1 00:00:00,280 --> 00:00:11,760 Speaker 1: Bloomberg Audio, Studios, podcasts, radio news. This is Bloomberg Intelligence 2 00:00:11,840 --> 00:00:13,920 Speaker 1: with Scarletfoo and Paul Sweeney. 3 00:00:14,000 --> 00:00:16,080 Speaker 2: How do you think the FED is looking at tariffs? 4 00:00:16,239 --> 00:00:17,440 Speaker 2: The uncertainty of terriffs. 5 00:00:17,560 --> 00:00:20,000 Speaker 3: Let's take a look at the sectors and how they performed. 6 00:00:20,040 --> 00:00:22,520 Speaker 2: A lot of investors getting whipsaled every day by news. 7 00:00:22,400 --> 00:00:26,520 Speaker 1: Events, breaking market headlines, and corporate news from across the globe. 8 00:00:26,560 --> 00:00:29,080 Speaker 3: Could we see a market disruption of market event? 9 00:00:29,240 --> 00:00:31,280 Speaker 2: So people just too exuberant out there? 10 00:00:31,400 --> 00:00:33,920 Speaker 3: You see some so called low quality stocks driving this 11 00:00:34,040 --> 00:00:34,800 Speaker 3: short term rally. 12 00:00:34,840 --> 00:00:40,320 Speaker 1: Bloomberg Intelligence with Scarletfoo and Paul Sweeney on Bloomberg Radio, YouTube, 13 00:00:40,360 --> 00:00:41,720 Speaker 1: and Bloomberg Originals. 14 00:00:42,840 --> 00:00:45,159 Speaker 2: On today's Bloomberg Intelligence Show, we dig inside the big 15 00:00:45,200 --> 00:00:48,320 Speaker 2: business stories impacting Wall Street and the global markets. Each 16 00:00:48,320 --> 00:00:50,560 Speaker 2: and every week, we provide in depth research and data 17 00:00:50,560 --> 00:00:52,600 Speaker 2: on some of the two thousand companies and one hundred 18 00:00:52,600 --> 00:00:55,800 Speaker 2: and thirty industries our animalts cover worldwide. Today, we'll look 19 00:00:55,800 --> 00:00:58,520 Speaker 2: at why the Trump administration is warning about tiele on 20 00:00:58,560 --> 00:01:01,360 Speaker 2: all use during pregnancy. Plus we'll look at what's in 21 00:01:01,480 --> 00:01:05,280 Speaker 2: store for the telecommunications company T Mobile after naming a 22 00:01:05,319 --> 00:01:08,839 Speaker 2: new CEO. But first we begin in the anti trust Space. 23 00:01:09,080 --> 00:01:11,800 Speaker 2: We recently heard that the US Federal Trade Commission and 24 00:01:11,840 --> 00:01:15,119 Speaker 2: seven states have sued Live Nation Entertainment and its ticket 25 00:01:15,160 --> 00:01:17,959 Speaker 2: Master subsidiary. It's for failing to prevent the use of 26 00:01:18,000 --> 00:01:21,680 Speaker 2: automated ticketing bots and large scale resale operations. From more 27 00:01:21,880 --> 00:01:24,280 Speaker 2: co hosts, Scarlettfield and I were joined by Jennifer Ree, 28 00:01:24,319 --> 00:01:28,400 Speaker 2: Bloomberg Intelligence Senior litigation analyst. We first asked for Jens 29 00:01:28,480 --> 00:01:30,200 Speaker 2: first impressions on the latest news. 30 00:01:30,600 --> 00:01:32,440 Speaker 4: Well, I think, first of all, not too much of 31 00:01:32,440 --> 00:01:35,440 Speaker 4: a surprise, because they did recently sue a much smaller 32 00:01:35,560 --> 00:01:38,800 Speaker 4: entity over the same law, which is called the Better 33 00:01:38,800 --> 00:01:42,240 Speaker 4: Ticketing Online Sales Act or the Bots Act, and Live 34 00:01:42,319 --> 00:01:44,760 Speaker 4: Nation was mentioned an awful lot in that lawsuit, so 35 00:01:44,840 --> 00:01:47,040 Speaker 4: it sort of led to the conclusion that there might 36 00:01:47,040 --> 00:01:50,240 Speaker 4: be another suit brought. And President Trump did order the 37 00:01:50,240 --> 00:01:53,240 Speaker 4: Federal Trade Commission to better enforce this act back in 38 00:01:53,320 --> 00:01:56,240 Speaker 4: an executive order in March, and they have a report 39 00:01:56,320 --> 00:01:59,520 Speaker 4: due to the President on September twenty seventh, so saying 40 00:01:59,560 --> 00:02:01,440 Speaker 4: what if they done to better enforce the act. So 41 00:02:01,520 --> 00:02:03,440 Speaker 4: I think it's not a surprise that a big lawsuit 42 00:02:03,480 --> 00:02:05,360 Speaker 4: came down before that report is due. 43 00:02:05,760 --> 00:02:07,880 Speaker 2: You know, you talk you talk to a lot of 44 00:02:07,920 --> 00:02:09,480 Speaker 2: nation people, and I've known them for a long time. 45 00:02:09,919 --> 00:02:12,799 Speaker 2: I think they want to clean this stuff up. They 46 00:02:12,800 --> 00:02:15,120 Speaker 2: want to take out the middleman, the scalper. They want 47 00:02:15,120 --> 00:02:17,359 Speaker 2: to simplify the fees because they know the feedback is 48 00:02:17,400 --> 00:02:21,000 Speaker 2: terrible from their customers. But this is still a thing, 49 00:02:21,080 --> 00:02:21,400 Speaker 2: isn't it. 50 00:02:21,480 --> 00:02:23,960 Speaker 4: I mean yeah, no, right, Well, first of all, antitrust 51 00:02:23,960 --> 00:02:26,440 Speaker 4: cases tend to be backward looking, so what they may 52 00:02:26,480 --> 00:02:28,919 Speaker 4: be taking efforts today, but we're looking at what they've 53 00:02:28,960 --> 00:02:32,720 Speaker 4: been doing since twenty eighteen. Essentially. The other thing is 54 00:02:33,320 --> 00:02:35,240 Speaker 4: they do say that, and they have said that to 55 00:02:35,280 --> 00:02:37,640 Speaker 4: the Department of Justice and to Congress as well. But 56 00:02:37,680 --> 00:02:39,720 Speaker 4: if you look at what's been alleged in this lawsuit, 57 00:02:39,720 --> 00:02:42,280 Speaker 4: they're an awful lot of statements and documents cited to 58 00:02:42,800 --> 00:02:45,880 Speaker 4: when their internal business communications going on. That suggests that 59 00:02:45,960 --> 00:02:48,720 Speaker 4: they've kind of turned a blind eye to the broker 60 00:02:48,760 --> 00:02:52,079 Speaker 4: activity because they profit from the resale market of those 61 00:02:52,120 --> 00:02:54,960 Speaker 4: tickets as well. How did they do that well, because 62 00:02:54,960 --> 00:02:57,440 Speaker 4: they sell the primary ticket and take fees, and then 63 00:02:57,560 --> 00:02:59,440 Speaker 4: the brokers buy in bulk and then they put it 64 00:02:59,480 --> 00:03:03,880 Speaker 4: they resell on Ticketmaster's resale arm. Ticketmaster charges just to 65 00:03:03,919 --> 00:03:05,880 Speaker 4: list it and then they take another fee when the 66 00:03:05,880 --> 00:03:08,360 Speaker 4: ticket's actually sold, So they're basically double dipping on the 67 00:03:08,360 --> 00:03:09,400 Speaker 4: same ticket. 68 00:03:09,720 --> 00:03:10,640 Speaker 2: How is this different? 69 00:03:11,160 --> 00:03:13,320 Speaker 3: I know that's not good. How is this different from 70 00:03:13,360 --> 00:03:17,320 Speaker 3: what ticket resellers, vivid Seats or access or any of 71 00:03:17,360 --> 00:03:20,480 Speaker 3: those other companies that consumers have the option of using, 72 00:03:20,800 --> 00:03:22,960 Speaker 3: how they operate and how they collect fees. 73 00:03:23,400 --> 00:03:26,800 Speaker 4: So this is about whether they knowingly resell these tickets. Now, 74 00:03:26,840 --> 00:03:29,600 Speaker 4: a reseller could sell a ticket that's been bought improperly 75 00:03:29,639 --> 00:03:31,760 Speaker 4: by a bot but not know it. They could implement 76 00:03:31,800 --> 00:03:35,560 Speaker 4: security measures, not understand the extent to which the bots 77 00:03:35,560 --> 00:03:38,080 Speaker 4: in the scalpers have been able to technically go around 78 00:03:38,160 --> 00:03:41,760 Speaker 4: those security measures, and then, you know, in an honestly 79 00:03:41,840 --> 00:03:45,160 Speaker 4: attempt to provide a place to resell tickets, resell the tickets. 80 00:03:45,320 --> 00:03:47,400 Speaker 4: In this case, what the FTC is saying is that 81 00:03:47,440 --> 00:03:50,960 Speaker 4: Ticketmaster knowingly did this, and they didn't step in the way, 82 00:03:51,000 --> 00:03:53,680 Speaker 4: They didn't implement any of the rules that they have 83 00:03:53,840 --> 00:03:54,600 Speaker 4: internally to. 84 00:03:54,640 --> 00:03:55,160 Speaker 2: Let it happen. 85 00:03:55,160 --> 00:03:57,080 Speaker 4: They let it happen. So it remains to be seen 86 00:03:57,120 --> 00:03:59,520 Speaker 4: whether some of the other resellers have that same kind 87 00:03:59,520 --> 00:04:02,280 Speaker 4: of evidence internally. It may be that they're doing what 88 00:04:02,320 --> 00:04:04,640 Speaker 4: they can to prevent the conduct and in that case 89 00:04:04,680 --> 00:04:06,040 Speaker 4: it may not violate the Bots Act. 90 00:04:07,480 --> 00:04:09,680 Speaker 2: How about the Department of Justice, what are they doing 91 00:04:09,720 --> 00:04:11,600 Speaker 2: with this company? I mean, is there talk of breaking 92 00:04:11,680 --> 00:04:13,600 Speaker 2: up Live Nation from the Ticketmaster? 93 00:04:13,920 --> 00:04:16,360 Speaker 4: The Department of Justice has been going after this company 94 00:04:16,360 --> 00:04:21,720 Speaker 4: for years, ever since Live Nation acquired Ticketmaster, which yes, Paul, 95 00:04:21,760 --> 00:04:24,080 Speaker 4: I know you worked on that deal, right, and that 96 00:04:24,240 --> 00:04:27,600 Speaker 4: was done with the consent order, meaning Live Nation promised 97 00:04:27,640 --> 00:04:29,400 Speaker 4: to behave a certain way if they were allowed to 98 00:04:29,400 --> 00:04:32,760 Speaker 4: buy the company, and essentially it's been alleged and investigated 99 00:04:32,800 --> 00:04:37,200 Speaker 4: and found twice now that they violated that. So now 100 00:04:37,279 --> 00:04:39,400 Speaker 4: the Department of Justice has just sued them and said, 101 00:04:39,640 --> 00:04:42,600 Speaker 4: you're engaging in all kinds of anti competitive activity by 102 00:04:42,680 --> 00:04:45,240 Speaker 4: virtue of your strong position kind of in every aspect 103 00:04:45,560 --> 00:04:49,520 Speaker 4: of the live concert and live event industry. And you 104 00:04:49,560 --> 00:04:51,960 Speaker 4: know the only answer at this point is to force 105 00:04:52,000 --> 00:04:55,280 Speaker 4: you to sell Ticketmaster because when we impose behavioral conditions, 106 00:04:55,400 --> 00:04:56,160 Speaker 4: you just ignore it. 107 00:04:56,960 --> 00:04:58,800 Speaker 3: How do you see this resolving. Is this going to 108 00:04:58,839 --> 00:05:01,120 Speaker 3: be something where they battle it out to the very 109 00:05:01,240 --> 00:05:04,000 Speaker 3: end and get a verdict or are they going to 110 00:05:04,040 --> 00:05:05,240 Speaker 3: try to settle. 111 00:05:05,920 --> 00:05:09,200 Speaker 4: Well, I think two different answers depending on the lawsuit 112 00:05:09,240 --> 00:05:11,400 Speaker 4: I think on the FTC lawsuit over the Bots Act 113 00:05:11,440 --> 00:05:14,840 Speaker 4: probably ends in a settlement because the penalties are astronomical, 114 00:05:15,080 --> 00:05:18,039 Speaker 4: you know, over fifty three thousand dollars per violation, and 115 00:05:18,040 --> 00:05:21,360 Speaker 4: we're talking about probably five million violations a year, accounting 116 00:05:21,520 --> 00:05:24,680 Speaker 4: and counting right starting in twenty eighteen. So that probably 117 00:05:24,800 --> 00:05:27,520 Speaker 4: ends in a settlement for a fraction of what ultimately 118 00:05:27,560 --> 00:05:30,360 Speaker 4: could be fined the Department of Justice suit. I suspect 119 00:05:30,440 --> 00:05:33,360 Speaker 4: Live Nation will fight and fight for many years. That 120 00:05:33,400 --> 00:05:35,320 Speaker 4: goes to trial in front of a jury in March. 121 00:05:35,560 --> 00:05:37,440 Speaker 4: So we're actually probably going to have a verdict in 122 00:05:37,480 --> 00:05:40,040 Speaker 4: the first quarter unless they managed to finacle a settlement, 123 00:05:40,040 --> 00:05:42,799 Speaker 4: which I understand they're trying hard right now to settle 124 00:05:42,880 --> 00:05:45,320 Speaker 4: with the Trump administration. But if they don't, it goes 125 00:05:45,360 --> 00:05:47,880 Speaker 4: to trial in March. We'll have a jury verdict. I 126 00:05:48,000 --> 00:05:50,080 Speaker 4: think it'll be hard to find a jury that's not 127 00:05:50,120 --> 00:05:52,600 Speaker 4: going to be inclined to rule against Live Nation if 128 00:05:52,640 --> 00:05:54,360 Speaker 4: they've ever tried to buy a ticket. 129 00:05:54,120 --> 00:05:56,479 Speaker 3: For an event like how many finds one who's completely 130 00:05:56,520 --> 00:06:00,440 Speaker 3: impractive about this and has no real firsthand experience exactly. 131 00:06:00,000 --> 00:06:02,720 Speaker 2: Now, I look like as old stock analysts I am, 132 00:06:03,080 --> 00:06:04,880 Speaker 2: I look at the stock, it's a twenty six percent 133 00:06:04,960 --> 00:06:07,400 Speaker 2: yeah day. Is that the market telling me we've got 134 00:06:07,480 --> 00:06:10,520 Speaker 2: an administration in office right now that might be open 135 00:06:10,560 --> 00:06:12,320 Speaker 2: to a deal. Is that kind of what it's saying. 136 00:06:12,400 --> 00:06:14,520 Speaker 4: I think so. I think there are those out there 137 00:06:14,560 --> 00:06:16,720 Speaker 4: that think Live Nation may be able to get some 138 00:06:16,760 --> 00:06:19,119 Speaker 4: sort of a deal. You know, we know they're making 139 00:06:19,160 --> 00:06:22,359 Speaker 4: a lot of efforts to do so in doing things 140 00:06:22,360 --> 00:06:25,320 Speaker 4: the way seem to be have been successful for others 141 00:06:25,320 --> 00:06:28,719 Speaker 4: with this administration, and I do think that's the sentiment. 142 00:06:28,960 --> 00:06:32,159 Speaker 4: But and also it's a long way away from something happening. 143 00:06:32,200 --> 00:06:34,440 Speaker 4: Even if they lose this jury trial in March, then 144 00:06:34,480 --> 00:06:37,000 Speaker 4: the judge has to decide on a remedy, then they appeal, 145 00:06:37,240 --> 00:06:40,000 Speaker 4: that remedy probably gets stayed pending the appeal, So we're 146 00:06:40,040 --> 00:06:42,839 Speaker 4: really not looking at an impact for a couple more years. 147 00:06:43,200 --> 00:06:46,680 Speaker 3: In the meantime, you have artists trying to you know, 148 00:06:46,800 --> 00:06:49,039 Speaker 3: limit how they sell their tickets as well, and that 149 00:06:49,200 --> 00:06:52,280 Speaker 3: just creates confusion for consumers too, you know, like they'll 150 00:06:52,800 --> 00:06:56,000 Speaker 3: release a you know, slate of tickets and then hold 151 00:06:56,040 --> 00:06:57,680 Speaker 3: off and then release another slate of tickets, and if 152 00:06:57,720 --> 00:06:59,960 Speaker 3: you want to transfer tickets to someone it's very different 153 00:07:00,080 --> 00:07:01,880 Speaker 3: goal on the Ticketmaster app because they want to make 154 00:07:01,920 --> 00:07:04,120 Speaker 3: sure that you're an actual person on the bot. I mean, 155 00:07:04,200 --> 00:07:06,760 Speaker 3: it just gets difficult for people who just want to 156 00:07:06,760 --> 00:07:07,200 Speaker 3: go see. 157 00:07:07,040 --> 00:07:09,279 Speaker 4: A show, right, And that's why this is a politically 158 00:07:09,320 --> 00:07:12,000 Speaker 4: popular cause. You know, this is the one thing that 159 00:07:12,080 --> 00:07:14,720 Speaker 4: leads me to think maybe the DJ won't settle with 160 00:07:15,120 --> 00:07:17,600 Speaker 4: Live Nation despite the efforts, because this is really you know, 161 00:07:17,680 --> 00:07:20,120 Speaker 4: the Taylor Swift fiasco brought it all to the forefront 162 00:07:20,160 --> 00:07:23,240 Speaker 4: more than ever. Springsteen whor's Springsteen Right. There have been 163 00:07:23,280 --> 00:07:28,040 Speaker 4: other issues since then, and it is politically popular. See 164 00:07:28,040 --> 00:07:28,840 Speaker 4: what happens there. 165 00:07:28,920 --> 00:07:32,400 Speaker 2: The only way you know, musical folks can make money 166 00:07:32,440 --> 00:07:33,680 Speaker 2: is touring, right. 167 00:07:33,520 --> 00:07:35,840 Speaker 3: And don't get Spotify doesn't pay you anything. 168 00:07:36,120 --> 00:07:38,200 Speaker 2: No, I mean, it's it, that's why you got. I mean, 169 00:07:38,240 --> 00:07:40,320 Speaker 2: I saw Clapton, Eric Clapton. 170 00:07:39,960 --> 00:07:43,040 Speaker 3: And the dude's eighty was sitting the entire time, no. 171 00:07:43,360 --> 00:07:47,640 Speaker 2: No standing most of the time. Sounded great. You know, 172 00:07:47,840 --> 00:07:50,480 Speaker 2: I don't know, but I mean, yeah, you know, there's 173 00:07:50,600 --> 00:07:53,880 Speaker 2: either selling their catalogs for hundreds of millions of dollars, right, 174 00:07:53,920 --> 00:07:55,120 Speaker 2: and they're still touring. 175 00:07:55,080 --> 00:07:58,040 Speaker 4: And merch merch tons and tons, and that's the problem 176 00:07:58,040 --> 00:08:00,960 Speaker 4: with these astronomical ticket prices that doesn't go back to 177 00:08:01,000 --> 00:08:03,080 Speaker 4: the artist, you know, it's just going to the middle 178 00:08:03,080 --> 00:08:05,320 Speaker 4: man or going to Live Nation or Ticketmaster, whoever the 179 00:08:05,320 --> 00:08:06,080 Speaker 4: reseller is. 180 00:08:06,320 --> 00:08:09,320 Speaker 2: Our thanks to Jennifer Ree, Bloomberg Intelligence Senior Litigation Analyst, 181 00:08:09,760 --> 00:08:12,880 Speaker 2: we move next to news from the memory chip maker Micron. 182 00:08:13,160 --> 00:08:16,120 Speaker 2: This week, shares of the company fell after its forecast 183 00:08:16,160 --> 00:08:18,720 Speaker 2: for the first quarter failed to impress investors, and this 184 00:08:18,800 --> 00:08:22,480 Speaker 2: comes despite revenue and profit expectations being higher than estimated. 185 00:08:22,960 --> 00:08:26,040 Speaker 2: In the backdrop, Micron stock has nearly doubled this year, 186 00:08:26,120 --> 00:08:28,320 Speaker 2: rising at a faster pace than most of its chip piers, 187 00:08:28,680 --> 00:08:32,520 Speaker 2: reflecting AI fueled optimism for more. Co host Scarlettfield w 188 00:08:32,520 --> 00:08:36,000 Speaker 2: Anden I were joined by Jake Silverman, Bloomberg Intelligence Semiconductor analyst. 189 00:08:36,480 --> 00:08:39,480 Speaker 2: We first asked Jake why investors were disappointed with Micron. 190 00:08:39,760 --> 00:08:41,360 Speaker 5: I think it has a lot to do with just 191 00:08:41,520 --> 00:08:45,800 Speaker 5: very high expectations coming into the quarter. But overall, look, 192 00:08:45,840 --> 00:08:48,640 Speaker 5: I mean, the fundamentals of the business remained very strong. 193 00:08:49,040 --> 00:08:51,559 Speaker 5: I think the commentary on the call for management was 194 00:08:51,679 --> 00:08:54,680 Speaker 5: very positive, and so I think we're going to continue 195 00:08:54,679 --> 00:08:56,480 Speaker 5: to see an up cycle and memory at least for 196 00:08:56,520 --> 00:08:57,600 Speaker 5: the near term. 197 00:08:58,320 --> 00:09:00,959 Speaker 2: So what is the call here, what's the street looking 198 00:09:00,960 --> 00:09:03,360 Speaker 2: for for this name? Again, A stocks just as you mentioned, 199 00:09:03,520 --> 00:09:05,920 Speaker 2: ripped this year up ninety four percent year today. What's 200 00:09:05,960 --> 00:09:06,520 Speaker 2: the call here? 201 00:09:07,120 --> 00:09:10,560 Speaker 5: Yeah, No, I mean, I think investors are really looking 202 00:09:10,600 --> 00:09:14,200 Speaker 5: at high bandwidth memory, They're looking at AI, They're looking 203 00:09:14,200 --> 00:09:17,640 Speaker 5: at data center related revenue. In the last fiscal year, 204 00:09:18,120 --> 00:09:21,160 Speaker 5: data center related revenue was fifty to six percent of sales. 205 00:09:21,559 --> 00:09:25,719 Speaker 5: So as demand continues for that, we also have to 206 00:09:25,800 --> 00:09:29,280 Speaker 5: keep in mind that, you know, there's traditional products as 207 00:09:29,320 --> 00:09:31,240 Speaker 5: well that are an important part of the business, that 208 00:09:31,280 --> 00:09:35,680 Speaker 5: includes smartphones and PCs. Investors really want to see continued 209 00:09:35,720 --> 00:09:40,120 Speaker 5: pricing strength. And as demand continues to grow for high 210 00:09:40,200 --> 00:09:43,920 Speaker 5: bandwidth memory, which is very important for AI, and as 211 00:09:44,000 --> 00:09:47,840 Speaker 5: capacity for that shifts over to high bandwith memory, it 212 00:09:47,880 --> 00:09:51,439 Speaker 5: can further constrains the supply because it has lower yields, 213 00:09:51,480 --> 00:09:54,240 Speaker 5: it has larger die sizes, so there's only so much 214 00:09:54,280 --> 00:09:58,079 Speaker 5: capacity industry and it's shifting over in favor of AI, 215 00:09:58,240 --> 00:10:02,000 Speaker 5: and that's just constraining supply for traditional products. Which given 216 00:10:02,040 --> 00:10:05,600 Speaker 5: the supply and demand, the importance of supplying demand balancing 217 00:10:05,600 --> 00:10:09,040 Speaker 5: the industry, it would suggest that as long as demand 218 00:10:09,040 --> 00:10:12,160 Speaker 5: for AI continues to grow, we'll see further pricing increases. 219 00:10:12,640 --> 00:10:14,559 Speaker 3: So that's a lot of conditions. I mean, you talk 220 00:10:14,600 --> 00:10:17,679 Speaker 3: about memory chips, which Micron is the biggest US maker of. 221 00:10:18,120 --> 00:10:20,960 Speaker 3: We know that this business is kind of famous or 222 00:10:20,960 --> 00:10:24,199 Speaker 3: infamous really for merging between booms and busts, and that 223 00:10:24,320 --> 00:10:28,280 Speaker 3: results in these price wings to compensate for the previous 224 00:10:29,000 --> 00:10:33,520 Speaker 3: you know, plethora of chips or dearth of chips. How 225 00:10:33,559 --> 00:10:36,000 Speaker 3: does the AI revolution change this dynamic? 226 00:10:36,800 --> 00:10:37,040 Speaker 4: Yeah? 227 00:10:37,120 --> 00:10:38,760 Speaker 5: No, And as I said before, really I want to 228 00:10:38,760 --> 00:10:41,920 Speaker 5: put emphasis on the fact that high bandwidth memory demand 229 00:10:42,000 --> 00:10:45,640 Speaker 5: constrain the supply for other products, specifically with DRAM. But 230 00:10:45,720 --> 00:10:48,480 Speaker 5: DRAM now accounts for about eighty percent of sales for 231 00:10:48,520 --> 00:10:52,040 Speaker 5: the company, so it's vastly more important than what we're 232 00:10:52,080 --> 00:10:54,960 Speaker 5: seeing in NAND. But the other twenty percent of sales 233 00:10:54,960 --> 00:10:58,440 Speaker 5: in NAND, we're also seeing strength for enterprise solid state drives, 234 00:10:58,440 --> 00:11:01,680 Speaker 5: which are also important for AI. So yeah, look, I 235 00:11:01,679 --> 00:11:05,320 Speaker 5: mean I think historically we've seen cycles up cycles tend 236 00:11:05,360 --> 00:11:08,439 Speaker 5: to last somewhere between seven to ten quarters, but we're 237 00:11:08,440 --> 00:11:11,160 Speaker 5: now extending beyond that. I mean, we're looking at, based 238 00:11:11,160 --> 00:11:14,040 Speaker 5: on the guidance, at least twelve quarters and then based 239 00:11:14,080 --> 00:11:17,960 Speaker 5: on the potential for further increases in pricing, it could 240 00:11:18,000 --> 00:11:20,280 Speaker 5: extend all the way through the next fiscal yeur at 241 00:11:20,280 --> 00:11:24,000 Speaker 5: a minimum. So yeah, I mean, really it's just kind 242 00:11:24,040 --> 00:11:26,920 Speaker 5: of an almost unprecedented situation, or at least not something that 243 00:11:26,920 --> 00:11:28,959 Speaker 5: we've seen in a very long time. And it really 244 00:11:29,000 --> 00:11:32,720 Speaker 5: just comes from structural tailments from AI, both on demand, 245 00:11:32,760 --> 00:11:37,520 Speaker 5: which is improving pricing via different products like high manWith memory, 246 00:11:37,880 --> 00:11:40,400 Speaker 5: but also just because like I said before, it's just 247 00:11:40,480 --> 00:11:44,280 Speaker 5: constraining overall supply, and that's not just unique to Micron, 248 00:11:44,400 --> 00:11:47,000 Speaker 5: that's true for both Skee Heinex and Samsung as well, 249 00:11:47,040 --> 00:11:49,320 Speaker 5: and the three of them account for the vast majority 250 00:11:49,360 --> 00:11:52,720 Speaker 5: of DRAM demand in the industry in nand as well. 251 00:11:52,840 --> 00:11:54,360 Speaker 2: Yeah, Drake, that's kind kind of where I wanted to 252 00:11:54,360 --> 00:11:57,200 Speaker 2: go the competitive landscape here. It feels like there's again 253 00:11:57,240 --> 00:12:01,240 Speaker 2: you mentioned kind of three names there. Is that really 254 00:12:01,320 --> 00:12:04,000 Speaker 2: kind of what's driving? Are those three companies driving this business? 255 00:12:04,480 --> 00:12:04,680 Speaker 6: Yeah? 256 00:12:04,760 --> 00:12:07,280 Speaker 5: Yeah, yeah, so eske Heinez has really had the lead 257 00:12:07,320 --> 00:12:10,280 Speaker 5: in high bandwidth memory, Micron has become sort of a 258 00:12:10,400 --> 00:12:14,560 Speaker 5: very fast follower, and now there's reports that Samsung will 259 00:12:14,600 --> 00:12:18,920 Speaker 5: be supplying into Nvidia's Blackwell Ultra platform, which might pave 260 00:12:19,000 --> 00:12:21,640 Speaker 5: the way into Rubin for them as well. So I mean, 261 00:12:21,679 --> 00:12:24,280 Speaker 5: I think this three company dynamic that we'd seen for 262 00:12:24,320 --> 00:12:27,079 Speaker 5: a very long time. Obviously you've had some Chinese competitors 263 00:12:27,120 --> 00:12:31,920 Speaker 5: come on, but this three company dynamic that we saw 264 00:12:31,960 --> 00:12:34,720 Speaker 5: in traditional DRAM seems to be now shaping up again 265 00:12:34,960 --> 00:12:39,319 Speaker 5: for high bandwidth memory. So I think those past dynamics 266 00:12:39,360 --> 00:12:41,520 Speaker 5: that we've seen are going to be the dynamics going 267 00:12:41,520 --> 00:12:42,199 Speaker 5: forward again. 268 00:12:42,640 --> 00:12:46,240 Speaker 2: Our thanks to Jake Silverman, Bloomberg Intelligence semiconductor analyst, coming 269 00:12:46,320 --> 00:12:48,680 Speaker 2: up a look at how US drug Makropfiser is trying 270 00:12:48,679 --> 00:12:51,760 Speaker 2: to carve its share of the BCD DRUB market. You're 271 00:12:51,800 --> 00:12:55,040 Speaker 2: listening to Bloomberg Intelligence on Bloomberg Radio, providing in depth 272 00:12:55,040 --> 00:12:57,319 Speaker 2: research and data on two thousand companies and one hundred 273 00:12:57,320 --> 00:13:00,480 Speaker 2: and thirty industries. You can access Bloomberg Intelligence VI A B. 274 00:13:00,679 --> 00:13:03,319 Speaker 2: I go on the terminal. I'm Paul Sweeney and this 275 00:13:03,640 --> 00:13:04,240 Speaker 2: is Bloomberg. 276 00:13:08,440 --> 00:13:12,920 Speaker 1: This is Bloomberg Intelligence with Scarlet Foo and Paul Sweeney 277 00:13:13,280 --> 00:13:14,640 Speaker 1: on Bloomberg Radio. 278 00:13:15,320 --> 00:13:17,440 Speaker 2: We move now to the news in a pharmaceutical space. 279 00:13:17,840 --> 00:13:20,160 Speaker 2: This week, the US drugmaker Pfizer said it will pay 280 00:13:20,160 --> 00:13:23,400 Speaker 2: four point nine billion dollars for the obesity startup met Sarah, 281 00:13:23,960 --> 00:13:26,120 Speaker 2: it's a bid to catch up the rival drugmakers after 282 00:13:26,200 --> 00:13:29,320 Speaker 2: failing to compete with its own weight loss medications From 283 00:13:29,320 --> 00:13:31,200 Speaker 2: work co hosts Scarlett Foe when I were joined by 284 00:13:31,200 --> 00:13:34,679 Speaker 2: Sam Fazzelli, Bloomberg Intelligence, Director of Research for Global Industries 285 00:13:34,960 --> 00:13:37,800 Speaker 2: and senior pharmaceuticals analysts. We first asked Sam to give 286 00:13:37,880 --> 00:13:40,360 Speaker 2: us some context on why this deal is important. 287 00:13:40,840 --> 00:13:45,000 Speaker 7: Obesity is one of the key causes of a whole 288 00:13:45,080 --> 00:13:50,160 Speaker 7: variety of diseases, cardiovascular, cancer, mental health. So if we 289 00:13:50,200 --> 00:13:52,280 Speaker 7: can treat it, if we can prevent it, if we 290 00:13:52,320 --> 00:13:56,479 Speaker 7: can reduce it, it's brilliant for the entirety of society. 291 00:13:56,840 --> 00:13:59,280 Speaker 7: Here there is a deal where Fizer thinks they've got 292 00:13:59,280 --> 00:14:02,160 Speaker 7: something that's going to be able to give them a 293 00:14:02,280 --> 00:14:05,480 Speaker 7: chance at playing in this very important area and very 294 00:14:05,520 --> 00:14:09,440 Speaker 7: massive market. Right. So the drugs are interesting, they're relatively 295 00:14:09,520 --> 00:14:13,240 Speaker 7: early stage. We're looking to see with some new data 296 00:14:13,280 --> 00:14:15,720 Speaker 7: coming up, whether some of the promise that we've seen 297 00:14:15,800 --> 00:14:18,679 Speaker 7: earlier for these drugs that the company has, which the 298 00:14:18,800 --> 00:14:20,920 Speaker 7: latest stage one is still in phase two they need 299 00:14:20,960 --> 00:14:24,440 Speaker 7: to start the phase three in twenty twenty six, whether 300 00:14:24,520 --> 00:14:27,640 Speaker 7: they are as competitive as they looked in the earlier trials. 301 00:14:27,880 --> 00:14:31,320 Speaker 7: There were some questions on efficacy less so than side 302 00:14:31,320 --> 00:14:33,560 Speaker 7: effect profile. So we'll have to wait and see how 303 00:14:33,560 --> 00:14:34,320 Speaker 7: that pans out. 304 00:14:34,480 --> 00:14:36,680 Speaker 3: Sam, can you get into the science a little bit 305 00:14:36,760 --> 00:14:39,080 Speaker 3: and maybe you know, keep it basic for folks like 306 00:14:39,120 --> 00:14:42,360 Speaker 3: Paul and me, because Metzara is described as the next 307 00:14:42,400 --> 00:14:45,840 Speaker 3: generation hopeful in obesities. They use these long acting analogs 308 00:14:45,960 --> 00:14:49,160 Speaker 3: versus GLP one and I'm wondering for people who might 309 00:14:49,200 --> 00:14:53,320 Speaker 3: be holding out for matsera's treatment what that means versus 310 00:14:53,440 --> 00:14:56,320 Speaker 3: the currently available zip bound or we go vi. 311 00:14:57,600 --> 00:15:00,600 Speaker 7: Yeah. Yeah, So the latest stage drug is very similar 312 00:15:00,600 --> 00:15:07,000 Speaker 7: to we go v and similar to zepetite or zip bound, 313 00:15:07,480 --> 00:15:10,200 Speaker 7: and the Amlin drug is a little bit early stay 314 00:15:10,280 --> 00:15:14,720 Speaker 7: earlier stage. There are companies we are more advanced drugs 315 00:15:14,760 --> 00:15:17,560 Speaker 7: in that world, but they all kind of feed into 316 00:15:17,600 --> 00:15:21,400 Speaker 7: the same pathway, which is the pathway that talks between 317 00:15:21,520 --> 00:15:25,720 Speaker 7: your food intake and your society centers in your brain 318 00:15:26,080 --> 00:15:30,040 Speaker 7: and your insulin centers in your pancreas it tries to 319 00:15:30,160 --> 00:15:34,360 Speaker 7: balance of eaten enough, let's stop eating now and let's 320 00:15:34,440 --> 00:15:37,240 Speaker 7: release some insulin make it more sensitive so that we 321 00:15:37,280 --> 00:15:40,200 Speaker 7: can deal with the onslaughter sugar that comes into our blood. 322 00:15:40,360 --> 00:15:42,680 Speaker 7: That's where they are, is that's central to that space. 323 00:15:43,040 --> 00:15:48,400 Speaker 7: There's cells in the gut that release glucle like JLP ones, 324 00:15:48,960 --> 00:15:51,960 Speaker 7: grouking like peptize the cells in other parts of the 325 00:15:52,000 --> 00:15:54,640 Speaker 7: body who are responding to it. So that's where these 326 00:15:54,640 --> 00:15:57,240 Speaker 7: things sit, and amlin is just one of those agents 327 00:15:57,280 --> 00:15:58,120 Speaker 7: in the middle of it. 328 00:15:58,640 --> 00:16:00,000 Speaker 5: Say, I'm just kind of stepping back. 329 00:16:00,120 --> 00:16:02,960 Speaker 2: Is GLP one drugs in general, there's a certain level 330 00:16:03,000 --> 00:16:07,120 Speaker 2: of efficacy today, there's a certain level of say, side effects, 331 00:16:07,120 --> 00:16:09,960 Speaker 2: whether it's large or something else today. Is there a 332 00:16:10,000 --> 00:16:13,320 Speaker 2: room for improvement on both efficacy and side effects going 333 00:16:13,360 --> 00:16:14,280 Speaker 2: forward with these drugs? 334 00:16:14,560 --> 00:16:17,400 Speaker 7: Yeah, I mean with it's the balance that's the most important. 335 00:16:17,400 --> 00:16:19,280 Speaker 7: With efficacy, I think we're pretty much there. I mean, 336 00:16:19,280 --> 00:16:21,000 Speaker 7: you know, there are folks that we know that go 337 00:16:21,080 --> 00:16:22,600 Speaker 7: on a drug for a week or two and they 338 00:16:22,600 --> 00:16:25,200 Speaker 7: lose four or five kilograms. That's fine. You don't want 339 00:16:25,200 --> 00:16:27,760 Speaker 7: to lose much faster than that, because I don't think 340 00:16:27,760 --> 00:16:30,720 Speaker 7: it's particularly healthy if you lose weight at a much 341 00:16:30,760 --> 00:16:33,520 Speaker 7: higher speed. And also you don't want to get much 342 00:16:33,560 --> 00:16:36,920 Speaker 7: lighter than a aty kilo or ninety kilo or seventy five 343 00:16:36,960 --> 00:16:39,400 Speaker 7: kilograms depending on your size. So the key is how 344 00:16:39,400 --> 00:16:42,320 Speaker 7: do you get there. If you get there by having 345 00:16:42,360 --> 00:16:44,600 Speaker 7: lots of side effects, then your probability of staying on 346 00:16:44,640 --> 00:16:46,520 Speaker 7: the drug is lower, but we want you to stay 347 00:16:46,560 --> 00:16:49,280 Speaker 7: on the drug. So it's a very very tight balance. 348 00:16:49,480 --> 00:16:51,320 Speaker 7: And then of course you have to figure out what 349 00:16:51,440 --> 00:16:54,200 Speaker 7: am I happy taking a weekly injection, which I think 350 00:16:54,200 --> 00:16:56,160 Speaker 7: a lot of people are not. Don't have a problem 351 00:16:56,160 --> 00:16:58,440 Speaker 7: with it, But what if Mitcera is right and push 352 00:16:58,480 --> 00:17:01,400 Speaker 7: it to once monthly, if some of the other competitent 353 00:17:01,520 --> 00:17:04,680 Speaker 7: is coming along with once every three months. Now, those 354 00:17:04,720 --> 00:17:06,240 Speaker 7: are things that we have to wait and see how 355 00:17:06,240 --> 00:17:08,919 Speaker 7: the data shows in terms of that balance of just 356 00:17:08,960 --> 00:17:09,480 Speaker 7: referred to. 357 00:17:09,920 --> 00:17:12,800 Speaker 2: Our thanks to Sam Fazeli, Bloomberg Intelligence, Director of Research 358 00:17:12,800 --> 00:17:16,280 Speaker 2: for Global Industries and senior pharmaceuticals analysts. Staying in the 359 00:17:16,320 --> 00:17:19,679 Speaker 2: pharmaceutical space. This week, the Trump administration linked thiland on 360 00:17:19,760 --> 00:17:22,520 Speaker 2: to autism and urge pregnant women to avoid the common 361 00:17:22,600 --> 00:17:25,800 Speaker 2: pain medication, and this comes despite the lack of widely 362 00:17:25,840 --> 00:17:29,600 Speaker 2: accepted scientific evidence supporting the risk. For more co host 363 00:17:29,600 --> 00:17:32,280 Speaker 2: Scarlett Field and I were joined by a Hunter Bloomberg 364 00:17:32,320 --> 00:17:36,320 Speaker 2: Intelligence senior equity analysts for biopharmaceuticals. You first asked Ann 365 00:17:36,400 --> 00:17:38,639 Speaker 2: about the science behind the latest news. 366 00:17:38,920 --> 00:17:42,000 Speaker 8: There are a lot of studies on it. It's certainly 367 00:17:42,160 --> 00:17:45,359 Speaker 8: driven by an increase in finding a solution for the 368 00:17:45,400 --> 00:17:48,800 Speaker 8: increased rates of ADHD and autism. I think it's really 369 00:17:48,800 --> 00:17:52,680 Speaker 8: important here to qualify or quantify what we're talking about 370 00:17:52,720 --> 00:17:55,399 Speaker 8: with frequent Thailand all use, and most of the studies 371 00:17:55,400 --> 00:17:58,800 Speaker 8: are looking at measured as more than twenty eight days 372 00:17:58,840 --> 00:18:00,879 Speaker 8: over the course of your pregnant see, so that is 373 00:18:01,280 --> 00:18:03,200 Speaker 8: a lot of tile and all use. We're not talking 374 00:18:03,240 --> 00:18:05,920 Speaker 8: about you have a high fever and you take it 375 00:18:06,040 --> 00:18:08,440 Speaker 8: for a day or two. This is this is kind 376 00:18:08,440 --> 00:18:12,919 Speaker 8: of more long term use. There is a correlation between 377 00:18:12,920 --> 00:18:16,720 Speaker 8: tile and all use and these disorders and children, and 378 00:18:16,760 --> 00:18:19,080 Speaker 8: I'll probably lose listeners if I go too deeply. But 379 00:18:19,160 --> 00:18:23,320 Speaker 8: correlation is not causation. Those are two separate things. And 380 00:18:23,560 --> 00:18:25,440 Speaker 8: while there's a lot of literature out there, a lot 381 00:18:25,440 --> 00:18:29,119 Speaker 8: of clinical studies, I would argue that the best ones 382 00:18:29,240 --> 00:18:33,000 Speaker 8: look at sibling analysis, so they compare a mother who 383 00:18:33,080 --> 00:18:37,200 Speaker 8: had frequent use during one pregnancy and not the next, 384 00:18:37,280 --> 00:18:39,840 Speaker 8: and that's the best way to kind of look at this. 385 00:18:39,920 --> 00:18:43,600 Speaker 8: And in those studies there was no findings of increased risks, 386 00:18:43,600 --> 00:18:45,320 Speaker 8: and there have been several There was a two and 387 00:18:45,320 --> 00:18:47,359 Speaker 8: a half million dollars a two and a half million 388 00:18:47,440 --> 00:18:50,840 Speaker 8: children study in Sweden, as well as a more recent 389 00:18:51,200 --> 00:18:55,320 Speaker 8: one out of Japan. Unfortunately, randomized trials are are difficult 390 00:18:55,359 --> 00:18:58,439 Speaker 8: to do, there's just too many variables. But the sibling 391 00:18:58,480 --> 00:19:00,639 Speaker 8: analysis is probably the best we have. 392 00:19:01,119 --> 00:19:03,240 Speaker 3: So And when I think about the companies that are affected, 393 00:19:03,320 --> 00:19:07,080 Speaker 3: certainly ken View, which owns the Talnyl brand. Tailanol's generic 394 00:19:07,200 --> 00:19:08,960 Speaker 3: name is a seed of menaphin, and there are many 395 00:19:09,000 --> 00:19:11,920 Speaker 3: other companies that make a seed of menaphin as well. 396 00:19:12,000 --> 00:19:14,080 Speaker 3: Are we seeing them impacted in any way? 397 00:19:14,840 --> 00:19:15,080 Speaker 7: You know? 398 00:19:15,320 --> 00:19:17,560 Speaker 8: This is even for ken View, this is maybe a 399 00:19:17,640 --> 00:19:20,920 Speaker 8: high single digit portion of sales, and that's thailenol overall, 400 00:19:21,200 --> 00:19:24,080 Speaker 8: So you assume that the pregnant population is a much 401 00:19:24,080 --> 00:19:28,119 Speaker 8: smaller percentage of those sales. And I'd argue even you know, 402 00:19:28,359 --> 00:19:30,960 Speaker 8: before all of this, a lot of physicians, certainly mine 403 00:19:31,000 --> 00:19:34,679 Speaker 8: when I was pregnant, recommended only taking tilenol when you 404 00:19:34,760 --> 00:19:37,080 Speaker 8: have one of those you know, high fevers, So I 405 00:19:37,240 --> 00:19:41,879 Speaker 8: wouldn't expect it to truly be a material impact to 406 00:19:41,920 --> 00:19:42,960 Speaker 8: any of these companies. 407 00:19:43,600 --> 00:19:45,960 Speaker 2: Is there anything else out there that is at risk here? 408 00:19:46,119 --> 00:19:49,560 Speaker 2: I mean from just the FDA, I mean your coverage here, 409 00:19:49,600 --> 00:19:51,880 Speaker 2: because I know there's a lot of uncertainty about which 410 00:19:51,920 --> 00:19:55,399 Speaker 2: drugs are you know, kind of favored by this administration, 411 00:19:55,480 --> 00:19:57,240 Speaker 2: which ones aren't. Is that Are you seeing that in 412 00:19:57,280 --> 00:19:58,320 Speaker 2: your coverage of your companies? 413 00:19:58,560 --> 00:20:00,840 Speaker 8: Well, for pregnancy in particular, I'd say, are there are 414 00:20:00,920 --> 00:20:04,920 Speaker 8: no favorite drugs? You know, you certainly were never suggested 415 00:20:05,000 --> 00:20:07,440 Speaker 8: to take aspirin and Tylenall was one of the few 416 00:20:07,480 --> 00:20:12,200 Speaker 8: things that was considered okay. But overall, you know, anytime 417 00:20:12,240 --> 00:20:15,200 Speaker 8: you get a lot of media attention on any drug 418 00:20:15,600 --> 00:20:18,680 Speaker 8: from politics or anything else, it's typically not a great 419 00:20:18,680 --> 00:20:20,800 Speaker 8: thing for the companies. But I think it does tend 420 00:20:20,800 --> 00:20:22,960 Speaker 8: to even out as it passes. 421 00:20:23,560 --> 00:20:26,960 Speaker 3: You are our senior equity analyst for biopharmaceuticals. When the 422 00:20:27,040 --> 00:20:30,720 Speaker 3: Secretary of Health, Robert F. Kennedy Junior, speaks, does he 423 00:20:30,800 --> 00:20:32,680 Speaker 3: tend to move companies in your universe? 424 00:20:33,359 --> 00:20:36,920 Speaker 8: I would argue, yes, for better or for worse, I'd 425 00:20:37,000 --> 00:20:38,800 Speaker 8: say they definitely move, but I would say that they 426 00:20:39,160 --> 00:20:40,359 Speaker 8: go back to a steady state. 427 00:20:40,920 --> 00:20:41,200 Speaker 7: Okay. 428 00:20:41,240 --> 00:20:43,359 Speaker 3: So it's an immediate knee jerk reaction and then things 429 00:20:43,480 --> 00:20:45,160 Speaker 3: calm down exactly. 430 00:20:45,160 --> 00:20:47,919 Speaker 2: Our thanks to Ann Hunter, Bloomberg Intelligence Senior equity analyst 431 00:20:47,920 --> 00:20:50,680 Speaker 2: for Biopharmaceuticals. We move next to some news in the 432 00:20:50,800 --> 00:20:54,199 Speaker 2: luxury space. This week we heard that The Finished Company, 433 00:20:54,359 --> 00:20:56,840 Speaker 2: or A Health, is raising eight hundred and seventy five 434 00:20:56,880 --> 00:20:59,560 Speaker 2: million dollars in a new Series E financing round, and 435 00:20:59,600 --> 00:21:03,520 Speaker 2: it's now closing in on a roughly eleven billion dollar valuation. 436 00:21:03,720 --> 00:21:07,480 Speaker 2: That's after selling about three million rings over the past year. 437 00:21:07,840 --> 00:21:09,880 Speaker 2: For more, co host Scarlett fil When I were joined 438 00:21:09,880 --> 00:21:13,640 Speaker 2: by Mark German, Bloomberg News Managing editor for Global Consumer Tech, 439 00:21:14,000 --> 00:21:16,760 Speaker 2: we first asked Mark for more background on the Aura 440 00:21:16,920 --> 00:21:17,480 Speaker 2: ring maker. 441 00:21:17,840 --> 00:21:20,280 Speaker 9: They want to scale production, they want to scale R 442 00:21:20,320 --> 00:21:23,959 Speaker 9: and D, they want to move into new regions, they 443 00:21:24,000 --> 00:21:26,080 Speaker 9: want to get into new retail stores, they want to 444 00:21:26,119 --> 00:21:29,359 Speaker 9: add new software features, so they're looking to grow quickly. 445 00:21:29,840 --> 00:21:33,760 Speaker 9: This nearly eleven billion dollar valuation. This is a pretty 446 00:21:33,760 --> 00:21:37,800 Speaker 9: specific hardware company. They really make one thing, and if 447 00:21:37,840 --> 00:21:41,000 Speaker 9: you look at their market cap now after that raise, 448 00:21:41,480 --> 00:21:44,119 Speaker 9: you compare it to other companies that are known for 449 00:21:44,200 --> 00:21:50,200 Speaker 9: really one type of hardware product. Peloton, Eye, Robot, Sonos 450 00:21:50,480 --> 00:21:54,240 Speaker 9: bows Or is now worth more than all of them. Combined, 451 00:21:55,040 --> 00:21:58,040 Speaker 9: which is pretty crazy to think about. So so far 452 00:21:58,160 --> 00:22:00,560 Speaker 9: this looks to be a success store. It's not a 453 00:22:00,640 --> 00:22:04,080 Speaker 9: very old company, but it's a company doing effective things 454 00:22:04,119 --> 00:22:06,920 Speaker 9: and they're clearly building a product that people like. They've 455 00:22:06,960 --> 00:22:10,600 Speaker 9: sold three million units in the last fourteen fifteen months 456 00:22:10,720 --> 00:22:13,719 Speaker 9: or so. They've sold five and a half million rings 457 00:22:13,720 --> 00:22:17,560 Speaker 9: to date. They're due to cross one billion in revenue 458 00:22:18,000 --> 00:22:20,520 Speaker 9: in twenty five, a billion and a half in twenty six. 459 00:22:21,359 --> 00:22:25,000 Speaker 9: They did five hundred million in twenty four, so they 460 00:22:25,000 --> 00:22:26,480 Speaker 9: seem to be growing quite nicely. 461 00:22:27,119 --> 00:22:29,680 Speaker 2: I don't know, not being into the ring fit ring 462 00:22:29,760 --> 00:22:33,040 Speaker 2: business myself. Fit ring, I like that fit ring. I mean, 463 00:22:33,200 --> 00:22:35,320 Speaker 2: this seems like something that your friends at Cooper Tina 464 00:22:35,359 --> 00:22:38,399 Speaker 2: could come out with tomorrow and copycat. How do you 465 00:22:38,400 --> 00:22:39,879 Speaker 2: think that's the competitive landscape? 466 00:22:40,200 --> 00:22:42,760 Speaker 9: Yeah, the competitive landscape is interesting. There's a few smaller 467 00:22:42,760 --> 00:22:46,120 Speaker 9: players that are also doing smart rings. Samsung rolled out 468 00:22:46,480 --> 00:22:49,760 Speaker 9: what they call the Galaxy Ring last year, and for Samsung, 469 00:22:49,800 --> 00:22:52,840 Speaker 9: who's actually been a dud, the functionality is just not 470 00:22:52,960 --> 00:22:56,560 Speaker 9: on par with Aura. What Aura has is a very 471 00:22:56,600 --> 00:23:00,920 Speaker 9: strong brand, They have very strong functionality, and they have 472 00:23:01,040 --> 00:23:04,879 Speaker 9: that big first mover advantage. But you're right, if Apple 473 00:23:05,000 --> 00:23:08,240 Speaker 9: comes out with a ring, They're gonna eat Aura's lunch. 474 00:23:08,800 --> 00:23:08,960 Speaker 7: You know. 475 00:23:09,040 --> 00:23:13,119 Speaker 9: Aura's perspective is that they have this gigantic and tried 476 00:23:13,160 --> 00:23:19,360 Speaker 9: and true in legal proceedings patent portfolio, and so they 477 00:23:19,480 --> 00:23:21,800 Speaker 9: feel that if Apple were to come out with a ring, 478 00:23:22,200 --> 00:23:24,800 Speaker 9: or another company were to really hit the nail on 479 00:23:24,840 --> 00:23:26,920 Speaker 9: the head with the ring, that they would be able 480 00:23:26,960 --> 00:23:30,480 Speaker 9: to defend their patents. And they've shown to be able 481 00:23:30,520 --> 00:23:32,800 Speaker 9: to do that. They have some cases in front of 482 00:23:32,840 --> 00:23:37,040 Speaker 9: the International Trade Commission and other organizations right now for 483 00:23:37,119 --> 00:23:40,000 Speaker 9: some of the other competitors, So we'll see what happens. 484 00:23:40,480 --> 00:23:44,200 Speaker 9: I don't anticipate Apple coming out with a ring anytime soon. 485 00:23:45,000 --> 00:23:47,520 Speaker 9: I will say that this ten billion dollar valuation is 486 00:23:47,520 --> 00:23:50,520 Speaker 9: a little bit of a double edged sword. On one hand, 487 00:23:50,560 --> 00:23:53,040 Speaker 9: that's amazing for the company. On the other hand, it 488 00:23:53,080 --> 00:23:55,200 Speaker 9: puts them in territory where they're probably not going to 489 00:23:55,200 --> 00:23:58,560 Speaker 9: be acquired or bought in, which would spur another company 490 00:23:58,640 --> 00:24:01,600 Speaker 9: like Apple if they wanted a ring, develop one versus 491 00:24:01,680 --> 00:24:04,600 Speaker 9: buy them. And definitely they're gonna have to make a 492 00:24:04,600 --> 00:24:07,119 Speaker 9: decision in the next couple of years whether they're going 493 00:24:07,200 --> 00:24:10,440 Speaker 9: to go public via an IPO spat or if they're 494 00:24:10,440 --> 00:24:11,719 Speaker 9: going to stay private all right. 495 00:24:11,720 --> 00:24:15,120 Speaker 2: Thanks to Mark German, Bloomberg News Managing editor for Global 496 00:24:15,160 --> 00:24:18,520 Speaker 2: Consumer Tech, coming up a look into the current succession 497 00:24:18,560 --> 00:24:21,280 Speaker 2: plan at T Mobile. You're listening to Bloomberg Intelligence on 498 00:24:21,280 --> 00:24:24,080 Speaker 2: Bloomberg Radio, providing in depth research and data on two 499 00:24:24,080 --> 00:24:26,600 Speaker 2: thousand companies and one hundred and thirty industries. You can 500 00:24:26,640 --> 00:24:30,080 Speaker 2: access Bloomberg Intelligence via Big on the terminal. I'm Paul Sweeney, 501 00:24:30,119 --> 00:24:31,240 Speaker 2: and this is Bloomberg. 502 00:24:38,000 --> 00:24:42,520 Speaker 1: This is Bloomberg Intelligence with Scarlett Fou and Paul Sweeney 503 00:24:42,840 --> 00:24:44,159 Speaker 1: on Bloomberg Radio. 504 00:24:44,880 --> 00:24:47,639 Speaker 2: We next moved to some news in a telecommunications space. 505 00:24:47,960 --> 00:24:50,080 Speaker 2: This week, we heard that T Mobile is promoting Chief 506 00:24:50,119 --> 00:24:54,280 Speaker 2: operating Officer Shriney Gopalon to the top job. He replaced 507 00:24:54,359 --> 00:24:58,040 Speaker 2: CEO Mike Sievert, who will become vice chairman. And this 508 00:24:58,119 --> 00:25:00,960 Speaker 2: comes as T Mobile competes for customers market that now 509 00:25:01,000 --> 00:25:03,760 Speaker 2: also spans home internet and satellite service. 510 00:25:03,880 --> 00:25:04,200 Speaker 10: For more. 511 00:25:04,320 --> 00:25:06,720 Speaker 2: Co host Scarlett Field and I were joined by John Butler, 512 00:25:06,760 --> 00:25:10,560 Speaker 2: Bloomberg Intelligence senior telecom analyst. We first asked John if 513 00:25:10,560 --> 00:25:12,920 Speaker 2: he's surprised with T mobiles changeover. 514 00:25:13,320 --> 00:25:18,000 Speaker 10: Not at all. This was incredibly well broadcast. Shriney has 515 00:25:18,040 --> 00:25:21,200 Speaker 10: been hitting the conference circuit. So at this time of year, 516 00:25:21,280 --> 00:25:25,200 Speaker 10: all the major investment banks hold these conferences, and he's 517 00:25:25,280 --> 00:25:28,679 Speaker 10: been in almost everyone sort of out there telling the 518 00:25:28,760 --> 00:25:32,560 Speaker 10: T Mobiles story. And in my mind it answers one 519 00:25:32,560 --> 00:25:35,879 Speaker 10: of two questions. Right with any incoming CEO, You're like, 520 00:25:36,640 --> 00:25:40,200 Speaker 10: can they manage the company effectively? And can they manage 521 00:25:40,280 --> 00:25:44,359 Speaker 10: the stock effectively? Can they get that narrative out spin 522 00:25:44,440 --> 00:25:47,240 Speaker 10: a good story? And he is really good at that. 523 00:25:47,480 --> 00:25:51,159 Speaker 10: So he's answered the second question, and I think in 524 00:25:51,200 --> 00:25:54,760 Speaker 10: some ways he's answered the first as well. 525 00:25:54,840 --> 00:25:57,680 Speaker 2: Talk to us about the wireless business these days, it's 526 00:25:57,720 --> 00:26:00,280 Speaker 2: just a brutally competitive business. Just give us the lay 527 00:26:00,280 --> 00:26:03,679 Speaker 2: of the land there between AT and T, Verizon, T Mobile, 528 00:26:03,680 --> 00:26:05,159 Speaker 2: and I don't know anybody else who might be out. 529 00:26:05,240 --> 00:26:07,720 Speaker 10: I mean, the big three are still dominant. Paul and 530 00:26:07,800 --> 00:26:11,879 Speaker 10: T Mobile has executed beautifully over the past few years. 531 00:26:12,000 --> 00:26:15,040 Speaker 10: You know, they've done a very good job of sort 532 00:26:15,080 --> 00:26:18,680 Speaker 10: of securing the lead in terms of subscriber growth by 533 00:26:19,520 --> 00:26:25,280 Speaker 10: you know, marketing on this hip counterculture brand image. They 534 00:26:25,320 --> 00:26:31,440 Speaker 10: continue to be, I think, having an outsized impact on consumers. 535 00:26:31,480 --> 00:26:34,040 Speaker 10: When you think a wireless it really is a consumer 536 00:26:34,160 --> 00:26:38,480 Speaker 10: retail business. They all have thousands of stores. They advertise 537 00:26:38,560 --> 00:26:41,240 Speaker 10: on the Super Bowl, they have giveaways, and I think 538 00:26:41,320 --> 00:26:44,720 Speaker 10: T Mobile, more than most, really does that well. And 539 00:26:44,800 --> 00:26:48,080 Speaker 10: I think the Big Three, because of their scale set, 540 00:26:48,280 --> 00:26:51,359 Speaker 10: it sort of sets this sort of wide mote for 541 00:26:51,480 --> 00:26:54,679 Speaker 10: any newcomers that want to come in. So T Mobile 542 00:26:54,680 --> 00:26:57,199 Speaker 10: as number two in the industry, I think is going 543 00:26:57,280 --> 00:27:00,600 Speaker 10: to remain firmly in that place, if not move into 544 00:27:00,600 --> 00:27:03,119 Speaker 10: the number one position over the next several years. 545 00:27:03,320 --> 00:27:04,159 Speaker 3: Number one Verizon. 546 00:27:04,800 --> 00:27:08,240 Speaker 10: Number one is Verizon still, so I'm a Verizon person. 547 00:27:08,359 --> 00:27:11,120 Speaker 3: I am too, But I just went to Italy and 548 00:27:11,320 --> 00:27:13,080 Speaker 3: how did it? What did you do for your phone needs? 549 00:27:13,320 --> 00:27:14,880 Speaker 2: Fine, it's just a lot. I have a plan that 550 00:27:15,280 --> 00:27:17,399 Speaker 2: just ports over to an international. 551 00:27:17,040 --> 00:27:19,920 Speaker 3: Okay, because I do uh huh all of my offspring. 552 00:27:19,920 --> 00:27:24,679 Speaker 2: That's the only thing that I still pay for the Yes, no. 553 00:27:25,440 --> 00:27:26,840 Speaker 3: One wants to give that up. Why pay for your 554 00:27:26,880 --> 00:27:28,879 Speaker 3: own cell phone service when dad will pay for it. 555 00:27:29,200 --> 00:27:32,080 Speaker 3: I switched over to T Mobile because of the giveaways, Yes, 556 00:27:32,080 --> 00:27:35,760 Speaker 3: because of the free iPhone last cycle, and also because 557 00:27:35,800 --> 00:27:38,800 Speaker 3: you get free data and free international texting when you're 558 00:27:38,840 --> 00:27:41,400 Speaker 3: overseas up to five gigabytes, so that means I never 559 00:27:41,400 --> 00:27:43,359 Speaker 3: have to buy an international data parison shopping. 560 00:27:43,400 --> 00:27:46,360 Speaker 10: That is the single biggest hook I hear. So when 561 00:27:46,480 --> 00:27:48,080 Speaker 10: people come to me and they're like, I'm a T 562 00:27:48,240 --> 00:27:51,520 Speaker 10: mobile subscriber, they have all these giveaways and they have 563 00:27:51,720 --> 00:27:52,880 Speaker 10: international goal. 564 00:27:53,560 --> 00:27:55,119 Speaker 3: That makes a big difference because when I was on 565 00:27:55,200 --> 00:27:56,880 Speaker 3: AT and T, I was paying ten dollars a day 566 00:27:56,920 --> 00:27:57,600 Speaker 3: and that adds. 567 00:27:57,440 --> 00:27:59,400 Speaker 10: Up really quickly, does it really? 568 00:27:59,440 --> 00:27:59,600 Speaker 4: You know? 569 00:27:59,640 --> 00:28:01,439 Speaker 3: And then only one person the family can get it 570 00:28:01,440 --> 00:28:03,000 Speaker 3: because you know, not everyone's going to get. 571 00:28:02,840 --> 00:28:05,280 Speaker 2: It right and yeah, four offspring plus an next wife 572 00:28:05,320 --> 00:28:09,040 Speaker 2: you're still thinking for Well, there you go. Charlie Pellett 573 00:28:09,040 --> 00:28:11,399 Speaker 2: is on the T Mobi. He always tries to sell. 574 00:28:11,280 --> 00:28:13,560 Speaker 3: Me to get Charlie also knows the great deal. That's 575 00:28:13,560 --> 00:28:15,159 Speaker 3: the secret here a Bloomberg Charlie was. 576 00:28:15,200 --> 00:28:17,200 Speaker 2: Tracking the strange parts of the world where he probably 577 00:28:17,240 --> 00:28:19,480 Speaker 2: needs that kind of stuff. So what's the future of 578 00:28:19,760 --> 00:28:22,600 Speaker 2: wireless in this country? Is it just our poop growth? 579 00:28:22,840 --> 00:28:25,280 Speaker 2: Average revenue per user? And is that kind of the 580 00:28:25,359 --> 00:28:26,280 Speaker 2: story for. 581 00:28:26,280 --> 00:28:29,359 Speaker 10: That is So that is a great question, that is 582 00:28:29,400 --> 00:28:32,639 Speaker 10: what's driving growth? Now for a telco, you start of 583 00:28:32,720 --> 00:28:35,120 Speaker 10: run out of room for adding new subs and so 584 00:28:35,200 --> 00:28:39,320 Speaker 10: you need to drive that up that average revenue per 585 00:28:39,480 --> 00:28:41,920 Speaker 10: user and they're doing it with the giveaways we were 586 00:28:41,960 --> 00:28:46,200 Speaker 10: just talking about. They actually charge modestly for those. In 587 00:28:46,280 --> 00:28:50,480 Speaker 10: some cases they're selling you phone insurance. T Mobile is 588 00:28:50,520 --> 00:28:54,520 Speaker 10: now pushing into the advertising business, but the real avenue 589 00:28:54,520 --> 00:28:57,360 Speaker 10: of growth to watch for them going forward is broadband. 590 00:28:57,400 --> 00:29:01,000 Speaker 10: They are making more and more inroads into the market 591 00:29:01,280 --> 00:29:04,280 Speaker 10: and T Mobile it's what I'm watching with the new 592 00:29:04,320 --> 00:29:07,280 Speaker 10: CEO here to see what he does in fiber broadband, 593 00:29:07,800 --> 00:29:10,360 Speaker 10: because if T Mobile has had any sort of a 594 00:29:10,520 --> 00:29:13,959 Speaker 10: misfire over the past decade, it's not getting into fiber 595 00:29:14,040 --> 00:29:17,440 Speaker 10: broadband in a bigger way in the way that AT 596 00:29:17,560 --> 00:29:22,800 Speaker 10: and TM Verizon both have through sizeable and aggressive acquisitions. 597 00:29:22,840 --> 00:29:25,560 Speaker 10: So it'll be interesting to see what he does there. 598 00:29:26,080 --> 00:29:29,960 Speaker 10: My call is he's going to start building quickly and aggressively, 599 00:29:30,040 --> 00:29:31,160 Speaker 10: would be my guess. 600 00:29:31,480 --> 00:29:34,560 Speaker 2: A R thanks to John Butler, Bloomberg Intelligence Senior Telecom analyst. 601 00:29:34,760 --> 00:29:37,480 Speaker 2: We move next to the media entertainment space. This week, 602 00:29:37,600 --> 00:29:41,080 Speaker 2: Late night host Jimmy Kimmel returned to television. ABC parent 603 00:29:41,200 --> 00:29:43,720 Speaker 2: Walt Disney had pulled the show off the air. That's 604 00:29:43,720 --> 00:29:46,840 Speaker 2: after Kimmel said conservatives were trying to score political points 605 00:29:47,120 --> 00:29:50,760 Speaker 2: off the fatal shooting of conservative activists Charlie Kirk. In 606 00:29:50,800 --> 00:29:53,080 Speaker 2: his return, Kimmel didn't shy away from poking fun at 607 00:29:53,120 --> 00:29:56,400 Speaker 2: President Donald Trump and FCC Chairman Brendan Carr and making 608 00:29:56,480 --> 00:29:59,400 Speaker 2: an impassioned case for free speech for more and all 609 00:29:59,400 --> 00:30:01,840 Speaker 2: this scarlet field. When I were joined by Githa Ranganath 610 00:30:01,880 --> 00:30:05,680 Speaker 2: and Bloomberg Intelligence senior media analyst, we first asked Githa 611 00:30:06,000 --> 00:30:08,600 Speaker 2: what this news means for late night networks and whether 612 00:30:08,760 --> 00:30:09,800 Speaker 2: they still make money. 613 00:30:10,080 --> 00:30:12,600 Speaker 6: They don't make a whole lot of money, Paul, not anymore. 614 00:30:13,160 --> 00:30:15,400 Speaker 6: It used to be that, you know, late night television 615 00:30:15,440 --> 00:30:17,880 Speaker 6: would bring in a lot of ratings, would bring in 616 00:30:17,920 --> 00:30:21,400 Speaker 6: a lot of AD dollars. That has really changed. We've 617 00:30:21,960 --> 00:30:26,800 Speaker 6: we've seen linear TV kind of hemorrhage viewers now over 618 00:30:26,880 --> 00:30:29,080 Speaker 6: so many years, and late night has no exception. So 619 00:30:29,080 --> 00:30:31,080 Speaker 6: if you just kind of look at, you know, Jimmy 620 00:30:31,120 --> 00:30:34,120 Speaker 6: Kimmel's show, for instance, it generates roughly about fifty million 621 00:30:34,160 --> 00:30:36,960 Speaker 6: dollars in AD revenue. Compare that to a few years 622 00:30:37,000 --> 00:30:38,719 Speaker 6: ago when it used to generate close to about one 623 00:30:38,760 --> 00:30:41,880 Speaker 6: hundred and fifty million. So definitely AD revenue going down, 624 00:30:42,280 --> 00:30:46,840 Speaker 6: and most of these late night shows are losing money. 625 00:30:46,880 --> 00:30:50,840 Speaker 6: Just given the programming budget for these shows. So not 626 00:30:51,000 --> 00:30:54,280 Speaker 6: really a needle mover in a financial sense for Disney. 627 00:30:55,040 --> 00:30:57,440 Speaker 3: Okay, But in a cultural sense, it is because these 628 00:30:57,480 --> 00:31:01,320 Speaker 3: are shows that define the networks, and so thank you 629 00:31:01,320 --> 00:31:03,560 Speaker 3: for putting numbers to that, because I think there's a 630 00:31:03,600 --> 00:31:08,440 Speaker 3: lot of concern or skepticism from certain corners of American 631 00:31:09,040 --> 00:31:12,000 Speaker 3: communities that question whether Stephen Colbert's show should have been 632 00:31:12,040 --> 00:31:15,640 Speaker 3: canceled for financial reasons, as CBS asserts it was. Keita, 633 00:31:16,320 --> 00:31:18,840 Speaker 3: Is ABC going to pay some kind of price for 634 00:31:18,880 --> 00:31:21,040 Speaker 3: allowing Kimmel to go back on air because the President, 635 00:31:21,040 --> 00:31:24,120 Speaker 3: for instance, alluded to making more money off the company 636 00:31:24,160 --> 00:31:24,720 Speaker 3: for doing so. 637 00:31:25,400 --> 00:31:28,320 Speaker 6: Yeah, it's certainly possible. I mean, we've seen President Trump 638 00:31:28,400 --> 00:31:32,120 Speaker 6: kind of go after you know, the broadcast networks threatened 639 00:31:32,120 --> 00:31:35,440 Speaker 6: to kind of revoke licenses, so he goes after anybody. 640 00:31:35,480 --> 00:31:38,320 Speaker 6: He uses his power, you know, the courts, to attack 641 00:31:38,360 --> 00:31:41,480 Speaker 6: anybody who says anything unflattering about him. But that's, you know, 642 00:31:41,560 --> 00:31:45,800 Speaker 6: definitely possible from a Disney perspective. Though you have to 643 00:31:45,840 --> 00:31:50,120 Speaker 6: remember this is a very very diversified company, So yes, 644 00:31:50,240 --> 00:31:53,920 Speaker 6: ABC is definitely a very important asset. But again, if 645 00:31:53,920 --> 00:31:56,600 Speaker 6: you put some numbers around this, scarlet. It makes up 646 00:31:56,640 --> 00:32:00,000 Speaker 6: only about they generate of Disney itself generates about nine 647 00:32:00,200 --> 00:32:03,920 Speaker 6: to one hundred billion dollars in revenue every year. ABC 648 00:32:04,120 --> 00:32:06,920 Speaker 6: is about five billion, five to six billion in revenue, 649 00:32:06,960 --> 00:32:10,240 Speaker 6: so it's just about five percent for the company. So again, 650 00:32:10,840 --> 00:32:14,320 Speaker 6: you know, small potatoes in the context of the company's financials. 651 00:32:14,320 --> 00:32:16,440 Speaker 6: But yes, you bring up a very important point about 652 00:32:16,480 --> 00:32:19,920 Speaker 6: culture wars. Unfortunately, I think Disney is in a losing 653 00:32:19,960 --> 00:32:23,600 Speaker 6: position whichever way, because they're either going to anger you know, 654 00:32:23,680 --> 00:32:26,280 Speaker 6: the conservatives or the other end of the spectrum. 655 00:32:26,400 --> 00:32:27,760 Speaker 4: So it's just tough. 656 00:32:28,440 --> 00:32:31,600 Speaker 3: Yeah, very quickly get that. In the days following kimmel suspension, 657 00:32:31,640 --> 00:32:34,360 Speaker 3: a number of people canceled or threatened to cancel their 658 00:32:34,360 --> 00:32:37,240 Speaker 3: Disney plus streaming services. Do we have a sense that 659 00:32:37,320 --> 00:32:39,880 Speaker 3: this might get kind of noisy when it comes to 660 00:32:39,920 --> 00:32:42,560 Speaker 3: the earning supports and the streaming numbers and subscriptions. 661 00:32:43,600 --> 00:32:46,320 Speaker 6: I mean, we've seen this kind of backlash before happen, 662 00:32:46,800 --> 00:32:49,160 Speaker 6: you know, in the case of certain programming and you 663 00:32:49,200 --> 00:32:52,960 Speaker 6: know with Netflix, with other streaming services. Typically we haven't 664 00:32:53,000 --> 00:32:55,720 Speaker 6: really seen it reflected in the numbers, even though there's 665 00:32:55,760 --> 00:32:58,960 Speaker 6: a lot of noise around it. So yes, maybe a 666 00:32:59,000 --> 00:33:00,720 Speaker 6: little bit of up and down, but I don't think 667 00:33:00,720 --> 00:33:03,480 Speaker 6: it'll have again any big needle moving effect on the 668 00:33:03,520 --> 00:33:04,880 Speaker 6: Disney Plus subscriber numbers. 669 00:33:05,280 --> 00:33:05,360 Speaker 3: Ah. 670 00:33:05,440 --> 00:33:06,800 Speaker 2: Iight, Keith, Well we got you here. I have to 671 00:33:06,800 --> 00:33:09,520 Speaker 2: ask do we have any news on succession to Bob Iger? 672 00:33:09,600 --> 00:33:12,920 Speaker 6: Hmmm, not yet, Not yet, Paul, I mean, that's the 673 00:33:12,960 --> 00:33:16,320 Speaker 6: biggest question always for Disney. He is supposed to retire 674 00:33:16,360 --> 00:33:18,880 Speaker 6: by the end of twenty twenty six. There is a 675 00:33:18,880 --> 00:33:22,080 Speaker 6: lot of rumblings that it might be somebody internal, you know, 676 00:33:22,400 --> 00:33:26,640 Speaker 6: we keep hearing about Dana Walden. Of course, nothing certain 677 00:33:26,800 --> 00:33:27,240 Speaker 6: just yet. 678 00:33:27,600 --> 00:33:30,719 Speaker 2: Our thanks to KEITHA. Rung Anathan Bloomberg Intelligence Senior Media Analyst. 679 00:33:31,000 --> 00:33:32,480 Speaker 2: We move next to some news in the food and 680 00:33:32,520 --> 00:33:35,360 Speaker 2: beverage industry. The coffee giant Strawbucks announced it will close 681 00:33:35,360 --> 00:33:38,240 Speaker 2: stores and eliminate nine hundred jobs in a one billion 682 00:33:38,200 --> 00:33:41,440 Speaker 2: dollar restructuring effort under new chief executive officer Brian nicchol. 683 00:33:41,680 --> 00:33:43,680 Speaker 2: For more, co host Scarlett Ffuh and I were joined 684 00:33:43,680 --> 00:33:47,320 Speaker 2: by Michael Halen, Bloomberg Intelligence Senior Restaurant and food service analyst. 685 00:33:47,520 --> 00:33:50,080 Speaker 2: We first asked Michael for his take on this week's news. 686 00:33:50,760 --> 00:33:54,000 Speaker 11: This was very clearly communicated to the street. Back in 687 00:33:54,040 --> 00:33:57,400 Speaker 11: April on their fiscal call, Management said that you know, 688 00:33:57,760 --> 00:34:01,120 Speaker 11: we expect more restructuring charges. Is we're going to continue 689 00:34:01,160 --> 00:34:05,800 Speaker 11: to evaluate our store base. Really, management wanted new CFO 690 00:34:06,000 --> 00:34:10,440 Speaker 11: Kathy Smith to be involved in the process, so this 691 00:34:10,560 --> 00:34:11,839 Speaker 11: was not a surprise, all right. 692 00:34:11,880 --> 00:34:13,799 Speaker 2: A shout out to my Starbucks on Route thirty five 693 00:34:13,840 --> 00:34:15,879 Speaker 2: and Wall Township, New Jersey. They do a great job, 694 00:34:15,920 --> 00:34:20,279 Speaker 2: great folks, very efficient, very good Mike. What does this 695 00:34:20,320 --> 00:34:23,200 Speaker 2: company need to do? What do they say is under 696 00:34:23,239 --> 00:34:24,960 Speaker 2: to do list to turn this company around? What are 697 00:34:25,000 --> 00:34:25,520 Speaker 2: you looking for? 698 00:34:26,040 --> 00:34:30,160 Speaker 11: Yeah, it's more operations in marketing and we're starting to 699 00:34:30,239 --> 00:34:33,760 Speaker 11: see things kind of inflect here. We think fiscal twenty 700 00:34:33,840 --> 00:34:38,759 Speaker 11: six should be a nice bounce back year. So you know, 701 00:34:38,840 --> 00:34:43,640 Speaker 11: first it's with the operations, right, so it's eliminating menu items, 702 00:34:43,760 --> 00:34:49,319 Speaker 11: increasing labor, which baristas. We're very happy about, creating a 703 00:34:49,320 --> 00:34:53,080 Speaker 11: smart queue for mobile orders, right, so the stores aren't 704 00:34:53,160 --> 00:34:58,000 Speaker 11: as chaotic and baristas aren't serving you know, mobile orders 705 00:34:58,000 --> 00:35:01,120 Speaker 11: for somebody thirty miles away before it help someone inside 706 00:35:01,120 --> 00:35:04,960 Speaker 11: the store. And then service standards, right, they're rolling out 707 00:35:05,000 --> 00:35:08,040 Speaker 11: these green Apron service standards this year. It's a big 708 00:35:08,080 --> 00:35:13,880 Speaker 11: investment on training and really nailing the consumer experience in 709 00:35:13,920 --> 00:35:15,920 Speaker 11: the store. And then from there it's the marketing and 710 00:35:15,960 --> 00:35:19,359 Speaker 11: marketing seems to be working. They pulled back on discounts 711 00:35:19,400 --> 00:35:21,799 Speaker 11: and what they're doing is more marketing. You'll see some 712 00:35:21,840 --> 00:35:25,400 Speaker 11: TV ads right. They're doing more digital marketing, and we 713 00:35:25,440 --> 00:35:27,640 Speaker 11: think that's a smart move. It seems to be paying 714 00:35:27,719 --> 00:35:34,319 Speaker 11: early dividends. Starbucks non rewards member transactions are up. Non 715 00:35:34,440 --> 00:35:39,319 Speaker 11: discounted rewards members transactions are up, and we think these 716 00:35:39,360 --> 00:35:41,680 Speaker 11: are a sign that sales are going to inflect higher 717 00:35:41,760 --> 00:35:42,680 Speaker 11: in the coming months. 718 00:35:43,239 --> 00:35:45,520 Speaker 3: Okay, but this is taking a while. Paul and I 719 00:35:45,520 --> 00:35:47,520 Speaker 3: were just saying that Brian Nickel owns this now he's 720 00:35:47,560 --> 00:35:50,080 Speaker 3: been CEO for a year and they're still in turnaround mode. 721 00:35:50,120 --> 00:35:52,000 Speaker 3: They're still in kind of like let's figure out our 722 00:35:52,040 --> 00:35:56,200 Speaker 3: path forward. Investors, please be patient. Are investor is going 723 00:35:56,239 --> 00:35:58,600 Speaker 3: to continue to be patient for another six months to 724 00:35:58,640 --> 00:35:59,040 Speaker 3: one year? 725 00:35:59,520 --> 00:36:01,279 Speaker 11: I don't think they're going to be patient for six 726 00:36:01,320 --> 00:36:03,320 Speaker 11: months to one year. In terms of the stock price, 727 00:36:03,360 --> 00:36:07,040 Speaker 11: I think Brian Nichols job is very much safe. You know, 728 00:36:07,160 --> 00:36:10,680 Speaker 11: you can't turn around an aircreraft carrier on a dime, right, 729 00:36:10,719 --> 00:36:14,279 Speaker 11: This is a massive organization eighteen thousand stores just here 730 00:36:14,320 --> 00:36:18,000 Speaker 11: in North America over forty thousand globally. So yes, this 731 00:36:18,160 --> 00:36:22,000 Speaker 11: is taking longer than a lot anticipated you know, myself included. 732 00:36:23,400 --> 00:36:26,239 Speaker 11: You know, our investor is going to be happy if 733 00:36:26,280 --> 00:36:28,799 Speaker 11: they don't see same sore sales inflect here in the 734 00:36:28,800 --> 00:36:32,400 Speaker 11: first quarter of fiscal twenty six. No, they're not going 735 00:36:32,440 --> 00:36:34,080 Speaker 11: to be happy, and you're going to see it reflected 736 00:36:34,239 --> 00:36:35,120 Speaker 11: in the share price. 737 00:36:35,200 --> 00:36:35,359 Speaker 6: Right. 738 00:36:35,440 --> 00:36:38,719 Speaker 11: So yeah, I mean I think they're they're making the 739 00:36:38,800 --> 00:36:42,879 Speaker 11: right moves. This has been a longer turnaround than most 740 00:36:42,920 --> 00:36:46,440 Speaker 11: had expected. But you know, I think Brian Nichols pressing 741 00:36:46,440 --> 00:36:47,560 Speaker 11: all the right buttons right now. 742 00:36:47,800 --> 00:36:50,520 Speaker 2: Our thanks to Michael Halen, Bloomberg Intelligence senior restaurant and 743 00:36:50,560 --> 00:36:53,960 Speaker 2: food service analyst. That's this week's edition of Bloomberg Intelligence 744 00:36:53,960 --> 00:36:56,680 Speaker 2: on Bloomberg Radio, providing in depth research and data on 745 00:36:56,719 --> 00:36:59,200 Speaker 2: two thousand companies and one hundred and thirty industries. And 746 00:36:59,320 --> 00:37:01,560 Speaker 2: remember you can that is Bloomberg Intelligence via b I 747 00:37:01,640 --> 00:37:04,440 Speaker 2: go on the terminal, I'm Paul Sweeney. Stay with us. 748 00:37:04,560 --> 00:37:07,200 Speaker 2: Today's top stories and global business headlines are coming up 749 00:37:07,400 --> 00:37:08,680 Speaker 2: right now. 750 00:37:10,040 --> 00:37:10,080 Speaker 7: M