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

Israel and Iran have been engaged in air strikes for several days now - and experts have wondered what the conflict could mean for the wider world.

It's day three of the latest conflict, as the two countries exchange deadly attacks following Israel's initial assault on Friday. 

Harbour Asset Management's Shane Solly unpacked the market reactions.

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Episode Transcript

Speaker 1 (00:00):
With me now though, Shane Soli Harbor Asset Management, Hay
Shane Hollo ever Shane. So how the capital markets reacted
to this Iran Israel conflict.

Speaker 2 (00:09):
Yeah, So Friday we saw the U S. Shiar market
in the U S and P five hundred, which is
the broad market, down about one point one percent. Since then,
we've since the clothes, I've seen another escalation of conflict,
a lot more bombardments of each other's, particularly the energy infrastructure.
So look, we're just watching to see what the US
market does when they open the futures, which is the
forward looking indicators, did actually slightly up, we don't know. Locally,

(00:32):
we saw the New Zealand dollar pretty stable against the
US dollar today about sixty point two eight cents. The
yielded the New Zion ten ure government bond years that
was up a little bit just under ten basis points
back to four point sixty four percent. Maybe that's about
people thinking about invation on the back of higher oil prices.
And actually the New Zealand Shire market was up one
percent today and that was led by strength and some

(00:52):
of their growth stocks utilities and infrastructure's used so prohibit
of a surprise for some people on that one.

Speaker 1 (00:58):
What do you reckon is the key risks from the
conflict to economies and markets from here on in.

Speaker 2 (01:02):
Yeah, look, it's tough to know how this is going
to turn out. Clearly, you know, some real human tragedy here,
we've got to go into that. But for the global
economies and capital markets, probably the biggest risk is that
Iran or it's our ways disrupt the slate straits of homes.
That's with is a lot of oil comes through the
conflict widens and we actually see some inflation go up
on the back of it. Since we've had this conflict

(01:24):
checkoff with Texas intermedio ail proces, it's the main one
of the reference points for oil going to just under
seventy three dollars use a barrel, that's twelve up in
a week, So tough one for us in New Zealand.
The risk is a lot of that oil out of
our own gost to China, and if there's a problem
there then it slows the Chinese economy down, slows our
economy down, and just higher energy prices not good for

(01:45):
inflation in this part of the world.

Speaker 3 (01:47):
Shane, what do you make of this takeover offer? For
tourism holdings.

Speaker 2 (01:52):
Yeah, so interesting. One we had at the set of
non binding offer for and holdings is the Candadown operator
from a group called BGH Capital that's a private equity
firm and back for by the Australian Trichet family who
had backed some Australian assets and to tourism holdings a
few years ago. The bid two dollars thirty. That's fifty

(02:13):
seven percent above Friday's Clothes at one forty six. Pretty healthy.
They've got the backing of Truche that True Schase Holders
holders and also acs AMD and Wilson Hesy Management, So
BGH has got about a twenty percent stake. Now there's
no studency on the transaction. Uh, it's subject to due
diligence and funding board recommendations. But BGH they've got a

(02:34):
history of being pretty patient on these things. So we
saw about tourism holding sep Ice closed at two dollars
thirty today. A little bit to play out here here
that I think, I think we've got somewhere to go.
But you know, that's a bit of a reminder that
parts of our sheer market are pretty attractive to overseas investors.

Speaker 3 (02:48):
Yeah, Sean, Hey, thanks very much, it's good to talk
to you. Appreciate it.

Speaker 2 (02:51):
Mate.

Speaker 3 (02:51):
That Shane solely harbor Asset Management.

Speaker 2 (02:54):
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