WSJ What’s News – November 4, 2025

Episode: Government Shutdown Poised to Become Longest in U.S. History

Episode Overview

This episode covers several breaking news stories, with its main focus on the imminent record-breaking government shutdown in the U.S., the political implications, and prospects for a resolution. Other key topics include high-stakes developments in the obesity drug market, a warning signal from U.S. stock valuations, and a recap of the legacy of former Vice President Dick Cheney following news of his death. The episode effectively balances analysis of government gridlock and market signals with updates on major business and political shifts.

Key Discussion Points & Insights

1. Obesity Drug Market Shake-Up

(00:51–03:16)

• Negotiations for Lower Drug Prices

  • The Trump administration is mediating with drug giants Eli Lilly and Novo Nordisk to make blockbuster weight loss medications more affordable, possibly down to $149 for a month’s supply through a government-run, Trump-branded pharmaceuticals website.
  • Proposed deals could expand Medicare and Medicaid coverage for expensive obesity drugs (e.g., Wegovy, Zepbound), which are currently available under certain health-related conditions but not widely for weight loss.

• Corporate Bidding War for Mitcera

  • Novo Nordisk and Pfizer have intensified their battle to acquire Mitcera, a startup with no approved drugs but significant weight loss drug potential.
    • Novo Nordisk’s latest $10 billion valuation outbids Pfizer’s $8.1 billion offer.
    • Legal disputes have arisen as both companies seek to gain an edge in the surging obesity drug market.

2. Stock Market Warning Signals

(03:16–05:31)

• Historic Shiller PE Ratio Milestone

  • The cyclically adjusted price-to-earnings (Shiller PE) ratio, calculated over ten years and inflation-adjusted, now exceeds 40—a level previously seen only during the 1999 tech bubble.
  • Spencer Jakab, Markets AM columnist, explains the significance and limitations of this indicator.

  Notable Quotes:

  • Spencer Jakab (03:16):
    “There are dozens of ways to slice and dice the market and to value it. But this is really the gold standard… It's proven to be an extremely reliable indicator of what to expect in the several years ahead of us.”
  • Spencer Jakab (04:13):
    "The market is extremely expensive. It's in about the 1 or 2% range of being most expensive in history as far back as we have numbers."

• Implications for Investors

  • The high Shiller PE suggests lower expected returns and increased risk.
  • Models from Research Affiliates advise diversification, noting that much of recent years’ gains were driven by large-cap tech (e.g., Nvidia, Microsoft).

3. Stock Market Pullback & Consumer Brands

(05:35–06:28)

• Following a record-shattering run, major indexes pulled back:
  • Nasdaq: -2%
  • S&P 500: -1%+
  • Dow Jones: -0.5%
  • Yum Brands defies the trend, rising 7.3% on talks of selling Pizza Hut.

4. 2025 U.S. Election Day

(06:45–08:08)

• Key races:
  • Governor in NJ & VA, NYC mayoral election, and a California ballot measure on congressional maps.
  • Results may signal voter sentiment toward Trump’s second administration.

5. Government Shutdown: Poised to Break Record

(08:08–10:04)

• Record-Breaking Duration

  • Day 35: The shutdown, ongoing since October 1, is set to become the longest in U.S. history.
  • Consequences: Hundreds of thousands furloughed, essential workers unpaid, disruption of SNAP (food aid) for millions.

• Negotiation Dynamics

  • Growing optimism for a bipartisan deal—particularly in the Senate.
  • Key sticking points: Democrats demand healthcare-related funding; divisions persist among House Republicans, with Speaker Johnson under pressure from both moderate and hardline conservatives.

  Notable Quotes:

  • Katie Stetch Farig, WSJ Congress reporter (08:08):
    “We’re also seeing optimism that we haven’t seen before… I hate to use the term cautiously optimistic, but that’s where we are right now.”
  • Katie Stetch Farig (08:44):
    "Speaker Johnson’s in a tough spot… he also has a very strong conservative anti-spending flank that would oppose any sort of extension."
  • Katie Stetch Farig (09:36):
    “We've seen twice in the last week now President Trump take to social media and pressure Republican colleagues to bypass Democrats and the filibuster to restart the federal government.”

• Trump’s Role

  • President Trump publicly pressures Republicans to find a solution independent of Democratic cooperation, creating tension within the GOP.

6. The Legacy of Dick Cheney

(10:08–11:32)

• Passing of an Influential Vice President

  • Dick Cheney dies at 84 due to complications from pneumonia and heart disease.
  • Cheney was a prominent architect of post-9/11 policy and the Iraq War; served under four Republican presidents; later became a critic of both Obama and Trump.
  • Noted for his partisanship flip, having endorsed Democrat Kamala Harris for president in 2024.

  Quote from Dick Cheney (2014) (10:08):
  “We did exactly what needed to be done in order to catch those who were guilty on 9/11 and to prevent a further attack. And we were successful on both parts.”

Notable Quotes & Timestamps

• Spencer Jakab (03:16):
  “This is really the gold standard… proven to be an extremely reliable indicator of what to expect in the several years ahead of us.”
• Spencer Jakab (04:13):
  “There's definitely a very, very clear relationship between how high the Shiller PE is and how low your expected returns are.”
• Katie Stetch Farig (08:08):
  “I hate to use the term cautiously optimistic, but that’s where we are right now.”
• Katie Stetch Farig (08:44):
  "Speaker Johnson’s in a tough spot… I’m just not sure I trust him and I don't know what he would do with it."
• Dick Cheney (2014, 10:08):
  “We did exactly what needed to be done in order to catch those who were guilty on 9/11 and to prevent a further attack.”

Important Segment Timestamps

• Obesity Drug Market & Pricing — 00:51–03:16
• Stock Market Valuation/Warning — 03:16–05:31
• Market Pullback & Brand News — 05:35–06:28
• Election Day Update — 06:45–08:08
• Shutdown Negotiation Deep Dive w/ Katie Stetch Farig — 08:08–10:04
• Dick Cheney Obituary & Legacy — 10:08–11:32

Conclusion

This episode offers a snapshot of political deadlock and economic anxiety, with thoughtful analysis of warning signs in the financial markets and the potential for Congressional compromise to end the historic shutdown. It also provides insight into Big Pharma’s ongoing transformation and reflects on Dick Cheney’s outsized impact on American politics. The tone is measured, fact-driven, and brisk, matching the journalistic approach listeners have come to expect from the Wall Street Journal.