1 00:00:00,160 --> 00:00:02,880 Speaker 1: Shane solely harbor asset management with me. Now heys, Shane, 2 00:00:03,400 --> 00:00:05,040 Speaker 1: get out here there. Okay, So what's happened with the 3 00:00:05,040 --> 00:00:06,640 Speaker 1: Canadian government and the US government. 4 00:00:07,240 --> 00:00:10,040 Speaker 2: Yeah, so on Friday atternnon mister Trump said, look it's 5 00:00:10,080 --> 00:00:12,400 Speaker 2: on social media. We're going to stop, going to terminate 6 00:00:12,400 --> 00:00:14,920 Speaker 2: trade discussions because the Canadians are going to put in 7 00:00:14,960 --> 00:00:18,960 Speaker 2: place a digital services tax on Monday. Well funny other 8 00:00:19,040 --> 00:00:22,440 Speaker 2: then this afternoon is on time. The Canadian government rescinded 9 00:00:22,600 --> 00:00:25,799 Speaker 2: the planned digital services tax on the basis they're going 10 00:00:25,840 --> 00:00:28,360 Speaker 2: to try and reopen trade talks. In fact, they've actually 11 00:00:28,360 --> 00:00:29,880 Speaker 2: come out and said, look, we want to have a 12 00:00:29,880 --> 00:00:31,800 Speaker 2: trade deal with US by the twenty fifth of July. 13 00:00:32,560 --> 00:00:35,160 Speaker 2: And of course this clock's ticking here for the July 14 00:00:35,240 --> 00:00:38,239 Speaker 2: at night tariff negotiations. So there's a bit of a 15 00:00:38,240 --> 00:00:40,839 Speaker 2: deadline out there. We expect perhaps some other countries do 16 00:00:40,920 --> 00:00:42,959 Speaker 2: some of my things, UK, France, Spain, They've all got 17 00:00:42,960 --> 00:00:45,400 Speaker 2: these types of things they want to get back onside 18 00:00:45,440 --> 00:00:48,839 Speaker 2: with the White House. So capital markets, we all think 19 00:00:48,880 --> 00:00:50,320 Speaker 2: the can is going to get kicked down the road, 20 00:00:50,360 --> 00:00:52,639 Speaker 2: but the dealers get extended. But you know there will 21 00:00:52,680 --> 00:00:55,120 Speaker 2: be some viotority around it nonetheless. 22 00:00:54,720 --> 00:00:56,560 Speaker 1: Yeah, and so what happened with the US share market 23 00:00:56,600 --> 00:00:57,800 Speaker 1: that it hit those highs. 24 00:00:58,360 --> 00:01:00,960 Speaker 2: Yeah, So we hit all time highs on Friday. You know, 25 00:01:01,000 --> 00:01:03,920 Speaker 2: it's a bit of a combination of these geopolitical rests 26 00:01:03,920 --> 00:01:08,600 Speaker 2: falling some more positive trade tarf deal rhetoric, particularly between 27 00:01:08,760 --> 00:01:11,040 Speaker 2: US and China and Europe. There's a bit of a 28 00:01:11,360 --> 00:01:13,400 Speaker 2: setup going on there. And also the US Fed a 29 00:01:13,440 --> 00:01:16,479 Speaker 2: reserve rate cut hope, So a bit of a combination 30 00:01:16,600 --> 00:01:19,280 Speaker 2: there that that opposite, we had some weaker US data 31 00:01:19,360 --> 00:01:23,280 Speaker 2: out on Friday. Growth indicators down and inflation indicator has 32 00:01:23,319 --> 00:01:26,200 Speaker 2: been quite stubborn. So there's been a few offsets, but 33 00:01:26,280 --> 00:01:28,120 Speaker 2: net net positive outcome. 34 00:01:28,560 --> 00:01:30,160 Speaker 1: How's our economy looking at the moment? 35 00:01:31,280 --> 00:01:33,720 Speaker 2: Interesting day to day. We had the AZ Business Confidence 36 00:01:33,760 --> 00:01:36,120 Speaker 2: that indicator out for June that was actually showed a 37 00:01:36,160 --> 00:01:38,880 Speaker 2: really strong bounce from very low levels. But against that, 38 00:01:38,920 --> 00:01:42,000 Speaker 2: we've had employment data which is this actual job growth 39 00:01:42,040 --> 00:01:44,080 Speaker 2: is pretty sluggish, which won't be a surprise for some 40 00:01:44,120 --> 00:01:46,640 Speaker 2: people out there. It's sort of drop into the AZ 41 00:01:46,760 --> 00:01:49,880 Speaker 2: Business confidence number. It actually went to forty six point three. 42 00:01:50,400 --> 00:01:53,520 Speaker 2: That means the economy is still below an expansion level. 43 00:01:53,520 --> 00:01:55,520 Speaker 2: But the really important thing here is a big bounce 44 00:01:55,520 --> 00:01:58,400 Speaker 2: and own activity. This is business are saying we think 45 00:01:58,440 --> 00:02:00,120 Speaker 2: we're going to get better. That up to forty point 46 00:02:00,200 --> 00:02:03,400 Speaker 2: nine from last month month thirty four point eight. And 47 00:02:03,560 --> 00:02:05,840 Speaker 2: the really important thing here the government might be keen 48 00:02:05,840 --> 00:02:08,440 Speaker 2: to see that there's been a big lift in investment 49 00:02:08,480 --> 00:02:12,200 Speaker 2: intentions up from nine points to nine point nine. The 50 00:02:12,680 --> 00:02:15,200 Speaker 2: accept the leading the way. Unfortunately, as I say, these 51 00:02:15,320 --> 00:02:18,160 Speaker 2: job growth numbers for May pretty sluggish, only up point 52 00:02:18,160 --> 00:02:20,840 Speaker 2: one of a percent month or month, which means we're 53 00:02:20,880 --> 00:02:24,080 Speaker 2: actually down one point five percent for the year to 54 00:02:24,160 --> 00:02:26,600 Speaker 2: two point three five million, So pretty choppy out the 55 00:02:26,639 --> 00:02:28,919 Speaker 2: head as we know. But the indicators there's a bit 56 00:02:28,960 --> 00:02:31,280 Speaker 2: of sunshine we are with potentially on the custom of 57 00:02:31,320 --> 00:02:32,359 Speaker 2: the economic expansion. 58 00:02:32,680 --> 00:02:34,400 Speaker 1: Yeah, I'm so happy to hear at Shane. Thank you 59 00:02:34,480 --> 00:02:37,359 Speaker 1: very much, appreciate it. Shane Soley, Harbor Asset Management. 60 00:02:37,919 --> 00:02:41,040 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 61 00:02:41,160 --> 00:02:44,200 Speaker 2: News Talks. It'd be from four pm weekdays, or follow 62 00:02:44,240 --> 00:02:45,959 Speaker 2: the podcast on iHeartRadio.