Shane Solly: Harbour Asset Management spokesperson on the US and China's trade talks

The US and China have agreed to slash their reciprocal tariffs by 115 percent for 90 days.

Washington imposed a 145 percent tariff on Chinese imports at the start of the year - and Beijing responded with a 125 percent levy on some US goods.

But this weekend's trade negotiations between US and Chinese officials in Switzerland appear to have gone well. 

Harbour Asset Management's Shane Solly explains further.

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Episode Transcript

Speaker 1 (00:00):
Now Shane solely harbor asset management is with us. Hey Shane, Hi, Okay,
so we've got the trade talks. What's the latest?

Speaker 2 (00:07):
Yeah, Look, so the US and Chinese governments have both
reported substantial progress. They spending two days in Switzerland having talks,
say but de escalating the trade war. They haven't released
any specifics, but the Chinese Vice Premier he left thing.
He said the two biggest economists have agreed to create
a mechanism for further talks. Now tonight CMPU in New

(00:27):
Zealand time, US Treasurer Scott said he's going to do
a briefing on the China talk. So it's notice pending, noticepending.

Speaker 1 (00:35):
How are the capital markets reacting?

Speaker 2 (00:37):
Look going into the weekend, there was actually pretty low
expectations market. It's pretty much of the view that the
sisters the starter, there's the icebreaker. But if these statements
from the two governments are actually correct about the talks
being sustained, it's a better outcome. You know, the truthers
will still left arras and they will still lead to
slower activity and unfortunately a little bit higher inflation, but

(00:59):
it'll be less add So what we've seen in New
Zealand's trading time as the US dollar has gone up,
the US shaar market's actually the futures, this is the
forward market that gets traded outside normal time, is up
about one and a half percent plus. And locally we
saw a slightly better down in the New Zealand shre
market up half a percent. Main Frat that was the
big leader on the day, up five percent to sixty

(01:21):
six dollars. It is potentially a benefit of beneficiary of
the storing and trade between China and US, but really
until we sort of see the details, it's just words
suiting that Swiss chocolate might have hit the spot in
terms of sweeting things up there.

Speaker 1 (01:35):
Now with the market surprised by Donald trumps announcement on pharmaceuticals.

Speaker 2 (01:40):
Yeah, so we've sort of got win that there was
something due to be announced late last week and so
what has come out on as social media platform and
said we're going to cut prescription drug costs in the
US both thirty between thirty and eighty percent, bringing them
into line with other countries using what's called the Most
Favored Nations price and model. I won't bore you with
the details, but it's something that's been used before and

(02:01):
what this has done. Unfortunately, it's seen healthcare stops in
the Asia Pacific markets go down today on worries that
their profits will take a hit if they have to
reduce prices. In the US, in the need locally Efficient
Park with healthy Issue price was down two percent to
thirty five dollars twenty, perhaps impacted by that news.

Speaker 1 (02:19):
Shane's good to talk to you. I really appreciate your
time mate. That Shane, We're talking in next week, Shane Solly,
Harbor Asset Management.

Speaker 3 (02:25):
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