TLDR: House prices fell in the month of December for the first time since the first lockdown in May 2020 and share prices are falling sharply again this morning on fears the world’s biggest central bank could hike interest rates this year must faster than previously thought to squash higher-than-expected inflation.
But is this the moment the multi-decade global asset bubble bursts because of the end of ultra-cheap borrowing? See my view on how to view that question below the paywall fold. It depends on whether Covid has changed the fundamentals of the global logistics systems and labour markets. I think it’s too early to conclude that globally.
Elsewhere in the news here and overseas this morning:
MBIE announced overnight it had indefinitely postponed tomorrow’s release of new MIQ rooms for March and April because omicron cases and the potential for extra local omicron cases had used up spare capacity. There was no immediate indication of when new slots would be available. Essentially, the ‘hermit kingdom’ just pulled up the drawbridge completely in the hope of keeping omicron out for just a little bit longer.
Microsoft announced early this morning its biggest ever takeover and the biggest-ever all-cash takeover in history, bidding US$68.7b for Activision Blizzard, which makes Call of Duty, World of Warcraft and Candy Crush (Guardian).
The world’s second-most-valuable oil producer, ExxonMobil, joined Shell and BP in pledging last night to cut its global net carbon emissions to zero by 2050 (Reuters).
I’ll be watching today for anything more on how closed the border will remain and for how long, and prepping for the Labour caucus’ annual ‘offsite’ retreat in New Plymouth tomorrow. I welcome feedback and suggestions for questions below from paid subscribers. I’m going to New Plymouth for it.
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