Greg Smith: Devon Funds expert on the factors driving the NZ markets up

New Zealand's financial markets have taken a positive turn - following months of financial uncertainty. 

Greg Smith from Devon Funds unpacked the factors behind these changes.

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Episode Transcript

Speaker 1 (00:00):
Now let's get an update from the markets today. Greg
Smith from Devin Funds is with us.

Speaker 2 (00:04):
Hey.

Speaker 1 (00:04):
Greg, Hey, it's very good to talk to you. Now.
The key we market had a good session. It's up
zero point eight percent. What's been driving this optimism?

Speaker 2 (00:12):
Yeah, that's what I mean, sort of running on the
back of the optimism in the US. I mean, what
trade warth the S and P five hundred, I mean,
that's crawed back all its losses since Liberation Day, and
it's actually been on a bit of a bit of
a record run. So I suppose you investors are sort
of pricing in, you know, the worst case scenario that
you know, when you produce that border a few weeks back,
not not happening. So you know, we've got hundreds of

(00:33):
deals evidently coming in the next sort of two months.
And I suppose what we're really waiting on is some
sort of meeting of the minds between China and the US.
And yea, it still seems to be a bit of
cat and mouse. You know, there's been conciliatory tones, there's
been exemptions China set on Friday. That's sort of already
for talks. Trump said over the weekend that he's not

(00:54):
going to speak to Beijing this week. So I think
that's what investors sort of looking for that you know,
that's going to be better than fear from that regard.
So yeah, the US market's sort of pushing high. I
mean the New Zealand market didn't fall as most as
much as most anyway, but it's yes, sort of sort
of clawing things back as you mean, zero point eight percent.
We've got fish and park Or we know one of

(01:15):
our exporters of suppose most in the frame with respect
to teriffs, but that's sort of in compliance of this
agreement between US, Canada and Mexico and had a lot
of its I suppose operations in Mexico which supplies the US.
And then we've got main freight as well, and that's
been sort of wearing a bit of toil from the
tariff side of things. But yeah, seventy five percent of
earning of earnings come from Australia New Zealand, so use

(01:37):
is a bit of relevant. I mean, it's only around
about eight percent of earnings. So that had a great
down Friday, up twelve percent on its training update. It's
up again today as well, by two point four percent.

Speaker 1 (01:48):
What do you make of Trump and there's tariffs on
foreign made movies? What impact will that have?

Speaker 2 (01:53):
Well? I hate the whole tariff war has been a
bit of a soap opera, hasn't it. I Mean that's
been sort of lurching from one drama to an. Now
it actually has Hollywood. So I've got potentially one hundred
percent tariff on movies not made in America. He says
he wants to stop the slow death of Hollywood. I
suppose as usual and as we've become accustomed to with
Trump and all things on the trade front been quite

(02:14):
light on detail. So is it going to apply to
just movie showing and cinemas? Is it going to apply
to things on streaming as well? But yeah, it certainly
potentially going to have an impact, obviously, Chris, like someone's
speaking today, But you know, lord of the rings made
in New Zealand or movies made in Australia, you know
they are going to be potentially caught. So yeah, I'm
not going to be great for sort of the film
industries abroad. So yeah, pretty pretty amazing. We've sort of

(02:37):
no stone untouched with respect to the Tower Forum. We
have to sort of see where this all goes. But yeah,
so it just goes as suppose to the to the
soaproper that has been the trade war over the past
five weeks or so.

Speaker 1 (02:49):
Lord, it would be a soaproper if it didn't cost
us so much. Greg, Thank you so much, appreciated you
awsome at Gregsmith of Devon Fans.

Speaker 2 (02:56):
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