Dawn chorus: China warns NZ

Beijing says Five Eyes members will 'have their eyes poked out' for criticising China's moves in Hong Kong; Little accelerates Dunedin hospital project using Covid-19 fast-track through RMA

TLDR: Morena. Wellington’s Regional Council wants more Government funding help if it goes ahead with a Green plan for half price bus tickets. This reinforces that any serious climate change investment will require someone to fix the current local government-central government financing standoff mess. It’s the same for housing.

Meanwhile, in one of the first signs the Labour-only cabinet is pushing ahead a bit faster, Andrew Little has accelerated the big Dunedin Hospital project using Covid-19 legislation to fast-track it over the top of the RMA.

Overseas, China rattling its sabres overnight over the criticism by Five Eyes members, including us, of its moves in Hong Kong, saying we risk ‘having our eyes poked out.’

Also, America’s economy is faltering under the weight of its latest Covid-19 surge and the failure of Congress to deliver a second stimulus package. Job loss figures overnight were worse than expected and retail sales figures show consumer spending is stalling.

This morning in our political economy

Bernard Hickey @bernardchickey

It's dawning on Govts that serious action on climate change by using buses and trains more will require major investment, which their post-1989 DNAs does not get. For too long, local & central govt believed today's ratepayers/taxpayers just shouldn't pay

stuff.co.nzCheaper bus fares would have overwhelmed Wellington bus network - regional councilThe regional council was worried that a proposal to slash fares would see Wellington’s at-capacity bus system overwhelmed.

Bernard Hickey @bernardchickey

@AndrewLittleMP getting stuck in to Health. He's using the Covid-19 RMA fast-track to accelerate the Dunedin hospital & take the project off the DHB. Little: "It quickly became apparent that we needed to get some momentum going at the decision-making end."

odt.co.nzGovt plans to speed buildThe new Dunedin Hospital project went into overdrive yesterday with the release of new design pictures and the announcement of an overhaul of its...

Bernard Hickey @bernardchickey

Beijing has just warned Five Eyes members, including us, that they risk "having their eyes poked out" because of their joint criticism of China's actions in Hong Kong. Worth knowing China really hampering Aussie imports now. scmp.com/news/hong-kong… via @SCMPNews

scmp.comBeijing issues ‘eye poke’ warning to US and allies over Hong Kong meddlingChina has delivered a stinging rebuke to the United States and its allies over their condemnation of a Beijing ruling that led to the immediate ousting of Hong Kong opposition lawmakers, warning they risked “having their eyes poked out”.

Quote of the day

“Whether they have five or 10 eyes, they should be careful about having their eyes poked out.” Zhao Lijian - China’s foreign ministry spokesman

In the global political economy overnight

Real Time Economics @WSJecon

Retail sales rose 0.3% in October, a modest increase in the run-up to the presidential election and amid rising coronavirus cases

on.wsj.comU.S. Retail Sales Climbed at a Slower Pace in OctoberConsumers increased their purchases modestly in early weeks of the holiday season

Real Time Economics @WSJecon

Jobless claims rose to 742,000 last week, the first increase since early October, as a surge in virus cases keeps a check on the U.S. economic recovery

on.wsj.comU.S. Unemployment Claims Rise Amid Coronavirus SurgeInitial claims for unemployment benefits increased to 742,000 last week as pandemic weighs on labor market

Bernard Hickey @bernardchickey

FYI for those watching (or depending on) Australia's pension system becoming even more enormous. Seems next year's contribution rate hike from 9.5% to 12% will be delayed. It's a big reason why Australia invests much more in capital/R&D bloombergquint.com/onweb/australi… via @BloombergQuint

bloombergquint.comAustralians May Have to Wait Longer For Pensions Payment RiseAustralians May Have to Wait Longer For Pensions Payment Rise

Chart of the night

Bernard Hickey @bernardchickey

This JPMorgan chart tells the story of the scale of fiscal stimulus funded by money printing, and how it compares with previous crises. Inside a piece talking about the risk of a US governance meltdown due to Trump refusing to go... privatebank.jpmorgan.com/content/dam/jp…

Sign ‘o the times news

Bernard Hickey @bernardchickey

The whole freedom camper drama is just another outcrop of our massive national housing failure. Instead of saying: 'Build it and they will come', we said: 'Just come. We haven't built it. It'll work itself out' It hasn't.

stuff.co.nzCall for national register of self-contained campervansA database of all self-contained campervans would ease policing of freedom camping.

Bernard Hickey @bernardchickey

These supply and logistics problems are global. Maybe they'll be the thing that 'solves' the low inflation problem that has forced US$27t (100% of US GDP) of money printing and bond buying since 2007. Hopefully.

stuff.co.nzFlorists feel pressure as flower shortage pushes up pricesWholesale flower prices surged post-lockdown as shortages struck the market, but some in the industry say the auction system has created disparities.

Bernard Hickey @bernardchickey

There's fallout down south for @BNZ big branch closure decision much earlier than it originally promised

odt.co.nzAnger after BNZ branches closure announcementBNZ customers have reacted with shock and anger to the imminent closure of six southern branches. Yesterday the Australian-owned bank announced it...

Bernard Hickey @bernardchickey

Getting paid to borrow? China sells bonds at negative interest rate for the first time. A sign 'o the times story. scmp.com/business/banki… via @SCMPNews

scmp.comGetting paid to borrow? China sells bonds at negative interest rateChina has sold the nation’s first negative-yielding sovereign bond, the latest to take advantage of the record low cost of money amid the global

Other views worth reading

Bernard Hickey @bernardchickey

Useful Matthew Hooton column on the key role David Parker will play in any reforms. Unlike the PM, he's not so conservative... @nzherald-$$$

nzherald.co.nzMatthew Hooton: David Parker, Minister for Shaking Things Up - NZ HeraldParker has some bits and bobs to take care of over the next three years.

Bernard Hickey @bernardchickey

Great Brian Fallow column in @nzherald-$$$ Worth subscribing for. Stunning use of @GrowingUpinNZ study details and @Stats_NZ living costs indices.

nzherald.co.nzBrian Fallow: Government could help the kids - and hit the landlords - NZ HeraldIt makes no sense that property investors can deduct all their interest costs.

Longer reads for the Weekend

Bernard Hickey @bernardchickey

Excellent @joelwmaxwell preview of next week's report on OT: 'By the end of June last year there were 6429 kids in state care in New Zealand, enough to fill a suburb the size of Lower Hutt’s Petone. Or a town the size of Matamata, or Ōtaki.'

stuff.co.nzOranga Tamariki report looms from children’s commissioner over Māori baby upliftsOPINION: When it comes to horror Māori baby uplift stats, blame the system, blame racism and blame yourself.

Coming up

Today - Tauranga City Council will decide whether to ask for a Crown manager or observer after a damning report this week on its culture.

Sat Nov 21 - National Party AGM due to vote on re-election of President Peter Goodfellow. He has confirmed he will run again.

Mon Nov 23 - Stats NZ releases Retail trade survey for Sept quarter

Weds Nov 25 - 2pm - Reserve Bank to publish six monthly Financial Stability Report (FSR) . Expected to warn of re-imposition of high LVR lending limits from May 1, 2021.

Weds Nov 25 - Opening of Parliament for 53rd term, including swearing in of new MPs

Thurs Nov 26 - Speech from the throne in Parliament outlining Government’s agenda

Dec 1 - Landlords must include a Healthy Homes statement with any renewed tenancy agreement after this date. Landlords have until July 2024 to comply with new rules on heating, insulation and dampness.

Weds Dec 9 - Parliament rises for the year.

Mon Dec 21 - Tesla joins the S&P 500

Ngā Mihi

Bernard

PS: Great thanks to Sean Gillespie on Instagram for this morning’s Kākā

PPS A fun cheesy thing

Rex Chapman🏇🏼 @RexChapman

This is the Twitter content I’m here for...