UK might pay the price. Who wins, who loses?

Paolo Cabrelli | 17 July 2020 Trump gives China the middle finger Dear Reader,   We all knew it was coming but now it’s official.   The UK have banned Huawei from its 5G network.   On a geopolitical level – relations between China and the UK will be strained.   Sky News reported that Ambassador Liu Xiaoming said that Britain risks looking like the "junior partner of the United States" and that “The way [Britain] are treating Huawei is being followed very closely by other Chinese businesses, and it will be very difficult for other businesses to have the confidence to have more investment”.   UK Investors should watch this space. There is sure to be blowback from China.   Meanwhile Trump is delighted. He proudly declared "We convinced many countries, many countries - and I did this myself for the most part - not to use Huawei, because we think it's an unsafe security risk.”   It seems the US v China cold war will only deepen throughout 2020 and nation states will be forced to pick a side.   But how about 5G? Who wins and who loses on that front?   Well, the obvious loser is Huawei.   Nokia and Ericsson are widely regarded as the natural beneficiaries of this latest twist in the 5G tale.   Both companies have rallied slightly since Tuesday’s announcement.    And the situation still looks extremely bullish for plenty of other 5G companies too.   Our analysts – Sam Volkering and Eoin Treacy - have been tracking the 5G situation for months and are still hedging their bets on these two 5G companies.   The “Genesis Chip” could still have a meteoric rise.   As does the little-known stock they’ve dubbed “The Must-Buy 5G Millionaire Maker”.   You can read their findings here – it’s easy to see why the investment case remains so compelling.   Regards,   Paolo Cabrelli  Associate Publisher, Southbank Investment Research     P.S. The “Genesis Chip” looks particularly interesting right now.   Forecasts are not reliable indicator of future results. Its game-changing 5G technology is about to be installed inside the devices of the some of the world’s biggest tech companies…   Apple, Google, Sony, Samsung, Nintendo, Bosch, Cisco, HP, and many more – potentially making it a red-hot buy. Get the full story here.

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