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Stephen Moore: Seven Ways America Is Being Destroyed

Stephen Moore: Seven Ways America Is Being Destroyed

Authored by Lily Sun and William Huang via The Epoch Times,

Stephen Moore, the senior…

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Stephen Moore: Seven Ways America Is Being Destroyed

Authored by Lily Sun and William Huang via The Epoch Times,

Stephen Moore, the senior economist at FreedomWorks and former senior economic advisor to President Donald Trump, gave a half-hour keynote speech at the Freedom Festival Banquet held at the Rusty Rudder restaurant on Oct. 7, in Dewey Beach, Delaware. The event was organized by the Delaware Republican Party. During his speech, Moore listed seven ways in which he believes the United States is being destroyed.

With approximately 100 FreedomWorks supporters in attendance, Moore said, “Let me be serious about what’s going on in this country.”  Moore then said that it does not matter whether or not the Biden administration is intentionally trying to destroy our country, and then he listed seven strategies that could destroy a country, which he sees the White House implementing.

‘The first thing you would do is you would destroy its finances.’

“You borrow and spend like crazy until the country was on the verge of bankruptcy. President Joe Biden has done that. In 20 months, this president has spent $4.2 trillion. Now, these numbers are incomprehensibly large.

“So he’s wrecked the nation’s finances. We’re going to be spending decades—your children, my children, your children, our grandchildren, are going to be paying for what Joe Biden has done. It’s shameful. And we need to run every single person who wrote it, voted for these policies, out of town. We have to get rid of the people who made this.”

‘The second thing you do is destroy its currency.’

“Its currency is its means of exchange. Countries that go down the drain have currencies that become valueless. They debase the currency. Inflation is just a way of devaluing the currency. And that’s exactly what’s happened. So we’ve seen in 20 or so months, while Joe Biden has been president, prices have risen by about 16 percent in just 20 months. And what’s happening is people’s wages and salaries are falling way behind inflation.

“We just got the new numbers today on what happened with wages and salaries. The good news for American workers is that people’s wages and salaries over the last year were up 4.9 percent. That’s pretty good. You know what the Consumer Price Index number was over that same period? 8.4 percent. So what’s happened every single month that Joe Biden has been president? Americans are getting poorer. We are getting poorer month after month after month.”

“My friends at the Heritage Foundation have calculated that the average family, the median-income family in America today, has lost $4,000 in purchasing power in 20 months. It’s like a pay cut of $300 a month. That is causing real hardship to middle-income families.”

‘Third, you would destroy its energy supply.’

“You take away its energy. Because energy is the master of the universe. If you don’t have energy, you can’t do anything.

“And so one of the things I remember the first time I talked to Donald Trump, when I met him in late 2015, when he was running for president, I said, ‘If you get this right with American energy, the United States can be the energy-independent country for the first time in our lifetimes.’ I’ll never forget what Trump said: ‘Steve, I don’t want energy independence, I want America to be energy dominant!’

“In four years under Trump, by the time he left office, we were the number-one producer of oil and gas in the world. So, basically, what Trump did … he was in for all of our resources. He said, ‘Let’s produce coal, let’s produce oil, let’s produce gas. Let’s build nuclear plants in this country.’

“Can somebody explain to me why the Left hates nuclear power? Why do they hate natural gas? Natural gas is a clean-burning fuel.”

‘The fourth thing you would do is you would provide money to your enemies.’

“The bad energy policy that says we’re going to go from 70 percent fossil fuels to zero over the next 13 years—who benefits from that? China, Russia, Iran, and Venezuela.

“Biden says we shouldn’t get our energy from Texas. We shouldn’t get our energy from Alaska. We shouldn’t get our energy and oil and gas from North Dakota. Let’s get it from Iran and Venezuela and Russia.”

‘The fifth thing you would do is you would divide the nation.’

“You would divide it: you would pit groups against each other. Isn’t that exactly what Biden has done? It’s black versus white. It’s Hispanic versus white, versus black. It’s dividing people by income classes. It’s dividing people by their gender. All of these things are divisions.”

‘Sixth, you would destroy the stock market and people’s lifetime savings.’

“If you’re living off your 401(k) plan or retirement savings, those have been depleted greatly by Biden. Not only is the stock market down 5 percent, which isn’t that much. In nominal terms, these stocks are down 5 percent since Biden came to office. But when you adjust for inflation, stocks are down by about 20 percent. That’s as huge as trillions and trillions of dollars of losses. And so we are up against a mighty foe right now. And we need to strike back now.

“We’re in some deep trouble right now. I don’t want to depress you. And we can turn this thing around. But I’m really very, very nervous about the state of our economy today. The market lost another 600 points today.”

‘Seventh, you would weaponize government agencies by going to imprison or punish your political enemies.’

“I find that is the most frightening thing, maybe the most dangerous thing of all. Absolutely. It is so scary. I have to tell you, I’m afraid. I’m personally afraid. I’m a Trump guy. They want to come after me. I’ve got a big target on my chest. I’m nervous. One of these days, the FBI is going to knock on my door with the German shepherds and the machine guns.

“One of the most outrageous abuses of power in American history is that they are using power, and what agencies of government have they weaponized? The FBI, the Justice Department, the State Department, and IRS. I’ve got to say Joe Biden and the Democrats have a lot of nerve to call for 80,000 new IRS agents.”

Moore’s Mission

At the end of his speech, Moore emphasized: “I think a red wave is coming. But this election isn’t really about electing Republicans. My mission is to find every single Democrat who did this to our country and get them the hell out of office.” 

He believes that 2022 is going to be a great year, and 2024 will be an even better year. Moore encourages people to run for office: “You care deeply about your country, you’re likely to run for something, run for something, even if it’s school board or local county official or something like, those people have incredible power.”

Moore cited the example of Virginia Governor Glenn Youngkin who won the governor’s race last year. Moore said that even parents who were registered Democrats were angry because “the Democrats said parents should have nothing to do with the schools.” Youngkin signed 11 executive actions, including a ban on critical race theory, and rescinded COVID-19 regulations after his inauguration.

Moore said to an Epoch Times reporter after his speech, “I really wanted to show my support not only for the Republicans but also we need to have Americans really make a loud and clear statement to the Biden administration that they disapprove of what Joe Biden has done to our country.”

“I think people are so fired up right now. I see this all over the country. I’ve been to Delaware, I’ve been to Pennsylvania, I’ve been to Michigan, I’ve been to Arizona, I’ve been to Georgia. Same thing everywhere. People are fired up. They want change. And they disapprove strongly of what Joe Biden has done,” said Moore.

Voices of Support

Rick Jensen, a WDEL Delaware radio host, introduced Stephen Moore as “one of the most influential people in my world, and I share what you write with my listeners.” Jensen thanked Moore “for being so influential and saving my retirement monies by writing.”

Jensen said analysis from Moore and several other economists helped him decide to sell 80 percent of his retirement investments and stocks during the first week of 2022. He said that he was not fooled by  Secretary of the Treasury Janet Yellen, who said that printing massive amounts of currency would not cause inflation.

Hylton Phillips-Page, Sussex County Republican Committee Treasurer, said, “I think we need not be afraid. And we need to be out there and challenge.”

Philips-Page said the event will energize people for the election. “It will send a message to people, quite frankly, that we are not hiding in our basements. We are out there. And we plan to take back this country.”

Tyler Durden Tue, 10/11/2022 - 16:20

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EY Eyes Comeback for Biopharma M&A

EY noted that the total value of biopharma M&A in 2022 was $88 billion, down 15% from $104 billion in 2021. The $88 billion accounted for most of the…

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A recent trickle of mergers and acquisitions (M&A) announcements in the billion-dollar-and-up range suggests that biopharma may be ready to resume dealmaking this year—although the value and number of deals isn’t expected to return to the highs seen just before the pandemic.

2022 ended with a handful of 10- and 11-figure M&A deals, led by Amgen’s $27.8 billion buyout of Horizon Therapeutics, announced December 13. The dealmaking continued into January with three buyouts announced on the first day of the recent J.P. Morgan Healthcare Conference: AstraZeneca agreed to acquire CinCor Pharma for up to $1.8 billion, while Chiesi Farmaceutici agreed to shell out up to $1.48 billion cash for Amryt, and Ipsen Group said it will purchase Albireo Pharma for $952 million-plus.

Biopharmas generated about $88 billion in M&A deals in 2022, down 15% from $104 billion in 2021. The $88 billion accounted for most of the $135 billion in 124 deals in the life sciences. The number of biopharma deals fell 17%, to 75 deals from 90. The other 49 deals totaling $47 million consisted of transactions in “medtech,” which includes diagnostics developers and companies specializing in “virtual health” such as telemedicine. [EY]
EY—the professional services firm originally known as Ernst & Young—recently noted that the total value of biopharma M&A in 2022 was $88 billion, down 15% from $104 billion in 2021 [See Chart]. The $88 billion accounted for most of the $135 billion in 124 deals in the life sciences. That $135 billion figure is less than half the record-high $313 billion recorded in 2019, including $261 billion in 70 biopharma deals.

The number of biopharma deals fell 17% to 75 deals from 90. EY’s numbers include only deals greater than $100 million. The other 49 deals totaling $47 million consisted of transactions in “medtech,” which includes diagnostics developers and companies specializing in “virtual health” such as telemedicine.

We expect this to be a more active year as the sentiment starts to normalize a little bit,” Subin Baral, EY Global Life Sciences Deals Leader, told GEN Edge.

Baral is not alone in foreseeing a comeback for biopharma M&A.

John Newman, PhD, an analyst with Canaccord Genuity, predicted last week in a research note that biopharma companies will pursue a growing number of smaller cash deals in the range of $1 billion to $10 billion this year. He said rising interest rates are discouraging companies from taking on larger blockbuster deals that require buyers to take on larger sums of debt.

“We look for narrowing credit spreads and lower interest rates to encourage larger M&A ($50 billion and more) deals. We do not anticipate many $50B+ deals that could move the XBI +5%,” Newman said. (XBI is the SPDR S&P Biotech Electronic Transfer Fund, one of several large ETFs whose fluctuations reflect investor enthusiasm for biopharma stock.)

Newman added: “We continue to expect a biotech swell in 2023 that may become an M&A wave if credit conditions improve.”

Foreseeing larger deals than Newman and Canaccord Genuity is PwC, which in a commentary this month predicted: “Biotech deals in the $5–15 billion range will be prevalent and will require a different set of strategies and market-leading capabilities across the M&A cycle.”

Those capabilities include leadership within a specific therapeutic category, for which companies will have to buy and sell assets: “Prepared management teams that divest businesses that are subscale while doubling down on areas where leadership position and the right to win is tangible, may be positioned to deliver superior returns,” Glenn Hunzinger, PwC’s U.S. Pharma & Life Science Leader, and colleagues asserted.

The Right deals

Rising interest and narrowing credit partially explain the drop-off in deals during 2022, EY’s Baral said. Another reason was sellers adjusting to the drop in deal valuations that resulted from the decline of the markets which started late in 2021.

Subin Baral, EY Global Life Sciences Deals Leader

“It took a little bit longer to realize the reality of the market conditions on the seller side. But on the buyer side, the deals that they were looking at were not just simply a valuation issue. They were looking at the quality of the assets. And you can see that the quality deals—the right deals, as we call them—are still getting done,” Baral said.

The right deals, according to Baral, are those in which buyers have found takeover targets with a strong, credible management team, solid clinical data, and a clear therapeutic focus.

“Rare disease and oncology assets are still dominating the deal making, particularly oncology because your addressable market continues to grow,” Baral said. “Unfortunately, what that means is the patient population is growing too, so there’s this increased unmet need for that portfolio of assets.”

Several of 2022’s largest M&A deals fit into that “right” category, Baral said—including Amgen-Horizon, Pfizer’s $11.6-billion purchase of Biohaven Pharmaceuticals and the $6.7-billion purchase of Arena Pharmaceuticals (completed in March 2022); and Bristol-Myers Squibb’s $4.1-billion buyout of Turning Point Therapeutics.

“Quality companies are still getting funded one way or the other. So, while the valuation dropped, people were all expecting a flurry of deals because they are still companies with a shorter runway of cash that will be running to do deals. But that really didn’t happen from a buyer perspective,” Baral said. “The market moved a little bit from what was a seller’s market for a long time, to what we would like to think of as the pendulum swinging towards a buyers’ market.”

Most biopharma M&A deals, he said, will be “bolt-on” acquisitions in which a buyer aims to fill a gap in its clinical pipeline or portfolio of marketed drugs through purchases that account for less than 25% of a buyer’s market capitalization.

Baral noted that a growing number of biopharma buyers are acquiring companies with which they have partnered for several years on drug discovery and/or development collaborations. Pfizer acquired BioHaven six months after agreeing to pay the company up to $1.24 billion to commercialize rimegepant outside the U.S., where the migraine drug is marketed as Nurtec® ODT.

“There were already some kind of relationships there before these deals actually happened. But that also gives an indication that there are some insights to these targets ahead of time for these companies to feel increasingly comfortable, and pay the valuation that they’re paying for them,” Baral said.

$1.4 Trillion available

Baral sees several reasons for increased M&A activity in 2023. First, the 25 biopharma giants analyzed by EY had $1.427 trillion available as of November 30, 2022, for M&A in “firepower”—which EY defines as a company’s capacity to carry out M&A deals based on the strength of its balance sheet, specifically the amount of capital available for M&A deals from sources that include cash and equivalents, existing debt, and market cap.

That firepower is up 11% from 2021, and surpasses the previous record of $1.22 trillion in 2014, the first year that EY measured the available M&A capital of large biopharmas.

Unlike recent years, Baral said, biopharma giants are more likely to deploy that capital on M&A this year to close the “growth gap” expected to occur over the next five years as numerous blockbuster drugs lose patent exclusivity and face new competition from lower-cost generic drugs and biosimilars.

“There is not enough R&D in their pipeline to replenish a lot of their revenue. And this growth gap is coming between 2024 and 2026. So, they don’t have a long runway to watch and stay on the sidelines,” Baral said.

This explains buyers’ interest in replenishing pipelines with new and innovative treatments from smaller biopharmas, he continued. Many smaller biopharmas are open to being acquired because declining valuations and limited cash runways have increased investor pressure on them to exit via M&A. The decline of the capital markets has touched off dramatic slowdowns in two avenues through which biopharmas have gone public in recent years—initial public offerings (IPOs) and special purpose acquisition companies (SPACs).

EY recorded just 17 IPOs being priced in the U.S. and Europe, down 89% from 158 a year earlier. The largest IPO of 2022 was Prime Medicine’s initial offering, which raised $180.3 million in net proceeds for the developer of a “search and replace” gene editing platform.

Another 12 biopharmas agreed to SPAC mergers with blank-check companies, according to EY, with the largest announced transaction (yet to close at deadline) being the planned $899 million merger of cancer drug developer Apollomics with Maxpro Capital Acquisition.

“For the smaller players, the target biotech companies, their alternate source of access to capital pathways such as IPOs and SPACs is shutting down on them. So how would the biotech companies continue to fund themselves? Those with quality assets are still getting funded through venture capital or other forms of capital,” Baral said. “But in general, there is not a lot of appetite for the biotech that is taking that risk.

Figures from EY show a 37% year-to-year decline in the total value of U.S. and European VC deals, to $16.88 billion in 2022 from $26.62 billion in 2021. Late-stage financing rounds accounted for just 31% of last year’s VC deals, down from 34% in 2021 and 58% in 2012. The number of VC deals in the U.S. and Europe fell 18%, to 761 last year from 930 in 2021.

The decline in VC financing helps explain why many smaller biopharmas are operating with cash “runways” of less than 12 months. “Depending on the robustness of their data, their therapeutic area, and their management, there will be a natural attrition. Some of these companies will just have to wind down,” Baral added.

M&A headwinds

Baral also acknowledged some headwinds that are likely to dampen the pace of M&A activity. In addition to rising interest rates and inflation increasing the cost of capital, valuations remain high for the most sought-after drugs, platforms, and other assets—a result of growing and continuing innovation.

Another headwind is growing regulatory scrutiny of the largest deals. Illumina’s $8 billion purchase of cancer blood test developer Grail has faced more than two years of challenges from the U.S. Federal Trade Commission and especially the European Commission—while Congress acted last year to begin curbing the price of prescription drugs and insulin through the “Inflation Reduction Act.”

Those headwinds may prompt many companies to place greater strategic priority on collaborations and partnerships instead of M&A, Baral predicted, since they offer buyers early access to newer technologies before deciding whether to invest more capital through a merger or acquisition.

“Early-stage collaboration, early minority-stake investment becomes increasingly important, and it has been a cornerstone for early access to these technologies for the industry for a long, long time, and that is not changing any time soon,” Baral said. “On the other hand, even on the therapeutic area side, early-stage development is still expensive to do in-house for the large biopharma companies because of their cost structure.

“So, it is efficient cost-wise and speed-wise to buy these assets when they reach a certain point, which is probably at Phase II onward, and then you can pull the trigger on acquisitions if needed,” he added.

The post EY Eyes Comeback for Biopharma M&A appeared first on GEN - Genetic Engineering and Biotechnology News.

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IMF Upgrades Global Growth Forecast As Inflation Cools

IMF Upgrades Global Growth Forecast As Inflation Cools

The International Monetary Fund published its latest World Economic Outlook on Monday,…

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IMF Upgrades Global Growth Forecast As Inflation Cools

The International Monetary Fund published its latest World Economic Outlook on Monday, painting a slightly less gloomy picture than three and a half months ago, as inflation appears to have peaked in 2022, consumer spending remains robust and the energy crisis following Russia’s invasion of Ukraine has been less severe than initially feared.

But, as Statista's Felix Richter notes, that’s not to say the outlook is rosy, as the global economy still faces major headwinds.

However, the IMF predicts the slowdown to be less pronounced than previously anticipated.

Global growth is now expected to fall from 3.4 percent in 2022 to 2.9 percent this year, before rebounding to 3.1 percent in 2024.

The 2023 growth projection is up from an October estimate of 2.7 percent, as the IMF sees far fewer countries facing recession this year and does no longer anticipates a global downturn.

Infographic: IMF Upgrades Global Growth Forecast as Inflation Cools | Statista

You will find more infographics at Statista

One of the reasons behind the cautiously optimistic outlook is the latest downward trend in inflation, which suggests that inflation may have peaked in 2022.

The IMF predicts global inflation to cool to 6.6 percent in 2023 and 4.3 percent in 2024, which is still above pre-pandemic levels of about 3.5 percent, but significantly lower than the 8.8 percent observed in 2022.

“Economic growth proved surprisingly resilient in the third quarter of last year, with strong labor markets, robust household consumption and business investment, and better-than-expected adaptation to the energy crisis in Europe,” Pierre-Olivier Gourinchas, the IMF’s chief economist, wrote in a blog post released along with the report.

“Inflation, too, showed improvement, with overall measures now decreasing in most countries—even if core inflation, which excludes more volatile energy and food prices, has yet to peak in many countries.”

The risks to the latest outlook remain tilted to the downside, the IMF notes, as the war in Ukraine could further escalate, inflation continues to require tight monetary policies and China’s recovery from Covid-19 disruptions remains fragile. On the plus side, strong labor markets and solid wage growth could bolster consumer demand, while easing supply chain disruptions could help cool inflation and limit the need for more monetary tightening.

In conclusion, Gourinchas calls for multilateral cooperation to counter “the forces of geoeconomic fragmentation”.

“This time around, the global economic outlook hasn’t worsened,” he writes. “That’s good news, but not enough. The road back to a full recovery, with sustainable growth, stable prices, and progress for all, is only starting.”

However, just because the 'trend' has shifted doesn't mean it's mission accomplished...

That looks an awful lot like Central Bankers' nemesis remains - global stagflation curb stomps the dovish hopes.

Tyler Durden Tue, 01/31/2023 - 14:45

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Nike Escalates Design Battle Against Lululemon

The sportswear giant is accusing lululemon of patent infringement.

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The sportswear giant is accusing lululemon of patent infringement.

The Gucci loafers. The Burberry  (BBRYF) trench coat. When it comes to fashion, having a unique design is everything. This is why brands spend millions both creating and protecting their signature looks and the reason, as in the case of Adidas  (ADDDF) , extricating a brand's design from creators who behave badly is a costly and difficult process.

There is also the constant effort to release new styles without infringing on another group's style. This week, sportswear giant Nike  (NKE) - Get Free Report filed a lawsuit accusing lululemon  (LULU) - Get Free Report of infringing on its patents in the shoe line that the Vancouver-based activewear company launched last spring.

After years of selling exclusively clothing, accessories and the odd yoga mat, lululemon expanded into the world of footwear with a running shoe it dubbed Blissfeel last March. These were soon followed by training shoe and pool slide styles known as Chargefeel, Strongfeel -- all three of the designs (including a Chargefeel Low and a Chargefeel Mid design) have been mentioned in the lawsuit as causing "economic harm and irreparable injury" to Nike.

Nike's History Of Suing Lululemon Over Design

The specific issue lies in the technology used to build the shoes. According to the lawsuit filed in Manhattan federal court, certain knitted elements, webbing and tubular structures are too similar to ones that had been used by Nike earlier.

Nike is keeping the amount it hopes to receive from lululemon under wraps but is insisting the company infringed on its patent when releasing a shoe line too similar to its own. Lululemon had previously talked about how its shoe line "far exceeded" its leaders' expectations both in terms of sales and ability to expand.

In a Q1 earnings call, chief executive Calvin McDonald said that the line "definitely had a lot more demand than we anticipated."

Nike has already tried to go after lululemon through the courts once before. In January 2022, it accused the company of infringing on six patents over its at-home Mirror Home Gym. As the world emerged out of the pandemic, lululemon has been billing it as a hybrid model between at-home and in-person classes. 

The lawsuit was also filed in the U.S. District Court in Manhattan but ultimately fizzled out.

When it comes to the shoe line lawsuit, Lululemon has been telling media outlets that "Nike's claims are unjustified" and the company "look[s] forward to proving [their] case in court."

Lululemon

Some More Examples Of Prominent Design Battles

In the fashion industry, design infringement accusations are common and rarely lead to high-profile rulings. While Nike has gone after the technology itself in both cases, lawsuits more often focus on the style or pattern on a given piece.

Shein, a China-based fast-fashion company that took on longtime leaders like H&M  (HNNMY)  and Fast Retailing  (FRCOF) 's Uniqlo with its bottom-of-the-barrel pricing, has faced numerous allegations from smaller and independent designers over the copying of designs -- in some cases not even from fashion designers but artists painting in local communities.

"They didn't remotely bother trying to change anything," U.K.-based artist Vanessa Bowman told the Guardian after seeing her painting of a local church appear on a sweater on Shein's website. "The things I paint are my garden and my little village: it’s my life. And they’ve just taken my world to China and whacked it on an acrylic jumper."

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