investment

Backlash to FIFA’s private investment plan for World Cups and events was huge; now football reacts to the U-turn’s fallout.

FIFA President ‌Gianni Infantino has said that world football’s governing ⁠body had ⁠scrapped plans to sell a stake in the World Cup and other events to private investors after widespread backlash.

The response to the plan, which was announced on Tuesday by Infantino, was overwhelming.

The wording of the outcry from around the globe was damning of the proposal, but stopped short of directly criticising Infantino.

The reaction to Infantino’s decision late on Friday to scrap the investment scheme, which would have sold minority stakes in World Cups and other FIFA events, ranges from overt votes of no confidence in the FIFA president to more subtle, but equally notable, condemnation of the week’s events.

“UEFA welcomes FIFA’s decision to withdraw its plan to sell a stake in ⁠its competitions – including the World Cup – into private hands,” European football’s governing body said.

“The current FIFA leadership has not only lost UEFA’s confidence but also that of many other members of the football family.”

“UEFA will begin ⁠work immediately with partners and stakeholders all over the world and right across the game to propose a new way of distributing resources through the existing FIFA Forward programme.”

“This is a victory for the whole game. But it must not be the end of the story. The proposal ‌has gone. The task of rebuilding trust in FIFA has only just begun.”

AFC’s president, Sheikh Salman bin Ebrahim Al Khalifa

“The future of global football must always be shaped through ⁠proper consultation, collective dialogue and respect for the established governance structures of our game,” said Sheikh Salman, president of the Asian Football Confederation.

“The AFC stands ready to support any initiative that strengthens the unity of the football family, contributes to ‌the continued growth of the game globally and delivers meaningful benefits to all stakeholders.”

“We stand shoulder to shoulder with our European colleagues and fully support the collective view,” an FA spokesperson wrote on its website.

“We oppose FIFA’s plans – the FIFA World Cup belongs to football and always will.”

Dutch FA statement

“With the withdrawal of the proposal, the matter is not settled for the KNVB,” the Dutch statement read.

“The ⁠way this process has unfolded has led to a fundamental breach of trust in the leadership of FIFA President Gianni Infantino. The KNVB no longer has confidence in his leadership.”

“We welcome FIFA’s ⁠decision not to proceed with the proposal. It is in line with our expectations in light of the flawed process and the reactions the proposal ‌has provoked,” Astrom said.

“At the same time, we are still concerned about deficiencies in transparency and governance, and want to emphasize ‌the ‌importance of continued discussion and dialogue about how football should be governed and developed.”

“As a founding member of FIFA and a representative on the FIFA Council, the RBFA remains committed to a strong, independent and sustainable model for international football,” Van Damme said.

“Football has never stood still, nor should it,” Isaac said.

“Throughout its history, our game has evolved through innovation, investment and new ideas that have strengthened football, created greater opportunities for players, ⁠coaches and referees, and enhanced the experience ⁠of supporters around the world. That spirit of progress must continue.

“Some principles, however, should never change. Integrity. Independence. Good governance. Transparency. Meaningful consultation. Due process. ⁠These are not constraints on progress. They are what make lasting progress possible.”

Asian Football Confederation says FIFA future must be ‘shaped through proper consultation’ after World Cup plan fallout.

Asian Football ‌Confederation (AFC) President Sheikh Salman bin Ebrahim Al Khalifa has ⁠welcomed FIFA’s ⁠decision to walk back plans to sell a stake in the World Cup and stressed the need ⁠to discuss all such moves with transparency in the future.

FIFA’s plan was to raise up to $4.2bn by ⁠selling about a 20 percent stake to private investors in a new unit that would run FIFA events, including the World Cup.

The proposal, first announced on Tuesday, had faced a storm of ‌opposition from regional confederations, including the AFC, which said they were blindsided by the announcement.

Following the backlash, FIFA President Gianni Infantino said world football’s governing body had scrapped the plans after listening “carefully to all the views”.

In a letter posted on the AFC’s website on Saturday, Sheikh Salman ⁠said he expects “any initiative that has the ⁠potential to impact global football will be presented and discussed with the Confederations, the FIFA Council, Member Associations and other stakeholders in a timely, ⁠transparent and meaningful manner”.

“The future of global football must always be shaped through proper ⁠consultation, collective dialogue and respect for ⁠the established governance structures of our game,” he said.

On Thursday, Sheikh Salman, in a letter to member associations, had said the way the FIFA proposal had been made was “totally unacceptable“.

The Kuala Lumpur-based AFC is one of FIFA’s six confederations and is responsible for running ‌regional ‌club and national team competitions across continental Asia, the Middle East and Australia.

Gianni Infantino looked every bit the “King of Football”, as US President Donald Trump likes to call him, when the two allies sat together watching the World Cup final less than two weeks ago.

Sure, there were some boos inside MetLife Stadium near New York when the two men walked across the turf to present the trophy and medals to Spain and Argentina players on July 19.

Still, that 104th and final game capped the biggest-ever tournament seen as a vindication for the FIFA president – a consensus success on the field and a financial bonanza for global football. Infantino could look ahead to his likely re-election coronation next March.

The sunny scene must now feel an age ago since Infantino caused a seismic rift in global football.

The intensifying fallout has threatened the 56-year-old Infantino’s job after he seemed untouchable until this week.

Did Infantino have any choice but to abandon FIFA World Cup investment plan?

Infantino’s misstep was inviting private investors, led by Joshua Kushner, to buy a stake in future profits from World Cups and all FIFA events. The ensuing backlash – which included pledges by European nations to boycott FIFA events and claims from senior staff that Infantino deceived everyone – led Infantino to announce Friday that he was abandoning the plan.

“Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place,” he said in a statement.

Infantino left New York City last week with letters pledging election support from about 200 of FIFA’s 211 national member federations who vote for their leader every four years.

Now, even after scrapping his divisive investment project, his support remains unclear at best.

What would the private investment plan have done to for FIFA?

Infantino’s proposal would have created a subsidiary – known as FIFA Forward Enterprise (FFE) – for the money-making parts of the not-for-profit football body’s work: running tournaments like the World Cup, selling broadcasting and sponsorship, tickets and hospitality.

Private equity and petrostate sovereign wealth money has been normalised in European club football, yet it still seems unthinkable to many observers in the context of the World Cup. Football’s ultimate prize is seen as being about glory, not money, and fans have long believed it belongs to them.

FIFA proposed raising $4.2bn from investors buying a stake of about 20 percent in FFE, based on an equity valuation of $20bn. The “anchor investor” would have been Thrive Eternal, launched by Joshua Kushner, whose brother Jared Kushner is a son-in-law of Trump.

FIFA’s 211 member federations – already effectively the owners of the governing body as a nonprofit association under Swiss law – were offered $20m each. The deadline to accept was September 19.

The members already are due $10m each from FIFA over the next four years, funded largely by its record $15bn revenue over 2023-26 tied to the World Cup that just ended.

FIFA says under FFE, that would have doubled to $20m each, then rise to $22m each through 2034, and $24m to 2038.

That’s a huge sum for tiny football federations in places like Andorra, Montserrat and Papua New Guinea. Deep-pocketed football powers like England, Spain or France have other priorities.

Who were the main opponents of Infantino’s plan for FIFA and World Cups?

Some FIFA vice presidents, some of its top executives, all the European football federations, the football bodies of Asia and North America, Britain’s prime minister, the global group of national leagues, a lot of fans worldwide.

Essentially, everyone.

Infantino was looking increasingly friendless on Friday. His senior adviser, former Goldman Sachs banker Carlos Cordeiro, resigned and called it a bad deal. FIFA chief operating officer, Kevin Lamour, gave a stinging statement to The Associated Press news agency in defence of colleagues that all but invited his boss to fire him.

A key move Thursday was European football body UEFA pledging to boycott all FIFA competitions until Infantino dropped the plan.

Europe’s teams routinely dominate and win FIFA trophies like the men’s World Cup and Club World Cup, which are its biggest revenue earners.

They collectively feared that private investors would seek – and demand – value from more games and bigger competitions that threaten the balance of global football.

That could jeopardise attention and revenues for club football, including the UEFA Champions League.

Fixture calendars are already congested, elite players are at their limits, broadcast and sponsor money is not unlimited.

All are angry that Infantino seems not to have consulted anyone while planning the project over the last year, when he was so focused on spending time in Trump’s orbit. Even Trump said Friday he had not spoken with the FIFA chief on his plan to sell stakes in the tournament.

Did Infantino have any support for his plans for FIFA and World Cups?

Infantino’s traditional support base in Africa, which has 54 of the 211 voting members, had been neutral about the offers of game-changing money for many of them.

The 10-nation South American group CONMEBOL said on Friday it had received the proposal and would evaluate the issue “with the rigour it demands”. CONMEBOL is led by FIFA’s vice president, Alejandro Dominguez of Paraguay, who is relying on Infantino expanding the 2030 World Cup to 64 teams.

That would give more games to minority cohosts Argentina, Paraguay and inaugural 1930 World Cup host Uruguay, who currently are set to get just one game each of the 104. The rest are in Spain, Portugal and Morocco.

What happens now for Infantino in his role as FIFA president?

The UEFA-led resistance succeeded in stopping the sell-off plan. Will that satisfy Infantino’s opponents to allow him to remain in office?

Does Infantino have the credibility to stay in office after interventions Friday by Lamour and Cordeiro that surely would make most presidencies untenable?

November 18 is the deadline for candidates to enter the next presidential contest, exactly four months ahead of the March 19 vote in Rabat, Morocco, where FIFA has its African headquarters.

Infantino was re-elected unopposed in 2019 in Paris and 2023 in Kigali, Rwanda. FIFA statutes allow him one more four-year term in office.

The FFE spinoff seemed a way to create a commissioner-like role for Infantino beyond 2031, likely paying much more than his current annual salary and bonus deal of more than $6m.

It would take 106 votes to ensure a majority in a contested election. Continents surely do not vote uniformly en bloc, but most of Europe’s 55, plus CONCACAF’s 35 and Asia’s 46 would be a solid base.

Speculation on a likely direct challenger typically lands on Paris Saint-Germain’s Qatari president Nasser Al-Khelaifi and the Canadian FIFA vice president, Victor Montagliani.

Sheikh Salman bin Ebrahim Al Khalifa, the AFC’s longtime president from Bahrain, narrowly lost the FIFA presidential election to Infantino in 2016, so may decide to run again.

All such talk seemed fanciful until this week, despite long-term unease with Infantino’s style and previous attempts to force through unpopular projects.

The talk has never seemed more likely to become action.

July 31 (Asia Today) — South Korea will launch a strategic investment fund worth more than 20 trillion won, or about $13.6 billion, next year to provide long-term capital to artificial intelligence, semiconductor and other industries considered vital to national security and economic growth.

The government said Friday that it would establish a separate strategic investment account within the Korea Investment Corporation rather than create an independent sovereign wealth fund.

Deputy Prime Minister and Finance and Economy Minister Koo Yun-cheol announced the plan during an emergency economic meeting and a meeting of economic ministers at the Government Complex Seoul.

The new account will use KIC’s international investment network and asset-management expertise while expanding the corporation’s mandate beyond its traditional role of investing public foreign-exchange assets overseas.

The government plans to submit a revision to the Korea Investment Corporation Act to the National Assembly in August and complete the legislation before the end of the year.

The fund is expected to begin operating in 2027.

Government shares to provide initial capital

The fund will begin with more than 20 trillion won in assets.

The government plans to contribute more than 16 trillion won, or about $10.9 billion, in shares it holds in public financial institutions, including the Korea Development Bank and the Export-Import Bank of Korea.

It will also contribute about 4 trillion won, or $2.7 billion, in private-company shares received as payment for inheritance and gift taxes.

The government is considering accepting private donations intended to increase national wealth as another source of capital.

The fund will target artificial intelligence, semiconductors and other advanced strategic industries as well as data centers, critical infrastructure and overseas companies important to South Korea’s supply chains.

Unlike conventional policy financing, which often relies on loans, guarantees or subsidized credit, the fund will primarily make direct equity investments.

The government said the approach would allow it to remain invested in promising companies for longer periods and share in their growth.

The fund will also be able to exercise shareholder voting rights to promote corporate value, protect critical technologies and help companies defend themselves against hostile takeovers.

Fund to serve as an anchor investor

The government wants the strategic account to serve as an anchor investor capable of attracting global institutional investors to South Korean projects.

By committing public capital first, the fund could reduce perceived risk and encourage foreign sovereign funds, pension funds and private investors to participate.

The government also plans to connect the new account with existing policy funds.

Venture and growth funds usually must sell their holdings and return capital to investors within four to eight years.

Under a proposed relay-investment system, the strategic fund could purchase stakes in promising companies when those shorter-term policy funds reach maturity or begin liquidation.

The arrangement is intended to prevent companies with long development cycles from losing financial support before they become commercially established.

The model could be particularly important for semiconductor fabrication, artificial intelligence infrastructure, biotechnology and other sectors requiring large investments over many years.

Separate governance structure planned

The government said it would create governance safeguards intended to protect the fund’s investment independence.

KIC’s board structure would be divided between its existing foreign-reserve investment account and the new strategic account.

A dedicated investment committee and advisory committee would be established for strategic investments.

An operating committee would set broad policy and investment priorities but would not intervene in individual investment decisions, the government said.

The separation is intended to prevent short-term political considerations from determining which companies receive investments.

The plan also represents a change from an earlier proposal to establish a completely separate sovereign wealth fund.

The government instead decided to expand KIC’s mandate and use its existing personnel, investment systems and global relationships.

Long-term capital for industrial strategy

South Korea has introduced several public financing programs to support advanced industries, including funds targeting chips, artificial intelligence, batteries and biotechnology.

The new strategic account differs because it is designed to hold equity investments for extended periods rather than provide loans or exit investments according to fixed fund schedules.

The government expects the fund to support major national projects involving semiconductors, physical artificial intelligence and data centers while helping South Korean companies secure critical overseas supply chains.

It also hopes investment returns will gradually expand the fund’s assets and reduce its dependence on additional government contributions.

The success of the plan will depend on whether the government can maintain commercial investment discipline while pursuing broader industrial and national-security objectives.

It will also require clear rules governing voting rights, corporate intervention, investment losses and potential conflicts between financial returns and government policy.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260731010011712

Fifa president Gianni Infantino says he has scrapped the controversial plan to sell off stakes in the governing body’s major competitions, following widespread opposition.

Infantino said it had become clear the project had “created divisions” that are “no longer in the interest” of its original objective.

The Swiss added: “As a result, this proposal will not proceed.”

Infantino had offered all 211 member associations $40m (£30m) if they backed a proposal for private investment in its tournaments, including the men’s and women’s World Cups.

European football’s 55 member associations, Uefa, voted on Thursday to boycott World Cups if the plans went ahead.

Fifa’s chief operating officer Kevin Lamour said the governing body’s own administration had been “deceived” about the project.

Carlos Cordeiro – Infantino’s senior adviser on global strategy and governance – resigned over the mater, saying the proposal was “a bad deal for football” and would “mortgage football’s future”.

That came after two other major confederations spoke out against the plans.

Concacaf, which governs football in North, Central America and the Caribbean – and hosted this summer’s World Cup – said its members “rejected” the proposal, with sources saying the vast majority of associations from the region are losing, or have lost, faith in Infantino.

The Asian Football Confederation (AFC) said it stood in “solidarity” with Uefa and Concacaf, while UK Prime Minister Andy Burnham said Infantino was “the wrong man” to lead Fifa.

Infantino, 56, is now under immense pressure as he seeks re-election for a fourth term as president at the Fifa Congress in March.

He said he now intends to “bring all interested parties back together” in the “spirit of shared interest” in football.

More to follow.

Fifa wants to create a commercial subsidiary to run its main events, including its World Cups, and external investors will be able to buy stakes in it.

It said it would “invite third parties to make minority, non-controlling investments” in a new subsidiary – Fifa Forward Enterprise (FFE).

On Friday, Fifa said FFE had been proposed “to ensure all Fifa member associations have the opportunity to take meaningful ownership of the commercial opportunity of football in their respective countries”.

“This does not come at the cost of either the spirit or the governance of Fifa or football itself,” it added.

However, Uefa has accused Fifa of using football “to enrich themselves and their friends”.

Infantino previously wrote to Fifa members saying they will receive $40m (£30m) if they back his controversial proposal. He set a deadline of 19 September for federations to accept his plans if they want to access an initial $20m (£15m).

If approval is granted, Fifa says Thrive Eternal is expected to lead the proposed investor group for FFE.

Thrive is an American venture capital firm founded by Joshua Kushner – the brother of US President Donald Trump’s son-in-law Jared.

Uefa’s 55 member associations have voted to boycott the World Cup if Fifa proceeds with its plan to sell stakes in its competitions to private investors.

The decision was made at an emergency meeting on Thursday to discuss the proposals announced by Fifa – world football’s governing body – on Tuesday.

Uefa, which governs European football, had made its opposition clear by releasing two damning statements about the plans – and that strength of feeling has now been reaffirmed.

The boycott would cover all Fifa competitions, including the men’s and women’s World Cups and Club World Cup and be triggered if Fifa president Gianni Infantino’s proposals are voted through by member associations.

The first time this stance will be tested is October, when the Women’s World Cup play-offs are due to be held.

More to follow.

Asian stock markets extended their sharp selloff on Wednesday as investor concerns over artificial intelligence (AI) valuations deepened ahead of a crucial round of earnings from major U.S. technology companies and the Federal Reserve’s latest monetary policy decision. The decline reflects growing skepticism over whether massive investments in AI infrastructure will generate sustainable profits, while renewed tensions in the Middle East added fresh inflationary risks through higher oil prices.

The market downturn comes after months of extraordinary gains driven by optimism surrounding AI, particularly among semiconductor manufacturers and technology giants. However, disappointing earnings signals and concerns over corporate cash flows are prompting investors to reassess whether the sector’s lofty valuations remain justified.

Asian Markets Extend AI Driven Selloff

Technology heavy markets across Asia led the global decline as semiconductor stocks came under intense pressure.

South Korea’s KOSPI plunged more than 11 percent, reaching its lowest level since April after suffering another double digit loss a day earlier. Taiwan’s benchmark index dropped 5 percent, while Japan’s Nikkei declined 2.6 percent. The broader MSCI Asia Pacific index excluding Japan also fell sharply, highlighting widespread investor caution across the region.

The weakness was concentrated in technology stocks that have largely fueled this year’s market rally through expectations of sustained AI demand.

Chip Stocks Face Growing Scrutiny

Semiconductor companies remained at the center of the selloff despite reporting robust financial results.

South Korean memory chip giant SK Hynix reported operating profits that increased more than sixfold compared with the previous year. Nevertheless, its shares fell 9 percent after investors judged the results against exceptionally high expectations.

Market participants are increasingly demanding stronger evidence that companies can convert enormous AI related capital expenditure into long term profitability. Investors are also seeking clearer commitments regarding shareholder returns and long term supply agreements before assigning premium valuations.

The reaction illustrates how market expectations have evolved from rewarding growth alone to demanding measurable financial returns.

Big Tech Earnings Become Critical Test

Attention has now shifted to earnings from Microsoft and Meta, which are expected to provide important insight into the financial sustainability of AI investments.

The results follow disappointing updates from Alphabet and Tesla, whose weaker cash flow performance raised concerns that rising AI spending may be placing increasing pressure on corporate finances.

Investors will closely examine whether major technology companies can demonstrate that billions of dollars invested in AI infrastructure are producing corresponding improvements in revenue growth and profitability.

Failure to provide convincing evidence could accelerate the ongoing market correction.

Oil Prices Rise as Middle East Tensions Return

Geopolitical developments added another layer of uncertainty after renewed military activity between the United States and Iran pushed energy prices higher.

Brent crude rose more than 3 percent while West Texas Intermediate crude also gained over 3 percent following reports of Iranian ballistic missile launches and renewed concerns over the security of shipping through the Strait of Hormuz.

The waterway remains one of the world’s most strategically important energy corridors, and any disruption raises fears of tighter global oil supplies and renewed inflationary pressures.

Higher energy prices have complicated the outlook for financial markets by increasing uncertainty over future monetary policy.

Federal Reserve Decision in Focus

The Federal Reserve’s policy announcement has become increasingly significant as investors attempt to balance slowing market sentiment against persistent inflation risks.

Markets remain divided over whether the central bank will maintain current interest rates or opt for another increase. Rising oil prices have strengthened expectations among some analysts that policymakers may adopt a more cautious stance toward inflation.

A more hawkish outcome could place additional pressure on technology stocks, whose high valuations remain particularly sensitive to higher borrowing costs.

Analysis

The latest market correction suggests that the AI investment narrative is entering a more demanding phase. Investors are no longer rewarding technology companies solely for expanding AI infrastructure but increasingly expect tangible financial returns from unprecedented levels of capital expenditure.

At the same time, renewed geopolitical tensions in the Middle East have introduced fresh inflation risks through higher oil prices, complicating the Federal Reserve’s policy choices and adding further uncertainty to global financial markets. Higher interest rates typically reduce the attractiveness of high growth technology stocks by increasing financing costs and lowering future earnings valuations.

While the long term outlook for artificial intelligence remains strong, the market appears to be transitioning from optimism driven by expectations to a phase focused on profitability, efficiency, and sustainable returns. Companies that fail to demonstrate clear commercial benefits from their AI investments may continue to face heightened investor scrutiny, making upcoming earnings reports a defining test for the next phase of the global AI driven market cycle.

With information from Reuters.

July 27 (Asia Today) — Nvidia plans to invest $1 billion in South Korean technology company Naver as the companies expand a partnership to build large-scale artificial intelligence infrastructure.

Naver said Monday it would issue about 7.24 million new shares to Nvidia through a private placement. The transaction would give the U.S. chipmaker a stake of about 4.5%, making it Naver’s third-largest shareholder.

Payment for the shares is scheduled for Oct. 30.

The investment would deepen a partnership announced in June to build global AI factories serving demand for sovereign AI, which refers to AI infrastructure and models operated under a country’s own laws and data controls.

The companies previously focused on supplying graphics processing units and cooperating on technology. Nvidia’s planned equity investment would broaden the relationship into a strategic partnership involving computing infrastructure, software, customers and capital.

Naver said Nvidia decided to invest because of the South Korean company’s full-stack AI capabilities, which include data centers, graphics processor clusters, cloud platforms, large language models and consumer services.

Naver operates graphics processor infrastructure at more than 20 locations across South Korea and plans to use that experience to expand its GPU-as-a-service and sovereign AI businesses.

Naver Cloud and Nvidia are also discussing an AI computing partnership that could include joint development of global AI factory projects.

The companies plan to combine Nvidia computing systems with Naver’s cloud, software and AI services rather than limiting their relationship to hardware purchases.

Nvidia said the proposed investment is subject to customary closing conditions and Naver securing at least $9 billion in committed project financing separate from Nvidia’s investment.

Brookfield has signed a nonbinding term sheet under which the global investment firm could provide up to $9 billion for computing infrastructure. The companies are discussing a structure in which Brookfield would develop or finance graphics processor systems and data centers for Naver’s use.

Naver’s own investment obligations have not been finalized.

The company plans to begin operating a 55-megawatt AI factory in the first half of 2027, expand capacity to 100 megawatts by the end of that year and reach 200 megawatts in 2028.

Its longer-term goal is to develop gigawatt-scale infrastructure.

Naver plans to begin the project at its GAK Sejong data center and later pursue sovereign AI customers in the Asia-Pacific region, Europe and the Middle East.

The company is also seeking to improve shareholder returns. Its board voted Friday to cancel about 4.9 million treasury shares valued at approximately 1.02 trillion won ($694.5 million). The shares are scheduled to be retired Aug. 3.

“The investments by Nvidia and Brookfield will be an important turning point for Naver’s future growth,” Naver Chief Executive Officer Choi Soo-yeon said.

Choi said the company would work to secure AI factory customers and establish itself as a major global AI infrastructure provider.

Naver board Chairman Lee Hae-jin said the partnership would allow the company to take its data center technology and operating expertise to the global market.

“We will actively cooperate with companies around the world to create an AI ecosystem that respects the diversity of countries and communities,” Lee said.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260727010009741

NBCUniversal’s Peacock is stretching its wings by joining the subscription YouTube Premium service — a significant boost for the streaming platform that has struggled to find its niche in the increasingly crowded landscape.

NBCUniversal and YouTube on Monday announced the multi-year partnership. Beginning early next year, Peacock will be available as part of YouTube Premium’s U.S. subscription bundle, which also includes ad-free videos and music.

The pact represents Peacock’s largest wholesale distribution agreement to date, one that will introduce the service into millions of new homes.

On Friday, NBCUniversal owner Comcast disclosed the service had finally reached profitability in the second quarter after billions of dollars of investment.

The important benchmark comes as Comcast prepares to spin off NBCUniversal entertainment and news media businesses into a separate company. Peacock, which launched in 2020, grew its paid subscribers by 4% to 48 million in the second quarter, compared to the first quarter.

Comcast has long tried to make Peacock an asset for its Xfinity broadband and cable TV subscribers, but recently began to expand its partnerships in recognition that consumers were getting overloaded with pricey choices.

As part of the agreement, NBCUniversal’s linear television channels will remain on the YouTube TV service.

“This partnership brings NBCUniversal’s world-class content and iconic franchises to YouTube’s unmatched scale and global platforms,” Mike Cavanagh, NBCUniversal’s chief, said in a statement. “We’re excited to deepen our relationship with YouTube through a collaboration that reflects our strategy of partnering with industry leaders to drive sustained growth for NBCUniversal.”

The deal will give YouTube, owned by Google, a bevy of sports, including NFL football, NBA basketball, soccer and Major League Baseball.

“We’re incredibly excited to expand our partnership with NBCUniversal to redefine what a modern entertainment subscription can be for consumers,” YouTube Chief Executive Neal Mohan said in the statement. “YouTube Premium brings your favorite creators, artists and cultural moments together uninterrupted, and now, we’re pairing that ultimate viewing experience with Peacock’s expansive lineup of live sports.”

Published on
06/07/2026 – 11:38 GMT+2

The South Korean government intends to set aside the extra tax income flowing from its record-breaking chip industry in a dedicated “future response fund”, the presidential office said, using the proceeds of the AI boom to bankroll public projects ranging from industrial infrastructure to support for younger generations.

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Behind the windfall sit Samsung Electronics and SK hynix, whose memory chips have become essential to the data centres powering the global AI race.

Their record profits this year have propelled the wider economy, and swollen the government’s tax receipts along the way.

Presidential chief of staff Kang Hoon-sik outlined the plan at a meeting between the government and the ruling party on Sunday, saying the fund would help finance large-scale projects built around AI and semiconductors, while also tackling inequality and helping young people with housing, start-ups and work.

Kang warned that the extra revenue thrown off by the chip boom must not be squandered at what he described as a decisive moment for the country’s future.

No figure was provided for the fund’s size, as the government will consider its use at a fiscal strategy meeting this month before consulting the public.

In an interview with the Dong-A Ilbo newspaper, Kang added that part of the money would go towards the utilities on which chip plants depend, above all power and water.

A boom that keeps giving

The windfall reflects an extraordinary run for Korea’s chipmakers.

Samsung shares surged more than 170% in the first half of the year, and SK hynix shares rose more than 300%, carrying both companies past $1 trillion (€874bn) in market value.

Samsung is due to publish preliminary second-quarter earnings on Tuesday, while SK hynix plans to raise 45 trillion won (€25.7bn) through a listing on the Nasdaq.

Both are also part of an 800 trillion won (€457bn) public-private push, unveiled last week, to build a new chipmaking hub in the country’s southwest.

How the windfall should be spent has become a live political debate.

In May, presidential policy chief Kim Yong-beom floated using it for start-ups, young people, basic income schemes in rural and fishing communities, and support for artists.

The boom has also emboldened workers as Samsung averted a major walkout in May by agreeing to a bonus deal with its largest union.

Additional sources • AFP

June 30 (Asia Today) — South Korean battery materials producer EcoPro Group is expanding its investment in an Indonesian nickel smelter to more than double its access to the critical mineral used in electric vehicle batteries.

EcoPro and its subsidiary EcoPro BM plan to increase their combined stake in the Bahodopi Nickel Smelting Indonesia project to 39%, becoming major shareholders and taking a leading role in its development. The smelter is under construction at the International Green Industrial Park on the Indonesian island of Sulawesi.

The total investment is estimated at about 1.5 trillion won, or $967 million, based on an exchange rate of 1,550.77 won per dollar.

EcoPro completed the first phase of its Indonesian investment over the past four years, securing rights to about 29,000 metric tons of nickel. Once the second phase is completed, the group expects its total nickel supply rights to reach about 65,000 metric tons.

The group also plans to increase the BNSI smelter’s annual production capacity from the originally planned 66,000 metric tons to 90,000 metric tons. EcoPro said that would be enough nickel for batteries used in about 2 million electric vehicles.

The investment is part of EcoPro’s effort to secure raw materials directly and reduce the cost of nickel-rich cathode materials used in nickel-cobalt-manganese batteries.

EcoPro said it intends to establish an integrated supply chain covering nickel, precursors and cathode materials. The company said the structure is designed to meet U.S. requirements limiting reliance on prohibited foreign entities in clean-energy supply chains. U.S. tax rules restrict access to certain clean-energy credits when components or critical minerals receive material assistance from such entities.

EcoPro expects greater control over raw-material procurement to improve its cost competitiveness and strengthen its ability to win orders from global battery-cell manufacturers and automakers.

EcoPro BM will finance the investments through a 1.2 trillion won, or about $774 million, rights offering. Its board approved the issuance of 9,900,990 new common shares Tuesday.

Of the proceeds, 915 billion won, or about $590 million, will be used to acquire the BNSI stake and complete remaining investments in EcoPro BM’s Hungarian subsidiary.

An additional 135 billion won, or about $87 million, will be used as operating capital, including purchases of raw materials. The remaining 150 billion won, or about $97 million, will finance production facilities.

EcoPro, the group’s holding company, plans to subscribe for more than 120% of the shares allocated to it. The company said the decision demonstrated confidence in the Indonesian mineral business and a commitment to minimizing concerns about the dilution of shareholder value.

“This rights offering is a strategic decision to establish an early position in the global nickel market and improve our competitiveness in nickel-cobalt-manganese cathode materials,” EcoPro BM Chief Executive Officer Choi Moon-ho said.

“By combining EcoPro’s high-nickel technology with a decisive cost advantage, we will work to secure leadership in the global market for nickel-based batteries,” Choi said. EcoPro BM’s official English-language materials identify its chief executive as Choi Moon-ho.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260630010010768

Plan includes more than 5 billion pounds for drones and autonomous systems over four years, Ministry of Defence says.

Outgoing Prime Minister Keir Starmer has announced that Britain will spend almost 300 billion pounds ($397bn) over the next four years to modernise its armed forces amid rising threats.

Starmer, expected to leave office next month after losing the support of Labour MPs, announced on Tuesday that the overall defence budget would increase by 15 billion pounds ($20bn) over the next four years to almost 300 billion pounds as he launched his long-awaited defence investment plan.

“Last year I made the decision in the national interest to reprioritise aid spending towards defence and achieved the biggest uplift in defence spending since the end of the Cold War,” Starmer said.

“That was the right choice because the world has changed. National security is economic security.

“Today we uplift defence spending further – an additional 15 billion pounds worth of funding – by … reprioritising spending across government.”

The plan includes more than 5 billion pounds ($6.6bn) for drones and autonomous systems over the next four years, the Ministry of Defence said in a news release.

The announcement followed months of wrangling within Starmer’s Labour government over the resources required to modernise the United Kingdom’s armed forces in the face of rising threats, including from Russia.

Two defence ministers quit this month in a row over the spending proposals, including Defence Secretary John Healey, who said the plans risked making Britain “less safe”.

Starmer’s pledge came as United States President Donald Trump has repeatedly urged NATO allies to spend more on defence and become less reliant on Washington for security.

Starmer will take the plan, which foresees spending nearly 80 billion pounds ($105.7bn) a year by 2029, to Ankara for a NATO summit on July 7-8. He wants to signal Britain is on track to spend 3.5 percent of its gross domestic product on defence by 2035.

With likely successor Andy Burnham due to take power as early as July 20, Starmer acknowledged new governments could “build” on his blueprint.

Critics said the plan, delayed for more than nine months, was too little, too late.

Former Walt Disney Co. Chief Executive Bob Iger and Thrive Capital founder Joshua Kushner have hired investment bankers and discussed making a bid for the National Basketball Assn. expansion team in Las Vegas, according to people familiar with their plans.

The bid would be for a majority investment in the team, according to the people, who asked to not be identified because the discussions are private. The NBA’s board of governors approved the exploration of a potential franchise expansion in Las Vegas and Seattle in March.

Iger and Kushner are discussing making the bid through Thrive Eternal, a company set up by Kushner’s firm to invest in iconic brands and cultural assets. The company operates as a holding company, structured to raise new capital and make investments into businesses without a set exit timeline. Iger is involved with Thrive as an advisor.

It’s unclear what the size of the bid and the valuation of the franchise would be. Representatives for Thrive Capital and Iger declined to comment.

Iger, who took over as CEO of Disney from 2005 to 2020 and then again from 2022 to March of this year, had a tenure marked by acquiring marquee entertainment franchises and expanding them, including Pixar, Marvel Entertainment, Lucasfilm and 21st Century Fox. The executive previously bought a controlling stake in Angel City Football Club, a women’s soccer team, with his wife, Willow Bay. A big basketball fan, he’s had a lot of experience with the NBA through Disney’s ESPN sports networks.

Kushner, meanwhile, has been building an investment portfolio of tech startups for decades, from investing early into OpenAI and Instagram, and working on dozens of incubations through his venture firm, Thrive Capital. The venture firm has total assets under management of more than $50 billion, according to a regulatory filing. Earlier this year, the firm raised more than $10 billion for its largest fund ever. The NBA discussions show the latest iteration in how Thrive is expanding beyond its roots of investing in technology startups, into also influencing culture through entertainment and sports.

Announced in April, Thrive Eternal, which operates a permanent capital vehicle, raised its initial capital from existing Thrive investors. “These are assets with qualities that cannot be replicated by technology,” Kushner said in a social media post. “In a world shaped by abundant intelligence where creation scales and distribution fragments, we believe they will matter even more.”

Thrive Eternal’s first investment, though not a controlling stake, was backing a Major League Baseball team, the San Francisco Giants. The capital of that deal is set to go toward the Giants’ Oracle Park and its surrounding real estate, according to a person familiar with the matter, Bloomberg previously reported.

Mascarenhas writes for Bloomberg.

In its Annual Economic Report, published on Sunday, the Bank for International Settlements (BIS), known as the central bank for central banks, warned that the enormous spending on AI is accumulating financial vulnerabilities that could amplify any future shock and spread from markets into the wider economy.

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Presenting the findings, BIS general manager Pablo Hernández de Cos said the message was one of “urgency”, with policymakers urged to act before any reversal makes the eventual adjustment more painful.

At the core of the warning is the scale of the spending, despite massive investment having supported global growth over the past year.

The five largest “hyperscalers”, the technology giants racing to build AI infrastructure, are on track to commit more than $1 trillion (€878bn) to AI-related investment across 2025 and 2026, a pace that is outstripping their earnings and free cash flow and pushing some to borrow heavily to keep up.

The BIS suggests this race is fuelled by a belief that only a handful of dominant players will ultimately prevail, encouraging firms to pour money into projects whose returns remain deeply uncertain.

Echoes of past manias

The report sets today’s AI boom against a long historical lineage, from the canal mania of the 1830s and Britain’s railway mania of the 1840s to the electrification of the 1920s and the dotcom bubble.

Each began with a genuine technological breakthrough that attracted more capital than commercial returns could justify, the BIS notes, with each episode ending “with an eventual reversal in investment, inducing economy-wide recessions”.

Compounding the danger are stretched share prices and opaque financing.

The BIS highlights the spread of “circular financing”, in which chipmakers and cloud giants take equity stakes in AI labs that then commit to buying their chips and computing power, effectively recycling money back to the original investors as revenue.

Much of the funding now flows through hedge funds and private credit vehicles that face lighter scrutiny than banks.

According to Zhang Tao, the BIS chief representative for Asia and the Pacific, that reliance on non-bank channels means an AI downturn could unwind into a sharper, faster crash than a traditional banking crisis.

The hidden costs of data centres

Beyond financial markets, critics argue the true cost of the AI build-out is being obscured in plain sight.

A central concern, examined by the Wall Street Journal, is how the technology giants account for their data centres.

By assuming the expensive equipment inside them will stay useful for longer, firms can spread its cost over more years, lowering the depreciation charged against profits in any given period and making earnings look healthier than the underlying cash burn implies.

However, the specialist chips at the heart of these facilities may become obsolete far faster than those extended schedules assume, leaving a gap between reported profits and economic reality, as well as a balance sheet more exposed than it appears should demand disappoint or a sizable need to replace hardware arise.

The physical scale is staggering.

Columbia University economist Stijn Van Nieuwerburgh estimates the build-out could cost in the region of $8 trillion (€7tn) over the next six years, financed in part through the kind of off-balance-sheet arrangements the BIS flagged.

The costs are also no longer confined to corporate accounts.

Some economists now warn of a so-called “third wave” of inflation, after the pandemic and tariffs, driven this time by the AI build-out. As chip manufacturers prioritise high-margin parts for AI servers, the resulting squeeze on memory and storage has rippled out to consumer electronics.

For example, Apple raised prices on its MacBooks, iPads and other devices last week, citing an “extraordinary surge in demand for memory and storage” and saying it had “never seen a component price increase this much, this quickly”.

The company’s shares fell around 6%, their worst day in over a year, as Microsoft, Nintendo and Sony have also made similar moves.

Beyond hidden costs and inflationary pressures, where the strain may spread furthest is raw power.

Goldman Sachs expects data centres to account for nearly half of the growth in US electricity demand by 2030, with consumer power prices forecast to rise around 6% a year through 2026 and 2027.

The BIS itself notes that the build-out’s hunger for electricity is already pressuring prices and input costs, with potential spillovers to inflation, though it stresses, as do many economists, that AI could yet prove disinflationary if its promised productivity gains eventually arrive.

South Korea plans to develop a new semiconductor production base in the country’s southwestern region through 800 trillion won (US$517.9 billion) in corporate investments that will create four memory chip fabrication plants, Industry Minister Kim Jung-kwan said Monday.

Kim unveiled the investment plan to transform the Gwangju and Jeolla regions into the nation’s second major semiconductor cluster, alongside the existing hub in the Seoul metropolitan area, during a national investment briefing chaired by President Lee Jae Myung at Cheong Wa Dae.

“Relying on a single production base in the Seoul metropolitan area is no longer sufficient to meet surging semiconductor demand,” Kim said, noting that constraints on power and water resources limit further expansion under existing plans.

The semiconductor investment is part of the government’s “three mega projects” initiative, which calls for large-scale investments by chip giants Samsung Electronics Co. and SK hynix Inc., as well as other companies, in semiconductors, physical artificial intelligence (AI) and AI data centers.

Kim said the Chungcheong region will be developed into an advanced semiconductor packaging hub through 81 trillion won in investment to meet growing packaging demand as chip production expands, while the Daegu and North Gyeongsang regions will be fostered as innovation hubs for semiconductor materials, components and equipment.

He added that the government will help companies accelerate semiconductor investment by bringing forward the construction schedule for new fabrication plants by as much as 12 years, from the mid-to-late 2040s to the mid-2030s.

To support the expansion, the government vowed to streamline permits and construction procedures while investing in critical infrastructure, including electricity and industrial water supplies.

At the meeting, attended by Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, Kim outlined a government-industry plan to invest 30 trillion won over the next 15 years to support the entire semiconductor value chain, from research and development and chip design to testing and manufacturing.

The ambitious industrial blueprint is aimed at transforming the country from a global manufacturing powerhouse into a leader in the artificial intelligence era, anchoring its strategy on semiconductors, AI infrastructure and physical AI.

For the robotics sector, Kim said the government will foster an AI-powered robotics industry to strengthen South Korea’s manufacturing competitiveness in the intensifying global competition.

Kim warned that China has already begun mass-producing humanoid robots through regional manufacturing hubs, underscoring the need for South Korea to accelerate the commercialization and mass production of its own humanoid robots.

“We must accelerate the foundation for mass production,” Kim said, adding that the government plans to create early domestic demand by procuring humanoid robots for education, defense and disaster response.

The initiative aims to raise South Korea’s share of the global humanoid robot market from just 1 percent last year to 20 percent over the long term.

As the third pillar of the strategy, Minister of Science and ICT Bae Kyung-hoon outlined a plan to expand the nation’s AI data center infrastructure, emphasizing that ample data is important for South Korea to secure a leading position in the global physical AI race.

“The next three years will be the golden time to become No. 1 in the area of physical AI,” Bae said. “The government will lead the physical AI sector, by designating it as a national strategic industry.”

Under the plan, an initial investment of 550 trillion won will be spent to build 8.4 gigawatts (GW) of AI data centers by 2029. The ministry will gradually expand the infrastructure by 10 GW until 2035, Bae said.

To support the initiative, the government pledged to ensure adequate supplies of electricity and industrial water, and strengthen power infrastructure around existing semiconductor clusters.

Once the data infrastructure is in place, the science ministry plans to develop a general-purpose foundation model for physical AI in the next three years, based on a world model, or AI tools that understand the dynamics of the real world.

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.

South Korean president frames the push as a race against time to secure the country’s domination in AI boom.

South Korea has laid out a sweeping industrial strategy focused on semiconductor chips and artificial intelligence projects as President Lee Jae Myung pledges to cement overwhelming industry leadership with investments of hundreds of billions of dollars over several years.

Flanked by the heads of the world’s two biggest memory chipmakers, Lee cast the initiative on Monday as a “great leap forward” centred on the “triple axis” of semiconductors, physical AI and data centres.

“We must secure the core elements of AI faster than any other country,” the president said in a televised address.

The world’s two largest memory chipmakers, Samsung Electronics and SK Hynix, will invest 800 trillion won ($518bn) with suppliers to build two new chip fabrication sites each in South Korea’s southwest, Industry Minister Kim Jung-kwan said.

Lee said the country’s southwestern city of Gwangju and South Jeolla province will also invest 5 trillion to 20 trillion won ($3.2bn to $13bn) in the projects. Kim said a further 81 trillion won ($52.5bn) is expected to be invested for a chip-packaging cluster in the Chungcheong area near Seoul.

The government also unveiled plans to build AI data centres in the region, backed by 550 trillion won ($356bn) in investments from the SK Group, GS Group and Naver.

“By 2035, an additional 10-gigawatt AI data centre will be built with a total investment exceeding 18.4 gigawatts and 1,000 trillion won,” or $648bn, Science Minister Bae Kyung-hoon announced.

The announcement marks the government’s boldest push yet to align South Korea’s AI and chip ambitions with Lee’s pledge to narrow regional disparities and revive economies beyond the Seoul metropolitan area.

The opposition has criticised the plan, arguing that his government’s decision to locate a second semiconductor cluster in Honam, the traditional electoral stronghold of his liberal Democratic Party, is driven more by regional politics than by industrial logic.

They have accused the government of pressuring memory chipmakers to invest in the region to bolster political support rather than allowing companies to choose the most commercially viable locations.

As part of the overall initiative, the southwest would be the home of new, large chip production clusters, Lee said, in part to use the rich power resources yet untapped there.

The president defended the proposed southwestern chip hub in a series of X posts over the weekend, rejecting criticism that it favours a region where 85 percent of voters backed him in last year’s presidential election.

June 25 (Asia Today) — South Korea launched a policy-finance framework Thursday to support $150 billion in shipbuilding cooperation with the United States, seeking to share early-stage investment risks with domestic companies expanding into the U.S. market.

The Korea-U.S. Strategic Investment Corporation, four state-backed financial institutions and three major South Korean shipbuilders signed a memorandum of understanding at the Export-Import Bank of Korea headquarters in Seoul.

The agreement is the first institutional step toward implementing the $150 billion shipbuilding cooperation package included in a bilateral strategic investment memorandum signed in November 2025.

The participating financial institutions are the Export-Import Bank of Korea, Korea Development Bank, Korea Trade Insurance Corp. and Korea Ocean Business Corp.

The three shipbuilders are HD Hyundai Heavy Industries, Samsung Heavy Industries and Hanwha Ocean.

Under the agreement, the participants will establish a Korea-U.S. Shipbuilding Cooperation Investment Council to identify U.S. investment projects, coordinate policy financing and jointly monitor their implementation.

The Export-Import Bank of Korea will serve as the council’s secretariat, coordinating communication among the institutions and overseeing the progress of individual projects.

South Korean Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol said shipbuilding cooperation is one of the two main pillars of strategic investment between South Korea and the United States.

Koo urged the investment corporation and policy lenders to develop financing measures that can provide companies with sufficient funding when it is needed.

“The government and policy-finance institutions must actively seek ways to share the risks and uncertainty of initial investments that individual companies cannot bear alone,” Koo said.

He said the initiative should help South Korean shipbuilders support the rebuilding of the U.S. shipbuilding industry while creating new contracts and markets across South Korea’s domestic shipbuilding supply chain.

The benefits should extend beyond large shipbuilders to small and midsize shipyards and marine equipment suppliers, he said.

“We must create a path for small and midsize shipbuilders and equipment suppliers to participate together as Team Korea,” Koo said.

The government plans to use the council to develop financing for investments in U.S. shipyards, naval vessel construction, maintenance, repair and overhaul services and commercial shipbuilding.

The policy-finance structure is intended to help companies manage the large capital requirements and financial risks associated with entering the U.S. market.

Financial Services Commission Vice Chairman Kwon Dae-young described the initiative as an opportunity for South Korea’s shipbuilding industry to demonstrate its capabilities in the global market.

“We will actively support the necessary financing through close cooperation among the newly established Korea-U.S. Strategic Investment Corporation, policy-finance institutions and private financial companies,” Kwon said.

Park Dong-il, deputy minister for industrial policy at the Ministry of Trade, Industry and Resources, said the Make American Shipbuilding Great Again initiative, or MASGA, represents the first strategic overseas expansion project in the history of South Korea’s shipbuilding industry.

Park said encouraging signs were emerging in the United States, including potential orders for South Korean companies.

He called on policy lenders to coordinate closely so shipbuilders can enter the U.S. market without delays.

“The signing ceremony is expected to provide initial momentum for the MASGA project and create a new opportunity for South Korea’s shipbuilding industry to advance,” Park said.

Shipbuilding companies also pledged to identify commercially viable projects with government financial support.

HD Hyundai Heavy Industries CEO Lee Sang-kyun said producing tangible results from the bilateral cooperation was the most important objective.

“This cooperation should develop into a system that simultaneously supports the growth of South Korea’s shipbuilding industry and the rebuilding of the U.S. shipbuilding base,” Lee said.

South Korean shipbuilders will identify investment opportunities that offer profitability and can be carried out effectively using their advanced technology, he said.

Lee also urged the government to prepare a broad range of support measures to help create a turning point in bilateral shipbuilding cooperation.

The government said it will use the agreement to begin full cooperation among the investment corporation, policy-finance institutions and shipbuilders.

It also plans to expand the Team Korea framework so small and midsize shipyards and marine equipment suppliers can participate in projects entering the U.S. market.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260625010008910

Sony Pictures will invest $100 million and take a minority stake in virtual reality venue operator Cosm, as the studio continues to build a business in communal experiences.

As part of the investment, Sony Pictures Chief Executive Ravi Ahuja will also join Cosm’s board of directors, the studio said Wednesday. The size of Sony’s minority stake was not disclosed.

The El Segundo-based Cosm currently operates three venues — one at Hollywood Park in Inglewood, and the others in Dallas and Atlanta. The company plans to open additional venues in Detroit and Cleveland.

Cosm bills itself as a “shared reality venue,” and its facilities center around a massive, wraparound screen that is intended to envelop viewers with additional digital effects. The company has largely focused on sports, though it has also shown Cirque du Soleil shows and done several collaborations with Warner Bros., including recent screenings of 2001’s “Harry Potter and the Sorcerer’s Stone” in honor of the film’s 25th anniversary.

“Cosm sits at the intersection of several trends shaping the future of entertainment,” Ahuja said in a statement. “We’ve followed Cosm since before launch and have been impressed with the quality of the experience and the enthusiasm it’s generating with audiences.”

The investment is Sony’s latest venture into experiential entertainment. In 2024, the Culver City-based studio acquired dine-in theater chain Alamo Drafthouse Cinema.

June 24 (UPI) — Investment from the United States in Latin America and the Caribbean fell 11% in 2025, although the country remained the region’s leading source of foreign direct investment, the Economic Commission for Latin America and the Caribbean, or ECLAC, reported.

The organization presented its annual report, Foreign Direct Investment in Latin America and the Caribbean 2026: Navigating the New Global Context, in Santiago, Chile, on Tuesday. The report showed that the region received $194.233 billion in foreign direct investment in 2025, up 1.7% from the previous year.

ECLAC attributed the modest growth to an international environment marked by geopolitical tensions, technological rivalry among major powers and changes in U.S. trade policy.

The United States accounted for 35% of foreign investment with an identifiable origin entering the region, while Europe represented 32%.

ECLAC said the decline in U.S. investment flows and the increase in European investment significantly narrowed the gap between the two players.

The organization warned that recent changes in U.S. tariff policy could affect Latin American countries unevenly depending on their productive structures and their level of integration into regional value chains.

“In the current global context of weaponized interdependence, it is essential to understand the relationship between trade and foreign direct investment in order to design policies that allow us to advance toward more productive, inclusive and sustainable development,” ECLAC Executive Secretary José Manuel Salazar-Xirinachs said.

During the presentation of the report, Salazar-Xirinachs also said the world had moved from a period in which economic interdependence was viewed as a source of efficiency and even a guarantee of peace to one in which it is increasingly perceived as a source of vulnerability, according to statements reported by Xinhua.

Brazil remained the region’s leading destination for foreign investment, attracting $77.676 billion, equivalent to 40% of the regional total. Mexico received $43.221 billion, or 22% of the total, although it recorded a year-over-year decline. Together, the two countries accounted for 62% of all foreign investment received by Latin America and the Caribbean in 2025, according to ECLAC.

They were followed by Chile with 7% of regional flows, Peru and Colombia with 6% each, Guyana with 5%, and Costa Rica and Dominican Republic with 3%.

The sectoral composition also showed changes. Services attracted 53% of foreign investment received by the region and increased 19.5% from the previous year. Natural resources rose 7% and accounted for 16% of the total, while manufacturing declined 17.2% and represented 31% of investment flows.

The report also showed signs of caution among investors. During 2025, 1,326 new investment projects were announced with a combined value of $114.1 billion, a decline of 10.2% in the number of projects and 34.3% in value compared with 2024.

In response to this scenario, ECLAC recommended diversifying export markets and sources of investment, strengthening coordination between trade and investment policies, and expanding regional cooperation to reduce dependence on individual markets and increase economic resilience.

Published on 24/06/2026 – 12:44 GMT+2•Updated
13:06

One of Europe’s largest military equipment producers, KNDS, rolled out long-awaited details of its initial public offering (IPO), aiming for a dual listing in Paris and Frankfurt in the coming weeks.

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The IPO could value KNDS, the maker of Leopard and Leclerc tanks, at between €12bn and €15bn, according to the Financial Times, potentially making it one of Europe’s largest defence listings in recent years.

The listing comes at a time when European military budgets are surging, driven by the war in Ukraine and doubts over the reliability of the US as a security guarantor.

The company declined to comment on the precise date, but CEO Jean-Paul Alary told reporters the offering was expected within weeks.

According to Alary, the move comes as the continent enters what he called a new era of defence and security, with armed forces modernising rapidly and rebuilding the land-warfare capabilities run down during decades of lower spending.

According to Reuters, the firm has now formally launched the IPO process, which is expected to take place in mid-July.

The announcement comes days after Germany unveiled plans to acquire a 40% stake in KNDS, saying the move would secure long-term influence over a company it considers strategically important to European security and defence.

France, which currently owns 50% of KNDS, is expected to reduce its stake to 40%.

The remaining 20% of the company is set to be floated on the stock market, with France and Germany each retaining 40% stakes following the transaction.

According to the Financial Times, the shares are expected to be marketed primarily to institutional investors amid strong demand for European defence stocks.

Once the listing is completed, KNDS shares will begin trading on Euronext Paris and the Frankfurt Stock Exchange, giving investors direct exposure to one of Europe’s largest land-defence manufacturers.

KNDS was created in 2015 through the merger of Germany’s Krauss-Maffei Wegmann and France’s Nexter.

A growing headache for Rheinmetall

The rapid emergence of the rival adds to the pressure on Rheinmetall, Europe’s largest ammunition maker and KNDS’s main competitor in subsectors such as land systems.

The Düsseldorf-based group, whose shares have shed roughly a quarter of their value this year, had itself reportedly hoped to buy into KNDS, only to be shut out by the governments’ intervention.

To make matters worse, Berlin announced it would scrap Rheinmetall’s multi-billion-euro F126 frigate programme, which would have been Germany’s largest warship order since the Second World War, in favour of smaller vessels from rival builder TKMS.

Rheinmetall, which had been poised to take over the project, fell 13% in early trading on Wednesday due to the news.

The squeeze also coincides with regulatory scrutiny at home.

Germany’s Monopolies Commission has warned that defence procurement is concentrated among a small number of suppliers, potentially weakening competition and driving up costs.

Calling for reforms to procurement rules, commission chairman Tomaso Duso said competition was “the fundamental pillar of Europe’s economic order” and should play a greater role in the defence sector.

A listed KNDS will give investors a direct yardstick against which to measure Rheinmetall’s order momentum and margins.

Additional sources • AFP

Published on
22/06/2026 – 13:32 GMT+2

The German government announced on Monday that it intends to acquire 40% of the defence contractor KNDS, a move designed to bolster European arms production in partnership with its NATO and EU ally France.

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The decision deepens state involvement in a company whose hardware has become central to Europe’s rearmament efforts.

KNDS was created in 2015 through the merger of Germany’s Krauss-Maffei Wegmann and France’s Nexter. The French state holds a 50% stake, while the other half belongs to the German family behind Krauss-Maffei Wegmann, whose planned exit has opened the door for Berlin to step in.

Based in Amsterdam, the group reported revenue of €4.4 billion last year and employs more than 11,000 people.

The timing reflects a broader scramble across Europe to expand military spending and manufacturing capacity, as governments weigh the continued threat from Russia’s war in Ukraine against growing doubts about the reliability of the US as a security guarantor.

Berlin framed the investment in explicitly strategic terms, saying it would secure lasting influence over a business it considers vital to European security and defence.

The German government added that the stake would reinforce domestic industrial output, technological independence and the safeguarding of key national security interests and technologies.

In a joint statement, Germany and France said they had agreed on the future strategy and governance of KNDS, which they intend to co-own through arrangements aimed at giving both countries equal shareholdings.

Clearing the path to a stock market listing

Neither government specified a timeline or the final level at which their holdings would settle, but they stated the agreement opens the way for a possible flotation of KNDS in the near future.

According to people familiar with the matter cited by the Associated Press, the two states plan to trim their stakes to around 30% within two to three years of any listing, while retaining equal voting rights regardless of the size of each holding.

The two governments cast the deal as a joint commitment to building up Europe’s defence industry and armed forces, and to securing the continent’s strategic independence well into the future.

State participation in the firm was first floated by German Defence Minister Boris Pistorius in 2025 as a way to protect strategic expertise and jobs.

Beyond its tanks, KNDS also manufactures the Puma infantry fighting vehicle and the Boxer and Dingo armoured personnel carriers, equipment which is in growing demand as European armies replenish stocks depleted by years of underinvestment and donations to Ukraine’s defence.

Additional sources • AP