Latest / Best of Business / Shane Solly: Harbour Asset Management expert on investors calling for US rate cuts after weak payrolls report

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Shane Solly: Harbour Asset Management expert on investors calling for US rate cuts after weak payrolls report · Best of Business

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  Speaker 1: You're listening to a podcast from news Talk zed B.
• 0:12
  Speaker 1: Follow this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 1: Shane Sally Harbor Asset Management is with us.
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  Speaker 2: Hello Shane, Hello Eaver.
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  Speaker 1: So the US non farm payrolls data was a bit
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  Speaker 1: weak on Friday. Had the markets react?
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  Speaker 2: Yeah? Look, it doesn't sound very exciting, but it's quite
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  Speaker 2: a meaningful with this the US non fun payroll as well,
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  Speaker 2: they're just twenty two thousand job ads in August, means
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  Speaker 2: the US jobless rates up to four point three percent.
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  Speaker 2: It's another sign that the US Federal Reserve needs to
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  Speaker 2: get on with rate cats. Now, how did the markets
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  Speaker 2: react us? She might pretty flat down a little bit
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  Speaker 2: down point three. But the big move there was in
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  Speaker 2: bond yields. These long term government bond yards fell, and
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  Speaker 2: that's telling us that the market starting to expect rate
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  Speaker 2: cuts and think in fact, we're seeing up to three
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  Speaker 2: rate cuts from the U Central Bank price and were
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  Speaker 2: actually saill two year agavement bonds fall to three point
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  Speaker 2: five to two percent, which is the lowest since twenty
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  Speaker 2: twenty two. Locally here today we've seen our two year
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  Speaker 2: bond years down as well. We're down to two ninety six,
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  Speaker 2: so below three percent, and the New Zealand Shi mark
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  Speaker 2: wears up almost zero point four percent. We've been great
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  Speaker 2: for it's four percent today, Yeah, more like a tenth
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  Speaker 2: of it.
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  Speaker 1: Hey, what about the Chinese economic data that also wasn't
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  Speaker 1: that that flash?
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  Speaker 2: Yeah? Look, we will continue to see some soft data
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  Speaker 2: coming out of China. That August export and import data,
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  Speaker 2: they were below expectations, just showing us that this Chinese
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  Speaker 2: manufacturing machine is slowing down what we are seeing. On
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  Speaker 2: the other hand, though, here there is Chinese regulators talking
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  Speaker 2: about simulating economy. There's some reports about policies to support
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  Speaker 2: consumption in the form of tourism, culture, lifestyle. There's some
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  Speaker 2: opening up of the taps and residential property market. Sin's
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  Speaker 2: in that's the third largest city in China, approximately seventy
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  Speaker 2: and a half million people were there. Going to remove
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  Speaker 2: home purchase restrictions, so meaning people without local household registration
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  Speaker 2: you can buy a house. Quite a meaningful change we've
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  Speaker 2: seen in Shanghai, for example, where we've seen similar changes
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  Speaker 2: the house prices that actually increased sort of seven to
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  Speaker 2: eight percent month on month, So that's quite an important signal.
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  Speaker 2: We're trying to really get that Chinese a kind of aging.
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  Speaker 2: And then a final point, mister G. President G is
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  Speaker 2: going out announcing that China will drive trade and investment liberalization.
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  Speaker 2: So he's of a pushback maybe to some of these
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  Speaker 2: global tariff barriers that are coming through.
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  Speaker 1: Yeah, what about the stuff that's been happening here locally.
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  Speaker 2: Yeah, today we saw a couple of interesting corporate announcements.
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  Speaker 2: Tourism Holdings announced that's the recreational van hire company. When
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  Speaker 2: you're doing a trip around South Onland, you're in one
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  Speaker 2: of their great vans. They have made the hard call
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  Speaker 2: and they're going to reset their Australian retail business. They're
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  Speaker 2: going to basically change the models to using the type
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  Speaker 2: of vans conciding the brand, and they're going to reduce
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  Speaker 2: the inventary levels. Also, they're going to close some branches
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  Speaker 2: in Sydney and Brisbane, some of their sales branches, not
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  Speaker 2: their rental branches, the places with their cell vans. Share
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  Speaker 2: prices up slight the other day and we saw Investor,
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  Speaker 2: which is a properly company mainly with retail real estate
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  Speaker 2: by the Silverdale Retail from its current Stride property one
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  Speaker 2: hundred and fortyeen million dollars and they're always going to
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  Speaker 2: raise sixty two and a half million via subordinated convertible notes.
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  Speaker 2: Pretty flat on both those stocks on the day, So yeah,
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  Speaker 2: we're seeing a little bit of activity coming up in
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  Speaker 2: the market here.
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  Speaker 1: Good stuff, Hey, Shane, thanks as always appreciate it. Shane Soally,
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  Speaker 1: Harbor Asset Management. For more from News Talk sed B,
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