Dawn chorus: A container convoy

Trucks with 1,200 containers unloaded in Whangarei are headed for Auckland; A shed in Martinborough with $170k RV sells for $600k; Pfizer vaccine warning for allergy sufferers; Fast test kit near

TLDR: Morena. Logistics problems are plaguing supply lines to shops and factories in the lead up to Christmas. One ship stuck in the queue just off Auckland has diverted to Whangarei and unloaded its 1,200 containers there. Trucks will clog that highway north in the coming days shifting containers back and forth.

Meanwhile, the ‘K’ shaped recovery from Covid-19 (great for the rich and awful for the poor) powers on both globally and here. New Zealand businesses sent $14b worth of freshly printed cash in the lockdown have increased their bank deposits $16b since February.

At the same time, the Government continues to say it can’t afford to increase benefits in line with recommendations of its own welfare advisory group and has not announced any new actions to alleviate either demand or supply in the housing market. However, the PM has pledged not to allow house prices to fall and a shed in Martinborough with an RV of $170,000 just sold for $600,000.

Overseas overnight, Boris Johnson is having a last-ditch dinner meeting with the EU’s President to try to secure a Brexit deal, Pfizer warned those with allergies not to take its Covid-19 vaccine, a new very-fast test kit is close to launch and China is blocking Australian honey and lamb imports.

Meanwhile, US stocks hit fresh record highs despite signs of slowing jobs growth there as its winter lockdowns hit hard. There is hope for a stimulus and fresh money printing. For example, Portugal’s bond yields went negative overnight as fund managers prepare for the European Central Bank to announce another €500b of money printing and bond buying later tonight.

Alternative realities abound in this K shaped world.

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In our political economy

Bernard Hickey @bernardchickey

Talk in Christchurch of a rates penalty for leaving land undeveloped in the CBD. Just imagine if that could be done for landbankers all around the country..

The Press Newsroom @PressNewsroom

Call for action as 20pc of central Christchurch sites remain undeveloped https://t.co/fi7Npgvce8 https://t.co/nxYATcfhzD

Bernard Hickey @bernardchickey

Another part of the 'K' shaped recovery where those with assets were given cash and lower interest rates by the Government, while it said it couldn't afford to increase benefits as recommended by its own advisory group and forced the homeless to pay for their motels.

Stuff.co.nz Business @NZStuffBusiness

Businesses stockpiling deposits including wage subsidies while making strong profits https://t.co/mxxujxLmhl

Bernard Hickey @bernardchickey

Nuff said: 'It is 30 square metres, does not have a proper kitchen and its rateable value is $170,000, but a converted garage in a Wairarapa town has sold for just under $600,000.'

stuff.co.nzA 30sqm home in the Wairarapa has sold for almost $600,000The converted garage does not have a kitchen but that did not stop a bidding war pushing up the price.

Morning Report @NZMorningReport

"If you're lucky enough to get in before an open home, it's sold before the first open home." #LISTEN First time buyer Stephanie has missed out on about 30 houses around Auckland and north and says she's stopped counting the offers she's made on homes.

rnz.co.nzFirst home buyer says she missed out around 30 houses<p>Home ownership rates are the lowest they’ve been in 70 years, and dropping.</p> <p>First home buyers trying to crack the market are fighting against investors, cash offers and soaring house prices.</p> <p>First time buyer Stephanie has missed out on about 30 houses around Auckland and north.</p…

nzherald @nzherald

Trucks to clog SH1: Nearly 1200 containers headed for Auckland, motorists urged to take care  nzherald.co.nz/nz/trucks-to-c…

In the global political economy

The Sydney Morning Herald @smh

Australian honey, fruit and pharmaceuticals are at risk of being struck off China's shopping list as Chinese customs restricts lamb importers | @ErykBagshaw @swrighteconomy

smh.com.auChina freezes out Australian lamb, hits timber with new bansMelbourne lamb exporters are blocked from returning to Chinese menus long after their COVID outbreaks were contained, while honey, fruit could be next.

Bernard Hickey @bernardchickey

This could make a big difference for travel and workplaces, if it happens, and depending on how quickly it's rolled.

Financial Times @FinancialTimes

Exclusive: A rapid Covid-19 test developed in the UK is close to gaining approval for use by health authorities in England. Unlike conventional PCR tests, these tests don't need to be analysed in a laboratory and can deliver a result in up to half an hour https://t.co/DckvLJpPd7

Bernard Hickey @bernardchickey

But on the other hand, this is not great news.

edition.cnn.comAllergy warning for Pfizer/BioNTech vaccine after UK health workers with allergy history suffer reactionA phial of the Pfizer/BioNTech Covid-19 vaccine concentrate ready for administration at the start of the UK’s mass vaccination program on December 8.

WSJ Markets @WSJmarkets

New job openings figures are the latest signs that the economic recovery under way since spring is cooling

on.wsj.comU.S. Job Openings Slipped in Early DecemberNumber of available jobs in the U.S. fell, the latest sign of economic pullback

Bernard Hickey @bernardchickey

Remember the Portugal debt crisis? Portugal still has a BBB sovereign credit rating. (NZ's is AA+) On the verge of the @ecb announcing another ¢500b in money printing and bond buying to ¢2t later tonight NZ time, Portugal's main govt bond traded with a negative yield overnight

WSJ Markets @WSJmarkets

Portugal’s benchmark bond traded with a negative yield, signaling investors’ increasingly relaxed attitudes toward a country that was once among the worst-hit by the European debt crisis https://t.co/0qY1bsXWzV

The Sydney Morning Herald @smh

Why the world may follow our lead on Google and Facebook

smh.com.auWhy the world may follow our lead on Google and FacebookLaws introduced in Australia on Wednesday will be fundamental to the health of our media - and our democracy.

Useful longer reads and scoops

The Press Newsroom @PressNewsroom

Firearms, body armour and the dark web: How a terrorist stayed hidden online dlvr.it/RnG5yC

Reuters @Reuters

Special Report-How oil majors shift billions in profits to island tax havens reut.rs/2JPTXyT

Coming up

Tonight - 1.45 am NZT (Friday) the European Central Bank is expected to increase quantitative easing programme (money printing and bond buying) by €500b to €2t

Dec 16 - Treasury releases its Half Yearly Fiscal and Economic Update (a full week to recover)

Dec 17 - Stats NZ publishes Sept qtr GDP. It could rebound 12%.

Dec 22 - Final cabinet meeting of 2020

Feb 1 - The Climate Change Commission will release its first draft of the national carbon budget under the Zero Carbon Act

Feb - Financial Action Task Force’s mutual evaluation report of New Zealand is expected in February.

Ngā Mihi

Bernard

PS Thanks for NZwithUS on Instagram for today’s pic.

PPS Some fun things

Anna Bracewell-Worrall @Anna_bw

Michael Baker “finally a use for the flag referendum”

Jeroen Bartelse @JeroenBartelse

Drones towing people on wakeboards, skis - what's next? dronedj.com/2020/12/02/dro… via @DroneDJ #weekendvibes #drone #uav @SpirosMargaris @jblefevre60 @Nicochan33 @alvinfoo @FrRonconi @ShiCooks @mvollmer1 @PawlowskiMario @enricomolinari @DrJDrooghaag @RLDI_Lamy