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Speaker 1: Bloomberg Audio Studios, podcasts, radio, news, and Android auto with

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Speaker 1: the Bloomberg Business App. Listen on demand wherever you get

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Speaker 1: your podcasts, or watch us live on YouTube.

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Speaker 2: On the economic from We've got some University of Michigan

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Speaker 2: sentiment data today, just coming out at ten am Wall

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Speaker 2: Street time.

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Speaker 3: Not good.

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Speaker 2: University of Michigan sentiment came out at fifty point eight.

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Speaker 2: Consensus was fifty three point four. Last period it was

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Speaker 2: fifty two point two. This is the second lowest rating

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Speaker 2: or measurement on record. Joann chu joins us here Surveys

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Speaker 2: of Consumers, Director at the University of Michigan. Johanne putting

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Speaker 2: in the context the numbers you guys.

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Speaker 4: Reported today, essentially we should think of this as very

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Speaker 4: little change from April. Over the course of this year,

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Speaker 4: we've seen consecutive months of very very strong declines. This

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Speaker 4: most recent one was a very small decline and essentially flat.

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Speaker 4: But as you pointed out, this is a very very

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Speaker 4: low reading. Consumers continue to feel very dour about the economy.

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Speaker 4: They're worried about the impact of tariffs on inflation and

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Speaker 4: also the impact on unemployment. They're really worried about multiple

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Speaker 4: dimensions of the economy. That was what they saw last month,

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Speaker 4: and they continue to see dark times ahead.

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Speaker 5: And nearly three fourths of the respond then spontaneously mentioned

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Speaker 5: tariffs and that topic cross partisan lines. Can you tell

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Speaker 5: us what you thought of that.

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Speaker 4: We've been seeing a rising share of consumers spontaneously mention

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Speaker 4: spontaneously mentioning tariffs. A few months ago, it was really

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Speaker 4: a fairly small number of people, and now it's almost

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Speaker 4: three quarters. It's cutting across partisan lines. It's really on

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Speaker 4: everyone's minds, and at this point, consumers are really waiting

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Speaker 4: for the other shoe to drop in terms of its

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Speaker 4: impact on inflation. And it's not just the fact that

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Speaker 4: tariff policies have come in pretty high, but it's also

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Speaker 4: the uncertainty and instability of it. So falling this most

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Speaker 4: recent pause on some China terrafts, we saw a little

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Speaker 4: bit of improvement, but it really wasn't enough to reverse

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Speaker 4: the sour readings that we've been seeing for the last

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Speaker 4: few months.

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Speaker 2: The University of Michigan one year inflation outlook, the consensus

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Speaker 2: was six and a half percent, which is.

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Speaker 3: An elevated number.

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Speaker 2: Came in even higher than that, it's seven point three percent.

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Speaker 2: What's driving that.

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Speaker 4: Again, it's the uncertainty and instability of tariff policy. Consumers

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Speaker 4: are aware that inflation right now isn't necessarily reflecting those

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Speaker 4: terraffs yet, but they're waiting, they're really bracing for the impact.

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Speaker 4: And interestingly, the increases in both short and long run

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Speaker 4: inflation expectations were very much being driven by increases among Republicans.

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Speaker 4: So even those who might broadly be in agreement with

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Speaker 4: the president's economic policies are quite worried that the outlook

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Speaker 4: for inflation has worsened recently.

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Speaker 3: Joanne, thank you so much for that.

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Speaker 2: Joy and Shue Surveys of consumers director at the University

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Speaker 2: of Michigan. Again some significantly weaker than expected out look

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Speaker 2: from the you Mish survey, so we'll stay on top

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Speaker 2: of that.

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Speaker 1: Of course, you're listening to the Bloomberg Intelligence Podcast. Catch

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Speaker 1: us live weekdays at ten am Eastern on Applecarcklay and

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Speaker 1: Android Auto with the Bloomberg Business App. Listen on demand

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Speaker 1: wherever you get your podcasts, or watch us live on YouTube.

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Speaker 2: This is about Lady sitting in for Alextel on Paul

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Speaker 2: Sweeney Live here in our Bloomberg in Director Broker Studio

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Speaker 2: streaming live on YouTube as well. So news coming out

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Speaker 2: of the pharmaceutical space. Novo Nordisk is replacing its CEO

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Speaker 2: amid increased in competitions for its we govy OBCD shots

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Speaker 2: and a fifty three percent decline and the share presser

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Speaker 2: over the past twelve months. Boy, these socks are having

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Speaker 2: a tough time. They did so well during the pandemic

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Speaker 2: and everybody's trying to adjust post pandemic. It seems like

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Speaker 2: I'm thinking about United Healthcare as well. Mikey Shaw joins us.

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Speaker 2: He's a senior farmer farmer tech analysts for Bloomberg Intelligence.

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Speaker 3: He's in London.

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Speaker 2: He's one of a really really good analyst over there

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Speaker 2: in London, one of the best in the city covered

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Speaker 2: in this space.

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Speaker 3: He learned from an old guy, but he's the he's

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Speaker 3: the young guy, all right.

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Speaker 2: Michael shaff tellas what's going on at Novo. Is it

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Speaker 2: the CEO's problem or do they have a bigger issue?

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Speaker 6: Yeah, I mean they announced the decision today, certainly unexpected

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Speaker 6: by us. Seems a bit you know, abrupt to nature.

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Speaker 6: You know, NOA tends to be very steady in their approach,

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Speaker 6: but they also take you know, a long term approach

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Speaker 6: to things, So maybe they think, you know, Jorgenson can't

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Speaker 6: kind of steer the ship in light of the challenges

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Speaker 6: that they're facing, and that their duty to face as well.

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Speaker 6: You know, as I said, there's been a bit of

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Speaker 6: a turn in fortune since mid twenty four. Some of

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Speaker 6: that's been market challenges, some of that's been kind of

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Speaker 6: pipeline execution. In terms of the market challenges, I mean,

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Speaker 6: it's difficult to know kind of what the CEO is,

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Speaker 6: but you know how they were meant to kind of

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Speaker 6: react to that. So you know, you saw US policy

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Speaker 6: pressures or and then you also saw headwinds from j

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Speaker 6: LPE compounding due to you know, supply shortage, and then

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Speaker 6: on the pipeline side of things, you know, you had

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Speaker 6: underwhelming results for Cagary Semmer and then you also, you know,

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Speaker 6: we also had kind of reservations around a novel's or

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Speaker 6: all OBC strategy, so that was heavily focused on peptides.

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Speaker 6: You know, they've done a series of deals recently which

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Speaker 6: are now focused on oral small molecules. So that suggests

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Speaker 6: that perhaps not investing sooner in that space was perhaps

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Speaker 6: an oversight, and I think, you know, the move today

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Speaker 6: or the decision today, you know, really reaffirms kind of

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Speaker 6: perceptions that you know, while Novo had the first mover

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Speaker 6: advantage in obesity, you know, they certainly have lost ground

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Speaker 6: to Eli Lilly now, which looks like it has a

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Speaker 6: stronger abuse you're offering out of the two players.

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Speaker 5: What's interesting to me is how he will continue as

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Speaker 5: CEO for a period to support a smooth transition to

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Speaker 5: a new leadership. Quote. I mean Nova has only had

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Speaker 5: three CEOs. How will this affect sentiment? I mean, are

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Speaker 5: people more optimistic and reinvigorated that yes, maybe we can

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Speaker 5: finally have a turning point, or are they using feeling

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Speaker 5: a little bit more pessimistic because it sounds like they

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Speaker 5: really have a good culture.

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Speaker 6: Yeah, I mean that's the thing, all right. Yeah, I

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Speaker 6: said that the timing seemed a bit odd. Nova's obviously

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Speaker 6: you're expecting an uptic in GLP one in the second

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Speaker 6: half of the year, as as you see easing headwinds

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Speaker 6: from from compounding, So you know, I think the timing's

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Speaker 6: a bit weird. The last time they changed their CEO,

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Speaker 6: they announced the successor at the same time. That was Yogison. Say,

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Speaker 6: the switch between the Sorencefu and Yugason.

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Speaker 3: Today.

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Speaker 6: You know, they're basically just saying that they're reviewing internal

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Speaker 6: and external candidates, but the strategy remains unchanged. The fact

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Speaker 6: that they say the strategy remains unchanged makes us believe that,

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Speaker 6: you know, it's clearly an execution issue and that you know,

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Speaker 6: the board and the major shareholder, which is no both

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Speaker 6: Foundation through Novo Holdings have clearly kind of lost confidence

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Speaker 6: in in Jorginson.

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Speaker 2: So talk to us about the just kind of what

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Speaker 2: we're seeing in that weight loss drug market generally. Where

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Speaker 2: are we in this development, who are in how's it

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Speaker 2: kind of shaken out in terms of leaders in that marketplace?

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Speaker 6: Yeah, so I think I think Lily now is you know,

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Speaker 6: the clear leader. It's got the better portfolio, it's more

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Speaker 6: effective drug out there. What's going to be key going

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Speaker 6: forward now is there's going to be a lot of

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Speaker 6: focus on oral anti oral jp ones. So these fall

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Speaker 6: into two categories. One peptide, which is which is a

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Speaker 6: large molecule, and then you've got the small molecule such

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Speaker 6: an awful glippron, you know thing that awful get from,

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Speaker 6: which is Lily's assets. That's clearly got the better profile

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Speaker 6: when comparing that to Novo Nordice or Sema Glue Tide.

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Speaker 6: That's input part because one it's probably easy easier to

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Speaker 6: scale because of the type of molecule that it is,

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Speaker 6: and two you don't have these kind of strict dosing

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Speaker 6: criterias where you have to take it on an empty stomach,

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Speaker 6: et cetera, which you know, we think is the drawback

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Speaker 6: to convenience. Now, you know, we've seen kind of the

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Speaker 6: difficulties in kind of scaling up injectable GLP ones, we

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Speaker 6: don't envisage, you know, the same issue with withal or

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Speaker 6: molecule glp ones. So that would essentially, you know, allow

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Speaker 6: kind of you know, great penetration of of the of

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Speaker 6: the VS market.

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Speaker 5: The competition has definitely intensified, and Novo stock has more

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Speaker 5: than half in the past year. What about Trump's pharmatarists

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Speaker 5: that looms over the company as well.

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Speaker 6: Yeah, I think it leaves over Nova. I think it

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Speaker 6: looms over you know, drug companies as a whole. Yeah,

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Speaker 6: clearly negative. But also you know it's source of aol.

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Speaker 6: It is see there's no real detail on it, so

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Speaker 6: you know, it's difficult to kind of comment on the

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Speaker 6: potential impact that these tariffs could have and when they're

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Speaker 6: going to come in And you know, that's kind of

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Speaker 6: a commentary that we kind of heard over a large

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Speaker 6: farmers one key results too.

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Speaker 3: All right, Mikey, thank you so much for joining us.

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Speaker 2: Micro Shaw he covers all the pharmaceutical companies for Bloomberg

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Speaker 2: Intelligence over in London.

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Speaker 3: We hired Mikey when he was a young associate.

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Speaker 2: He did really well there, were promoted to analysts, did

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Speaker 2: really well there, got promoted.

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Speaker 3: To senior analysts.

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Speaker 2: Now he's one of the senior folks in the city

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Speaker 2: of London covering his big farmer companies and it's just

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Speaker 2: a great success story. And that's what Bloomberg Intelligence has

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Speaker 2: had a lot of success with, which is identifying and

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Speaker 2: nurturing young talent, and Mikey Shaw's certainly one of those

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Speaker 2: there and that's a great thing to see.

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Speaker 1: You're lesson to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, cock Play and

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Speaker 1: Android Auto with the Bloomberg Business app. Listen on demand

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Speaker 2: Big Big trade in the world of media and telecommunications.

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Speaker 2: Charter Comic Communication that's a public traded company. Find Cox Communications,

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Speaker 2: which is a privately held cable company. Thirty four and

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Speaker 2: a half billion dollars. It's a value on Cox. This

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Speaker 2: is a huge deal, folks, and we want to get

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Speaker 2: the latest. So we turned to Getha Ranganath and Bloomberg

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Speaker 2: Intelligence senior media analyst, Getha.

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Speaker 3: Big big deal was this? What does this do for Charter?

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Speaker 7: Here?

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Speaker 2: What's the rationale for Charter laying out this big, big

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Speaker 2: trade here?

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Speaker 8: Yeah? Absolutely, Paul, I mean yes, we were expecting something

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Speaker 8: to happen in the cable space. Remember, Charter right now

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Speaker 8: before this deal is the second largest broadband US broadband

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Speaker 8: provider with about thirty million subscribers. With this deal, what

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Speaker 8: happens is they really kind of get the catapult to

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Speaker 8: number one position edging past Comcast and having almost thirty

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Speaker 8: six million broadband subscribers. And really the rationale for the deal, Paul,

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Speaker 8: is that cable has been under intense pressure. So just

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Speaker 8: a few years ago, Cable completely dominated the broadband landscape

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Speaker 8: with about a sixty seven percent market share. They have

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Speaker 8: been losing share to the telecom players, the Verizons, the

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Speaker 8: T mobiles, and the AT and TS of the world

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Speaker 8: because those players have come out with a much cheaper

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Speaker 8: broadband solution with what is known as five G home

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Speaker 8: Internet or fixed wireless access is priced about twenty to

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Speaker 8: thirty percent lower than a cable broadband product. And you know,

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Speaker 8: they've also been ramping up their fiber rollouts, so a

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Speaker 8: cable kind of really facing it on both ends of

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Speaker 8: the spectrum in terms of competition. And this is really

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Speaker 8: just about them kind of gaining scales and better efficiencies

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Speaker 8: and operations.

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Speaker 5: So they've had talks about this more than a decade ago,

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Speaker 5: and too many people's point, isn't a surprise? What change

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Speaker 5: in that horizon? Like why was it not pushed through before?

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Speaker 5: And why are we seeing it happen right now?

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Speaker 8: I mean there have been multiple things, so, you know,

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Speaker 8: regulatory concerns have obviously been you know, one of the

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Speaker 8: foremost issues for the cable space. Remember just I think

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Speaker 8: just less than ten years ago in twenty sixteen, Comcast

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Speaker 8: tried to buy Time Warner Cable, failed in that transaction,

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Speaker 8: and then Chotter went ahead and then acquired you know,

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Speaker 8: Time Warner Cable. So regulatory issues have certainly been you know,

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Speaker 8: front and center, and I think you know right now.

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Speaker 8: The stimulus for this was really the fact that the

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Speaker 8: cable industry is kind of facing all of these challenges

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Speaker 8: from the telecoms, intense competitive challenges, and I think Cox

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Speaker 8: really saw this as a really good strategy for them

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Speaker 8: to you know, exit all right, So.

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Speaker 2: This begs the question and you mentioned earlier, what does

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Speaker 2: Comcast do here? Is there a response here from Comcasts

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Speaker 2: as strategic response here?

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Speaker 8: So Comcast actually already has a deal kind of in

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Speaker 8: the works in terms of their spinoff of their cable networks.

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Speaker 8: So that's on the media side of the business, that's

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Speaker 8: not on the cable side of the business. But they

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Speaker 8: are spinning off their cable networks. That should happen sometime

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Speaker 8: a little bit later this year. And the expectation, Paul

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Speaker 8: has been that once that deal happens, you know, once

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Speaker 8: they spin off that cable network's division into its own entity,

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Speaker 8: that will become a roll up for many other networks,

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Speaker 8: most notably you know, the Warner Brothers, Discovery networks, maybe

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Speaker 8: even you know, a smaller AMC networks. So really there's

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Speaker 8: been a lot more chatter for Comcast on the media

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Speaker 8: side rather than the cable side.

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Speaker 5: But We'll have to wait and watch when it comes

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Speaker 5: to anti trust. Do you think that it helps that

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Speaker 5: Charter cocks deal isn't a big tech company because we

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Speaker 5: know that competition officials, even Vice president Jdvance, have really

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Speaker 5: closely looked at that space.

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Speaker 8: Yeah, I think that definitely helps. Also, this is you know,

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Speaker 8: there is absolutely no overlap in terms of their footprint.

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Speaker 8: You know, cable is a very regional business, so again

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Speaker 8: this does not in any way hamper competition. It's actually

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Speaker 8: good for consumers. And the one thing that you know,

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Speaker 8: the Charter executives kept mentioning on the call was you

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Speaker 8: know they are basically going to create more jobs in America.

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Speaker 8: So this is, you know, good overall. So definitely, just

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Speaker 8: kind of given the size and scope of the transaction,

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Speaker 8: we don't really expect any big regulatory pushback.

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Speaker 3: All right, Keith rung Anathan, thank you so much.

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Speaker 2: We appreciate ta Keith rung Annas and she covers all

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Speaker 2: the media companies for Bloomberg Intelligencies based in Princeton, New Jersey.

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Speaker 3: Again a big, big deal.

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Speaker 2: Charter Communications HTR is the tigger buying privately held Cost

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Speaker 2: Communications for twenty one point nine billion.

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Speaker 3: Dollar equity value.

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Speaker 2: There's also a lot of debt in there, so the

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Speaker 2: enterprise values much higher. A big, big transaction that the

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Speaker 2: folks down in Atlanta, the Cox found have been a

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Speaker 2: long time family company, owning a wide variety of media assets,

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Speaker 2: newspapers like the Atlanta Constitution, radio stations, TV stations, cable.

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Speaker 3: Amongst other things. So this is a big, big transaction

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Speaker 3: for them.

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Speaker 2: They are getting out of the cable television business and

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Speaker 2: they're considered very, very smart operator, so that tells you

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Speaker 2: how tough that business is. And when they're saying they

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Speaker 2: cannot compete with their scale, so a big transaction in

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Speaker 2: that space.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Applecarcklay and Android Auto

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Speaker 1: get your podcasts, or watch us live on YouTube.

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Speaker 2: Hey, it's been a good week for Boeing. First, she

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Speaker 2: got a whole slew of orders, recording their biggest order

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Speaker 2: ever coming out.

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Speaker 3: Of the Mid East.

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Speaker 2: So a good revenue potential backlog for Boeing. And then

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Speaker 2: today there's reporting and we're to stay on top of it.

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Speaker 2: A couple of sources. Reuter says that Boeing is an

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Speaker 2: a tentative deal to avoid US prosecution, and the Wall

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Speaker 2: Street Journal reporting that the Justice Department wants to spare

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Speaker 2: Boeing from a guilty plea over seven thirty seven max charges.

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Speaker 2: So again, a potential really good piece of news for

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Speaker 2: Boeing stocks unchanged on the day, but it is up

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Speaker 2: fifteen percent you to date at a fifty two week high.

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Speaker 2: George Ferguson joins US. He covers the airlines, the aerospace companies,

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Speaker 2: including Boeing. Hey, George, this seems like a big deal

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Speaker 2: to me. How do you how do you read it?

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Speaker 9: Yeah, so I do think it's a good it's a

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Speaker 9: good situation when Boeing can avoid a felony conviction, which

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Speaker 9: I think ultimately was going to happen here before the

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Speaker 9: Justice Department, I guess, sort of stood down or didn't

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Speaker 9: care as much, and so, you know, there was a lot.

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Speaker 7: Of questions, I guess about whether or not.

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Speaker 9: A company that had been convicted of a felony could

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Speaker 9: be a government contractor.

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Speaker 7: I mean, my personal opinion was that Boeing.

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Speaker 9: Was just too important to the defense industrial complex to

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Speaker 9: not be allowed to be a defense contractor.

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Speaker 7: And so.

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Speaker 9: They would have found the Defense Department would have found

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Speaker 9: a way around it. And maybe that's one of the

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Speaker 9: reasons for a little bit of indifference in the marketplace

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Speaker 9: right now over it.

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Speaker 7: But I think in the long run it is a.

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Speaker 9: Really I think good thing for the company to avoid

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Speaker 9: having to be considered a fellon.

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Speaker 5: You made a good point that if you're a fellon,

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Speaker 5: you can't really have government contracts. Critics would say that

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Speaker 5: maybe the current administration probably had an influence on this.

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Speaker 5: What would you respond to that, And it's probably hard

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Speaker 5: to ignore given that. For instance, President Donald Trump said

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Speaker 5: that Boeing had some headaches, but it makes one of

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Speaker 5: the best planes quote in his remarks when he was

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Speaker 5: at the UAE.

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Speaker 7: Yeah, I mean it does feel that way to me.

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Speaker 9: And again, I think the challenge here is, look, but

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Speaker 9: Boeing did have some problems, clearly, you know, with the

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Speaker 9: seven thirty seven, and you know they were supposed to

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Speaker 9: put in place an overseer that was going to help

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Speaker 9: fix those problems.

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Speaker 7: I think there's a lot of focus.

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Speaker 9: On the company right now, and I do think it's

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Speaker 9: probably in the country's best interest not to impede its

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Speaker 9: ability to be a contractor again to DoD and to

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Speaker 9: other parts of the government. And so I'm looking little longer,

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Speaker 9: and I don't think we need the felony conviction in

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Speaker 9: order to make sure the right thing happens at Boeing,

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Speaker 9: and so, you know, so I'm sure.

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Speaker 7: I wouldn't throw too many films in this one.

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Speaker 2: With a little bit of a hindsight here put into

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Speaker 2: context Boeing's weak in terms of orders.

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Speaker 3: How big was it?

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Speaker 7: Yeah, no, it was a nice week.

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Speaker 9: So we we expect more of this to come. You know,

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Speaker 9: I really think as the administration goes out and focuses

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Speaker 9: on trade with the world and balance of payments, that

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Speaker 9: countries around the world are going to look for ways

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Speaker 9: to equalize that. And Boeing is one of the most

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Speaker 9: important exporters for the US and look there, and we've

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Speaker 9: reported the Bloomberg terminal.

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Speaker 7: About this, right there. Sales recently have definitely lagged, right.

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Speaker 9: I think as customers have watched the problems of Boeing,

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Speaker 9: watched the quality problems, the problems ramping up production, and

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Speaker 9: so they're probably is already a natural springback for a

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Speaker 9: pretty decent order year this year. Because again I think

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Speaker 9: some of those core customers they haven't moved on. They're

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Speaker 9: not going to buy air Bus. Their fleets a lot

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Speaker 9: of their fleets are primarily Boeing, so they want to

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Speaker 9: buy Boeing. It's in their best interest to buy Boeing,

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Speaker 9: but they just didn't want to get in the order

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Speaker 9: book right now because it was such a mess last year.

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Speaker 9: So I think that springback coupled with an administration that's

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Speaker 9: going to go around the world and say, hey, what

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Speaker 9: are you doing to balance payments with us? And you know,

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Speaker 9: and when countries go, I don't know, I guess we're

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Speaker 9: off sides. The administration shows them, I guess chips and

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Speaker 9: bowing airplanes and they go, okay, we'll take a bunch

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Speaker 9: of bowing airplanes. Anyways, I think, you know you're going

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Speaker 9: to see again more of this. So it was a

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Speaker 9: good week, but I think there's more to come, and

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Speaker 9: there's a spring back as well involved.

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Speaker 3: Here thirty second storage.

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Speaker 2: What's the run rate today on seven three seven deliveries

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Speaker 2: and where does it need to be?

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Speaker 9: And April we saw we think mid twenties going through

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Speaker 9: the factory.

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Speaker 7: I think that's pretty good. We'd like to be seeing mid.

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Speaker 9: Thirties by mid year, and we think they ought to

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Speaker 9: be able to break thirty eight by end of the year.

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Speaker 7: For seven thirty.

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Speaker 2: Seven, George excell appreciate you coming on short notice. George

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Speaker 2: Ferguson covers airlines and the aerospace companies for Bloomberg Intelligence.

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