WEBVTT - BI Weekend: Oracle, Kohl’s Earnings, CERAWeek 0:00:00.280 --> 0:00:11.280 Bloomberg Audio Studios, podcasts, radio news. This is Bloomberg Intelligence 0:00:11.400 --> 0:00:13.440 with Alex Steel and Paul Sweeney. 0:00:13.600 --> 0:00:16.799 The real our performance has been in US corporate high yield. 0:00:17.000 --> 0:00:18.120 Are the companies lean enough? 0:00:18.160 --> 0:00:19.320 Have they trimmed all the facts? 0:00:19.400 --> 0:00:22.640 The semiconductor business is a really cyclical. 0:00:22.160 --> 0:00:26.360 Business, breaking market headlines and corporate news from across the globe. 0:00:26.400 --> 0:00:28.880 Do investors like the M and A that we've seen? 0:00:29.080 --> 0:00:32.040 These are two big time blue chip companies. 0:00:32.280 --> 0:00:36.080 Window between the peak and cunt changing super fast. 0:00:35.920 --> 0:00:40.960 Bloomberg Intelligence with Alex Steele and Paul Sweeney on Bloomberg Radio. 0:00:41.760 --> 0:00:44.200 On Today's Bloomberg Intelligence Show, we dig inside the big 0:00:44.240 --> 0:00:46.600 business stories impacting Wall Street and the global markets. 0:00:46.680 --> 0:00:48.560 Each and every week we provide in depth research and 0:00:48.680 --> 0:00:50.400 data on some of the two thousand companies and one 0:00:50.440 --> 0:00:53.000 hundred and thirty industries our analysts cover worldwide. 0:00:53.080 --> 0:00:55.560 Today, we'll look at why shares of the Danis drugmaker 0:00:55.680 --> 0:00:58.120 Novo Nordisk could drop the most since late December. 0:00:58.160 --> 0:01:00.840 Plus we'll discuss why the department Storeles gave a week 0:01:00.880 --> 0:01:02.000 sales outlook for the year. 0:01:02.240 --> 0:01:05.120 But first we begin with the computer technology company Oracle. 0:01:05.280 --> 0:01:07.200 This week, the company shares fell out here gave a 0:01:07.240 --> 0:01:09.720 sales and profit forecast for the current quarter that fell short, 0:01:09.720 --> 0:01:11.560 and analyst expectations for more. 0:01:11.680 --> 0:01:13.920 Guest hosts Isabelle Lee and I were joined by Anna 0:01:14.000 --> 0:01:17.560 Rock RNA Bloomberg Intelligence Technology Analysts. We first asked Anorrock 0:01:17.640 --> 0:01:20.440 for his take on Oracle and why investors reacted negatively 0:01:20.440 --> 0:01:21.120 to its earnings. 0:01:21.400 --> 0:01:23.800 Yeah, the little bit likeness in for Q that you 0:01:23.880 --> 0:01:26.959 alluded to is primarily due to supply challenges, which is, 0:01:27.319 --> 0:01:31.120 you know, the data center expansion everybody's undertaking, so the 0:01:31.160 --> 0:01:34.360 realization of revenues from that. I'm to be honest, a 0:01:34.360 --> 0:01:37.000 bit surprised about the stock reaction because the company gave 0:01:37.319 --> 0:01:40.280 two or three really interesting nuggets for us to chew on. 0:01:40.920 --> 0:01:44.280 The first one was very large bookings in quarter or 0:01:44.880 --> 0:01:49.080 so their remaining performance obligations of the contracts booked, you know, 0:01:49.120 --> 0:01:52.200 spiked up sixty three one hundred and thirty billion, and 0:01:52.240 --> 0:01:55.240 along with that for their FI twenty six which starts 0:01:55.280 --> 0:01:58.720 in June, and FY twenty seven, they talked about sales 0:01:58.720 --> 0:02:02.440 growth of fifteen percent twenty percent, respectively. So those are 0:02:02.520 --> 0:02:05.200 very strong numbers. So we are a bit surprised about 0:02:05.480 --> 0:02:06.000 the reaction. 0:02:06.360 --> 0:02:09.520 How did Oracle and other companies really react to Chinese 0:02:09.600 --> 0:02:11.800 upstart Deep Seek. I mean they release an open source 0:02:11.840 --> 0:02:14.880 AA and that torpedo basically the whole a outlook that 0:02:15.000 --> 0:02:18.600 I mentioned it under earnings call and any of their statements. 0:02:19.080 --> 0:02:22.959 Yeah, so they were already talking about some of that impact. 0:02:23.120 --> 0:02:25.919 But these guys reported very strong bookings. But I think 0:02:25.960 --> 0:02:28.400 your question is probably the most important one right now, 0:02:28.720 --> 0:02:31.400 because I think one reason for the stock selling off 0:02:31.480 --> 0:02:34.399 despite these bookings could be, you know, do this does 0:02:34.440 --> 0:02:37.160 this trait continue going forward in the next two years 0:02:37.240 --> 0:02:39.840 or so? And I think that's really why people may 0:02:39.840 --> 0:02:42.720 be skeptical that there twenty percent growth they are talking 0:02:42.720 --> 0:02:45.840 about two years from now. You know how dependable that 0:02:46.000 --> 0:02:49.640 is depending on you know, do the companies such as 0:02:49.639 --> 0:02:53.600 the cloud vendors keep on spending very aggressively on capital. 0:02:53.200 --> 0:02:56.960 Expenditures, margins, profit margins? Would you learn at Oracle kind 0:02:56.960 --> 0:02:58.359 of some folks are calling that out. 0:02:58.639 --> 0:02:59.280 Yeah, so we we. 0:02:59.560 --> 0:03:01.720 Think that to go down next year. They really did 0:03:01.760 --> 0:03:03.640 not address that issue because I think they're going to 0:03:03.639 --> 0:03:05.960 talk about it in four Q See when you take 0:03:06.040 --> 0:03:09.200 up your capis from seven billion to fourteen to sixteen 0:03:09.240 --> 0:03:12.240 to twenty over the next know, just let's say two years, 0:03:12.720 --> 0:03:16.000 it's going to have an impact on profitability because the 0:03:16.040 --> 0:03:19.960 business that's coming in it's less profitable than your core 0:03:20.120 --> 0:03:23.760 database business or your applications business. So we think margin 0:03:23.840 --> 0:03:25.200 is going to be dented by one hundred to two 0:03:25.240 --> 0:03:29.040 hundred basis points next year. Consensus doesn't have that figured 0:03:29.040 --> 0:03:32.200 it in their outlook at this point. We think those 0:03:32.280 --> 0:03:33.639 numbers do come down. 0:03:33.440 --> 0:03:36.360 Our Thanks to anorog Run, a Bloomberg Intelligence technology analyst. 0:03:36.720 --> 0:03:39.280 This week, I was at Sarah Week's Global Energy Conference 0:03:39.320 --> 0:03:42.120 in Houston, Texas. It's where all the energy CEOs and 0:03:42.160 --> 0:03:44.640 officials meet to discuss policy and make deals, and I 0:03:44.680 --> 0:03:47.440 had the pleasure I was speaking with Larry Coben, CEO 0:03:47.600 --> 0:03:48.760 of Energy Energy. 0:03:49.200 --> 0:03:53.000 Energy Energy is involved in energy generation and retail electricity, 0:03:53.200 --> 0:03:56.280 and it provides energy and related services to residential, industrial, 0:03:56.320 --> 0:03:57.440 and commercial customers. 0:03:57.520 --> 0:04:00.280 Larry Coben and I discussed power demand and energy and 0:04:00.280 --> 0:04:02.840 I first asked him if rising power growth is driven 0:04:02.880 --> 0:04:05.120 primarily by data demand and AI. 0:04:05.680 --> 0:04:07.640 I think it's a lot of things. It's also on 0:04:07.840 --> 0:04:11.800 shoring of manufacturing. For example, here in Texas, there's a 0:04:11.920 --> 0:04:14.480 one gig Samsung plant that's going to be opened in 0:04:14.480 --> 0:04:17.159 a couple of years. It's the Internet of Things, it's 0:04:17.200 --> 0:04:20.880 smart homes, people are just it's electric cars. People are 0:04:21.000 --> 0:04:25.200 just using more electricity in ways that they never did before. 0:04:25.600 --> 0:04:27.599 And as a result of that, that's part of the 0:04:27.640 --> 0:04:30.480 demand cycle. Obviously, data centers are a big part of it. 0:04:30.520 --> 0:04:33.279 But data centers aside. All of the people who build 0:04:33.320 --> 0:04:37.120 data centers also are involved with cloud and a whole 0:04:37.120 --> 0:04:39.960 slew of other services search that we don't think about 0:04:40.400 --> 0:04:43.120 because we've had them for so long, but growth for 0:04:43.160 --> 0:04:44.840 those is increasing every. 0:04:44.640 --> 0:04:45.280 Bit as much. 0:04:45.960 --> 0:04:48.440 And you guys are one of the largest independent power 0:04:48.480 --> 0:04:51.039 producers in the United States, right, so you can really 0:04:51.040 --> 0:04:54.640 take advantage of this. Where is the biggest demand for 0:04:54.720 --> 0:04:56.760 what kind of power? Give me some insights into the 0:04:56.839 --> 0:04:58.240 conversations you're having right now. 0:04:58.279 --> 0:05:01.359 Sure, I think you know competitive markets. The two biggest 0:05:01.400 --> 0:05:06.720 ones would be Texas and PJAM in the northeast. Texas 0:05:06.800 --> 0:05:09.000 is a primary focus for us that we do have 0:05:09.040 --> 0:05:12.560 a strong PJM presence. One of the things we like 0:05:12.600 --> 0:05:16.920 about Texas is it has a friendlier permitting environment and 0:05:16.960 --> 0:05:19.840 it has one Public Utilities Commission. 0:05:19.320 --> 0:05:20.080 And one governor. 0:05:20.600 --> 0:05:23.880 Urkatt has thirteen states in it, plus the District of Columbia. 0:05:23.920 --> 0:05:28.280 So that's fourteen commissions, fourteen governor like people, and FIRK, 0:05:28.360 --> 0:05:31.880 which doesn't have any jurisdiction here. So but I think 0:05:31.920 --> 0:05:34.000 you're going to see data centers in all of these 0:05:34.040 --> 0:05:37.240 places and every and in other places where economic growth 0:05:37.279 --> 0:05:37.800 is going on. 0:05:37.880 --> 0:05:40.160 It's not going to be limited. But I think Texas 0:05:40.200 --> 0:05:41.040 is going to be first. 0:05:41.440 --> 0:05:43.640 Do you think that the hyperscaler hype about how much 0:05:43.640 --> 0:05:45.960 they're going to spend on power demand is real. 0:05:46.040 --> 0:05:47.040 Right to fall short? 0:05:47.480 --> 0:05:50.560 I think yes, I mean it won't. It will not 0:05:50.640 --> 0:05:52.320 fall short. It may even go up. 0:05:52.440 --> 0:05:52.719 Okay. 0:05:52.920 --> 0:05:54.440 And the reason I think that is, you know, it's 0:05:54.480 --> 0:05:57.760 interesting after Deep Seek, everybody was super concerned about that, 0:05:58.120 --> 0:05:59.960 and then three of the hyperscalers came out. 0:06:00.080 --> 0:06:02.039 Essentially doubled their capital commitments. 0:06:02.560 --> 0:06:05.719 Now if they actually, after looking at Deepseek, decide it's 0:06:05.720 --> 0:06:08.360 going to be twice as much, then that gives me 0:06:08.440 --> 0:06:09.440 a great deal of comfort. 0:06:09.520 --> 0:06:11.200 The power demand is going to be there. 0:06:11.640 --> 0:06:14.359 And you know, I know everybody's talking about GEVNS paradox 0:06:14.360 --> 0:06:16.479 because everyone has now googled it for the first time. 0:06:16.520 --> 0:06:18.840 I'm actually old enough to remember what it was originally. 0:06:19.440 --> 0:06:22.240 But you know, I think people will start using this 0:06:22.320 --> 0:06:24.279 more and more. I already see it in our business. 0:06:24.640 --> 0:06:29.440 We are using enormous amounts of AI and customer service 0:06:29.440 --> 0:06:31.160 and we're only just scratching the surface. 0:06:31.520 --> 0:06:34.360 Speaking of you're going to be developing five point four 0:06:34.440 --> 0:06:37.760 gigawatts by twenty thirty two, right, how much of that 0:06:37.880 --> 0:06:39.760 is going to be fully contracted and how much of 0:06:39.760 --> 0:06:41.239 that will be more merchants spot price? 0:06:41.680 --> 0:06:42.479 You know, we have. 0:06:43.880 --> 0:06:47.120 One point five gigs that is shovel ready that will 0:06:47.200 --> 0:06:49.320 probably go Most of that will go directly into the 0:06:49.360 --> 0:06:52.920 Texas market. Okay, anything we build beyond that, I would 0:06:52.960 --> 0:06:56.640 anticipate would be fully contracted for related either to a 0:06:56.720 --> 0:06:58.320 data center or another kind. 0:06:58.120 --> 0:07:01.800 Of large user along the way. We are not in. 0:07:01.760 --> 0:07:04.360 The business of taking merchant risks some of the other 0:07:04.440 --> 0:07:08.880 folks are. We actually like to protect our downside and 0:07:08.920 --> 0:07:11.920 give ourselves a lot of optionality to the upside so 0:07:11.960 --> 0:07:14.240 that we don't have to care whether the growth is 0:07:14.280 --> 0:07:17.280 two percent or ten percent. Both of those are ginormous 0:07:17.320 --> 0:07:17.720 for us. 0:07:17.880 --> 0:07:19.840 So what kind of pricing are we talking about for 0:07:19.920 --> 0:07:21.240 a gas fire plant. 0:07:21.000 --> 0:07:23.680 For renewable for other power? Like, what does it look 0:07:23.720 --> 0:07:24.160 like right now? 0:07:24.200 --> 0:07:26.880 I mean gas fired plants. We think they're going to 0:07:26.920 --> 0:07:30.160 be done for fifteen hundred to two thousand a kW installed. 0:07:30.640 --> 0:07:32.680 The ones that are shovel ready because we started on 0:07:32.720 --> 0:07:35.440 them five years ago will be much less. But if 0:07:35.480 --> 0:07:38.080 you're not in the business actively doing it, you're going 0:07:38.120 --> 0:07:39.880 to have a hard time hitting the top end of 0:07:39.920 --> 0:07:45.320 the range. Renewable pricing hasn't changed dramatically. It's just that 0:07:45.360 --> 0:07:48.560 the load curve is changing as people need. There's more 0:07:48.600 --> 0:07:51.760 twenty four to seven power use coming in. And you know, 0:07:52.040 --> 0:07:54.440 sun doesn't shine at night, wind doesn't always blow. 0:07:54.840 --> 0:07:58.400 But renewables aren't dead. They're going to be sure. 0:07:59.600 --> 0:08:04.200 Yes, actually I am sure, okay, because there's still a 0:08:04.240 --> 0:08:08.120 place for them when they're working in conjunction with gas plants, 0:08:08.400 --> 0:08:11.200 I mean part of our portfolio. Now we actually shut 0:08:11.200 --> 0:08:13.920 off our fossil fuel plants during the day when there's 0:08:13.920 --> 0:08:16.080 a lot of salta in win in Texas. We buy 0:08:16.120 --> 0:08:18.680 from the grid their power and sell it to our customers, 0:08:18.720 --> 0:08:22.280 generating it ourselves. Those options are still going to be available, 0:08:22.320 --> 0:08:23.960 at least in competitive markets. 0:08:24.000 --> 0:08:27.200 Well, speaking of your renewable unit is thirty percent of 0:08:27.200 --> 0:08:29.440 your annual earnings right, and it's twenty percent of the 0:08:29.480 --> 0:08:31.400 renewable market share here in the US. 0:08:31.640 --> 0:08:33.400 How much do you think that can grow for you? 0:08:34.160 --> 0:08:39.000 I are renewable. You know, we generally actually contract for 0:08:39.120 --> 0:08:42.360 renewables rather than own them. It's a strange thing because 0:08:42.400 --> 0:08:45.640 we own two coal plants. Everyone else gets cheaper renewable 0:08:45.720 --> 0:08:48.240 capital than we do, even though we're a big company 0:08:48.280 --> 0:08:50.760 and quite good at this, and as a result, what 0:08:50.800 --> 0:08:54.199 we generally do is contract for that power from other developers. 0:08:54.520 --> 0:08:55.440 Right now, we've. 0:08:55.240 --> 0:08:57.720 Got two gigs and we're probably going to have a 0:08:57.720 --> 0:09:01.000 solicitation for more going forward. So I still see it 0:09:01.000 --> 0:09:03.880 as an integral part of our strategy, and a lot 0:09:03.920 --> 0:09:06.480 of them also will be driven by what the customers want. 0:09:06.880 --> 0:09:08.480 So the end of the day, we are in the 0:09:08.520 --> 0:09:13.080 customer service business, not the electricity business. So it's our 0:09:13.160 --> 0:09:15.480 job to sell you the kind of electrons that you 0:09:15.640 --> 0:09:19.480 want in terms of you know, time, place, and and 0:09:19.559 --> 0:09:23.920 fuel generation. So if you want green electrons, decarbonized electrons, 0:09:24.080 --> 0:09:25.880 we will have them and we will sell. 0:09:25.720 --> 0:09:26.120 Them to you. 0:09:26.880 --> 0:09:27.240 Thank you. 0:09:28.600 --> 0:09:33.080 In terms of in terms of the actual agreements, how 0:09:33.160 --> 0:09:35.760 many agreements are you talking about that's like, hey, we're 0:09:35.760 --> 0:09:38.400 going to sign like yeah, yeah, well we like your 0:09:38.400 --> 0:09:41.040 electricity will sign in versus like firm demand. 0:09:41.160 --> 0:09:42.000 Here's your paycheck. 0:09:43.320 --> 0:09:44.800 You know we do this every day. 0:09:45.160 --> 0:09:48.280 We actually supply power already to every one of the hyperscalers. 0:09:48.679 --> 0:09:52.400 We have the second largest commercial CNI electricity book in 0:09:52.440 --> 0:09:54.960 the country and the largest natural gas one. So we 0:09:55.080 --> 0:09:57.360 sign those kind of arrangements. Some of them are short terms, 0:09:57.400 --> 0:09:59.640 some of them are long term. I think the new 0:09:59.720 --> 0:10:02.880 data center ones will all be at least ten and 0:10:02.960 --> 0:10:04.680 probably closer to twenty years. 0:10:04.960 --> 0:10:05.960 ABE is we won't. 0:10:05.720 --> 0:10:08.760 Want to dedicate our site to something that's less than that. B. 0:10:08.920 --> 0:10:10.960 We won't want to build a dedicated power plant for 0:10:11.040 --> 0:10:13.320 less than that. And see if you're going to pay 0:10:13.320 --> 0:10:15.240 all that money for those chips and to build a 0:10:15.360 --> 0:10:18.240 data center, which actually costs more than a power plant, 0:10:18.600 --> 0:10:21.120 you're going to want that kind of stability. 0:10:20.480 --> 0:10:22.080 For an extended period of time. 0:10:22.559 --> 0:10:24.240 So I think a lot of those are going to 0:10:24.240 --> 0:10:28.320 be fixed price deals off market with power scale. They 0:10:28.320 --> 0:10:30.640 will still be in front of the meter because people 0:10:30.640 --> 0:10:33.160 will want to be connected to the grid, but they 0:10:33.160 --> 0:10:35.520 will definitely be long term fixed contracts. 0:10:35.360 --> 0:10:36.520 How soon you're signing more. 0:10:36.440 --> 0:10:37.079 Of those. 0:10:39.520 --> 0:10:41.240 Stay tuned? Fair question? 0:10:42.120 --> 0:10:43.920 You know my next earning is call is may it 0:10:43.920 --> 0:10:47.319 will not be then, okay, but you know we're working 0:10:47.360 --> 0:10:49.400 on these as fast as we possibly can. 0:10:49.440 --> 0:10:50.319 They're complicated. 0:10:50.720 --> 0:10:53.760 People, you know, think electricity is just like flicking a switch. 0:10:54.320 --> 0:10:58.880 It's super complicated. But we are making substantial progress towards 0:10:58.920 --> 0:11:02.679 some very interesting trends. Actions talking both to hyper scalers 0:11:02.720 --> 0:11:04.040 and to developers were. 0:11:03.880 --> 0:11:06.400 I let you go, though. What makes it complicated? Is 0:11:06.440 --> 0:11:07.200 it the pricing? 0:11:07.480 --> 0:11:07.760 Is it? 0:11:08.280 --> 0:11:09.720 How to structure the deal? 0:11:09.880 --> 0:11:12.000 Like is your power going to the grid and then 0:11:12.160 --> 0:11:13.559 selling back to the hyper scale? 0:11:13.600 --> 0:11:13.640 Like? 0:11:13.760 --> 0:11:14.760 What makes it so hard? 0:11:14.840 --> 0:11:18.760 You need interconnection agreement, You need a construction agreement, you 0:11:18.800 --> 0:11:21.760 need a turbine agreement. Now you know we have all 0:11:21.800 --> 0:11:24.080 of these in place generically, but they all need to 0:11:24.120 --> 0:11:27.440 be site specific. You need to decide how big a 0:11:27.520 --> 0:11:30.200 data center you want to put on the site. How 0:11:30.240 --> 0:11:32.360 fast are you going to grow that data center? So 0:11:32.679 --> 0:11:34.400 are you going to start at two hundred megs and 0:11:34.440 --> 0:11:35.920 go up two hundred a year? Do you want to 0:11:35.960 --> 0:11:39.120 start at a gig? So what makes it complicated is 0:11:39.160 --> 0:11:42.440 putting all of those pieces together. And what people forget 0:11:42.520 --> 0:11:45.120 is actually for this type of data center is new, 0:11:45.960 --> 0:11:48.959 unlike existing data centers where people have done lots of them. 0:11:49.160 --> 0:11:51.880 There aren't a lot of AI data centers out there yet. 0:11:52.320 --> 0:11:56.360 But it's complicated, but so is general power plant development. 0:11:56.400 --> 0:11:59.000 All the permitting in those things. So it's nothing that 0:11:59.040 --> 0:12:02.240 we're worried about, something we actually think we're pretty good at. 0:12:02.400 --> 0:12:05.839 But hyberkailers are willing to put down that money. You're 0:12:05.840 --> 0:12:07.080 showing up knocking on your door. 0:12:07.080 --> 0:12:08.920 They're there, they're there. Okay, they're there. 0:12:09.080 --> 0:12:11.920 We're there, and you know, because of the agreements Wen 0:12:11.960 --> 0:12:14.720 asked last week, the turbines and the contractors are there. 0:12:14.920 --> 0:12:17.960 All right, thanks to Larry Coben, CEO of nerg Energy. 0:12:18.160 --> 0:12:19.520 All right, coming up, we're gonna have more from the 0:12:19.520 --> 0:12:22.280 Sarah Week Energy Conference and a conversation with CEO of 0:12:22.400 --> 0:12:23.200 ge Vernova. 0:12:23.400 --> 0:12:26.200 You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in 0:12:26.240 --> 0:12:28.480 depth research and data on two thousand companies and one 0:12:28.559 --> 0:12:31.559 hundred and thirty industries. You can access Bloomberg Intelligence via 0:12:31.600 --> 0:12:33.640 b I go on the terminal on Paul Sweeney. 0:12:33.360 --> 0:12:35.440 And am Alex Steele and this is Bloomberg. 0:12:40.120 --> 0:12:43.839 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:12:43.920 --> 0:12:47.000 weekdays at ten am Eastern on Apple Corplay and Android 0:12:47.000 --> 0:12:50.319 Auto with the Bloomberg Business App, listen on demand wherever 0:12:50.360 --> 0:12:53.880 you get your podcasts, or watch us live on YouTube. 0:12:54.160 --> 0:12:56.880 We move next to the drug and pharmaceutical space. This week, 0:12:57.000 --> 0:13:00.480 shares of the Danish drugmaker Noko Nordisk dropped the since 0:13:00.520 --> 0:13:01.560 December twentieth. 0:13:01.760 --> 0:13:04.280 That's after Novo said that people treated with the obesity 0:13:04.360 --> 0:13:07.640 drug Kagri Semma showed underwhelming weight loss, and a clinical 0:13:07.679 --> 0:13:09.880 trial of people with diabetes For. 0:13:09.800 --> 0:13:12.439 More guests, Isabelle Lee and I were joined by Sam Fazzelli, 0:13:12.440 --> 0:13:15.600 Bloomberg Intelligence, Director of Research for Global Industries and senior 0:13:15.640 --> 0:13:19.280 pharmaceuticals analysts, who first asked Sam where Novo is now 0:13:19.320 --> 0:13:21.600 in a fast growing market for weight loss treatments. 0:13:22.000 --> 0:13:24.240 Fifteen point seven percent is what they lost in the 0:13:24.360 --> 0:13:27.120 sixty eight big trial, and then when you correct that 0:13:27.240 --> 0:13:30.840 for the placebo, so obviously you tell people to also diet, 0:13:30.840 --> 0:13:35.680 et cetera, that falls down to twelve point six percent 0:13:36.240 --> 0:13:40.400 is not a big number. Therefore, people are upset and 0:13:40.440 --> 0:13:42.760 this was supposed to be the drug that is going 0:13:42.840 --> 0:13:46.840 to beat or hope they hoped would beat potentially or 0:13:46.880 --> 0:13:49.760 be their main way of competing with zeppetite from or 0:13:49.880 --> 0:13:54.160 Munjaro from Eli Lilly. The reality is it's actually in 0:13:54.200 --> 0:13:56.320 this trial it seems about in line with what cha 0:13:56.360 --> 0:13:59.880 Zeppetite gave us. So it's not that it's that bad. 0:14:00.000 --> 0:14:03.000 It's just these guys set themselves up a while ago 0:14:03.080 --> 0:14:06.480 saying twenty five percent in OBEs, twenty percent or so 0:14:06.640 --> 0:14:10.120 in obi's diabetics. Diabetics for some reason respond less. And 0:14:10.240 --> 0:14:12.400 of course both of those have been lower. We had 0:14:12.400 --> 0:14:15.679 that one the first one in the obesity population before Christmas, 0:14:15.679 --> 0:14:18.600 if you remember, and this one. So this market is 0:14:18.640 --> 0:14:22.440 so awful, with the sea of red everywhere that it's 0:14:22.520 --> 0:14:26.200 really difficult to parse out specific company thing or people 0:14:26.240 --> 0:14:28.240 are just miffed taking a. 0:14:28.200 --> 0:14:31.040 Step back when it comes to the reintroduction of legislation 0:14:31.120 --> 0:14:34.600 to modify the Inflation Reduction Act. How does large pharma 0:14:35.040 --> 0:14:36.360 sit amidst all of. 0:14:36.320 --> 0:14:40.840 Those Oh, just a small question then, right, No, I mean, look, 0:14:40.880 --> 0:14:42.080 at the end of the day, a lot of these 0:14:42.120 --> 0:14:45.160 folks are being told you're going to have your within 0:14:45.240 --> 0:14:48.000 that context, We've done a lot of analysis on this. 0:14:48.600 --> 0:14:52.360 Every year fifteen drugs are chosen to be negotiated for 0:14:52.520 --> 0:14:58.440 price by the Medicare plans. So and it's possible that 0:14:58.600 --> 0:15:01.280 novos we go V is going to be part of 0:15:01.280 --> 0:15:03.840 one of those four twenty twenty six or twenty twenty seven, 0:15:03.880 --> 0:15:06.960 I can't remember exactly that's what's happening with these guys, 0:15:07.280 --> 0:15:09.200 but there a lot of farmer companies have said, look, 0:15:09.240 --> 0:15:11.480 we can manage this. It's within our realms to be 0:15:11.480 --> 0:15:13.640 able to cope. And so I think the market is 0:15:13.680 --> 0:15:18.040 generally accepted that IRA isn't that bad for the farmer industry. 0:15:18.240 --> 0:15:22.680 SAM talk to us about kind of these generic weight 0:15:22.760 --> 0:15:26.000 loss drugs, and I guess they're I don't know if 0:15:26.000 --> 0:15:28.600 they're generic or if they're a different term. 0:15:28.440 --> 0:15:31.240 But compounded compound phrase. 0:15:31.400 --> 0:15:34.160 Look for how effective are they should and how safe 0:15:34.160 --> 0:15:34.440 are they? 0:15:35.600 --> 0:15:35.880 Well? 0:15:35.960 --> 0:15:42.160 I mean, look, you the companies buy active from somebody 0:15:43.000 --> 0:15:46.320 and they make it in the pharmacy and they sell 0:15:46.320 --> 0:15:49.240 it to you. Right, so it's usually a needle and 0:15:49.320 --> 0:15:51.640 as yringe, right, a needle and syringe in a wile. 0:15:52.280 --> 0:15:53.520 And how safe are they? 0:15:53.600 --> 0:15:54.440 Who knows? 0:15:55.200 --> 0:15:58.760 No one's done trials on them. I think the FDA 0:15:58.920 --> 0:16:01.920 has to believe, even they do go through rigorous and 0:16:02.080 --> 0:16:05.040 assessment that the active that they're buying isn't going to 0:16:05.120 --> 0:16:07.520 kill people. And I don't think that there's been that 0:16:07.640 --> 0:16:10.000 much issue. But then at the end of the day, 0:16:10.120 --> 0:16:12.720 it's not the branded drug, it's not the drug that 0:16:12.760 --> 0:16:16.480 the manufacturers live and die by if there's an issue. 0:16:16.640 --> 0:16:19.040 So the reality is they should be out of the 0:16:19.040 --> 0:16:22.960 way anyway because they can only sell what are essentially 0:16:23.080 --> 0:16:27.120 on patent drugs which they're not supposed to write if 0:16:27.160 --> 0:16:29.440 there's a shortage, and the FDA said there's no shortage 0:16:29.440 --> 0:16:31.760 for either of the drugs from Novo or Lilina, so 0:16:31.800 --> 0:16:33.400 those folks have to take them off the market. 0:16:33.480 --> 0:16:37.120 Going back to this tagrisema, if Nova plants take regulatory 0:16:37.160 --> 0:16:40.280 approval in the first quarter of next year, what happens 0:16:40.640 --> 0:16:42.400 if it gets approved and if it doesn't. 0:16:42.760 --> 0:16:48.320 Yeah, so look, these are all drugs that are in 0:16:48.360 --> 0:16:52.760 the evolution of the pipeline of the company, so we go. 0:16:52.840 --> 0:16:57.320 V from Novo is often viewed as less impactful in 0:16:57.440 --> 0:17:01.840 terms of efficacy than Lili's Monjaro. So here comes Novo 0:17:01.920 --> 0:17:04.680 with something that matches it with a slightly different mechanism 0:17:04.800 --> 0:17:08.680 that potentially can help you maintain a little bit more 0:17:08.760 --> 0:17:11.840 muscle rather than what you get with some of these 0:17:12.280 --> 0:17:15.200 earlier versions like Pickov. So that's the idea, but they 0:17:15.200 --> 0:17:17.040 still have to prove that and then of course there'll 0:17:17.040 --> 0:17:20.960 be another generation that we'll call triple therapy from Lily. 0:17:21.560 --> 0:17:23.480 So basically what they're trying to do is to keep 0:17:23.560 --> 0:17:26.359 raising the bar and raising the bar on efficacy and 0:17:26.480 --> 0:17:29.480 raising the bar on giving you the good weight loss e, 0:17:30.480 --> 0:17:32.359 less muscle, morephat our. 0:17:32.400 --> 0:17:35.199 Thanks to Sam Fazelli, Bloomberg Intelligence, Director of Research for 0:17:35.200 --> 0:17:37.600 Global Industries and senior pharmaceuticals Analysts. 0:17:37.920 --> 0:17:40.879 This week, I was at SMP Globals Sarah Week Energy 0:17:40.920 --> 0:17:42.560 Conference in Houston, Texas. 0:17:42.720 --> 0:17:45.000 It's where all the energy CEOs and officials meet to 0:17:45.040 --> 0:17:46.919 discuss policy and make deals. 0:17:47.000 --> 0:17:49.600 HI the pleasure of speaking with Scott Straisik, CEO of 0:17:49.680 --> 0:17:50.520 ge Vernova. 0:17:50.640 --> 0:17:53.720 Gevnova is a gas and wind turbine manufacturer and it 0:17:53.760 --> 0:17:55.840 was spun off a year ago by General Electric. 0:17:56.080 --> 0:17:58.360 I spoke to its CEO about the company's grid investments 0:17:58.359 --> 0:18:01.200 and artificial intelligence and energy, and I begin by asking 0:18:01.240 --> 0:18:04.600 Scott what he thinks the biggest change is leading the 0:18:04.640 --> 0:18:05.760 company in the last. 0:18:05.600 --> 0:18:08.160 Year, and I'm proud of the first year, but most 0:18:08.160 --> 0:18:10.439 importantly it's really just the beginning for us because a 0:18:10.480 --> 0:18:13.040 lot of these trends, whether it be AI, whether it 0:18:13.040 --> 0:18:16.120 be the electrification of these industries, it's really just starting. 0:18:16.240 --> 0:18:19.640 So our end markets continue to strengthen. I think there's 0:18:19.680 --> 0:18:22.679 a more reality based focus on both the need for 0:18:22.720 --> 0:18:25.240 gas and nuclears, so the demand cycle for both of 0:18:25.280 --> 0:18:28.480 those continues to get even stronger today than where we 0:18:28.480 --> 0:18:31.560 were twelve months ago. And it really then comes back 0:18:31.560 --> 0:18:34.120 to how do we deliver safely and in a high 0:18:34.200 --> 0:18:37.919 quality way to serve this incredible market that we're walking into. 0:18:38.080 --> 0:18:41.639 Your backlog is huge, right, it's like seventy three billion dollars, right? 0:18:41.960 --> 0:18:43.600 Can you give me perspective, like how much of that 0:18:43.680 --> 0:18:44.800 is AI demand driven? 0:18:44.920 --> 0:18:47.480 How much of that is like wind stuff? How much 0:18:47.480 --> 0:18:47.760 of that. 0:18:47.840 --> 0:18:50.320