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Speaker 1: Shane Salu with Harbor Asset Management with US tonight High Shane. Yeah, right,

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Speaker 1: So we obviously had a pretty bad week on the

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Speaker 1: US stock market last week and it continues today.

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Speaker 2: Oh look, you know, this rapid pace of policy announcements

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Speaker 2: from the Trump government is really putting invesias on the

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Speaker 2: back foot. And we've got to the point now where

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Speaker 2: and this is are worried about growth. A couple of

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Speaker 2: things behind that, This government efficiency drive, led by this

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Speaker 2: new Department of Government Efficiency and the Terriff announcements has

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Speaker 2: seen a drop and consensus market growth focus and got

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Speaker 2: to the point where late last week we saw US

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Speaker 2: Federal Reserve Bank, Chium and Joan Power Coms had actually economies. Okay,

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Speaker 2: Munkey policys sittings are appropriate, but that sort of the

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Speaker 2: shear market come up a little bit on Friday, but

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Speaker 2: over all the week was really soft in the US

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Speaker 2: market because of these slower growth numbers. So yeah, bit

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Speaker 2: of a challenge certainly, getting efficiency is costing a little

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Speaker 2: bit of growth.

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Speaker 1: Yeah, And is the way he's talking as well, I

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Speaker 1: mean even the last twenty four hours talking about the

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Speaker 1: possibility of a recession.

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Speaker 2: Yeah, that's right, And we've got one of his key

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Speaker 2: policy advisors. Mister aren't saying hey, look right from the

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Speaker 2: get go, I was asked to how Toway get efficiency

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Speaker 2: without breaking the economy. So mister Trump is definitely testing

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Speaker 2: the boundaries back here.

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Speaker 1: Fonterra increased its profit guidance today. What was behind that move?

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Speaker 2: Yeah, look a good good uplift from Fontira that they've

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Speaker 2: got a building bit of a track. We've got a

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Speaker 2: beating expectations. This was better than expected. They've lifted earning

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Speaker 2: specieer guidance from forty to sixty cents to fifty five

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Speaker 2: to seventy five. And really it's just back to basically

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Speaker 2: good underlying ingredients business, you know, driving upgrades. This dairy

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Speaker 2: payps obviously very helpful for the Boorday, New Zealand economy.

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Speaker 2: But they've certainly got a much better run demand and

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Speaker 2: supply going their way, so they're in a good spot.

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Speaker 1: They're also and we've spoken about this a lot, wanting

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Speaker 1: to divest the consumer business mainland. It's they've now started

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Speaker 1: doing their road show up and down in the country.

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Speaker 1: Is part of this kind of process. What's the reaction

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Speaker 1: to the information they've been sharing being like.

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Speaker 2: Yeah, look, so this Mainland is that consumer business that

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Speaker 2: produces products like anchor milk and Mainland and Capity dairy

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Speaker 2: products we know of and these on Australia, it's also

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Speaker 2: in parts of Asia. The business they've just given us

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Speaker 2: a little bit of detail on is Smidge. To be

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Speaker 2: honest with youryan, the start hopefully of some more information.

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Speaker 2: So they're running a business that generated four point nine

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Speaker 2: billion dollars of revenue in two hundred million of earnings

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Speaker 2: before interest and tax in twenty twenty four, so it's

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Speaker 2: certainly got an okay base there, but they're running a

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Speaker 2: dual process, so we don't actually know whether it may

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Speaker 2: be listed or it may actually be sold to a

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Speaker 2: trade bier. So early days there's a lot of information

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Speaker 2: to come out. But the combination of that earnings upgrade

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Speaker 2: and release on Mainland that supported the fine terraship price

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Speaker 2: is actually up five percent to five dollars forty five,

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Speaker 2: almost back to its five year high. Still a bit

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Speaker 2: of around the Maniam process, but we're getting a bit

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Speaker 2: more confidence that this is getting a bit more confidence

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Speaker 2: around earning space in the capital base for Fontira. So yeah,

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Speaker 2: a bitter day for Fonterra.

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Speaker 1: A tech for them today. What results should we be

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Speaker 1: looking forward to this week.

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Speaker 2: Yeah, it's very much about macroeconomics, to be honest with

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Speaker 2: your Ryan Sore. Will be some big data points out

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Speaker 2: of the US, particularly some inflation points, and again going

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Speaker 2: back to mister Jeron Powell from the FED saying everything's okay,

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Speaker 2: we need some more confilation about particularly with inflation. And

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Speaker 2: then later in the week we've got some US job

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Speaker 2: jobs data, and so it's the trade off between hot

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Speaker 2: enough hot enough in the economy not too cold in

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Speaker 2: the economy for him to keep those interest rates in

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Speaker 2: the right setting. We've got a Bank of Canada official

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Speaker 2: rate call. Now normally you could go why why does

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Speaker 2: that matter? Well, they've actually been quite a lead indicator

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Speaker 2: for other central banks and so they've been really cutting

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Speaker 2: rates aggressively, and obviously they're in the midst of a

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Speaker 2: bit of a trade war with the US. But really

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Speaker 2: I think we're going to keep focusing on these trade

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Speaker 2: tariff news and fortunately it's going to keep it's pretty busy.

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Speaker 1: It certainly is. Shane, thank you for that. Shane Solly

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Speaker 1: harrested management with the market update for this afternoon. For

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Speaker 1: more from Hither Duplessy Allen Drive, listen live to news

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