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Speaker 1: But we just had Nicola Willis, the Finance Minister, on

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Speaker 1: the program telling us that she is beefing up Keywi Bank,

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Speaker 1: allowing five hundred million dollars of extra capital into Kiwi

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Speaker 1: Bank to try and bolster it, to try and make

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Speaker 1: it more competitive against the Australian owned banks and hopefully

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Speaker 1: increase competition in the sector, thereby reducing prices for us.

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Speaker 1: Does that sound like a pipe dream? Let's go to

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Speaker 1: Shane Solely Harborrestic Management, Shane good evening.

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Speaker 2: Yeah, hey, Ryan, how are you good? Thank you?

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Speaker 1: Is this plan going to work?

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Speaker 2: Look?

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Speaker 3: I think it's it's a start, right, There's a long

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Speaker 3: way to go with this business. Certainly injecting another five

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Speaker 3: hundred million into the business provised with a better competitive

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Speaker 3: start point with Australian banks. I think importantly, Minster Willis

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Speaker 3: has talked about opening up that five hundred million to

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Speaker 3: broader range of husy on investors. Right, The key, we

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Speaker 3: say is the institutional investors, So really opening up the

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Speaker 3: taps there and that changes things over the medium term.

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Speaker 3: And I think so there is there is a bit

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Speaker 3: of a change in the tone here. This is an

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Speaker 3: important move.

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Speaker 1: Yeah, you mentioned the institutional and the key we saver funds,

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Speaker 1: et cetera. But what about the rest of us. We're

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Speaker 1: potentially a couple of years away. What does that do

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Speaker 1: to the share price?

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Speaker 2: Yeah, look, I think a good point Ryan.

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Speaker 3: One of the things is many of us are investors

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Speaker 3: in QSA this, so you and I will have a

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Speaker 3: small amount of capital potentially invested in this QUSA fund

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Speaker 3: before potentially from the twenty eight posts and new digital transformation.

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Speaker 3: So I think, you know, we've got a long way

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Speaker 3: to go. It's going to take time for the business

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Speaker 3: to put that keble to work, so hopefully they do

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Speaker 3: a good job.

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Speaker 1: Yeah, have obviously a lot of retric today from the

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Speaker 1: Finance minister. Have the big banks share prices reacted to

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Speaker 1: the news?

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Speaker 2: Well, I think it's earlier, right.

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Speaker 3: It's going to take time for investors to really analyze

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Speaker 3: what this revised financial politive limit and what the reserve

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Speaker 3: bank expectations change mean. You know, we are going to

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Speaker 3: watch closely what the risk waiting for bank lending and

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Speaker 3: the minimum capital requirements for new interrants. Those they're probably

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Speaker 3: the two biggis and soon as the announcements. But yeah, look,

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Speaker 3: the initial reaction was pretty muted. Australian bank shap price

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Speaker 3: was actually down a half a percent to thirty eight

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Speaker 3: sixty Australian we spacked twenty flat thirty two seventy seven

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Speaker 3: Australian CBA actually up one percent to one hundred and

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Speaker 3: fifty eight dollars eighty Australian. The interesting one's A ANDZ.

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Speaker 3: That shap price was down three point four percent to

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Speaker 3: Australian thirty dollars ten. The current chief executive officer, Shane Elliott,

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Speaker 3: has retired and as replacement is a chap called Nuna

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Speaker 3: Metos who's come from HSBC. So the market was kind

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Speaker 3: of a bit there. So no I think in today,

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Speaker 3: no reaction from the Australian banks at this stage. But look,

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Speaker 3: you know, give it twenty four hours that maybe some

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Speaker 3: move tomorrow.

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Speaker 1: All right, we'll keep an eye on it. What about

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Speaker 1: Aulkland International Airport? Obviously the council has sold off its years.

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Speaker 3: Any change, Yeah, Look, I think what we've seen is

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Speaker 3: that that saildown was really well accepted by a wide

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Speaker 3: range of investors. It increases this investable pool for US

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Speaker 3: and our KIV servers, Ryan and others, and so we

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Speaker 3: have actually seen the sheep price go up again today,

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Speaker 3: up another two point seven percent to eight dollars twenty

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Speaker 3: four and one of the main reasons was because it's

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Speaker 3: waiting in the benchmark insoex fifty, that's the one that

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Speaker 3: many people's qis that are a match too, went up

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Speaker 3: really good demand, and I think that opens the door

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Speaker 3: for other quality defensive businesses to potentially seut on blocks.

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Speaker 3: And if I think about some of the council in

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Speaker 3: stakes and they port a tarra or maype your port

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Speaker 3: and even some of the usialand government owned stakes and

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Speaker 3: companies like Meridian, Mercury Genesis, and of course KII Bank.

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Speaker 1: Today, Yeah, yeah, I hate. I see Jerome Powell. Trump

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Speaker 1: has said you can keep your job for now. I

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Speaker 1: think I think he's on to turn three to twenty

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Speaker 1: twenty six. But the Fed obviously making another rate cut decision.

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Speaker 1: We had weaker US unemployment data come out, a softer

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Speaker 1: US unemployment data to come out last week. What do you pick?

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Speaker 3: Yeah, I think we are on track for the Fed

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Speaker 3: to cut another point two five percent that's due next

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Speaker 3: week on the eighteenth, and the market is sidly baked

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Speaker 3: and about eighty five percent probably that occurring after these

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Speaker 3: week your own employment data. That helping you see all that,

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Speaker 3: Brian that the US Fed speakers they've been sort of

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Speaker 3: go now we can perhaps tape taper the pace of

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Speaker 3: rate cups. That activity is really strong in the US,

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Speaker 3: it's robust, and certainly inflation it's slowing, but we're just

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Speaker 3: keeping one it. Yeah, the odds are that they're going

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Speaker 3: to cut another point two five percent.

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Speaker 1: The Chinese Central Economic Work Conference.

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Speaker 3: Sell it to me, Shane, Yeah, it's one that's a

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Speaker 3: bit of a sleeper people.

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Speaker 2: Don't keep an eye on, and you've picked it up. Well.

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Speaker 3: It's an extension of the Poop Bureau meeting that happened

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Speaker 3: a few months ago when the Chinese government actually have

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Speaker 3: a bunch of different policies to try and stimulate the economy.

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Speaker 3: And of course we're in a Trump trade war two

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Speaker 3: point zero environment. Now the Chinese regulators can perhaps see

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Speaker 3: some of the policy coming down. So we're going to

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Speaker 3: be looking for policies that support domestic demand next year,

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Speaker 3: particularly in property and consumption. You know, this is a

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Speaker 3: pretty cautious about getting too much out. We're not expecting

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Speaker 3: a lot, but there could be some upside, particularly for

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Speaker 3: New Zealand. Goods and services explorers. If we do see

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Speaker 3: some more stimulus STUF to come through the Chinese economy

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Speaker 3: obviously been pretty slow with the last few years.

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Speaker 1: Yeah, absolutely crucial for us and really interesting analysis Shane.

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Speaker 1: Thank you very much. Shane Soley the harbor Asset Management

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Speaker 1: with us this evening just gone twenty four minutes after six.

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