Dawn chorus: Dow hits 30,000

US stock markets rally to record high on hope for new money printing, Biden transition go-ahead and new vaccines, while Covid-19 fills US hospitals to breaking point

TLDR: All over the world, politicians and investors are grappling with the most bizarre juxtapositions. The Dow rose to a record 30,000 this morning despite reports the latest wave of Covid-19 infections is overwhelming hospitals across the America. Investors are instead focused on the prospects of yet more money printing and stimulus, although the hopes for new vaccines and confirmation of Joe Biden’s transition are helping.

Similar conundrums confront our politicians and investors. The intervention yesterday by Grant Robertson to ask the Reserve Bank to avoid pushing up house prices more is one sign of those bizarre pressures amidst the worst global economic shock in our history. Also, in spite of that shock, there are signs of labour shortages emerging in tourism and hospitality, which some employers want to fill with an RSE scheme for cafe workers. Immigration NZ has actually granted 18,000 work visas since March.

Watch out later today for the Reserve Bank again. It releases its half-yearly Financial Stability Report (FSR) at 2pm today. Adrian Orr will be asked how he can respond to the Government’s pleas. I’ll be there. I welcome your suggestions for questions.

This morning in our political economy

Bernard Hickey @bernardchickey

Immigration NZ has approved more than 18,000 temporary 'skilled' work visas since the lockdown, including for taxi drivers, cleaners and cafe workers

stuff.co.nzFrom real estate agents to pet groomers: These are the jobs that New Zealanders can’t or won’t doDespite a record increase in unemployment, employers can’t find New Zealanders to perform everyday jobs.

Bernard Hickey @bernardchickey

My reading of this is just imagine how much investment will flood in once the borders are open...it would be nice to see it build a few houses somehow.

stuff.co.nzMammoth $2.3b of investment held up at border by Covid-19 visa rulesForeigners keen to invest in New Zealand are unable to get visas because of restrictions, a situation National says is holding back “tens of thousands” of jobs.

Overnight in the global political economy

Reuters UK @ReutersUK

Dow hits 30,000 on vaccine progress, Biden transition reut.rs/2UU8E6d

Reuters UK @ReutersUK

‘We’re drowning’: COVID cases flood hospitals in America’s heartland reut.rs/362lRQF

Bernard Hickey @bernardchickey

Hey...doesn't this sound a lot like the TPP?...Someone should suggest it to @realDonaldTrump...just don't remind him he pulled out of it in 2017...

Real Time Economics @WSJecon

Trump administration officials say they are pushing to create an informal alliance of Western nations to jointly retaliate when China uses its trading power to coerce countries https://t.co/v9fAuoRr77

World News Tonight @ABCWorldNews

VACCINE TO FLY: Qantas is the first airline to require COVID-19 vaccinations for international travelers once they become widely available, with the company’s CEO calling it a "necessity” and describing it as a “vaccination passport.” @DavidMuir reports. abcn.ws/2XvP3JQ

World News Tonight @ABCWorldNews

General Services Administration Administrator Emily Murphy gave President-elect Joe Biden's team approval to begin the formal transition process Monday night, 16 days after he clinched the presidency.

abcn.wsJoe Biden’s presidential transition allowed to proceed after 16-day standoffBiden is moving forward with transition plans and naming allies to key posts.

Bloomberg Economics @economics

U.S. home prices surged the most on the record in the third quarter

trib.alBloomberg - Are you a robot?

Signs o’ the times news

Dave Goosselink @davedunedin

😮🥲 Horticulture sector told by the Government.. no foreign workers 'this side of Christmas', despite severe labour shortage. newshub.co.nz/home/rural/202…

newshub.co.nzHorticulture sector told no foreign workers ‘this side of Christmas’ as labour shortage concerns mountIndustry-wide there is a shortfall of around 10,000 workers.

Golriz Ghahraman @golrizghahraman

Housing is a human right. Which is why we need our Government to tackle this crisis with courage - taxing capital and wealth cannot be off the table while our people struggle

newshub.co.nzGreen Party disappointed by Government’s housing measures, sick of ‘tired excuses’Grant Robertson revealed on Tuesday he had written to the Reserve Bank Governor for help.

Bernard Hickey @bernardchickey

Absolutely positively a complete mess

stuff.co.nzWCC set to meet for first time since Foster’s Shelly Bay protest visitWellington City councillors will gather on Wednesday against the backdrop of rising tensions over Mayor Andy Foster’s appearance at a Shelly Bay protest.

Bloomberg New Economy Forum @neweconforum

Global airline lobby IATA is joining a push to introduce so-called Covid travel passports as vaccines for the disease near approval

trib.alBloomberg - Are you a robot?

Notable views

Bernard Hickey @bernardchickey

Good column from @coughlthom 'Can it be any surprise that some councils comport themselves like a school PTA when the funding tools the government gives them are the fiscal equivalent of a bake sale?'

stuff.co.nzBail out local councils or face decades of water, housing, infrastructure crisesOPINION: Every local government problem will only get worse if central government doesn’t help out.

Coming up…

Today - 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.

Today - 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

Tues 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.

Ngā mihi

Bernard

PS: Thanks to Liskous on Instagram for today’s pic

PPS Some fun things

Mike Peters @mikebpeters

#Thanksgiving #pardon #turkeypardon #Trump

Lᴏʀᴅ Knows @LordofWentworth