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    Eli Lilly’s weight loss drug Zepbound cuts heart failure risks in late-stage study

    Eli Lilly’s weight loss drug Zepbound showed benefits in patients with a common type of heart failure and obesity, according to late-stage trial data.
    The findings add to mounting evidence that Zepbound and other highly popular GLP-1 drugs have health benefits beyond promoting weight loss and regulating blood sugar.
    Patients who took Zepbound were 38% less likely to be hospitalized, need to increase their heart failure medication or die because of heart complications compared to those who received a placebo. 

    An Eli Lilly & Co. Zepbound injection pen arranged in the Brooklyn borough of New York, US, on Thursday, March 28, 2024. 
    Shelby Knowles | Bloomberg | Getty Images

    Eli Lilly’s weight loss drug Zepbound showed benefits in patients with a common type of heart failure and obesity, according to late-stage trial data the company released Thursday. 
    The findings add to mounting evidence that Zepbound and other popular GLP-1 drugs have health benefits beyond promoting weight loss and regulating blood sugar, which could potentially lead to broader insurance coverage for those treatments.

    Eli Lilly said it plans to submit the results from the phase three trial to regulators in the U.S. and other agencies starting later this year. 
    Shares of Eli Lilly rose more than 3% in premarket trading Thursday.
    Patients who took Zepbound were 38% less likely to be hospitalized, need to increase their heart failure medication or die because of heart complications compared to those who received a placebo, the study found. Zepbound also significantly improved heart failure symptoms and physical limitations, Eli Lilly said in a release. 
    For a median of two years, the trial followed more than 700 patients who have heart failure with preserved ejection fraction, or HFpEF, and obesity. Some patients also had diabetes.
    HFpEF refers to when the heart is unable to pump enough blood to meet the body’s needs. Eli Lilly said the condition is linked to a “high burden” of symptoms and physical limitations that affect a patient’s daily life, including fatigue, shortness of breath and a lower ability to exercise, among other issues. 

    Roughly 6.7 million adults ages 20 and above have heart failure in the U.S., according to the latest estimates from the Centers for Disease Control and Prevention. 
    Eli Lilly estimates that HFpEF accounts for almost half of all heart failure cases, and in the U.S., nearly 60% of patients impacted also have obesity. 
    The safety data on Zepbound was consistent with previous trials studying the drug. The most common side effects were gastrointestinal, such as nausea and diarrhea, and mild to moderate in severity. 
    Eli Lilly will present the data at an upcoming medical meeting and submit it to a peer-reviewed journal. 
    The pharmaceutical giant’s main rival in the GLP-1 market, Novo Nordisk, is already one step ahead. 
    Novo Nordisk earlier this year submitted an application for the use of its weight loss drug Wegovy in treating patients with HFpEF. The Food and Drug Administration in April also greenlit Wegovy for slashing the risk of serious heart complications. 
    Meanwhile, both Novo Nordisk and Eli Lilly have been studying their respective drugs in patients with chronic kidney disease and fatty liver disease, among other conditions. GLP-1s work by mimicking hormones produced in the gut to suppress a person’s appetite and regulate their blood sugar.
    But Zepbound targets both the GLP-1 and GIP hormone receptors, while Wegovy targets just GLP-1. More

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    Which cities have the worst overtourism problem?

    Cities everywhere are busy implementing measures to deter excess tourism. But most people agree holidaymakers offer an economic bounty. So what would the ideal tourist market look like? Residents would probably prefer a small number of high-spending visitors, to minimise disturbance and maximise revenues. Figures compiled by The Economist rank 20 popular destinations on their appeal to international travellers, and provide a sense of which cities are nearest to—and furthest from—this ideal. More

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    Gary Gensler is the most controversial man in American finance

    How many Securities and Exchange Commission chairs can you name? Even in Washington it is hard to imagine a passer-by being able to come up with more than one. Perhaps the best known is Joe Kennedy, the sec’s first chairman, who took office during the Depression when Americans had lost faith in markets and were clamouring for protection against conmen and fraudsters. And he is most famous for fathering a president. More

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    EU handouts have long been wasteful. Now they must be fixed

    Budget talks in the European Union are a game of 27-dimensional chess. Members play simultaneously against one another, negotiating over many spending items at any one time. Countries are already preparing for the contest that starts next year, which is likely to be particularly dramatic. The world around the EU has shifted, owing to the war in Ukraine, the continent’s increasingly difficult relationship with China and the growing urgency of climate change. That necessitates what Mario Draghi, a former president of the European Central Bank and prime minister of Italy, has called “radical change”. Yet the bloc’s biggest contributors, including Germany and the Netherlands, will be reluctant to stump up more cash. New outgoings for climate change and defence will have to be funded by cuts elsewhere. More

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    Investors beware: summer madness is here

    So much of finance is automated these days you can forget quite how strongly markets echo human rhythms. Yet stock exchanges still ring their opening and closing bells at either end of the working day designed a century ago in Henry Ford’s car factory; the more civilised of them even break for an hour at lunch. The foreign-exchange market notionally operates around the clock, but it is a brave soul who attempts a big order during London’s early hours, before the City is open for business. And it is not just daily routines that matter—seasonal ones do, too. Spare a thought, then, for the 20-somethings left to run the northern hemisphere’s trading desks over the next few weeks, while their bosses doze on a beach. More

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    Carvana beats Wall Street’s second-quarter expectations, guides toward record year

    Carvana expects 2024 to be a record year for the used-car retailer.
    The company’s second-quarter net income was $48 million and net income margin was 1.4%.
    Carvana said in a separate filing that it would make an at-the-market offering worth approximately $1 billion in stock, 35 million shares or so.

    In an aerial view, a sign is posted on the exterior of a Carvana car vending machine on July 19, 2023 in Daly City, California. 
    Justin Sullivan | Getty Images

    Shares of Carvana jumped as much as 14% during after-hours trading Wednesday as the company topped Wall Street’s expectations for the second quarter and disclosed expectations for record adjusted earnings of at least $1 billion for 2024.
    Here is how the company performed in the second quarter, compared to average estimates compiled by LSEG:

    Earnings per share: 14 cents vs. a loss of 7 cents expected
    Revenue: $3.41 billion vs. $3.24 billion expected

    The beats were driven by Carvana’s retail vehicle sales of more than 101,400 units during the quarter, up 32.5% compared to the second quarter of 2023.
    Concurrently with its earnings release, Carvana said in a separate filing that it would make an at-the-market offering worth approximately $1 billion in stock, 35 million shares or so.
    The company’s gross profit per unit, or GPU, which is closely watched by investors, was $7,049, up $529 from a year earlier.
    Carvana expects 2024 to be a record year for the used-car retailer following the results, including projecting adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of between $1 billion and $1.2 billion for the full year 2024, an increase from $339 million in 2023.
    Carvana’s guidance signals expectations for a strong second half of the year. The company said it expects a sequential increase in retail vehicle sales during the third quarter compared to the prior three months.

    “Looking forward, our business still has a lot of untapped potential. And our team is still unreasonable. We see opportunities to improve significantly from here over time,” Carvana CEO and co-founder Ernie Garcia said Wednesday in a joint shareholder letter with Chief Financial Officer Mark Jenkins.
    The company’s previous guidance for the year included a “sequential increase in adjusted EBITDA” for the second half of the year, but did not supply a dollar amount.
    If Carvana meets its 2024 earnings target, it will mark the company’s third annual EBITDA profit, including 2023’s record of $339 million.
    Carvana’s second-quarter net income was $48 million and net income margin was 1.4%. Adjusted EBITDA was $355 million and adjusted EBITDA margin was 10.4%, both company records.
    The second-quarter results continue a massive turnaround for Carvana following Wall Street fears of bankruptcy for the company in early 2022.

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    UAW union endorses Vice President Kamala Harris for president over Trump

    The United Auto Workers union on Wednesday endorsed Vice President Kamala Harris in a widely expected move.
    UAW President Shawn Fain has been outspoken against former President Donald Trump.

    U.S. Vice President Kamala Harris speaks during an NCAA championship teams celebration on the South Lawn of the White House in Washington, D.C., on July 22, 2024.
    Andrew Harnik | Getty Images

    The United Auto Workers on Wednesday endorsed Vice President Kamala Harris over Republican presidential nominee and former President Donald Trump.
    The union’s endorsement should not be surprising. UAW President Shawn Fain has been outspoken against Trump. The Detroit union also has historically supported Democrats, including President Joe Biden.

    Fain’s criticism of Trump continued when endorsing Harris.
    “Our job in this election is to defeat Donald Trump and elect Kamala Harris to build on her proven track record of delivering for the working class,” Fain said in a statement. “We can put a billionaire back in office who stands against everything our union stands for, or we can elect Kamala Harris who will stand shoulder to shoulder with us in our war on corporate greed.”
    The endorsement comes after Biden withdrew his reelection bid and endorsed Harris to become the Democratic nominee against Trump.
    Fain and Trump have been at odds — publicly trading remarks — since the union leader was elected early last year. Trump called for Fain to be fired during a speech earlier this month at the Republican National Convention.
    The union responded with a post calling Trump a “scab and a billionaire,” continuing “that’s who he represents. We know which side we’re on. Not his.”

    President Joe Biden celebrates with United Auto Workers President Shawn Fain after Fain and the UAW endorsed Joe Biden for president at a Community Action Program legislative conference in Washington on Jan. 24, 2024.
    Leah Millis | Reuters

    Quickly after Biden dropped out of the election, the UAW praised him and showed support for Harris, who walked a picket line with union members during a strike in 2019.
    “The path forward is clear: we will defeat Donald Trump and his billionaire agenda and elect a champion for the working class to the highest office in this country,” the union said in a statement July 21 after Biden had dropped out of the 2024 race. That statement stopped short of formally endorsing Harris.
    The UAW’s endorsement is crucial for any candidate looking to secure the battleground state of Michigan because of the UAW’s potential influence there. The Detroit-based union has roughly 370,000 active members and 580,000 retired members, many of whom reside in the Midwest.
    “For our one million active and retired members, the choice is clear: We will elect Kamala Harris to be our next President this November,” Fain said Wednesday.
    Michigan voters, many of whom work in the automotive industry, helped both Biden and Trump to win the White House during the past two presidential elections.

    Former U.S. President and Republican presidential candidate Donald Trump looks on the day he addresses auto workers as he skips the second GOP debate, in Clinton Township, Michigan, on Sept. 27, 2023.
    Rebecca Cook | Reuters

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    Fed holds rates steady and notes progress on inflation

    Federal Reserve officials held short-term interest rates steady, but indicated that inflation is getting closer to its 2% target.
    Central bankers made no obvious indications that a rate cut was imminent. Instead, they maintained their statement that more progress is needed before rate reductions can happen.
    “The Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance,” the Federal Open Market Committee’s post-meeting statement said.

    WASHINGTON – Federal Reserve officials on Wednesday held short-term interest rates steady but indicated that inflation is getting closer to its target, which could open the door for future interest rate cuts.
    Central bankers made no obvious indications, though, that a reduction is imminent, choosing to maintain language that indicates ongoing concerns about economic conditions, albeit with progress. They also preserved a declaration that more progress is needed before rate reductions can happen.

    “The Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance,” the Federal Open Market Committee’s post-meeting statement said, a slight upgrade from previous language.
    “Inflation has eased over the past year but remains somewhat elevated,” the statement continued. “In recent months, there has been some further progress toward the Committee’s 2 percent inflation objective.”
    However, speaking with the media, Chair Jerome Powell indicated that while no decision has been made about actions at future meetings a cut could come as soon as September if the economic data showed inflation easing.
    “If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September,” Powell said.

    Stocks react to Powell comments

    Markets had been looking for signs that the Fed will reduce rates when it next meets in September, with futures pricing pointing to further cuts at the November and December meetings, assuming quarter percentage point moves. Stocks rallied to the highest levels of the day on Powell’s comments.

    As for the Fed’s statement, its language also represented an upgrade from the June meeting, when the policy statement indicated only “modest” progress in bringing down price pressures that two years ago had been running at their highest level since the early 1980s. The previous statement also characterized inflation as simply “elevated,” rather than “somewhat elevated.”
    There were a few other tweaks as well, as the FOMC voted unanimously to keep its benchmark overnight borrowing rate targeted between 5.25%-5.5%. That rate, the highest in 23 years, has been in place for the past year, the result of 11 increases aimed at bringing down inflation.
    One change noted that committee members are “attentive” to the risks on both sides of its mandate for full employment and low inflation, dropping the word “highly” from the June statement.
    Still, the statement kept intact one key sentence about the Fed’s intentions: “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
    That phrase has underscored the Fed’s data dependence. Officials insist they are not on a predetermined course for rates and won’t be guided by forecasts.

    Price pressures off 2022 peak

    Economic data of late has indicated that price pressures are well off the boil from their peak in mid-2022, when inflation hit its highest level since the early 1980s.
    The Fed’s preferred measure, the personal consumption expenditures price index, shows inflation around 2.5% annually, though other gauges indicate slightly higher readings. The central bank targets inflation at 2% and has been insistent that it will stick with that goal despite pressure from some quarters to tolerate higher levels.
    Though the Fed has held to its tightest monetary policy in decades, the economy has continued to expand.
    Gross domestic product registered a 2.8% annualized growth rate in the second quarter, well above expectations amid a boost from consumer and government spending and restocking of inventories.

    Labor market data has been a little less robust, though the 4.1% unemployment rate is far from what economists consider full employment. The Fed statement noted that unemployment “has moved up but remains low.” A reading Wednesday from payrolls processing firm ADP showed July private sector job growth of just 122,000, indicating that the labor market could be weakening.
    However, there was some positive inflation data in the ADP report, with wages increasing at their slowest pace in three years. Also Wednesday, the Labor Department reported that costs of wages, benefits and salaries increased just 0.9% in the second quarter, below expectations and the 1.2% level in the first quarter.
    Fed officials have vowed to proceed carefully, despite signs that inflation is weakening and worries that the economy won’t be able to withstand the highest borrowing costs in some 23 years for much longer. Their position got some fortification Wednesday, when yet another economic report showed that pending home sales surged a stunning 4.8% in June, defying expectations for a 1% increase.

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