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Shane Solly: Harbour Asset Management spokesperson on Trump confirming the US and EU reached potential trade deal · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks Be follow
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  Speaker 1: this and our wide range of podcasts. Now on iHeartRadio
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  Speaker 1: with me.
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  Speaker 2: Now is Shane Solly Harbor Asset Management.
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  Speaker 3: Hey Shane, Hello Heather.
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  Speaker 2: Now, how have the markets reacted to the EU and
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  Speaker 2: the US doing this trade deal?
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  Speaker 3: Well? Yeah, after a bit of golf in the weekend
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  Speaker 3: in Scotland, mister Trump on barb of the US is
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  Speaker 3: cut a deal with the European Union and now see
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  Speaker 3: EU face fifteen percent tariffs on most of US exports.
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  Speaker 3: That means they avoid the thirty percent plus number that
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  Speaker 3: mister Trump tariff a little while ago. It doesn't include
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  Speaker 3: pharmaceuticals and metal sets. It's except so the market likes it.
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  Speaker 3: But what the market's also focusing on either is tonight
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  Speaker 3: in Stockholm, mister percent the Treasury Secretary for the US
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  Speaker 3: is meeting with the Chinese, and there's Arima come out
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  Speaker 3: of the South China Morning Post saying that they're going
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  Speaker 3: to extend the tariff truce by another three months. No sources,
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  Speaker 3: of course, but that would mean that we're seeing that
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  Speaker 3: can kick down the road. Certainly. I think this greater
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  Speaker 3: certainty that we're seeing at the European deal, the Japanese
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  Speaker 3: deal last year, just taking some of the risk away
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  Speaker 3: for capital markets, supporting a further broad based recovery and
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  Speaker 3: shear markets. Even our share market today had a bit
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  Speaker 3: of a bounce to there either up zero point four percent,
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  Speaker 3: but will take it so be more positive.
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  Speaker 2: How good do you think that Donald Trump's pressure is
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  Speaker 2: going to lead to a cut by the FED the
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  Speaker 2: Federal Reserve this week?
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  Speaker 3: Certainly heaping on the pressure. The short answer is the
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  Speaker 3: markets don't think so. The market thinks the Federal Open
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  Speaker 3: Market Committee it's going to hold the FED funds rate
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  Speaker 3: at four point twenty five four point five percent range
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  Speaker 3: on Thursday, watching for changes in the language, which you know,
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  Speaker 3: the US economy is and pretty resilient. The inflation is
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  Speaker 3: coming in lower, of course, so it's getting harder for
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  Speaker 3: the US for the Reserve to say no. Every central
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  Speaker 3: bank wants to see what tarrifs do, so there'll be
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  Speaker 3: a few dissenters on the committee. We would not be
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  Speaker 3: surprised to see cuts by the US Federal Reserve later
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  Speaker 3: in the year, markets thinking December and another one in
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  Speaker 3: twenty six. On Thursday, we might get a little bit
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  Speaker 3: of a Skew saying the cuts are going to be
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  Speaker 3: earlier or more substantial, so that will be driven by data.
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  Speaker 3: And mister Powell has J Powell, the head of the Fed,
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  Speaker 3: has been very resilient in pushing back on political pressure.
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  Speaker 2: Now we've had quite a few changes a spark today.
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  Speaker 2: What's the market made of this?
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  Speaker 3: Yeah, so we've seen a couple of board member changes,
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  Speaker 3: Lindsay Wright, Vinshawksworth and Trek Robauta coming on and Gordon
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  Speaker 3: McLeod and Sheridan Broadbent coming off Spark. The Altelicom Newson
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  Speaker 3: has been on under a lot of pressure to refresh
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  Speaker 3: the board after share price has underperformed basically out the
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  Speaker 3: last three years. It's underperformed by forty eight percent versus
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  Speaker 3: the rest of the market, ie the U Zealand sharemakers
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  Speaker 3: have about forte in the three years and sparks down
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  Speaker 3: thirty four percent. How did the market react? Went up
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  Speaker 3: the shear price. Sparkshire price went up zero point four
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  Speaker 3: percent to two dollars forty nine. So kind of people
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  Speaker 3: are taking it and saying, yep, directionally interesting, useful, Let's
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  Speaker 3: see what happens next. Let's see some.
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  Speaker 2: More absolutely brilliant stuff, Shane, thanks so much, look after yourself.
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  Speaker 2: We'll talk to you next week. Shane Solly, Harbor Asset Management.
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