Weekend Reading #219
This is the two-hundred-and-nineteenth weekly edition of our newsletter, Weekend Reading, sent out on Saturday 27th May 2023.
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A shorter one this week in terms of reading, watching etc given we’ve been on the road but as always much to think about and the world doesn’t stop just for us.
What we’re thinking
It’s not often in markets that a truly era-defining events happens but this week was one of those rare occasions. Nvidia’s results themselves were not much to write home about but the guidance for next quarter simply blew everybody’s brains out. What is amazing is the size of the markets lack of appreciation for what has been brewing. For some idea - the expected consensus revenues next quarter (yes, that soon) was $7bn. Nvidia announced guidance of $11bn. This is a staggering beat. And it’s all driven by demand for AI chips. The significance cannot be appreciated enough. Artificial intelligence has moved from being a great narrative - something warm and fuzzy that will materialise sometime in the future - to something that is happening now. Nvidia has moved from concept stock to an earnings story overnight. This is something unbelievable given the insane valuation it seemed to be priced for just 2 days ago.
As we have written at length, do not stand in front of the train but rather hop on. As ridiculous as it sounds, it’s still early. Volatility will be there for sure and nothing happens in a straight line but wow this blew our minds.
What we’re doing
Last Sunday afternoon, I decided it was worth escaping the city centre and to take a hike along Singapore’s Old Rail Corridor along the stretch from Hillview to Holland Village (approximately 7.2km). This serene trail with its lush greenery and remnants of some of the track and rail signalling infrastructure provided a great way to relax and learn more about the country’s past having initially been built by the British in 1902 to connect the port in Singapore to the rest of the Malay Peninsula. Most exciting of all, I managed to see a family of wild monkeys swinging across the treetops in front of me and a couple of wild chickens just wandering around. HS
Eugene and I spent most of the week in Jakarta, meeting a wide array of both old and new faces. For me, the city gets better each time as infrastructure upgrades and generally better policy led to noticeable positive outcomes. The main thing I noticed this time was that as opposed to the usual cautious optimism that has characterised the Jokowi years, there is now an assuredness about the place. People know very well now the country is doing well and business is booming. But one gets the feeling that the boom and bust cycles have been swapped out for a longer term virtuous one given the macro and political stability that Indonesia now enjoys. The only thing in the way is the election coming up in February next year where Jokowi must step down after a decade in charge. Most outcomes point to continued stability and further reward for good policy. It would take a lot now to stuff it up after an incredible decade of progress.
As an aside I’ve noticed two elite sports have been picking up in Jakarta despite the sweltering humidity. Our old friends are now very much into golf after a covid-related boost and padel courts are sprouting all over just like everywhere else in the world. I had the pleasure of being invited to play at one of the new centres and apart from nearly dying of heat, had a great game.
It feels like escape velocity is within reach for Indonesia and it would bring us great joy to see the country continuing to succeed.
A quick day or two in Singapore, where I hadn’t been in a while, reminded me what it feels like to be in a major urban centre that resonates with positive energy. Compared to London, where everything feels a bit slow and tired at times, Singapore is pumping. No one takes anything for granted and the city is pumping. Everyone is keen to meet and do business as the hustle goes on day and night. And most people don’t really care about what’s happening on the other side of the world. Their own city is teeming with opportunity. DC
What we’re eating
After finishing my short hike, I ended up in Holland Village, a rather picturesque part of Singapore, home to many expats and a variety of restaurants catering to all kinds of different global cuisine. I decided to treat myself to the locals take on a Belgian-style waffle in which they used a pandan filling for the waffle and coated it with their traditional ‘kaya’ coconut jam to finish. It was superb and I will certainly be repeating this hike and dessert again.
I've tried many of the famous local delicacies here since returning to Singapore again last week from KL, however it’s the Chicken Curry Puff from Tanglin Curry Puff in the Hong Lim Hawker Centre that is perhaps one of my favourite small snacks. Its flaky pastry encasing richly spiced curry creates a simple yet satisfying mid-afternoon snack and perhaps the best way I can think to describe it is an adventurous variation on a Cornish Pasty from back home packed with local flavours. HS
What we’re reading
This article about smartphone use amongst kids and teens hits the spot. The research is clear and Olivia Reingold in this piece in Three Press gives a pretty solid case for cold turkey up until the right age. When that is? Up to the parents to decide I guess but I know my wife and I’ll be keeping my kids away as long as we can. DC
What we’re watching
On my flight to Singapore last week, I finished the remaining episodes of The Diplomat, a Netflix political drama featuring Keri Russell, who is good at spy stuff having starred in “The Americans”, some years back. She plays the newly appointed US ambassador to the U.K. The show was created by Debora Cahn, of both The West Wing and Homeland. A superb, simmering plot filled with political intrigue. DC
What we’re listening to
Capping off what was by any measure a productive but nonetheless tiring week was an evening at Muddy Murphy’s on Orchard Road. Google may tell you that it’s just another Irish pub in Singapore selling overpriced drinks especially by London standards (excise tax being the big culprit, but alcohol isn’t that healthy anyway), but Irish or otherwise isn’t the point, because it was the music – and the band – that was the highlight: Shirlyn + the UnXpected. The band used to play at another iconic live music venue, Walawala in Holland Village, all the way back during school days in the early 2000s. Unfortunately, Covid brought an end to Walawala’s live music days; fortunately, the band and a streak of classic rock and metal from Iron Maiden to Led Zeppelin to Dire Straits lives on. And to put things in context, one does not simply belt out Immigrant Song, She’s Gone and Run to the Hills in the same session and sound good by chance. Sound engineering is critical for it to not sound cacophonous and messy, and after a wobbly start on the sound engineering front, the crew did manage to get it right for the rest of the evening.
The only complaint? One speaker with a loose connection somewhere meant that there were bursts of music followed by stretches of imbalanced sound.
Other than that, someone should sign them on for a recording deal because they absolutely deserve it. EL