Latest / Best of Business / Shane Solly: Harbour Asset Management spokesperson on the market reactions to the Iran-Israel conflict

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Shane Solly: Harbour Asset Management spokesperson on the market reactions to the Iran-Israel conflict · Best of Business

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  Speaker 2: With me now though Shane Solly Harbor Asset Management. Hey Shane,
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  Speaker 2: Hello on Ember Shane. So, how the capital markets reacted
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  Speaker 2: to this Iran Israel conflict.
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  Speaker 3: Yeah, So Friday we saw the U S. Shia market
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  Speaker 3: in the U S and P five hundred, which is
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  Speaker 3: the broad market, down about one point one percent. Since then,
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  Speaker 3: we've since the closes, I've seen another escalation and conflict,
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  Speaker 3: a lot more bombardments of each other's, particularly the energy infrastructure.
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  Speaker 3: So look, we're just watching to see what the US
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  Speaker 3: market does when you open the futures, which is the
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  Speaker 3: forward looking indicators actually slightly up. We don't know. Locally,
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  Speaker 3: we saw the New Zeon dollar pretty stable against the
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  Speaker 3: US dollar today, about sixty point two eight nhs being yielded.
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  Speaker 3: The New Zion tenure government bond Yers that was up
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  Speaker 3: a little bit just under ten besis points, so back
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  Speaker 3: to four point sixty four percent. Maybe that's about people
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  Speaker 3: thinking about invation on the back of higher oil prices.
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  Speaker 3: And actually the New Zealand Shire market was up one
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  Speaker 3: percent today, is led by strength and some of our
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  Speaker 3: growth stocks, utilities and infrastructuous used. So probably a bit
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  Speaker 3: of a surprise for some people on that one.
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  Speaker 2: What do you reckon is the key risks from the
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  Speaker 2: conflict to economies and markets from here on in.
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  Speaker 3: Yeah, look, it's tough to know how this is going
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  Speaker 3: to turn out. Clearly some real human tragedy yere, we've
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  Speaker 3: got to go into that. But for the global economies
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  Speaker 3: and capital markets, probably the biggest risk is that Iran
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  Speaker 3: or it's our ways disrupt the slate, the straits of homes.
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  Speaker 3: That's with is a lot of oil comes through the
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  Speaker 3: conflict widens and we actually see some inflation go up
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  Speaker 3: on the back of it. Since we've had this conflict.
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  Speaker 3: Keeckoff with Texas Internedio oil prices it's the main one
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  Speaker 3: of the reference points for oil going to just under
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  Speaker 3: seventy three dollars use a barrel. That's twelve up in
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  Speaker 3: a week, So tough one for us in New Zealand.
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  Speaker 3: The risk is a lot of that oil out of
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  Speaker 3: our own goest to China, and if there's a problem
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  Speaker 3: there then slows the Chinese economy down, slows our economy down,
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  Speaker 3: and just higher energy prices not good for inflation in
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  Speaker 3: this part of the world.
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  Speaker 2: Shane, what do you make of this takeover offer for
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  Speaker 2: tourism holdings?
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  Speaker 3: Yeah, so interesting. One we had a sensitive non binding
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  Speaker 3: offer for theres and holdings is their Candavan operator from
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  Speaker 3: a group called BGH Capital that's a private equity firm
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  Speaker 3: and back for by the Australian Trichet family who had
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  Speaker 3: backed some Australian essets and tourism holdings a few years ago.
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  Speaker 3: The bid two dollars thirty. That's fifty seven percent above
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  Speaker 3: Friday's close a one for Hysic. Pretty healthy. They've got
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  Speaker 3: the backing of Truche that true SCHA holders holders and
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  Speaker 3: also as the A and D and Wilson Hessey Management,
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  Speaker 3: so BGH has got about a twenty percent stake. Now
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  Speaker 3: there's no studency on the transaction. Uh, it's subject to
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  Speaker 3: dubiligence and funding board recommendations. But BGH they've got a
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  Speaker 3: history of being pretty patient on these things. So we
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  Speaker 3: saw that tourism holding ship Ice closed at two dollars
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  Speaker 3: thirty today. A little bit to play out here here though,
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  Speaker 3: I think I think we've got somewhere to go. But
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  Speaker 3: you know, that's a bit of a reminder that parts
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  Speaker 3: of our seer market are pretty attractive to overseas investors.
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  Speaker 2: Yeah, Sean, Hey, thanks very much. It's good to talk
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  Speaker 2: to you. Appreciate it, mate. That Shane's Holy Harbor Asset Management.
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