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Good morning! Mixed signals in the job market raise recession fears, Disney parks face challenges despite revenue gains, and Novo Nordisk trims profit outlook as Wegovy sales disappoint.

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ECONOMY

Recession Fears

The latest jobs report shows a complex labor market with mixed signals of hiring, layoffs, and quits, prompting concerns about a potential recession. Analysts are closely watching these trends to understand the overall economic direction.

Here's the breakdown:

• The jobs report indicates a combination of hiring, layoffs, and quits, reflecting a turbulent labor market.

• Concerns about a recession are growing as mixed employment signals complicate economic predictions.

• The Sahm Rule, which indicates recession risk, has been triggered by the recent labor market data.

• Analysts emphasize the importance of monitoring both the job creation rate and the number of layoffs.

• Uncertainty remains high as businesses navigate economic pressures and labor market fluctuations.

BUSINESS

Disney Faces Challenges

Disney's parks are experiencing revenue growth, but the company is facing challenges with lower attendance and operational issues. This complex situation affects Disney's overall earnings and strategic decisions.

Here's the breakdown:

• Disney parks have reported revenue gains, but lower attendance is creating operational challenges.

• Despite financial growth, the company is struggling with maintaining consistent visitor numbers.

• Operational issues, including staffing and ride maintenance, are impacting customer satisfaction.

• Disney is exploring new strategies to attract visitors and enhance park experiences.

• Analysts are closely watching how these challenges will influence Disney's future earnings reports.

BUSINESS

Wegovy Sales Slowing

Novo Nordisk has trimmed its full-year profit outlook after reporting weaker-than-expected quarterly sales of its weight loss drug Wegovy, ending a streak of positive earnings news. The company's shares dropped sharply as investors reacted to the disappointing results and concerns over future market dynamics.

Here's the breakdown:

• Novo Nordisk's quarterly sales of Wegovy rose 53% to 11.66 billion (Danish) crowns, missing the expected 13.54 billion (Danish) crowns.

• The company cut its operating profit growth forecast for the year due to weaker sales and a significant impairment loss.

• Despite the weaker-than-expected results, Novo raised its sales growth outlook, indicating confidence in ramping up production.

• CEO Lars Fruergaard Jorgensen downplayed competitive threats from Eli Lilly, focusing on maintaining supply for existing patients.

• Novo plans to resubmit its application for Wegovy to treat heart failure and kidney disease with additional data in 2025.

APPENDIX

• Boeing and NASA are in discussions over the plan to return Starliner astronauts home, addressing various logistical and technical challenges. WSJ

• Musk's company X is suing GARM over an advertising boycott, escalating tensions in the advertising industry. CNN

• The tech industry is experiencing a slowdown, with major companies reporting reduced growth and layoffs. CNN

• Homeowners are facing an insurance nightmare with cancellations and the future implications of AI and surveillance drones. Business Insider

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