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Speaker 1: Got more evidence the Reserve Reserve Bank did make the

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Speaker 1: right call in cutting the OCR Last week, BNZ Performance

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Speaker 1: of Services indexes out was up almost four points to

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Speaker 1: forty four points six in July. Shane Solely from Harbor

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Speaker 1: Asset Management has been looking at these numbers for us.

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Speaker 2: Hey Shane, Yeah, hey, now.

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Speaker 1: It's still under fifty, so it's still contracting, right.

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Speaker 2: That's right, And I think this is a really important

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Speaker 2: thing here. We're still actually well below where we were

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Speaker 2: in the GFC and I think a lot of people

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Speaker 2: if they know that when they see it out in

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Speaker 2: the streets. But we've readly got a lot of work

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Speaker 2: to do here. There was a little bit of life

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Speaker 2: in the measure, so the recovery in terms of the

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Speaker 2: activity and sales measure and actually a little bit of

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Speaker 2: pick up in new orders. But this is still suggesting

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Speaker 2: the economy is continuing to decline and the Reserve Bank, well,

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Speaker 2: they need to keep moving with those cuts.

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Speaker 1: And we've had a start to the August profit reporting

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Speaker 1: season on the market today. What do you make of it?

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Speaker 2: Yeah, a couple of interesting results. So two beats, two

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Speaker 2: beats against the expectations and one mass and the two

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Speaker 2: beats Contact Energy and freightways slightly better. Obviously Contact Energy

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Speaker 2: literacity generator. They're hanging on to their balance sheet. They're

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Speaker 2: talking about focusing on future investment and infrastructure to support

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Speaker 2: growth and demand. Freight ways not a bad result, but

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Speaker 2: cautious about the outlook the next six months, but suggesting

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Speaker 2: maybe as these rate cuts come through they see a

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Speaker 2: bit of recovery. But really for them it was Australia

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Speaker 2: was there when the clanger. The real disappointment was atm

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Speaker 2: MIL missed expectations. The stock price was actually down nineteen

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Speaker 2: percent at one stage, and the management team really quite

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Speaker 2: conservative about sales demand, particularly into China. With this unfortunate

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Speaker 2: we haven't seen a real boost in terms of infants

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Speaker 2: being born in the Year of the Dragon against expectations,

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Speaker 2: and really just actually a shortage of formula supply and

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Speaker 2: some higher cargo costs, particularly air freight, so a few

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Speaker 2: things really pushing back on expectations of a recovery and

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Speaker 2: demand and Margin's. Yeah, tough day for a tow. The

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Speaker 2: stock has actually been really strong into this, so little

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Speaker 2: bit of the market perps getting ahead of itself.

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Speaker 1: Oh what else are we expecting to see in terms

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Speaker 1: of profit results for the rest of the week.

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Speaker 2: Yeah, busy week here that this week we've actually got

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Speaker 2: fifteen companies Tomorrow, we've got Mercury Energy Wednesday, Ebos, Fletcher Building,

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Speaker 2: Sky TV Thursday, Auckland Airport, Genesis, Sky City Friday, Channel Infrastructure,

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Speaker 2: the old ENZI Refining inside X, the Stock Exchange, Port

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Speaker 2: of Tower on A Spark, New Zealand, and Winton, which

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Speaker 2: is the real estate developer.

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Speaker 1: Yeah, and not only that, we've got a whole bunch

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Speaker 1: of data coming out this week. What are you looking for?

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Speaker 2: Yeah, look, I think econ I look wise tomorrow, we've

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Speaker 2: got the ARII and Z house sales for July and

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Speaker 2: that's important because we are we see a turning point.

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Speaker 2: But I think US politics and economic data come back

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Speaker 2: to the fray again. Either we're certainly investors have been

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Speaker 2: watching this US Democratic National Conference starts tomorrow. Is there

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Speaker 2: any sort of policy announcements that come through that are different, challenging?

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Speaker 2: And then later in the weekend, buses are going to

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Speaker 2: switch their force to the US Federal Reserve Jackson Hole Symposium.

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Speaker 2: And that is about whether our friend mister J. Powell,

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Speaker 2: Chair of the USC Reserve, actually starts to talk about

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Speaker 2: we're going to cut rates again here assuming the inflation

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Speaker 2: data is supporting that.

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Speaker 1: Yeah, Shane, thank you very much, Really appreciated that. Shane Solly,

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Speaker 1: who's with Harbor Asset Management. For more from Heather Duplessy

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Speaker 1: Allen Drive, Listen live to news Talks.

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Speaker 2: It'd be from four pm weekdays, or follow the podcast

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Speaker 2: on iHeartRadio