Latest / Best of Business / Shane Solly: Harbour Asset Management expert on the market reactions to the latest events in the Middle East

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Shane Solly: Harbour Asset Management expert on the market reactions to the latest events in the Middle East · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks. The'd be
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  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio. Heather,
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  Speaker 1: do for clan?
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  Speaker 2: Do your numbers really quickly?
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  Speaker 3: Ends it?
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  Speaker 2: X fifty up zero point three seven percent today, A
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  Speaker 2: six fifty down zero point four six So far today
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  Speaker 2: barrel of Brent crude is costing your seventy two US dollars.
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  Speaker 2: That's pretty flat. One New Zealand dollar is worth fifty
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  Speaker 2: seven US cns, eighty two oz he cents, fifty euro cents,
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  Speaker 2: forty three ukpens and ninety one yen. And right now
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  Speaker 2: it's nineteen past six and Shane Soley of Harbor Asset
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  Speaker 2: Managements with US ELLO, Shane, hey you that. So after
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  Speaker 2: that weekend and the US backing away from the escalation
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  Speaker 2: with Irun, how the markets react?
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  Speaker 3: Yeah? Look, always a pretty wild sort of a day
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  Speaker 3: for markets. Cerainly, this reports the US and OURNA agreed
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  Speaker 3: to pause for the military action and talking about negotiations tomorrow.
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  Speaker 3: But where's that really ease some concerns of further disruption,
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  Speaker 3: saw investment sentiment improve, and just to put that in context. Firstly,
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  Speaker 3: this morning there was a real worry that there was
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  Speaker 3: going to be higher all prices, higher interest rates, and
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  Speaker 3: shear markets down. We did actually see all prices pop
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  Speaker 3: up this morning to seventy three dollars forty per print,
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  Speaker 3: as you said, back to where it closed on Friday.
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  Speaker 3: So new Zion bonds a couple of basis points up
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  Speaker 3: to four point thirty eight actually still reasonable. Shear market
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  Speaker 3: pushed up by fishing bike or a too and infratil
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  Speaker 3: us shear market futures. This is the indication what we're
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  Speaker 3: expecting tonight or US time actually up zero point six percent.
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  Speaker 3: One of the things. You know, this geopolitical attention falling
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  Speaker 3: back is useful, but it's been about AI trade has
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  Speaker 3: been a big pressure point for the US today. The
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  Speaker 3: Korean and Japanese markets, which are very tech heavy, they're flat.
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  Speaker 3: That's a good thing. They've been under the pump. They've
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  Speaker 3: been weak. Yeah.
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  Speaker 2: Yeah, So what is going on with the AI and
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  Speaker 2: the tech trade?
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  Speaker 3: Yeah, a really good question. Certainly the AI. You know,
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  Speaker 3: that's include semiconductors, the chips, and tech hardware. It's pretty
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  Speaker 3: crowded trade. There's a lot of leverage in parts of
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  Speaker 3: the trade that means people are borrowing to really drive
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  Speaker 3: their investments in this space. Means that there's very small
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  Speaker 3: moves and expectations can really push the markets around. Last
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  Speaker 3: week it was pretty choppy. We saw earlier the week
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  Speaker 3: chip makers who were rattled over the returns. We're going
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  Speaker 3: to see a decent return on all this billions of
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  Speaker 3: dollars being spent on artificial intelligence. And there's been a
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  Speaker 3: bit of regatory pushback about who can use what models
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  Speaker 3: what's called token discounting by some of the models, and
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  Speaker 3: there's been a few models that come out and they're
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  Speaker 3: doing things that all the flash lines can do for
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  Speaker 3: about half the price, so big changes. Then we saw
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  Speaker 3: micn come okay and then end it. Last week we
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  Speaker 3: saw Apple increased prices due to lack of chips, so
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  Speaker 3: really volatile. It's all about this text sector. This AI
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  Speaker 3: trade has pushed up the US market. We know that
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  Speaker 3: narratives can change quite quickly in investments, and certainly it's
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  Speaker 3: th reeinforces that needs to keep diversified for investment strategies.
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  Speaker 2: Can you explain to which as what's been going on
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  Speaker 2: with the A to milk share price?
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  Speaker 3: Yeah, speaking of rocket ships, Look, it's up another three
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  Speaker 3: sent today to be up to thirty nine percent over
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  Speaker 3: the month of June. It was under pressure. She process
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  Speaker 3: in't that massive pressure in April May, after Chinese regulators
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  Speaker 3: changed infant formula testing. This is obviously A two's key
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  Speaker 3: product selling infant formula into China. The Chinese regulators quite
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  Speaker 3: rightly stepped up their requirements on what was in those
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  Speaker 3: products or not. This has got quite worried about whether
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  Speaker 3: the A two was going to be able to get
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  Speaker 3: product into China to meet the needs of consumers, and
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  Speaker 3: whether they lose market share. What we've seen over the
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  Speaker 3: last few weeks is there's increasing evidence of improving availability
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  Speaker 3: of A two in for formula in China. Indeed, over
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  Speaker 3: the weekend as a letter being circulated on Chinese social media,
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  Speaker 3: which is really important for A two users, reassuring A
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  Speaker 3: two users that the supply has been restored and that
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  Speaker 3: actually from mid June completed its supply chain upgrades. So
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  Speaker 3: really important that they've actually managed this, taking a long
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  Speaker 3: hard work of getting that supply chain right. She processes
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  Speaker 3: our thirty nine percent month. Today it's still down twenty
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  Speaker 3: percent and where it was before it did its voluntary
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  Speaker 3: usc IMF recall and from formula milk, I should say,
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  Speaker 3: recall back in early April, so still the way below
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  Speaker 3: where it was before the initial Recalleah.
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  Speaker 2: Hey listen, Shane, thank you for running me through to
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  Speaker 2: appreciate it. Every week Shane Soley of Harbor Asset Management.
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