1 00:00:00,280 --> 00:00:03,000 Speaker 1: Shane solely Harbor Asset Management has with me. Now has Shane? 2 00:00:03,400 --> 00:00:04,880 Speaker 2: Hi, how are you well? 3 00:00:04,920 --> 00:00:06,320 Speaker 1: Thank you Shan. Let's have anal quick look at the 4 00:00:06,400 --> 00:00:08,000 Speaker 1: US first, right, So we've got the interest rates for 5 00:00:08,000 --> 00:00:10,200 Speaker 1: the government bonds and the markets falling on Friday. 6 00:00:10,240 --> 00:00:13,680 Speaker 2: What happened? Yeah, Look, we had some weak non farm 7 00:00:13,720 --> 00:00:16,640 Speaker 2: payroll data and the markets are jumping around a bit 8 00:00:16,640 --> 00:00:19,240 Speaker 2: on economic data points. We're having good data bad data, 9 00:00:19,280 --> 00:00:21,680 Speaker 2: and we decided this is bad data. And what we 10 00:00:21,720 --> 00:00:26,560 Speaker 2: saw is this expectations of the US Fedual Reserve increasing 11 00:00:26,640 --> 00:00:28,840 Speaker 2: its cuts or bringing forwards cuts. It's due to meat 12 00:00:28,920 --> 00:00:31,520 Speaker 2: on the seventeenth this week, sorry, next week, we should 13 00:00:31,520 --> 00:00:34,080 Speaker 2: say to talk about this. And so the market's now 14 00:00:34,400 --> 00:00:37,839 Speaker 2: based on this week economic data dragged forward expectations of cuts, 15 00:00:37,680 --> 00:00:40,680 Speaker 2: and so we're actually seeing the two year government bond year, 16 00:00:40,720 --> 00:00:43,640 Speaker 2: which is an important bench mark, down at three sixty 17 00:00:43,640 --> 00:00:46,800 Speaker 2: five three point six five versus five point two percent 18 00:00:47,120 --> 00:00:49,760 Speaker 2: back in October twenty three. At the same time, we 19 00:00:49,800 --> 00:00:53,320 Speaker 2: also had Broadcom, which is one of the big semiconductor chipmakers, 20 00:00:53,360 --> 00:00:55,720 Speaker 2: come out with a week number on Friday, and that 21 00:00:55,840 --> 00:00:59,040 Speaker 2: saw the US shar market come off of it down 22 00:00:59,040 --> 00:01:01,560 Speaker 2: one point seven percent. Still up only thirteen percent for 23 00:01:01,600 --> 00:01:03,680 Speaker 2: the year, so maybe a little bit of a healthy 24 00:01:03,800 --> 00:01:06,640 Speaker 2: correction rather than mountdown. But that certainly caused a bit 25 00:01:06,640 --> 00:01:08,160 Speaker 2: of a bit of old tidy. 26 00:01:08,560 --> 00:01:11,440 Speaker 1: And so did this this weakness I suppose impact the 27 00:01:11,480 --> 00:01:12,240 Speaker 1: local markets. 28 00:01:12,600 --> 00:01:15,600 Speaker 2: Yeah, it's a good point. Local interest rates pretty stable 29 00:01:15,640 --> 00:01:18,080 Speaker 2: and we actually saw the New Zealand shear market up slightly. 30 00:01:18,560 --> 00:01:22,000 Speaker 2: In you know, we don't have these big cyclical semiconductor 31 00:01:22,080 --> 00:01:24,800 Speaker 2: cell's companies like Infrato for shrimp up with health Care, 32 00:01:24,880 --> 00:01:27,600 Speaker 2: Contact Energy, Gin Track, Walk On Airport. They actually we 33 00:01:27,600 --> 00:01:30,319 Speaker 2: all up and boosted the ZL market infantile. You know 34 00:01:30,360 --> 00:01:33,760 Speaker 2: that share price continues to go strength to strength in 35 00:01:33,920 --> 00:01:36,720 Speaker 2: certainly where it's all about data centers, it's all about 36 00:01:36,720 --> 00:01:39,280 Speaker 2: being included in Australian shar market indebts. 37 00:01:39,760 --> 00:01:41,640 Speaker 1: Hey, so what are you looking for this week that 38 00:01:41,680 --> 00:01:43,280 Speaker 1: you think might influence the markets? 39 00:01:43,680 --> 00:01:46,760 Speaker 2: A big week for polities in the US. Of course, 40 00:01:46,760 --> 00:01:51,080 Speaker 2: we've got the Tuesday, the Trump Harris presidential debate. Now 41 00:01:51,120 --> 00:01:53,360 Speaker 2: that could just be it's an important catalyst. So obviously 42 00:01:53,360 --> 00:01:55,320 Speaker 2: they're running pretty nick and neck at the moment and 43 00:01:55,400 --> 00:01:58,240 Speaker 2: capital markets are just looking for any sort of surprise 44 00:01:58,400 --> 00:02:01,240 Speaker 2: policy change. Do you think that PEPs they haven't drawn 45 00:02:01,280 --> 00:02:05,000 Speaker 2: out earlier. And then on Thsday with the European Central 46 00:02:05,040 --> 00:02:09,040 Speaker 2: Bank it is expected to cut interest rates, joining this 47 00:02:09,720 --> 00:02:12,560 Speaker 2: central bank club of neutralizing rates to take pressure of 48 00:02:12,600 --> 00:02:14,799 Speaker 2: the economy. So everybody's looking at the slowing rate of 49 00:02:14,880 --> 00:02:17,960 Speaker 2: economic growth and saying those rates sittings too tight. 50 00:02:18,760 --> 00:02:20,400 Speaker 1: Interesting, Shane, are you going to watch the debate? 51 00:02:20,480 --> 00:02:20,680 Speaker 2: Are you? 52 00:02:20,720 --> 00:02:24,160 Speaker 1: Are you going to be an absolute sucker for this politics. 53 00:02:24,280 --> 00:02:26,760 Speaker 2: I'm a bit of a tragic on this stuff, you know. 54 00:02:27,280 --> 00:02:30,840 Speaker 2: It was. It was a great Howard Marks comment on 55 00:02:30,880 --> 00:02:33,120 Speaker 2: the weekend about somebody's going to win on this and 56 00:02:33,160 --> 00:02:34,919 Speaker 2: I'm not sure even going to be great, And it 57 00:02:34,960 --> 00:02:38,320 Speaker 2: was just sort of like, we've got to be aware 58 00:02:38,360 --> 00:02:40,800 Speaker 2: of what these policy changes can dig off back, but 59 00:02:40,919 --> 00:02:44,120 Speaker 2: let's just hope they can all at least be civilized. 60 00:02:44,440 --> 00:02:47,919 Speaker 1: Well, it's much less fun, Shane, Thank you very much. 61 00:02:48,040 --> 00:02:51,600 Speaker 1: I appreciated Shane Solly Harbor Asset Management. For more from 62 00:02:51,680 --> 00:02:54,760 Speaker 1: Hither Duplessy Alan Drive, listen live to news talks. 63 00:02:54,760 --> 00:02:57,960 Speaker 2: It'd be from four pm weekdays, or follow the podcast 64 00:02:58,040 --> 00:02:59,000 Speaker 2: on iHeartRadio.