Competition

It’s hard to avoid Trump. Views abound. From high-brow economic thought leaders through to taxi drivers and even the odd taxidermist. Everyone has a view. That the man wiped the floor and now stands atop a clean sweep is very Liverpool-Istanbul-2005. Like him or loathe him, he’s got some form. As world leaders awkwardly embrace the President elect, and work with the PR team to reframe previous descriptions of “a woman-hating, neo-Nazi-sympathising sociopath“, all eyes fall on who’s going to be in on the fun bus of the new administration. In the fog of wider policy, the issue of tariffs appears to be one where there is no doubt. They’re going up. And going up a lot for China. That ‘Little Marco’ is set to be his new top diplomat is only going to fan the flames, given a description in the press as a wet-lipped ‘China hawk’. Hmm. The direction of travel is clear. The gloves are off. Less reported in the mainstream press is the burgeoning competitive threat of China in areas such as smart-phones, AI chips and electric vehicles. The much maligned Huawei has just pulled in more than three million pre-orders for a triple-folding smartphone, the first of its kind. This in addition to reports that the company has an AI chip that is on a par with Nvidia’s H100, giving it a big high-five to increasingly brittle US sanctions. The technological threat of China, specifically in government supported markets, is now real. It’s not unreasonable to think that once the domestic market has been conquered, many of these companies will have bigger ambitions. See BYD bringing a new customised double decker electric bus to the UK. Even long-established dealers, like the Alan Day Motor Group are pulling hard on the B&Hs and going all in, launching the first stand-alone BYD dealership in New Southgate. Perhaps reckoning the price-keen local clientele don’t share Little Marco’s views on the land of the dragon. The competitive threat has, not only real world implications, but will also liven discussion on the assumed unassailable position and future prospects for the likes of Apple, Tesla and other US tech firms that have long enjoyed prime time in the jacuzzi. The bear hug on profits, margins and valuations will have implications. More so in the light of a post-election rally that has printed unseen-before ETF volumes, and sent share prices up over the pavilion. Happy days for some. Perhaps six and out for others.