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

President Donald Trump recently announced that the United States and the European Union reached a framework for a trade deal.

Trump reportedly had talks with European Commission President Ursula von der Leyen in Scotland.

Harbour Asset Management spokesperson Shane Solly explains further.

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:17):
Now is Shane Solly Harbor Asset Management.

Speaker 3 (00:19):
Hey Shane, Hello Heather.

Speaker 2 (00:21):
Now, how have the markets reacted to the EU and
the US doing this trade deal?

Speaker 3 (00:25):
Well? Yeah, after a bit of golf in the weekend
in Scotland, mister Trump on barb of the US is
cut a deal with the European Union and now see
EU face fifteen percent tariffs on most of US exports.
That means they avoid the thirty percent plus number that
mister Trump tariff a little while ago. It doesn't include
pharmaceuticals and metal sets. It's except so the market likes it.

(00:48):
But what the market's also focusing on either is tonight
in Stockholm, mister percent the Treasury Secretary for the US
is meeting with the Chinese, and there's Arima come out
of the South China Morning Post saying that they're going
to extend the tariff truce by another three months. No sources,
of course, but that would mean that we're seeing that
can kick down the road. Certainly. I think this greater

(01:10):
certainty that we're seeing at the European deal, the Japanese
deal last year, just taking some of the risk away
for capital markets, supporting a further broad based recovery and
shear markets. Even our share market today had a bit
of a bounce to there either up zero point four percent,
but will take it so be more positive.

Speaker 2 (01:29):
How good do you think that Donald Trump's pressure is
going to lead to a cut by the FED the
Federal Reserve this week?

Speaker 3 (01:38):
Certainly heaping on the pressure. The short answer is the
markets don't think so. The market thinks the Federal Open
Market Committee it's going to hold the FED funds rate
at four point twenty five four point five percent range
on Thursday, watching for changes in the language, which you know,
the US economy is and pretty resilient. The inflation is
coming in lower, of course, so it's getting harder for

(01:59):
the US for the Reserve to say no. Every central
bank wants to see what tarrifs do, so there'll be
a few dissenters on the committee. We would not be
surprised to see cuts by the US Federal Reserve later
in the year, markets thinking December and another one in
twenty six. On Thursday, we might get a little bit
of a Skew saying the cuts are going to be
earlier or more substantial, so that will be driven by data.

(02:23):
And mister Powell has J Powell, the head of the Fed,
has been very resilient in pushing back on political pressure.

Speaker 2 (02:31):
Now we've had quite a few changes a spark today.
What's the market made of this?

Speaker 3 (02:36):
Yeah, so we've seen a couple of board member changes,
Lindsay Wright, Vinshawksworth and Trek Robauta coming on and Gordon
McLeod and Sheridan Broadbent coming off Spark. The Altelicom Newson
has been on under a lot of pressure to refresh
the board after share price has underperformed basically out the
last three years. It's underperformed by forty eight percent versus

(02:59):
the rest of the market, ie the U Zealand sharemakers
have about forte in the three years and sparks down
thirty four percent. How did the market react? Went up
the shear price. Sparkshire price went up zero point four
percent to two dollars forty nine. So kind of people
are taking it and saying, yep, directionally interesting, useful, Let's
see what happens next. Let's see some.

Speaker 2 (03:20):
More absolutely brilliant stuff, Shane, thanks so much, look after yourself.
We'll talk to you next week. Shane Solly, Harbor Asset Management.

Speaker 1 (03:26):
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