WEBVTT - Musk Turns to Tesla and SpaceX to Fuel AI Ambitions 

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<v Speaker 1>us live on YouTube.

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<v Speaker 2>Tesla shares they are higher this morning. They're up about

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<v Speaker 2>three tens of percent, but there were some news. Elon

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<v Speaker 2>Musk said the company plans to pull Tesla's shareholders on

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<v Speaker 2>whether to invest in his other company, that's x Ai.

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<v Speaker 2>So here to break it all down for us is

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<v Speaker 2>Craig Trudeli's Bloomberg Global Auto editor.

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<v Speaker 3>Craig I have to.

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<v Speaker 2>Ask you, you know, this is something that came out. I mean,

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<v Speaker 2>what kind of message is this sending.

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<v Speaker 3>It's sending that, you know, Elon's Elon's business empire is

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<v Speaker 3>becoming all the more intertwined. So this has been, you know,

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<v Speaker 3>sort of a case on and off for years. We

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<v Speaker 3>can think back to say, you know, the Tesla Solar

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<v Speaker 3>City acquisition, you know, and that's going back quite a

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<v Speaker 3>way is but uh, you know, in this case it

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<v Speaker 3>would be Tesla, you know, his most valuable company in

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<v Speaker 3>investing in in sort of his up and comer and

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<v Speaker 3>one where he's you know, spent an awful lot of

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<v Speaker 3>time and energy focused on. Lately, as Tesla's electric vehicle

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<v Speaker 3>sales have been slowing, he's been really sort of dead

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<v Speaker 3>set on taking on open Open AI and and sort

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<v Speaker 3>of standing up a competitor to chat GPT and as

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<v Speaker 3>with all the companies in the space, spending an awful

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<v Speaker 3>lot of money to to try and compete in that realm.

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<v Speaker 4>So where do we stand here in terms of kind

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<v Speaker 4>of how investors are viewing their investment in Tesla. Are

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<v Speaker 4>they invested in a auto company or are they invested

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<v Speaker 4>in an AI company? Or they invested just an Elon Inc?

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<v Speaker 4>How did they think about it these days?

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<v Speaker 3>Yeah? I mean, I think Musk has has been trying

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<v Speaker 3>for for several years now to to sell uh and

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<v Speaker 3>and position Tesla as much more than just a car company, right,

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<v Speaker 3>and uh, you know it's it's definitely in in the

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<v Speaker 3>energy space and and uh you know has a battery

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<v Speaker 3>business to to show for that, and in in AI.

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<v Speaker 3>You know, he's he's talked a big game about uh,

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<v Speaker 3>you know, developing self driving technology. He's not he's not

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<v Speaker 3>gotten there yet. Uh as as we've seen with the company,

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<v Speaker 3>you know, starting to offer rides in in Tesla's around Austin, Texas. Uh,

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<v Speaker 3>they still have uh you know, Tesla employees in the

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<v Speaker 3>front passenger seat to sort of take over in events

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<v Speaker 3>where you know, the cars have not been able to

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<v Speaker 3>handle uh, you know, navigating the streets on their own.

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<v Speaker 3>And and yet with with uh SpaceX, I think interest interestingly,

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<v Speaker 3>you know, for them to have just pumped two billion

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<v Speaker 3>into h x AI, I think there's a little bit

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<v Speaker 3>of fomo on the part of of some the Tesla

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<v Speaker 3>shareholder base where they've seen you know, XAI go from

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<v Speaker 3>you know, not all that valuable a startup to suddenly,

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<v Speaker 3>you know, an extremely valuable startup and they feel like

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<v Speaker 3>they've missed out on some of this appreciation and one

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<v Speaker 3>in on that.

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<v Speaker 2>So with all that said, Craig, I mean, does must

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<v Speaker 2>support a merger between x AI and Tesla or maybe

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<v Speaker 2>x a hind SpaceX you mentioned space X two.

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<v Speaker 3>He says he does not. And and I think there's

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<v Speaker 3>been talk about this for years, right that, you know,

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<v Speaker 3>and on and off again there's been you know, questions

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<v Speaker 3>as to whether or not Musk is you know, sort

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<v Speaker 3>of stretched too thin and doing too much. Would it

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<v Speaker 3>make more sense to turn his companies into into one

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<v Speaker 3>and and sort of you know, sort of the think

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<v Speaker 3>about it as sort of the general Electric of the

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<v Speaker 3>New age, right, which is kind of fascinating because of

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<v Speaker 3>course that didn't work out too well for ge. And

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<v Speaker 3>and yet you know, even some of Musk's own out

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<v Speaker 3>have sort of alluded to, you know, it's viewing him

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<v Speaker 3>and his empire as as sort of you know, modern

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<v Speaker 3>day general Electric. So he he did take pains to

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<v Speaker 3>say on an x that he does not support a

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<v Speaker 3>full blown merger of Tesla and x Ai, but he

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<v Speaker 3>has you know, signals on there multiple times now that

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<v Speaker 3>he would be in favor of of Tesla putting money

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<v Speaker 3>in and you know that's that's, of course, you know,

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<v Speaker 3>a proposition that could be helpful if Xai continues to

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<v Speaker 3>grow its valuation. We should note, however, that our colleagues

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<v Speaker 3>have reported just in the last month or so that

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<v Speaker 3>x Ai has been burning through about a billion dollars

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<v Speaker 3>a month. So this is a company that is really

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<v Speaker 3>sort of cash hungry and needy as it's trying to

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<v Speaker 3>stand up a business. You know, with all of this capability.

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<v Speaker 4>Yeah, and Craig, it's been I don't know a month

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<v Speaker 4>or two since Elon Musk left the US government, doje

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<v Speaker 4>is there any evidence that he is meaningfully engaging with Tesla?

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<v Speaker 3>You know, I think he's messaging more about, you know,

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<v Speaker 3>sort of what Tesla's up to than he was while

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<v Speaker 3>he was in Washington. He did also post just within

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<v Speaker 3>the last day that you know, he was in Tesla's

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<v Speaker 3>design studio and sort of hyped up how excited he

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<v Speaker 3>was about what he saw. But you know, the company

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<v Speaker 3>is is, you know, sort of in this really sort

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<v Speaker 3>of challenging state from a sales perspective, and you've you've

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<v Speaker 3>sort of gotten indications that, well, maybe he doesn't necessarily

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<v Speaker 3>fully have his his finger on the pulse in the

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<v Speaker 3>sense that he told us just within the last few

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<v Speaker 3>months that sales have turned around. You know, a couple

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<v Speaker 3>of months later, the company reports that its vehicle deliveries

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<v Speaker 3>had fallen thirteen percent in the second quarter. So either

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<v Speaker 3>he was you know, not necessarily up to speed on

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<v Speaker 3>the state of sales, or perhaps he was optimist more

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<v Speaker 3>optimal stick that they were able to is going to

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<v Speaker 3>be able to turn things around. Then they ultimately were

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<v Speaker 3>able to last quarter.

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<v Speaker 5>Okay, Greg, thanks so much for your reporting. Appreciate it.

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<v Speaker 4>Kraig Trudeau is a Global autos editor for Bloomberg News.

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<v Speaker 4>He's based in London, joining us via zoom.

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<v Speaker 1>Here you're listening to the Bloomberg Intelligence podcast. Catch us

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<v Speaker 2>This is Bloomberg Intelligence. I'm Lisa Minteo alongside Paul Sweeney. Paul, So,

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<v Speaker 2>summer barbecue. You think hot dogs, right, Robert? Okay, what's

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<v Speaker 2>your favorite?

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<v Speaker 5>What's you go to? Hot dog? Oscar myern the question,

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<v Speaker 5>Oh yes, okay.

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<v Speaker 2>See I'm a Brooklyn girl.

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<v Speaker 5>I go Nathan's.

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<v Speaker 2>But okay, that's title said. There are some big news

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<v Speaker 2>when it comes to your barbecue. So a company may

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<v Speaker 2>be splitting up sources in craft hends, could break itself up,

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<v Speaker 2>spin off into this large part of the business, into

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<v Speaker 2>this new entity.

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<v Speaker 5>What is this all about?

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<v Speaker 2>Let's bring it someone who knows about it. Jennifer bartash

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<v Speaker 2>More Intelligence senior analysts Retail staples and package food Jennifer.

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<v Speaker 2>I know it's sources are saying a lot of things.

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<v Speaker 2>What's the latest that you're hearing about this breakup?

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<v Speaker 6>Yeah, good morning. So this is an interesting breakup because

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<v Speaker 6>it's ten years after they merge together, and it seems

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<v Speaker 6>that the main portions of that initial merger are going

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<v Speaker 6>there will go their separate ways. The way we look

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<v Speaker 6>at it, it looks like there's a core group of

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<v Speaker 6>what they consider their taste Elevation platform, which is what

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<v Speaker 6>is in the seasonings Taste Elevation.

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<v Speaker 4>Oh please, that's Gott mackenzie written all over. It has

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<v Speaker 4>that spices and Condiments.

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<v Speaker 6>That's Spices inc. Yeah, exactly, and then they have you know,

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<v Speaker 6>that's kind of been their growth area for the last

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<v Speaker 6>couple of years. So we think that that's really going

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<v Speaker 6>to be what will be the residual part of Heinz.

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<v Speaker 6>And then there is it's undetermined yet exactly what'll go

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<v Speaker 6>into the rest of the business, but it'll be largely

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<v Speaker 6>those grocery categories where they've invested a lot to try

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<v Speaker 6>to revitalize brands and it just hasn't worked in terms

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<v Speaker 6>of really rejuvenating sales.

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<v Speaker 4>You know, when I think about brands in the shop,

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<v Speaker 4>you know, going to the supermarket. Boy, those house brands

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<v Speaker 4>private label. Talk to us about the growth of private

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<v Speaker 4>label in general, Boy, and if you're a brand like

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<v Speaker 4>an Oscar Meyer or something that you spent jillions of

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<v Speaker 4>dollars over one hundred years, it seems to kind of

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<v Speaker 4>go by the wayside almost.

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<v Speaker 6>It's true. You've got a good point, Paul. Private label

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<v Speaker 6>has been consistently growing and got a huge bump since

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<v Speaker 6>the pandemic. And part of that is that they've the

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<v Speaker 6>retailers have really invested in the quality and the the

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<v Speaker 6>differentiation of those private label brands, so where consumers now

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<v Speaker 6>really consider them not just a replacement for national brands,

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<v Speaker 6>but in some instances just regular brands of their own right.

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<v Speaker 6>And so you know, Craft Times actually had reduced some

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<v Speaker 6>of its exposure to private label when they sold off

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<v Speaker 6>the planter's business, when they sold off the cheese like

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<v Speaker 6>the shredded cheese business with Craft, but the core grocery

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<v Speaker 6>business they do still have a lot of exposure to

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<v Speaker 6>private label.

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<v Speaker 2>So is this a lot of competition from let's say,

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<v Speaker 2>startup food companies appealing to younger consumers? I mean, what

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<v Speaker 2>kind of sparked this.

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<v Speaker 6>Well, there's really been a shift in the way consumers

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<v Speaker 6>are looking at brands. Unless you own a long legacy

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<v Speaker 6>brand that you can reinvent and really you know, drive

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<v Speaker 6>interest from younger generations, it's really hard to keep that going.

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<v Speaker 6>And so what we've seen is that they've done a

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<v Speaker 6>good job with revitalizing things like Philly Cream cheese. But

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<v Speaker 6>despite a lot of investment, brands like Caprice, son Oscar Meyer, Maxwellhouse,

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<v Speaker 6>you know, these brands just aren't resonating with younger consumers,

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<v Speaker 6>and that means that the growth prospects for those brands

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<v Speaker 6>are a lot lower, and that makes it hard to

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<v Speaker 6>really build yourself as a growth type oriented company.

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<v Speaker 4>So I know, as I think back to my M

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<v Speaker 4>and A Memory Banks ten years ago, Crafton Hines Berkshire

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<v Speaker 4>Hathaway had a big hand in putting these two companies together,

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<v Speaker 4>and look now they're still the largest shareholder with just

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<v Speaker 4>under twenty eight percent of the stock. I assume Berkshire

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<v Speaker 4>Hathaway Warren Buffet has kind of signed off on this

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<v Speaker 4>deal or is open to it.

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<v Speaker 6>At least I would assume that they're open to it,

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<v Speaker 6>you know, I mean over time, you know, Berkshire Hathway

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<v Speaker 6>has actually done quite well out of this deal, even

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<v Speaker 6>though Kraft, heindes as an overall entity, is probably disappointed

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<v Speaker 6>in the overall analysis. But you know, the merger was

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<v Speaker 6>in twenty fifteen. It's been ten ten years. The value

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<v Speaker 6>of the deal at the time in twenty fifteen was

0:10:31.760 --> 0:10:34.600
<v Speaker 6>forty five billion dollars. Today's market cap it's thirty two

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<v Speaker 6>billion dollars, so it you know, and yes they've sold

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<v Speaker 6>off a couple of brands, but it just hasn't materialized

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<v Speaker 6>to be the type of growth that I think Berkshire

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<v Speaker 6>Hathway and initially envisioned it would happen.

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<v Speaker 2>Tenfer can you dig more into some of the advantages

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<v Speaker 2>but also the risks associated with breaking up the company.

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<v Speaker 6>Some you know, obviously some of the advantages. And this

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<v Speaker 6>seems very similar to what Kellogg did when they spun

0:10:57.840 --> 0:11:01.360
<v Speaker 6>Kelenova and W. K. Kellogg out into two separate companies.

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<v Speaker 6>They separated the growth prospects and then those from the

0:11:05.960 --> 0:11:09.520
<v Speaker 6>slow growth areas. That's very similar to what Kraft Time

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<v Speaker 6>seems Craft Time seems to be doing. Obviously, if you

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<v Speaker 6>can focus on growth areas, that gives you undivided attention

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<v Speaker 6>to really expand and grow. That would be an advantage,

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<v Speaker 6>I think one of the disadvantages, And this is something

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<v Speaker 6>that's kind of a broader question to consider, is you know,

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<v Speaker 6>whether there's a cycle that's starting because we've seen companies

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<v Speaker 6>like Kelenova split, we see Unilevers spinning off their ice

0:11:34.840 --> 0:11:39.040
<v Speaker 6>cream business, and those new entities are now being bought

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<v Speaker 6>up by others. So you've got Mars acquiring Kelenova, you

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<v Speaker 6>have Ferrero acquiring W. K. Kellogg. But those in order

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<v Speaker 6>to get regulatory approval, you have to have categories that

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<v Speaker 6>aren't overlapping. And so you're you're you're seeing a new

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<v Speaker 6>birth of new kind of conglomerates, of dissimilar portfolios. And

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<v Speaker 6>so it makes me wonder if we're setting up another

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<v Speaker 6>cycle where in another five years, ten years, we're going

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<v Speaker 6>to see these companies that have been buying up the

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<v Speaker 6>underperforming brands going through a similar type of activity.

0:12:11.320 --> 0:12:12.280
<v Speaker 5>What's driving all this?

0:12:12.360 --> 0:12:15.679
<v Speaker 4>It doesn't it feel like this MNA activity, whether you're

0:12:15.720 --> 0:12:18.280
<v Speaker 4>buying or divesting, is out of a position of strength.

0:12:18.280 --> 0:12:21.360
<v Speaker 4>It always feels like I don't know, I'm just I'm

0:12:21.400 --> 0:12:24.360
<v Speaker 4>doing it because anami growth. Then I got to do something.

0:12:24.400 --> 0:12:26.839
<v Speaker 4>I got pressure from shareholders to do something. So I'm

0:12:26.840 --> 0:12:30.280
<v Speaker 4>either buying or selling because your business doesn't have a

0:12:30.320 --> 0:12:30.960
<v Speaker 4>lot of growth.

0:12:31.640 --> 0:12:33.520
<v Speaker 6>No, it's true, Paul, and I think one of the

0:12:34.400 --> 0:12:36.600
<v Speaker 6>crises that we've sort of seen in packaged food at

0:12:36.640 --> 0:12:39.800
<v Speaker 6>least is the North American companies is a lack of real,

0:12:39.920 --> 0:12:43.760
<v Speaker 6>true innovation. So what's happened is a lot of companies

0:12:44.000 --> 0:12:46.760
<v Speaker 6>have fallen into his pattern of innovation being a new

0:12:46.800 --> 0:12:50.400
<v Speaker 6>flavor or a new extension, a new size of the product,

0:12:51.080 --> 0:12:54.800
<v Speaker 6>and that's not really what gets consumers excited. You need

0:12:54.840 --> 0:12:57.680
<v Speaker 6>to bring new and different products to market, and that's

0:12:57.679 --> 0:13:01.560
<v Speaker 6>an expensive endeavor and companies have sort of shied away

0:13:01.559 --> 0:13:05.360
<v Speaker 6>from that. And although they're trying to reinvigorate that innovation pipeline,

0:13:05.480 --> 0:13:08.319
<v Speaker 6>we just haven't seen a lot of home runs coming

0:13:08.360 --> 0:13:10.840
<v Speaker 6>out since the pandemic. And so, you know, I think

0:13:11.120 --> 0:13:13.640
<v Speaker 6>when you've got that backdrop, you have to evaluate for

0:13:13.800 --> 0:13:15.680
<v Speaker 6>your portfolio and say, how do we focus on the

0:13:15.720 --> 0:13:19.839
<v Speaker 6>strengths that we have and can someone else do better

0:13:19.920 --> 0:13:22.800
<v Speaker 6>with the categories where we're not doing as well?

0:13:22.840 --> 0:13:24.160
<v Speaker 5>All right, Jen, thanks so much for joining us.

0:13:24.200 --> 0:13:26.760
<v Speaker 4>Jim Bartasha is seening your retail Anams Bloomborg Intelligence, or

0:13:26.760 --> 0:13:27.760
<v Speaker 4>at least the key question.

0:13:27.840 --> 0:13:30.959
<v Speaker 5>You know Nathan's hothawks. Are you ketchup or mustard?

0:13:31.240 --> 0:13:33.360
<v Speaker 2>Oh, mustard with salacrad and red onions.

0:13:33.440 --> 0:13:35.040
<v Speaker 5>Okay, solid solid.

0:13:35.120 --> 0:13:38.040
<v Speaker 4>I'm a mustard person too, But if somebody put a

0:13:38.040 --> 0:13:39.600
<v Speaker 4>hot dog with ketchup in front of me, I would

0:13:39.840 --> 0:13:40.440
<v Speaker 4>not eat it.

0:13:40.720 --> 0:13:41.360
<v Speaker 5>Well, here's the thing.

0:13:41.440 --> 0:13:43.160
<v Speaker 2>I just came back from Chicago and they said, if

0:13:43.160 --> 0:13:46.040
<v Speaker 2>you put ketchup on your hot dog, no, that's a

0:13:46.320 --> 0:13:46.880
<v Speaker 2>big no.

0:13:46.880 --> 0:13:46.960
<v Speaker 6>No.

0:13:47.120 --> 0:13:49.960
<v Speaker 5>They do not do that in Chicago. Okay, good, good

0:13:49.960 --> 0:13:51.800
<v Speaker 5>to know, Good to know you. Yeah, you know.

0:13:52.360 --> 0:13:54.560
<v Speaker 4>I'm definitely a mustard person. But again, you throw a

0:13:54.559 --> 0:13:56.640
<v Speaker 4>hot dog in front of me with ketchup.

0:13:56.280 --> 0:13:58.199
<v Speaker 5>Off, probably eat it as well.

0:14:00.120 --> 0:14:04.080
<v Speaker 1>Listening to the Bloomberg Intelligence podcast catch us live weekdays

0:14:04.080 --> 0:14:07.160
<v Speaker 1>at ten am Eastern on Applecarclay, and Android Auto with

0:14:07.240 --> 0:14:10.360
<v Speaker 1>the Bloomberg Business app. Listen on demand wherever you get

0:14:10.400 --> 0:14:13.200
<v Speaker 1>your podcasts, or watch us live on YouTube.

0:14:13.559 --> 0:14:16.319
<v Speaker 2>Welcome back to the Bloomberg Intelligence. I'm Lisa Matteo alongside

0:14:16.360 --> 0:14:18.120
<v Speaker 2>Paul Sweeney, Weight.

0:14:17.960 --> 0:14:20.360
<v Speaker 5>Loss, drugs, right, all the rage. I always want to

0:14:20.400 --> 0:14:20.840
<v Speaker 5>know what.

0:14:20.880 --> 0:14:23.520
<v Speaker 2>Is the latest with it? So here with that and

0:14:23.640 --> 0:14:26.480
<v Speaker 2>much more is Sam Fazelli, Bloomberg Intelligence, Director of Research

0:14:26.480 --> 0:14:30.320
<v Speaker 2>for Global Industries and Senior Pharmaceuticals. Sam, thank you for

0:14:30.400 --> 0:14:32.440
<v Speaker 2>joining us this morning. Just want to ask what is

0:14:32.480 --> 0:14:34.480
<v Speaker 2>the latest because we hear so much about weight loss

0:14:34.520 --> 0:14:37.200
<v Speaker 2>drugs and different companies. What's the latest you can here

0:14:37.240 --> 0:14:38.160
<v Speaker 2>you've been hearing so far?

0:14:39.560 --> 0:14:40.400
<v Speaker 1>Yeah, hi, Lisa.

0:14:40.800 --> 0:14:43.520
<v Speaker 7>So in terms of what's happening in the market, we're

0:14:43.560 --> 0:14:48.080
<v Speaker 7>still waiting to see whether the prescription counts for Novo

0:14:48.120 --> 0:14:53.040
<v Speaker 7>Nordisks US WeGo V numbers are up or not. They've

0:14:53.040 --> 0:14:55.840
<v Speaker 7>been flat for pretty much most of this year in

0:14:55.920 --> 0:14:59.000
<v Speaker 7>terms of the number of scripts that doctors are writing

0:14:59.080 --> 0:15:02.760
<v Speaker 7>for their we go V. And the opposite is the

0:15:02.760 --> 0:15:05.880
<v Speaker 7>case for is Lily zeppound continues to keep going up

0:15:06.160 --> 0:15:11.280
<v Speaker 7>and it's a it's a pretty interesting battle which seems

0:15:11.320 --> 0:15:14.640
<v Speaker 7>to be currently being won by Lily, and time will tell.

0:15:14.760 --> 0:15:18.120
<v Speaker 7>What is interesting is that my colleague A. Girzbacker just

0:15:18.160 --> 0:15:23.800
<v Speaker 7>finished a deep patent analysis for so Astria exactly Paul

0:15:24.840 --> 0:15:29.480
<v Speaker 7>for we go V, and I mean the dates in

0:15:29.520 --> 0:15:31.640
<v Speaker 7>terms of pattern experience. Of course, they're important because that's

0:15:31.680 --> 0:15:34.560
<v Speaker 7>when generics can come in and compete with you. Here

0:15:34.600 --> 0:15:37.760
<v Speaker 7>we go from possibly she says twenty thirty one, twenty

0:15:37.800 --> 0:15:40.920
<v Speaker 7>thirty two in the US at least to twenty forty.

0:15:41.440 --> 0:15:44.320
<v Speaker 7>I mean, look, that's an amazing outcome, and she puts

0:15:44.360 --> 0:15:46.760
<v Speaker 7>a decent probability on it in terms of the ways

0:15:46.800 --> 0:15:49.200
<v Speaker 7>that they could protect it. So that could mean a

0:15:49.240 --> 0:15:50.960
<v Speaker 7>lot for a product that could be sending five or

0:15:51.000 --> 0:15:52.000
<v Speaker 7>ten billion dollars a year.

0:15:52.120 --> 0:15:54.520
<v Speaker 5>Right, all right, we got to go to the elephant

0:15:54.520 --> 0:15:55.120
<v Speaker 5>in the room here.

0:15:55.160 --> 0:15:58.240
<v Speaker 4>I mean, Jesus for our listeners on radio, Sam is

0:15:58.280 --> 0:16:01.960
<v Speaker 4>in some kind of contraption like he I'm guessing he

0:16:02.000 --> 0:16:04.480
<v Speaker 4>fell off a barstool and hurt his armor's shoulder.

0:16:04.560 --> 0:16:06.960
<v Speaker 5>Here, what happens, Sammy.

0:16:06.320 --> 0:16:08.920
<v Speaker 7>It's that cheap drink you guys selling the US. You know,

0:16:09.000 --> 0:16:10.960
<v Speaker 7>it just doesn't work for me. What I need is

0:16:10.960 --> 0:16:15.080
<v Speaker 7>are is classified growth, red wines and white wires, right.

0:16:14.960 --> 0:16:17.480
<v Speaker 5>Pole, So what I mean, I'm assuming there's something going

0:16:17.520 --> 0:16:17.840
<v Speaker 5>on there.

0:16:17.880 --> 0:16:21.960
<v Speaker 7>So all right, so rotate tickoff surgery. It's a ard.

0:16:22.320 --> 0:16:23.200
<v Speaker 5>He's not an athlete.

0:16:23.520 --> 0:16:26.520
<v Speaker 4>Bottle He stopping a bottle of bordeaux, threw out his

0:16:26.560 --> 0:16:30.640
<v Speaker 4>shoulder opening a bottle bordeaux. So talk to us about

0:16:31.120 --> 0:16:33.760
<v Speaker 4>what's what's the latest on the cancer field?

0:16:33.800 --> 0:16:35.280
<v Speaker 5>Sam I know you got a lot of conferences in

0:16:35.320 --> 0:16:37.400
<v Speaker 5>here on top of the latest research.

0:16:38.040 --> 0:16:41.480
<v Speaker 4>What should we as consumers and maybe even investors in

0:16:41.520 --> 0:16:44.360
<v Speaker 4>healthcare stocks and biotext what should we be thinking about

0:16:44.360 --> 0:16:46.560
<v Speaker 4>as the next frontier on the cancer front.

0:16:47.920 --> 0:16:51.880
<v Speaker 7>Yeah, I mean, we have a bunch of conference's coming

0:16:51.920 --> 0:16:55.600
<v Speaker 7>up very soon, so the Myloma Conference in International Maloma

0:16:55.600 --> 0:17:00.520
<v Speaker 7>Society in September, the World Lung Cancer Congress, then there's

0:17:00.600 --> 0:17:04.720
<v Speaker 7>the big European Society for Medical Oncology conference in October.

0:17:05.440 --> 0:17:08.160
<v Speaker 7>During these we're going to hear about whether there's going

0:17:08.200 --> 0:17:12.119
<v Speaker 7>to be big step changes again in the treatment of

0:17:12.280 --> 0:17:17.760
<v Speaker 7>some diseases, particularly lung cancer. So we got some therapeutics

0:17:17.760 --> 0:17:21.240
<v Speaker 7>with possibly some data coming up, maybe a door world

0:17:21.280 --> 0:17:24.439
<v Speaker 7>lung cancer. We'll see the aura Desmo. And we've just

0:17:24.440 --> 0:17:27.320
<v Speaker 7>done a survey of US physicians which came back with

0:17:28.119 --> 0:17:30.480
<v Speaker 7>very interesting comments, which are going to write about tomorrow

0:17:30.880 --> 0:17:33.400
<v Speaker 7>about some other trials that are ongoing. So we'll say

0:17:33.400 --> 0:17:36.199
<v Speaker 7>I can't front run that the data will be published

0:17:36.200 --> 0:17:39.239
<v Speaker 7>tomorrow on the terminal. But there's stuff still happening in

0:17:39.280 --> 0:17:42.760
<v Speaker 7>cancer where we're seeing potential for paradigm shift, and that's

0:17:42.800 --> 0:17:44.720
<v Speaker 7>some of the things that we'll be referring to tomorrow.

0:17:44.880 --> 0:17:46.560
<v Speaker 7>Of course, in the middle of all this, we have

0:17:46.640 --> 0:17:51.439
<v Speaker 7>farmer companies continue looking for products to expand their pipelines

0:17:51.480 --> 0:17:52.040
<v Speaker 7>through M and A.

0:17:52.640 --> 0:17:56.120
<v Speaker 2>Now, Sam, we've been talking a lot about tariffs lately.

0:17:56.200 --> 0:17:58.919
<v Speaker 2>How is a biotech sector, even pharmaceuticals, if you can

0:17:58.960 --> 0:18:01.879
<v Speaker 2>dig more into how they're being affected by tariffs.

0:18:03.119 --> 0:18:05.720
<v Speaker 7>Yes, so that that's one area if you look at

0:18:05.760 --> 0:18:09.560
<v Speaker 7>the performance of the farmer stocks relative to the rest

0:18:09.560 --> 0:18:12.000
<v Speaker 7>of the market, I mean Max seven. I mean, I

0:18:12.000 --> 0:18:14.480
<v Speaker 7>don't know where they're going, but Paul I'm sure knows

0:18:14.520 --> 0:18:17.880
<v Speaker 7>more because of the background he has in analyzing tech.

0:18:18.000 --> 0:18:20.240
<v Speaker 7>But they just keep going up. I mean, there's no

0:18:20.480 --> 0:18:22.600
<v Speaker 7>there's no nowhere else for them to go if you

0:18:22.640 --> 0:18:25.040
<v Speaker 7>put them aside. Okay, there s a B five hundred.

0:18:25.080 --> 0:18:29.600
<v Speaker 7>Maybe hasn't been as magical as the when it includes

0:18:29.640 --> 0:18:33.159
<v Speaker 7>the Max seven, but pharma has been a little even less,

0:18:33.760 --> 0:18:37.960
<v Speaker 7>a bit more lackluster, partly because of this continuing conversation

0:18:38.080 --> 0:18:42.160
<v Speaker 7>about tariffs. That two hundred percent is something that President

0:18:42.160 --> 0:18:45.320
<v Speaker 7>Trump mentioned just very recently, although it's delayed till next year.

0:18:46.200 --> 0:18:51.040
<v Speaker 7>You've got your most favored nation pricing that's coming up.

0:18:51.520 --> 0:18:55.840
<v Speaker 7>You've got your possibility that the regulators are going to

0:18:55.920 --> 0:18:58.640
<v Speaker 7>be We don't know where the regulators going in the minute,

0:18:58.640 --> 0:19:02.280
<v Speaker 7>to be honest with you, positive, negative, favorable, not favorable

0:19:02.320 --> 0:19:05.520
<v Speaker 7>for the evolution of regulatory framework in the US. So

0:19:05.600 --> 0:19:07.919
<v Speaker 7>there's a lot of questions. And I know this is

0:19:08.560 --> 0:19:12.280
<v Speaker 7>four's favorite word, uncertainty that still dogs at the pharma sector.

0:19:12.359 --> 0:19:13.440
<v Speaker 5>Yep, that's certainly the case.

0:19:13.480 --> 0:19:15.640
<v Speaker 4>So maybe you know, August one might be a date

0:19:15.640 --> 0:19:17.840
<v Speaker 4>we get some more clarity there. Sam Fazelli, director of

0:19:17.840 --> 0:19:20.440
<v Speaker 4>research for Global Industries and his senior pharmaceutical analysts for

0:19:20.440 --> 0:19:25.679
<v Speaker 4>Bloomberg Intelligence. He's covalescing there in London and our London students,

0:19:25.720 --> 0:19:27.439
<v Speaker 4>but he makes it into the studio folks, even with

0:19:27.520 --> 0:19:30.440
<v Speaker 4>one arm in a sling. So we appreciate that playing

0:19:30.480 --> 0:19:31.359
<v Speaker 4>herd out there for us.

0:19:31.600 --> 0:19:33.280
<v Speaker 5>That's what happens when you get old, Lisa. You know,

0:19:33.400 --> 0:19:34.800
<v Speaker 5>things happen. They just kind of go out and we

0:19:34.840 --> 0:19:35.960
<v Speaker 5>can see you in a sleep.

0:19:36.280 --> 0:19:40.199
<v Speaker 4>I hope, I hope, not exactly so, Sam Fazzelli. There so,

0:19:40.760 --> 0:19:43.639
<v Speaker 4>and Emina, you mentioned M and A. I'm just so

0:19:43.760 --> 0:19:45.960
<v Speaker 4>far in the first quarter. This is according to Sam's notes,

0:19:46.400 --> 0:19:50.679
<v Speaker 4>so far in the first half thirty two billion of

0:19:50.840 --> 0:19:53.000
<v Speaker 4>M and A in farmer thirteen deals.

0:19:53.600 --> 0:19:54.760
<v Speaker 5>Last year it was.

0:19:55.400 --> 0:19:59.919
<v Speaker 4>Sixteen billion for six sixteen deals, so dollar amounts certainly

0:20:00.040 --> 0:20:00.920
<v Speaker 4>bigger this year.

0:20:01.480 --> 0:20:06.199
<v Speaker 1>This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,

0:20:06.359 --> 0:20:10.360
<v Speaker 1>and anywhere else you get your podcasts. Listen live each weekday,

0:20:10.560 --> 0:20:13.840
<v Speaker 1>ten am to noon Eastern on Bloomberg dot com, the

0:20:13.920 --> 0:20:17.800
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0:20:17.800 --> 0:20:21.119
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0:20:21.320 --> 0:20:23.280
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