Shane Solly: Harbour Asset Management spokesperson on the market response to new Trump tariffs

President Donald Trump is set to impose new tariffs on Canada, Mexico and China - and the markets took a tumble overnight.

Canada and Mexico are facing 25 percent tariffs and China will be hit by a 10 percent tariff.

Harbour Asset Management's Shane Solly explains further.

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Episode Transcript

Speaker 1 (00:00):
Bryant Bridge twenty one minutes after six, Shane Solly's here
Harvest Asset Management to talk about the market. So today
the trade wars lots to talk about Shane good evening.

Speaker 2 (00:09):
Yeah, get ay right.

Speaker 1 (00:10):
So we've got these twerffs twenty five percent for Canada, Mexico,
ten percent for China. How the market's reacted?

Speaker 2 (00:17):
Yeah, look, yeah, sual announcement of the terriffs a little
bit of abortunity. Market investors have been anticipating some of this,
So the initial reactions are actually been pretty modest. The
US SHI market was down half a percent, Uistolla actually
was quite strong. Oil price up and US bawns up
pu IT. But we're actually seeing overnight there's a bit

(00:37):
more reaction to come. When I look at the futures,
I can see what markets are anticipating is a bit
more weakness coming through. So yet to see. We're seeing
a bit of reaction from some of the other countries
that are involved as well. So it's a pretty fast
evolving story.

Speaker 1 (00:50):
And what's been the impact specifically on New Zealand companies,
especially Fisher and Parkle.

Speaker 2 (00:55):
Yeah, look, we're not directly exposed. We are exposed to
a tip better between the US in China in particular,
and then there's this ten percent universal tariff that the
US governments still told them about. What we're really seeing
is our US dollar. Cross has done all the hard work, lind.
We've seen the New Zealand dollar back to fifty five
since and a half, so it's going to make those holidays.

(01:16):
So the U is very expensive, good good for people
coming down. We've seen now on New Zealand here make
it down one point four percent, and that has predominantly
been driven by Fisher and bi cale healthcare's weakness, and
I think you know what we've got to keep an
eye is really this ten percent tariffs that would hit
a wider range of economy. Dairy, meat, wine, all those

(01:36):
types of things would be knocked around by that ten percent.
But on the day, it's all about Fisher and Bible.

Speaker 1 (01:42):
We had a couple of another and a couple of
other announcements I should say today Feature Building, sky Stady,
what did you make of them? A new chair for
Feature Yeah.

Speaker 2 (01:50):
Look, we've seen Peter Crowley appointed as chair. He's been
on the board for a little while, and we've also
seen the ex Bunning's boss, Jackie Coombs adds in the punit.
I think this is hopefully the start of the business
being able to refocus on rebuilding itself. You know, we've
got Barbara Chapman, she's stepping down Flintchy Building. Ship price
on the day up slightly to two dollars eighty eight.

(02:11):
Sky City agreed to pay Izzie thirty eight million to
set a long running dispute with the South Australian Treasury,
so that really is a good resolution. It gets rid
of a sort of an overhand for it. I think
we're going to keep focusing on push on Pive were
as care for a while. The stock price was down
almost seven percent today, back with thirty five dollars and
ten Since we don't know exactly how long the tariffs

(02:33):
stay on, the company came out today and said, hey,
look we're okay for twenty twenty five, but if these
tariff's saying we're going to have to change where we produce,
they're going to bring more product back to New Zealand.
And of course at the moment the zelond production is
not getting hit with the tariff, and that would help,
that would reduce the impact, but still might see earnings
down five percent, so the market reacted to that risk
anywhere between five to ten percent downside to earnings. Share

(02:56):
price was down in reaction to that risk.

Speaker 1 (02:59):
Same thanks for that solid harbor Raset Management. For more
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