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Adani Indicted for Historic Scandal

Billionaire Gautam Adani, chairman of the Adani Group and one of Asia’s richest individuals, faces a landmark indictment in a New York federal court on charges of orchestrating a multibillion-dollar fraud and bribery scheme. The case, announced Wednesday, implicates the tycoon and seven other defendants in a wide-ranging scandal that could have significant global repercussions.

Adani, who controls one of India’s largest business conglomerates, is accused of paying over $250 million in bribes to Indian officials to secure solar energy contracts, misleading U.S. investors to raise billions, and violating multiple U.S. securities laws.

The charges mark a dramatic escalation in scrutiny of the Adani Group, whose rapid expansion has made it a symbol of India’s economic ambitions—and controversies.

You can read more on the matter here.

What’s going on?

• Rogers Layoffs Add to Growing Wave of Cuts in Canada’s Radio Sector (theDeepDive)

• US Existing-Home Sales Rose in October After Mortgage-Rate Drop (Bloomberg)

• Nearly 4,000 Ford Workers Face Job Cuts as EV Crisis Deepens (theDeepDive)

• ICC Issues War-Crimes Arrest Warrants for Netanyahu, Gallant Over Gaza War (WSJ)

• Crypto investor pays $6 million for a banana — and plans to eat it (CNBC)

• Toronto Tightens Rental Rules With Anti-Renoviction Measures (theDeepDive)

• Russia fires intercontinental ballistic missile at Ukraine for first time, Kyiv says (FT)

• Convicted Human Smuggler Obtained New Canadian Passport Despite Court Order (theDeepDive)

• In raising nuclear threat, Putin bets Trump is willing to back down on Ukraine (Globe)

What’s the latest?

• Real Estate: KingSett Capital has suspended income distributions and redemptions for its $4.9 billion Canadian Real Estate Income Fund for the next year, citing market illiquidity and falling property values. The fund includes major office properties across Canada, with KingSett managing over $18 billion in assets. CEO Rob Kumer highlighted elevated interest rates and weak economic growth as challenges, pledging to restart distributions by December 2025.

• AI: The U.S., particularly California, is navigating fragmented AI regulation amidst debates on balancing innovation with safeguards. While California vetoed a major AI bill, it passed a transparency law, reflecting tensions over regulation's impact on its tech hub status. The U.S. lags globally, with no federal AI or data privacy law, leading to varied state-level legislation. Colorado's AI Act, focusing on discrimination, sets a precedent, while experts warn poorly designed rules could harm innovation and cybersecurity.

• Home Sales: U.S. home sales rose 3.4% in October, reaching 3.96M units annually, marking the first annual increase in three years (+2.9% YoY). Inventory grew 19.1% YoY but remains 30% below pre-COVID levels, keeping supply tight and median prices up 4% YoY to $407,200. First-time buyers accounted for 27% of sales, below the historical average of 40%, with cash buyers dropping to 27% from 29% YoY. Mortgage rates, now at 7.05%, continue to impact affordability, though buyer demand surged 17% in mid-November, potentially signaling a post-election rebound.

• Nvidia: Nvidia's Q3 revenue soared 94% YoY to $35.08 billion, surpassing the $33.16 billion forecast, with EPS at 81 cents, also exceeding expectations. Despite strong results, shares dropped 1.5% as growth slowed compared to prior quarters (122% in Q2, 262% in Q1). Analysts note risks of "over-earning" fading, but demand remains robust for its next-gen Blackwell chip, which already exceeds supply. Semiconductor rivals saw mixed reactions: AMD fell 1%, while Qualcomm and Intel gained 1% and 1.2%, respectively.

• Google: The U.S. Department of Justice proposed measures to end Google’s search monopoly, including selling Chrome, licensing search results to rivals, and possibly divesting Android if competition isn’t restored. Prosecutors also seek to prohibit exclusive agreements with device makers like Apple and enforce compliance via a court-appointed technical committee. Google processes 90% of U.S. searches, and critics argue its practices harm competition, while Google warns these actions could hurt consumers and innovation. A trial on these proposals is set for April 2024, with Google presenting its countermeasures in December 2023.

Game-changing solution for heart inflammation?

The stock market and stuff

• NVIDIA Doubles Revenue in a Year, But Can It Sustain the Momentum? (theDeepDive)

• Google must sell Chrome to restore competition in online search, DOJ says (Reuters)

• Artemis Gold Begins Feeding Ore Through Processing Facility At Blackwater (theDeepDive)

In the juniors

• Montage Gold Repurchases 1% NSR At Kone For US$10 Million (theDeepDive)

• Why Copper Needs $6/lb Before New Mines Get Built | Altius Minerals with Brian Dalton (theDeepDive)

• Silver47 Hits 177.10 g/t Silver Equivalent Over 22.03 Metres (theDeepDive)

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