Daily market update: GDP and inflation data, Novo Nordisk, Pets at Home

The FTSE 100 made a steady if unspectacular start on the last full trading day before Christmas.

This followed a decent showing for US and Asian markets overnight even if the record highs for gold and silver hint at some continuing nervousness among investors. Updated estimates of GDP and core PCE inflation data stateside, both delayed by the US government shutdown, may offer some insight later into the likely trajectory of interest rates across the Atlantic in 2026.

Novo Nordisk

The weight-loss drug market started out as a fairly even race between Eli Lilly and Novo Nordisk, but in recent times Lilly has streaked ahead of its Danish counterpart as Novo has been beset by disappointing trial results and operational misfires.

So news that the US drug regulator has approved a daily pill version of Novo’s Wegovy treatment has given the company a head start in the next big contest of bringing an oral obesity treatment to market.

This is a significant breakthrough given the reluctance of some people to use the existing injectable option and it could help the company win back market share from Lilly. Novo expects to be ready for a full launch in January.

It won’t have this market to itself for long, as Eli Lilly’s own pill looks set to receive regulatory approval in the near future after positive results from its latest trial. However, this is a boost for new Novo boss Mike Doustdar as he looks to revive the company’s fortunes.

Pets at Home

The market has given a cautiously positive welcome to the man tasked with putting some pep back into Pets at Home as James Bailey is announced as a permanent replacement for the recently ousted Lyssa McGowan.

Bailey has decent retail credentials having served as managing director at Waitrose through Covid and relaunching the supermarket’s online platform after it broke ties with Ocado. Prior to that he spent two decades at Sainsbury’s.

This retail experience is important as it’s the retail arm of Pets at Home which really needs sorting out. The company’s veterinary business continues to perform well – notwithstanding the ongoing probe by the competition authorities into this whole market.

To what extent this can be fixed is Bailey’s conundrum to solve. With household budgets in the UK still under pressure, people are less likely to splash out on extra treats and toys for their furry and feathered friends and are more likely to focus on the basics.

Added to this, Pets at Home faces real pressure from the big supermarkets who have the purchasing power to outmatch them on price.