WEBVTT - US Consumer Sentiment Nears Record Low on Inflation Concerns 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio, news, and Android auto with

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<v Speaker 2>On the economic from We've got some University of Michigan

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<v Speaker 2>sentiment data today, just coming out at ten am Wall

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<v Speaker 2>Street time.

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<v Speaker 3>Not good.

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<v Speaker 2>University of Michigan sentiment came out at fifty point eight.

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<v Speaker 2>Consensus was fifty three point four. Last period it was

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<v Speaker 2>fifty two point two. This is the second lowest rating

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<v Speaker 2>or measurement on record. Joann chu joins us here Surveys

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<v Speaker 2>of Consumers, Director at the University of Michigan. Johanne putting

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<v Speaker 2>in the context the numbers you guys.

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<v Speaker 4>Reported today, essentially we should think of this as very

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<v Speaker 4>little change from April. Over the course of this year,

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<v Speaker 4>we've seen consecutive months of very very strong declines. This

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<v Speaker 4>most recent one was a very small decline and essentially flat.

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<v Speaker 4>But as you pointed out, this is a very very

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<v Speaker 4>low reading. Consumers continue to feel very dour about the economy.

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<v Speaker 4>They're worried about the impact of tariffs on inflation and

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<v Speaker 4>also the impact on unemployment. They're really worried about multiple

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<v Speaker 4>dimensions of the economy. That was what they saw last month,

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<v Speaker 4>and they continue to see dark times ahead.

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<v Speaker 5>And nearly three fourths of the respond then spontaneously mentioned

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<v Speaker 5>tariffs and that topic cross partisan lines. Can you tell

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<v Speaker 5>us what you thought of that.

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<v Speaker 4>We've been seeing a rising share of consumers spontaneously mention

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<v Speaker 4>spontaneously mentioning tariffs. A few months ago, it was really

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<v Speaker 4>a fairly small number of people, and now it's almost

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<v Speaker 4>three quarters. It's cutting across partisan lines. It's really on

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<v Speaker 4>everyone's minds, and at this point, consumers are really waiting

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<v Speaker 4>for the other shoe to drop in terms of its

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<v Speaker 4>impact on inflation. And it's not just the fact that

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<v Speaker 4>tariff policies have come in pretty high, but it's also

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<v Speaker 4>the uncertainty and instability of it. So falling this most

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<v Speaker 4>recent pause on some China terrafts, we saw a little

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<v Speaker 4>bit of improvement, but it really wasn't enough to reverse

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<v Speaker 4>the sour readings that we've been seeing for the last

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<v Speaker 4>few months.

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<v Speaker 2>The University of Michigan one year inflation outlook, the consensus

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<v Speaker 2>was six and a half percent, which is.

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<v Speaker 3>An elevated number.

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

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<v Speaker 2>What's driving that.

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

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<v Speaker 4>are aware that inflation right now isn't necessarily reflecting those

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

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<v Speaker 4>And interestingly, the increases in both short and long run

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<v Speaker 4>inflation expectations were very much being driven by increases among Republicans.

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<v Speaker 4>So even those who might broadly be in agreement with

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<v Speaker 4>the president's economic policies are quite worried that the outlook

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<v Speaker 4>for inflation has worsened recently.

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<v Speaker 3>Joanne, thank you so much for that.

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<v Speaker 2>Joy and Shue Surveys of consumers director at the University

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<v Speaker 2>of Michigan. Again some significantly weaker than expected out look

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<v Speaker 2>from the you Mish survey, so we'll stay on top

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<v Speaker 2>of that.

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

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<v Speaker 1>us live weekdays at ten am Eastern on Applecarcklay and

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<v Speaker 2>This is about Lady sitting in for Alextel on Paul

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<v Speaker 2>Sweeney Live here in our Bloomberg in Director Broker Studio

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<v Speaker 2>streaming live on YouTube as well. So news coming out

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<v Speaker 2>of the pharmaceutical space. Novo Nordisk is replacing its CEO

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<v Speaker 2>amid increased in competitions for its we govy OBCD shots

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<v Speaker 2>and a fifty three percent decline and the share presser

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<v Speaker 2>over the past twelve months. Boy, these socks are having

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<v Speaker 2>a tough time. They did so well during the pandemic

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<v Speaker 2>and everybody's trying to adjust post pandemic. It seems like

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

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<v Speaker 2>He's a senior farmer farmer tech analysts for Bloomberg Intelligence.

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<v Speaker 3>He's in London.

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<v Speaker 2>He's one of a really really good analyst over there

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<v Speaker 2>in London, one of the best in the city covered

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<v Speaker 2>in this space.

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<v Speaker 3>He learned from an old guy, but he's the he's

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<v Speaker 3>the young guy, all right.

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<v Speaker 2>Michael shaff tellas what's going on at Novo. Is it

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<v Speaker 2>the CEO's problem or do they have a bigger issue?

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<v Speaker 6>Yeah, I mean they announced the decision today, certainly unexpected

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<v Speaker 6>by us. Seems a bit you know, abrupt to nature.

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<v Speaker 6>You know, NOA tends to be very steady in their approach,

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<v Speaker 6>but they also take you know, a long term approach

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<v Speaker 6>to things, So maybe they think, you know, Jorgenson can't

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<v Speaker 6>kind of steer the ship in light of the challenges

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

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<v Speaker 6>You know, as I said, there's been a bit of

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<v Speaker 6>a turn in fortune since mid twenty four. Some of

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<v Speaker 6>that's been market challenges, some of that's been kind of

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<v Speaker 6>pipeline execution. In terms of the market challenges, I mean,

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<v Speaker 6>it's difficult to know kind of what the CEO is,

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<v Speaker 6>but you know how they were meant to kind of

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<v Speaker 6>react to that. So you know, you saw US policy

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<v Speaker 6>pressures or and then you also saw headwinds from j

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<v Speaker 6>LPE compounding due to you know, supply shortage, and then

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<v Speaker 6>on the pipeline side of things, you know, you had

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<v Speaker 6>underwhelming results for Cagary Semmer and then you also, you know,

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<v Speaker 6>we also had kind of reservations around a novel's or

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<v Speaker 6>all OBC strategy, so that was heavily focused on peptides.

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<v Speaker 6>You know, they've done a series of deals recently which

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<v Speaker 6>are now focused on oral small molecules. So that suggests

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<v Speaker 6>that perhaps not investing sooner in that space was perhaps

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<v Speaker 6>an oversight, and I think, you know, the move today

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<v Speaker 6>or the decision today, you know, really reaffirms kind of

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<v Speaker 6>perceptions that you know, while Novo had the first mover

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<v Speaker 6>advantage in obesity, you know, they certainly have lost ground

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<v Speaker 6>to Eli Lilly now, which looks like it has a

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<v Speaker 6>stronger abuse you're offering out of the two players.

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<v Speaker 5>What's interesting to me is how he will continue as

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<v Speaker 5>CEO for a period to support a smooth transition to

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<v Speaker 5>a new leadership. Quote. I mean Nova has only had

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<v Speaker 5>three CEOs. How will this affect sentiment? I mean, are

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<v Speaker 5>people more optimistic and reinvigorated that yes, maybe we can

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<v Speaker 5>finally have a turning point, or are they using feeling

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<v Speaker 5>a little bit more pessimistic because it sounds like they

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<v Speaker 5>really have a good culture.

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<v Speaker 6>Yeah, I mean that's the thing, all right. Yeah, I

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<v Speaker 6>said that the timing seemed a bit odd. Nova's obviously

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<v Speaker 6>you're expecting an uptic in GLP one in the second

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<v Speaker 6>half of the year, as as you see easing headwinds

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<v Speaker 6>from from compounding, So you know, I think the timing's

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<v Speaker 6>a bit weird. The last time they changed their CEO,

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<v Speaker 6>they announced the successor at the same time. That was Yogison. Say,

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<v Speaker 6>the switch between the Sorencefu and Yugason.

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<v Speaker 3>Today.

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<v Speaker 6>You know, they're basically just saying that they're reviewing internal

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<v Speaker 6>and external candidates, but the strategy remains unchanged. The fact

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<v Speaker 6>that they say the strategy remains unchanged makes us believe that,

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<v Speaker 6>you know, it's clearly an execution issue and that you know,

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<v Speaker 6>the board and the major shareholder, which is no both

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<v Speaker 6>Foundation through Novo Holdings have clearly kind of lost confidence

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<v Speaker 6>in in Jorginson.

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<v Speaker 2>So talk to us about the just kind of what

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<v Speaker 2>we're seeing in that weight loss drug market generally. Where

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<v Speaker 2>are we in this development, who are in how's it

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<v Speaker 2>kind of shaken out in terms of leaders in that marketplace?

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<v Speaker 6>Yeah, so I think I think Lily now is you know,

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<v Speaker 6>the clear leader. It's got the better portfolio, it's more

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<v Speaker 6>effective drug out there. What's going to be key going

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<v Speaker 6>forward now is there's going to be a lot of

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<v Speaker 6>focus on oral anti oral jp ones. So these fall

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<v Speaker 6>into two categories. One peptide, which is which is a

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<v Speaker 6>large molecule, and then you've got the small molecule such

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<v Speaker 6>an awful glippron, you know thing that awful get from,

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<v Speaker 6>which is Lily's assets. That's clearly got the better profile

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<v Speaker 6>when comparing that to Novo Nordice or Sema Glue Tide.

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<v Speaker 6>That's input part because one it's probably easy easier to

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<v Speaker 6>scale because of the type of molecule that it is,

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<v Speaker 6>and two you don't have these kind of strict dosing

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<v Speaker 6>criterias where you have to take it on an empty stomach,

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<v Speaker 6>et cetera, which you know, we think is the drawback

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

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<v Speaker 6>difficulties in kind of scaling up injectable GLP ones, we

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<v Speaker 6>don't envisage, you know, the same issue with withal or

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<v Speaker 6>molecule glp ones. So that would essentially, you know, allow

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<v Speaker 6>kind of you know, great penetration of of the of

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<v Speaker 6>the VS market.

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<v Speaker 5>The competition has definitely intensified, and Novo stock has more

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<v Speaker 5>than half in the past year. What about Trump's pharmatarists

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<v Speaker 5>that looms over the company as well.

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<v Speaker 6>Yeah, I think it leaves over Nova. I think it

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<v Speaker 6>looms over you know, drug companies as a whole. Yeah,

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<v Speaker 6>clearly negative. But also you know it's source of aol.

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<v Speaker 6>It is see there's no real detail on it, so

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<v Speaker 6>you know, it's difficult to kind of comment on the

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<v Speaker 6>potential impact that these tariffs could have and when they're

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<v Speaker 6>going to come in And you know, that's kind of

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<v Speaker 6>a commentary that we kind of heard over a large

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<v Speaker 6>farmers one key results too.

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<v Speaker 3>All right, Mikey, thank you so much for joining us.

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<v Speaker 2>Micro Shaw he covers all the pharmaceutical companies for Bloomberg

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<v Speaker 2>Intelligence over in London.

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<v Speaker 3>We hired Mikey when he was a young associate.

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<v Speaker 2>He did really well there, were promoted to analysts, did

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<v Speaker 2>really well there, got promoted.

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<v Speaker 3>To senior analysts.

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<v Speaker 2>Now he's one of the senior folks in the city

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<v Speaker 2>of London covering his big farmer companies and it's just

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<v Speaker 2>a great success story. And that's what Bloomberg Intelligence has

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<v Speaker 2>had a lot of success with, which is identifying and

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<v Speaker 2>nurturing young talent, and Mikey Shaw's certainly one of those

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<v Speaker 2>there and that's a great thing to see.

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<v Speaker 1>You're lesson to the Bloomberg Intelligence podcast. Catch us live

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<v Speaker 1>weekdays at ten am Eastern on Apple, cock Play and

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<v Speaker 1>Android Auto with the Bloomberg Business app. Listen on demand

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<v Speaker 2>Big Big trade in the world of media and telecommunications.

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

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<v Speaker 2>which is a privately held cable company. Thirty four and

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<v Speaker 2>a half billion dollars. It's a value on Cox. This

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<v Speaker 2>is a huge deal, folks, and we want to get

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<v Speaker 2>the latest. So we turned to Getha Ranganath and Bloomberg

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<v Speaker 2>Intelligence senior media analyst, Getha.

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<v Speaker 3>Big big deal was this? What does this do for Charter?

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<v Speaker 7>Here?

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<v Speaker 2>What's the rationale for Charter laying out this big, big

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<v Speaker 2>trade here?

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<v Speaker 8>Yeah? Absolutely, Paul, I mean yes, we were expecting something

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<v Speaker 8>to happen in the cable space. Remember, Charter right now

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<v Speaker 8>before this deal is the second largest broadband US broadband

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<v Speaker 8>provider with about thirty million subscribers. With this deal, what

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<v Speaker 8>happens is they really kind of get the catapult to

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<v Speaker 8>number one position edging past Comcast and having almost thirty

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<v Speaker 8>six million broadband subscribers. And really the rationale for the deal, Paul,

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<v Speaker 8>is that cable has been under intense pressure. So just

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<v Speaker 8>a few years ago, Cable completely dominated the broadband landscape

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<v Speaker 8>with about a sixty seven percent market share. They have

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<v Speaker 8>been losing share to the telecom players, the Verizons, the

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<v Speaker 8>T mobiles, and the AT and TS of the world

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<v Speaker 8>because those players have come out with a much cheaper

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<v Speaker 8>broadband solution with what is known as five G home

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<v Speaker 8>Internet or fixed wireless access is priced about twenty to

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<v Speaker 8>thirty percent lower than a cable broadband product. And you know,

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<v Speaker 8>they've also been ramping up their fiber rollouts, so a

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<v Speaker 8>cable kind of really facing it on both ends of

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<v Speaker 8>the spectrum in terms of competition. And this is really

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<v Speaker 8>just about them kind of gaining scales and better efficiencies

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<v Speaker 8>and operations.

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

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

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<v Speaker 5>in that horizon? Like why was it not pushed through before?

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<v Speaker 5>And why are we seeing it happen right now?

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<v Speaker 8>I mean there have been multiple things, so, you know,

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<v Speaker 8>regulatory concerns have obviously been you know, one of the

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<v Speaker 8>foremost issues for the cable space. Remember just I think

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<v Speaker 8>just less than ten years ago in twenty sixteen, Comcast

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<v Speaker 8>tried to buy Time Warner Cable, failed in that transaction,

0:12:23.520 --> 0:12:25.920
<v Speaker 8>and then Chotter went ahead and then acquired you know,

0:12:26.000 --> 0:12:29.920
<v Speaker 8>Time Warner Cable. So regulatory issues have certainly been you know,

0:12:30.040 --> 0:12:33.280
<v Speaker 8>front and center, and I think you know right now.

0:12:34.679 --> 0:12:37.640
<v Speaker 8>The stimulus for this was really the fact that the

0:12:37.640 --> 0:12:41.440
<v Speaker 8>cable industry is kind of facing all of these challenges

0:12:41.480 --> 0:12:46.440
<v Speaker 8>from the telecoms, intense competitive challenges, and I think Cox

0:12:46.480 --> 0:12:49.640
<v Speaker 8>really saw this as a really good strategy for them

0:12:50.240 --> 0:12:52.839
<v Speaker 8>to you know, exit all right, So.

0:12:52.880 --> 0:12:57.000
<v Speaker 2>This begs the question and you mentioned earlier, what does

0:12:57.080 --> 0:12:59.880
<v Speaker 2>Comcast do here? Is there a response here from Comcasts

0:12:59.720 --> 0:13:02.000
<v Speaker 2>as strategic response here?

0:13:03.440 --> 0:13:07.640
<v Speaker 8>So Comcast actually already has a deal kind of in

0:13:07.679 --> 0:13:10.760
<v Speaker 8>the works in terms of their spinoff of their cable networks.

0:13:10.760 --> 0:13:12.280
<v Speaker 8>So that's on the media side of the business, that's

0:13:12.320 --> 0:13:14.199
<v Speaker 8>not on the cable side of the business. But they

0:13:14.200 --> 0:13:17.319
<v Speaker 8>are spinning off their cable networks. That should happen sometime

0:13:17.400 --> 0:13:20.960
<v Speaker 8>a little bit later this year. And the expectation, Paul

0:13:21.000 --> 0:13:23.760
<v Speaker 8>has been that once that deal happens, you know, once

0:13:23.760 --> 0:13:28.080
<v Speaker 8>they spin off that cable network's division into its own entity,

0:13:28.559 --> 0:13:32.400
<v Speaker 8>that will become a roll up for many other networks,

0:13:32.440 --> 0:13:35.680
<v Speaker 8>most notably you know, the Warner Brothers, Discovery networks, maybe

0:13:35.720 --> 0:13:38.480
<v Speaker 8>even you know, a smaller AMC networks. So really there's

0:13:38.520 --> 0:13:41.679
<v Speaker 8>been a lot more chatter for Comcast on the media

0:13:41.720 --> 0:13:43.319
<v Speaker 8>side rather than the cable side.

0:13:43.840 --> 0:13:46.400
<v Speaker 5>But We'll have to wait and watch when it comes

0:13:46.400 --> 0:13:48.079
<v Speaker 5>to anti trust. Do you think that it helps that

0:13:48.320 --> 0:13:51.560
<v Speaker 5>Charter cocks deal isn't a big tech company because we

0:13:51.640 --> 0:13:55.720
<v Speaker 5>know that competition officials, even Vice president Jdvance, have really

0:13:55.720 --> 0:13:56.920
<v Speaker 5>closely looked at that space.

0:13:58.080 --> 0:14:01.040
<v Speaker 8>Yeah, I think that definitely helps. Also, this is you know,

0:14:01.080 --> 0:14:04.599
<v Speaker 8>there is absolutely no overlap in terms of their footprint.

0:14:05.320 --> 0:14:08.960
<v Speaker 8>You know, cable is a very regional business, so again

0:14:09.000 --> 0:14:12.000
<v Speaker 8>this does not in any way hamper competition. It's actually

0:14:12.040 --> 0:14:15.200
<v Speaker 8>good for consumers. And the one thing that you know,

0:14:15.320 --> 0:14:18.000
<v Speaker 8>the Charter executives kept mentioning on the call was you

0:14:18.000 --> 0:14:21.359
<v Speaker 8>know they are basically going to create more jobs in America.

0:14:21.440 --> 0:14:25.320
<v Speaker 8>So this is, you know, good overall. So definitely, just

0:14:25.400 --> 0:14:27.840
<v Speaker 8>kind of given the size and scope of the transaction,

0:14:27.920 --> 0:14:31.600
<v Speaker 8>we don't really expect any big regulatory pushback.

0:14:32.280 --> 0:14:33.960
<v Speaker 3>All right, Keith rung Anathan, thank you so much.

0:14:34.000 --> 0:14:36.160
<v Speaker 2>We appreciate ta Keith rung Annas and she covers all

0:14:36.160 --> 0:14:41.280
<v Speaker 2>the media companies for Bloomberg Intelligencies based in Princeton, New Jersey.

0:14:41.320 --> 0:14:42.280
<v Speaker 3>Again a big, big deal.

0:14:42.400 --> 0:14:47.560
<v Speaker 2>Charter Communications HTR is the tigger buying privately held Cost

0:14:47.640 --> 0:14:51.400
<v Speaker 2>Communications for twenty one point nine billion.

0:14:51.160 --> 0:14:52.080
<v Speaker 3>Dollar equity value.

0:14:52.080 --> 0:14:53.440
<v Speaker 2>There's also a lot of debt in there, so the

0:14:53.560 --> 0:14:58.400
<v Speaker 2>enterprise values much higher. A big, big transaction that the

0:14:58.440 --> 0:15:00.800
<v Speaker 2>folks down in Atlanta, the Cox found have been a

0:15:01.000 --> 0:15:06.320
<v Speaker 2>long time family company, owning a wide variety of media assets,

0:15:06.840 --> 0:15:10.800
<v Speaker 2>newspapers like the Atlanta Constitution, radio stations, TV stations, cable.

0:15:11.520 --> 0:15:14.600
<v Speaker 3>Amongst other things. So this is a big, big transaction

0:15:14.760 --> 0:15:15.120
<v Speaker 3>for them.

0:15:15.320 --> 0:15:19.040
<v Speaker 2>They are getting out of the cable television business and

0:15:19.240 --> 0:15:22.240
<v Speaker 2>they're considered very, very smart operator, so that tells you

0:15:23.040 --> 0:15:25.640
<v Speaker 2>how tough that business is. And when they're saying they

0:15:25.680 --> 0:15:28.880
<v Speaker 2>cannot compete with their scale, so a big transaction in

0:15:28.920 --> 0:15:29.360
<v Speaker 2>that space.

0:15:31.200 --> 0:15:34.920
<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

0:15:35.000 --> 0:15:38.360
<v Speaker 1>weekdays at ten am Eastern on Applecarcklay and Android Auto

0:15:38.480 --> 0:15:41.560
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0:15:41.560 --> 0:15:44.560
<v Speaker 1>get your podcasts, or watch us live on YouTube.

0:15:45.120 --> 0:15:48.160
<v Speaker 2>Hey, it's been a good week for Boeing. First, she

0:15:48.240 --> 0:15:50.640
<v Speaker 2>got a whole slew of orders, recording their biggest order

0:15:50.680 --> 0:15:51.480
<v Speaker 2>ever coming out.

0:15:51.360 --> 0:15:52.120
<v Speaker 3>Of the Mid East.

0:15:52.160 --> 0:15:56.440
<v Speaker 2>So a good revenue potential backlog for Boeing. And then

0:15:56.440 --> 0:15:58.800
<v Speaker 2>today there's reporting and we're to stay on top of it.

0:15:58.840 --> 0:16:01.880
<v Speaker 2>A couple of sources. Reuter says that Boeing is an

0:16:01.880 --> 0:16:05.600
<v Speaker 2>a tentative deal to avoid US prosecution, and the Wall

0:16:05.640 --> 0:16:08.200
<v Speaker 2>Street Journal reporting that the Justice Department wants to spare

0:16:08.240 --> 0:16:12.400
<v Speaker 2>Boeing from a guilty plea over seven thirty seven max charges.

0:16:12.440 --> 0:16:15.480
<v Speaker 2>So again, a potential really good piece of news for

0:16:15.600 --> 0:16:18.000
<v Speaker 2>Boeing stocks unchanged on the day, but it is up

0:16:18.040 --> 0:16:20.800
<v Speaker 2>fifteen percent you to date at a fifty two week high.

0:16:20.840 --> 0:16:24.000
<v Speaker 2>George Ferguson joins US. He covers the airlines, the aerospace companies,

0:16:24.040 --> 0:16:26.920
<v Speaker 2>including Boeing. Hey, George, this seems like a big deal

0:16:26.960 --> 0:16:28.440
<v Speaker 2>to me. How do you how do you read it?

0:16:30.080 --> 0:16:33.040
<v Speaker 9>Yeah, so I do think it's a good it's a

0:16:33.040 --> 0:16:37.960
<v Speaker 9>good situation when Boeing can avoid a felony conviction, which

0:16:38.000 --> 0:16:42.640
<v Speaker 9>I think ultimately was going to happen here before the

0:16:42.760 --> 0:16:45.400
<v Speaker 9>Justice Department, I guess, sort of stood down or didn't

0:16:45.400 --> 0:16:48.920
<v Speaker 9>care as much, and so, you know, there was a lot.

0:16:48.840 --> 0:16:50.680
<v Speaker 7>Of questions, I guess about whether or not.

0:16:51.240 --> 0:16:54.520
<v Speaker 9>A company that had been convicted of a felony could

0:16:54.520 --> 0:16:56.080
<v Speaker 9>be a government contractor.

0:16:56.480 --> 0:17:00.040
<v Speaker 7>I mean, my personal opinion was that Boeing.

0:16:59.800 --> 0:17:03.720
<v Speaker 9>Was just too important to the defense industrial complex to

0:17:03.880 --> 0:17:07.280
<v Speaker 9>not be allowed to be a defense contractor.

0:17:06.760 --> 0:17:07.080
<v Speaker 7>And so.

0:17:08.680 --> 0:17:10.520
<v Speaker 9>They would have found the Defense Department would have found

0:17:10.520 --> 0:17:14.000
<v Speaker 9>a way around it. And maybe that's one of the

0:17:14.040 --> 0:17:17.399
<v Speaker 9>reasons for a little bit of indifference in the marketplace

0:17:17.480 --> 0:17:18.399
<v Speaker 9>right now over it.

0:17:18.480 --> 0:17:21.960
<v Speaker 7>But I think in the long run it is a.

0:17:21.920 --> 0:17:24.280
<v Speaker 9>Really I think good thing for the company to avoid

0:17:24.359 --> 0:17:26.600
<v Speaker 9>having to be considered a fellon.

0:17:27.600 --> 0:17:29.720
<v Speaker 5>You made a good point that if you're a fellon,

0:17:30.600 --> 0:17:33.640
<v Speaker 5>you can't really have government contracts. Critics would say that

0:17:34.280 --> 0:17:37.320
<v Speaker 5>maybe the current administration probably had an influence on this.

0:17:37.480 --> 0:17:40.240
<v Speaker 5>What would you respond to that, And it's probably hard

0:17:40.280 --> 0:17:42.880
<v Speaker 5>to ignore given that. For instance, President Donald Trump said

0:17:42.880 --> 0:17:45.919
<v Speaker 5>that Boeing had some headaches, but it makes one of

0:17:45.920 --> 0:17:49.119
<v Speaker 5>the best planes quote in his remarks when he was

0:17:49.160 --> 0:17:49.840
<v Speaker 5>at the UAE.

0:17:50.880 --> 0:17:53.240
<v Speaker 7>Yeah, I mean it does feel that way to me.

0:17:53.960 --> 0:17:56.320
<v Speaker 9>And again, I think the challenge here is, look, but

0:17:56.480 --> 0:18:00.720
<v Speaker 9>Boeing did have some problems, clearly, you know, with the

0:18:00.760 --> 0:18:04.639
<v Speaker 9>seven thirty seven, and you know they were supposed to

0:18:04.680 --> 0:18:07.720
<v Speaker 9>put in place an overseer that was going to help

0:18:07.760 --> 0:18:09.000
<v Speaker 9>fix those problems.

0:18:10.040 --> 0:18:11.840
<v Speaker 7>I think there's a lot of focus.

0:18:11.520 --> 0:18:13.840
<v Speaker 9>On the company right now, and I do think it's

0:18:13.880 --> 0:18:18.160
<v Speaker 9>probably in the country's best interest not to impede its

0:18:18.200 --> 0:18:22.480
<v Speaker 9>ability to be a contractor again to DoD and to

0:18:22.600 --> 0:18:26.440
<v Speaker 9>other parts of the government. And so I'm looking little longer,

0:18:26.440 --> 0:18:29.080
<v Speaker 9>and I don't think we need the felony conviction in

0:18:29.160 --> 0:18:31.080
<v Speaker 9>order to make sure the right thing happens at Boeing,

0:18:31.160 --> 0:18:35.080
<v Speaker 9>and so, you know, so I'm sure.

0:18:34.920 --> 0:18:36.560
<v Speaker 7>I wouldn't throw too many films in this one.

0:18:36.720 --> 0:18:39.000
<v Speaker 2>With a little bit of a hindsight here put into

0:18:39.080 --> 0:18:42.760
<v Speaker 2>context Boeing's weak in terms of orders.

0:18:43.880 --> 0:18:45.200
<v Speaker 3>How big was it?

0:18:46.600 --> 0:18:48.040
<v Speaker 7>Yeah, no, it was a nice week.

0:18:48.119 --> 0:18:54.399
<v Speaker 9>So we we expect more of this to come. You know,

0:18:54.440 --> 0:18:57.639
<v Speaker 9>I really think as the administration goes out and focuses

0:18:57.840 --> 0:19:02.080
<v Speaker 9>on trade with the world and balance of payments, that

0:19:02.520 --> 0:19:04.680
<v Speaker 9>countries around the world are going to look for ways

0:19:04.720 --> 0:19:07.919
<v Speaker 9>to equalize that. And Boeing is one of the most

0:19:07.920 --> 0:19:13.440
<v Speaker 9>important exporters for the US and look there, and we've

0:19:13.520 --> 0:19:14.960
<v Speaker 9>reported the Bloomberg terminal.

0:19:14.680 --> 0:19:20.160
<v Speaker 7>About this, right there. Sales recently have definitely lagged, right.

0:19:20.119 --> 0:19:23.359
<v Speaker 9>I think as customers have watched the problems of Boeing,

0:19:23.400 --> 0:19:26.840
<v Speaker 9>watched the quality problems, the problems ramping up production, and

0:19:26.880 --> 0:19:32.240
<v Speaker 9>so they're probably is already a natural springback for a

0:19:32.280 --> 0:19:36.040
<v Speaker 9>pretty decent order year this year. Because again I think

0:19:36.200 --> 0:19:38.600
<v Speaker 9>some of those core customers they haven't moved on. They're

0:19:38.640 --> 0:19:41.080
<v Speaker 9>not going to buy air Bus. Their fleets a lot

0:19:41.080 --> 0:19:43.879
<v Speaker 9>of their fleets are primarily Boeing, so they want to

0:19:43.880 --> 0:19:46.119
<v Speaker 9>buy Boeing. It's in their best interest to buy Boeing,

0:19:46.400 --> 0:19:47.760
<v Speaker 9>but they just didn't want to get in the order

0:19:47.760 --> 0:19:50.080
<v Speaker 9>book right now because it was such a mess last year.

0:19:51.000 --> 0:19:54.600
<v Speaker 9>So I think that springback coupled with an administration that's

0:19:54.640 --> 0:19:56.879
<v Speaker 9>going to go around the world and say, hey, what

0:19:56.960 --> 0:20:00.600
<v Speaker 9>are you doing to balance payments with us? And you know,

0:20:00.640 --> 0:20:03.040
<v Speaker 9>and when countries go, I don't know, I guess we're

0:20:03.040 --> 0:20:06.120
<v Speaker 9>off sides. The administration shows them, I guess chips and

0:20:06.480 --> 0:20:08.360
<v Speaker 9>bowing airplanes and they go, okay, we'll take a bunch

0:20:08.359 --> 0:20:11.879
<v Speaker 9>of bowing airplanes. Anyways, I think, you know you're going

0:20:11.960 --> 0:20:14.199
<v Speaker 9>to see again more of this. So it was a

0:20:14.240 --> 0:20:17.399
<v Speaker 9>good week, but I think there's more to come, and

0:20:17.480 --> 0:20:20.240
<v Speaker 9>there's a spring back as well involved.

0:20:19.800 --> 0:20:21.200
<v Speaker 3>Here thirty second storage.

0:20:21.200 --> 0:20:24.280
<v Speaker 2>What's the run rate today on seven three seven deliveries

0:20:24.600 --> 0:20:25.640
<v Speaker 2>and where does it need to be?

0:20:26.600 --> 0:20:29.760
<v Speaker 9>And April we saw we think mid twenties going through

0:20:29.800 --> 0:20:30.360
<v Speaker 9>the factory.

0:20:30.400 --> 0:20:33.440
<v Speaker 7>I think that's pretty good. We'd like to be seeing mid.

0:20:33.520 --> 0:20:36.800
<v Speaker 9>Thirties by mid year, and we think they ought to

0:20:36.800 --> 0:20:39.080
<v Speaker 9>be able to break thirty eight by end of the year.

0:20:39.119 --> 0:20:40.040
<v Speaker 7>For seven thirty.

0:20:39.840 --> 0:20:43.240
<v Speaker 2>Seven, George excell appreciate you coming on short notice. George

0:20:43.240 --> 0:20:47.280
<v Speaker 2>Ferguson covers airlines and the aerospace companies for Bloomberg Intelligence.

0:20:47.920 --> 0:20:52.600
<v Speaker 1>This is the Bloomberg Intelligence podcast, available on Apple, Spotify,

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0:21:00.160 --> 0:21:03.680
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0:21:04.119 --> 0:21:07.040
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