Daily Brief - 31 Jan 2024

Novo Nordisk soars to $500 billion on Wegovy success

Novo Nordisk, has reached a stunning $500 billion market value, thanks to the huge demand for its weight-loss drug, Wegovy. The company's shares have jumped, overtaking luxury brand LVMH in value. This surge is driven by impressive sales and forecasts of up to 29% growth in profits this year. Despite facing tough competition and challenges in supply, Novo Nordisk is making big investments to meet demand. They are also exploring new uses for Wegovy in heart disease and knee arthritis relief. However, some experts are cautious about Novo Nordisk's future growth potential.

Fed holds rates steady, eyes future cuts amid inflation dip

The Federal Reserve has decided not to change interest rates, keeping them between 5.25% and 5.5%. They're waiting to see how things go before possibly lowering rates, perhaps in March. Inflation's not as high as before, which is good news. The Fed's being cautious, not wanting to rush into cutting rates too soon. They're also thinking about reducing their big financial portfolio but haven't made a decision yet. New people have joined the Fed team, and they're likely to agree with this careful approach.

Microsoft's sales surge, cloud growth leaves some wanting more

Microsoft's revenue has jumped by 18%, reaching $62 billion, their best since 2022. This boost comes from new artificial intelligence (AI) products, making many interested in their cloud services. Although cloud growth at 30% was good, it wasn't enough to fully impress investors. Microsoft's partnership with OpenAI has raised high expectations, making them a big name in AI. Also, their gaming sector, including Xbox, is doing really well after acquiring Activision Blizzard. They're keen on making AI a big part of their future.