Dawn chorus: Level change today?

Cabinet to decide today on whether to shift Covid-19 levels after mystery transmission to Auckland CBD resident who went to work in a clothing store while sick; PM's housing frustration grows

TLDR: Morena. Cabinet will meet later today to decide on whether to shift up Covid-19 levels after an Aucklander living in an apartment next to a MIQ hotel tested positive and then went to work in a clothing store on High St with symptoms. She had tried to call in sick and anger is growing at why the shop owner made her work.

The PM spoke about the housing boom and is increasingly frustrated and seemingly powerless. Having ruled out a capital gains tax or a massive new flood of Government-funded housing supply, she instead pointed to the influx of returning Kiwis buying houses and suggested new subsidies for first home buyers, which would simply pump up prices further.

Hamstrung by her own ‘never in my political lifetime’ promise on a wealth tax and an independent Reserve Bank unleashing a massive money printing programme to lower interest rates, Jacinda Ardern’s comments are sounding more and more like those of John Key from 2013 to 2016.

Hangwringing weather reporter? He also viewed the housing market a lot like the weather: good for some, bad for others, and ultimately impossible to change. The impression back then was of Key handwringing in public and handclapping the tax-free gains for property-owning voters behind closed voting booth doors.

Breaking in our political economy this morning

RNZ News @rnz_news

Government weighs up Covid-19 alert level change after community case in Auckland

rnz.co.nzGovernment weighs up Covid-19 alert level change after community case in AucklandAucklanders will learn today if the government is to impose any changes to Covid-19 alert levels after a mystery community case was detected in the city centre.

Newshub @NewshubNZ

Aucklanders awake to lockdown deja vu as workers told to stay away from central city

dlvr.itAucklanders awake to lockdown deja vu as workers told to stay away from central cityOfficials say limiting movement in the CBD is “the best precautionary measure” they can take.

RNZ @radionz

The University of Auckland says all exams which are scheduled for Friday will now be held online.

rnz.co.nzUniversity of Auckland moves Friday’s exams onlineThe University of Auckland says all exams which are scheduled for Friday will now be held online.

Newshub @NewshubNZ

Asking symptomatic employee to work 'defies common sense' - Phil Goff

dlvr.itAsking symptomatic employee to work ‘defies common sense’ - Phil GoffThe woman worked at the store on Wednesday before testing positive on Thursday.

Breaking overnight in the global political economy

Where is the inflation? The story of our age is that after US$27 trillion of money printing and bond buying to pump up the global economy since 2009, it just won’t catch fire.

Real Time Economics @WSJecon

The consumer-price index was unchanged in October, following four straight months of gains

on.wsj.comU.S. Consumer Prices Unchanged in OctoberHigher costs for dining out and groceries were offset by drops in apparel, household furnishings and other items

Real Time Economics @WSJecon

U.S. employers have added 12.1 million jobs since April, more than half the 22.2 million lost in the spring. on.wsj.com/35n5TjI

Signs ‘o the times news…

Bernard Hickey @bernardchickey

No mention from PM on big tax advantage for housing or the need for much more supply enabled by public investment in infrastructure. Instead, she's looking at helping first homers with deposits. That will just drive up prices more without a supply boost.

rnz.co.nzPM Jacinda Ardern on house prices: ‘It just cannot keep increasing at the rate that is’Prime Minister Jacinda Ardern says she wants to ensure first home buyers can get into the market after it was revealed this morning that house prices have increased nearly 20 percent.

Iain White @iain_white

@bernardchickey Pumping in more money via first time buyers will probably raise prices. A few years ago, this UK policy tried to do the same thing and the results are out and not good.

ft.comSubscribe to read | Financial TimesNews, analysis and comment from the Financial Times, the worldʼs leading global business publication

Where did all the profits go? Councils have systematically underinvested any surpluses from commercial arms and not reinvested depreciation over the years. Here’s another example. Dunedin Council seems not to have reinvested enough in its lines company, Aurora.

Consistently, we’re discovering now how a generation of ratepayers and taxpayers have underinvested in transport, water, health, education and housing infrastructure over years. It was another form of inter-generational wealth transfer. Low rates today were passed on to future generations as higher rates tomorrow, along with creaky infrastructure needing emergency work. Add this one to Wellington’s water woes.

RNZ @radionz

Otago residents may face a power bill increase of between $240 and $876 a year by 2026 in a draft decision on Aurora Energy's plans to hike prices to fix its failing network.

rnz.co.nzOtago facing Aurora big power bill hikes despite Commission capOtago residents may face a power bill increase of between $240 and $876 a year by 2026 in a draft decision on Aurora Energy’s plans to hike prices to fix its failing network.

Just how hard is it to build 350 new homes in Wellington? This is life in the veto-ocracy where NIMBYs are weaponised by the RMA and growth-averse Councils.

Newshub @NewshubNZ

Shelly Bay development opponents considering occupying land following council vote to sell, lease land

dlvr.itDevelopment opponents considering Ihumātao-style occupation following Wellington council vote to sell, lease land“Councillors, this is your Ihumatao moment.”

Useful reports

Britain’s Office of Tax Simplification just issued a report recommending a beefed up Capital Gains Tax regime there. If only…

A fun thing

BBC News Technology @BBCTech

Alexa to start second-guessing what users want

bbc.inAlexa to start second-guessing what users wantThe voice assistant will answer questions with follow-up questions for the user.

Coming up…

Today at 10 am - Business NZ-BNZ Purchasing Managers Index for October

Today at 10.45 am - Stats NZ to publish rental price indexes for October.

Today at 10.45 am - Stats NZ to publish wellbeing statistics for September quarter.

Sat Nov 21 - National Party AGM due to vote on re-election of President Peter Goodfellow.

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

Ngā Mihi

Bernard

PS: FYI, I’ll be on TV3’s The Nation from 9.30am tomorrow, Covid-19 permitting…