Spain's Defense Champion to Offer Investors Glimpse Into Plans
Indra Sistemas SA's new executive chairman is set to offer investors a glimpse of his plan to accelerate the company's pivot to defense from technology, part of Spain's broader aspirations to build a national champion.
Angel Escribano, who took over when his predecessor unexpectedly moved to another company last month, will be addressing investors and media to present full-year earnings on Wednesday after European stock markets close. His first major move since taking over was helping steward an agreement to acquire a satellite operator in a bet that Europe needs a homegrown supplier to compete against Elon Musk's SpaceX.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Brazil's top court votes to hold social media platforms accountable for user posts
By Ricardo Brito BRASILIA (Reuters) -Brazil's Supreme Court on Wednesday ruled that social media companies must be held accountable for some types of content published by users on their platforms in the country, but details on the decision have yet to be resolved. Six of the 11 Supreme Court judges voted to hold platforms responsible for third-party content seen as illegal, in a decision that could result in fines against social media companies for not removing some users' posts in the country. The decision could impact the business of platforms including Meta's Facebook and Instagram, as well as TikTok, Elon Musk's X and other internet giants, such as Alphabet's Google, in a market of more than 200 million people. Only one justice so far voted to not change the current law on the matter, which says that the companies can only be found responsible for third-party content on their platforms if the firms do not comply with a legal decision ordering the content removal. Writing for the majority, Justice Gilmar Mendes said current Brazilian law represents "a veil of irresponsibility for digital platforms." "Even if they are informed of the occurrence of crimes on their platforms, they (currently) cannot be held responsible for damages caused by keeping this content online, except in the case of a court order," he said. Asked to comment, Meta sent a 2024 statement where it had said that a decision holding platforms responsible could make them "liable for virtually all types of content even without having been notified." In a statement sent before the vote which gave the court a majority, Google said the current Brazilian law regarding social media can and should be improved, "as long as procedure guarantees and criteria are set to prevent legal uncertainty and the indiscriminate content removal." TikTok and a representative of X in Brazil did not immediately respond to requests for comment. The court did not agree on the scope of the decision, such as what types of content would be considered illegal. The court's head, Luis Roberto Barroso, said he will work with the court members to find a consensus. Four judges still need to vote in the trial, which has been rolling over for months. Votes previously cast can still be changed, although that is not common. The trial is set to resume on Thursday.
San Francisco Chronicle
an hour ago
- San Francisco Chronicle
Nvidia chief calls AI ‘the greatest equalizer' — but warns Europe risks falling behind
PARIS (AP) — Will artificial intelligence save humanity — or destroy it? Lift up the world's poorest — or tighten the grip of a tech elite? Jensen Huang — the global chip tycoon widely predicted to become one of the world's first trillionaires — offered his answer on Wednesday: neither dystopia nor domination. AI, he said, is a tool for liberation. Wearing his signature biker jacket and mobbed by fans for selfies, the Nvidia CEO cut the figure of a tech rockstar as he took the stage at VivaTech in Paris. 'AI is the greatest equalizer of people the world has ever created,' Huang said, kicking off one of Europe's biggest technology industry fairs. Huang's core argument: AI can level the playing field, not tilt it. Critics argue Nvidia's dominance risks concentrating power in the hands of a few. But Huang insists the opposite — that by slashing computing costs and expanding access, 'we're democratizing intelligence' for startups and nations alike. But beyond the sheeny optics, Nvidia used the Paris summit to unveil a wave of infrastructure announcements across Europe, signaling a dramatic expansion of the AI chipmaker's physical and strategic footprint on the continent. In France, the company is deploying 18,000 of its new Blackwell chips with startup Mistral AI. In Germany, it's building an industrial AI cloud to support manufacturers. Similar rollouts are underway in Italy, Spain, Finland and the U.K., including a new AI lab in Britain. Other announcements include a partnership with AI startup Perplexity to bring sovereign AI models to European publishers and telecoms, a new cloud platform with Mistral AI, and work with BMW and Mercedes-Benz to train AI-powered robots for use in auto plants. The announcements underscore how central AI infrastructure has become to global strategy — and how Nvidia, now the world's most valuable chipmaker, is positioning itself as the engine behind it. As the company rolls out ever more powerful systems, critics warn the model risks creating a new kind of 'technological priesthood' — one in which only the wealthiest companies or governments can afford the compute power, energy, and elite engineering talent required to participate. That, they argue, could choke the bottom-up innovation that built the tech industry in the first place. Huang pushed back. 'Through the velocity of our innovation, we democratize,' he said, responding to a question by The Associated Press. 'We lower the cost of access to technology.' As Huang put it, these factories 'reason,' 'plan,' and 'spend a lot of time talking to' themselves, powering everything from ChatGPT to autonomous vehicles and diagnostics. But some critics warn that without guardrails, such all-seeing, self-reinforcing systems could go the way of Skynet in ' The Terminator ' movie — vast intelligence engines that outpace human control. To that, Huang offers a counter-model: layered AI governance by design. 'In the future,' he said, 'the AI that is doing the task is going to be surrounded by 70 or 80 other AIs that are supervising it, observing it, guarding it, ensuring that it doesn't go off the rails.' He likened the moment to a new industrial revolution. Just as electricity transformed the last one, Huang said, AI will power the next — and that means every country needs a national intelligence infrastructure. That's why, he explained, he's been crisscrossing the globe meeting heads of state. 'They all want AI to be part of their infrastructure,' he said. 'They want AI to be a growth manufacturing industry for them.' Europe, long praised for its leadership on digital rights, now finds itself at a crossroads. As Brussels pushes forward with world-first AI regulations, some warn that over-caution could cost the bloc its place in the global race. With the U.S. and China surging ahead and most major AI firms based elsewhere, the risk isn't just falling behind — it's becoming irrelevant. Huang has a different vision: sovereign AI. Not isolation, but autonomy — building national AI systems aligned with local values, independent of foreign tech giants. 'The data belongs to you,' Huang said. 'It belongs to your people, your country... your culture, your history, your common sense.' But fears over AI misuse remain potent — from surveillance and deepfake propaganda to job losses and algorithmic discrimination. Huang doesn't deny the risks. But he insists the technology can be kept in check — by itself. The VivaTech event was part of Huang's broader European tour. He had already appeared at London Tech Week and is scheduled to visit Germany. In Paris, he joined French President Emmanuel Macron and Mistral AI CEO Arthur Mensch to reinforce his message that AI is now a national priority.
CNBC
an hour ago
- CNBC
European defense stocks have soared this year — could a rare earths bottleneck put a lid on the rally?
European defense companies have seen a monumental rise in value this year, as a regional push to ramp up military spending sparks a bull run on the sector. Strategists, analysts and industry leaders spoke to CNBC about the outlook for the industry, which has The industry has seen several stocks more than double in value in just six months but it now faces a shortage of rare earth minerals. Experts were divided on whether the sector has reached its peak as some analysts told CNBC they see more upside ahead, while others said the supply bottleneck could frustrate the sector's progress. Regional defense stocks were in positive territory on Wednesday, with the Stoxx Europe Aerospace and Defense index around 0.6% higher after climbing down from larger gains seen in early trade. Over the course of 2025, the index has gained around 45%. Momentum 'remains firmly in place' Loredana Muharremi, equity analyst at Morningstar, told CNBC on Wednesday that regardless of supply chain constraints, there was still upside ahead for the European defense sector. "While rare earth bottlenecks are a material supply chain risk, we do not believe they are sufficient on their own to trigger a correction in European defense stocks," she said in an email. "Most of the sector's rerating has been driven by structural demand growth tied to multi-year procurement cycles, rising NATO budgets, and renewed national rearmament efforts — momentum that remains firmly in place." However, Loredana noted that rare earths and other critical raw materials are becoming a growing strategic vulnerability. This is of particular concern for high-performance systems such as radar, missiles, precision-guided munitions, and propulsion technologies. Europe sourced almost 90% of its yttrium in 2023 — a rare earth element used in the manufacturing of fighter jets, land vehicles and targeting systems — from China, according to Morningstar. "A prolonged period of import restrictions could begin to affect production schedules," Muharremi said, adding that prospects of diplomatic engagement between China and EU mitigate the likelihood of any severe supply shocks. Wednesday's positive momentum among Europe's defense stocks marks a reversal from a three-day sell-off, which culminated in the index shedding 3% as investors awaited news from high stakes U.S.-China trade talks in London. At the center of the talks was Chinese export controls over rare earth minerals, which are critical in the manufacturing of defense technologies . Following a second day of negotiations, it was announced that Washington and Beijing's representatives had reached an agreement, which would be put before their respective presidents for approval. U.S. Commerce Secretary Howard Lutnick told reporters Chinese restrictions on rare earths were "fundamental" to the agreement. Speaking to CNBC's Charlotte Reed on Wednesday, Thales CEO Patrice Caine said the situation was gradually improving, while warning that supply tensions could affect areas like mechanical parts and electronic boards. However, he downplayed the direct impact an ongoing bottleneck would have on Thales' operations. "It's much lower down in our supply chain, so it's not directly visible to us," Caine explained. "Of course, if we lack these key resources at one stage it will impact us, but for the moment it's much too low in the supply chain to be visible and have any impact on what we do at the other end." French defense giant Thales, which supplies companies and governments with defense technology, has seen its shares jump around 80% so far this year. Back in March, Caine told CNBC planned defense spend hikes in Europe ought to remain in the region and benefit companies native to the bloc. 'Hard to see' another big boost for sector Maximilian Uleer, Deutsche Bank's head of European equity and cross asset strategy, is cautious on the sector, regardless of what happens to the supply of rare earth minerals. "European [defense] stocks increasingly reflect higher spending plans," he said in a Friday note, pointing out that the average price to earnings ratio in the sector had moved much higher since the beginning of the year. Uleer added that markets were expecting military alliance NATO to propose its members commit to spending 5% of their GDP on defense — a notion touted by U.S. President Donald Trump that has had a divided response from European leaders — at its upcoming summit. "The biggest spender, Germany, has already announced a plan to invest accordingly … This could support further inflows [to the sector] short term," he said. "But apart from that, it is hard to see how the NATO summit could beat expectations and what the next driver for the Defence sector will be. We see limited upside for the sector in H2." Aymeric Gastaldi, international equities portfolio manager at Edmond de Rothschild Asset Management, disagreed, arguing that the long-term outlook has "fundamentally changed" for the sector. "The combination of growth and visibility commands a structurally higher multiple for the whole sector," he told CNBC in an email on Wednesday. Edmond de Rothschild Asset Management expects sales of European defense to grow by more than 150% over the next seven years. "The sector will benefit from the rise of defense spending from < 2% GDP to +3%, the rise of equipment spending within the overall mix from 35% currently to 40%-50%, and the willingness of European countries to source more of their spending locally," Gastaldi explained. "Now, Germany is contemplating boosting its military spending towards 5% of GDP by 2032. This is a sea change." Having pared some of the gains seen in the wake of a European commitment to ramp up defense spending , the regional Aerospace and Defense index is now up by around 45% since the beginning of the year. Some of the regional defense giants, however, have seen much steeper year-to-date rallies. Tank parts maker Renk has soared around 270% so far this year, while arms manufacturer Rheinmetall has surged 172% and defense tech giant Hensoldt is up by 163%. German players have been major beneficiaries of the bullish sentiment toward the sector, thanks to the country's historic debt reform in March that paved the way for greater spending on national security. Short term, Edmond de Rothschild's Gastaldi conceded that there could be some tactical sell-off as investors questioned whether the sector had peaked. "However, in the long-term we still see value in the space, and in a context of low economic growth, companies that are able to post high and robust earnings growth will trade on [a] much higher multiple than the market," he said. Mark Boggett, CEO of Seraphim Space, which manages a space tech investment fund, also told CNBC he did not believe regional defense stocks had reached their peak. "Global defence priorities are undergoing a fundamental, structural transformation," he argued. "Governments worldwide are not only maintaining but also accelerating investments in sovereign space capabilities, recognizing the critical strategic importance of space-based infrastructure for national security." He pointed to Trump's recently announced $1 trillion defense budget that would include a so-called "Golden Dome" missile defense system , as well as the European Union's plans to mobilize up to 800 billion euros ($917.5 billion) for defense spending.
