selloff

Heading into the final weekend of this summer’s World Cup, The Guardian reported that support for FIFA president Gianni Infantino had climbed to record levels. More than 200 of FIFA’s 211 member associations formally endorsed Infantino’s bid for a fourth term as head of world soccer’s governing body, the paper reported, making next March’s vote more of a coronation than an election.

Two weeks later, that support disappeared. Not only is Infantino’s reelection campaign in tatters, but there’s a chance he won’t survive until the spring, with British Prime Minister Andy Burnham and Javier Tebas, president of Spain’s soccer association, calling for his resignation and close confidants such as Carlos Cordeiro, the former president of U.S. Soccer, and Kevin Lamour, FIFA’s chief operating officer, publicly breaking with their boss.

At the center of that reversal was a closely guarded scheme to raise $4.2 billion by selling a 20% stake in the World Cup to private investors, who would be given influence in planning and executing future events, including broadcasting and commercial deals tied to the tournament.

In short, Infantino was planning, in secret, to sell shares in the World Cup. And once details began leaking in the media, he was forced Friday to scrap the whole thing, an embarrassing retreat that has left him vulnerable just two weeks after he had seemingly reached the heights of his third term as FIFA president.

Infantino’s idea, called the FIFA Forward Enterprise, was intended to turn the World Cup, FIFA’s milk cow, into a golden calf. But to do so, he needed the approval of at least 106 of FIFA’s 211 member countries, so he promised countries that backed him that they would receive $20 million each by mid-September. Those who declined would get just a fraction of that.

Infantino was certain the piles of cash would buy the acquiescence — or at least the silence — of enough members for the plan to go through. Instead, the bribe blew up in his face and FIFA issued a statement late Friday, under Infantino’s name, that basically said “never mind.”

“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,” the statement read.

The question now becomes whether Infantino’s presidency will proceed.

He wouldn’t be the first FIFA president to be grievously wounded by unbridled ambition, but the speed and depth of his fall is staggering. The 2026 World Cup was, by nearly every measure, wildly successful. The largest and most complex sporting event in history the tournament, hosted by the U.S., Mexico and Canada, exceeded expectations, drawing more than 6.8 million live fans and a global TV audience of more than six billion. The four-year World Cup cycle brought FIFA revenues of about $15 billion, making it the first sporting event in history to earn more than $10 billion.

Infantino has never been shy about pushing boundaries despite heading a Swiss-based organization that, its wealth notwithstanding, is officially a nonprofit. Nor was this the first time he tried to bring private equity into the World Cup: In 2018, two years into his first term as FIFA president, he considered a plan to raise $25 billion to fund tournaments, only to cave in the face of massive opposition.

He didn’t give up the idea of squeezing more money out of the World Cup, though.

This summer, he introduced three-minute hydration breaks in the middle of each half — ostentatiously a nod to the heat and humidity, but in reality a ruse that allowed broadcasters to generate millions in additional revenue through TV commercials. FIFA also staged a halftime show for the first time ever during the final, sold VIP tickets priced at more than $1 million each and introduced dynamic pricing for the tournament’s 104 games, driving prices for some seats to four times what fans paid four years ago in Qatar.

That pushed the tournament beyond the reach of many of the sport’s most loyal supporters — and soccer, more than any other sport, belongs to the fans. It’s why teams are called clubs and fans are called supporters.

The World Cup, then, wasn’t Infantino’s to sell. So the pushback to his latest idea was immediate and unsparing.

“Football does not belong to investors,” Burnham said in an Instagram post. “Once you have sold a piece, you have sold out. Football belongs to the fans. It always has, and it always will.”

What really angered stakeholders, however, was Infantino’s brazen move to develop the FFE in secret, only to have its details leak out.

Bernd Neuendorf, president of the German soccer association and a member of the FIFA Council, the group’s most influential body, said he first learned of the FFE by reading about it.

“I was very surprised, and also annoyed, that we had to find out about something like this from the press,” he told a German news outlet last week.

Another self-inflicted wound was Infantino’s decision to launch the project with Thrive Eternal, a venture capital firm founded by Joshua Kushner, the 41-year-old brother of Jared Kushner, President Trump’s son-in-law and a kind of all-purpose White House advisor and negotiator. Thrive Eternal focuses on long-term investments in scarce cultural institutions that technology cannot replace, but it has little relevant experience in managing something as large and complicated as a World Cup.

FIFA president Gianni Infantino, left, and President Trump wave during an award ceremony following Spain’s win over Argentina in the World Cup final July 19.

(David Ramos / Getty Images)

Moreover, the partnership would draw Infantino further into the orbit of Trump, whom the FIFA president has openly courted for years. Infantino, who has been a frequent visitor to the Oval Office and Trump’s Mar-a-Lago estate in Florida, attended the president’s inauguration and accompanied him on visits around the world.

Trump’s relationship to Infantino was questioned when Infantino presented him with the first FIFA Peace Prize last December, then became even more controversial when Trump phoned Infantino three times to lobby to have the red-card suspension of U.S. forward Folarin Balogun overturned ahead of a World Cup elimination game last month.

FIFA eventually cleared Balogun to play, marking just the second time in tournament history a red card ban has been lifted. For some, Infantino’s decision to partner with someone close to Trump on his latest venture was a bridge too far.

“It’s a really bad look for Infantino given the concerns about political interference that were already there after Balogun,” said Steven A. Bank, a professor of business law at UCLA who has written and lectured extensively on the economics of soccer. “Especially with the fund led by Jared Kushner’s brother.”

Once details of Infantino’s secret plan began to leak, UEFA, the confederation that governs European soccer, held an emergency meeting during which all 55 members — including Spain, the reigning men’s and women’s World Cup champion — voted to boycott all FIFA competitions.

“Some things are simply too important to sell. The FIFA World Cup belongs to football. It always will,” UEFA, the largest and most powerful of FIFA’s six continental confederations, said in a statement.

CONCACAF, which oversees soccer in North America, Central America and the Caribbean, said its 41 countries also rejected the plan, an opinion the U.S. Soccer Federation backed in a sparse post on X.

“U.S. Soccer stands with CONCACAF and its members,” it wrote.

The Asian Football Confederation joined in, saying in a statement its 47 members stand “in solidarity with UEFA and CONCACAF in expressing serious concerns over FIFA’s proposal to introduce private investment into FIFA’s flagship competitions.”

When it became obvious Infantino would not get the votes he needed to go forward, he pulled the plug on his plan. But it may not have been so much that the idea was bad as it was the execution.

Soccer is awash with private investors. The biggest clubs are owned by billionaires or sovereign wealth funds and many leagues — including Spain’s La Liga, which Tebas oversees — have sold commercial stakes to private equity firms in much the same way FIFA proposed.

Alan Rothenberg, a former U.S. Soccer president and the driving force behind the 1994 men’s World Cup and 1999 women’s World Cup, among the most successful tournaments in history, said the idea of selling a private equity stake in the World Cup isn’t a bad idea. But the way Infantino tried to implement his plan led it to failure.

“What is proposed is not that revolutionary,” Rothenberg said. “There have been private equity investors in MLS, in one of the subsidiaries of the NFL, in F1.

“But I think the combination of everything has doomed it. It does raise the possibility that Infantino, he’s finally become Icarus and gotten too close to the sun. It actually may doom him politically.”

Others including Cordeiro, a former vice chairman at Goldman Sachs, questioned the need to bring in outside investors.

“FIFA already has access to extraordinary financial resources. The organization sits on billions of dollars in reserves and no debt,” Cordeiro pointed out in his resignation letter. “If member associations believe additional investment is needed to develop the game, FIFA already has the financial capacity to provide that support from its existing resources.”

Infantino has flaunted consensus before without significant consequence, cozying up to autocrats while overseeing the 2018 World Cup in Vladimir Putin’s Russia and the 2022 tournament in Qatar before being accused of awarding the 2034 tournament to Saudi Arabia in a rigged vote.

This time, however, the stakeholders within FIFA were pushed too far by Infantino’s penchant for wielding unilateral power, so they pushed back and the president blinked. Hours before he backed down, an ally of Infantino’s told the Financial Times that he would not bend, seeing the standoff as “a fight to the death.”

Infantino’s presidency might not be dead, but it is surely in critical condition.

Published on
02/07/2026 – 9:39 GMT+2

Most Asian stock markets dropped on Thursday, dragged down by a wave of selling in semiconductor shares, as European bourses made a subdued start and Wall Street looked set to open in the red before the release of key US employment figures.

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The pullback centred on the technology sector, where investors retreated from the chip stocks that have powered much of this year’s rally, amid growing unease that the vast sums Big Tech is spending on AI could leave the market awash with supply.

South Korea’s Kospi bore the worst of it, tumbling around 5% as its heavyweight chipmakers slid. Memory specialist SK Hynix lost close to 8% and Samsung Electronics fell more than 6%.

In Tokyo, the Nikkei 225 shed about 1.5%, with chip-equipment maker Tokyo Electron down around 5.6%, while Taiwan’s Taiex slipped 1.1% as TSMC, the world’s largest contract chipmaker, gave up 1.8%.

The falls followed a rough session for chip stocks on Wall Street this Wednesday, where Micron Technology dropped more than 10% and Intel sank around 9%.

The moves stand in sharp contrast to a stellar year for Asian tech, with the Kospi and the Nikkei still up roughly 85% and 34% respectively in 2026.

On the other hand, Hong Kong’s Hang Seng rose about 0.8%, lifted by an 8.7% jump in electric-vehicle maker BYD after it reported a second straight monthly rise in sales, while India’s Sensex added 0.5%.

In Europe, markets opened flat as both the Euro Stoxx 50 and the broader pan-European Stoxx 600 traded within a 1% range at the start of Thursday’s session.

The UK’s FTSE 100, Germany’s DAX 30, France’s CAC 40 and Spain’s IBEX 35, all traded between 0.1% and 0.3% higher.

Italy’s FTSE MIB led the pack and rose about 0.4%.

Oil extends its slide and US jobs in focus

Crude prices fell again, trading below where they sat before the Iran war began in late February, as hopes grew that supplies through the Strait of Hormuz will steadily recover.

Brent crude, the international standard, eased around 1% to about $70.89 a barrel while WTI, the US benchmark, dropped 3% to roughly $69.

Attention now turns to the US, where stock futures edged lower ahead of the June employment report, brought forward a day because of Friday’s Independence Day.

Economists polled by Dow Jones expect around 115,000 jobs were added last month.

The figure carries extra weight under the new Federal Reserve chair, Kevin Warsh, with investors wary that a strong reading could harden the case for keeping interest rates higher for longer.

According to economists at Capital Economics, demand for AI may keep growing but at a slower pace than many expect, a caution that helped sour sentiment towards the sector.

Additional sources • AP

South Korean stocks plummeted more than 4 percent Wednesday amid escalating tensions between the United States and Iran and a tech slump fueled by concerns over the valuation of stocks related to artificial intelligence (AI). The local currency was trading lower against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 366.11 points, or 4.52 percent, to close at 7,730.82, almost eclipsing most of the over 8 percent surge from the previous day.

At one point, the index fell as low as 7,541.11.

Due to the sharp fall, the Korea Exchange had activated a sell-side sidecar for the index at 1:16 p.m., halting program trading for five minutes.

Trade volume was moderate at 457.5 million shares worth 39 trillion won (US$25.6 billion), with losers outnumbering winners 547 to 343.

Foreigners continued their sell-off for the 23rd consecutive session, dumping a net 2.77 trillion won, while retail investors and institutions purchased local shares worth 4.86 trillion won. Institutions sold 2.27 trillion won.

Market analysts said the KOSPI lost ground as tensions resurfaced in the Middle East after the U.S. struck Iran in response to the shooting down of an American Apache helicopter in the Strait of Hormuz and then Tehran hit back.

The risk-on appetite was also sapped by an overnight tech slide on Wall Street caused by concerns over the valuation of the AI stocks on news that Crusoe Energy Systems, a data center developer, suspended one of its projects upon the request of an unidentified big tech customer.

The tech-heavy Nasdaq composite closed 0.97 percent lower, and the S&P 500 dropped 0.26 percent, while the Dow Jones Industrial Average rose 0.17 percent.

Major tech shares led the market decline, with Broadcom losing 1.12 percent, Apple sliding 3.64 percent, Micron falling 1.4 percent and Nvidia down 0.2 percent.

Investors’ eyes are now on the upcoming release of the U.S. Consumer Price Index (CPI), which could give further clues on the U.S. Federal Reserve’s monetary policy amid bets on a hawkish pivot and the initial public offering of SpaceX later this week.

“The South Korean stock market was weighed down as risk aversion sentiment strengthened ahead of the U.S. CPI and Oracle’s earnings release, once triggering a sell-side sidecar,” Lee Kyoung-min, an analyst at Daishin Securities, said.

Lee said a hot inflation report could further contract the market sentiment, raising concerns over a possible U.S. rate hike.

In Seoul, market top-cap Samsung Electronics slid 6.06 percent to 302,500 won, while its chipmaking rival SK hynix plunged 7.54 percent to 2.05 million won.

AI investment firm SK Square shed 6.78 percent to 1.18 million won, and Samsung Electro-Mechanics shot down 8.38 percent to 1.8 million won.

Samsung Life Insurance dipped 6.36 percent to 368,000 won, and Samsung C&T plummeted 5.01 percent to 407,500 won.

Auto shares were also weak, with Hyundai Motor down 5.79 percent to 602,000 won, and its sister Kia losing 2.8 percent to 159,700 won. Hyundai Mobis dropped 4.2 percent to 570,000 won.

Internet portal operator Naver, which had recently rallied on news on its partnership with Nvidia, nosedived 11.67 percent to 227,000 won. Home appliances maker LG Electronics shot down 9.68 percent to 224,000 won.

Major shipbuilder HD Hyundai Heavy was among the few gainers, jumping 4.74 percent to 641,000 won.

Defense giant Hanwha Aerospace also climbed 1.48 percent to 1.03 million won.

The Korean won was quoted at 1,524.2 won against the U.S. dollar at 3:30 p.m., down 12.1 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys added 2.5 basis points to 3.881 percent, and the return on the benchmark five-year government bonds dropped 3.2 basis points to 4.070 percent.

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As the rally in AI stocks fades, investors were cautious at the open on Friday, with European markets opening to mixed sentiment following steep falls in Asian markets.

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Indices in London and Frankfurt quickly moved into negative territory, with the FTSE 100 dropping nearly 0.4% and the DAX losing 0.3% right after the opening. The Paris CAC 40 and the IBEX 35 in Madrid were both up 0.3%, while Milan’s main index was flat. So was the EURO STOXX 50, a benchmark index of 50 blue-chip companies from the eurozone.

Investors are awaiting the latest US non-farm payrolls report and keeping an eye on developments in the Middle East.

The US job data is important for forecasting what the Fed’s next move could be. Kathleen Brooks, research director at XTB, said in a market note, “There is now a near 40% chance of a rate hike by year-end. We expect financial markets to be extremely sensitive to today’s data,” adding that this will be the first such report with Kevin Warsh as chairman of the Federal Reserve.

In the UK, the latest data from Halifax showed that house prices unexpectedly declined in May. House prices fell 0.1% month on month, but were still up 0.5% year on year, missing expectations for a 1% jump.

Oil markets are awaiting further direction

Oil prices stabilised after falling on Thursday. Brent crude, the international benchmark, was slightly down and traded at $94.73 per barrel at 10:00 CET. It had been trading at about $70 per barrel before the start of the war in late February.

Benchmark US crude was little changed at $92.51 a barrel.

Oil prices remain under pressure as the Strait of Hormuz, a narrow waterway crucial for global oil and natural gas transport, remains effectively closed, and the war-induced energy shock is threatening to slow economic growth and fuel inflation in many countries.

American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalised. Meanwhile, developments in Lebanon have cast doubt on the prospects for a permanent end to the conflict.

On Thursday, the Iran-backed Lebanese militant group Hezbollah rejected the latest ceasefire agreement between the Lebanese and Israeli governments.

“While there are few signs of progress in US-Iran talks, the oil market continues to trade on expectations of an imminent deal that would resume flows through the Strait of Hormuz,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a report.

Asian markets lose steam as AI craze cools

Wall Street rallied on Thursday after falling oil prices and bond yields eased pressure on US stocks. Banks, small-cap companies and other stocks that had previously been left behind by the euphoria around artificial intelligence led the gains.

Banks also helped lead the market, including gains of 5% for Goldman Sachs, 4.7% for Fifth Third Bancorp and 4.4% for U.S. Bancorp.

They helped to more than make up for losses among some AI stocks, which took a sudden back seat after dominating the market. Analysts have been saying AI stocks may have run too high, becoming too expensive, and that the broader US stock market may be set for a slowdown following an unrelenting streak of nine straight winning weeks for the S&P 500, its longest since 2023.

On Wall Street on Thursday, computer chipmaker Broadcom’s shares sank 12.6% after it issued guidance that fell short of investors’ expectations, raising concerns about the wider AI and technology sector.

US memory chip maker Micron Technology dropped 7.7%, and cybersecurity company CrowdStrike Holdings fell 3.8%.

Still, the benchmark S&P 500 climbed 0.4%, and the Dow Jones Industrial Average gained 1.7% to a record high. The tech-heavy Nasdaq Composite edged 0.1% lower.

But in Asia, investors dumped key AI-related shares, with South Korea’s SK Hynix plunging 8.6% and Samsung Electronics shedding 5.4%.

The Kospi dropped 5.1% to 8,199.44. The index has roughly doubled over the past year, lifted by gains in major technology companies.

Japan’s Nikkei 225 slipped 1.3% to 66,573.85, with technology shares leading the decline, even as official data showed that Japan’s real wages rose for the fourth consecutive month. Chip equipment maker Tokyo Electron’s shares fell 7%.

Hong Kong’s Hang Seng declined 1.2% to 24,948.96, while the Shanghai Composite Index fell 0.3% to 4,045.45.

Australia’s S&P/ASX 200 fell 0.7% to 8,623.50.

Taiwan’s Taiex gave up 1.3%, while India’s Sensex was up 0.1%.

In other trading early on Friday, the US dollar fell to 159.96 Japanese yen from 160.03 yen. The euro was trading at $1.1635, up 0.2%. Gold prices were down 0.3%, trading at around $4,490.70.