Latest / Best of Business / Shane Solly: Harbour Asset Management expert on the market reactions to Trump's latest Greenland tariffs

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Shane Solly: Harbour Asset Management expert on the market reactions to Trump's latest Greenland tariffs · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks. The'd be
• 0:12
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• 0:16
  Speaker 2: Let's get to Shane Soley with Harbor Asset Management for
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  Speaker 2: a market update. Shane, good evening, Get it right. So,
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  Speaker 2: any reaction from markets to Trump and his Greenland tariff threat?
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  Speaker 3: Yeah, well, look this potential for a bit of a
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  Speaker 3: risk off start to the week after mister Trump announced
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  Speaker 3: tariffs on eight European nations. Greenland's sold to the US,
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  Speaker 3: and then of course the Europeans have come out and
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  Speaker 3: with their own response to this. What we're seeing in
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  Speaker 3: the futures market for the US and European shear markets.
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  Speaker 3: This has shown what markets expect to happen is weaker markets.
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  Speaker 3: The US market may be down about this is just
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  Speaker 3: under one percent, European market just over one percent. The
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  Speaker 3: US markets are closed tonight for Martin Luther King Days.
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  Speaker 3: It will actually be choosed to be for reaction. But
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  Speaker 3: look our market's here locally, Asia Pacific down between half
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  Speaker 3: and one percent. In the shear market, is market down
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  Speaker 3: one percent? Is the iron tenure bonds zero point five
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  Speaker 3: percent to four point five percent? I think you know
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  Speaker 3: we're getting used to these trumpet policy tape bombs and
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  Speaker 3: that this whole world order is changing. But this is
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  Speaker 3: just another reminder Ryan that investors should be expecting more volatility,
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  Speaker 3: particularly into the US presidential midterms.
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  Speaker 2: And what about reaction to the Prime Minister State of
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  Speaker 2: the Nation address.
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  Speaker 4: Yeah, look, I think the market's taken.
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  Speaker 3: Mister Luckxein's address pretty much is straight down the line
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  Speaker 3: for investment markets, no big bowel promises, no big money
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  Speaker 3: being thrown around.
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  Speaker 4: Markets still agree with mister Luxelon's view.
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  Speaker 3: On the newsion economy of covering in twenty six and
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  Speaker 3: then there's a brighter yea. The fiscal discipline might have
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  Speaker 3: disappointed one or two people who are expecting some stimulus announcements,
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  Speaker 3: but for capital markets that's a good thing. Reassuring the
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  Speaker 3: government's all about taking care of the balance sheet and
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  Speaker 3: investors are like that. A little bit of positiveness.
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  Speaker 4: Maybe around the increase in QUSA the con contributions.
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  Speaker 3: That it does go to twelve percent, But yeah, I
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  Speaker 3: think you know, well, no surprises and this election date
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  Speaker 3: still out there. Maybe we get that later this week
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  Speaker 3: from the caucus meeting and christ each market is expected
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  Speaker 3: sort of October and the MB so we gould already
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  Speaker 3: go for elections.
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  Speaker 2: Certainly do long way to go, it's going to feel
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  Speaker 2: like an eternity too. Hey, the inflations are still sticky here,
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  Speaker 2: Does that mean the Reserve Bank's not going to cut
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  Speaker 2: further in February the next meeting.
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  Speaker 3: Yeah, Look, I think the data coming out recently is
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  Speaker 3: suggested there's pretty Mexican terms of inflation data.
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  Speaker 4: We're seeing some up, some down.
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  Speaker 3: Over All, the data suggests that this inflation numbers, it's
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  Speaker 3: running a little bit higher than levels that support Reserve
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  Speaker 3: Bank cutting rates. And this improving India economic data and
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  Speaker 3: we're a really strong purchacing manager and up last week
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  Speaker 3: to fifty six point one. Is the pressure is not
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  Speaker 3: the same driver there for the RB and Z at
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  Speaker 3: the cut rates. This mark is not actually cutting. Sorry,
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  Speaker 3: this mark is not actually pricing any more cuts and
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  Speaker 3: by the Reserve Bank this year. In fact, it's actually
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  Speaker 3: allowing for more of a more like an increase, with
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  Speaker 3: zero point four percent increase into the second half of
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  Speaker 3: twenty twenty six, taking official cash rates to two point
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  Speaker 3: six by the end of December.
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  Speaker 4: So yeah, we've got the steps.
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  Speaker 3: New Zealand consumer price in Dix out on Friday for
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  Speaker 3: the fourth quarter of twenty twenty five, markets expecting a
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  Speaker 3: quarterly reading of zero point five percent and which would
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  Speaker 3: be three percent year on you that's a little bit
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  Speaker 3: above what the Reserve Bank's targeting is, so you know,
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  Speaker 3: if the CPI data comes in higher, then this could
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  Speaker 3: actually see expectations of rate increases dragged forward.
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  Speaker 2: Shane, appreciate your time. Thank you, Shane, Sally how brain
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  Speaker 2: sit management with our market update tonight.
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