🗓️ The Daily Ledger - 17 & 18 May 2025

zacharymenzies
May 18
3 min read

Updated: May 20

In this edition of The Daily Ledger, I unpack what a faltering blockbuster drug, shrinking alcohol sales, and looming water shortages all mean for long-term investors. Here are six stories institutional allocators should have on their radar today.

1. Novo Nordisk Fires CEO Amid Profit Warnings and Market Share Losses

What happened: Danish pharma giant Novo Nordisk has removed its CEO following a 50 percent drop in its share price over the past year. The maker of Ozempic has lost market leadership in Europe and is now under pressure due to disappointing next-gen drug trial results and increasing competition from US rival Eli Lilly. The company also cut its profit forecasts last week, blaming the rise of generic knockoffs in the US.

Why it matters: This is a stark reminder of how reliant pharmaceutical companies are on innovation and future pipelines. Investors betting on healthcare defensiveness must still monitor R&D execution closely. Consultants may want to reassess exposure to firms with concentrated product risk or a slowing drug pipeline, and review healthcare allocations more broadly in light of tightening competitive dynamics.

2. Moët Faces Global Sales Crisis Amid Shift in Drinking Habits

What happened: Moët Hennessy is facing a severe crisis, with alcohol sales dropping globally. The luxury drinks company went from generating €1 billion in profit in 2019 to burning through €1.5 billion last year. New executives have stepped in, but the company’s challenges appear tied to a broader decline in alcohol consumption, especially among younger, more health-conscious generations.

Why it matters: A generational shift in lifestyle and spending could reshape consumer staples and luxury portfolios. Investors may need to rethink assumptions around alcohol as a growth category. Consultants might look at reallocating capital from legacy luxury consumption themes into emerging wellness or sober-living alternatives as preferences change.

3. UK Government Considers ISA Cap to Boost Equity Market Flows

What happened: UK ministers are reportedly discussing whether to cut the £20,000 annual cash ISA allowance as part of efforts to encourage more long-term investment. The goal is to nudge savers out of low-yield cash and into equity markets, particularly to revitalise London’s capital markets.

Why it matters: If the government cuts the cash ISA allowance, it could encourage people to move more of their savings into stocks instead of leaving it in low-interest savings accounts. That might give the UK stock market a boost by bringing in more domestic investment.

For investors, this could mean more demand for UK-listed companies, especially smaller ones, and possibly better liquidity and pricing. Consultants may want to watch for any signs that this leads to stronger flows into UK equity funds or platforms targeting retail investors.

4. Water Regulator Seeks £50bn in Investment for UK Infrastructure Projects

What happened:The UK's primary water regulator is actively seeking over £50 billion in private investment to address the nation's growing water scarcity issues. This initiative includes offering revenue guarantees and limiting competition to attract funding for critical infrastructure projects aimed at mitigating the effects of the ongoing drought.

Why it matters: With England facing its driest year this century, water scarcity is emerging as a major infrastructure risk. Investors in real assets may find this pipeline attractive due to the low-risk profile and regulated returns. Consultants may want to explore infrastructure fund allocations focused on water resilience, especially in portfolios targeting inflation protection or ESG outcomes.

5. Japan Passes Landmark Cybersecurity Law

What happened: Japan has introduced a new law that gives the government broader powers to fight cyber attacks, following a record wave of breaches from criminal gangs and state-backed hackers. This move marks a major shift in Japan’s national security and tech policy.

Why it matters: This could accelerate investment in cybersecurity infrastructure and defence technology across Asia. For institutional investors, this opens opportunities in cyber and national security-themed equities. Consultants may want to highlight thematic funds or private equity strategies aligned with growing state-level investment in digital resilience.

6. US Data Centre Industry Warns of Renewable Energy Crackdown

What happened: Leaders in the US data centre sector have raised concerns that the Trump administration’s crackdown on renewables may hurt their ability to scale operations. As data centres consume increasing energy for AI development, access to clean, consistent power is becoming a major constraint.

Why it matters: This could slow AI infrastructure buildouts and add complexity to the global AI arms race. Energy availability is becoming a key bottleneck, not just bandwidth or capital. Consultants may want to revisit risk assumptions in AI infrastructure and evaluate energy strategy exposure in both public and private markets.