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Shane Solly: Harbour Asset Management spokesperson on Canada rescinding digital services tax · 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: this and our wide range of podcasts now on iHeartRadio.
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  Speaker 1: Shane Soally harbor asset Management with me.
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  Speaker 2: Now, hey Shane, get out here there.
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  Speaker 1: Okay, So what's happened with the Canadian government and the
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  Speaker 1: US government?
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  Speaker 2: Yeah, so on Friday out thennon mister Trump said, look
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  Speaker 2: it's on social media. We're going to stop, going to
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  Speaker 2: terminate trade discussions because the Canadians are going to put
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  Speaker 2: in place a digital services tax on Monday. Well, funny
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  Speaker 2: other thing this afternoon is on time, the Canadian government
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  Speaker 2: rescinded the planned digital services tax on the basis they're
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  Speaker 2: going to try and reopen trade talks. In fact, they've
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  Speaker 2: actually come out said look we want to have a
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  Speaker 2: trade deal with US by the twenty fifth of July.
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  Speaker 2: And of course this clock's ticking here for the July
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  Speaker 2: night tariff negotiations. So there's a bit of a deadline
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  Speaker 2: out there. We expect perhaps some other countries do some
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  Speaker 2: of my things, UK, France, Spain, They've all got these
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  Speaker 2: types of things they want to get back onside with
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  Speaker 2: the White House. So capital markets, we all think the
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  Speaker 2: can is going to get kicked down the road, but
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  Speaker 2: the dealers get extend. But you know there will be
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  Speaker 2: some violatility around it nonetheless.
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  Speaker 1: Yeah, and so what happened with the US share market
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  Speaker 1: that it hit those highs.
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  Speaker 2: Yeah, so we hit all time highs on Friday. You know,
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  Speaker 2: it's a bit of a combination of these geopolitical rests
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  Speaker 2: falling some more positive trade tarf deal rhetoric, particularly between
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  Speaker 2: US and China and Europe is a bit of a
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  Speaker 2: setup going on there. And also the US hit a
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  Speaker 2: reserve rate cut, hope, So a bit of a combination there.
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  Speaker 2: That opposite, we had some weaker US data out on Friday.
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  Speaker 2: Growth indicators down and inflation indicator has been quite stubborn.
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  Speaker 2: So there's been a few offsets, but net net positive outcome.
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  Speaker 1: How's our economy looking at the moment?
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  Speaker 2: Interesting day to day. We had the A Business Confidence
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  Speaker 2: in the indicator out for June that was actually showed
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  Speaker 2: a really strong bounce from very low levels. But against that,
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  Speaker 2: we've had employment data which is this actual job growth
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  Speaker 2: is pretty sluggish, which won't be a surprise for some
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  Speaker 2: people out there. It's sort of drop into the A
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  Speaker 2: Z business confidence number. It actually went to forty six
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  Speaker 2: point three. That means they're one of me, is still
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  Speaker 2: below an expansion level. But the really important thing here
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  Speaker 2: is a big bounce and own activity. This is business
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  Speaker 2: is saying we think we're going to get better. That
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  Speaker 2: up to forty point nine from last month month thirty
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  Speaker 2: four point eight. And the really important thing here the
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  Speaker 2: government might be keen to see that there's been a
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  Speaker 2: big lift in investment intentions up from nine points to
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  Speaker 2: nine point nine. The exit the leading the way. Unfortunately,
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  Speaker 2: as I say, these job growth numbers for May pretty sluggish,
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  Speaker 2: only out point one of a percent month or month,
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  Speaker 2: which means we're actually down one point five percent for
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  Speaker 2: the year to two point three five million, So pretty
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  Speaker 2: choppy out the head as we know. But the indicators
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  Speaker 2: there's a bit of sunshine we are with potentially on
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  Speaker 2: the custom of the economic expansion.
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  Speaker 1: Yeah, I'm so happy to hear it, Shane, Thank you
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  Speaker 1: very much, appreciate it. Shane Solely Harbor Asset Management. For
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