Author: Jack Mulligan

Global investment slowdown raises alarms for development Foreign direct investment (FDI) into developing economies plunged to $435 billion in 2023, its lowest level since 2005, according to a World Bank report released Monday. Advanced economies fared even worse, attracting only $336 billion — a figure not seen since 1996. The World Bank blamed the sharp decline on increasing trade barriers, economic fragmentation, and growing macroeconomic and geopolitical risks. These trends are threatening the ability of emerging economies to close infrastructure gaps and advance critical development goals. Policy barriers and recession fears hinder investment “The sharp drop in FDI to developing…

OpenAI has been awarded a $200 million contract by the U.S. Defense Department to develop artificial intelligence tools for national security, the Pentagon announced Monday. The contract underscores the growing role of AI technologies in U.S. defense operations and OpenAI’s expanding government partnerships. AI Tools for National Security According to the Pentagon, OpenAI will work on developing “prototype frontier AI capabilities” to address critical national security needs across both warfighting and enterprise domains. The contract’s work will primarily be conducted in and around Washington, D.C., with completion expected by July 2026. OpenAI’s Rapid Business Growth The contract comes as OpenAI…

Brazilian businessman Nelson Tanure has retained Rothschild & Co. to assist in bank negotiations crucial to his bid to acquire a controlling stake in Braskem, Latin America’s largest petrochemical company. The move signals progress in Tanure’s efforts to finalize a complex acquisition process involving multiple stakeholders. Negotiations for Controlling Stake in Braskem In late May, Tanure submitted a proposal to purchase conglomerate Novonor’s controlling interest in Braskem. The offer led to exclusive discussions between Tanure and Novonor as they evaluate the terms of a potential agreement. Novonor currently holds a significant share in Braskem, but many of these shares are…

Mortgage rates declined modestly this week but remain close to 7%, according to the latest data from Freddie Mac. While rate stability offers some relief, soaring home prices are keeping many buyers on the sidelines. Industry experts suggest the market may be nearing a shift as growing inventory meets waning demand. Mortgage Rates See Minor Decline Freddie Mac’s Primary Mortgage Market Survey reported Thursday that the average rate on the benchmark 30-year fixed mortgage edged down to 6.84% from last week’s 6.85%. One year ago, the 30-year rate stood at 6.95%. The 15-year fixed mortgage rate also slipped slightly to…

The U.S. dollar rallied sharply on Friday after reaching a three-year low the previous day, as escalating military conflict between Israel and Iran pushed investors into safe-haven assets. The sudden surge in geopolitical tensions drove significant market volatility, with sharp moves in currencies, oil, gold, and global equities. Safe-Haven Demand Lifts the Dollar The dollar index, which measures the greenback against a basket of major currencies, rose 0.3% to 98.19. The dollar also gained 0.1% against the Swiss franc and 0.4% against the Japanese yen, two other traditional safe-haven assets. ING strategists noted that the Israeli strikes provided “the oversold…

China Dominates Critical Minerals Supply Chain China’s control over critical minerals like rare earths has become a significant leverage point in U.S.-China trade negotiations. The country has spent decades establishing itself as the world’s primary industrial hub for mining and processing materials essential for industries such as electronics, advanced manufacturing, defense, and healthcare. Trade Impact and Tariff Controls In recent years, China has imposed export controls on key minerals, requiring licenses for shipments abroad. These controls have led to supply chain disruptions, particularly in the U.S. President Donald Trump has indicated that China will ease restrictions on rare earth minerals…

Voyager Technologies IPO Details Voyager Technologies, a leading provider of space and defense technology solutions, raised $382.8 million in its U.S. initial public offering (IPO). The company sold approximately 12.35 million shares at $31 per share, exceeding its targeted price range of $26 to $29. This marks a significant milestone as the U.S. IPO market gains momentum after a period of volatility due to tariff concerns. Background and Market Context The Denver-based company’s IPO comes amidst growing global demand for military and defense technology, spurred by increased defense spending. The rise in military investments aligns with President Donald Trump’s administration’s…

Disney Acquires NBCUniversal’s Stake in Hulu Disney will pay Comcast’s NBCUniversal nearly $439 million for its stake in Hulu, taking full control of the streaming service. This acquisition marks the end of a prolonged appraisal process that began a few years ago. Details of the Deal and Appraisal Process In November 2023, Disney confirmed its acquisition of a 33% stake in Hulu from Comcast for a minimum of $8.6 billion. This amount reflected Hulu’s guaranteed floor value of $27.5 billion, as outlined in a regulatory filing. The deal closes the chapter on a process that has been underway for quite…

Overview of Mexico’s Inflation Surge Mexico’s inflation rate accelerated in May, surpassing the upper-end of the central bank’s target range. Official data from the national statistics agency INEGI showed that consumer prices rose by 4.42% year-on-year, higher than the expected 4.38% and up from 3.93% in April. This unexpected increase has created an uncertain landscape for borrowing costs in Latin America’s second-largest economy. Banxico’s Inflation Target and Monetary Policy Outlook Mexico’s central bank, Banxico, has an inflation target of 3% plus or minus one percentage point. The recent inflation uptick has led to diverging opinions among analysts regarding the central…

China is intensifying its efforts to ensure a stable electricity supply while supporting the growth of private enterprises, according to an official from the National Energy Administration (NEA) on Thursday. Supporting Private Enterprises At a press conference held by the State Council Information Office, Song Hongkun, deputy head of the NEA, outlined new measures designed to support private enterprises in electricity generation and usage. These initiatives aim to create a favorable business environment, which is seen as essential for the healthy development of China’s private economy. The NEA will focus on reducing electricity costs for businesses and providing targeted services…