Shane Solly: Harbour Asset Management spokesperson on financial markets pricing in interest rate cuts

Markets around the world are pricing in potential cuts to interest rates.

Last Friday saw PCE inflation in the US rise 0.2 percent over the month to be up 2.6 percent on a year ago, bolstering federal rate cut expectations.

Harbour Asset Management's Shane Solly explains why this has been happening.

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Episode Transcript

Speaker 1 (00:00):
Shane solely from Harbor Asset Management is with us A
Shane Hi here. That so well, thank you mate. So
we see the markets around the world of continuing to
price in the interest rate carts, right, is this should
we be expecting this base on the data we're seeing?

Speaker 2 (00:13):
Yeah, Look, I think we continue to see release data
releases during the month that show US as this market
friendly profile and moderating price pressure and activity falling without
blowing up. That supports central banks continuing the cut rates.
Last week on Friday, we saw the US Personal Consumption
experision of inflation, that's the one the US said watches

(00:35):
coming in line with expectations about point two percent up
for the month, So nothing to disturbed markets. Markets are
expecting a quarter of percent cut September from the Fed,
and certainly it's on track. We've got some data out
on Friday, the US employment data that will be really
closely watched. But where it's the case is whether it's
a quarter or half a percent. So yeah, the data's

(00:55):
on track.

Speaker 1 (00:56):
Okay, So they're looking okay in the US. What the
hell's going on with China? Hmm?

Speaker 2 (01:00):
Yeah, really, Max, we see some really choppy data out
of China. Today we saw one set of data the
Kaijen Manufacturing Purchasing Management Index. It's a bit of a
mouthful to lead indicator for inputs particularly from small medium
size enterprise, and that was good. It was fifty point four,
so above expectations which are fifty and that thinking there

(01:20):
was a bit of an expansion. But on over the
weekend we saw another set of data which is the
Official Manufacturing and Purchasing Mandarindix, which is state owned enterprises,
so different set from the small medium sized enterprise and
that came in lower at forty nine point one. A
lot of expectations are twenty nine point five and that
suggests the economy is slowly so look the data just

(01:42):
is mixed, it just reduced. Now the Chinese economy continuing
to go to a bit of research. So something to
watch for New Day on Economy because.

Speaker 1 (01:48):
The stuff Shane is always good to talk to you.
We'll talk to you next week, mate, look after yourself.
Shane solely harbor Asset Management.

Speaker 2 (01:54):
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