1 00:00:00,120 --> 00:00:05,080 Speaker 1: With me. Now is Shane Solly Harbor Asset Management has Shane. Hello, Heather, Now, 2 00:00:05,160 --> 00:00:07,200 Speaker 1: how have the markets reacted to the EU and the 3 00:00:07,280 --> 00:00:08,360 Speaker 1: US doing this trade deal? 4 00:00:09,039 --> 00:00:11,520 Speaker 2: Well, yeah, after a bit of golf in the weekend 5 00:00:11,560 --> 00:00:14,159 Speaker 2: in Scotland, mister Trump on bar of the US is 6 00:00:14,400 --> 00:00:16,560 Speaker 2: cut a deal with the European Union and now see 7 00:00:17,320 --> 00:00:20,920 Speaker 2: EU face fifteen percent tariffs on most of US exports. 8 00:00:21,040 --> 00:00:22,439 Speaker 3: That means they avoid. 9 00:00:22,120 --> 00:00:25,119 Speaker 2: The thirty percent plus number that mister Trump tariff did 10 00:00:25,120 --> 00:00:25,799 Speaker 2: a little while ago. 11 00:00:26,480 --> 00:00:30,600 Speaker 3: It doesn't include pharmaceuticals and metal sets. It's except so 12 00:00:30,640 --> 00:00:31,520 Speaker 3: the market likes it. 13 00:00:31,600 --> 00:00:34,920 Speaker 2: But what the market's also focusing on either is tonight 14 00:00:35,120 --> 00:00:39,400 Speaker 2: in Stockholm, mister percent the Treasury Secretary for the US 15 00:00:39,479 --> 00:00:42,360 Speaker 2: is meeting with the Chinese and there's arena come out 16 00:00:42,400 --> 00:00:44,800 Speaker 2: of the South China Morning Post saying that they're going 17 00:00:44,840 --> 00:00:48,400 Speaker 2: to extend the tariff truce by another three months. No sources, 18 00:00:48,440 --> 00:00:51,320 Speaker 2: of course, but that would mean that we're seeing that 19 00:00:51,400 --> 00:00:54,000 Speaker 2: can kick down the road. Seeing I think this greater 20 00:00:54,160 --> 00:00:58,200 Speaker 2: certainty that we're seeing at the European deal, the Japanese 21 00:00:58,200 --> 00:01:00,640 Speaker 2: deal last year, just taking some of the risk away 22 00:01:01,080 --> 00:01:05,840 Speaker 2: for capital markets, supporting a further broad based recovery and 23 00:01:06,160 --> 00:01:08,160 Speaker 2: shear markets. Even our share market today had a bit 24 00:01:08,160 --> 00:01:10,959 Speaker 2: of a balance today either up zero point four percent, 25 00:01:11,000 --> 00:01:13,080 Speaker 2: but will take it so be more positive. 26 00:01:13,319 --> 00:01:16,120 Speaker 1: How good do you think that Donald Trump's pressure is 27 00:01:16,160 --> 00:01:18,840 Speaker 1: going to lead to a cut by the Federal Reserve 28 00:01:18,880 --> 00:01:19,319 Speaker 1: this week? 29 00:01:21,440 --> 00:01:24,600 Speaker 2: Certainly heaping on the pressure the short answers Our markets 30 00:01:24,600 --> 00:01:27,000 Speaker 2: don't think so. The market thinks the Federal Open Market 31 00:01:27,000 --> 00:01:29,560 Speaker 2: Committee it's going to hold the Fed funds rate at 32 00:01:29,560 --> 00:01:33,440 Speaker 2: four point twenty five four point five percent range on Thursday, 33 00:01:34,240 --> 00:01:37,200 Speaker 2: watching for changes in the language, which you know, the 34 00:01:37,440 --> 00:01:40,640 Speaker 2: US economy is in pretty resilient. The inflation is coming 35 00:01:40,680 --> 00:01:42,880 Speaker 2: in lower, of course, so it's getting harder for the 36 00:01:43,000 --> 00:01:46,000 Speaker 2: US Federal Reserve to say no. Every central bank wants 37 00:01:46,040 --> 00:01:48,400 Speaker 2: to see what tarrifs do, so there'll be a few 38 00:01:48,400 --> 00:01:51,800 Speaker 2: dissenters on the committee. We would not be surprised to 39 00:01:51,840 --> 00:01:54,440 Speaker 2: see cuts by the US Federal Reserve later in the year. 40 00:01:54,800 --> 00:01:59,120 Speaker 2: Markets thinking December and another one in twenty six. On Thursday, 41 00:01:59,160 --> 00:02:00,880 Speaker 2: we might get a little bit of a skew saying 42 00:02:01,240 --> 00:02:04,240 Speaker 2: the cuts are going to be earlier or more substantial, 43 00:02:04,320 --> 00:02:07,240 Speaker 2: So that will be driven by data. Mister Powell has 44 00:02:07,360 --> 00:02:10,399 Speaker 2: j Powell, the head of the FED, has been very 45 00:02:11,160 --> 00:02:13,800 Speaker 2: resilient in pushing back on political pressure. 46 00:02:14,440 --> 00:02:17,360 Speaker 1: Now we've had quite a few changes a spark today. 47 00:02:17,400 --> 00:02:18,400 Speaker 1: What's the market made of this? 48 00:02:19,440 --> 00:02:23,200 Speaker 2: Yeah, so we've seen a couple of board member changes 49 00:02:23,520 --> 00:02:28,640 Speaker 2: Lindsay Wright, Vincehawksworth and Trek Robaouta coming on and Gordon McLeod. 50 00:02:28,280 --> 00:02:31,080 Speaker 3: And Sheridan Broadbent coming off. Spark. 51 00:02:31,680 --> 00:02:34,040 Speaker 2: The Altellicomusine has been on a lot of pressure to 52 00:02:34,080 --> 00:02:38,520 Speaker 2: refresh the board after share price has underperformed basically over 53 00:02:38,560 --> 00:02:40,240 Speaker 2: the last three years. 54 00:02:40,320 --> 00:02:42,200 Speaker 3: It's underperformed by forty. 55 00:02:41,960 --> 00:02:44,720 Speaker 2: Eight percent versus the rest of the market, Ie the 56 00:02:44,880 --> 00:02:47,560 Speaker 2: New Zealand sharemakers have about forty percent in the three 57 00:02:47,600 --> 00:02:50,880 Speaker 2: years and sparks down thirty four percent. How did the 58 00:02:50,919 --> 00:02:54,400 Speaker 2: market react? Went up the share price. Sparkshire price went 59 00:02:54,440 --> 00:02:57,240 Speaker 2: up zoerio point four percent to two dollars forty nine 60 00:02:57,360 --> 00:03:00,000 Speaker 2: So kind of people are taking it and saying yep. 61 00:02:59,840 --> 00:03:03,240 Speaker 3: To actually interesting, useful, Let's see what happens next. Yes, 62 00:03:03,600 --> 00:03:04,040 Speaker 3: see some. 63 00:03:04,040 --> 00:03:07,000 Speaker 1: More absolutely brilliant stuff. Shane, thanks so much, look after yourself. 64 00:03:07,040 --> 00:03:09,560 Speaker 1: We'll talk to you next week. Shane Soly Harbor Asset Management. 65 00:03:09,760 --> 00:03:11,960 Speaker 2: For more from Hither duplessy Allen Drive. 66 00:03:12,120 --> 00:03:13,560 Speaker 3: Listen live to news talks. 67 00:03:13,560 --> 00:03:16,760 Speaker 2: It'd be from four pm weekdays, or follow the podcast 68 00:03:16,840 --> 00:03:17,799 Speaker 2: on iHeartRadio.