Connect with us


House Passes Biden’s Build Back Better Plan, Sending It To The Senate

House Passes Biden’s Build Back Better Plan, Sending It To The Senate

Update (940ET): As expected, the Democrat-controlled House has voted through Biden’s Build Back Better spending plan in a 220 to 213 vote with every Republican voting again



House Passes Biden's Build Back Better Plan, Sending It To The Senate

Update (940ET): As expected, the Democrat-controlled House has voted through Biden's Build Back Better spending plan in a 220 to 213 vote with every Republican voting against the Bill, and one Democrat, Rep. Jared Golden, voted "no" over the SALT cap provision. It will now be sent to the Senate where its fate remains uncertain and will be determined by moderate Democrats Joe Manchin (WV) and Kyrsten Sinema (AZ).

As Newsquawk notes, the Senate will take its turn to vote on the bill and all 50 Democratic senators are needed to vote for the bill in order for it to pass. The two senators in question are the moderate Senators Manchin and Sinema; a recent CNN report suggested that Democrats were far more reassured that Sinema would back the Build Back Better bill although they are still uncertain about Manchin.

Note, Senators also have the ability to change parts of the bill. Manchin has previously expressed concerns with the “Paid Leave” component of the bill and believes it should be passed in a bipartisan effort in a separate bill. The SALT cap may also face some concern as it is expected to be one of the most expensive parts in the bill. Manchin has also raised concerns that 10 years of funding should pay for 10 years of services, while Child Care aid only lasts for six years, and cheaper premiums on the Affordable Health Care Act only last for five years. If the Senate were to make adjustments, the bill would then have to be sent back to the House.

Here are some recent comments from Moderates:

  • Manchin said Thursday 18th November he has not decided on whether to vote to proceed to the Build Back Better Bill, says the House passage of the bill would not influence his thinking.
  • Sinema, in an interview with WaPo, noted Biden's spending plan differs from the blueprint that Biden had worked out with centrists weeks earlier, but she did not say what, if anything, she might change. She also reiterated she is worried about inflation and that new tax hikes could harm businesses still struggling in wake of the pandemic, adding she doesn’t think the solution is always more federal spending.

* * *

Update (0715ET): House Minority Leader Kevin McCarthy delayed the passage of President Joe Biden’s social spending package after embarking on an hours-long floor speech that lambasted the bill and Democrats for an array of issues.

The speech began as the House concluded debate on the sweeping budget Thursday night and proceeded to so-called “magic minutes,” which allow three members - the speaker, majority leader and minority leader - to speak for unlimited amounts of time.

McCarthy ended his speech at 5:11 a.m. Friday - eight hours and 33 minutes later.

“It’s okay. I’ll be here a long time,” McCarthy responded over two hours in, looking at Democrats.

“I think I’m upsetting other people on the other side of the aisle by telling them what’s in the bill. They just yelled at me that they’re leaving.”

Speaker Pelosi was indeed none too happy about McCarthy's record-breaking address, posting a statement in real-time during his speech, titled "McCarthy Needs a Reality Check" called the speech a "temper tantrum" full of "unhinged claims." It included a list of rebuttals to McCarthy.

"House Democrats are preparing to pass landmark legislation to lower costs, fight inflation and make big corporations and the wealthiest pay their fair share," the statement said.

"But McCarthy is welcome to keep getting facts wrong on the House Floor."

After McCarthy had gone on for a few hours, Pelosi's office released another statement asking: "Is Kevin McCarthy OK?"

"We're glad we're not the only one who can't follow Minority Leader McCarthy's meandering rant that has nothing to do with the Build Back Better Act," it said.

Pelosi is likely also upset since McCarthy's speech beat the Speaker's own previous record speech which she set in 2018 with an eight-hour speech aimed at urging Republicans to vote on immigration legislation for "dreamers."

*  *  *

Update (2000ET): The House of Representatives is set to debate and then vote on President Biden's $1.75 trillion Build Back Better Act tonight, just hours after the Congressional Budget Office found that it will add more than $350 billion to the budget deficit - a determination which contradicts the White House's longstanding claim that the bill is 'paid for.'

The CBO found that the draft legislation contains $1.636 trillion in spending, and $1.269 trillion in revenue over 10 years, adding $367 billion to the US deficit over that period.

House speaker Nancy Pelosi sent a letter to fellow Democrats on Thursday advising them that they would be receiving an "updated chart from the White House, reflecting the revised numbers" from the CBO, adding that a vote would take place Thursday night "so that we can pass this legislation and achieve President Biden’s vision to Build Back Better!"

Of course, BBB passing the house was more or less a foregone conclusion given its broad support in the chamber. If House Republicans are united in opposition, Democrats can afford to lose three votes and still pass the bill.

The big question now is whether moderate Senate Democrats Joe Manchin (WV) and Kyrsten Sinema (AZ) will support it.  The  (more) fiscally conservative Democrats will make their decision as Republicans hammer the bill for increasing the national debt, as well as its potential to intensify inflation, hinder job growth, and increase government dependency.

A key reason the CBO finds the bill does not pay for itself involves estimates of how much increased tax collection can result from expanding the Internal Revenue Service’s budget. While the White House has projected that increasing the number of enforcement agents at the Internal Revenue Service would yield $400 billion in higher revenue, the CBO does not agree. -Bloomberg

Critics also point to the fact that without sunset provisions, the bill would have actually exceeded $4 trillion, including tax credits for children and low-income workers which will be extended for one year.

And while it will likely pass the House tonight, the final bill is almost certain to be whittled down in the Senate, where Democrats are at the mercy of Manchin and Sinema, who have previously objected to how aspects of the legislation will be funded.

*  *  *

Just as the House Rules Committee cleared Biden's Build Back Better bill for debate by the full House with first votes on the bill set as early as 19:15EST (with Senator Manchin commenting earlier that he has not decided on whether to vote to proceed to the Build Back Better Bill), moments ago the CBO finally released its score of Biden's bill and, to nobody's surprise, it finds that contrary to what the Democrats asserted (and then un-asserted), that the bill would not fully pay for itself.

Instead, the CBO estimates that enacting this legislation would result in a net increase in the deficit totaling $367 billion over the 2022-2031 period, as a result of an additional $1.636 trillion in additional spending...

... offset by just $1.269 trillion in revenue (which however the CBO notes does not count any additional revenue that may be generated by additional funding for tax enforcement).

Worse, over just the next five years, the deficit grows by $792 billion, a number which somehow declines to $367 billion over the next decade, which comes as a result of a massive surge in revenues generated from Ways and Means, which magically surges from just $115BN over the next five years to a whopping $1.2 trillion over the next decade.

The massive surge in revenues from Ways and Means comes almost entirely from one section: "Responsibly Funding Our Priorities" (which conjures up an additional $1 trillion of revenues from 2026-2031, dramatically easing the 'cost' of the bill)...

That "Responsibly Funding Our Priorities" Section can be read in full here (Spoiler Alert - that's where all the Tax Reform gotchas are).

As Mike Shedlock notes, the 10-year lie is that Progressives say the front-loaded benefits will expire. Meanwhile they pledge to do everything in their power to ensure they don't.

History shows that government entitlement programs only get bigger, they don't expire.

Nor did the CBO look at ancillary costs such as inflation.

Earlier in the week, the Biden administration began preparing lawmakers for a 'disappointing estimate,' and told them to "disregard" the assessment according to the New York Times.

Hilariously, at just the same time as the CBO revised its long-awaited score, Janet Yellen - knowing how ugly it would look when the CBO scored that the Democrats lied - issued a statement saying that “the combination of CBO’s scores over the last week, the Joint Committee on Taxation estimates, and Treasury analysis, make it clear that Build Back Better is fully paid for, and in fact will reduce our nation’s debt over time by generating more than $2 trillion through reforms that ask the wealthiest Americans and large corporations to pay their fair share."

The wildcard? Yellen's estimate that the IRS will recoup "at least $400 billion in additional revenue" from high-earners to plug the hole.

A particularly salient aspect of the revenue raised by the legislation is a historic investment in the IRS to crack down on high-earners who avoid paying the taxes that they owe, which Treasury estimates would generate at least $400 billion in additional revenue.

The CBO somewhat agrees with this hypothetical wildcard which can not be modeled out and instead has to be taken as faith, which is why the CBO did not account for it, but it does say that its deficit estimates do not account for the $207 billion in IRS "savings", meaning CBO's effective estimate is $160 billion in new deficits.

Of course, in the end all of this is just optics and the CBO score won't have any impact, with the Bill sure to pass the House and then it will be up to the moderate Democrats in the Senate to determine if it becomes law.

Now let's see what moderate Senate Democrats Joe Manchin and Kyrsten Sinema have to say about it.

Tyler Durden Fri, 11/19/2021 - 09:46

Read More

Continue Reading


Life Sciences Expansions Take Off as 2021 Wraps Up

Several life sciences companies and life science-focused real estate firms announced expansion plans as 2021 comes to an end.



Life Sciences Expansions Take Off as 2021 Wraps Up

Several life sciences companies and life science-focused real estate firms have announced expansion plans as 2021 comes to an end. Here’s a look.

Novavax to Expand Maryland Campus

Novavax, on the cusp of getting its COVID-19 vaccine authorized in numerous countries around the world, is expanding its footprint in Gaithersburg, Md., where it is headquartered. The European Medicines Agency (EMA) is expected to authorize the company’s vaccine soon, and so is the U.S. Food and Drug Administration (FDA). Czechia has already ordered 370,000 doses, with deliveries expected at the beginning of 2022. The company also has a deal with Fujifilm Diosynth Biotechnologies to manufacture millions of doses of the Novavax vaccines at its facilities in Billingham, U.K., with a £400 million investment in expansion.

Four Corners Acquired 150,000-Square-Foot Complex in Belmont, Calif.

Four Corners Properties acquired a 150,000-square-foot office building in Belmont, Calif., called the Shoreway Innovation Center. The seller was Westlake Group. Westlake bought it in 2016 for $61 million. The company plans to expand its use for life sciences, noting that 82% of it is currently leased to a mix of tenants with an average of less than three years lease term remaining.

“Shoreway Innovation Center offers the opportunity to bring office and life sciences space to a market where tenant demand is far outpacing available supply,” said Mike Taquino, executive vice president of CBRE’s Northern California Capital Markets team.

Genentech Leases Building Under Construction in South San Francisco

Source: BioSpace

Boston Properties and Alexandria Real Estate Equities are leasing a building under construction in South San Francisco to Genentech. It will be the first phase of a life sciences campus. The building is at 751 Gateway and is 229,000 square feet. The campus will be called Gateway Commons and is a joint venture between the two real estate firms. They expect initial occupancy toward the end of 2024. Genentech has been headquartered in South San Francisco for forty years, with a large corporate headquarters made up of 4.7 million square feet of five neighborhood hubs. The new site is about one mile’s distance from their main campus.

Mispro Biotech to Open New Facility in North Carolina in Early 2022

Mispro Biotech Services plans to open a new facility in Research Triangle Park (RTP), N.C., in early 2022. Mispro is a leading contract vivarium organization (CVO). The new facility, a full-service vivarium research facility, will be central to one of RTP’s biopark campuses.

“Since we first opened our doors here in 2013, we have seen incredible growth in the RTP cluster,” said Philippe Lamarre, chief executive officer of Mispro. “The time was right to expand into a new facility with more space and modern amenities where we can support the influx of biotechs who are seeking in vivo lab space.”

Laura Gunter, president of NCBIO, representing the life sciences industry in North Carolina, noted, “Mispro has become a cornerstone of the Triangle ecosystem as contract research and support companies are finding increased favor. Biotechs of all sizes and therapeutic disciplines are focusing more on their core competencies, which is opening the door to innovation like Mispro’s contract vivarium option. We are pleased to see their decision to expand here and support more North Carolina companies.”

BioSpace source:

Read More

Continue Reading


Over 170 companies delisted from major U.S. stock exchanges in 12 months

  Over the years, United States-based exchanges have remained an attractive destination for most companies aiming to go public. With businesses jostling to join the trading platforms, the exchanges have also delisted a significant number of companies….





Over the years, United States-based exchanges have remained an attractive destination for most companies aiming to go public. With businesses jostling to join the trading platforms, the exchanges have also delisted a significant number of companies.

According to data acquired by Finbold, a total of 179 companies have been delisted from the major United States exchanges between 2020 and 2021. In 2021, the number of companies on Nasdaq and the New York Stock Exchange (NYSE) stands at 6,000, dropping 2.89% from last year’s figure of 6,179. In 2019, the listed companies stood at 5,454.

NYSE recorded the highest delisting with companies on the platform, dropping 15.28% year-over-year from 2,873 to 2,434. Elsewhere, Nasdaq listed companies grew 7.86% from 3,306 to 3,566. Data on the number of listed companies on NASDAQ and NYSE is provided by The World Federation of Exchanges.

The delisting of the companies is potentially guided by basic factors such as violating listing regulations and failing to meet minimum financial standards like the inability to maintain a minimum share price, financial ratios, and sales levels. Additionally, some companies might opt for voluntary delisting motivated by the desire to trade on other exchanges.

Furthermore, the delisting on U.S. major exchanges might be due to the emergence of new alternative markets, especially in Asia. China and Hong Kong markets have become more appealing, with regulators making local listings more attractive. Over the years, exchanges in the region have strived to emerge as key players amid dominance by U.S. equity markets. As per a previous report, the U.S. controls 56% of the global stock market value.

A significant portion of the delisted companies also stems from the regulatory perspective pitting U.S. agencies and their Chinese counterparts. For instance, China Mobile Ltd, China Unicom, and China Telecom Corp announced their delisting from NYSE, citing investment restrictions dating from 2020.

Worth noting is that the delisting of firms was initiated due to strict measures put in place by the Trump administration. The current administration has left the regulations in place while proposing additional regulations. For instance, a recent regulation update by the Securities Exchange Commission requiring US-listed Chinese companies to disclose their ownership structure has led to the exit of cab-hailing company Didi from the NYSE.

Impact of pandemic on the listing of companies

The delisting also comes in the wake of the Covid-19 pandemic that resulted in economic turmoil. With the shutdown of the economy, most companies entered into bankruptcies as the stock market crashed to historical lows.

Lower stock prices translate to less wealth for businesses, pension funds, and individual investors, and listed companies could not get the much-needed funding for their normal operations.

At the same time, the focus on more companies going public over the last year can be highlighted by firms on the Nasdaq exchange. Worth noting is that in 2020, there was tremendous growth in special purpose acquisition companies (SPACs), mainly driven by the impact of the coronavirus pandemic. With the uncertainty of raising money through the traditional means, SPACs found a perfect role to inject more funds into capital-starving companies to go public.

From the data, foreign companies listing in the United States have grown steadily, with the business aiming to leverage the benefits of operating in the country. Notably, listing on U.S. exchanges guarantees companies liquidity and high potential to raise capital. Furthermore, listing on either NYSE or Nasdaq comes with the needed credibility to attract more investors. The companies are generally viewed as a home for established, respected, and successful global companies.

In general, over the past year, factors like the pandemic have altered the face of stock exchanges to some point threatening the continued dominance of major U.S. exchanges. Tensions between the US and China are contributing to the crisis which will eventually impact the number of listed companies.


Courtesy of Finbold.

Read More

Continue Reading


Taylor Wimpey share price rises despite announcement CEO of 14 years to step down

The Taylor Wimpey share price has gained 1.2% today despite the announcement the housebuilder’s…
The post Taylor Wimpey share price rises despite announcement CEO of 14 years to step down first appeared on Trading and Investment News.



The Taylor Wimpey share price has gained 1.2% today despite the announcement the housebuilder’s chief executive Pete Redfern is to step down from his role after 14 years. Mr Redfern took over the role in 2007 having previously been CEO of George Wimpey after brokering the merger with Taylor Woodrow that would turn the company into the UK’s third-largest homebuilder. Legend has it the deal was thrashed out in a motorway café on the M40.

Redfern is credited with being the driving force behind the combined company’s growth over the 14 years since and the Taylor Wimpey share price initially dipped 0.3% on the news before recovering to a 1.3% gain. Despite yesterday’s news the feared activist investor Elliott Management has reportedly begun to build a stake in Taylor Wimpey Mr Redfern today emphasised that did not influence a decision he said he had been considering for some time.

taylor wimpey plc

The company told investors the recruitment process that will settle upon his successor is at an “advanced” stage and that Mr Redfern will stay on as chief executive until the new person moves into the role.

Mr Redfern, who is one of the FTSE 100’s longest-serving chief executives, commented:

“It has been a privilege to work at Taylor Wimpey for the last two decades and to lead a business of which I am so proud, working with so many exceptional people both within the business.” 

“The business is in excellent health and is well positioned for strong future growth. Accordingly, I am confident that now is the right time for fresh leadership as Taylor Wimpey starts the next chapter.”

Taylor Wimpey has bounced back well from the pandemic this year and Mr Redfern admitted that steering the company through the financial crisis of 2007/08 was a more difficult time and his most challenging professional experience. The homebuilder was threatened with collapse at one point in 2009 before the chief executive succeeded in closing a rescue rights issue and refinancing debts.

It has since gone from strength to strength and is currently valued at £6.1 billion and expects to generate an operating profit of around £820 million this year thanks to completing 14,000 new residential properties.

While Mr Redfern plans to take some time out to spend with his family, he has five children, and hobbies that include woodwork and mountain biking, the 51-year-old said he does not plan to retire. He said he anticipates eventually returning to work and would not rule out another chief executive position with a public company or returning to the housebuilding sector.

Taylor Wimpy’s chair Irene Dormer praised his role in developing the company to its current position of strength, commenting:

“Pete has made an invaluable contribution to the business during his almost 15 years as CEO.”

“Pete has led a management team which has overseen the transformation of Taylor Wimpey into one of the largest housebuilders in the UK, with an industry leading landbank, a strong financial position and a clear and deliverable strategy for profitable growth.”

The post Taylor Wimpey share price rises despite announcement CEO of 14 years to step down first appeared on Trading and Investment News.

Read More

Continue Reading