Latest / Best of Business / Shane Solly: Harbour Asset Management expert on what the renewed Middle East conflict means for the markets

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Shane Solly: Harbour Asset Management expert on what the renewed Middle East conflict means for the markets · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks. It'd be
• 0:12
  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: And let's talk about business and let's talk about investment markets.
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  Speaker 2: I'm joined by Shane Soley from Harbor Asse It Management.
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  Speaker 3: Hella, Shane, Yeah, Hey, how are you going?
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  Speaker 2: So she's all on Iran and the United States, she's
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  Speaker 2: all wrong with drones being sent to Cuba by Russia.
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  Speaker 2: She's all on everywhere. So what does all this all
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  Speaker 2: on mean for investment markets?
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  Speaker 3: Yeah? Look, I think we've seen a bit of a
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  Speaker 3: risk off across markets today. Cermainly that climb and energy
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  Speaker 3: prices you talked about earlier that increases the odds of
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  Speaker 3: a central bank bank rate increase. What we saw on Friday,
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  Speaker 3: and this was the market in the US. We're starting
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  Speaker 3: to get a win of something going on. The US
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  Speaker 3: tenure government bond. You that at four point five six percent,
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  Speaker 3: that's well above where it was in the June, that
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  Speaker 3: was at four point four Thists have started to price
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  Speaker 3: in a bit more sticky underlying INFLACI risk, but the
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  Speaker 3: riskers they go up tonight Here in New Zeon, tenure
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  Speaker 3: buyers are up zero point two percent to four point
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  Speaker 3: six two percent, again well up on their June lows
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  Speaker 3: of four point three six We've seen Asia Pacific markets
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  Speaker 3: roll off, the red hot Korean tech market down eight
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  Speaker 3: point eight percent today, that high flying s K Henex
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  Speaker 3: down forteen percent, gave back all of Friday's games. Is
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  Speaker 3: it into the US? As you touched on New zeal
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  Speaker 3: market that week are led by some of our large
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  Speaker 3: caps Fishing and Bikeway to Auckland Newport Futures Andrew are
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  Speaker 3: suggesting that we're going to see the U S SHI
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  Speaker 3: market down, the U S ANDP down half percent, the
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  Speaker 3: narsdack which is taking you down one point two. Look,
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  Speaker 3: this whole increased geopolitical risk, increases increases uncertainty. And while
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  Speaker 3: we've got a bunch of company reporting coming up the
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  Speaker 3: US that should be okay, this is going to take
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  Speaker 3: some of the risk out.
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  Speaker 2: Yeah, well it's because it keeps on rolling on and
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  Speaker 2: just when we think we're out, we're not out, and
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  Speaker 2: that creates even more uncertainty. Now we had to begin
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  Speaker 2: z New Zealand performance of Stain index for June out today.
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  Speaker 2: First of all, what on earth is a performance of
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  Speaker 2: service index? And was there any good news in it.
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  Speaker 3: Yeah, there was a little bit array of sunshine. This
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  Speaker 3: really measures how the broad service economy goes, how the
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  Speaker 3: confidence levels are, and we saw a recovery up two
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  Speaker 3: point six percent to fifty point six. Above fifty means
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  Speaker 3: people are feeling a bit more optimistic, they're looking to
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  Speaker 3: expand they might look to hire again. Last week we
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  Speaker 3: had the manufacturing Performance of Manufacturing Index NET jumped to
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  Speaker 3: fifty nine points of them, so quite a lot more.
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  Speaker 3: But still this today is it's good. It's above fifty,
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  Speaker 3: one of the strongest we've had in the last three years.
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  Speaker 3: All work. You know, we've got a little way to go.
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  Speaker 3: New Orders was probably the biggest strongest sub index andrew
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  Speaker 3: up to fifty three, so people are back putting the
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  Speaker 3: mature in the system. It's a big part of the
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  Speaker 3: economy that covers a lot of a lot of manfact
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  Speaker 3: services business non manufacturing services, so it's important.
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  Speaker 2: Good Stefan, I thank you so much for time today,
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  Speaker 2: Shane Solely from Harvard Asset Management.
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