May 26, 2017 | Investment Advice

International News (Issue 450) – May 26th, 2017

Overseas this week we had a few things to take note of.In the technology space, Japan’s Softbank (9984) took a surprise 5% stake in the leading graphics chip designer NVIDIA (NVDA).

The noteworthiness of this if you will, is that NVDA shares are already up 200% in the past 12 months and now have a market value of $80bn. Further, that Softbank have decided to pay up for this stake is doubly interesting since the Japanese group surprised everyone early last year by acquiring leading chip-maker ARM Holdings of the UK for a whopping US$32bn.

Softbank are notable for their prescient views on emerging technological trends, and their founder Masayoshi Son is widely seen as a visionary in the vain of Steve Jobs, Elon Musk and Jeff Bezos.

The $4bn bet on NVDA isn’t huge by Softbank’s standards but is notable in that it comes at a time when the semi-conductor has run red-hot for months now, with many questioning whether it is time for as pullback.

This bet certainly points to a view that the explosion in internet connectivity has a long way still to run.

In Hong Kong this week we saw the local monetary authority order a new round of tightening measures for the property sector. Much like Australia and indeed the rest of the world, Hong Kong property has been on a tear, fueled by low interest rates and Chinese buying.

Have a great weekend.

Jono & Guy

Wednesday Closing Values

 IndexChange%
U.S. S&P 5002415+50+2.1%
London’s FTSE7518+82+1.1%
Japan’s Nikkei19813+260+1.3%
Hang Seng25631+495+2.0%
China’s Shanghai +18+0.6%

 

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