Roosting chorus: Nelson LIM fallout
Homeowners fear insurance cost blowout and capital slump after Nelson puts climate change notes on LIMs of 4,500 homes; Greens want Labour to relook at half-price bus and train tickets; IAG hit hard
TLDR: Good evening. Homeowners in now fear their insurance costs will jump and their house values will fall after the Nelson City Council put sea-level warning notes on the LIMs of 4,500 properties.
The Greens want Labour to have another look at their proposal for bigger subsidies for public transport, now that NZ First is not there to block it, which it did in the first term.
New Zealand’s biggest insurer, IAG (NZI, State, AMI, Lumley), looks to have suffered a big capital hit after losing an Australian court case that may force it to make A$1-2b of payouts on business interruption policies. IAG argued its policies excluded pandemics. An Australian court ruled otherwise. IAG launched a A$500m capital raise from investors this afternoon.








In the global political economy today
America’s Covid-19 death toll hit 250k and Joe Biden warns it is set to hit 400k by January. Bitcoin is at a record high, possibly because China’s regulators have cracked down on bitcoin miners there, which is limiting supply of new bitcoin. Miners often set up mining data centres near coal-fired power stations in China. Global stock prices hit fresh record highs on hopes for more money printing and good vaccine news.



Signs ‘o the times news







Threads worth pulling on





Longer reads or listens worthy of your time




Useful reports
The IIF’s Global Debt Monitor report shows developed markets’ overall debt jumped to 432% of GDP in the third quarter, from a ratio of about 380% at the end of 2019. Emerging market debt-to-GDP hit nearly 250% in the third quarter, with China reaching 335%, and for the year the ratio is expected to reach about 365% of global GDP.
CoreLogic released its inaugural first home buyer report today, showing first homers are buying 25% of properties, which is a record high since it started collecting data in 2005, but…
“Access to KiwiSaver for their deposit (or at least part of it) and a willingness to compromise on the location or type of property (and hence its cost) have been factors behind the strong market share for FHBs lately. In this post-COVID phase, returning kiwis and would-be OE’ers have probably made a contribution to strong FHB demand as well.” Corelogic
Coming up
Tomorrow - 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
PS: Thanks to Marc for today’s Kākā pic.