🤝 SoftBank's in demand (again)

Elliott has bought up $2 billion of SoftBank shares | China faces the tide of exports backlash | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for June 6th in 3:12 minutes.   🤝 Robinhood is one of the most popular platforms in the US. So with the UK launch around the corner, we're [sitting down with Robinhood's president later this month]( – and inviting industry professionals to join live and in the flesh. But move fast: [the waitlist is about to close]( Today's big stories - Hedge fund Elliott Investment Management has gone all activist again, targeting Softbank – and not for the first time - Why central bank selloffs might not be the crisis-creator that some think – [Read Now]( - China’s amped-up exporting spree might have sparked another round of tariffs Active Lifestyle [Active Lifestyle] What’s going on here? Activist hedge fund Elliott Investment Management [snapped]( up shares in SoftBank, eager to whip the Japanese tech giant into shape. What does this mean? Activist investors buy major stakes in companies so they can impact key decisions, with an aim to make a profit or create more value for shareholders. In this case, Elliott wants to use its stake in SoftBank to force the company to buy back $15 billion of shares, which should reduce their supply and – all else equal – increase their price. Elliott has a track record to back the plan up, too: the hedge fund has previously taken hefty stakes in Japanese real estate firm Mitsui Fudosan and printing company Dainippon Print, before leading them both to significant buybacks. No wonder, then, that SoftBank’s share price jumped 5% after news broke of Elliott’s fresh stake. Why should I care? Zooming in: Take two will take two. Elliott pulled off this exact play a few years ago. The firm bought SoftBank shares, pushed the company toward a buyback, and then sold the stock for a profit when the shares increased in value. And SoftBank can afford another round: it’s saved up cash by being careful in the last few years, burned by disastrous investments like its WeWork punt. It’s been making money elsewhere, too: SoftBank’s stake in its famed Vision Funds is valued at around $51 billion, and the company owns a 90% stake in UK chip designer Arm, which is now worth $86 billion. The bigger picture: Japan’s lovely this time of year. Activist investors are being drawn to Japanese companies, partly due to government reforms that aim to make the country’s businesses more profitable for shareholders. Private equity firms are also flocking to the Land of the Rising Sun to do what they do best: take companies private. After all, there are loads of firms that want to keep all the takings for themselves. You might also like: [Here’s how to get armed and ready for the hottest IPO in ages.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Active Lifestyle&utm_campaign=daily-global-06-06-2024&utm_source=email) Analyst Take Central Banks Are Shrinking Their Holdings, And It’s Not As Bad As People Feared [Central Banks Are Shrinking Their Holdings, And It’s Not As Bad As People Feared]( [Photo of Reda Farran, CFA] Reda Farran, CFA, Analyst Investors are anxiously watching as central banks offload huge stashes of government bonds and other assets, batch by batch. That’s because [shrinking central bank balance sheets]( are typically associated with a whole host of nasty effects, like a rise in borrowing costs and market damages. But according to a new study, [this round might not be as worrying]( as some investors believe. That’s today’s Insight: [why central bank sell-offs might not be the crisis-creator that some think](. [Read or listen to the Insight here]( Beyond Big Tech There’s some disagreement about what an “[AI stock](” actually is. Some argue it’s a company wholly focused on the tech, while others say it’s enough to be a firm with an arm or some money dedicated to exploring AI. Big Tech has been a popular pick. Microsoft and Amazon, in particular, are sought-after as they’re developing their own big ideas, as well as investing in the world’s brightest startups. The big guys aren’t your only option, though. In fact, the possibilities are almost endless – but [IG has whittled them down to two other main investing themes]( worth digging into. That’s enablers, which provide the necessary infrastructure for AI technologies, and empowered users, which use AI to enhance their existing services. [Find out more about these two less-talked-about AI plays with our free guide.]( [Discover The Guide]( A Global Scrap [A Global Scrap] What’s going on here? China’s overzealous factories have already provoked glares from around the world, and they’re only going to intensify now that the country’s exporters have branched out beyond high-tech products. What does this mean? Trade spats with China are nothing new. In fact, the US brought in more tariffs just last month, and the EU will consider dishing out taxes on Chinese EVs next week. See, China’s real estate slump is making folk spend less, because much of their financial confidence is tied to the value of their homes. So Chinese producers have been flooding the global market with leftovers of EVs and green tech – and now, they’re shipping out everything from steel to animal feed at rock-bottom prices that are near impossible to compete with. Why should I care? Zooming out: Neither here nor there. China was hit with a record number of taxes last year, all designed to stem the flow of ultra-cheap exports. They weren’t just from the US and Europe either: a lot of the pushback came from countries like India and South Korea. But China’s not slowing down: its iron and steel exports hit a record 13 million tons in March and April. What’s more, the country’s on track to produce a billion tons of steel again this year – a lot of which will end up being shipped abroad. And as China’s factories keep churning out exports, more countries might join in retaliating. The bigger picture: Pieces of the pie. The choice for countries is tricky: impose tariffs and risk retaliation, or do nothing and watch local businesses go under. To make matters worse, the International Monetary Fund recently warned that the breakdown in trade relationships could slash global economic output by up to 7% in the next few years. That would hit countries like China, Japan, and South Korea hardest, because they rely most on international trade. You might also like:[How to defend your portfolio from the trade war crossfire.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=A Global Scrap&utm_campaign=daily-global-06-06-2024&utm_source=email) 💬 Quote of the day "I like nonsense; it wakes up the brain cells." – Dr. Seuss (an American children's author) [Tweet this]( Your cheat sheet for choosing a trading platform There are nearly as many trading platforms as there are stocks nowadays. So it’s tough to weed through them all – but if you want to find a platform with [the sharpest tools](, the [best benefits](, and the [fewest hidden fees or fine print](, you’ll need to plow through one by one. Or not. [Our guide]( to finding the right trading platform details the components that you’ll want to look for, the factors that can set you up for an optimum experience, and any red flags to be aware of. Think of it as your [cheat sheet for vetting platforms](, so you can streamline your search. Or if you want an even easier route, we included [an overview of IG’s platform]( – you might just find it sticks. [Read The Guide]( 🎯 On Our Radar 1. Fast fakes. Real weight-loss drugs are becoming hard to come by, so folk are [flocking to fakes](. 2. Crypto projects thrive on network effects. Here's [what to look at in a crypto project]( to see how much it’s worth.* 3. Simply the best. Here’s what you need to know about the [world’s 50 best restaurants](. 4. There's nothing like staying active. Here's how [different active investing strategies]( could play out for you.* 5. Worshipping on high. This Megachurch puts [plants on a pedestal.]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming up soon... All events in UK time.💰[The Insiders Guide To Leveraged And Inverse ETF Trading](: 5pm, June 13th 🔒 [How to Future-Proof Your Finances In Five Years](: 5pm, June 18th 🏔️ [Gaining An Edge Beyond ETFs](: 8pm, June 19th 🤑 [How AI Can Help You Invest Like The Wealthy](: 5pm, June 25th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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