Shane Solly: Harbour Asset Management spokesperson on the state of the NZX after Trump's tariffs

The NZX50 index had fallen around 3.7 percent at the close of market today as Donald Trump's tariffs continue to reverberate globally.

It hasn't had a fall of this magnitude since the pandemic.

Harbour Asset Management's Shane Solly unpacks the economic fallout.

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Episode Transcript

Speaker 1 (00:00):
Shane Soli see Harbor Asset Management Shane, good evening, good evening, right,

(00:04):
good to have you on. So the big falls over
them in the US obviously at the end of last week,
and then we had the indets down. Today, we had
the A six down today, that's come back somewhat. We've
had Asian shares down. How did the insidets finish today?

Speaker 2 (00:19):
Yeah, we were down about three point seven busy. It
was quite a broad sell off today, Ryan weakness. Really
the market was dragged down for Fish and Buckle Healthcare, Orkneyport,
Infantil Main Freight Contact. But there was a very few
stocks that were in green, very few stocks that went
up today. Excuse me, but yeah, excuse me. Hong Kong
is the weakest market today, down twelve percent. They're catching

(00:40):
up the rest of the world after a couple of
days of holidays, so they're definitely caught up quite fast.

Speaker 1 (00:46):
And what is your take on why we had blood
Living on the Thursday and then we had even more
on the Friday, and then here in New Zealand and
in Asia we've had even more again. Is it because
perhaps everyone was thinking, oh Trumpell pull back and he'll negotiate,
and then over the weekend the rehetoric was not we're
sticking to our guns. Is that made things worse?

Speaker 2 (01:07):
Yeah? This reciprocal tariff actions are really putting pressure on
So today, over the week we we've had China and
tomorrow apparently the European Union going to come out with
some response to the tariffs. And it's really excuse me, right,
putting pressure on people's expectations of capitulation. What we did
see today though, is the Vietnamese government come out so, yeah,

(01:27):
we're going to remove all tariffs on you as imports.
That's the first glimming we've had of a deal. So
when we're looking for a circuit breaker, you know what
gets us out of this, it is potentially deals like this.
Of course, the other one being cuts by central banks
and interest rates, but we're a little way away from that.

Speaker 1 (01:44):
Yeah, and what about a circuit breaker? I mean, hopefully
things like that would keep happening, But what do you
think it would take to stabilize the market?

Speaker 2 (01:52):
Look, I think the market itself is putting pressure on
the regulations, it's putting pressure on the people that are
making policy changes. But we do think it's about literzies
and deals lit'sies and trade deals. It's also about can
these central banks cut rates? There's definitely plenty of room
for the central banks to cut rates, excuse me, And
of course our central bank is due to report Wednesday

(02:13):
this week and they should be cutting rates. Whether they
cut heavily is probably unlikely, but that's the sort of
thing we'll see investors revisit markets.

Speaker 1 (02:22):
All right, We better leave it there, Shane, you and
go and have a glasses of water. Shanks solely have
rested management.

Speaker 3 (02:27):
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