Latest / Best of Business / Shane Solly: Harbour Asset Management expert on what markets are planning for the OCR this week

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Shane Solly: Harbour Asset Management expert on what markets are planning for the OCR this week · 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: Heather Duplic Ellen, Right.
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  Speaker 2: The INSITEX fifty is down one zero point one six
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  Speaker 2: percent today, a SX fifty is up one zero point
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  Speaker 2: one four percent so far.
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  Speaker 3: Today.
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  Speaker 2: A barrel of Brent crude is costing ninety eight US dollars.
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  Speaker 2: That's down nearly six percent today. One New Zealand dollar
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  Speaker 2: is worth fifty nine years since eighty two. Ozzie sens
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  Speaker 2: fifty one euro since forty four UK pens and ninety
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  Speaker 2: three yen right now twenty past six. And Shane Soli
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  Speaker 2: Harbor Acid Management is with US high Shane, Hey, Heather,
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  Speaker 2: all right, So what is the markets? How are they
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  Speaker 2: reacting to Donald Trump saying a deal is nearly done
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  Speaker 2: with a RAM but he's not.
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  Speaker 3: In a rush. Yeah, it's It's look, market's been pretty
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  Speaker 3: measured in terms of responding to potential for a deal,
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  Speaker 3: given the previous announcements haven't led to a conclusion. Said that,
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  Speaker 3: as you just pointed out that oil price has pulled back,
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  Speaker 3: it's really important because we were starting to see markets
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  Speaker 3: pricing and a higher for longer oil price higher, for
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  Speaker 3: longer inflation. It's particularly pushing bond yields, which sets the
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  Speaker 3: price of borrowing for lots of US particularly governments. So
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  Speaker 3: a slightly more positive time in coming out today. That's
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  Speaker 3: actually quite helpful. The fact that Uranians negotiating is helpful.
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  Speaker 3: As you noted, markets are up around Asia Pacific. We
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  Speaker 3: need to see how the US markets react when they
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  Speaker 3: get back from the Memorial Day long weekend, of course,
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  Speaker 3: the long weekend there. At this stage, the futures are
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  Speaker 3: showing that the US market may be up zero point
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  Speaker 3: nine percent. Our market, yeah, we saw the bond yeards falling,
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  Speaker 3: and that's again this is quite important. We've seen local bonds,
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  Speaker 3: government bonds up at four point eight percent. Recently they're
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  Speaker 3: falling back another five basis points today, or zero point
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  Speaker 3: five percent to four sixty five. But yeah, our market
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  Speaker 3: was a bit weaker. The sure market was weaker, I
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  Speaker 3: should say, Fish and Park were just a bit weak,
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  Speaker 3: down one point three percent leading into its full year
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  Speaker 3: result tomorrow.
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  Speaker 2: Hey, how did that flights go for SpaceX on Friday?
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  Speaker 2: What does it mean for the potential listening?
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  Speaker 3: Yeah, so SpaceX is Starship V three it's twelfth test flight.
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  Speaker 3: They deployed twenty demy STYLINGK satellites and so there was
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  Speaker 3: a bit of a one apparently wasn't all perfect. It's
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  Speaker 3: mostly successful. It's really important that they're looking to publicly
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  Speaker 3: list maybe as soon as June, and they're going for
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  Speaker 3: a pretty big price, Heather. They're raising potentially seventy five
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  Speaker 3: B in US with evaluation of potentially two trillion dollars.
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  Speaker 3: So that space, the areospace sector is very hot right now.
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  Speaker 3: We've seen a whole bunch of new funds launched raising
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  Speaker 3: trying to invest in the space. So mister Musk tapping
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  Speaker 3: that one again.
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  Speaker 2: Yeah, listen, it's a big week for us here with
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  Speaker 2: economic data. How are the markets thinking about the RB
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  Speaker 2: and Z on Wednesday and the budget on Thursday.
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  Speaker 3: Yeah, so in terms of the IB and Z, market's
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  Speaker 3: pretty much thinking that they will be unchanged in terms
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  Speaker 3: of the official rate on Wednesday to twenty five. Can't
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  Speaker 3: rule it out, but you know, markets are sort of
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  Speaker 3: picked up, so they can't rule a hike out, but
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  Speaker 3: markets are picking it will be July before we see
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  Speaker 3: the next quarter percent increase. Markets are picking that we're
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  Speaker 3: at three percent by the end of the year by December.
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  Speaker 3: Ton is Key, Heather, you realative to current pricing and
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  Speaker 3: maybe the Rizio Bank's rate height track is less aggressive
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  Speaker 3: than what the capital markets expecting. Seons. The budget obviously
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  Speaker 3: is a lot come out. Treasury is likely to downgrade
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  Speaker 3: the economic and fiscal outlook more inflation, less growth, and
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  Speaker 3: they may have to raise another two to three B
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  Speaker 3: and an extra government funding on the next few years.
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  Speaker 3: That's bucket's are already priced at in, but as we know,
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  Speaker 3: there's always some devil in the detail around budget, so
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  Speaker 3: it's going to be a busy time.
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  Speaker 2: Yeah, thank you very much, Shane, really appreciate it. Shane Soling,
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  Speaker 2: Harbor Asset Managements.
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