

The dollar's decline pushed EUR/USD to 1.1429 as markets weighed inflation risks from surging energy costs against slowing growth. The dollar extended its decline Thursday, lifting EUR/USD to 1.1429 as traders assessed competing pressures from rising energy-driven inflation and weakening economic data ahead of the Federal Reserve's policy meeting. The euro climbed to a one-week high, with the single currency gaining as the dollar index slid for a second consecutive session, according to market data. Oil prices rallied, adding to inflation concerns that have complicated the Fed's policy calculus, while the yen and franc fell sharply against the dollar. The divergent moves across major currencies reflect how central banks face competing priorities between price stability and growth support. The euro's advance also comes ahead of the European Central Bank's policy decision, adding another variable to the currency outlook. A more hawkish ECB outcome could reinforce the euro's gains, while a dovish stance might cap the pair's upside. The last time oil prices pushed inflation expectations this high while growth data softened, the dollar traded in a similar range before the Fed indicated patience on rate moves, a pattern that preceded a multi-week dollar decline. That historical parallel is now drawing attention as traders position for the Fed's upcoming meeting, where the central bank will update its assessment of the economy and the rate path. The combination of elevated energy costs and softening activity data creates a challenging backdrop for the Fed's communication strategy. The dollar's trajectory hinges on the Fed's messaging at that meeting. If policymakers signal tolerance for above-target inflation driven by energy costs, the dollar could face further downside, extending EUR/USD's recovery above 1.14. A hawkish hold emphasizing inflation risks would likely reverse the move, pushing the pair back toward recent lows. Markets are pricing a wide range of outcomes for the rate path, with the next Fed decision serving as the critical inflection point for the currency pair and broader dollar-denominated assets. For equity markets, a weaker dollar typically supports multinational earnings and emerging-market assets, while a hawkish Fed stance could reignite pressure on risk assets. Currency-hedged investors are watching the dollar's direction closely, as sustained weakness would shift the return calculus for international portfolios. This article is for informational purposes only and does not constitute investment advice.

Eli Lilly & Co.'s experimental triple-agonist retatrutide met primary endpoints in two Phase 3 obesity trials, delivering weight loss of as much as 22.6% in patients with severe obesity and cardiovascular disease and 20.8% in those with type 2 diabetes. "Across five positive Phase 3 studies, retatrutide has shown powerful efficacy, and we believe it could be an important future tool in the management of cardiometabolic health," Kenneth Custer, executive vice president and president of Lilly Cardiometabolic Health, said in a statement. In TRIUMPH-2, which enrolled 1,152 adults with obesity or overweight and type 2 diabetes, patients on the highest 12-milligram weekly dose lost an average of 49.6 pounds, or 20.8% of body weight, over 80 weeks, compared with 9.3 pounds, or 4%, for placebo. The same dose reduced A1C by 1.5 percentage points from a baseline of 7.7%. In TRIUMPH-3, which studied 1,949 adults with severe obesity — a baseline BMI of 40.4 — and established cardiovascular disease, the 12-milligram dose produced average weight loss of 55.8 pounds, or 22.6%, versus 7.7 pounds, or 3.2%, for placebo. The results complete a five-study Phase 3 package that positions retatrutide as a potential successor to Lilly's blockbuster Zepbound (tirzepatide), which targets two metabolic hormones. Retatrutide activates receptors for GIP, GLP-1 and glucagon — a triple mechanism that has produced the highest weight-loss efficacy seen in the class. Lilly plans to submit a biologics license application to the US Food and Drug Administration in the first quarter of 2027, with additional submissions globally. **Safety and cardiovascular data** Gastrointestinal side effects were the most common adverse events across both trials, consistent with the GLP-1 drug class. In TRIUMPH-2, diarrhea occurred in 33.6% of patients on the 12-milligram dose versus 13.2% on placebo, nausea in 28% versus 8%, and vomiting in 15.7% versus 4.2%. Discontinuation rates due to adverse events reached 11.6% on the 9-milligram dose and 7.7% on 12 milligrams, compared with 4.9% for placebo. In TRIUMPH-3, major adverse cardiovascular events occurred less frequently than anticipated in both arms. In a pre-specified analysis, the hazard ratio for MACE-5 — a composite of all-cause death, heart attack, stroke, heart failure event or coronary revascularization — was 0.82 (95% confidence interval: 0.55 to 1.22) for retatrutide versus placebo. However, the narrower MACE-3 composite of cardiovascular death, heart attack and stroke showed a hazard ratio of 1.12 (95% CI: 0.64 to 1.96), meaning patients on retatrutide had a 12% higher risk of those three events, though the result was not statistically significant. The drug did meaningfully reduce several cardiovascular risk factors: triglycerides fell 37%, non-HDL cholesterol dropped 16.5%, systolic blood pressure declined 9.3 millimeters of mercury, and high-sensitivity C-reactive protein, a marker of inflammation, decreased 51.2%. **Market implications** The data package gives Lilly a potential competitive edge over Novo Nordisk A/S, whose Wegovy (semaglutide) targets only GLP-1 and whose experimental CagriSema has shown weight loss in the 15% to 23% range depending on the patient population. Retatrutide's 22.6% result in severe obesity with comorbidities — a notoriously difficult-to-treat group — suggests the triple agonist could capture a meaningful share of the obesity market, which analysts project will exceed $100 billion in annual sales by the end of the decade. Investors will watch for the FDA's acceptance of the BLA filing in early 2027 and any label expansions for obstructive sleep apnea and knee osteoarthritis pain, where retatrutide has also shown positive Phase 3 results. This article is for informational purposes only and does not constitute investment advice.

Mobileye Global Inc. founder Amnon Shashua plans to step down as chief executive officer once a successor is appointed, ending a 27-year run that transformed computer vision research into one of the world's most widely deployed autonomous driving platforms. The Jerusalem-based company's shares rose 8% in premarket trading on the news. "The company continues to grow and mature, I believe this is the right moment to establish the leadership structure that will be best suited for Mobileye's next chapter," Shashua, 63, said in a statement. He will remain a director and has been offered the role of chairman, focusing on long-term technology trends and the company's humanoid robotics business. Mobileye reported second-quarter revenue of $508 million, topping the $481.24 million average analyst estimate compiled by LSEG. The company cited strong momentum in its core advanced driver-assistance systems business as it prepares for several product launches scheduled for late 2026 and throughout 2027. Intel Corp., which owns about 77% of Mobileye, said it remains "bullish on Mobileye and its trajectory." The transition marks a generational shift at a company that has deployed its EyeQ technology in more than 250 million vehicles across 1,400 models worldwide. Shashua, who holds the Sachs Chair in Computer Science at Hebrew University, was elected to the U.S. National Academy of Engineering this year and made the TIME100 AI list in 2025. The board has hired an executive search firm to find his replacement, with Chairman Safroadu Yeboah-Amankwah saying the company is "focused on selecting the right leader who will help us deliver our next phase of growth." **A Founder's Legacy and a Robotics Bet** Shashua founded Mobileye in 1999, applying computer vision to automotive safety years before the term "autonomous driving" entered the mainstream. The company went public in 2014 in what was then the largest Israeli initial public offering, was acquired by Intel for about $15.3 billion in 2017, and was relisted in 2022. Earlier this year, Mobileye acquired Mentee Robotics to enter the humanoid robotics space, which Shashua described as "the future of Physical AI." The CEO search comes as Mobileye navigates a transition from its core driver-assistance business — which generates the bulk of its revenue — toward higher-level autonomous systems and robotics. The company's Imaging Radar and Compound AI platforms are central to that push, with production timelines tied to the 2026-2027 product cycle. Mobileye competes directly with Nvidia Corp.'s Drive platform and Qualcomm Inc.'s Snapdragon Ride portfolio in the race to supply automakers with production-ready autonomous driving systems, a market that consulting firm McKinsey estimates could be worth $400 billion by 2035. **What's at Stake for Investors** Mobileye trades as a standalone entity under Intel's majority ownership, giving investors a pure-play bet on autonomous driving technology without direct exposure to Intel's foundry challenges. The stock's 8% premarket gain suggests the market views the leadership transition as an orderly evolution rather than a disruption. Still, founder-led companies face heightened scrutiny during CEO successions, and the board's choice of successor will signal whether Mobileye prioritizes continuity in its automotive business or accelerates its robotics ambitions. Intel CFO David Zinsner said the chipmaker "continues to be bullish on Mobileye and its trajectory," providing a backstop of support from its largest shareholder. The company's next major product launches — including its next-generation EyeQ chip family and Imaging Radar systems — are expected in late 2026 and 2027, making the CEO appointment a critical decision for the timing of Mobileye's next growth phase. This article is for informational purposes only and does not constitute investment advice.