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Speaker 1: Shane Soli Harbor Asset Managements with US. Hello, Shane, are

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Speaker 1: you okay? How much can we read into those improved

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Speaker 1: building permits stats that came out today?

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Speaker 2: Yeah, so we saw a bit of a continued bounce

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Speaker 2: off I low based residential building concents up seven point

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Speaker 2: two percent over the last month. It's better than expected, Heather,

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Speaker 2: And really we're getting two months in a row. The

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Speaker 2: data for last month was actually revised up from five

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Speaker 2: point eight to six point one, so in stronger.

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Speaker 3: The only sort of cadd here is that data can.

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Speaker 2: Be quite volatile, so while it's too stronger months, it's

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Speaker 2: really sort of a tentative evidence that there's residential investment

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Speaker 2: markets turning higher.

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Speaker 3: So good, but we've got a bit more to go. Now.

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Speaker 1: What did the market make of west pax profit?

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Speaker 2: Well, there was actually a good result. It was better

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Speaker 2: than expected. But the main reason for it was they

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Speaker 2: had lower debt. Bad debt charges so particularly the stronger

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Speaker 2: Australian economy means that baddened up with.

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Speaker 3: Debt and payments.

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Speaker 2: This is when banks provision for people not paying back

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Speaker 2: their debt lower than expecting. Impayments are really low. That

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Speaker 2: we've gone from six basis points to four basis points.

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Speaker 2: It doesn't sound like a lot, but it's huge in

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Speaker 2: banking terms. One of the interesting standouts here there was

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Speaker 2: the Westpac New Zealand profit result bit of a ripper

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Speaker 2: driven by net interest margin expansion. We actually saw the

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Speaker 2: west Pact year price up three percent to its highest

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Speaker 2: ever price in Australia, to thirty nine dollars nineteen Australian dollars.

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Speaker 2: So big day for Westpac.

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Speaker 1: Now we've got the new Chinese economic data out as

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Speaker 1: well today. Are there any implications there for New Zealand.

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Speaker 2: Yeah, it was a bit, makes a bit more slippage

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Speaker 2: from it's still positive, but it's nothing that's going to

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Speaker 2: I don't think it's going to really cause major recins

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Speaker 2: for New Zealand economy. But we continue to see the

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Speaker 2: ratings dog data, that's what it's called. Seeing the Chinese

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Speaker 2: factory activity expanding less than expected. So the purchasing manager

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Speaker 2: and this this is a forward looking index. It says

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Speaker 2: what people think they're going to do.

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Speaker 3: Slip from fifty one point two and September to fifty

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Speaker 3: point six. All positive.

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Speaker 2: It's above fiftyeths expansion exports, that's the issue either that

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Speaker 2: people wear about this trade uncertainty so to doal back

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Speaker 2: their export expectations, but they are adding jobs, so that's

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Speaker 2: a bit of a conundrum and that one side speaker

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Speaker 2: on the other sides up. So jobs has been a

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Speaker 2: slow point for the Chinese economy, fastest growth in two

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Speaker 2: years in the slatest data, so that's a bit of

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Speaker 2: a change.

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Speaker 1: What are we expecting from the unemployment out of this

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Speaker 1: out on Wednesday?

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Speaker 2: Yeah, really big one from the New Zealand market, the

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Speaker 2: market is expecting potential for ongoing weakness.

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Speaker 3: We have seen films, you know, not adding to the growth.

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Speaker 2: Of late there's a chance the New Zealand employment rate

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Speaker 2: could tick up to a nine year high sort of

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Speaker 2: above five. Five point three is what the pundits are picking,

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Speaker 2: which is a very interesting number in terms that it's

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Speaker 2: more than five less than five and a half, So five.

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Speaker 3: Point three and if we get to that then that really.

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Speaker 2: Gives us a bit more support for another cut by

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Speaker 2: the Reserve bankings on another twenty five basis points to

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Speaker 2: two point two, but the markets was introducing that could

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Speaker 2: be it for the cycle.

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Speaker 3: So one last cup on the back of weaker employment data, brilliant.

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Speaker 1: Hey, thank you very much for talking us through that

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Speaker 1: show that's showed Solly Harbor Asset Management. For more from

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