This Financial Times News briefing from February 10th features host Sonia Hudson covering major financial and political developments. Key contributors include Patrick Temple West, the FT's US pharmaceutical correspondent, and Josh Franklin, the FT's US banking editor.

The episode covers UK political turmoil affecting bond markets, Novo Nordisk's legal battle over weight loss drug copycats, and proposed reforms to US deposit insurance following the Silicon Valley Bank collapse. Additional stories include the early departure of France's central bank governor ahead of upcoming elections.

UK Political Turmoil Shakes Bond Markets

UK 10-year gilt yields jumped almost 0.1 percentage point Monday morning as investors worried about PM Keir Starmer's political stability following criticism over his appointment of Peter Mandelson as ambassador despite knowing about Mandelson's Jeffrey Epstein connections.

Scottish Labour leader Anna Sarwa called for Starmer to step down, sparking investor concerns that his potential downfall could lead to increased borrowing under a new prime minister.

Cabinet members voiced support for Starmer, calming traders and helping gilts recover some losses, though several Labour MPs told the FT his position remains safe for now with May local elections as a key test.

Novo Nordisk Battles Copycat Weight Loss Drugs

Novo Nordisk sued US telehealth company Hims & Hers for patent infringement, alleging violations of Ozempic and Wegovy patents, causing Hims shares to fall 16% Monday.

"HIMS gave us a statement attacking Novo Nordisk, calling it a Danish company going after Americans who are trying to get weight loss drugs" - Patrick, though Hims backed down over the weekend and stopped selling the disputed weight loss pill.

Novo warned last week that net sales would fall by as much as 13% this year, worse than analyst expectations, due to significant competition from rival Eli Lilly and pricing pressure from Trump administration deals.

The company faces additional pressure after announcing in November that one of its Alzheimer's trials failed to slow disease progression, forcing prioritization of the weight loss space to maintain revenues.

US Deposit Insurance Reform After SVB Collapse

"The Silicon Valley Bank failure was the first one to really take place in a fully digital era. And that meant that money could just move so much faster than it ever had before" - Josh, prompting lawmakers to consider deposit insurance reform.

Proposed legislation would raise deposit insurance from $250,000 to $10 million for business operating accounts, but only at the eight largest US banks including JPMorgan, Bank of America, Wells Fargo, and Citigroup.

The reform aims to level the playing field since large banks benefit from implicit government guarantees as 'too big to fail' institutions, giving them competitive advantages over smaller banks during crises.

Opposition comes from large banks fearing a confusing two-tier system and concerns about funding, as increased coverage would require higher industry premiums with large banks potentially bearing the cost despite not receiving expanded coverage.

French Central Bank Leadership Change

French central bank head François Villeroy de Galhau announced early departure in June, allowing President Macron to name a replacement before next spring's presidential election.

The timing is notable given Macron cannot run again and far-right parties are polling ahead of left and center parties, with one analyst suggesting the decision reflects concerns that 'monetary policy independence seems to be in question.'