Overview of Epstein Fallout Continues to Ripple Out
This AM edition of The Wall Street Journal's "What's News" (hosted by Luke Vargas) covers a set of global headlines with an emphasis on political fallout from the Epstein Files in the U.K. The episode ties that story into broader developments in markets, geopolitics, public health and space exploration.
Top headlines — quick summary
- U.K. political fallout from revelations in the Epstein Files: Keir Starmer’s chief of staff resigned after involvement in appointing Peter Mandelson as ambassador to the U.S., creating a political crisis for the prime minister.
- Japan’s benchmark stock index hit a record after the prime minister won a strong mandate in snap elections, giving the government more power to enact its agenda.
- Novo Nordisk and Eli Lilly benefit as telehealth company Hims & Hers abandons plans to offer a compounded knockoff of the popular GLP‑1 obesity drug Wegovy, after an FDA threat to restrict access to compounding ingredients.
- SpaceX postponed a planned Mars mission for this year and will instead target an uncrewed lunar landing in March 2027 using Starship; the company is also pursuing in‑space AI data‑center ambitions.
- Hong Kong media tycoon Jimmy Lai was sentenced to 20 years in prison on charges tied to speech and sedition, intensifying U.S.–China friction.
- Iran threatened missile strikes on U.S. and allied bases if the U.S. attacks Iran; indirect U.S.–Iran talks in Oman aimed to avert conflict.
- U.S. measles outbreaks continue (733 cases so far this year); Dr. Mehmet Oz urged Americans to vaccinate.
- U.S. investors remain cautious ahead of key data (including the delayed January jobs report) as AI-related efficiency gains raise questions about the labor market.
Epstein Files & U.K. politics — what happened and why it matters
- The immediate consequence: Keir Starmer’s chief of staff (Morgan McSweeney) resigned after acknowledging he advised on appointing Peter Mandelson—an Epstein acquaintance—as ambassador to the U.S.
- Political stakes: The revelation created a “firestorm” that damaged Starmer’s standing and contributed to a drop in his popularity. Some Labour lawmakers are discussing leadership options.
- Institutional note: If Starmer resigned, the Labour Party would remain in power; the change would be a leadership replacement within the ruling party.
- Market impact: Investors pushed up government borrowing costs amid concerns a new, more left‑wing leader could pursue greater fiscal spending.
Notable commentary:
- Max Colchester (WSJ) framed the episode as a high-pressure moment for Starmer, with no clear frontrunner to replace him immediately — a factor keeping him in office for now.
Markets & business highlights
- Japan: The benchmark Nikkei hit a record after the prime minister secured a decisive electoral mandate, giving the lower house a supermajority and the ability to press policy through.
- GLP‑1 market dynamics:
- Hims & Hers scrapped plans to offer a compounded version of Wegovy after the FDA threatened to restrict necessary compounding ingredients.
- Novo Nordisk (maker of Wegovy) and Eli Lilly saw relief as the move reduces near‑term pricing/competition pressure. Hims & Hers stock fell ~15% in off‑hours trading.
- A Denmark‑based equity analyst (quoted in the episode) said the decision is a tailwind for innovation-focused firms that invested heavily in GLP‑1 development.
- U.S. equities: Futures pointed to a muted open as investors awaited several key data releases, including the delayed January jobs report; AI-driven productivity gains are feeding uncertainty in labor markets.
International & geopolitics
- Hong Kong: Jimmy Lai, pro-democracy media publisher, received a 20‑year sentence for convictions tied to speech and sedition; WSJ coverage frames this as a severe, politically charged punishment that raises human‑rights tensions with China.
- Iran: Iranian Foreign Minister Abbas Araghchi warned of missile attacks on U.S. bases and allies if the U.S. orders an attack; the U.S. and Iran held indirect talks in Oman to avert escalation. The Pentagon repositioned missile defense assets in the region. President Trump (as referenced in the episode) was expected to meet Israeli PM Netanyahu to discuss Iran.
Health
- Measles: Dr. Mehmet Oz encouraged vaccination amid outbreaks across about 20 states. CDC reports 733 U.S. cases so far this year; ~95% of cases are in people unvaccinated or with unknown vaccination status. The Pan American Health Organization will consider in April whether the U.S. still meets “measles‑free” criteria.
Space & technology
- SpaceX: Delayed its planned Mars mission for the year and refocused on a March 2027 uncrewed lunar landing using the Starship rocket. The company continues to leverage NASA funding for Starship development and is pursuing plans for space‑based AI data centers after acquiring XAI.
Notable quotes from the episode
- On the Epstein fallout and Starmer: “This has turned into a political firestorm for Starmer, who now desperately [is] trying to put it out by getting rid of his most trusted aide.” — Max Colchester, WSJ.
- On measles: “Take the vaccine, please. We have a solution for a problem.” — Dr. Mehmet Oz on CNN’s State of the Union.
Action items & resources
- If you’re interested in contributing to WSJ’s reporting on the labor market (they asked listeners for input): email wnpod@wsj.com or leave a voicemail at 212‑416‑4328; include your full name and location.
- Subscribe to WSJ for more in‑depth reporting: subscribe.wsj.com/thejournal
Main takeaways
- The Epstein Files continue to have concrete political consequences in the U.K., costing a top aide his job and raising new questions about Labour leadership and market reactions.
- The GLP‑1 (weight‑loss drug) market remains a major market story: regulatory pressure on compounded alternatives is protecting incumbents (Novo Nordisk, Eli Lilly) for now.
- Geopolitical tensions (China/Hong Kong, Iran) and public‑health concerns (measles) are prominent alongside slower‑moving macroeconomic anxieties tied to AI’s impact on labor and incoming economic data.
- SpaceX’s priorities shifted from Mars to the Moon, signaling a tactical rethink in the near term while maintaining long‑term ambitions.