Latest / Best of Business / Shane Solly: Harbour Asset Management expert on whether the US Federal Reserve will cut rates

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Shane Solly: Harbour Asset Management expert on whether the US Federal Reserve will cut rates · 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 2: Shane Solely harbor Asset Management is with us. Hello Shane, Hello,
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  Speaker 2: eav Okay, what do you reckon? Look at this this
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  Speaker 2: economic data out last week? Do you think that we
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  Speaker 2: get cuts in the US?
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  Speaker 3: Yeah? Look in the US we're on track here there
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  Speaker 3: are business of inflation data out last week. Doesn't really
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  Speaker 3: alter the head reserve rate cuts path, but it does
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  Speaker 3: give them a bit more ammunition. The key points that
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  Speaker 3: came out last week was this thing called the Personal
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  Speaker 3: Consumption Expinger PCEE. That's the Fed's key inflation indicator. Watch
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  Speaker 3: came out at zero point three for the month for June.
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  Speaker 3: It's pretty much in line. And then we had a
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  Speaker 3: Michigan consumercy You're going to go, who here is the
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  Speaker 3: key thing was there? Importantly, they talked about inflation expectations
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  Speaker 3: for the five to ten year dropping to three and
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  Speaker 3: a half percent, again still high, but not as high
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  Speaker 3: as it was. So this is sort of opening the
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  Speaker 3: door for the FED to cut by zero point to
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  Speaker 3: two five percent taken into four twenty five to four
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  Speaker 3: point five. This Friday. However, Heather, we have the non
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  Speaker 3: farm payrolls, but that would be really important as an
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  Speaker 3: indicator as to how hard the FED goes.
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  Speaker 2: Now, what happened to the video share price on Friday?
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  Speaker 3: Yeah, interesting one. It was our three just out of
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  Speaker 3: three percent, three point three percent, a little bit of
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  Speaker 3: a soft result. Last week it was okay, not quite
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  Speaker 3: as good as people wanted build. Really, what had it
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  Speaker 3: was a news that Ali Barber, the Chinese tech company,
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  Speaker 3: has developed a new chip. It's compatible with the videos platform. Indeed,
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  Speaker 3: if the reports are right, then engineers can repurpose programs
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  Speaker 3: they wrote for video chips for use with Ali Barber chips,
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  Speaker 3: and then that means it's more competitive for this growing
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  Speaker 3: demand for artificial intelligence. So, yeah, we saw the in
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  Speaker 3: video share price. It's come off. It's all time high
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  Speaker 3: one hundred and eighty three dollars US closed it one
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  Speaker 3: hundred and seventy four dollars US down three point three percent,
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  Speaker 3: still forty eight percent high than it was a year ago.
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  Speaker 3: So a little way toga before we're going to have
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  Speaker 3: to really get worried about it.
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  Speaker 2: Yeah too, right now, Chinese economic data came out in
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  Speaker 2: the last few days as well. Looking at that, what
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  Speaker 2: are you thinking about our economy?
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  Speaker 3: Well, the key thing was it was okay, It was okay,
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  Speaker 3: suggesting overall that the broader purchasing manager in this is
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  Speaker 3: the composite one purchasing manager in DIES is a lead.
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  Speaker 3: Indicative economic activity was above fifty. It was at fifty
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  Speaker 3: point five. It's about fifty. It means the economy is expanding.
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  Speaker 3: But the devil was in the detail. The manufacturing part
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  Speaker 3: of the purchasing managegacy that was a below fifty was
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  Speaker 3: at forty nine point four and slip back, so it
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  Speaker 3: means manufacturers not as positive on growing. That was the
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  Speaker 3: non manufacturing part that was positive. So good for our
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  Speaker 3: businesses that are perhaps providing services or things that are
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  Speaker 3: consumed by you know, service parts of the Chinese economy
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  Speaker 3: rather than manufacturer. But nonetheless kind of helpful.
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  Speaker 2: Yeah, good stuff, Shane. Always good to talk to you.
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  Speaker 2: Talk to you next week, Shane, Sally Harbor, Asset Management.
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