Latest / Best of Business / Mark Lister: Craigs Investment Partners expert on the response from the market following Donald Trump's victory

Transcript

Mark Lister: Craigs Investment Partners expert on the response from the market following Donald Trump's victory · Best of Business

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  Speaker 2: Listen on another subject altogether. Mark listener from Craig's Investment Partners,
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  Speaker 2: is with us.
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  Speaker 3: Hey, Mark, afternoon, how are you?
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  Speaker 2: I'm well? Thank you? Now listen Mike. I'm fascinated by
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  Speaker 2: this exuberance in the market post Trump's victory. Is this
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  Speaker 2: going to last?
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  Speaker 3: I think over the short term, yes, it will. I mean,
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  Speaker 3: markets are in a very good mood. They like Trump
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  Speaker 3: because he is pro growth, he's business friendly, his anti regulation.
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  Speaker 3: And when you also combine that with inflation that's now
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  Speaker 3: back in the twos and you've got the Federal Reserve
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  Speaker 3: cutting interest rates, the US economy is holding together quite well.
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  Speaker 3: I could see the US market continuing the strength into
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  Speaker 3: year end.
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  Speaker 2: Do you think, though, that he means he spells the
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  Speaker 2: end of the rate cuts because this is inflationary what
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  Speaker 2: he's planning to do.
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  Speaker 3: Oh, it definitely is going to put the Federal Reserve
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  Speaker 3: in a bit of a bind. Jerome Powell just did
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  Speaker 3: not want to talk about politics at all on Friday morning,
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  Speaker 3: But he won't get off that lightly next time, and
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  Speaker 3: financial markets now see, you know, it is pretty much
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  Speaker 3: a fifty to fifty call whether he cuts again in
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  Speaker 3: December or whether they pause. So I think the part
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  Speaker 3: of interest rates in the US is still down. But yeah,
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  Speaker 3: markets are absolutely wondering about inflation, wondering about debt levels,
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  Speaker 3: and I think we will see a return to that
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  Speaker 3: tension between Trump and Powell that we saw a few
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  Speaker 3: years back. So yeah, it remains to be seen, but
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  Speaker 3: there's definitely going to be an interesting, interesting dynamic between
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  Speaker 3: the two.
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  Speaker 2: Yeah, totally. Now listen on China, Okay, we've got the
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  Speaker 2: stimulus package. Is it's going to be enough because I
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  Speaker 2: had I mean, the markets have not reacted well to
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  Speaker 2: it today, have they?
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  Speaker 3: No? Markets a little underwhelmed. We also had some inflation
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  Speaker 3: figures out of China over the weekend and they were
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  Speaker 3: too low. You know, rest of the world has an
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  Speaker 3: inflation that's too high, inflation too low, So they're trying
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  Speaker 3: to actually get a bit of inflation stimulus a little underwhelming.
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  Speaker 3: I just don't know if it's going to be enough
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  Speaker 3: to deal with the massive issues they have around the
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  Speaker 3: property sector and some of their other challenges. And now
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  Speaker 3: we're also thinking ahead to next year, and we're thinking, well, geez,
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  Speaker 3: what will Trump do when he gets into office in
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  Speaker 3: terms of tariffs and so forth, that China will be
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  Speaker 3: right in the firing line of So I think there
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  Speaker 3: are still some big question marks around the Chinese economy
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  Speaker 3: over the next little while.
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  Speaker 2: How about that dairy payout upgrade though? For US?
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  Speaker 3: Yeah, fantastic, isn't it? And I guess the positive news
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  Speaker 3: is that we are selling the right sort of products
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  Speaker 3: to China. You look on the ASX today and it's
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  Speaker 3: the mining companies are all down, whether it's BHP, Rio
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  Speaker 3: and so forth, But dairy prices are up what eighteen
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  Speaker 3: percent this year? And now the payout having been bumped
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  Speaker 3: up from nine dollars to nine point fifty, that's the
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  Speaker 3: highest of all time. The previous high was nine dollars
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  Speaker 3: thirty of it that was in the twenty one twenty
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  Speaker 3: two seasons. So nine point fifty best ever payout. Really,
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  Speaker 3: you can't be unhappy about that totally.
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  Speaker 2: And look, we've got a whole bunch of corporate releases
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  Speaker 2: to watch this week, but you're picking main freight is
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  Speaker 2: the is the key one? Is it?
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  Speaker 3: Oh? Just such a high profile business, well owned, well followed.
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  Speaker 3: You know, everyone loves main Freight and everyone owns it.
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  Speaker 3: You know it'll be in everyone's key we Saber account.
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  Speaker 3: So it's not the only company reporting here. You've got
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  Speaker 3: in for two, You've got Goodman Property, a couple of others.
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  Speaker 3: But main Freight is just important because it's so big
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  Speaker 3: and so widely followed, and it's sort of right on
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  Speaker 3: the cusp of global growth because it's in the logistics business,
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  Speaker 3: transport big operations, not just here in New Zealand and
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  Speaker 3: in Australia, but also in Europe and Asia, in the US.
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  Speaker 3: So you always learn a lot from the main Freight result.
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  Speaker 3: And I think given what we're now seeing in terms
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  Speaker 3: of the geopolitical environment and what could that could mean
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  Speaker 3: for tariffs and the costs of moving things around, I
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  Speaker 3: think it would be a really interesting result to monitor.
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  Speaker 3: On Wednesday, Mark, it's good to talk to you.
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  Speaker 2: Thank you so much. Appreciate it, mate, This Mark Lister,
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  Speaker 2: Craig's Investment Partners, Shane Solly's on holiday or something like that,
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  Speaker 2: well called in sick or truant, I don't know, but anyway,
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  Speaker 2: Mark did a good job, didn't.
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