{
  "id": 19351453,
  "title": "London-listed technology investment trusts brace for bleak winter",
  "url": "https://urgent.news/2026/11/10/london-listed-technology-investment-trusts-brace-for-bleak-winter",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-10T14:18:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/london-listed-technology-investment-trusts-brace-for-bleak-winter/"
  },
  "original_language": "en",
  "account": "After the impact caused by revelations regarding Jensen Huang's ties to an alleged spy, Softbank has joined the concerns surrounding the AI bubble. The Japanese investment company, headed by billionaire Masayoshi Son, shocked markets after revealing a £5.3bn third quarter loss, contrary to analysts' expectations of a profit. This loss was primarily due to a significant write-down in data centre projects, including payments made to secure power generation equipment for a substantial development in the US. This move added to fears that Softbank had rushed to gain an advantage in the AI competition. The company is now planning to conduct a comprehensive review of its data centre strategy, with finance chief Yoshimitso Goto expressing regret.\n\nLondon-listed technology investment trusts, once the top performers of the year, have been rapidly losing value since the beginning of the third quarter. Manchester & London Investment Trust, which has about a third of its portfolio in US chip firms Nvidia, Micron, and Broadcom, has lost nearly a quarter of its value since last month. Similarly, Allianz Technology Trust and Polar Capital Technology Trust have also suffered losses of around 23% and 21%, respectively.\n\nThe current situation is alarming for investors who had bet on semiconductors at the start of the year, as they now face one of the worst strategies. More than three-quarters of the FTSE 350 have outperformed Nvidia's stock since January, indicating a massive shift away from tech investments. Defensive stocks, which generally offer stable returns during uncertain business cycles, have regained popularity. The MSCI index of global consumer staples stocks witnessed its largest monthly gain in nearly three decades, with healthcare stocks not far behind at 9.8%, both eclipsing historic gains. Russ Mould, investment director at AJ Bell, attributed this trend to rising interest rates and bond yields, which negatively impact stocks like Nvidia with their reliance on future profits and cash flows. Additionally, lingering doubts about the funding and returns from massive AI investments, as well as Softbank's high valuation, have contributed to the decline in tech shares.",
  "summary": "After the shockwaves triggered by revelations over Jensen Huang’s relationship with an alleged spy yesterday, today it was the turn of Softbank to add to AI bubble anxieties. The Japanese investment firm, led by billionaire founder Masayoshi Son, surprised markets after posting a £5.3bn third quarter loss (analysts were expecting a profit). That was caused [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}