Latest / Best of Business / Shane Solly: Harbour Asset Management spokesperson on the Government giving Kiwibank a cash injection to boost up banking competiton

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Shane Solly: Harbour Asset Management spokesperson on the Government giving Kiwibank a cash injection to boost up banking competiton · Best of Business

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  Speaker 1: You're listening to a podcast from News talks'd be follow
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  Speaker 1: this and our wide range of podcasts now on iHeartRadio.
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  Speaker 2: Well, we just had Nikola Willis, the Finance Minister on
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  Speaker 2: the program telling us that she is beefing up Kiwi Bank,
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  Speaker 2: allowing five hundred million dollars of extra capital into Kiwi
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  Speaker 2: Bank to try and bolster it, to try and make
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  Speaker 2: it more competitive against the Australian owned banks and hopefully
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  Speaker 2: increase competition in the sector, thereby reducing prices for us.
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  Speaker 2: Does that sound like a pipe dream? Let's go to
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  Speaker 2: Shane Soally Harborrestic Management, Shane good evening.
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  Speaker 3: Yeah, Hey Ryan, how are you good?
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  Speaker 2: Thank you? Is this plan going to work?
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  Speaker 3: Look?
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  Speaker 4: I think it's it's a start, right, there's a long
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  Speaker 4: way to go with this business. Certainly injecting another five
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  Speaker 4: and ared million into the business provised with a better
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  Speaker 4: competitive start point with Australian banks. I think importantly Minster
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  Speaker 4: Willis has talked about opening up that five hundred million
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  Speaker 4: to broader range of husy on investors. Right there, k
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  Speaker 4: we say there is the institutional investors, so really opening
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  Speaker 4: up the taps there and that changes things over the
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  Speaker 4: medium term. I think you know, so there is there
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  Speaker 4: is a bit of a change in the tone here
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  Speaker 4: is this is an important move.
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  Speaker 2: Yeah, you mentioned the institutional and the key we sab funds,
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  Speaker 2: et cetera. But what about the rest of us. We're
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  Speaker 2: potentially a couple of years away. What does that do
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  Speaker 2: to the share price?
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  Speaker 3: Yeah? Look, I think a good point Ryan.
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  Speaker 4: One of the things is many of us are investors
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  Speaker 4: in QV say this, so you and I will have
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  Speaker 4: a small amount of capital potentially invested in this QV
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  Speaker 4: saver fund before potentially some the twenty twenty eight posts
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  Speaker 4: and your digital transformation. So I think, you know, we've
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  Speaker 4: got a long way to go. It's going to take
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  Speaker 4: time for the business to put that keble got to work,
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  Speaker 4: so hopefully they do a good job.
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  Speaker 2: Yeah. Have obviously a lot of retric today from the
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  Speaker 2: Finance minister. Have the big banks share prices reacted to
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  Speaker 2: the news?
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  Speaker 4: Well, I think it's earlier, right, It's going to take
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  Speaker 4: time for investors to really allize what this revised financial
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  Speaker 4: positive INMIT and what the reserve bank expectations change mean.
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  Speaker 4: You know, we are going to watch closely what the
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  Speaker 4: risk waiting for bank lending and the minimum capital requirements.
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  Speaker 3: For new interrants.
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  Speaker 4: Those they're probably the two biggies as soon as the announcements.
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  Speaker 4: But yeah, look, the initial reaction was was pretty muted.
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  Speaker 4: National Australian bank SHAP price was actually down half a
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  Speaker 4: percent to thirty eight sixty Australian. We's packed pretty flat,
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  Speaker 4: thirty two seventy seven Australian CBA actually up one percent
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  Speaker 4: to one hundred and fifty eight dollars eighty Australian. The
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  Speaker 4: interesting one where's A and Z. That SHEP price was
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  Speaker 4: down three point four percent to Australian thirty dollars ten.
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  Speaker 4: The current chief executive officer, Shane Elliott, has retired and
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  Speaker 4: as replacement is a chap called Nunama Metos who's come
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  Speaker 4: from HSBC. So the market was kind of a bit there.
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  Speaker 4: So no I think in today, no reaction from the
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  Speaker 4: Australian banks at this stage. But look, you know, give
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  Speaker 4: it twenty four hours that maybe some move tomorrow.
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  Speaker 2: All right, we'll keep an eye on it. What about
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  Speaker 2: Alkan International Airport? Obviously the council has sold off its
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  Speaker 2: years any change.
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  Speaker 4: Yeah, Look, I think what we've seen is that Saildown
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  Speaker 4: was really well accepted by a wide range of investors.
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  Speaker 4: It increases this investable for US and our Kivy savers,
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  Speaker 4: Ryan and others. And so we have actually seen the
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  Speaker 4: sheep rice go up again today, up another two point
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  Speaker 4: seven percent to eight dollars thirty four. And one of
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  Speaker 4: the main reasons was because it's waiting in the benchmark
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  Speaker 4: Insodex fifty. That's the one that many people's qvs that
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  Speaker 4: are a match too, went up really good demand. And
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  Speaker 4: I think that opens the door for either qual defensive
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  Speaker 4: businesses to potentially seut on blocks. And if I think
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  Speaker 4: about some of the council in stakes and say port
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  Speaker 4: A Tarra or make your port and even some of
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  Speaker 4: the easy on government owned stacks and companies like Meridian,
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  Speaker 4: Mercury Genesis and of course KIV Bank.
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  Speaker 2: Today, Yeah, yeah, I hate. I see Jerome Powell Trump
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  Speaker 2: has said you can keep your job for now. I
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  Speaker 2: think I think he's on a turn three to twenty
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  Speaker 2: twenty six. But the Fed obviously making another rate cut decision.
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  Speaker 2: We had weaker US unemployment data come out, softer US
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  Speaker 2: unemployment data come out last week. What do you pick?
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  Speaker 4: Yeah, look, I think we are on track for the
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  Speaker 4: Fed to cut another point two five percent that's due
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  Speaker 4: next week on the eighteenth, and the market is certainly baked,
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  Speaker 4: and about eighty five percent probably of that occurring after
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  Speaker 4: these weaker unemployment data. That helping you see all that,
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  Speaker 4: Brian that the US Fed speakers they've been sort of going,
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  Speaker 4: now we can perhaps tape taper the pace of rate cups.
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  Speaker 4: That activity is really strong in the US. It's robust,
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  Speaker 4: and certainly inflation it's slowing, but we're just keep an
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  Speaker 4: eye it. Yeah, the odds are that they're going to
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  Speaker 4: cut another point two five percent.
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  Speaker 2: The Chinese Central Economic Work Conference.
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  Speaker 4: Sell it to me, Shane, Yeah, it's one a bit
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  Speaker 4: of a sleeper people don't keep an eye on.
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  Speaker 3: And you've picked it up.
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  Speaker 4: Well, it's an extension of the bureau meeting that happened
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  Speaker 4: a few months ago when the Chinese government actually have
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  Speaker 4: a bunch of different policies to try and stimulate the economy.
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  Speaker 3: Of course, we're in a Trump trade war two point
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  Speaker 3: zero environment.
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  Speaker 4: Now the Chinese regulators can perhaps see some of the
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  Speaker 4: policy coming down. So we're going to be looking for
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  Speaker 4: policies that support domestic demand next year, particularly in property
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  Speaker 4: and consumption.
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  Speaker 3: You know, this is a pretty cautious about getting too
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  Speaker 3: much out.
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  Speaker 4: We're not expecting a lot, but there could be some upside,
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  Speaker 4: particularly for New Zealand goods and services explorers, if we
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  Speaker 4: do see some more stimular staff to come through the
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  Speaker 4: Chinese economy obviously been pretty slow the last few years.
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  Speaker 2: Yeah, absolutely crucial for us and really interesting analysis. Shane.
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  Speaker 2: Thank you very much. Shane. Sally the Harbor is esset
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  Speaker 2: management with us this evening just gone twenty four minutes
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  Speaker 2: after six.
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