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A funding freeze rattles U.S. food programs, a new deal slashes prices for blockbuster weight-loss drugs, and Germany rethinks its trade ties with China.

Markets brace for change as policy winds shift and climate talks heat up. Here’s what you need to know this week.

The Supreme Court allowed the administration to pause $4 billion in Supplemental Nutrition Assistance Program funding after a lower-court order had mandated full November payments.

The decision affects roughly 42 million Americans and adds pressure to states already strained by the federal shutdown. Legal challenges are ongoing.

Why it matters: Millions could see delayed or reduced benefits, highlighting the fragility of social safety programs under fiscal stress.

Eli Lilly and Novo Nordisk agreed to cut prices on popular GLP-1 medications after weeks of negotiations with federal officials.

The agreement will drop costs for Medicare and Medicaid patients to about $245 a month and to $149 for new oral treatments.

Analysts say lower pricing could expand access but may squeeze profits.

Why it matters: It signals stronger federal leverage over drug pricing and could redefine affordability in chronic-disease care.

Germany announced plans to review “security-relevant” trade ties with China, including energy, raw materials, and infrastructure, forming a parliamentary advisory panel.

The initiative comes as Berlin seeks to reduce industrial dependence and respond to Beijing’s export restrictions.

Why it matters: Europe’s largest economy is repositioning from open-market reliance to strategic competition, with potential ripple effects across global supply chains.

Markets posted strong equity inflows even as central-bank rate-cut cycles near their end. Analysts say risk appetite remains high, though valuations appear stretched and volatility could rise as policy support fades.

Why it matters: Investors are testing how resilient markets can remain without easy-money tailwinds.

World leaders at COP30 in Brazil warned of widening gaps between pledges and outcomes as extreme weather intensifies. New funding from major foundations aims to boost resilience for farmers in Africa and Asia.

Why it matters: The focus of climate policy is shifting from prevention to adaptation amid escalating global losses.

Senate negotiators moved closer to a stopgap funding measure that could reopen shuttered federal agencies. Discussions continue through the weekend.

Why to watch: A deal—or failure—will directly affect benefits, flights, and financial markets.

After Germany’s announcement, other European Union members may revisit economic exposure to China. Officials say coordinated policy is likely to emerge in early 2026.

Key question: Can Europe balance security and competitiveness without triggering retaliation?

The new federal agreement on obesity treatments could spur similar deals across therapeutic categories. Health-policy experts warn of complex implementation ahead as Medicare and insurers adjust coverage.

Why it matters: The outcome could shape how U.S. regulators manage future price negotiations in high-demand drugs.

This week captured a global pivot from crisis response to structural change.

U.S. courts are redrawing fiscal boundaries; pharmaceutical giants are adjusting to negotiated pricing; and Europe is redefining its trade model.

The unifying theme is institutional adaptation—governments and markets moving from short-term stabilization to long-term repositioning.

For businesses and investors, agility amid policy flux will be decisive.

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—The Five Minute Daily Team