Latest / Best of Business / Shane Solly: Harbour Asset Management spokesperson on whether the OCR will cut rates in August

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Shane Solly: Harbour Asset Management spokesperson on whether the OCR will cut rates in August · Best of Business

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  Speaker 2: With us Now we have Shane Solely of Harbor Asset
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  Speaker 2: Management Evening Shane, Hello, Heather, So what do you reckon
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  Speaker 2: with the inflation? We got that OCR cut Lockton for
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  Speaker 2: next month.
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  Speaker 3: M Yeah, look at the data out today certainly puts
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  Speaker 3: a bit of pressure back on reserve bank rate cut
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  Speaker 3: in August. I think when we look at the central
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  Speaker 3: bankers around the world, they're all watching to see what
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  Speaker 3: tariff it's due to inflation, so they're all a bit
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  Speaker 3: weary about cutting and advance of there. But you know,
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  Speaker 3: this inflation data we're seeing here and us on is
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  Speaker 3: certainly putting an official rate cut back on the table
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  Speaker 3: for August, so I think we shall be thinking about that.
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  Speaker 3: In fact, the market today moved to now procing in
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  Speaker 3: an eighty five percent chance of a cut in August.
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  Speaker 3: That was up from seventy percent four year today's data
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  Speaker 3: change and look markets like that. We saw two yus
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  Speaker 3: what breaks many people that's used by a lot of
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  Speaker 3: banks to see interest rates. They fell by zero point
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  Speaker 3: six percent. Not a lot, I know, but it's down
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  Speaker 3: to three fifteen and the New Zealand Shire market was
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  Speaker 3: up almost zero point six percent today and that was
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  Speaker 3: led up by some of our heavyweights like Fish and
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  Speaker 3: Parkway health Care ukin Airport A two. So yeah, generally
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  Speaker 3: a more positive tone and capital markets.
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  Speaker 2: Okay, what do you think about that update from Contact Energy?
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  Speaker 3: Yeah, so Contact Energy got a good solid operating update
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  Speaker 3: for the June month and importantly they're talking about better hydrology.
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  Speaker 3: So more more the rain that we've all been having
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  Speaker 3: to deal with is found its wen in the dams
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  Speaker 3: and it's actually helped Contact They've they've looked like they've
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  Speaker 3: come out with a better twelve months result than the
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  Speaker 3: market was expecting. The result reflects a bit of geffmal
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  Speaker 3: generation last year obviously at low hydro, but really importantly
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  Speaker 3: for New Zealand the system wide controlled hydro stories or
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  Speaker 3: the dams they're full and that should just keep a
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  Speaker 3: cap on. The rest is around power aullages and certainly
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  Speaker 3: you know spike electricity prices, so that's good, it's good
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  Speaker 3: for New Zealand.
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  Speaker 2: Hey, running through what you've seen with the New Zealand
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  Speaker 2: company management teams buying and selling shares in the companies.
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  Speaker 3: Yeah, look, in the last a few days, we've seen
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  Speaker 3: a couple of interesting announcements. The management of the retirement
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  Speaker 3: and HQ company Ryman obviously been under pressure in the
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  Speaker 3: last year or so. They've stepped up and been buying
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  Speaker 3: a lot of shares. You know, there's a bit of
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  Speaker 3: a positive signal in terms of their company emerging from
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  Speaker 3: what's been a pretty challenging period of time. On the
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  Speaker 3: other side, we saw online travel company Circo CEO. He's
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  Speaker 3: saw a little bit of stock first time in a
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  Speaker 3: long time, so he hasn't tended to sell stock. Tax
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  Speaker 3: obligations either, unfortunately, but he's got to pay the tax.
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  Speaker 3: He's got long team as interest and he's got to
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  Speaker 3: pay the tax bill. On either side. Not unusual, we
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  Speaker 3: do see it often, but you know, just a little
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  Speaker 3: bit of a you know, he's taking some money to
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  Speaker 3: pay that hard tax bill.
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  Speaker 2: All right. So the US company earning season has started
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  Speaker 2: for the second quarter. How's it going.
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  Speaker 3: Yeah, look, last week with a little bit inconclusive, which
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  Speaker 3: sounds weird, but you know, we had the big banks
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  Speaker 3: come out and they were okay. Things like Netflix it
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  Speaker 3: was okay, but the results the share prices after is
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  Speaker 3: were notarticularly strong, and that just might have been a
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  Speaker 3: surprise to many. We've had a strong market going into this,
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  Speaker 3: and what we need is these earnings numbers to beat,
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  Speaker 3: and they haven't quite done that yet. So when we
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  Speaker 3: think about how tough the world has been the last
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  Speaker 3: twelve months, the one thing that stands out as profit
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  Speaker 3: margins have been pretty good over there. This week, we're
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  Speaker 3: getting a bunch of technology stocks coming out, so certainly
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  Speaker 3: they'll need to be good numbers to keep that market going,
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  Speaker 3: and we've certainly seen just a little bit of heat
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  Speaker 3: come out of that US market.
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  Speaker 2: Short two, good stuff, Shane, Thanks so much, Shane, Solly
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  Speaker 2: Harbor Asset Management.
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