What’s happening: Chancellor Angela Merkel said on Sunday that Germany would continue this week during the Christmas period. Unnecessary shops and schools will be closed on Wednesday, and Christmas gatherings will be reduced from 10 people to just five from two different homes.
The announcement came on Friday after nearly 30,000 new coronavirus infections and about 600 deaths were reported in Germany within 24 hours, surpassing records.
“It is possible that, if we act prudently, once again to save the country’s economic substance,” Altmeyer said. But he insisted that this “depends very crucially on the way forward of events.”
Economists are concerned about the extent of the new sanctions.
The chief economist of Commerzbank, Dr. “Germany must brace itself for another recession,” he told consumers on Monday.
The big picture: Germany is not the only country struggling with a deteriorating health situation. South Korea has also sounded the alarm about rising cases and may announce new social distance measures. And the mayor of London is asking the government to close schools for earlier holidays in view of the increase in infections in the city.
It is a reminder that while the rollout of vaccines in catastrophic epidemics is an important moment, it will not be an immediate remedy for the two health and economic crises.
Deutsche Bank’s Jim Reid said in a research note on Monday that Germany has struggled for the past few weeks since it became a related European success story in Wave One. He said the new lockdown would hit short-term “activity and confidence, even if the damage would be limited by knowledge of the imminent vaccine rollout.”
Blank check companies have billions to spend in 2021
Special purpose acquisition companies, or so-called “blank check” companies, which assign responsibility for cutting deals are all the rage. These companies go public and raise funds from investors, and then they have two years to make that money work.
According to Goldman Sachs, 206 SPACs have raised a record $ 70 billion in IPO revenue this year, a fivefold increase from 2019. Merger deals have also been announced or closed in a number of specs.
Remember: Companies like Draftkings and electric truck maker Lordstown Motors are way faster than traditional IPOs. Merged with and released in 2020. Since then the shares of both companies have skyrocketed, helping to boost interest in the process.
This momentum is expected to continue until 2021, with the capital wall still awaiting deployment.
Goldum Estima estimates that 205 SPAC. 61 billion in equity IPOs raised by “currently in pursuit of acquisition targets.” That cash needs to find a home in 2021 or 2022, or it will have to be returned to investors.
By far, electric and autonomous car companies are among SPAC’s most popular targets. But there are only so many companies, which means that the scope of interest will need to be expanded.
“[There’s an] The imbalance between supply and demand, with more capital raised and less clear targets, “Dirk Albersmeier, co-head of JPMorgan at Global Mergers and Acquisitions, told me.
U.S. As the takeover targets intensify, more of that money could flow to Europe and Asia, Albersmeier noted.
Look at this space: the huge demand for high-growth companies is already sticking to the conversation about whether the valuation is too stretched and leading to a collapse. The demand between specs can only feed that fear.
By focusing on a lot of specs technology, and with a limited timeline for capital mobilization, buyers can “bid themselves,” Albersmeier said.
Pfizer and Moderna will cash in on vaccine sales
These companies do not take into account the goodwill they have received by helping end the worst epidemic of the century. Its impact has been extended to Mordena, a young biotech company whose prospects many may have heard of before 2020.
Investor Understanding: Pfizer shares have risen just 10.7% this year, trailing the S&P 500’s 13.4% growth. But shares of German partner Bioentech, which trades in New York, jumped more than 275% to કંપની 30.7 billion.
Shares of Moderna have soared 702% this year, giving the company a market cap of 62 62.1 billion. Investors see results of efficacy and safety for its coronavirus vaccine as a recognition of the complete pipeline of Moderna products. He is increasingly confident that it will not be the company’s only blockbuster.
But profits from vaccine sales are also being criticized. Globally, more than 1.6 million people have now died due to Covid-19.
“It’s completely wrong for pharmaceutical companies like Pfizer and Modern to make it profitable, and to create serious personal fortunes for their executives, instead of the heavily subsidized and supported Covid-19 vaccines by American taxpayers,” said spokeswoman Eli Zupnik. Responsible.For the US, Progressive Wave Dog and Patient Advocacy Group.
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OPEC will release its monthly report in January after manufacturers agreed to start pumping more oil.
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