A chorus: Racing to the bottom

West Coast & Gisborne shine in REINZ's landlord league table for capital gain & yield; France stops British trucks at Dover; Global markets shudder on virulent new strain; US finally agrees stimulus

ICYMI: Morena. To emphasise the all-encompassing dominance of rental property investing and the hunt for yield, REINZ highlighted the stellar performances of West Coast and Gisborne in its latest Capital Gains and rental yield report.

Overnight overseas, British stocks and the pound fell sharply after France blocked the arrival of thousands of trucks at Dover for at least 48 hours to stop the spread of a virulent new strain of Covid-19. About 20% of Britain’s food and medical supplies arrive via truck through the Channel Tunnel and via ferries from France. (BBC)

The US Congress finally agreed a US$900b stimulus plan overnight. It includes US$166b in direct cash payments of up to US$600 per adult and child, for individuals making up to US$75,000 a year, and $1,200 for couples making up to $150,000 a year. (Reuters)

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In our political economy

Bernard Hickey @bernardchickey

Bindi Norwell in REINZ's Q3 report for landlords: “Many investors want to purchase properties in their home town to make it easier to manage and undertake maintenance, for example, but sometimes the best returns can be found a little further afield.” blog.reinz.co.nz/reports-1/capi…

Bernard Hickey @bernardchickey

Here’s why housing supply is stalled until Govt changes financial incentives for councils. ‘Auckland Council has said it will oppose the developers’ plans unless they can reach an agreement by next year to fund a $1b shortfall needed for infrastructure.’

stuff.co.nzResidents say they’re in the dark over $1.35 billion Mill Road highway projectA group of residents in Drury, south Auckland, say they are frustrated at the lack of feedback they’ve received about the Mill Rd project.

In the global political economy

Jeff Stein @JStein_WaPo

NEWS: White House HAS secured tax break for corporate meal expenses -- aka the "three martini" deduction -- in draft of emergency economic relief package, per officials Dems agreed to it in exchange for larger earned income, child tax credits, aide says

washingtonpost.comWhite House secures ‘three martini lunch’ tax deduction in draft of coronavirus relief packagePresident Trump has long seized on the tax deduction as a way to revive the restaurant industry, although it has been panned by economists in both parties

Signs o’ the times news

Bernard Hickey @bernardchickey

@efesocollins: "There are many people in the Manukau Ward that have just given up. I'm really disappointed with what the government's done. It threw money at a banking system that isn't working, and that's not going to keep house prices down."

rnz.co.nzResidents express hopelessness as houses in poverty-hit Ōtara sell for $1mMillion-dollar houses are now being sold in one of Auckland’s lowest-income suburbs and a local politician says government failure is allowing the market to drive further inequality and hopelessness.

Bernard Hickey @bernardchickey

'The GCSB received 7526 intelligence reports about terrorism and violent fanaticism in a three-month period in late 2018-19. But not a single one was about right-wing extremism.'

rnz.co.nzSpy partners’ focus dictated lack of Far Right intelligence, GCSB boss saysInternational priorities dictated a gaping hole in the collection of far-right intelligence reports, according to the lead communications spy agency.

Bernard Hickey @bernardchickey

Some good news. Now how about some of the others. Fulton Hogan?

rnz.co.nzThe Warehouse Group to repay $68m wage subsidyThe group came under fire from unions, commentators and politicians - including the Prime Minister - for taking the money before laying off staff then reporting a $44.5m profit.

Longer reads worth your time

Bernard Hickey @bernardchickey

Quite a contrast between the current Opposition leader and former Opposition leader David Shearer, who is now the head of @unmissmedia in this great interview on @nzherald-$$$ with Elizabeth Easter

nzherald.co.nzDavid Shearer: My story, as told to Elisabeth Easther - NZ HeraldDavid Shearer talks to Elisabeth Easther about growing up, politics and his work.

Gady Epstein @gadyepstein

China's Secret War for U.S. Data Blew American Spies' Cover — some incredible details in this ⁦@zachsdorfman⁩ piece. One (non-OPM hack) point jumps out: China learning that CIA was paying the promotion fees of its CCP recruits

foreignpolicy.comChina Used Stolen Data to Expose CIA Operatives in Africa and EuropeThe discovery of U.S. spy networks in China fueled a decadelong global war over data between Beijing and Washington.

Some useful reports

Bernard Hickey @bernardchickey

Very useful suggestions and analysis here from @sharon_zollner on the housing unaffordability crisis

Sharon Zollner @sharon_zollner

Housing unaffordability is an enormous problem in New Zealand. It requires big, bold, urgent policy action. Engineering an orderly response that leads to better outcomes is absolutely possible. See our latest @ANZ_NZ Property Focus https://t.co/yu2Lb5ZvCT https://t.co/NhrcwKln81

Notable alternative views

Bernard Hickey @bernardchickey

@PouTepou writes some things in his @nzherald-$$$ column today that no political journalist or active politician would say in public, which makes it interesting.

nzherald.co.nzShane Te Pou: Why what Judith Collins said to me matters - NZ HeraldOPINION: National’s leader is temperamentally ill-suited to the job she seeks.

Ngā mihi

Bernard

PS: Many thanks to Glenn Jones via Instagram for today’s pic.

PPS: Some fun things

Bernard Hickey @bernardchickey

So proud to see this year-end photo essay on @NewsroomNZ from the wonderful @LynnGrieveson, who is also now a contributor to @GettyImages

newsroom.co.nzVoting and the virus: 2020 in picturesNewsroom’s photographer Lynn Grieveson recorded a year dominated by the global pandemic that overshadowed and influenced everything

Bernard Hickey @bernardchickey

This is beginning to look like the map in the opening credits of Dad’s Army. https://t.co/ZWCBo9RbHf

BNO Newsroom @BNODesk

MAP: Large parts of Europe banning air travel from the UK due to coronavirus mutation https://t.co/Sm0MzO3K9w

🥝 𝔅𝔩𝔞𝔠𝔨𝔰𝔱𝔬𝔫𝔢 🥝 @SirWB

@bernardchickey Who do you think you are kidding Mr Hitler...

youtu.beDad’s Army - Opening TitlesThe full colour opening titles and theme tune for David Croft and Jimmy Perry’s hit sitcom Dad’s Army.There are three versions of these titles and you can fi...

Anna Fifield @annafifield

New Zealand craft beer maker @Garage_Project has produced a new hazy IPA to end the year: F🔥ck You 2020, complete with removable sticker to the same effect instagram.com/tv/CIzkwm3BS36…