Santiago Perez (3:28)

So the visit is quite important because there are topics in which both countries need close coordination. The auto sector is one important example, and so is the auto parts industry, in which both Mexico and Canada are highly integrated. Most of the exports go to the U.S. this North American integration also means that a lot of car parts go from one country to the other. So reaching a trade deal that is beneficial for the three countries is a top priority, especially for Mexico and Canada. We're talking about millions of jobs at stake.

Caitlin McCabe (4:11)

And now to a major development in weight loss drugs. Novo Nordisk, the Danish pharma giant, said this morning that its daily Wegovy pill has helped patients in a late stage trial lose about as much weight as they do when taking the company's weekly injection. Patients taking the experimental drug lost an average 16.6% of their weight, with a third losing up to 20% or more in a 64 week period. Peter Loftus covers the weight loss industry for the Wall Street Journal and says while weekly injectables have generated huge sales, there's real demand for weight loss pills too.

Peter Loftus (4:43)

There's a demand from people who don't like needles, who might like the cadence of taking something once a day rather than a weekly injectable. And from a manufacturing standpoint for the companies, there's some advantages to making these in pill forms rather than weekly injectables.

Caitlin McCabe (5:02)

This is in part because the pill could cost less than current weight loss drugs.

Peter Loftus (5:07)

The injectables. Right now they have list prices of over $1,000 a month. In practice, their net prices are a lot lower than that in the US at least because of discounts that the companies provide, but still are several hundred dollars a month. The analysts who follow these companies think there's at least the potential for lower prices because it's easier and less costly to make these pill versions than it is to make the injectables, which in addition to the medication itself come with these auto injector devices. And so that adds some cost and complexity to manufacturing.

Caitlin McCabe (5:43)

And while this industry has been incredibly competitive, Peter said other companies are likely to enter the pill race. Even as Novo Nordisk and Eli Lilly get first mover advantage, Novo does have.

Peter Loftus (5:54)

An opportunity to kind of shore up its market share. The problem is that it might have a limited window in enjoying that advantage because Eli Lilly has developed its own pill that could come to market. You know, a lot of these other companies, they recognize that Novo Nordisk and Eli Lilly have essentially established a duopoly with the injectables. And so they've kind of moved ahead of that to kind of aim for the next wave, that even if it's a couple years from now, they could come to market with a superior product, maybe one that helps people lose more weight than what these first pills can deliver.

Caitlin McCabe (6:31)

It's worth noting that Novo and Eli Lilly's weight loss pills haven't been approved for use yet, with US Regulators expected to reach a decision by the end of the year. Coming up, investors are already looking ahead to the next potential rate cut from the Fed. And we look at the art of managing the president from Europe's so called Trump Whisperer. Those stories after the break. At kpmg, we make the difference by creating value, like developing strategic insights that help drive M and a success or embedding AI solutions into your business to sustain competitive advantage. KPMG make the difference. Learn more at www.kpmg.us insights. We're less than 24 hours out from the Fed's interest rate cut and investors are already turning their attention to the next expected move. Yesterday's quarter point cut was expected, but the lack of clarity regarding how many more rate cuts are in store over the next year means we're likely to see a lot more volatility. Paul Hannon is the economics editor for Dow Jones Newswires in London. Paul, the Fed is obviously agenda setting for markets and to some extent for other central banks too. Are there any upcoming decisions we should be looking at here?

Paul Hannon (7:51)

The bank of England is today it is likely to leave its key rate unchanged. It's been moving very slowly and carefully while the Fed has been on pause. It's very like the Fed, actually. I mean, it faces this challenge of balancing a pickup in inflation against signs of a cooler jobs market. And while the Fed is sort of leaning towards focusing on the jobs market, the bank of England is leaning a bit more towards worrying about inflation. So while investors sort of expect the Fed to deliver two more cuts this year. Investors are thinking maybe the bank of England will wait until early next year to make its next move.

Caitlin McCabe (8:33)

And I believe we're waiting on a decision from the bank of Japan, too. What are we expecting on that front, given the uncertainty over Japan's trade outlook, but also the resignation of Prime Minister Shigeru Ishiba earlier this month?

Paul Hannon (8:48)

They will be very, very careful. And right now they will probably decide to leave things as they are. But I think later in the year, you'll probably see another small rate rise.

Caitlin McCabe (8:59)

You mentioned the deterioration in the US Economy. How does that compare to the rest of the world globally?

Paul Hannon (9:04)

Well, it has a big impact on the economic situation in the rest of the world. It's been a little bit clearer in the US that tariffs are having an impact on both prices and the jobs market. Europe so far appears to have been a little bit less affected by that. And that's partly to do with the level at which tariffs seem to be settling overnight. For example, the Irish central bank published some new forecasts. It raised its growth forecasts for this year and next year, basically because the 15% level at which tariffs appear to be fixed now for a little while at least is going to be less damaging than they had anticipated. But that's not to say that this is done and dusted. There's still quite a lot of uncertainty about exactly how trade is going to be conducted over the next few years. So it's a difficult moment, I think, for central banks to be making decisions about anything.

Caitlin McCabe (9:59)

That's Paul Hannon for Dow Jones Newswires in London. Paul, thanks for being here.

Paul Hannon (10:03)

You're welcome.

Peter Loftus (10:04)

Thanks.

Caitlin McCabe (10:08)

And finally, President Trump continues his unprecedented second state visit to the UK Today, where he'll meet Keir Starmer, the British prime minister who has seemingly perfected the art of handling the mercurial president. Before leaving Washington, Trump suggested he was open to making some concessions to Britain on trade. And perhaps to sweeten the deal, Britain has rolled out the red carpet for the president and Melania Trump, including a lavish dinner with King Charles III at Windsor Castle last night. Here's Journal White House reporter Tarini the table itself measured 51 yards, had 139 candles and 1,452 pieces of cutlery for the 160 guests. The table took a week to put together. And the guest list, which included tech CEOs like Apple's Tim Cook and OpenAI's Sam Altman, was created by the British government, the White House and the royal family. Officials said it was representative of the transatlantic relationship. Starmer, in Britain's approach to dealing with Trump, has been paying dividends for Britain, which secured an early trade deal with the US A lower tariff rate compared to the European Union and special treatment on steel and aluminum tariffs. Downing street, the British prime minister's office has said the UK has also secured more than $200 billion in investments from US companies to coincide with Trump's visit, including over $40 billion in new AI infrastructure investments from US tech companies. Trump will meet Starmer at the prime minister's countryside retreat today, known as Checkers, where the president and first lady are expected to be presented with a range of Made in Britain gifts. And that's it for what's news for this Thursday morning. Today's show is produced by Kate Bullivant and Daniel Bach. Our supervising producer is Sandra Kilhoff. And I'm Caitlin McCabe for the Wall Street Journal. We'll be back tonight with a new show. Until then, we'll see. Thanks for listening.

Peter Loftus (12:12)

What's driving the markets this week? What's on investors minds as they look ahead? Find out on the Markets podcast from Goldman Sachs. A breakdown of market moves and macro signals in 10 minutes or less. The Markets podcast from Goldman Sachs. Listen now.