Roosting chorus: NZ backs Australia vs China

NZ protests to China directly over false image of Australian soldier being reused by Beijing official; Parker suggests trust rate may have to rise if wealthy open trusts to avoid new 39c rate

TLDR: Hard on the heels of China thumping Australia’s wine industry with big new tariffs, New Zealand has joined with its Trans-Tasman neighbour to protest against China’s latest ‘wolf warrior’ incident aimed at humiliating Australia.

PM Scott Morrison was outraged yesterday when a Chinese official retweeted a photo-shopped image of an Australian soldier committing a war crime. PM Jacinda Ardern said this morning New Zealand had registered its concern over the use of the image directly with Chinese authorities.

"It was an unfactual post and, of course, that would concern us. So, that is something that we have raised directly in the manner that New Zealand does when we have such concerns,” Ardern said.

Elsewhere, David Parker suggested the Government could hike the trust tax rate of 33c to match the new 39c top income tax rate as a last resort if there is another rush to divert income into trusts, as there was from 1999 to 2008.

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In our political economy today

Bernard Hickey @bernardchickey

Will Labour hike the trust rate too? @DavidParkerMP says the new 39c tax rate for income >$180,000 could trigger a rush of income into trusts at their 33c rate, as was seen from 1999-08. He suggests the final resort of hiking the trust rate if that happens

thekaka.substack.comWill Labour hike the trust rate too?Parker says the new 39c tax rate for income over $180,000 may create incentives to shift income into trusts at 33c rate, as seen from 1999-08. He eyes final resort of hiking trust rate if that happens

Newshub Politics @NewshubPolitics

'Not factually correct': NZ raises concern directly with China over fake Australian soldier image

dlvr.itNew Zealand raises concern directly with China over fake Australian soldier imageThe image has Scott Morrison smouldering.

RNZ - Nine To Noon @ninetonoon

Will reforming the Resource Management Act fix a runaway housing market and our infrastructure woes? @Infra_NZ wants a government-led growth plan with a nationwide-focus

rnz.co.nzShould the government dictate how we grow?<p>One of the key factors blamed for the runaway housing market is a shortage of supply, which is in turn, blamed, largely on red tape and outdated planning laws.</p>

In the global political economy today

Bernard Hickey @bernardchickey

So fund managers sold their government bonds to central banks for freshly printed cash, and so they then bought Bitcoin... https://t.co/483Vl5uJXJ

Reuters Business @ReutersBiz

Bitcoin soared to a record high, boosted by increased demand from both institutional and retail investors. Read more https://t.co/WkRzHgILCK https://t.co/Scs0Fdwp8U

CNN Business @CNNBusiness

The Dow logged its best month since January 1987, gaining nearly 12% in November, even though the market finished in the red on Monday. The Dow closed 0.9%, or 272 points, lower, while the S&P 500 slipped 0.5% and the Nasdaq shed 0.1%.

cnn.itTrump said the stock market would crash if Biden won. The Dow just had its best month since 1987.The dow hit a new all-time high on Tuesday, finally topping the 30,000 mark. NYSE floor trader Peter Tuchman weighs in on the milestone.

Sign ‘o the times news

Bernard Hickey @bernardchickey

'One kaumātua in his 60s with a chronic health condition lives in a house north of Kāeo with no power, no shower or toilet & no running water.'

nzherald.co.nzOur Hidden Homeless: Northland’s elderly living in Third World conditions - NZ HeraldKaumātua and kuia are living in tents and shacks in the Far North. What are the solutions?

RNZ News @rnz_news

Reefton residents face long drive to do their banking

rnz.co.nzReefton residents face long drive to do their bankingReefton residents are horrified at the prospect of losing the only bank in town.

Bernard Hickey @bernardchickey

Portacabins. That's where we're at now.

nzherald.co.nzOur Hidden Homeless: Eric Monk finally has a place to call home - NZ HeraldNorthlander Eric Monk has a place to call home after decades of living a transient life.

Bernard Hickey @bernardchickey

My first thought on this was: will Councils remove actual rapid transit routes to avoid having to comply with densification requirements and keep their NIMBY voters happy?

stuff.co.nzCouncil staff debate whether Wellington’s 20kmh Cable Car qualifies as rapid transitSenior city council staff spent hours debating whether Wellington’s Cable Car qualified as rapid transit. They came to a seemingly obvious conclusion.

Sam Sachdeva @SamSachdevaNZ

Global Times homepage atm really going all in on the Australia spat; as an aside, the splash story about cold chain storage might send a shiver up the spine of Kiwi exporters if there's going to be some sort of massive crackdown

Quote of the day

"I have no tolerance for questions being asked when we don't know the answer in the first place." Judith Collins on her approach to Question Time, in this Audrey Young piece in the NZ Herald-$$$

Charts of the day

Max Rashbrooke @MaxRashbrooke

Another thing this government is failing to transform is the share of company revenue that goes to staff (as opposed to owners). Was 58% back in the 80s; now around 48% and not rising (consistently). Av. wage $12k lower now than it would be at 58%. Stats via @Andreataxyoga

IMF @IMFNews

Wealthy people are more likely to earn higher returns on investments but not just high-risk ones. Research by IMF staff finds the rich often earn a higher return even on more conservative investments. ow.ly/ndeH50Cypqe #IMFBlog #ChartOfTheWeek

Other notable views

Bernard Hickey @bernardchickey

FYI a reminder from @toddniall on how hard it is for politicians to propose a tax for something that is now 'free'. Politics is like trench warfare these days: the defender of the status quo has the power, especially when the young and poor don't vote

stuff.co.nzWho will champion Auckland’s congestion charge debate?After four years of study, congestion charging in Auckland needs a leader

Bernard Hickey @bernardchickey

Absolutely. Northern Advocate editorial. "If we're to truly call ourselves a first world country, our Government needs to make this issue a priority."

nzherald.co.nzEditorial: Time to do something about our housing deprivation - NZ HeraldWe have a different type of homelessness in Northland.

Dan Price @DanPriceSeattle

I'm no economics professor, but if food banks are rationing food because of record demand while billionaires gained a record $1 trillion in combined wealth, it might be time to reconsider our system.

Threads worth unravelling

Nicola Willis @NicolaWillisMP

1/7 The Government can't tax its way out of New Zealand's housing woes. Instead it should pursue ideas to encourage a surge in new house building. I've outlined five constructive proposals they should seek advice on today:

national.org.nzFive things the Government could do to fix housingWith the 53rd Parliament getting down to business this week, National is urging the Government to implement five solutions to the housing crisis that do not involving hiking tax.

Coming up

Weds - Dec 2 Maiden speeches in Parliament.
4.30pm Angela Roberts (Labour list)
4.45pm Vanushi Walters (Labour, Upper Harbour)
5pm Tangi Utikere (Labour, Palmerston North)
5.15pm Terisa Ngobi (Labour, Otaki)
5.30pm Neru Leavasa (Labour, Takanini)
5.45pm Barbara Edmonds (Labour, Mana)Dec 9 - Parliament rises for 2020

Thurs - Dec 3 Maiden speeches
4pm Simon Court (Act list)
4.15 pm Camilla Belich (Labour list)
4.30pm Rawiri Waititi (Māori Party, Waiariki)
4.45pm Debbie Ngarewa-Packer (Māori Party list)

Tues, Dec 8
4pm Chris Baillie (Act list)
4.15pm Nicole McKee (Act list)
4.30pm Ricardo Menendez-March (Green Party list)
4.45pm Teanau Tuiono (Green Party list)
5pm Tracey McLellan (Labour, Port Hills)
5.15pm Anna Lorck (Labour, Tukituki)
5.30pm Ayesha Verrall (Labour list)

Dec 16 - Treasury releases its Half Yearly Fiscal and Economic Update

Dec 17 - Stats NZ publishes Sept qtr GDP

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.

Ngā Mihi

Bernard

PPS Some fun things

Michael Goodwell @MichaelGoodwell

Who are these people? Wrong answers only.

Level 1: But still use the App! @Anarcho_Suburbo

@bernardchickey