1 00:00:00,120 --> 00:00:02,480 Speaker 1: Now Shane solely Harbor Asset Management is with us ELLO. 2 00:00:02,520 --> 00:00:03,880 Speaker 2: Shane, Hey you that. 3 00:00:04,480 --> 00:00:06,800 Speaker 1: So the US inflation data came out late last week, 4 00:00:06,880 --> 00:00:09,160 Speaker 1: lower than expected. What do you make of it? 5 00:00:10,080 --> 00:00:12,480 Speaker 2: Yeah, so US consider price inflation that was add on 6 00:00:12,520 --> 00:00:14,920 Speaker 2: Friday for January came in at zero point two percent. 7 00:00:15,320 --> 00:00:19,479 Speaker 2: There's the smallest increase since July. Heather all about lower 8 00:00:19,600 --> 00:00:23,279 Speaker 2: energy prices, both electricity and gasoline. Key thing for markets 9 00:00:23,440 --> 00:00:25,599 Speaker 2: was it wasn't a big blowout. So market's starting to 10 00:00:25,640 --> 00:00:28,640 Speaker 2: think about us cpis at two and half percent year 11 00:00:28,640 --> 00:00:31,639 Speaker 2: on year US figure reserved. They make better cut rates 12 00:00:31,640 --> 00:00:33,520 Speaker 2: a few more times, two or three times this year. 13 00:00:34,240 --> 00:00:36,440 Speaker 2: Important for us here in Zealand because it actually helps 14 00:00:36,520 --> 00:00:38,479 Speaker 2: with the cost of borrowing for our government and some 15 00:00:38,520 --> 00:00:41,720 Speaker 2: of our businesses to netboost for a few other businesses 16 00:00:41,760 --> 00:00:42,200 Speaker 2: as well. 17 00:00:42,760 --> 00:00:45,400 Speaker 1: Now we've got obviously the RB and Z having a 18 00:00:45,440 --> 00:00:47,760 Speaker 1: chat to us on Wednesday. We're expecting that they're going 19 00:00:47,800 --> 00:00:49,080 Speaker 1: to hint at some rate increases. 20 00:00:50,080 --> 00:00:53,000 Speaker 2: Yeah, look, the market's not pricing anything, and so forward 21 00:00:53,080 --> 00:00:56,040 Speaker 2: interest rate curves are pricing thing for Wednesday, but they 22 00:00:56,080 --> 00:01:00,360 Speaker 2: are pricing in an increase in September or October this year. 23 00:01:00,480 --> 00:01:03,280 Speaker 2: So you potential for another zero point two five percent 24 00:01:03,760 --> 00:01:06,640 Speaker 2: in September October. In fact, the market's actually pricing and 25 00:01:07,280 --> 00:01:09,760 Speaker 2: official cash rates to be at three percent by April 26 00:01:09,760 --> 00:01:11,800 Speaker 2: twenty seven. There can be this with two point twenty 27 00:01:11,840 --> 00:01:14,920 Speaker 2: five percent today, there is a bit of a rest 28 00:01:14,959 --> 00:01:17,520 Speaker 2: that markets have got to hit themselves. We expect the 29 00:01:17,560 --> 00:01:20,479 Speaker 2: Reserve Bank to be quite balanced in its tone. It's 30 00:01:20,520 --> 00:01:22,480 Speaker 2: a tough line. We've got inflation is a bit sticky, 31 00:01:22,560 --> 00:01:24,479 Speaker 2: but then at the same time we've got very choppy 32 00:01:24,480 --> 00:01:27,959 Speaker 2: economic data and labor markets they're not particularly strong, so 33 00:01:28,520 --> 00:01:31,679 Speaker 2: maybe the policymakers can hold off on hiking rates in 34 00:01:31,680 --> 00:01:32,160 Speaker 2: the near ten. 35 00:01:32,800 --> 00:01:35,400 Speaker 1: Now we've had the three company results out today here 36 00:01:35,400 --> 00:01:38,240 Speaker 1: in New Zealand. Give me a run through what you 37 00:01:38,319 --> 00:01:38,800 Speaker 1: thought of them? 38 00:01:39,400 --> 00:01:41,040 Speaker 2: Yeah, it was. It was a good day for a 39 00:01:41,080 --> 00:01:44,680 Speaker 2: company results today A two milk, Contact, Energy and freightways 40 00:01:44,680 --> 00:01:49,120 Speaker 2: out today, a too beat expectations driven interestingly by their 41 00:01:49,240 --> 00:01:52,400 Speaker 2: nutritionalist business, not all about their Chinese and for formula 42 00:01:52,440 --> 00:01:55,280 Speaker 2: business and Vietnam. Vietnam is a big growth market for 43 00:01:55,320 --> 00:01:57,600 Speaker 2: them now hasn't really been a driver before. Is now 44 00:01:58,240 --> 00:02:01,160 Speaker 2: a bit of excitement about the Chinese marriage data getting better, 45 00:02:01,240 --> 00:02:04,120 Speaker 2: So that's helpful for future demand for infant formula. SHEAP 46 00:02:04,160 --> 00:02:06,440 Speaker 2: prices up five percent to ten dollars fifty to day, 47 00:02:06,800 --> 00:02:09,720 Speaker 2: contacting a solid result, but the big one there Wordesday 48 00:02:09,720 --> 00:02:12,720 Speaker 2: announced a five hundred and twenty five million dollar new 49 00:02:12,720 --> 00:02:16,360 Speaker 2: equity rays to fund some of the big matricity generating 50 00:02:16,400 --> 00:02:19,519 Speaker 2: capacity development they're doing. SHEP price on that is about 51 00:02:19,520 --> 00:02:22,480 Speaker 2: eight seventy five. That's a seven percent plus discount to 52 00:02:22,520 --> 00:02:26,600 Speaker 2: where the extivnand price was on Friday. They don't trade 53 00:02:26,600 --> 00:02:28,880 Speaker 2: to Wednesday, so we don't know what that SHAP price 54 00:02:28,919 --> 00:02:32,720 Speaker 2: will do. Freightways good solid delivery from freightways. Interesting that 55 00:02:32,800 --> 00:02:36,040 Speaker 2: they're talking about the US economy steadily improving, but they're 56 00:02:36,040 --> 00:02:39,040 Speaker 2: still seeing their economy business grow better than their premium business. 57 00:02:39,200 --> 00:02:41,600 Speaker 2: Good boosts from their assie business. And that share price 58 00:02:41,680 --> 00:02:44,040 Speaker 2: up zero point six percent to forteen and sixty one 59 00:02:44,120 --> 00:02:46,520 Speaker 2: So Yeah, ship market was actually down today in New 60 00:02:46,560 --> 00:02:49,280 Speaker 2: zealone point six percent. They everybody tried to raise some 61 00:02:49,320 --> 00:02:52,480 Speaker 2: cash to fund their contact placement. Hopefully we'll get a 62 00:02:52,480 --> 00:02:54,280 Speaker 2: few more positive results for the rest of the week 63 00:02:54,360 --> 00:02:55,639 Speaker 2: to give the market a bit of a boost. 64 00:02:55,720 --> 00:02:57,960 Speaker 1: Yeah, Shane Diston thanks as always runningus through We'll talk 65 00:02:57,960 --> 00:03:00,680 Speaker 1: to you again next week Shane Sally of Harbor Asset Management. 66 00:03:01,200 --> 00:03:04,359 Speaker 1: For more from Hither Duplessy Allen Drive Listen live to 67 00:03:04,480 --> 00:03:05,000 Speaker 1: news talks. 68 00:03:05,040 --> 00:03:08,200 Speaker 2: It'd be from four pm weekdays, or follow the podcast 69 00:03:08,320 --> 00:03:09,320 Speaker 2: on iHeartRadio