Germany to double net borrowing for 2021 to fight pandemic impact
Germany plans to almost double the borrowing it had planned for next year to finance emergency aid for businesses during the second wave of the COVID-19 pandemic, Finance Minister Olaf Scholz said on Friday. The parliamentary budget committee agreed to a debt figure of almost 180 billion euros ($215 billion) - the second largest amount of net new borrowing in the history of post-war Germany.
“Our goal is to overcome this pandemic and grow out of it with full strength next year,” Scholz said during a virtual news conference, adding that the stimulus package for this year and next would result in new debt of more than 300 billion euros.
“We know that these are exceptional budgets in 2020 and 2021,” said Scholz. He added that the budget provided for financial support to be extended until June 2021. The new debt approved for 2020 will “by far” not be exhausted, said Scholz, and much will be postponed until next year.
Germany will extend and tighten a partial coronavirus lockdown and keep bars, restaurants and entertainment venues shut until at least Dec. 20. Chancellor Angela Merkel has suggested that the restrictions may well extend into early next year if infection numbers don’t fall significantly.
“The high debt is necessary to bring our country safely through the pandemic,” said Eckhardt Rehberg, a lawmaker of Merkel’s Christian Democrats (CDU). “We must once again make use of the exemption rule from the debt brake.”
Enshrined in the constitution, the brake restricts the issuance of new debt by limiting the federal budget deficit to 0.35% of economic output. Parliament suspended it this year in light of the pandemic.
Merkel’s government has already taken unprecedented steps to help companies and small businesses get through the crisis, freeing up billions of euros to soften the pandemic’s impact on the economy. The planned new debt of 179.82 billion euros for 2021 compares to 96 billion euros initially envisaged by Scholz in September.
Economy Minister Peter Altmaier, speaking during the same news conference as Scholz, said he did not expect lockdown measures to produce a “major wave” of insolvencies in the last two months of the year given businesses can draw on financial lifelines. “I believe that for the sectors primarily concerned (…) we have - through the November and December aid - created a possibility for the economic consequences to remain within manageable limits,” he said.
The government expects the economy to shrink by a calendar-adjusted 5.9% in 2020 and rebound by 4.4% in 2021.
https://www.reuters.com/article/germany-budget-debt/update-3-germany-to-double-net-borrowing-for-2021-to-fight-pandemic-impact-idUSL8N2IC51N
nahhh..dey wouldn't do dat! /s
Dollar falls to lowest level in almost 3 months
The dollar index fell on Friday, hitting its lowest level in almost three months, after strong economic data from China favored commodity currencies over safe havens and equity markets continued their rally.
The dollar has fallen more than 2.2% so far this month as global market sentiment has surged following Joe Biden's election victory and positive COVID-19 vaccine progress,which reduced demand for the safe-haven currency. The Australian dollar hit its highest level since September after news that China's industrial firms grew in October for a sixth consecutive month and at their quickest pace since early 2017, pointing to a steady recovery in the manufacturing sector after it was hard hit by the COVID-19 pandemic.
The British pound declined against the euro as the European Union and Britain said there were still substantial differences over a Brexit trade deal as the EU chief negotiator prepared to travel to London in a last-ditch attempt to avoid a tumultuous finale to the five-year Brexit crisis.
https://www.nasdaq.com/articles/forex-dollar-falls-to-lowest-level-in-almost-3-months-2020-11-27
https://www.marketwatch.com/investing/index/dxy
Mnuchin asks Republican senators to trust in future Treasury, Fed actions
U.S. Treasury Secretary Steven Mnuchin wrote in a letter to Senate Banking Committee Republicans on Friday that he hopes they will continue to show trust in the Treasury and Federal Reserve to manage coronavirus relief programs.
Mnuchin came under fire from President-elect Joe Biden’s transition team and Democrats in Congress over his decision to allow some Federal Reserve coronavirus lending programs to expire.
His action limits the ability of Mnuchin’s expected successor, Janet Yellen, to backstop credit markets for mid-size businesses, municipal bond issuers and other borrowers should financial conditions worsen, but frees up some $455 billion in borrowed cash for Congress to re-appropriate for other uses.
left unsaid here is that it also limits future actions by Munchkins or any other Treasury Sec that he may be replaced by in POTUS' administration-dick move
While Democratic Senator Ron Wyden on Tuesday called the move “economic sabotage” that would tie Biden’s hands, some Republican senators had applauded the move, including Senate Banking Committee Chairman Mike Crapo, who said markets had stabilized, credit was flowing freely and the money could provide targeted relief for hard-hit sectors or reduce debt.
“As a result of Congress’s swift legislative action and Treasury’s and the Federal Reserve’s work to implement these programs, we have been successful in restoring confidence in financial conditions,” Mnuchin said in the letter to Banking Committee Republicans.
“It is my hope that, because of our responsible use of these authorities in a manner consistent with Congressional intent, Congress will show similar trust in Treasury and Federal Reserve leadership in the future.” A Treasury spokesperson said that the agency’s career transition team began meeting with Biden’s Treasury Agency Review Team following Monday’s decision by the General Services Administration to start the formal transition process.
The two teams would “share information and facilitate an effective transition,” the spokesperson said.
https://www.reuters.com/article/usa-fed-mnuchin/mnuchin-asks-republican-senators-to-trust-in-future-treasury-fed-actions-idUSL1N2ID14C
disagree..he is an actor and nothing moar.
look into his past with IndyMac Bank and the gift(s) he and One West were handed when Schumer caused the bank run on it.
FRB had never sucked up a bank like that and it was run on the 'spin' cycle and the "good" parts were spit out into One West bank-which he benefited from GREATLY
99-6143 USAFSOC C-32B departed Bragg west after a ground stop-inbound from Eglin AFB
Pretty quiet overall WW
KANGZ!!!
Gold prices fall on Black Friday, log steepest weekly fall in 2 months
Gold futures on Friday settled sharply lower, registering the biggest weekly slide since late September, as the metals prices have been buffeted by upbeat news on coronavirus vaccines that have driven investors to equities and away from the perceived haven of bullion. February gold GCG21, -1.21%, the new most-active contract, lost $23.10, or 1.27%,Friday to settle at $1,788.10 an oz. Gold shed 4.5% on the week, based on the most-active contract. The weekly slide marks the sharpest for gold futures since the week ended Sept. 25, FactSet data show.
https://www.marketwatch.com/story/gold-prices-fall-on-black-friday-log-steepest-weekly-fall-in-2020-11-27
https://www.marketwatch.com/investing/future/GCG21
https://www.kitco.com/charts/livegold.html
https://www.kitco.com/charts/livesilver.html
https://www.marketwatch.com/investing/index/dxy
Catalent Pharma Inc. sold by Leonard Green & Partners: $535.23-Nov 23
Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products. Its segments include Softgel Technologies, Drug Delivery Solutions and Clinical Supply Services. The Softgel Technologies segment is engaged in the formulation, development and manufacturing of prescription and consumer health soft capsules or softgels. The Drug Delivery Solutions segment is engaged in the formulation, development and manufacturing of prescription and consumer and animal health products; blow-fill seal unit dose manufacturing; biologic cell line development; analytical and bioanalytical development, and testing services. The Clinical Supply Services segment is engaged in manufacturing, packaging, labeling, storage, distribution and inventory management for clinical trials of drugs and biologics for patient kits; FastChain clinical supply service; clinical e-solutions and informatics, and global comparator sourcing services. Number of employees : 13 900 people.
https://www.marketscreener.com/quote/stock/CATALENT-INC-17083784/company/
from June 2019
Catalent snaps up Novavax production sites and 100 employees in $18M deal
Another deal has been struck in the rapidly evolving market for gene therapy manufacturing. Just two months after Catalent jumped big time into the gene therapy realm, it is adding a couple of small vaccine production sites and 100 employees to its operation. Catalent, which in April struck a $1.2 billion all-cash deal for gene therapy CDMO Paragon Bioservices, is now picking up the gene manufacturing operations of vaccine biotech Novavax. Catalent will pay $18 million up front for the production equipment and other assets and take over the leases on Novavax's sites in Gaithersburg and Rockville in Maryland, as well as about 100 employees. Novavax is negotiating a long-term arrangement with Paragon to provide process development and manufacturing services for specified Novavax programs. The transactions are expected to close in July 2019, the companies said.
https://www.fiercepharma.com/manufacturing/catalent-snaps-up-novavax-production-sites-and-100-employees-18m-deal
from Nov 2013
Catalent opens clinical trial supply facility in Shanghai, China
Catalent Pharma Solutions, a drug deliver specialist has completed construction and validation of its 31,000ft2 clinical supply facility in Shanghai, China. Catalent business leaders, local employees, customers and partners celebrated at a site opening ceremony, less than nine months after construction began on the site. The Somerset, NJ, US firm says it is the first clinical supply facility in China to provide an end-to-end service from clinical supply management, comparator sourcing and primary packaging to storage and distribution. The facility is also validated to support biologics requiring refrigerated and frozen supply chain management. Catalent has already secured customer projects for the site, which is now undergoing customer validation for the supply of clinical trial materials. The Catalent (Shanghai) Clinical Trial Supplies facility is the eighth in the firm’s global clinical supply network and is located in Shanghai’s Waigaoqiao Free Trade Zone.
https://www.manufacturingchemist.com/news/article_page/Catalent_opens_clinical_trial_supply_facility_in_Shanghai_China/93235
Pete Zippelius-Partner Leonard Green
Pete joined LGP in 2018. Previously Pete was a Managing Director and Co-Head of North American Healthcare Investment Banking at J.P. Morgan, which he joined in 2015. Prior to J.P. Morgan, Pete was a Managing Director and Co-Head of Healthcare Services Investment Banking at Deutsche Bank Securities, and prior to that, he was a Managing Director in the Healthcare Investment Banking group at Morgan Stanley. He presently serves on the Board of Directors of Catalent, Press Ganey, WCG, and WellSky. Pete began his career in the Mergers and Acquisitions department of Salomon Smith Barney. He earned a Bachelor of Science degree in Finance from Virginia Tech.
https://www.leonardgreen.com/team/
https://www.finviz.com/insidertrading.ashx?oc=1775433&tc=7&b=2