Political news can either positively influence the markets or spark panic. So far, we’ve seen a generally optimistic atmosphere in the markets following Donald Trump’s election, but there’s a corner of the market that begs to differ.

I’m referring, of course, to the panic that has gripped major pharmaceutical companies and food industry players due to Robert F. Kennedy Jr. (RFK Jr.).

And because you’re probably wondering what I’m talking about, let’s break it down.

WHAT HAPPENED?

So, a few days ago, it was announced that Robert F. Kennedy Jr. might be a candidate for the position of U.S. Secretary of Health and Human Services (HHS). This caused quite a stir in the markets, leading to a sudden sell-off in major pharmaceutical companies like Pfizer, as well as in food-related companies such as Pepsi.

Why such a reaction to RFK, though? Well, Robert F. Kennedy Jr. is known for his anti-vaccine stance and has strongly advocated for radical changes to the FDA—the organization responsible for approving drugs and food in the U.S. He’s even publicly stated his intent to downsize the agency, which could slow the approval process for new drugs.

And, of course, delayed drug approvals don’t sit well with pharmaceutical companies, which rely on quick approvals to maintain profitability.

Okay, but what about the food industry?

Fair question. RFK recently took to social media to criticize Novo Nordisk’s well-known drug Ozempic, often used to treat obesity. He argued that drugs are just a temporary fix and that the real enemy of obesity is diet.

As a staunch advocate of healthy eating, his statement sparked fears of potential regulations or changes in the food industry, making investors nervous.

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So there you have it—a mix of market optimism on one hand and industry-specific panic on the other, all thanks to one man and the potential changes he could bring.

More Things to have in mind this week USA

Although the Fed has no scheduled announcements this week, investors will closely monitor unemployment data and home sales for clues about future interest rate policy.

Canada

October's inflation data will be in the spotlight as the central bank forecasts potential rate cuts ahead.

Eurozone

Key market indicators from France, Germany, and the broader Eurozone will provide insight into economic activity, while political uncertainty in Germany adds to potential risks.

UK

Inflation figures and retail sales data will shed light on Q4 consumption trends, offering valuable signals for the economy.

China

The focus will be on loan prime rates and the trajectory of the yuan, as markets await the upcoming Central Economic Work Conference for policy directions.

Japan

The Bank of Japan governor’s speech and inflation data could shape expectations for future rate hikes.

Australia & New Zealand
The Reserve Bank of Australia is set to provide guidance on interest rate policy, with markets anticipating possible future rate cuts.

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