The Government is taking action and giving Kiwibank a financial boost in order to bolster banking competition.
A new Commerce Commission report on banking has found the sector isn't competitive enough - and offered up14 recommendations.
Harbour Asset Management spokesperson Shane Solly says this is an important step - and signals key changes to come.
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Speaker 1 (00:00):
But we just had Nicola Willis, the Finance Minister, on
the program telling us that she is beefing up Keywi Bank,
allowing five hundred million dollars of extra capital into Kiwi
Bank to try and bolster it, to try and make
it more competitive against the Australian owned banks and hopefully
increase competition in the sector, thereby reducing prices for us.
Does that sound like a pipe dream? Let's go to
(00:20):
Shane Solely Harborrestic Management, Shane good evening.
Speaker 2 (00:22):
Yeah, hey, Ryan, how are you good? Thank you?
Speaker 1 (00:24):
Is this plan going to work?
Speaker 2 (00:26):
Look?
Speaker 3 (00:26):
I think it's it's a start, right, There's a long
way to go with this business. Certainly injecting another five
hundred million into the business provised with a better competitive
start point with Australian banks. I think importantly, Minster Willis
has talked about opening up that five hundred million to
broader range of husy on investors. Right, The key, we
say is the institutional investors, So really opening up the
(00:48):
taps there and that changes things over the medium term.
And I think so there is there is a bit
of a change in the tone here. This is an
important move.
Speaker 1 (00:56):
Yeah, you mentioned the institutional and the key we saver funds,
et cetera. But what about the rest of us. We're
potentially a couple of years away. What does that do
to the share price?
Speaker 2 (01:06):
Yeah, look, I think a good point Ryan.
Speaker 3 (01:08):
One of the things is many of us are investors
in QSA this, so you and I will have a
small amount of capital potentially invested in this QUSA fund
before potentially from the twenty eight posts and new digital transformation.
So I think, you know, we've got a long way
to go. It's going to take time for the business
to put that keble to work, so hopefully they do
(01:29):
a good job.
Speaker 1 (01:30):
Yeah, have obviously a lot of retric today from the
Finance minister. Have the big banks share prices reacted to
the news?
Speaker 2 (01:37):
Well, I think it's earlier, right.
Speaker 3 (01:38):
It's going to take time for investors to really analyze
what this revised financial politive limit and what the reserve
bank expectations change mean. You know, we are going to
watch closely what the risk waiting for bank lending and
the minimum capital requirements for new interrants. Those they're probably
the two biggis and soon as the announcements. But yeah, look,
the initial reaction was pretty muted. Australian bank shap price
(02:02):
was actually down a half a percent to thirty eight
sixty Australian we spacked twenty flat thirty two seventy seven
Australian CBA actually up one percent to one hundred and
fifty eight dollars eighty Australian. The interesting one's A ANDZ.
That shap price was down three point four percent to
Australian thirty dollars ten. The current chief executive officer, Shane Elliott,
has retired and as replacement is a chap called Nuna
(02:24):
Metos who's come from HSBC. So the market was kind
of a bit there. So no I think in today,
no reaction from the Australian banks at this stage. But look,
you know, give it twenty four hours that maybe some
move tomorrow.
Speaker 1 (02:37):
All right, we'll keep an eye on it. What about
Aulkland International Airport? Obviously the council has sold off its years.
Speaker 3 (02:41):
Any change, Yeah, Look, I think what we've seen is
that that saildown was really well accepted by a wide
range of investors. It increases this investable pool for US
and our KIV servers, Ryan and others, and so we
have actually seen the sheep price go up again today,
up another two point seven percent to eight dollars twenty
four and one of the main reasons was because it's
(03:03):
waiting in the benchmark insoex fifty, that's the one that
many people's qis that are a match too, went up
really good demand, and I think that opens the door
for other quality defensive businesses to potentially seut on blocks.
And if I think about some of the council in
stakes and they port a tarra or maype your port
and even some of the usialand government owned stakes and
(03:25):
companies like Meridian, Mercury Genesis, and of course KII Bank.
Speaker 1 (03:28):
Today, Yeah, yeah, I hate. I see Jerome Powell. Trump
has said you can keep your job for now. I
think I think he's on to turn three to twenty
twenty six. But the Fed obviously making another rate cut decision.
We had weaker US unemployment data come out, a softer
US unemployment data to come out last week. What do you pick?
Speaker 3 (03:46):
Yeah, I think we are on track for the Fed
to cut another point two five percent that's due next
week on the eighteenth, and the market is sidly baked
and about eighty five percent probably that occurring after these
week your own employment data. That helping you see all that,
Brian that the US Fed speakers they've been sort of
go now we can perhaps tape taper the pace of
(04:06):
rate cups. That activity is really strong in the US,
it's robust, and certainly inflation it's slowing, but we're just
keeping one it. Yeah, the odds are that they're going
to cut another point two five percent.
Speaker 1 (04:17):
The Chinese Central Economic Work Conference.
Speaker 3 (04:20):
Sell it to me, Shane, Yeah, it's one that's a
bit of a sleeper people.
Speaker 2 (04:24):
Don't keep an eye on, and you've picked it up. Well.
Speaker 3 (04:27):
It's an extension of the Poop Bureau meeting that happened
a few months ago when the Chinese government actually have
a bunch of different policies to try and stimulate the economy.
And of course we're in a Trump trade war two
point zero environment. Now the Chinese regulators can perhaps see
some of the policy coming down. So we're going to
be looking for policies that support domestic demand next year,
(04:47):
particularly in property and consumption. You know, this is a
pretty cautious about getting too much out. We're not expecting
a lot, but there could be some upside, particularly for
New Zealand. Goods and services explorers. If we do see
some more stimulus STUF to come through the Chinese economy
obviously been pretty slow with the last few years.
Speaker 1 (05:03):
Yeah, absolutely crucial for us and really interesting analysis Shane.
Thank you very much. Shane Soley the harbor Asset Management
with us this evening just gone twenty four minutes after six.
For more from Hither Duplessy Allen Drive listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
But we just had Nicola Willis, the Finance Minister, on
the program telling us that she is beefing up Keywi Bank,
allowing five hundred million dollars of extra capital into Kiwi
Bank to try and bolster it, to try and make
it more competitive against the Australian owned banks and hopefully
increase competition in the sector, thereby reducing prices for us.
Does that sound like a pipe dream? Let's go to
(00:20):
Shane Solely Harborrestic Management, Shane good evening.
Speaker 2 (00:22):
Yeah, hey, Ryan, how are you good? Thank you?
Speaker 1 (00:24):
Is this plan going to work?
Speaker 2 (00:26):
Look?
Speaker 3 (00:26):
I think it's it's a start, right, There's a long
way to go with this business. Certainly injecting another five
hundred million into the business provised with a better competitive
start point with Australian banks. I think importantly, Minster Willis
has talked about opening up that five hundred million to
broader range of husy on investors. Right, The key, we
say is the institutional investors, So really opening up the
(00:48):
taps there and that changes things over the medium term.
And I think so there is there is a bit
of a change in the tone here. This is an
important move.
Speaker 1 (00:56):
Yeah, you mentioned the institutional and the key we saver funds,
et cetera. But what about the rest of us. We're
potentially a couple of years away. What does that do
to the share price?
Speaker 2 (01:06):
Yeah, look, I think a good point Ryan.
Speaker 3 (01:08):
One of the things is many of us are investors
in QSA this, so you and I will have a
small amount of capital potentially invested in this QUSA fund
before potentially from the twenty eight posts and new digital transformation.
So I think, you know, we've got a long way
to go. It's going to take time for the business
to put that keble to work, so hopefully they do
(01:29):
a good job.
Speaker 1 (01:30):
Yeah, have obviously a lot of retric today from the
Finance minister. Have the big banks share prices reacted to
the news?
Speaker 2 (01:37):
Well, I think it's earlier, right.
Speaker 3 (01:38):
It's going to take time for investors to really analyze
what this revised financial politive limit and what the reserve
bank expectations change mean. You know, we are going to
watch closely what the risk waiting for bank lending and
the minimum capital requirements for new interrants. Those they're probably
the two biggis and soon as the announcements. But yeah, look,
the initial reaction was pretty muted. Australian bank shap price
(02:02):
was actually down a half a percent to thirty eight
sixty Australian we spacked twenty flat thirty two seventy seven
Australian CBA actually up one percent to one hundred and
fifty eight dollars eighty Australian. The interesting one's A ANDZ.
That shap price was down three point four percent to
Australian thirty dollars ten. The current chief executive officer, Shane Elliott,
has retired and as replacement is a chap called Nuna
(02:24):
Metos who's come from HSBC. So the market was kind
of a bit there. So no I think in today,
no reaction from the Australian banks at this stage. But look,
you know, give it twenty four hours that maybe some
move tomorrow.
Speaker 1 (02:37):
All right, we'll keep an eye on it. What about
Aulkland International Airport? Obviously the council has sold off its years.
Speaker 3 (02:41):
Any change, Yeah, Look, I think what we've seen is
that that saildown was really well accepted by a wide
range of investors. It increases this investable pool for US
and our KIV servers, Ryan and others, and so we
have actually seen the sheep price go up again today,
up another two point seven percent to eight dollars twenty
four and one of the main reasons was because it's
(03:03):
waiting in the benchmark insoex fifty, that's the one that
many people's qis that are a match too, went up
really good demand, and I think that opens the door
for other quality defensive businesses to potentially seut on blocks.
And if I think about some of the council in
stakes and they port a tarra or maype your port
and even some of the usialand government owned stakes and
(03:25):
companies like Meridian, Mercury Genesis, and of course KII Bank.
Speaker 1 (03:28):
Today, Yeah, yeah, I hate. I see Jerome Powell. Trump
has said you can keep your job for now. I
think I think he's on to turn three to twenty
twenty six. But the Fed obviously making another rate cut decision.
We had weaker US unemployment data come out, a softer
US unemployment data to come out last week. What do you pick?
Speaker 3 (03:46):
Yeah, I think we are on track for the Fed
to cut another point two five percent that's due next
week on the eighteenth, and the market is sidly baked
and about eighty five percent probably that occurring after these
week your own employment data. That helping you see all that,
Brian that the US Fed speakers they've been sort of
go now we can perhaps tape taper the pace of
(04:06):
rate cups. That activity is really strong in the US,
it's robust, and certainly inflation it's slowing, but we're just
keeping one it. Yeah, the odds are that they're going
to cut another point two five percent.
Speaker 1 (04:17):
The Chinese Central Economic Work Conference.
Speaker 3 (04:20):
Sell it to me, Shane, Yeah, it's one that's a
bit of a sleeper people.
Speaker 2 (04:24):
Don't keep an eye on, and you've picked it up. Well.
Speaker 3 (04:27):
It's an extension of the Poop Bureau meeting that happened
a few months ago when the Chinese government actually have
a bunch of different policies to try and stimulate the economy.
And of course we're in a Trump trade war two
point zero environment. Now the Chinese regulators can perhaps see
some of the policy coming down. So we're going to
be looking for policies that support domestic demand next year,
(04:47):
particularly in property and consumption. You know, this is a
pretty cautious about getting too much out. We're not expecting
a lot, but there could be some upside, particularly for
New Zealand. Goods and services explorers. If we do see
some more stimulus STUF to come through the Chinese economy
obviously been pretty slow with the last few years.
Speaker 1 (05:03):
Yeah, absolutely crucial for us and really interesting analysis Shane.
Thank you very much. Shane Soley the harbor Asset Management
with us this evening just gone twenty four minutes after six.
For more from Hither Duplessy Allen Drive listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
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