Latest / Best of Business / Shane Solly: Harbour Asset Management expert on how markets have reacted to the fractious ceasefire news in the Middle East

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Shane Solly: Harbour Asset Management expert on how markets have reacted to the fractious ceasefire news in the Middle East · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks, it'd be
• 0:12
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• 0:16
  Speaker 2: Shane Soley Harbor Estic Management is with us. Hello Shane,
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  Speaker 2: Hello here that how have markets reacted chained to that
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  Speaker 2: fractious midd East cease fire development.
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  Speaker 3: It's certainly fractious.
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  Speaker 4: We've seen a bit of an unwhining of this unwinning
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  Speaker 4: of the CIS fire progress is really creating.
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  Speaker 3: A bit more confusion for markets.
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  Speaker 4: So just to remind you, last week on Friday, we
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  Speaker 4: had the USHAR market up one point two percent, with
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  Speaker 4: obviously on the CISFI news and some really good company
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  Speaker 4: unions results.
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  Speaker 3: So the US market is actually up four and hour
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  Speaker 3: percent last week.
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  Speaker 4: Right now as we speak, US futures are looking like
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  Speaker 4: they're going to be down between half a percent and
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  Speaker 4: points six percent. So let's saying the market expects the
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  Speaker 4: US market if we low locally. We tried to rallually
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  Speaker 4: on on the same news seas fire and the stronger
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  Speaker 4: the US markets, and we're hit some really good company
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  Speaker 4: updates today, but actually using our market into the day
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  Speaker 4: flat in for it's all a bit stronger and hewait
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  Speaker 4: fish and Pike or health get a little bit weaker.
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  Speaker 3: So yeah, tough day.
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  Speaker 2: Now, what is the market expecting from the CPI the
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  Speaker 2: inflation data tomorrow?
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  Speaker 4: Yeah, look the consumer price inflation data for the first
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  Speaker 4: quarter twenty twenty six. The market's picking zero point eight percent,
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  Speaker 4: which is up from zero point six the previous quarter.
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  Speaker 4: Now zero point eight percent, that would mean the annual
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  Speaker 4: number will be two point nine percent. Now we know
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  Speaker 4: that that data is kind of a history already given
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  Speaker 4: the midd East conflict has already changed the outlook for inflation,
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  Speaker 4: but it will influence whether the market thinks the Reserve
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  Speaker 4: Bank needs to accelerate the pace or actually get on
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  Speaker 4: with increasing the official carese rate.
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  Speaker 3: And if you look at where the.
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  Speaker 4: Markets are, we're pricing and the official care rate to
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  Speaker 4: be a three and a half percent by June next year.
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  Speaker 3: That's one point two five percent up from where it
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  Speaker 3: is now. Whatever a headwind for the economy, which.
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  Speaker 4: Is of course, what the why the irbnz would rate
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  Speaker 4: increase rates to try and slay the economy down. The
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  Speaker 4: other thing here is we've got the quarterly Serve Business
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  Speaker 4: Opinion out from ZII tomorrow and that will be the
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  Speaker 4: first indicator of the post midis conflict on how business
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  Speaker 4: confidence is really foreign as a big day tomorrow for
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  Speaker 4: economic indicators.
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  Speaker 2: And we had some okay, some more okay New Zealand
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  Speaker 2: company announcements out today, didn't.
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  Speaker 3: We Yeah, we did. Look.
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  Speaker 4: Fletcher Building, Genesis and Channel all came out with worksally good,
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  Speaker 4: good announcements. Fletcher Building has got Overseas Investment Office in
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  Speaker 4: ComCom approval aord to sell its construction business to Lindsey.
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  Speaker 4: It's a head of expectations that releases about threeundred million
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  Speaker 4: and really helps with Fletcher Buildings balance sheet. That shap
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  Speaker 4: price is up two percent the data. Two ninety three,
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  Speaker 4: Genesis announced a financial investment decision on second stage of
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  Speaker 4: some more battery storage at its Humpany plant. There's another
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  Speaker 4: one hundred legal watts of BES, which is really helpful
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  Speaker 4: to firming up electricity storage one hundred and six million dollars.
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  Speaker 4: It's a pretty good price versus the first stage. There
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  Speaker 4: was a good outcome.
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  Speaker 3: Genesis ship price up zero point four percent. Two twenty
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  Speaker 3: six and Channel agreed to contractual terms in the New
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  Speaker 3: Zealand government for another ninety three million leaders of diesel
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  Speaker 3: storage out to December twenty seven, and that's helpful. That
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  Speaker 3: certainly generates about just a million bucks.
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  Speaker 4: A month for Channel and it shippers slightly down on
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  Speaker 4: the day to two ninety four zero point trips in down.
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  Speaker 2: All right, Sean, thanks as always, good to talk to you.
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  Speaker 2: We'll talk to you again next week. Shane Sally Harbor,
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  Speaker 2: Asset Management.
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