sell off.”

Technology was the biggest laggard ahead of a pivotal week as the bulk of big tech reports quarterly results, with Meta Platforms (NASDAQ:META) reporting results on Wednesday followed by Alphabet Inc (NASDAQ:GOOGL), Apple, and Amazon.com (NASDAQ:AMZN) on Thursday.

Apple (NASDAQ:AAPL), which fell 2% but is up 14% year to date, is expected by some on Wall Street to have benefited from an easing supply chain and a weaker dollar, though iPhone revenue was likely challenged by production challenges in China.

“We expect iPhone revenue was challenged due to well-publicized production challenges at an assembly facility for the iPhone 14 Pro and Pro Max, however, management had expected silicon shortages to be immaterial for the quarter, so we believe the company was able to meet demand for Mac and iPad,” Credit Suisse said in note.

Tech was also dragged lower by chip stocks amid pressure from weakness in Advanced Micro Devices (NASDAQ:AMD) ahead of the chipmaker’s results due Tuesday as sentiment on semis soured following the dire results from Intel Corporation (NASDAQ:INTC) last week.

GE HealthCare Technologies Inc (NASDAQ:GEHC) reported its maiden earnings after it was spun off as a public company from General Electric (NYSE:GE). The healthcare technology and diagnostics company reported Q4 earnings of $1.31 on revenue of $4.9 billion.

Energy stocks also played a role in the broader market selloff as oil prices fell more than 2% ahead of rate hikes by major central banks expected this week and still strong Russian oil exports.

Marathon Oil Corporation (NYSE:MRO), Occidental Petroleum Corporation (NYSE:OXY), and Devon Energy (NYSE:DVN) were among the worst decliners, with the latter down more than 4%.

In other news, Ford Motor (NYSE:F) fell nearly 3% on worries about waning demand after the company cut prices of its electric Mustang Mach-E crossover.

European shares declined in early trading on Monday, with investors looking ahead to a Federal Reserve meeting and key economic data this week.

At 05:23 ET (10:23 GMT), the regional Stoxx 600 fell 0.64%, the DAX index in Germany traded 0.63% lower, the FTSE 100 in the U.K. dropped 0.19% and the CAC 40 in France decreased by 0.64%.

Adding to the cautious sentiment was data from Germany showing that Europe's largest economy unexpectedly shrank in the fourth quarter. Gross domestic product in the country contracted by 0.2%, down from growth of 0.5% in the prior quarter, stoking concerns that Germany may be edging into a long-foreseen recession. Economists had anticipated that the reading would stagnate.

Inflation in Spain also rose for the first time since July, according to preliminary data. European Union-harmonized consumer prices in the country increased by 5.8% year-on-year, up from 5.5% in December and well above economists' estimates of 4.7%.

Meanwhile, equities in Europe received a mixed handover from Asia.

Chinese stocks rose after markets in the country reopened following a week-long holiday. Traders bet that the economy received support from its first Lunar New Year festivities without COVID-19 restrictions in three years. State media reported that domestic travel and consumption had bounced back sharply in the past week.

The Chinese government also reiterated over the weekend that it plans to shore up spending and drive local consumption. Business activity data due out this week is expected to provide a further glimpse into how much China has benefited from the scaling back of anti-COVID measures.

However, broader Asian markets retreated as focus turns squarely to a Federal Reserve meeting this week. While the central bank is widely anticipated to raise interest rates by 25 basis points, its outlook on monetary policy will be closely watched, given that recent data painted a somewhat mixed picture of the world’s largest economy.

Technology shares in Hong Kong, including Alibaba Group (HK:9988) and Tencent Holdings Ltd (HK:0700), were some of the worst performers for the day. A slew of U.S. tech earnings is scheduled to be released this week, with traders keen to find any clues about the health of the industry.

Indian stocks also sank for a third straight session, with the Nifty 50 and BSE Sensex 30 indexes hitting a three-month low as a rout in shares under the Adani Group showed little signs of easing.

In European corporate news, Ryanair (LON:RYA) Holdings PLC (IR:RYA) says it expects to see strong passenger demand over its key Easter and summer travel seasons, as more tourists from Asia and North America return to Europe due to the reopening of China's economy and recent strength in the U.S. dollar.

Shares in Renault SA (EPA:RENA) slumped after the French carmaker announced that it would cut its stake in Japan's Nissan (TYO:7201) to 15% as part of a revamping of their long-standing alliance.

Koninklijke Philips NV (AS:PHG) shares, meanwhile, posted their biggest gains since March 2020. The Dutch medical technology reported better-than-expected fourth-quarter earnings and announced that it would slash 6,000 jobs to help boost profits.

Unilever PLC (LON:ULVR) gained as well, with analysts reacting positively to the naming of Hein Schumacher as the consumer goods giant's new chief executive officer.

Elsewhere, oil markets were weighing the impact of the Lunar New Year holidays on demand in China. By 05:24 ET, U.S. crude futures were 0.51% lower at $79.27 a barrel, while the Brent contract slipped by 0.43% to $86.03 per barrel.

Additionally, gold futures edged down 0.12% to $1,927.00/oz, while EUR/USD was 0.42% higher at 1.0913.

The German economy unexpectedly shrank in the fourth quarter, data showed on Monday, a sign that Europe's largest economy may be entering a much-predicted recession, though likely a shallower one than originally feared.

Gross domestic product decreased 0.2% quarter on quarter in adjusted terms, the federal statistics office said. A Reuters poll of analysts had forecast the economy would stagnate.

In the previous quarter, the German economy grew by an upwardly revised 0.5% versus the previous three months.

A recession - commonly defined as two successive quarters of contraction - has become more likely, as many experts predict the economy will shrink in the first quarter of 2023 as well.

"The winter months are turning out to be difficult - although not quite as difficult as originally expected," said VP Bank chief economist Thomas Gitzel.

"The severe crash of the German economy remains absent, but a slight recession is still on the cards."

German Economy Minister Robert Habeck said last week in the government's annual economic report that the economic crisis triggered by the Russian invasion of Ukraine was now manageable, though high energy prices and interest rate rises mean the government remains cautious.

The government has said the economic situation should improve from spring onwards, and last week revised up its GDP forecast for 2023 -- predicting growth of 0.2%, up from an autumn forecast of a 0.4% decline.

As far as the European Central Bank goes, interest rate expectations are unlikely to be affected by Monday's GDP figures as inflationary pressures remain high, said Helaba bank economist Ralf Umlauf.

The ECB has all but committed to raising its key rate by half a percentage point this week to 2.5% to curb inflation.

Monday's figures showed falling private consumption was the primary reason for the decrease in fourth-quarter GDP.

"Consumers are not immune to an erosion of their purchasing power due to record high inflation," said Commerzbank (ETR:CBKG) chief economist Joerg Kraemer.

Inflation, driven mainly by high energy prices, eased for a second month in a row in December, with EU-harmonized consumer prices rising 9.6% on the year.

However, analysts polled by Reuters predict annual EU-harmonized inflation will enter the double digits again in January with a slight rise, to 10.0%. The office will publish the preliminary inflation rate for January on Tuesday.

China's smartphone sales fell 13% year-on-year in 2022, the largest plunge for the sector in a decade as consumers spent cautiously, market research firm IDC said on Sunday.

The total number of devices shipped was 286 million, down from 329 million in 2022.

That meant total 2022 sales volume was the lowest since 2013 and the first time since then that annual sales have dropped below 300 million, IDC said in a report.

Android handset maker Vivo was the top-selling brand over the year, with a market share of 18.6%. Its total shipments fell 25.1% year-on-year, however.

Honor ranked as the second best-selling brand, with shipments growing more than 34%, albeit from a low base.

Apple Inc (NASDAQ:AAPL) was the third best-selling phone brand in 2022, tied with Oppo.

Apple's overall sales fell 4.4% year-on-year, broadly outperforming the market downturn.

In Q4, despite being the top-selling brand in the three-month period, year-on-year sales for iPhones were still down, as supply chain issues caused by worker unrest at manufacturer Foxconn (SS:601138)'s plant in the city of Zhengzhou compounded worse-than expected demand, researchers wrote.

Strict COVID-19 controls in China, which ramped up in the spring of 2022 across several cities, weighed heavily on its economy which slumped to one of its worst levels in nearly half a century last year.

The plunge in smartphone sales in China reflected the sector's performance globally. In 2022, global smartphone shipments hit 1.2 billion, the lowest since 2013 and a year-on-year fall of more than 11%, according to IDC.

Gautam Adani faces a critical day on Monday with his flagship company's $2.5 billion share sale's second day of bidding overshadowed by a $48 billion rout in the Indian billionaire's stocks which was sparked by a U.S. short seller's report.

Seven listed companies belonging to the Adani conglomerate, which is led by Asia's richest man, saw sharp falls in their values after Hindenburg Research report last week flagged concerns about high debt levels and the use of tax havens.

Adani Group issued a detailed response late on Sunday, saying it complies with all local laws and had made necessary regulatory disclosures. It has called the report baseless and said it was considering taking action against Hindenburg.

For 60-year-old Adani, the stock market meltdown has been a dramatic setback for a school-dropout who rose swiftly in recent years to become the world's third richest man, before slipping to rank seventh on the Forbes list last week.

The secondary share sale by Adani Enterprises opened for retail and institutional investors on Friday, but saw only 1% subscriptions as the company's stock fell 11% below the minimum offer price.

Adani Group told Reuters in a statement on Saturday that the sale remains on schedule at the planned issue price, even as sources said bankers on the country's largest secondary share sale were considering extending the timeline beyond Jan. 31, or tweaking the price due to the fall in its share price.

"It is important for the Adani Group to ensure the share sale goes through -- If they stick to the price and don't reduce it, and the stock doesn't bounce back, nobody will be keen to apply," said Mumbai-based market analyst, Ambareesh Baliga, who advises various family offices.

"Monday's trade will be critical."

In a separate statement on Sunday, Adani Group's chief financial officer Jugeshinder Singh said it is focused on the share sale and is confident it will sail through. He also said its anchor investors have shown faith and remain invested.

'FREE FALL'

Some Adani Group stocks have surged more than 1,500% in the last three years amid aggressive expansion in businesses that include ports, power generation, airports and mining.

Adani Enterprises has set a floor price of 3,112 rupees per share and a cap of 3,276 rupees for the secondary share sale - well above their close of 2,761.45 rupees on Friday.

Arun Kejriwal, founder of Kejriwal Research & Investment, said investors were likely to wait until the last day of the share sale to see if the price band is tweaked.

"I expect that the free fall seen of Friday may abate but recovery back towards a level prior to this fall may be difficult," he added.

Indian regulations say the share offering must receive minimum subscription of 90%, and if it does not the issuer must refund the entire amount.

Maybank Securities and Abu Dhabi Investment Authority are among investors who bid for the anchor portion of the issue.

On Saturday, index provider MSCI said it was seeking feedback from market participants on Adani and was monitoring the factors that "may impact the eligibility of those relevant securities" in MSCI indexes.

There are at least six Adani Group companies in the MSCI India Index, with a cumulative weight of 4.31%.