Links 24 January 2020

Global Macro / Markets / Investing:








  1. Hugh PavletichMEMBER

    CHINA …

    Coronavirus outbreak: China places two more cities on lockdown, restricting movement of 20 million people … UK Telegraph

    Chinese authorities have put three cities on lockdown, home to 20 million people, as authorities seek to contain further spread of a deadly new coronavirus that has sickened about 600 and killed at least 17 others.

    A government-imposed outbound travel ban came into effect on Thursday morning in Wuhan, the epicentre of the mystery disease outbreak.

    Domestic and international airlines have cancelled incoming flights to Wuhan, while the city’s public transport shut down and rail tickets could no longer be booked on China’s most popular travel website. … read more via hyperlink above …

    • Hill Billy 55MEMBER

      Its simple, in the last 10 years the Glazer family have ripped 10 billion pounds out of the United coffers, on the other hand, Manchester City’s owners have put in a similar amount. In their last summer, United could have bought Haagaland (sp.?) for 40 Mill pounds, he was offered for 60 Mill in the current window. Dortmund bought him and last weekend he scored a hattrick for them Says it all, really.

  2. The New Zealand housing fiasco …

    Government spends $48 million in 3 months on grants for people in dire need of accommodation, as number of grants issued increases 5-fold in 2 years … Jenee

    Whakatane teacher feeling impact of housing unaffordability ‘threat to middle class’ … Susan Edmunds … Stuff New Zealand

  3. Leith – here are some good links. The NSW Productivity Commission just published responses to its discussion paper. Lots of submissions from random rent seekers included here:

    The submission from UNSW was classic higher education spin. Did you know the benefit cost ratio for the Group of 8 is 5.5:1? For every dollar given to a university there are $5.50 of benefits!! I don’t believe it either. I’d tell Poindexter from UNSW that if that’s true then surely their propellerheads can come up with a value capture mechanism that at least recoups them greater than a buck. Then we can turn off the public funds! LOL

    • Qualitative Easing

      LOL. Excellent find. Even the Dermatologists are getting in on the act with a blatant cash grab, citing expected demand for services. Don’t they realise that skin cancers are a wh!te person’s disease and Scummo is hell bent on wiping out that minority?

  4. New Zealand’s biggest social scandal – Dr Oliver Hartwich, Executive Director, New Zealand Initiative

    The greatest social scandal of our time barely raises eyebrows anymore.

    Every year for the past 16 years, urban consultancy Demographia releases their international ‘Housing Affordability Survey’.

    In New Zealand’s case, it should be called an ‘Un-Affordability Survey’. It documents our ridiculous house price-to-income ratio.

    Each of New Zealand’s eight surveyed local areas is now classified as ‘severely unaffordable’. This means median households need more than five times their annual income to buy a median house.

    Consider this: At a ratio of 9.3, Tauranga is now the fifth most expensive of 305 analysed global housing markets. Even San Francisco (8.3), London (8.2) and Singapore (4.6) are more affordable.

    Given these figures, a public outcry would be appropriate. However, there was little media coverage for the Demographia report. And what there was sounded like a well-rehearsed routine.

    Yet there is nothing in our housing affordability data we should ever get used to. They are and remain outrageous.

    In a country that barely uses 1 percent of its land for development, house prices should never be as high as ours. As recently as the early 1990s, New Zealand price-to-income ratio was below 3.0 – a level Demographia rates as ‘affordable’.

    What has happened since is a political scandal, an economic disaster and a social tragedy. The loss of affordability has driven two generations of Kiwis deep into debt. It is the main driver behind poverty, inequality and deprivation. It has locked young people out of the housing market. It has exposed our economy to the volatility of the property sector.

    The Initiative’s research has revealed the factors responsible for this disaster. They include our restrictive land-use planning regime, lack of alternative infrastructure finance and insufficient fiscal incentives for councils.

    Other researchers and organisations have come to similar findings. After decades of research, there are no doubts as to the roots of our housing crisis.

    The housing market spun out of control under both National- and Labour-led Governments. Neither party could honestly blame the other without getting into pots and kettles territory.

    Because they are jointly responsible for the current mess, it is time for joint, bipartisan action to fix it.

    The Government and the Opposition worked together on the Zero Carbon Bill last year. What is stopping them from finding consensus on the biggest domestic policy challenge of our time: restoring housing affordability?

    It should not take another dozen Demographia reports until we get real political action on housing.

    Ipsos NZ Issues Monitor November 2019