The Cynic: September 16

BUSINESS
This Week’s Business News

America wants fewer red flags at global ports—literally.

Washington has kicked off a sweeping push to dilute China’s control of strategic harbors worldwide, eyeing U.S.- or ally-backed takeovers of Chinese stakes from Panama to the Med; think “de-risking,” but with tugboats and term sheets.

Follow the cranes, follow the leverage. One marquee example officials are tracking: the BlackRock-led bid for CK Hutchison’s ports spanning 23 countries (including both ends of the Panama Canal)—a geopolitics seminar disguised as an infrastructure deal.

Beijing calls it legal commerce; Washington calls it security. With COSCO stakes under scrutiny and chokepoints on the watchlist, this is the biggest U.S. maritime power play since the ’70s—and nobody’s pretending this is just about shipping schedules.

Nvidia built a “China-safe” AI chip—and China’s tech giants said “hard pass.”

The new RTX6000D is compliant with U.S. export rules, costs about 50,000 yuan (~$7K), and still can’t beat what the grey market already supplies for half the price—so Alibaba, Tencent, and ByteDance aren’t exactly stampeding.

Everyone’s waiting for the next SKU. Shipments of the 6000D just started, but buyers are really watching for H20’s rollout and potential approval of the beefier B30A—because workarounds are a national sport now.

Result: an awkward quarter for Jensen’s China plan. Analysts predicted millions of units; reality delivered a shrug and a shopping list labeled “domestic alternatives.”

Once “uninvestable,” China’s $19T market is suddenly a little too interesting again.

Foreign funds are tiptoeing back into A-shares and Hong Kong tech as AI/semis/bio stories defy doomsday takes, and policy backdrops thaw—diversification looks cheaper in Shanghai than on the Nasdaq right now.

Flows don’t lie, they whisper. August saw the strongest hedge-fund buying in six months while big shops quietly raised China allocations—still cautious, but the “never again” era is looking a lot like “maybe a little.”

Yes, the economy’s messy; that’s why the entry price improved. Investors are betting AI momentum bleeds into the real economy—eventually—because careers are made buying what everyone swore off last year.

REAL ESTATE
This Week’s Real Estate News

Manhattan’s “666” pulled a Lazarus—reborn as 660 Fifth and fully leased.

Brookfield stripped the notorious tower to its steel and spent roughly $400M on a glass-and-light makeover; the once-politically radioactive address is now the kind of place bankers brag about in elevators.

From cautionary tale to trophy again. After a 99-year lease deal in 2018, Brookfield rebuilt the guts, raised ceilings, added terraces—and signed blue-chip tenants like Scotiabank, Citadel, Macquarie and Viking, pushing average rents into the ~$135/sf stratosphere.

Moral: there’s no such thing as “un-leaseable,” only “under-renovated.” In a market light on new supply, a top-tier re-skin plus location still prints leases—even with office vibes stuck on “complicated.”

London offices are booming—powered by… American companies.

Apple, Citadel, and other U.S. giants are driving a prime-space surge, proving that if the building is shiny enough, transatlantic CFOs will cross an ocean for a good desk and a better commute.

Prime rents flirting with records, and cranes agree. The City and West End are landing long-term commitments as finance and big tech cluster in A-grade space—because hybrid isn’t the same as “never come in.”

Brexit who? Bring me my Cat A+. London’s depth, talent, and time zone still sell themselves; the accent is optional, the capex is not.

Beijing loosens the money pipes to lure foreign capital—SAFE mode: easier.

China’s forex regulator unveiled measures to simplify cross-border investment and financing, complementing a January tweak that lifted macro-prudential limits to 1.75 to widen offshore funding channels.

Translation: fewer forms, more inflows (they hope). The package aims to streamline approvals and broaden avenues for overseas borrowing/investing—because “uninvestable” headlines are bad for business.

If you build a bigger funnel, do the dollars come? Global allocators like clarity; China’s betting that regulatory WD-40 plus higher carry will get them back through the door.

SPONSORSHIP
This Week’s Partner

Keep This Stock Ticker on Your Watchlist

They’re a private company, but Pacaso just reserved the Nasdaq ticker “$PCSO.”

No surprise the same firms that backed Uber, eBay, and Venmo already invested in Pacaso. What is unique is Pacaso is giving the same opportunity to everyday investors. And 10,000+ people have already joined them.

Created a former Zillow exec who sold his first venture for $120M, Pacaso brings co-ownership to the $1.3T vacation home industry.

They’ve generated $1B+ worth of luxury home transactions across 2,000+ owners. That’s good for more than $110M in gross profit since inception, including 41% YoY growth last year alone.

And you can join them today for just $2.90/share. But don’t wait too long. Invest in Pacaso before the opportunity ends September 18.

Invest While You Still Can

_{Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.}

FUN
Riddle Me This

I’m sweet when I’m low,
I’m cruel when I’m high.
I shrink your dream home,
With nothing but a sigh.
What am I?

Reply to this email with the answer for a chance to win a surprise

ADVICE
This Week’s Business Advice

Want your advice to be featured on next week’s edition of The Cynic?

Reply to this email with your business advice