Latest / Best of Business / Shane Solly: Harbour Asset Management spokesperson on what the US CPI report means for rates

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Shane Solly: Harbour Asset Management spokesperson on what the US CPI report means for rates · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks. There'd be
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  Speaker 1: follow this and our wide range of podcasts now on
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  Speaker 1: iHeartRadio ever duper c Allen.
• 0:18
  Speaker 2: I'm going to get to your feedba, it's a lot
• 0:19
  Speaker 2: of it. We're going to get to your feedback shortly
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  Speaker 2: and also explain this idea of the generation being stripped
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  Speaker 2: out of the gen tailors right now six twenty one,
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  Speaker 2: Shane Soly Harbor Asset Management is with us Ay Shane, Hello, Heaver, Right,
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  Speaker 2: what are we thinking about the feeds chances of cutting
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  Speaker 2: the rates?
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  Speaker 3: Well, it's a big one. I'm going to be honest
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  Speaker 3: with you. The July consumer price inflation for the United
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  Speaker 3: States that comes out on Tuesday night in news on
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  Speaker 3: on Time. They'll influence whether the US FED that's a
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  Speaker 3: central bank, and the US does cut rates when they
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  Speaker 3: do it how often. Obviously, mister Trump, their president, is
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  Speaker 3: pushing in the cut rates. But inflation has been pretty sticky.
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  Speaker 3: Market is expecting about a zero point two percent number
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  Speaker 3: for the July month that commits to two point eight
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  Speaker 3: percent for the full year. Maybe getting enough, maybe getting enough,
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  Speaker 3: But you know, the feed's been pretty sticky with this
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  Speaker 3: sort of four point twenty five four point five percent
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  Speaker 3: range they put in December. Look, I think the markets
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  Speaker 3: can be a bit weary. Uh, market's gonna be worried
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  Speaker 3: if it comes in hot either, to be honest, withether
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  Speaker 3: it's above that point two, then the market's gonna be
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  Speaker 3: worried about interstreanths staying high when the economy is slowing down.
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  Speaker 3: So yeah, really important one on Tuesday night news on
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  Speaker 3: on time.
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  Speaker 2: Now, what is the market expecting from the RBA tomorrow?
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  Speaker 3: Yeah, in contrast fully pricing and a point twenty five
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  Speaker 3: percent cut from the RBA taking their official case rate
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  Speaker 3: down to three point six percent last month. Of course,
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  Speaker 3: either they shocked us by not cutting. They said we
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  Speaker 3: want to see some more data, particularly on price growth inflation.
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  Speaker 3: Since then, we've had inflation come in lower then expected
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  Speaker 3: two points percent and actually unemployment starting to rise and
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  Speaker 3: iusy something that many New Zealanders don't realize that economy
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  Speaker 3: is actually starting to slow down. So a cut that
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  Speaker 3: would be pretty helpful and just cushioning the bit of
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  Speaker 3: slow down that's occurring, boosting household confidence, which is actually
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  Speaker 3: pretty weak. If they don't cut, markets will be weak.
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  Speaker 2: Yeah, did you see that stuff around Spark selling a
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  Speaker 2: steak in the data center business. How the market react
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  Speaker 2: to that?
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  Speaker 3: Yeah, look, so we've seen Australian Financial Review report and
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  Speaker 3: the weekend so specific equing to partners is closing in
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  Speaker 3: on taking a stake and Sparks five hundred and fifty
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  Speaker 3: million dollar plus status in the platform. Sparking out this
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  Speaker 3: morning and said no, nothing is a year. The processes
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  Speaker 3: on going. We'll tell you when we're ready to tell
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  Speaker 3: you when something's going on. But look, the Thin Review
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  Speaker 3: report was pretty specific. They talked about controlling stakes. It
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  Speaker 3: took about a newson dollar six hundred million dollar valuation,
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  Speaker 3: so quite specific. Actually on the day the ship rice
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  Speaker 3: pretty flat only up points six two sixty one. Sorry either,
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  Speaker 3: really bit of a balance between we're watching for a
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  Speaker 3: bit of a possibly a flat result, poor result coming
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  Speaker 3: up in the result in a few weeks time versus
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  Speaker 3: this deal.
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  Speaker 2: And also the IPO for Fontira's offer, isn't it Well?
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  Speaker 3: Yeah, look again the Financial Review is amazing how this
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  Speaker 3: icy paper digs this stuff up as saying that French
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  Speaker 3: multinational company like Talastan brand like Paul's and Oak in Australia,
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  Speaker 3: they're the lead better for Fontira's consumer products business. Apparently
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  Speaker 3: they're being given exclusive opportunity to buy it. This has
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  Speaker 3: been a prolonged process. Frontier started back and Frontier sorry
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  Speaker 3: and back in November saying hey, we're indicating a trade
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  Speaker 3: sale or IO. It's looking like a trade sale. The
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  Speaker 3: keeping is for New Zealand Incorporated. If there is a
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  Speaker 3: good price, then that money could find its way back
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  Speaker 3: to distans and farmers in the form of a returning capital.
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  Speaker 3: Share price was actually up almost two percent to seven
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  Speaker 3: dollars eighteen today.
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