Latest / The SME Stream / Mark Lister: Craigs Investment Partners expert on the response from the market following Donald Trump's victory

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Mark Lister: Craigs Investment Partners expert on the response from the market following Donald Trump's victory · The SME Stream

• 0:00
  Speaker 1: Listen on another subject altogether. Mark Listener from Craig's Investment
• 0:03
  Speaker 1: Partners is with us.
• 0:04
  Speaker 2: Hey, Mark, afternoon, how are you.
• 0:06
  Speaker 1: I'm well? Thank you. Now listen, Mike. I'm fascinated by
• 0:09
  Speaker 1: this exuberance in the market post Trump's victory. Is this
• 0:12
  Speaker 1: going to last?
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  Speaker 2: I think over the short term, yes, it will. I
• 0:16
  Speaker 2: mean markets are in a very good mood. They like
• 0:19
  Speaker 2: Trump because he is pro growth, he's business friendly, his
• 0:23
  Speaker 2: anti regulation. And when you also combine that with inflation
• 0:28
  Speaker 2: that's now back in the twos and you've got the
• 0:30
  Speaker 2: Federal Reserve cutting interest rates, the US economy is holding
• 0:34
  Speaker 2: together quite well. I could see the US market continuing
• 0:37
  Speaker 2: the strength into year end.
• 0:40
  Speaker 1: Do you think though, that he means he spells the
• 0:43
  Speaker 1: end of the rate cuts because this is inflationary what
• 0:45
  Speaker 1: he's planning to do.
• 0:47
  Speaker 2: Oh, it definitely is going to put the Federal Reserve
• 0:51
  Speaker 2: in a bit of a bind. Jerome Powell just did
• 0:54
  Speaker 2: not want to talk about politics at all on Friday morning,
• 0:58
  Speaker 2: but he won't get off that like next time. And
• 1:02
  Speaker 2: financial markets now see, you know, it is pretty much
• 1:05
  Speaker 2: a fifty to fifty care whether he cuts again in
• 1:07
  Speaker 2: December or whether they pause so I think the part
• 1:11
  Speaker 2: of interest rates in the US are still down. But yeah,
• 1:14
  Speaker 2: markets are absolutely wondering about inflation, wondering about debt levels,
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  Speaker 2: and I think we will see a return to that
• 1:21
  Speaker 2: tension between Trump and Power that we saw a few
• 1:25
  Speaker 2: years back. So yeah, it remains to be seen, but
• 1:28
  Speaker 2: there's definitely going to be an interesting, interesting dynamic between
• 1:32
  Speaker 2: the two.
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  Speaker 1: Yeah, totally. Now listen on China, Okay, we've got the
• 1:35
  Speaker 1: stimulus package. Is it's going to be enough because I
• 1:37
  Speaker 1: had I mean, the markets have not reacted well to
• 1:39
  Speaker 1: it today, have they?
• 1:41
  Speaker 2: No? Markets a little underwhelmed. We also had some inflation
• 1:45
  Speaker 2: figures out of China over the weekend and they were
• 1:47
  Speaker 2: too low. You know, rest of the world has an
• 1:49
  Speaker 2: inflation that's too high, Chinese inflation too low. So they're
• 1:53
  Speaker 2: trying to actually get a bit of inflation stimulus a
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  Speaker 2: little underwhelming. I just don't know if it's going to
• 1:59
  Speaker 2: be enough to deal with the massive issues they have
• 2:01
  Speaker 2: around the property sector and some of their other challenges.
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  Speaker 2: And now we're also thinking ahead to next year and
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  Speaker 2: we're thinking, well, geez, what will Trump do when he
• 2:09
  Speaker 2: gets into office in terms of tariffs and so forth.
• 2:13
  Speaker 2: That China will be right in the firing line of
• 2:15
  Speaker 2: so I think there are still some big question marks
• 2:19
  Speaker 2: around the Chinese economy over the next little while.
• 2:22
  Speaker 1: How about that dairy payout upgrade though for us?
• 2:26
  Speaker 2: Yeah, fantastic, isn't it? And I guess the positive news
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  Speaker 2: is that we are selling the right sort of products
• 2:32
  Speaker 2: to China. You look on the ASX today and it's
• 2:35
  Speaker 2: the mining companies are all down, whether it's BHP, Rio
• 2:38
  Speaker 2: and so forth, But dairy prices are up what eighteen
• 2:41
  Speaker 2: percent this year and now the payout having been bumped
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  Speaker 2: up from nine dollars to nine to fifty, that's the
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  Speaker 2: highest of all time. The previous high was nine dollars thirty.
• 2:51
  Speaker 2: I think that was in the twenty one twenty two seasons.
• 2:54
  Speaker 2: So nine to fifty best ever payout. Really, you can't
• 2:58
  Speaker 2: be unhappy about that totally.
• 3:00
  Speaker 1: We've got a whole bunch of corporate releases to watch
• 3:02
  Speaker 1: this week, but you're picking Mainfreight is the key one?
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  Speaker 1: Is it?
• 3:05
  Speaker 2: Oh? Just such a high profile business, well owned, well followed.
• 3:09
  Speaker 2: You know, everyone loves main Freight and everyone owns it.
• 3:12
  Speaker 2: You know it'll be in everyone's key we saber account.
• 3:14
  Speaker 2: So it's not the only company reporting here. You've got
• 3:17
  Speaker 2: in for two, you've got Goodman Property, a couple of others.
• 3:21
  Speaker 2: But main Freight is just important because it's so big
• 3:24
  Speaker 2: and so widely followed, and it's sort of right on
• 3:28
  Speaker 2: the cusp of global growth because it's in the logistics business,
• 3:31
  Speaker 2: transport big operations, not just here in New Zealand and
• 3:35
  Speaker 2: in Australia, but also in Europe and Asia, in the US.
• 3:39
  Speaker 2: So you always learn a lot from the main Freight result.
• 3:43
  Speaker 2: And I think given what we're now seeing in terms
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  Speaker 2: of the geopolitical environment and what that could mean for
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  Speaker 2: tariffs and the costs of moving things around, I think
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  Speaker 2: it would be a really interesting result to monitor. On Wednesday, Mark.
• 3:57
  Speaker 1: It's good to talk to you. Thank you so much.
• 3:58
  Speaker 1: Appreciate it, mate, This Mark List, Craig's Investment Partners, Shane
• 4:01
  Speaker 1: Soli's on holiday or something like that, were called and
• 4:03
  Speaker 1: sick or truant, I don't know, But anyway, Mark did
• 4:06
  Speaker 1: a good job, didn't they