Latest / Best of Business / Remy Morgan: Milford Asset Management spokesperson on the market reactions to the latest OCR cut

Transcript

Remy Morgan: Milford Asset Management spokesperson on the market reactions to the latest OCR cut · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from news Talk zed be
• 0:12
  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: With me now as Remy Morgan, Milford Asset Management. Hey,
• 0:18
  Speaker 2: Remy hi Heaver. How has the world? How has the
• 0:22
  Speaker 2: world reacted? Just how has the markets reacted to the ocr.
• 0:27
  Speaker 3: Yeah, So the twenty five basis point cut today that
• 0:30
  Speaker 3: was fully priced and by the market going into today.
• 0:33
  Speaker 3: But following the announcement, we saw the market slightly lower
• 0:37
  Speaker 3: some of its future interest rate cut expectations. Now, while
• 0:41
  Speaker 3: the RBNZ lowered its own forward expectation to roughly what
• 0:45
  Speaker 3: was in line with what the market had been pricing
• 0:47
  Speaker 3: going into the meeting, it did imply a slightly slower
• 0:50
  Speaker 3: pace of interest rate cuts. And what was surprising was
• 0:54
  Speaker 3: that one committee member actually voted to hold at this
• 0:57
  Speaker 3: meeting rather than cut, So that might also explain some
• 1:00
  Speaker 3: of the market's reduced expectations.
• 1:02
  Speaker 2: Yeah. The thing that we heard about a lot from
• 1:05
  Speaker 2: the Reserve Bank is uncertainty because there was just so
• 1:07
  Speaker 2: much going on globally. What impact does this having.
• 1:11
  Speaker 3: Yeah, So, like you say, there's a lot of uncertainty
• 1:13
  Speaker 3: going on around US policy and what this means for
• 1:16
  Speaker 3: global economies, and we've seen a lot of volatility in
• 1:19
  Speaker 3: global financial markets over the past few months. So even
• 1:23
  Speaker 3: with lower boring rates in New Zealand, this uncertainty offshore
• 1:27
  Speaker 3: could see a delay in investment and consumption decisions domestically
• 1:31
  Speaker 3: and that can impact NEARTM growth and so that's something
• 1:34
  Speaker 3: that the RBNZID considered in depth at today's statement and
• 1:38
  Speaker 3: they will need to continue to monitor that.
• 1:40
  Speaker 2: Hey, pretty amazing result from Fisher and Pikeal Healthcare. What's
• 1:43
  Speaker 2: the market reaction to that then?
• 1:45
  Speaker 3: Yeah, So Fisher and Pikeal Healthcare, it's one that's always
• 1:48
  Speaker 3: very closely followed by the New Zealand market. So, as
• 1:51
  Speaker 3: you said, result was very strong. This year's revenue was
• 1:54
  Speaker 3: up sixteen percent first last year net profit up forty
• 1:58
  Speaker 3: three percent. The forward profit guidance for next year was
• 2:01
  Speaker 3: also solid enough, despite some tariff noise, so another ten
• 2:04
  Speaker 3: percent growth at the midpoint expected for next year. But
• 2:08
  Speaker 3: despite the solid result, the market expectations were a little
• 2:12
  Speaker 3: bit higher, so that meant the stock actually closed down
• 2:16
  Speaker 3: four point four five percent on the day.
• 2:18
  Speaker 2: Remy, it's good to talk to you. Thank you for
• 2:19
  Speaker 2: that mote. That's Remy Morgan Milford ASIC Management.
• 2:22
  Speaker 1: For more from News Talk sed B, listen live on
• 2:25
  Speaker 1: air or online, and keep our shows with you wherever
• 2:28
  Speaker 1: you go with our podcasts on iHeartRadio