Latest / Best of Business / Jeremy Hutton: Milford Asset Management Equities Analyst on the market response to Trump returning to the White House

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Jeremy Hutton: Milford Asset Management Equities Analyst on the market response to Trump returning to the White House · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talk ZEDB. Follow
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• 0:16
  Speaker 2: We're going to look at the markets right now. We've
• 0:18
  Speaker 2: got Jeremy Hutton from Milford Acid Management with US.
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  Speaker 3: Hello, Jeremy, Hi, Andrew.
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  Speaker 2: Trump is back. The SMP was strangely unmoved over. They
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  Speaker 2: must have facted it in. What about INZX?
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  Speaker 3: Yeah? Trump is back and there are a whole bunch
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  Speaker 3: of potential impacts on INZX listed companies and the New
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  Speaker 3: Zealand economy as a whole. I'll start with Fisher and
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  Speaker 3: Pikell Healthcare. So they're our largest listed company and they're
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  Speaker 3: exposed through two different limbs. So firstly, around fifty percent
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  Speaker 3: of their medical devices are sold in the US, so
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  Speaker 3: perhaps there will be some impact here on demand if
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  Speaker 3: tariffs are put in place. But also Fisher and Pichol
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  Speaker 3: has a substantial manufacturing base in Mexico. Around sixty percent
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  Speaker 3: of their manufacturing product is based there, and Mexico does
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  Speaker 3: seem to be in Trump sites a lot more. Now,
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  Speaker 3: Fisher and Pykel does have manufacturing in New Zealand as well,
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  Speaker 3: and of course that can be sent across to the US,
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  Speaker 3: but that does depend a little bit on the cost
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  Speaker 3: and the tariff differential between US and Mexico. But perhaps
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  Speaker 3: at the very least you could see an increase in
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  Speaker 3: freight costs for Fisher and Pipal Healthcare and perhaps a
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  Speaker 3: small profit hit as well.
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  Speaker 2: Okay, so no immediate impact, but watch the space it
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  Speaker 2: could be coming. What about renewable energy and wind could
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  Speaker 2: that be impacted?
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  Speaker 3: Yeah? Trump does have renewable energy and the subsidies for
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  Speaker 3: those in the sites in particular so Biden's Inflation and
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  Speaker 3: Reduction Act. There had been a huge boom of onshore
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  Speaker 3: and offshore wind developments and also some solar projects too
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  Speaker 3: in the US. And we have a business also listed
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  Speaker 3: on the insidex Infra Till and they have a portfolio
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  Speaker 3: company called Long Road Energy, and they are a large
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  Speaker 3: developer of renewable energy in the US. So Long Road
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  Speaker 3: is about fourteen percent of Infratool's value. So it will
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  Speaker 3: be impactful and has been talked about in the market
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  Speaker 3: as having a bit of Trump risk, but there are
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  Speaker 3: a few comments encountered to this risk. Most of Long
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  Speaker 3: Road's development pipeline is solar in batteries. Only six percent
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  Speaker 3: of the pipeline is wind, and Trump does seem a
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  Speaker 3: lot more fixated on wind and know the killing of
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  Speaker 3: the birds from this wind, and then finally a lot
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  Speaker 3: more sorry. And a lot of these long road solo
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  Speaker 3: projects are in red states, mainly Texas and Arizona, and
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  Speaker 3: he might get some pushback from fellow Republicans, particularly if
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  Speaker 3: it starts to impact jobs in these states.
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  Speaker 2: Very good stuff, Jeremy Hardon from Melford AC Management. I
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  Speaker 2: thank you so much for your time today.
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