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Speaker 1: The Harbor Asset Management is with us right now. Shane, Hey, Heather,

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Speaker 1: what do you make of this news that Fletcher Building

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Speaker 1: has got the begging bowl out?

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Speaker 2: Mmmm? Looks so here the Fletcher Buildings raised seven hundred

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Speaker 2: million today of new equity, very much about trying to

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Speaker 2: pay down some debt.

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Speaker 3: Give it a bit of strength in this balance sheet.

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Speaker 2: Certainly our view the reset because a bit more strength

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Speaker 2: financial strength at least to allow for improving its operational performance,

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Speaker 2: while training activity remains pretty tough.

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Speaker 3: So Cindy gives them a bit of a cushion.

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Speaker 2: I guess outside the capital raise, they've talked about raising

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Speaker 2: or reducing costs one hundred and eighty million, and of

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Speaker 2: course that may include some more job blesses you. Certainly,

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Speaker 2: the resetting the balance sheet, new chief executive officer, new

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Speaker 2: financial chief fundship officer, getting back on the tools maybe

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Speaker 2: after the reset the spalance sheet. So yeah, certainly it's

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Speaker 2: a big jump, a little bit of a surprise. Market

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Speaker 2: hadn't quite anticipated.

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Speaker 1: This, So it seems to me kind of risky because

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Speaker 1: they've got the litigation probably coming at in the class action.

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Speaker 1: But then, on the other hand, seventeen percent discount on

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Speaker 1: the share price seems okay. Does it kind of balance

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Speaker 1: out to you?

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Speaker 2: Yeah, Look, it's interesting that we've seen the company really

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Speaker 2: raise quite a lot of capital to try and give

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Speaker 2: it a position where some of these risks are addressed.

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Speaker 3: So we'll see through time, you know, we can't.

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Speaker 2: We don't actually know that things are necessarily going to

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Speaker 2: turn around in a hurry, but certainly they've taken a

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Speaker 2: pretty aggressive stance.

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Speaker 3: And raising capital to give the business a bit of

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Speaker 3: a chance.

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Speaker 1: Now, I mean, we've obviously had this one and then

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Speaker 1: we had last week Auckland Airport's one point four billion

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Speaker 1: dollar capital raise. You reckon, this is going to become

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Speaker 1: a thing. Are a bunch of companies going to try

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Speaker 1: and do this?

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Speaker 3: So interesting? We can't really rule it out.

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Speaker 2: There's a bit of difference between awkward airport of Leeds

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Speaker 2: you build a Eakord airport raising capital predominant to support

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Speaker 2: this massive infrastructure development. They're doing pledge building more about

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Speaker 2: So we're geting get a bit of a financial concushion.

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Speaker 2: But you know, I think perhaps there's other companies maybe

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Speaker 2: be tended to raise new equity to support growth, but

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Speaker 2: we can't rule out other businesses saying, hey, look we

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Speaker 2: need to the economy is not getting better. We're in

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Speaker 2: a tough place. We need to reinforce the bone shoot

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Speaker 2: so we can't roll it out either.

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Speaker 3: Yeah.

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Speaker 1: Speaking of which, we had some more weak economic data today,

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Speaker 1: didn't we.

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Speaker 2: Yeah, Look, unfortunately we can't catch a trek here in

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Speaker 2: New Zealand, and it's probably telling us just how bad

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Speaker 2: things have got today. We had the Baker August Job

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Speaker 2: Ads Index, and that's based on data on seeks. If

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Speaker 2: you go and seek, you can see the number of

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Speaker 2: ads going for down and they dropped one point three

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Speaker 2: percent for the August month on the July month. Doesn't

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Speaker 2: sound like a lot, but if we aggregate that over

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Speaker 2: the last twelve months, we're actually down thirty one percent.

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Speaker 2: Massive drop in the number of job ads. Certainly we're

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Speaker 2: seeing more application applicants and more people applying for jobs. Really,

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Speaker 2: you come back to what does it mean. We also

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Speaker 2: had a really quite a weak trade deficit, so we're

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Speaker 2: basically imported more than we exported. We're deficit of nine

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Speaker 2: point three billion dollars. Big no, right, really disappointing, and

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Speaker 2: that was driven a little bit by one largely craft, but.

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Speaker 3: Still a weak number.

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Speaker 2: It all aggregates back to reserve bank and zone starts

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Speaker 2: to need to think about cutting interest rates even more.

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Speaker 1: What are you going to be looking at out of

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Speaker 1: the overseas markets tonight?

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Speaker 3: Yeah? Interesting.

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Speaker 2: There's are some data points out of the US, in particular,

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Speaker 2: which is activity, economic activity, and of course the Federal

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Speaker 2: Reserve recently cut rates and they say, look, we're going

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Speaker 2: to go again if we think interest rates sorry, if

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Speaker 2: activity is going to drop more tonight, We've got the

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Speaker 2: Chicago Feed National Activity Index and the USMP Global Composite

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Speaker 2: Purchasing Manager Industry, and you've got to go who cares.

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Speaker 2: They're very good lead indicators for employmentages. So that's what

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Speaker 2: the US for the Reserve is worried about. They want

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Speaker 2: to make sure unemployment rates don't go through the roof,

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Speaker 2: and perhaps SIS gives them more ammunition to keep cutting rates.

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Speaker 3: Similarly, we have our number out in Europe, which is

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Speaker 3: the European.

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Speaker 2: Purchasing Managerity, and we've seen the Europeans Bank going we

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Speaker 2: need to cut rates again, so to mere. But going

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Speaker 2: on tomorrow, we've got a bit of activity in the

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Speaker 2: Australian economy where the Reserve Bank of Australia's.

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Speaker 3: Due to come out with their cash Right decision. Expectation

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Speaker 3: is pretty low of a cut.

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Speaker 2: In fact, perhaps the Australian economy is going through where

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Speaker 2: we were six to twelve months ago, So low expectations

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Speaker 2: of cuts from the IRBA. But hey, it's it's not

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Speaker 2: it's not totally a zero, but odds are very low.

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Speaker 1: Yeah, hey, Shane, thank you so much, as always appreciate it. Shane,

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Speaker 1: Sally Harber Management.

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