North America
CNBC Finance

Seniors in Medicare are about to get landmark obesity drug coverage — but many may not know it yet

Millions of older Americans in Medicare are about to gain access to obesity drugs for the first time — but that landmark shift may be flying under the radar for many of them. Starting Wednesday, eligible beneficiaries can get obesity drugs through Medicare's new Bridge demonstration program for a monthly copay of just $50. The coverage marks a long-sought victory for patients, physicians and obesity advocates who have pushed for broader access to the blockbuster treatments from Novo Nordisk and Eli Lilly, which have remained out of reach for many Americans. But a staggering 82% of all older Americans — including 79% of Republicans and 84% of Democrats — say they are unaware that Medicare is about to begin covering obesity drugs, according to a survey released in early June by the Obesity Care Advocacy Network. The survey, conducted in late March among more than 2,100 adults ages 65 and older, was completed weeks before the government announced it would extend the Bridge program through 2027. That data may not come as a surprise: While the government has done robust outreach to healthcare providers and pharmacists, some physicians and other experts told CNBC that they have noticed limited advertising of the new coverage to the general public from the Centers for Medicare & Medicaid Services or Novo and Lilly. There may be good reasons for it. CMS has done limited public outreach on the program ahead of July 1 because beneficiaries are "most moved to take action" when a benefit is actually available to them, an agency official told reporters on Thursday. They added that CMS will put out more promotions after the launch, "in the interest of being good stewards of our taxpayer dollars." Other experts also told CNBC that it may come down to making sure providers and pharmacies are prepared and resources are in place before pursuing broad public outreach. Still, some experts say the lack of awareness may delay some eligible adults from taking advantage of the new coverage and getting on the treatments immediately. "I have not seen a lot of information out there for the public, and I think there are going to be plenty of people who have zero knowledge of the Bridge program," said Dr. Shauna Levy, medical director of the Tulane Bariatric and Weight Loss Center. "And I think for patients, it's just going to take even longer for them to find out about it, and then see if they're eligible." Unlike traditional Medicare drug coverage, enrollment in the Bridge program is not automatic. Patients must meet eligibility requirements, obtain a prescription and receive prior authorization approval through CMS before coverage begins. The relatively quiet lead-up to the rollout stands in contrast to the marketing campaigns Novo and Lilly have historically deployed for their obesity and diabetes medicines, which have appeared everywhere from television commercials to subway advertisements. Novo spent nearly $500 million on U.S. advertising for its obesity drug Wegovy and its diabetes counterpart Ozempic in the first 9 months of 2025, more than double the just over $200 million Lilly spent promoting its rival injections, Zepbound and Mounjaro, Reuters reported, citing data from the ad-tracking firm MediaRadar. "I was a little surprised that there hasn't been more advertising by Lilly and Novo for seniors to be ready to get their prescription," said Leerink Partners analyst David Risinger, adding that it takes time to book an appointment with a provider to obtain one.

Seniors in Medicare are about to get landmark obesity drug coverage — but many may not know it yet
North America
CNBC Finance

A 'perfect storm' points to a much smaller U.S. auto market by 2040

Ten years ago, a record 17.6 million cars, trucks and SUVs were sold in the U.S. Some forecasts say the country might not come close to that number again. Analysts at consulting firm Bain & Company said several signs indicate the market is about to shrink even more. Falling birth rates, behavioral changes, high car prices and a growing array of alternatives could drive sales down by more than 2 million units by 2040, according to their analysis. These indications point to a future where automakers fiercely compete for a shrinking number of customers, said Mark Gottfredson, a partner at Bain & Company. The auto industry has historically depended on an annual 1% growth rate that tracks the increase of the overall population, Gottfredson said. But all over the world, government statistics show population growth has slowed, and some countries are already seeing declines. "It is the perfect storm, isn't it," Gottfredson said. "It starts with the population declines. You're no longer a growth industry. You're a declining industry. You're a declining industry at a time when the technology is disrupting everything." The U.S. fertility rate in 2025 was about 1.6 births per woman. While not as low as some countries in Europe or Asia, it's considered below the replacement rate of 2.1, according to the Centers for Disease Control. Bain said that has been offset by relatively high immigration — about a million people coming to the U.S., according to the historical average it cited. But the firm said it expects restrictive immigration policies will last for the next 15 years, cutting historical net migration rates of the past 20 years in half, which means it could again reach low levels seen in 2019. That remaining population's behavior has changed — in part due to high prices and affordable alternatives, according to Bain. Half of 16-year-olds today don't have a driver's license, compared with nearly 70% of 16-year-olds between the years of 1966 and 1984, Gottfredson said. The stat might reflect a mere delay rather than a total refusal — Bain's research suggests most people still get licenses by age 25. Still, the share of new vehicle registrations among people aged 18 to 34 fell from 12% in the first quarter of 2021 to under 10% by mid-2025, according to S&P Global Mobility. Buyers 55 and older account for nearly half of all new registrations and have held the largest share for eight straight quarters, the firm said. "The engine behind it is affordability," said Craig Daitch, founder and president of Telemetry, a firm that does market research for the auto industry. New vehicle monthly payments are up 30% over four years, and nearly one in five new vehicles now carries a payment over $1,000 a month, he added. AutoForecast Solutions, a forecasting firm, expects U.S. new car sales to stay relatively flat at around 16 million through 2033, the furthest year in the future for which the company issues estimates. "When you look into the future, younger people are more likely to use Uber or Lyft when they're going somewhere," Sam Fiorani, vice president of global vehicle forecasting for the company. "We're still seeing groups of young people who enjoy driving and want a new car, but fewer can afford it."

A 'perfect storm' points to a much smaller U.S. auto market by 2040
North America
CNBC Economy

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows

The Federal Reserve's primary price gauge rose at its highest level since 2023, reinforcing the central bank's recent tough talk on inflation. Excluding food and energy, the personal consumption expenditures price index showed a 3.4% annual rate after rising 0.3% for the month, both in line with the Dow Jones consensus. The annual core reading was the highest since October 2023. For the all-items reading, the PCE index showed inflation running at a seasonally adjusted 4.1% annual rate, the highest since April 2023, according to a Commerce Department report Thursday. On a monthly basis, the PCE accelerated 0.4%. The annual level was in line with the Dow Jones consensus estimate while the monthly reading was 0.1 percentage point below. While Fed officials look at both headline and core rates, they generally consider the latter a better measure of long-run trends, particularly in light of this year's inflation surge that was driven largely by an acceleration in energy prices tied to the Iran war that have slowly been seeping into other parts of the economy. Stock market futures held in positive territory following the release while Treasury yields slipped. Traders continued to expect the Fed to approve a rate hike in September, though they lowered odds slightly. Energy again provided the largest source of price gains, with related goods and services prices up 4% for the month. Housing cost rose 0.3%, while financial services and insurance jumped 1.2%. "Inflation is at a 3-year high due to the war in Iran and it's painful for middle-class and moderate-income Americans," said Heather Long, chief economist at Navy Federal Credit Union. "People are spending more on gas, along with healthcare and utilities. New Fed Chair Kevin Warsh has made his commitment clear to bring inflation down. The key will be how much relief happens by September." Even with the elevated inflation levels, consumer spending for the month came in stronger than expected. Personal consumption expenditures, a proxy for spending, rose 0.7% for the month, 0.1 percentage point above the forecast and ahead of the inflation rate. Personal income also climbed 0.7%, well above the 0.4% forecast. The personal saving rate rose to 3%. The report comes a little more than a week after the Fed and Warsh delivered what markets widely viewed as a tough talk on rates and inflation. Warsh in particular stressed the importance of price stability, with the Federal Open Market Committee adopting language in its post-meeting statement unequivocally stating that it would "deliver price stability" after missing its 2% inflation target for five years running. In addition, officials took off a previously indicated rate cut this year and indicated a likelihood of a hike. However, the inflation picture has been complicated. Fed officials generally look through the kind of supply-driven spike that the energy surge has driven, but concerns are rising that price increases are becoming more widespread and also are being fed by tariffs.

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows
Asia-Pacific
The Straits Times

OPEC+ approves further oil output increase as Hormuz exports start to recover

OPEC+ has agreed in principle to increase quotas by 188,000 barrels per day from August. LONDON – OPEC+ has agreed a further increase in output targets from August, the group said in a statement on July 5, adding to global supply at a time when oil prices are falling due to the gradual reopening of the Strait of Hormuz for oil exports. The oil-producing group agreed during an online meeting to increase quotas by 188,000 barrels per day from August, on top of similar increases for June and July. Seven core members of OPEC+, which groups OPEC and allied producers, including Russia, have hiked their output quotas from April to July by almost 800,000 barrels per day. Yet the increase has remained largely on paper because of the US-Israeli war on Iran, which closed the Strait of Hormuz for passage of tankers from some of the most important OPEC+ members, including Saudi Arabia, Kuwait and Iraq. OPEC+ output fell to 33.13 million bpd in May, according to OPEC data, from 42.77 million bpd in February. It began to recover in June thanks to US efforts to help the United Arab Emirates (UAE) and other OPEC+ nations export more oil, but it is still below pre-war levels. Despite persisting supply disruptions, oil prices have returned to pre-war levels, pressured by lower Chinese imports, higher exports from non-Middle East producers, and a record global strategic stock release coordinated by the International Energy Agency. “The group of seven kept unwinding their production cuts as widely expected,” UBS analyst Giovanni Staunovo said. “The near-term focus will remain on how many tankers will manage to cross the Strait of Hormuz and how quickly demand and Chinese crude imports recover.” The memorandum of understanding to end the war has also helped convince traders that supply will ultimately return to normal levels. Brent crude prices traded near US$72 per barrel on July 3, down from recent peaks of more than $120 per barrel and back to levels traded just before the US and Israel attacked Iran on Feb 28.

OPEC+ approves further oil output increase as Hormuz exports start to recover
North America
CNBC Economy

Trump pledges rapid U.S. response for Venezuela after historic earthquakes kill dozens

President Donald Trump pledged Wednesday to deploy U.S. resources to earthquake-stricken Venezuela after back-to-back tremors of magnitude 7.2 and 7.5 struck near the country's northern coast, flattening buildings in the capital Caracas and prompting a state of emergency. "The U.S. stands ready, willing, and able to help," Trump said in a Truth Social post Wednesday evening stateside. The president added that he had instructed all government agencies to prepare to "move quickly," calling Venezuela's people the "new and great friends." Deputy Secretary of State Christopher Landau said earlier in the day that the U.S. was in touch with Venezuelan authorities and has been mobilizing assistance for the South American nation. The State Department has already mobilized a disaster assistance team and task force to deliver and coordinate critical assistance to Venezuelans, including search and rescue teams, medical supplies, and humanitarian resources, according to senior State Department official Jeremy Lewin. The U.S. Geological Survey issued two consecutive red alerts through its PAGER system, and estimated a 41% probability that fatalities could exceed 10,000 and a 17% chance they could reach 100,000. The authority also projected that the devastating earthquake could dent Venezuela's GDP by up to 7%. Venezuela's acting president Delcy Rodriguez declared a state of emergency in a national address on Wednesday night, and later said at least 164 people were killed and 971 were injured, according to Reuters. In a video message posted on X Thursday morning, Rodriguez thanked the Trump administration for providing "support and solidarity," and the Dominican Republic for sending rescue teams to Venezuela. China and Brazil have sent humanitarian aid to the country, she said, and the Qatar government has prepared a rescue brigade set to arrive Thursday. The quakes are among the strongest to strike the country in the past century. Venezuela lies in a seismically active zone where the Caribbean Plate meets the South American Plate. The swift U.S. offer of assistance reflects a degree of diplomatic realignment between the Trump administration and the Venezuelan interim government, led by Rodriguez. Washington has exerted control over Venezuela's oil exports after a January military intervention that seized the country's then-president, Nicolas Maduro. The U.S. has remained Venezuela's largest oil buyer since January, with the estimated value of US-controlled exports surging to $3.7 billion in April from $600 million in January, according to the Council on Foreign Relations, estimating $8 billion in flows have moved through the arrangement with little transparency or oversight. India and Spain are the next largest recipients. Get this delivered to your inbox, and more info about our products and services.

Trump pledges rapid U.S. response for Venezuela after historic earthquakes kill dozens
Europe
BBC Business

US blocks long-term renewal of North American trade deal

Image source, Getty ImagesImage caption, US President Donald Trump speaks about the United States - Mexico - Canada agreement, known as USMCA, during a visit to Dana Incorporated, an auto supplier manufacturer, in Warren, Michigan, January 30, 2020. The US has declined to renew the landmark US-Mexico-Canada Agreement (USMCA) in its current form, according to a senior US official. This decision means the trilateral trade pact will miss out on an automatic 16-year extension. The official said the administration "chose not to rubber stamp a USMCA renewal without addressing existing issues," and "the United States did not agree to renew the USMCA in its current form". If the countries fail to unanimously agree to renew the agreement, "it essentially sets a ten year shot lock to termination," per the official. Under the pact guidelines, each country must decide whether to renew the agreement for another 16-year term. While the free trade deal remains in place for now, the lack of a long-term commitment creates fresh economic uncertainty across North America. The agreement, which underpins around $2tn (£1.5tn ) in trade each year, is facing pressure over unresolved disputes. US trade officials are pushing for major changes before committing to a long-term extension. Washington has consistently raised concerns over automotive rules of origin, dairy market access, and stopping third-party countries like China from exploiting the regional agreement. Under the USMCA's original terms, unanimous agreement on an extension would have seen the trade deal kept in place until 2042. The US opting out will force the nations to meet every year to negotiate changes. Business groups across the continent had called for the pact to be extended. The decision also kicks off a ten-year countdown towards the deal expiring as early as 2036. The US Chamber of Commerce had warned that sectors such as manufacturing and agriculture rely heavily on cross-border certainty.

US blocks long-term renewal of North American trade deal
Europe
BBC Business

World Cup dreams shattered as StubHub tickets cancelled at last minute

When Sergio Enrique Alvarado Montalvo paid $1,700 (£1,300) on StubHub to surprise his father with World Cup tickets, he envisioned an unforgettable Father's Day watching Lionel Messi play. Instead, after flying his parents from Mexico to Dallas for the Argentina v Austria match, and spending nearly $6,000 (£4,600) on travel and hotels, the family was left stranded outside the stadium gates. Just one day before they were set to travel to Dallas, StubHub abruptly notified Montalvo that the seller could not deliver the tickets, refusing to provide comparable replacements due to soaring prices. They turned up at the stadium anyway, hoping they could still get their tickets, with Montalvo on the phone to StubHub up until an hour before kick-off. "I was so sad and so frustrated, and so filled with rage, anger," the 45-year-old told the BBC. "It was a mix of feelings that is hard to explain." Montalvo's nightmare is part of what industry insiders are calling one of the largest ticketing collapses in history. As the 2026 World Cup sweeps across 16 cities the US, Canada and Mexico, many fans are finding their bucket lists ruined by last-minute cancellations on secondary marketplaces. The primary culprit is believed to be an industry practice known as "speculative ticketing", where unverified sellers list tickets they do not yet own, hoping to source them cheaper and closer to the event. When ticket prices soar, these sellers simply back out of the deal to resell them for a higher profit, leaving buyers like Montalvo empty-handed with a refund for their tickets that doesn't cover their expensive travel costs. Eben Pingree, 44, from Boston, faced an identical scenario after his wife Caitlin paid $2,800 on StubHub for tickets to the Scotland v Haiti match to surprise their 11-year-old son Cole. They had co-ordinated an extensive trip with another father-son duo, only for the tickets to vanish on match day. "They basically had to just leave us there, and so my son was just devastated," Pingree told the BBC. Back in Dallas, Montalvo and his family spent their match evening at a local fan festival instead of watching from the stands. "It was a super sad weekend... inside, outside... [but] we enjoyed the time together," Montalvo added.

World Cup dreams shattered as StubHub tickets cancelled at last minute
Asia
The Hindu BusinessLine

India seeks safe passage for nine ships as Hormuz truce falters

India is considering diplomatic and operational measures, including possible talks with Iran, to secure safe passage for at least nine laden tankers carrying crude oil and liquefied petroleum gas waiting in the Persian Gulf. India is considering options including holding talks with Iran in order to secure safe passage for at least nine laden tankers waiting in the Persian Gulf, as attacks in the waterway threaten an already fragile interim ceasefire. Prime Minister Narendra Modi’s government is closely monitoring movement of these vessels loaded with crude oil and liquefied petroleum gas, people familiar with the matter said, asking not to be named because the discussions are private. Among other steps, the country’s foreign ministry will contact Iranian authorities over the safety of Indian seafarers in the region, the people said, with hundreds stranded for months since the Strait of Hormuz was effectively closed. That includes the 198 mariners onboard the nine tankers ready to transit through the thoroughfare. India is particularly concerned about crews after at least three Indian seafarers were killed in US strikes on commercial ships in the Gulf of Oman in June, the people said. Officials at the ministries of foreign affairs, oil and shipping didn’t immediately reply to emailed queries. An interim peace agreement between the US and Iran in June temporarily increased transits through Hormuz, but those numbers have slowed to a trickle once again after vessels were attacked on Tuesday and the US struck targets in Iran overnight in retaliation. Underscoring the threat to the existing temporary agreement, US President Donald Trump, speaking at NATO’s annual summit in Ankara, called peace talks “a waste of time.” Still, vessels have continued to transit through the strait on Wednesday — six vessels bound for destinations including India attempted to cross just hours after Tuesday’s strikes. However, at least one India-flagged supertanker, Lila Vadinar, reversed course after reaching the tip of Oman’s Musandam Peninsula, an example of heightened concern among ship operators. Since the war started in late February, only about 50 India-bound vessels have transited the strait, the people said. Shipments remain well below normal because Indian buyers have yet to fully resume imports of crude oil, liquefied petroleum gas and liquefied natural gas from Middle Eastern suppliers. Almost 40% of India’s crude imports, 60% of its LNG shipments and 90% of LPG inflows passed through Hormuz before the war began. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

India seeks safe passage for nine ships as Hormuz truce falters
Europe
The Guardian

US cooking oil market shrinking due to Ice pressures on Latino households, Mazola owner says

Associated British Foods said Hispanic customers typically used cooking oil three times before throwing it away. Photograph: miniseries/GettyView image in fullscreenAssociated British Foods said Hispanic customers typically used cooking oil three times before throwing it away. Photograph: miniseries/GettyFood & drink industryUS cooking oil market shrinking due to Ice pressures on Latino households, Mazola owner saysEconomic squeeze and anti-immigration raids have hit Hispanic communities, prompting people to shop online and reuse oil The US cooking oil market is shrinking and unlikely to improve soon because of economic and immigration enforcement pressures on Latino households, the owner of the Mazola brand has said. George Weston, the chief executive of Associated British Foods (ABF), told City analysts that cooking oil sales had suffered as “our heavy use consumer is that Hispanic population who are under financial pressure, who are under pressure from Ice [Immigration and Customs Enforcement] and are feeling a bit miserable”. Anti-immigration raids championed by Donald Trump have disproportionately affected Latino communities, prompting some consumers to switch to online shopping. Weston said Hispanic customers were also reusing cooking oil more frequently. “Typically that population will be using oils three times before they throw it out, we think it’s gone to four in many cases,” said the boss of ABF, which also owns brands such as Twinings, Kingsmill and the fashion retailer Primark. “We don’t think that that’s going to change into 2027.” Weston also said Stratas Foods, ABF’s US joint venture supplying oils to the food service sector, was being hit by the rapid uptake of appetite-suppressing drugs. “We are undoubtedly seeing the consequences of GLP-1s on foodservice demand, particularly for fried food,” he said. ABF’s overall grocery sales rose 1% in the three months to 20 June, with lower US oils sales offset by growth in brands such as Twinings. The group’s total sales rose 3% to £5.3bn in the quarter with sales at Primark up 3%, once the impact of exchange rate changes was removed, offsetting a 4% slump in sales of sugar and a 14% slump in agricultural supplies led by animal feed. ABF, which is poised to hive off Primark into a separate listed company, pointed to “a challenging consumer environment across most of our markets”. Also under pressure is the UK’s third-largest supermarket, Asda, which revealed this week that it had cut almost 6,000 jobs last year after it sold off the Leon food business and reduced its technology team after largely completing a revamp of its IT systems. The job cuts amounted to about 4% of Asda’s workforce, leaving it standing at almost 137,000 by December last year. They included more than 4,600 roles in stores and in Asda’s distribution and grocery buying arm as well as more than 1,000 head office roles. Asda said most of the job losses did not involve making people redundant but rather were a result of not replacing staff after they had left or after the sale of the Leon restaurants. Others left the payroll after the ending of IT contracts as it began to wind up “project future”, the complex shift away from using systems provided by its former majority owner Walmart, the US retailer.

US cooking oil market shrinking due to Ice pressures on Latino households, Mazola owner says