Links 14 December 2018

Global Macro / Markets / Investing:






  1. Sydney house price downturn could dampen Auckland prices | Jenny Ruth of BusinessDesk| Scoop News

    … concluding …

    … One reason for that difference is that Australia has been building at the rate of about nine houses per 1,000 people while New Zealand has been building only seven.

    “The impulse responses from regional models suggest that increasing dwelling construction tends to dampen house price inflation, although its impact differs by region,” Smith said.

    “Increases in dwelling construction tend to feed through more quickly to Wellington house prices than they do for Auckland. The peak impact of higher Auckland residential construction on dwelling prices is about three years, as opposed to about two years for New Zealand and about six months for Wellington,” he said.

    “Melbourne house prices look to be particularly responsive to additional dwelling supply. Surprisingly, there is no clear relationship for Sydney house prices.”

  2. If anyone was in any doubt China does not behave the way a leading world power would be expected to, the arrest of a second bargaining chip should put that to rest. They want to be recognised as a global power & leader of free trade but that seems at odds with this sort of behavior. They complained about how Meng was held and yet not even the Canadian embassy has been able to get access or details.

    • The Chinese are hurting themselves by doing this and reminding everyone about the true nature of the CCP and Huawei’s relationship with the CCP. Another nail in the coffin of the China Fantasy.