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Speaker 1: Bloomberg Audio, Studios, podcasts, radio news. This is Bloomberg Intelligence

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Speaker 1: with Scarletfoo and Paul Sweeney.

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Speaker 2: How do you think the FED is looking at tariffs?

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Speaker 2: The uncertainty of terriffs.

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Speaker 3: Let's take a look at the sectors and how they performed.

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Speaker 2: A lot of investors getting whipsaled every day by news events,

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Speaker 2: breaking market headlines.

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Speaker 1: And corporate news from across the globe.

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Speaker 3: Could we see a market disruption of market event?

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Speaker 2: So people just too exuberant out there?

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Speaker 3: You see some so called low quality stocks driving this

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Speaker 3: short term rally.

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Speaker 1: Bloomberg Intelligence with Scarletfoo and Paul Sweeney on Bloomberg Radio,

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Speaker 1: YouTube and Bloomberg Originals.

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Speaker 2: On today's Bloomberg Intelligence Show, we dig inside the big

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Speaker 2: business story is impacting Wall Street and the global markets.

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Speaker 3: Each and every week we provide in depth research and

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Speaker 3: data on some of the two thousand companies and one

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Speaker 3: hundred and thirty industries are analysts covered worldwide.

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Speaker 2: Today, we'll look at how the automaker Ford is being

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Speaker 2: impacted by its struggling ev business.

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Speaker 3: Plus we'll dive into why the food and beverage giant

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Speaker 3: Craft High is replacing its CEO.

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Speaker 2: But first we begin with research. Bloomberg Intelligence recently put

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Speaker 2: out on companies to watch for in the new year.

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Speaker 3: It's titled fifty Companies to Watch in twenty twenty six.

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Speaker 3: We were joined by Tim Craig head, Bloomberg Intelligence Global

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Speaker 3: Chief Content Officer.

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Speaker 2: We first asked Tim to break down this research put

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Speaker 2: a little bit of context.

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Speaker 4: This group of fifty are all part of what we

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Speaker 4: call focus ideas. It's a broader group of about one hundred.

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Speaker 4: These are all high conviction ideas. They have high confiction

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Speaker 4: ideas where we see something very different from what we

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Speaker 4: think is embedded in market expectations and there's catalysts ahead

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Speaker 4: to change the market mindset. Those catalysts coming up in

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Speaker 4: twenty twenty six, and that's where these fifty come into

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Speaker 4: and across the group this year. The biggest bucket are two.

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Speaker 4: One is just simply new product innovation that is being

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Speaker 4: rapped out into twenty twenty six. The other no surprise

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Speaker 4: AI related, and some of it's the tech companies. Some

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Speaker 4: of it are companies that are feeding into the process

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Speaker 4: and happy to get into some of those or other

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Speaker 4: topics as well. Suches, cyclical pressures and competitive concerns. On

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Speaker 4: the negative side, and there's a couple of other things

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Speaker 4: as well.

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Speaker 2: So on the new products, give us an example of

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Speaker 2: a new product that you guys think might really be

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Speaker 2: important for a company in a stock.

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Speaker 5: Yeah.

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Speaker 4: So, you know, it's interesting because some of these can

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Speaker 4: be quite technical, Paul. You know, you think a Nilan

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Speaker 4: Pharma or Bridge Bio are two biotech companies that have

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Speaker 4: new products coming. One of them relates to heart issues,

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Speaker 4: another relates to dwarfism. But it's new products that will

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Speaker 4: expand to market and drive we think, significantly better revenue

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Speaker 4: and earnings. On the other hand, there's some good old

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Speaker 4: fashioned names that you know and you love. Canada Goose

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Speaker 4: has new product flow coming through that we think reinvigorates

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Speaker 4: the top line. Brinker, I think Chili's the restaurant are

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Speaker 4: going through a whole new upgrade of their menu and

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Speaker 4: up selling clients with good stuff like Margarita's with Patron

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Speaker 4: and so the new product idea can expand across a

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Speaker 4: whole number of different segments. It's quite interesting.

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Speaker 5: Yeah.

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Speaker 3: I'm looking at Decker's as one of the new products

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Speaker 3: companies you highlight, and their ug is introducing styles to

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Speaker 3: stay relevant beyond the winter months. Let's talk a little

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Speaker 3: bit about AI because that's going to continue to be

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Speaker 3: a big theme, even as investors are starting to make

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Speaker 3: distinctions between companies that are in it for good and

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Speaker 3: those that maybe kind of fat ish. What are some

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Speaker 3: new names that surprised you in terms of their making

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Speaker 3: the list.

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Speaker 4: Yeah, it's it's interesting. I'll give you the new names

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Speaker 4: and the ones that aren't on here, and i'll do

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Speaker 4: the latter first. There's none of the big llms this

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Speaker 4: year that are on our list, or in Nvidia that's

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Speaker 4: not on a list. What you find are other either

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Speaker 4: enabling technologies, so I think LAMB Research. It's a semicap

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Speaker 4: equipment company that makes the gear that you make the

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Speaker 4: semiconductors with. That's quite well positioned. TSMC, the world's largest

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Speaker 4: foundry that's making the AI accelerator chips that feed into

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Speaker 4: the llms, or even back up in the channel of

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Speaker 4: how do you build out AI constellation, which is the

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Speaker 4: US's largest nuclear utility. That's quite important if you're going

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Speaker 4: to generate the electricity to drive the data centers to

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Speaker 4: drive AI acs. Interestingly, European construction company they own Turner,

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Speaker 4: which is the US's largest construction company. They've got the

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Speaker 4: biggest order book for building out data centers. There's a

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Speaker 4: host of different kinds of ways you can think about

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Speaker 4: leveraging AI beyond just simply the big lllms like Google

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Speaker 4: or Open AI or things along those lines that you

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Speaker 4: hear about.

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Speaker 2: Tim On this list, you and the bi analysts also

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Speaker 2: highlight stocks that might be have pressure on the downside,

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Speaker 2: whether it's cyclical pressure, competition, MNA, project delay. Give us

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Speaker 2: a name or two that might have some downside risk

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Speaker 2: this year.

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Speaker 4: Yeah, it's interesting on that think about what's going on

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Speaker 4: from the standpoint of you're just talking about airlines from

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Speaker 4: a European vantage point, we've got wage pressures that are

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Speaker 4: a rising and for Air France KLM, a big chunk

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Speaker 4: of their business is the Transatlantic market, which is getting

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Speaker 4: more and more competitive. And with both of those factors,

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Speaker 4: we think that there's risks to estimates. China Railway Group

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Speaker 4: it's a big state owned enterprise in China. It's one

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Speaker 4: of the big four engineering companies. And to the degree

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Speaker 4: that China is shifting towards more technology and innovation driven

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Speaker 4: investment and less away from bridges and roads and railroads

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Speaker 4: and things along those lines. China Railway Group we think

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Speaker 4: has downside risk. A couple little companies that are unusual

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Speaker 4: but intriguing. Dino Polska, which you've never heard of, I'm sure,

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Speaker 4: is a Polish supermarket company, but they've got two big

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Speaker 4: European competitors that are coming into the Polish market. Again,

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Speaker 4: downside risk to earnings. And the same thing can be

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Speaker 4: said about Joined Labs. We talked about a couple of

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Speaker 4: positive healthcare companies. This is one of the contract research

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Speaker 4: companies that helps a pharmaceutical do their drug development. China

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Speaker 4: is now looking to go broad and global with approvals

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Speaker 4: on new pharmaceutical products. Join, who focuses in all in

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Speaker 4: China is losing some of their business, So there's lots

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Speaker 4: of ways we can think about this our.

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Speaker 3: Thanks to Tim Kraik, head Bloomberg Intelligence Chief Content Officer, we.

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Speaker 2: Recently focused on a Bloomberg Big Takes story entitled Saudi's

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Speaker 2: Sisters wieled fifty billion dollar fortune as global powerbrokers. You

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Speaker 2: can find out on Bloomberg dot com and the Terminal.

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Speaker 3: The story looks at the Olion Group, a Saudi empire

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Speaker 3: led by sisters that has grown in influence. It has

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Speaker 3: a nearly thirteen billion dollars stock portfolio in the US,

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Speaker 3: as well as steaks and companies like black Rock and

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Speaker 3: JP Morgan Chase.

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Speaker 5: For more.

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Speaker 2: Scarlett and I were joined by Devin Pendleton, Bloomberg Wealth Reporter.

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Speaker 2: We first asked Devin to explain what the allion is

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Speaker 2: and who the sisters are behind it.

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Speaker 6: So it is.

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Speaker 7: Lubna and her sister Husam Allion. They're both in their

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Speaker 7: early seventies and they have been at the helm of

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Speaker 7: this family enterprise for decades, for more than forty years.

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Speaker 5: Wow.

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Speaker 3: And they have fairly low profiles too. That's the thing

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Speaker 3: that is striking. They have these low profiles, but they

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Speaker 3: are known as steally negotiators. Tell us what they've done.

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Speaker 7: Yeah, they've done an incredible job building this family business,

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Speaker 7: which was started by their father, who was a really

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Speaker 7: unbelievable character. He basically worked his way up from nothing.

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Speaker 7: You know, he's not a royal, was not connected to

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Speaker 7: the royals at a young age, but he built an

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Speaker 7: oil servicing company which he grew striking deals with all

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Speaker 7: sorts of consumer brand companies in the US, bringing them

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Speaker 7: to Saudi Arabia, everything from Coca Cola to cheese its

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Speaker 7: to Oreos, and he came over to the US in

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Speaker 7: the early nineteen sixties, was very inspired by what he

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Speaker 7: saw and bought some bank stocks, and basically his daughters

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Speaker 7: took over that business which was sprawling. I mean it

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Speaker 7: was in all sorts of sectors real estate, oil, filled services,

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Speaker 7: consumer goods, and hung on to those equity stakes, banking stakes.

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Speaker 7: So now they have this incredible portfolio of investments in

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Speaker 7: the US on Wall Street as well as this you know,

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Speaker 7: booming multi sector business in Saudi Arabia.

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Speaker 2: So but people in power know these two sisters, they

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Speaker 2: were at the White House recently tell us about that.

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Speaker 2: How do they subtlely wield their influence?

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Speaker 7: They are not noisy people. I think it's one thing

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Speaker 7: to do business and thrive in Saudi Arabia as you

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Speaker 7: have to really sort of be be quiet, be force full,

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Speaker 7: sort of no be a little bit deferential to you know,

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Speaker 7: who's really in charge, which would be the government and

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Speaker 7: the king and the Crown Prince. But they have had

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Speaker 7: long term ties with the US. I mean, you really

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Speaker 7: saw that at the White House dinner. You mentioned Paul,

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Speaker 7: she was sitting right next to Elon Musk. But you know,

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Speaker 7: arguably one of the most important people in the room

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Speaker 7: because she has these connections on Wall Street through their

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Speaker 7: long term equity investments. It's really important right now, especially

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Speaker 7: because the Kingdom is trying to bring in a lot

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Speaker 7: of inbound investment to transform their economy past oil. It's

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Speaker 7: a big deal for them to be bringing in money.

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Speaker 7: And these Alliance Sisters have had these connections for a

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Speaker 7: long long time, so they're more important than ever.

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Speaker 3: So they have the connections with the right people in

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Speaker 3: Saudi Arabia. How does their I mean when I think

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Speaker 3: about prominent investors in the kingdom, I think about Prince

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Speaker 3: Abolid beIN to Lull and how he's been very vocal

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Speaker 3: about his positions. He's often seen on media networks. You

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Speaker 3: don't hear about these Alliance Sisters at all, and I

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Speaker 3: wonder how much of that is, you know, is part

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Speaker 3: of their success story.

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Speaker 7: Totally, it's so so important. I think they are extremely discreet.

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Speaker 7: They are, like I said, like they really know their

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Speaker 7: role in the kingdom, like they're important. They step in

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Speaker 7: and help when they need to. For example, in Saudi

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Speaker 7: Ramco Ipo. Back in twenty nineteen, the kingdom was having

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Speaker 7: trouble kind of getting people excited and really getting the

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Speaker 7: investors they needed early to get backstop this IPO. They

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Speaker 7: ask some influential families and the Alliance were one that

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Speaker 7: you know, they really showed up. That matters for the kingdom,

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Speaker 7: and it also gives them, you know, license to really

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Speaker 7: expand their business as much as they need to into

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Speaker 7: being a position of power to help out, but also

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Speaker 7: you know, have favors in return.

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Speaker 2: And the Bloomberg the Rich Go function lists their wealth

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Speaker 2: of the family at approximately fifty billion dollars US.

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Speaker 7: Right, Yes, fifty billion dollars US. But I can guarantee

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Speaker 7: you that that is a conservative estimate.

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Speaker 2: Is that right now? I understand that they while they

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Speaker 2: keep a low profile of these sisters, they have good

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Speaker 2: relationships with some of the big folks on Wall Street

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Speaker 2: and like Larry Fink of black Rock and things like that.

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Speaker 2: So that's got to be useful.

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Speaker 7: Yeah, absolutely. I mean, just through one portfolio alone, they

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Speaker 7: have their big investors in Blackrock, the equity investors. They

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Speaker 7: have a one and a half billion dollar steak in

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Speaker 7: black Rock. They own an almost billion dollar steak in

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Speaker 7: JP Morgan. It's actually where lived No Lion first got

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Speaker 7: her start. She was initially working a low level banker

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Speaker 7: at JP Morgan right after college. So they're really worldly,

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Speaker 7: very well traveled and just tough, tough in this sort

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Speaker 7: of very you know, meaningful business sense, like negotiators. They're

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Speaker 7: very involved in their investments.

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Speaker 3: Our thanks to Devin Pendleton, Bloomberg Wealth Reporter. Coming up,

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Speaker 3: we'll move to the biotech sector and why my aloma

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Speaker 3: patients are failing to get the treatment they need.

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Speaker 2: You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in

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Speaker 2: depth research and data on two thousand companies and one

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Speaker 2: hundred and thirty industries.

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Speaker 3: You can access Bloomberg Intelligence via bi go on the terminal.

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Speaker 3: I'm Scarlet Food and.

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Speaker 2: I'm Paul Sweeney, and this is Bloomberg.

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Speaker 1: This is Bloomberg Intelligence with Scarlet Foo and Paul Sweeney

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Speaker 1: on Bloomberg Radio.

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Speaker 2: We moved now to loose in the auto sector.

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Speaker 3: This week, automaker Ford announced it will take nineteen and

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Speaker 3: a half billion dollars in charges tied to an overhaul

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Speaker 3: of its EV business. And this comes after years of

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Speaker 3: Ford struggling to make its electric vehicle business profitable.

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Speaker 2: From what we were joined by Steven Mann Bloomberg Intelligence

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Speaker 2: Global Autos and Industrials research analysts.

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Speaker 3: We began by asking Steve for his reaction to the

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Speaker 3: nineteen and a half billion dollar charge.

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Speaker 8: Yeah, it is a very big number. It pretty much

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Speaker 8: backed up the truck on these charges. But the important

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Speaker 8: thing is it's clearing the deck for next year.

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Speaker 5: Right.

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Speaker 8: There is a couple of earning's tailwind for Ford and

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Speaker 8: actually to their competitors in Detroit as well. So the biggest,

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Speaker 8: I think the biggest write down. Two biggest write down

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Speaker 8: is writing down the losses on their Mustang Mochy. You

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Speaker 8: know they've been losing around twenty five thousand dollars on

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Speaker 8: the EBIT line per vehicle, so it's massive. The other

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Speaker 8: is the charges really on their joint venture with their

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Speaker 8: battery supplier in Korea. So you know they're going to

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Speaker 8: repurpose one of those plants for energy storage. So again

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Speaker 8: it's really clearing the deck. There's a couple of tailwinds

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Speaker 8: for twenty twenty six, which includes you know, Trump's loosening

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Speaker 8: the MPG miles per gallon rule.

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Speaker 2: Yeah, absolutely, does that reflect Steve. Investors want these auto

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Speaker 2: companies to kind of back away or proceed more cautiously

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Speaker 2: towards their move towards EV's.

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Speaker 8: Yeah, definitely, especially in the US. And look, Ford is

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Speaker 8: you know, not just pivoting in the US, but they're

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Speaker 8: also pivoting in Europe. You know, they just announced a

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Speaker 8: joint venture with Renault to develop EVS over in Europe.

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Speaker 8: And you know, Ford doesn't really have a big presence

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Speaker 8: in Europe, so they're taking that approach of partnership. GM

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Speaker 8: is doing the same thing. Remember they took one point

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Speaker 8: six billion dollar charge, much more modest than the nineteen

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Speaker 8: billion that Ford is taking. But you know, GM is

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Speaker 8: dialing back but keeping one foot on the EV's. I

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Speaker 8: think they I believe they still think that they're you know,

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Speaker 8: they still can succeed, especially when they introduce the Chevy

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Speaker 8: Bolt in the new year.

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Speaker 2: So, Steve, you know, we're many years into this transition

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Speaker 2: to EV's and you know, I know there are many

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Speaker 2: there are European country, Scandinavian countries where it's almost one

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Speaker 2: hundred percent of their fleets are are their new car

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Speaker 2: sales are EV's. That ain't the case here in the US.

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Speaker 2: With some hindsight here, why hasn't why haven't EV's taken

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Speaker 2: a better hold here in this US market.

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Speaker 8: Yeah, it definitely needs more, you know, regulatory support for

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Speaker 8: EV to take grow because you know, EV uh, there's

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Speaker 8: a lot of three hurdles right that consumers have to

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Speaker 8: get over, which is the price, the range, and the

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Speaker 8: convenience right of charging infrastructure. You know, without government support

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Speaker 8: to actually build that out, it's going to take some

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Speaker 8: time for the electrification transition. I think a lot of

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Speaker 8: people in the industry still feels that electrification, battery EV,

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Speaker 8: maybe hybrids in between is the way to go in

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Speaker 8: the future. But you know, I think there's a huge

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Speaker 8: paradigm shift that consumers hair have to get over, and

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Speaker 8: it's really challenging to do that without government support.

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Speaker 2: Here our thanks to Steve Man Bloomberg Intelligence, Global, Autos

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Speaker 2: and Industrials Research Channels.

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Speaker 3: We move next to some news in the food and

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Speaker 3: beverage industry.

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Speaker 2: This week, craft Times announced it would be replacing its

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Speaker 2: CEO with former Kelenova CEO Steve Kahaling on January first.

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Speaker 3: This comes as the company plans to split into two

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Speaker 3: separate publicly traded companies. One will sell condiments and boxed meals,

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Speaker 3: while the other will include its slower growing grocery products

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Speaker 3: like lunchibles for.

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Speaker 2: More, Scarlett and I were joined by Christina Peterson Bloomberg

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Speaker 2: Food Industry. We first asked Christina to break down the

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Speaker 2: CEO change.

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Speaker 6: We had expected in September that the current CEO would

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Speaker 6: lead one of the two new companies, specifically the one

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Speaker 6: that it's the grocery Staples. They actually don't have official

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Speaker 6: names yet, but that was a collection of the least

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Speaker 6: profitable or less profitable food items there, including things like

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Speaker 6: lunch a Bowles and Oscar Meyer Deli Meats. The surprise

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Speaker 6: came this morning that he is in fact not going

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Speaker 6: to lead that company, and instead they are bringing in

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Speaker 6: Steve kay Helene from Kelenova to lead the second company

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Speaker 6: after the split has gone through. That is being called

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Speaker 6: the Global Taste Elevation Company, and that's going to have Heinz, Ketchup, Kraft,

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Speaker 6: mac and Cheese, some of those beloved iconic products.

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Speaker 3: So that's the fastcoring part of the company, and the

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Speaker 3: other one is kind of the you know, the equivalent

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Speaker 3: of CNN TNT and you know, the leave it behind

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Speaker 3: assets that you know are are you're managing the decline?

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Speaker 3: What can you tell us about Steve cal Lane, the

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Speaker 3: former Kelenova CEO. What is his approach his philosophy.

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Speaker 6: Well, I just spoke with him and he said that

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Speaker 6: he's going to be focused on bringing organic growth to

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Speaker 6: the company. We talked a little bit about focusing on

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Speaker 6: some of the health and wellness trends that consumers are

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Speaker 6: looking for, increasing offerings with protein, with fiber, with shorter

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Speaker 6: ingredient lists, you know, the so called cleaner labels. So

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Speaker 6: they'll definitely be leaning into that. It sounds like a

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Speaker 6: little bit more. He also led Kellogg through its split.

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Speaker 6: The Kellig Company split into w K Kellogg and then Kelenova.

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Speaker 6: Both of those companies were then separately acquired. I asked

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Speaker 6: him if he thought that could be a path here,

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Speaker 6: and he said, it's hard to predict the future, so

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Speaker 6: not rolling it out.

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Speaker 2: So what's been the challenge for craft Minds over the

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Speaker 2: last number of years?

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Speaker 6: I mean, in general, the food companies are all struggling

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Speaker 6: with this shift as consumers move towards healthier, less processed food.

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Speaker 6: The company says that they just had too many brands

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Speaker 6: and that splitting into two will help them focus on

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Speaker 6: each component. I think that there is some analyst chatter

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Speaker 6: that that's what companies say when they just need to

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Speaker 6: know spin off some of their less profitable items. But

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Speaker 6: they will tell you that they expect both companies will

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Speaker 6: have better value when there's an ability to focus more

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Speaker 6: on the condiments and box meals and then on some

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Speaker 6: of the other foods.

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Speaker 3: Put this all into context for us when Paul talks

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Speaker 3: about how you know this group has been kind of

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Speaker 3: struggling overall. We also saw that with PepsiCo with Coca Cola,

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Speaker 3: I mean, they have had to rethink their strategy completely.

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Speaker 6: Yet there's just been a lot of movement in the

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Speaker 6: food industry right now. PepsiCo announced some pretty dramatic changes.

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Speaker 6: They're going to reduce the number of products they sell

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Speaker 6: by twenty percent and lower prices in some of their

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Speaker 6: key brands as part of agreement with activist investor Elliott

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Speaker 6: Investment Management. Coke has a new CEO. I think coc

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Speaker 6: is in pretty solid shape. They've been doing their shares

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Speaker 6: have been doing really well compared to some of the

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Speaker 6: other business companies. But yet, in general, the companies that

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Speaker 6: I think are really tapping into this health and wellness

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Speaker 6: interest in consumers are often the smaller startup brands and

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Speaker 6: the big companies are playing catch up not only with them,

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Speaker 6: but some of the private label companies too that are

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Speaker 6: really nimble and able to get some of these new

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Speaker 6: products to market really fast.

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Speaker 3: Are thanks to Christina Peterson Bloomberg, a food industry reporter.

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Speaker 2: We move next to the biotech sector. Bloomberg Intelligence recent

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Speaker 2: came out with research which gives an overview of the

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Speaker 2: blood cancer myloma.

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Speaker 3: According to Bloomberg Intelligence, multiple maloma patient numbers are rising

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Speaker 3: globally due to the aging population and just by an

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Speaker 3: evolved treatment landscape that's leveraged the FDA's accelerated drug approval.

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Speaker 3: There's still unmet need for more.

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Speaker 2: On this and the latest in the biotech sector. We

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Speaker 2: were joined by Sam Fazzelli, Bloomberg Intelligence, director of Research

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Speaker 2: for Global Industries and senior pharmaceuticals analysts.

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Speaker 3: We began by asking Sam, where we are in terms

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Speaker 3: of treating maloma.

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Speaker 5: Well, let me tell you about these cancers, treatments and

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Speaker 5: these cancer areas where patient numbers in terms of those

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Speaker 5: who live rather than those who die is fundamentally changing.

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Speaker 5: Breast cancer has been one of them. Prostate cancers another one,

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Speaker 5: melanoma is another one which of course people are familiar with,

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Speaker 5: and of course myloma has been one that we've also

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Speaker 5: got there. There are patients who are alive today who

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Speaker 5: were diagnosed in nineteen ninety six, nineteen ninety eight, and

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Speaker 5: there are and there have been people developments in that

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Speaker 5: space that literally are changing completely the way that people

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Speaker 5: end up living with their disease. Of course, it's not

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Speaker 5: for everybody that ends up like that, but the average

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Speaker 5: mortality or the average life expectance you have the patients

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Speaker 5: with maloma has significantly changed. And what is it. It's

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Speaker 5: a cancer of the bone marrow, which then of course

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Speaker 5: translates to some changes in your blood, so he's a

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Speaker 5: hematological cancer. And yet another major development in the last

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Speaker 5: week or so that came out at Orlando, a conference

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Speaker 5: that was held last week.

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Speaker 3: What is the treatment landscape then for myloma?

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Speaker 5: Yeah, so, given that it goes on for so long,

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Speaker 5: now we've got first line, second line, third line, fourth line, fifth,

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Speaker 5: et cetera. Right, there's so many patients. There are some

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Speaker 5: patients that enter trials these days that have had eight

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Speaker 5: lines of therapy. But that's I would say, a good thing.

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Speaker 5: That means we have drugs to treat people every time

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Speaker 5: they fail a previous one. The most exciting recent development

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Speaker 5: was this data that came out of Johnson and Johnson's

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Speaker 5: trial called Majestic three, which takes a special type of antibody,

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Speaker 5: married it with a well known accepted drug on the

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Speaker 5: market today called Darzelex. Also another J and J Rug

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Speaker 5: and Lo and behold. At thirty six months therapy, eighty

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Speaker 5: three percent of patients were alive versus the next big thing,

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Speaker 5: best thing that we've just had recently added to the

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Speaker 5: armamentarium at about fifty the massive shift in survival. I mean,

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Speaker 5: these are things that we don't often see in oncology.

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Speaker 5: Do you see it? You get standing ovations and you

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Speaker 5: get celebrations because it makes a huge different to patience.

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Speaker 5: So that's what we've been seeing recently.

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Speaker 2: I say, I'm here in the United States. The Trump

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Speaker 2: administration has taking a real hard line against some federal

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Speaker 2: funding of universities, and I know a lot of universities

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Speaker 2: are saying that's really hitting their funding for their medical centers,

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Speaker 2: for example, some of the medical research. Are you seeing that?

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Speaker 2: Are you hearing that from the companies? Is the effects

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Speaker 2: are they being felt yet? Or is that something in

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Speaker 2: the future.

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Speaker 5: No, I would say that type of research funding is

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Speaker 5: something that's going to translate into trouble in five to

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Speaker 5: ten years time if indeed it sticks, and if indeed

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Speaker 5: you really end up with people not being able to

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Speaker 5: start a scientific career because they can't get money to

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Speaker 5: do their research. Now, I had a conversation with somebody

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Speaker 5: who said, actually, it's not as bad as it sounds,

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Speaker 5: only some areas that are being caught. The budget hasn't

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Speaker 5: been halved, And then others tell me something different. So

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Speaker 5: let's see how this all pans out in twenty twenty six.

439
00:24:07,520 --> 00:24:10,040
Speaker 5: But if it goes in the bad way that you

440
00:24:10,080 --> 00:24:12,240
Speaker 5: were just referring to, you're going to end up with

441
00:24:12,320 --> 00:24:15,320
Speaker 5: fewer scientists in five to ten years time in US

442
00:24:15,480 --> 00:24:19,879
Speaker 5: universities developing these new ideas. And then of course betters

443
00:24:19,920 --> 00:24:24,080
Speaker 5: that all go China and they are doing a fantastic

444
00:24:24,200 --> 00:24:28,720
Speaker 5: job of getting their research funded and pushed. And that's

445
00:24:28,800 --> 00:24:32,000
Speaker 5: where I think we all US and Europe need to

446
00:24:32,040 --> 00:24:34,679
Speaker 5: watch because you will lose the competitiveness angle.

447
00:24:34,840 --> 00:24:37,840
Speaker 2: Our Thanks to Sam Fazelli, Bloomberg Intelligence, Director of Research

448
00:24:37,840 --> 00:24:40,760
Speaker 2: for Global Industries and Senior Pharmaceuticals analyst.

449
00:24:40,600 --> 00:24:43,040
Speaker 3: Coming up, Well, look at why the global management consulting

450
00:24:43,040 --> 00:24:45,080
Speaker 3: firm McKenzie is cutting headcount.

451
00:24:45,200 --> 00:24:47,960
Speaker 2: You're listening to Bloomberg Intelligence on Bloomberg Radio of writing

452
00:24:48,000 --> 00:24:50,119
Speaker 2: in depth research and data on two thousand companies and

453
00:24:50,119 --> 00:24:51,320
Speaker 2: one hundred and thirty industries.

454
00:24:51,400 --> 00:24:53,679
Speaker 3: You can access Bloomberg Intelligence through b I go on

455
00:24:53,760 --> 00:24:55,440
Speaker 3: the terminal. I'm Scarlett Faxe.

456
00:24:55,280 --> 00:24:57,320
Speaker 2: And I'm Paul Sweeney, and this is Bloomberg.

457
00:25:05,119 --> 00:25:09,600
Speaker 1: This is Bloomberg Intelligence with Scarlett foo and Paul Sweeney

458
00:25:09,960 --> 00:25:11,440
Speaker 1: on Bloomberg Radio.

459
00:25:12,080 --> 00:25:14,480
Speaker 2: We move next to some news at the global management

460
00:25:14,480 --> 00:25:15,959
Speaker 2: consulting firm McKenzie and Company.

461
00:25:16,080 --> 00:25:18,400
Speaker 3: This week, the firm announced its leadership is cutting about

462
00:25:18,400 --> 00:25:22,000
Speaker 3: ten percent of headcount across non client facing departments.

463
00:25:21,560 --> 00:25:24,560
Speaker 2: Good amount to a few thousand job cups over eighteen

464
00:25:24,600 --> 00:25:26,399
Speaker 2: to twenty four months. And this comes even as the

465
00:25:26,480 --> 00:25:28,840
Speaker 2: firm marks its one hundred year anniversary.

466
00:25:28,920 --> 00:25:31,760
Speaker 3: McKenzie's revenue growth has flatlined in the last five years,

467
00:25:31,840 --> 00:25:34,280
Speaker 3: leading to a reset after some rapid hiring over the

468
00:25:34,359 --> 00:25:35,240
Speaker 3: prior decade.

469
00:25:35,320 --> 00:25:36,800
Speaker 2: For more on all of this, we were joined by

470
00:25:36,880 --> 00:25:40,280
Speaker 2: shri Na Aranjin, Bloomberg News Chief Wall Street correspondent.

471
00:25:40,440 --> 00:25:42,639
Speaker 3: We began by asking Tree to breakdown why the firm's

472
00:25:42,680 --> 00:25:44,680
Speaker 3: last five years have been so disappointing.

473
00:25:45,080 --> 00:25:48,720
Speaker 9: Around twenty twenty one, McKenzie revenue at the fifteen billion

474
00:25:48,720 --> 00:25:50,680
Speaker 9: dollar monk. Here we are in twenty twenty four to

475
00:25:50,680 --> 00:25:52,879
Speaker 9: twenty five. By the timesas y RNZ, we're going to

476
00:25:52,880 --> 00:25:55,200
Speaker 9: be sixteen billion, just a little bit over. So they've

477
00:25:55,200 --> 00:25:58,280
Speaker 9: operated in this narrow band of fifteen billion dollars to

478
00:25:58,320 --> 00:26:01,520
Speaker 9: sixteen billion dollars an annual revenue, which is great. Any

479
00:26:01,560 --> 00:26:05,480
Speaker 9: other management consulting firm would absolutely love to post numbers

480
00:26:05,520 --> 00:26:07,880
Speaker 9: like that. For McKinsey, it is a sense that their

481
00:26:07,920 --> 00:26:11,120
Speaker 9: revenue has flatlined a little bit. And you did mention

482
00:26:11,320 --> 00:26:14,960
Speaker 9: their one hundred year celebrations right which twenty twenty six,

483
00:26:15,000 --> 00:26:17,360
Speaker 9: that is when they will turn one hundred. So they

484
00:26:17,400 --> 00:26:20,480
Speaker 9: had this annual partner gathering which also doubled up as

485
00:26:20,520 --> 00:26:23,119
Speaker 9: this kickoff for their one hundred year festivities. And for

486
00:26:23,160 --> 00:26:26,119
Speaker 9: those who were there who listened to Bob's Turnfels, the

487
00:26:26,160 --> 00:26:29,520
Speaker 9: global managing partner at McKenzie, the de facto leader, you

488
00:26:29,600 --> 00:26:33,600
Speaker 9: could sense some plan spoken bravado. He was asking people,

489
00:26:33,680 --> 00:26:36,200
Speaker 9: are you in for this mission? And those who say yes,

490
00:26:36,640 --> 00:26:38,879
Speaker 9: I can assure you good times are ahead, because it

491
00:26:38,920 --> 00:26:40,919
Speaker 9: is also an acknowledgment that the last few years have

492
00:26:41,000 --> 00:26:44,480
Speaker 9: been rocky, not just from its standpoint of its financial health,

493
00:26:44,560 --> 00:26:46,320
Speaker 9: but you have to think about some of the challenges

494
00:26:46,320 --> 00:26:49,439
Speaker 9: in the controversies that McKenzie has had to navigate, the

495
00:26:49,480 --> 00:26:52,080
Speaker 9: opioid scandal, some of the criticism over their work in

496
00:26:52,240 --> 00:26:54,240
Speaker 9: China and Saudi Arabia and even back home here in

497
00:26:54,280 --> 00:26:58,480
Speaker 9: the US with Ice for instance. These are questions that

498
00:26:58,560 --> 00:27:00,840
Speaker 9: were asked and stuff that McKenzie has had to answer,

499
00:27:01,240 --> 00:27:06,040
Speaker 9: and it presented an unwelcome distraction. But the bottom line

500
00:27:06,119 --> 00:27:09,320
Speaker 9: is for this firm is when it looks at its numbers,

501
00:27:09,760 --> 00:27:13,399
Speaker 9: it does realize people weren't like hearing this, but at

502
00:27:13,440 --> 00:27:15,960
Speaker 9: management levels that's how they talk about it. It realized

503
00:27:15,960 --> 00:27:19,040
Speaker 9: that there was some bloat and the message that's percolating

504
00:27:19,040 --> 00:27:21,679
Speaker 9: through the firm right now is it's time to get leaner.

505
00:27:22,520 --> 00:27:24,800
Speaker 2: I was interviewing with McKinsey when I was in business school,

506
00:27:25,040 --> 00:27:26,960
Speaker 2: and like the second round, they asked me to get

507
00:27:27,040 --> 00:27:29,199
Speaker 2: up in on a whiteboard and sketch out kind of

508
00:27:29,240 --> 00:27:32,399
Speaker 2: like a business flow model. I just turned to them

509
00:27:32,440 --> 00:27:34,320
Speaker 2: and said thank you, but no thank you and walked

510
00:27:34,359 --> 00:27:36,800
Speaker 2: out the door. Anytime you bring a whiteboard, I'm out

511
00:27:36,800 --> 00:27:40,320
Speaker 2: of there. I can't think like it. So when trade

512
00:27:40,359 --> 00:27:43,720
Speaker 2: it stocks for a living? After that, shre Why has

513
00:27:43,840 --> 00:27:47,320
Speaker 2: revenue been flat? Here? Is there some concern that maybe

514
00:27:47,359 --> 00:27:52,200
Speaker 2: all this AI spending is taken away from other budgets

515
00:27:52,240 --> 00:27:54,320
Speaker 2: where maybe I don't need the consulting or.

516
00:27:54,680 --> 00:27:58,359
Speaker 9: That's certainly the concern on the forward perhaps, but just

517
00:27:58,400 --> 00:28:01,520
Speaker 9: in the last few years, the the reality of the industry,

518
00:28:01,520 --> 00:28:03,439
Speaker 9: and McKinsey in some ways is the flag bearer for

519
00:28:03,480 --> 00:28:07,080
Speaker 9: the industry. But there are perhaps other major consulting firms

520
00:28:07,119 --> 00:28:08,919
Speaker 9: that are struggling even more. And the fact is that

521
00:28:09,000 --> 00:28:13,080
Speaker 9: the demand for traditional consulting services may not be as

522
00:28:13,160 --> 00:28:16,160
Speaker 9: high as it used to be. Companies and clients are

523
00:28:16,200 --> 00:28:20,480
Speaker 9: getting cost conscious. When your clients are not able to

524
00:28:20,560 --> 00:28:24,479
Speaker 9: post great revenue growth, the only other level that they

525
00:28:24,520 --> 00:28:28,320
Speaker 9: can pull is expenses, and consulting fees are the first

526
00:28:28,320 --> 00:28:29,280
Speaker 9: ones thrown out.

527
00:28:29,119 --> 00:28:30,960
Speaker 2: The window, right Advertising is the first one.

528
00:28:30,960 --> 00:28:35,520
Speaker 3: I think, advertising, then consulting perhaps, But is mckensey's solutions

529
00:28:35,560 --> 00:28:37,280
Speaker 3: so out of the box. I mean, at this point

530
00:28:37,480 --> 00:28:40,800
Speaker 3: what McKinsey recommends is kind of dogma in corporate boardrooms.

531
00:28:40,800 --> 00:28:42,680
Speaker 3: You don't need to hire McKenzie to tell you how

532
00:28:42,680 --> 00:28:43,680
Speaker 3: to do some of these things.

533
00:28:44,000 --> 00:28:46,640
Speaker 9: Look, and I think the way you're framing it is

534
00:28:46,680 --> 00:28:49,560
Speaker 9: just a little bit more of a polite way of

535
00:28:49,880 --> 00:28:51,720
Speaker 9: some of the memes that you see out there right,

536
00:28:51,760 --> 00:28:55,000
Speaker 9: which is this idea that all that consulting firms do

537
00:28:55,280 --> 00:29:00,360
Speaker 9: is prescribe, grow revenue and cut costs. You know, in

538
00:29:00,360 --> 00:29:02,760
Speaker 9: the moment, it might be funny, but to some extent

539
00:29:02,920 --> 00:29:07,120
Speaker 9: it is an oversimplification of what they do because if

540
00:29:07,160 --> 00:29:10,280
Speaker 9: you look at the list of clients that they've wrapped up.

541
00:29:10,400 --> 00:29:12,720
Speaker 9: We talked about them starting out in nineteen twenty six

542
00:29:13,480 --> 00:29:18,720
Speaker 9: university professor who advised a local meatpacker, Armors and company.

543
00:29:19,040 --> 00:29:21,920
Speaker 9: From that, what they've grown up to they are the

544
00:29:22,080 --> 00:29:25,200
Speaker 9: go to advisor to blue chip companies from Coca Cola

545
00:29:25,280 --> 00:29:27,960
Speaker 9: and Goldman Sacks to everyone else, and also countries that

546
00:29:28,040 --> 00:29:30,000
Speaker 9: span the globe, and a lot of these people are

547
00:29:30,040 --> 00:29:32,560
Speaker 9: repeat clients. So you have to assume that it's not

548
00:29:32,760 --> 00:29:36,240
Speaker 9: as simple as wrote advice that they're doling out, because

549
00:29:36,480 --> 00:29:39,040
Speaker 9: for these big companies to turn to McKinzie again and

550
00:29:39,080 --> 00:29:42,120
Speaker 9: again tells you that they see value in most of

551
00:29:42,200 --> 00:29:45,240
Speaker 9: what they do. There might be some extreme cases on

552
00:29:45,280 --> 00:29:48,000
Speaker 9: either side. One it might be some undesirable work and

553
00:29:48,040 --> 00:29:51,120
Speaker 9: two it might just be obvious advice. But for the

554
00:29:51,160 --> 00:29:54,000
Speaker 9: most part, they're clearly doing something that companies value and

555
00:29:54,080 --> 00:29:55,160
Speaker 9: country's value.

556
00:29:55,360 --> 00:29:58,560
Speaker 3: Speaking of countries, you mentioned China and Saudi Arabia, China

557
00:29:59,040 --> 00:30:03,480
Speaker 3: wants its company is to continue to bring in consults,

558
00:30:03,480 --> 00:30:05,600
Speaker 3: but they just want them to be homegrown.

559
00:30:05,200 --> 00:30:07,640
Speaker 9: Consultants, right and like that seems to be the push

560
00:30:07,640 --> 00:30:10,200
Speaker 9: in China, which is a good job relying on all

561
00:30:10,280 --> 00:30:12,520
Speaker 9: of these Western firms to figure out how you need

562
00:30:12,560 --> 00:30:15,400
Speaker 9: to modernize and be ready to compete on a global scale,

563
00:30:15,520 --> 00:30:17,640
Speaker 9: but they are also encouraging them now to turn to

564
00:30:17,920 --> 00:30:21,280
Speaker 9: homegrown consulting firms. Saudi Arabia is a completely different channel.

565
00:30:21,320 --> 00:30:24,440
Speaker 9: We have a person at McKenzie. You estimated that in

566
00:30:24,480 --> 00:30:26,760
Speaker 9: the prior decades are twenty fourteen to twenty twenty for

567
00:30:26,920 --> 00:30:30,720
Speaker 9: McKinsey earned at least five hundred million dollars a year

568
00:30:30,720 --> 00:30:33,800
Speaker 9: from the kingdom, which is either with companies affiliated with

569
00:30:33,880 --> 00:30:37,080
Speaker 9: Saudi Arabia or the government itself. But the challenge in

570
00:30:37,120 --> 00:30:39,880
Speaker 9: Saudi Arabia is also obviously you've seen some of the

571
00:30:39,920 --> 00:30:43,400
Speaker 9: recent headlines where they're pulling back on consulting expenses. Some

572
00:30:43,480 --> 00:30:45,719
Speaker 9: of these pie in the sky projects are not working

573
00:30:45,760 --> 00:30:48,680
Speaker 9: out as they had hoped for, and again consulting fees

574
00:30:48,680 --> 00:30:51,440
Speaker 9: are going away. And Saudi Arabia had become one of

575
00:30:51,520 --> 00:30:55,800
Speaker 9: mckinzie's most important clients globally, so that is obviously also

576
00:30:56,200 --> 00:30:59,360
Speaker 9: a place where they don't necessarily see a lot of

577
00:30:59,480 --> 00:30:59,920
Speaker 9: room for.

578
00:31:01,040 --> 00:31:04,680
Speaker 2: Our Thanks to shred Narajen, Bloomberg News Chief Wall Street correspondent.

579
00:31:05,000 --> 00:31:07,400
Speaker 3: This week we looked at another Bloomberg Big Take story

580
00:31:07,400 --> 00:31:10,680
Speaker 3: called a Shadowy Global Network helped Trump make millions and

581
00:31:10,760 --> 00:31:11,400
Speaker 3: meme coins.

582
00:31:11,560 --> 00:31:14,120
Speaker 2: You can find out on Bloomberg dot Com and The Terminal.

583
00:31:14,240 --> 00:31:16,440
Speaker 2: The story looks at how Donald and Melania Trump have

584
00:31:16,520 --> 00:31:18,640
Speaker 2: made millions from meme cooin hip.

585
00:31:18,880 --> 00:31:20,320
Speaker 3: For more on this, we're joined by one of the

586
00:31:20,320 --> 00:31:23,320
Speaker 3: stories authors, Zeke Fox, Bloomberg investigative reporter.

587
00:31:23,680 --> 00:31:26,000
Speaker 2: We first asked Zeke to give us more context on

588
00:31:26,040 --> 00:31:26,560
Speaker 2: this story.

589
00:31:27,200 --> 00:31:29,280
Speaker 10: During his first term, just a couple of years ago,

590
00:31:29,360 --> 00:31:34,720
Speaker 10: Trump was calling crypto a scam. But as he prepared

591
00:31:34,760 --> 00:31:37,720
Speaker 10: to take office this time, he and his family started

592
00:31:39,520 --> 00:31:44,080
Speaker 10: two big crypto ventures. And for this story, I went

593
00:31:44,320 --> 00:31:48,080
Speaker 10: deep on kind of the silliest one, which is the

594
00:31:48,160 --> 00:31:50,280
Speaker 10: Trump and Millennia meme coins.

595
00:31:50,400 --> 00:31:51,280
Speaker 2: I forgot about that one.

596
00:31:51,520 --> 00:31:51,680
Speaker 5: Yeah.

597
00:31:51,720 --> 00:31:54,640
Speaker 10: So this was on the eve of inauguration the president

598
00:31:54,720 --> 00:31:56,880
Speaker 10: and then his wife both announced they were creating new

599
00:31:56,880 --> 00:32:01,600
Speaker 10: cryptocurrencies that didn't do anything at all. And these are

600
00:32:01,680 --> 00:32:05,680
Speaker 10: like transparently useless. It's kind of like a gambling game.

601
00:32:06,680 --> 00:32:08,800
Speaker 10: And at the time this was really hot in crypto,

602
00:32:09,280 --> 00:32:12,520
Speaker 10: so many people dived in that on paper for just

603
00:32:12,560 --> 00:32:16,560
Speaker 10: a second, the Trump meme coin. The Trump family had

604
00:32:16,960 --> 00:32:20,080
Speaker 10: fifty billion dollars of holdings of this meme coin. But

605
00:32:21,520 --> 00:32:23,920
Speaker 10: this is a crypto world where things can go poof overnight.

606
00:32:25,080 --> 00:32:29,160
Speaker 10: The best estimates we've found from chainalysis and bubble maps

607
00:32:29,160 --> 00:32:32,040
Speaker 10: to crypto research firms were that the Trump family made

608
00:32:32,040 --> 00:32:35,520
Speaker 10: about three hundred and fifty million dollars of real profit

609
00:32:35,640 --> 00:32:37,280
Speaker 10: on these meme coins.

610
00:32:38,160 --> 00:32:41,959
Speaker 3: Wow, help them market these coins? Who helped them, you know,

611
00:32:42,760 --> 00:32:46,800
Speaker 3: presumably profit off of that. That's the gist of your story.

612
00:32:46,920 --> 00:32:49,680
Speaker 3: And was it a difficult question to answer?

613
00:32:49,880 --> 00:32:51,680
Speaker 10: Yeah, Like, on the one hand, the whole thing sort

614
00:32:51,720 --> 00:32:54,560
Speaker 10: of happened in the open, and it felt like there

615
00:32:54,680 --> 00:32:57,200
Speaker 10: was we sort of knew what happened. On the other hand,

616
00:32:57,240 --> 00:32:59,320
Speaker 10: as I tried to dive in and figure out who

617
00:32:59,440 --> 00:33:03,120
Speaker 10: was behind this. It was really tough. You'd think that

618
00:33:03,120 --> 00:33:06,040
Speaker 10: people might be proud to say that they'd helped the

619
00:33:06,080 --> 00:33:10,000
Speaker 10: president with an important business venture, but really nobody was talking.

620
00:33:10,440 --> 00:33:12,960
Speaker 10: The trail took us in a very convoluted way, but

621
00:33:13,000 --> 00:33:17,720
Speaker 10: it ended up with a guy who uses an icon

622
00:33:17,760 --> 00:33:21,480
Speaker 10: of a cartoon cat wearing an astronaut suit on Twitter.

623
00:33:21,840 --> 00:33:26,600
Speaker 10: He goes only by mew and he runs a crypto exchange.

624
00:33:26,840 --> 00:33:28,880
Speaker 10: Or he was the co founder of a crypto exchange

625
00:33:28,920 --> 00:33:33,080
Speaker 10: called Metiora that was actually home to a ton of

626
00:33:33,120 --> 00:33:36,920
Speaker 10: these giant mean coin launches, and all of them were

627
00:33:37,320 --> 00:33:39,600
Speaker 10: Most of them seemed to follow this pattern where they'd

628
00:33:40,080 --> 00:33:42,000
Speaker 10: go up a lot on hype when they got announced

629
00:33:42,000 --> 00:33:46,560
Speaker 10: and then soon crash, and we were trying to figure out,

630
00:33:46,680 --> 00:33:50,479
Speaker 10: you know, who knew what When the trail took us

631
00:33:50,480 --> 00:33:54,200
Speaker 10: to Istanbul to Singapore, you got to read the story

632
00:33:54,240 --> 00:33:56,320
Speaker 10: to see how close we got.

633
00:33:56,600 --> 00:34:01,560
Speaker 2: So what was Is the meme coins still in existence?

634
00:34:02,160 --> 00:34:05,040
Speaker 10: Yeah, these things like never really die, but there's uh,

635
00:34:05,120 --> 00:34:08,000
Speaker 10: there's no excitement around it anymore. The price is down

636
00:34:08,040 --> 00:34:10,720
Speaker 10: about ninety percent from its peak.

637
00:34:11,400 --> 00:34:12,320
Speaker 2: Do I find the price?

638
00:34:13,120 --> 00:34:16,320
Speaker 10: You know, their coin market is a pretty big uh

639
00:34:16,960 --> 00:34:21,120
Speaker 10: uh crypto tracking site. But one funny thing we found

640
00:34:21,120 --> 00:34:24,160
Speaker 10: in reporting this was talking to meme coin traders. A

641
00:34:24,200 --> 00:34:27,800
Speaker 10: lot of them said that Trump actually killed this boom.

642
00:34:28,239 --> 00:34:29,879
Speaker 10: Like for a while, we were all having a lot

643
00:34:29,880 --> 00:34:32,719
Speaker 10: of fun trading these meme coins, but the Trump's made

644
00:34:32,760 --> 00:34:36,080
Speaker 10: so much money off theirs that the gamblers in the

645
00:34:36,080 --> 00:34:40,320
Speaker 10: casino were like, you know what, we're we've emptied our pockets,

646
00:34:40,320 --> 00:34:42,560
Speaker 10: we got We're done with this. We need bring on

647
00:34:42,600 --> 00:34:44,759
Speaker 10: prediction markets. We need something different to gamble on.

648
00:34:45,040 --> 00:34:47,960
Speaker 3: So are meme coins they peaked already, they've died or

649
00:34:48,040 --> 00:34:50,839
Speaker 3: I mean they're still there, but no one's making money

650
00:34:50,840 --> 00:34:52,000
Speaker 3: off of them the way they used to.

651
00:34:52,280 --> 00:34:54,399
Speaker 10: Yeah, it's a little bit like if you remember the

652
00:34:54,640 --> 00:35:00,359
Speaker 10: NFT bubble, the like uh digital crypto art. For minute,

653
00:35:00,400 --> 00:35:03,000
Speaker 10: it's hot and people are making good money, they're telling

654
00:35:03,040 --> 00:35:09,040
Speaker 10: their friends, and then at some point people just they

655
00:35:09,080 --> 00:35:11,120
Speaker 10: crashes and people move on. So a lot of the

656
00:35:11,160 --> 00:35:14,680
Speaker 10: same people who were in on NFTs got in on

657
00:35:14,880 --> 00:35:18,800
Speaker 10: meme coins and while this was while this was running,

658
00:35:18,840 --> 00:35:21,560
Speaker 10: it was a great business. We talked to one twenty

659
00:35:21,600 --> 00:35:24,799
Speaker 10: two year old who started one of the biggest meme

660
00:35:24,880 --> 00:35:28,200
Speaker 10: coin creation and trading apps, his company, which just had

661
00:35:28,200 --> 00:35:32,560
Speaker 10: a few employees generated a billion dollars from the during

662
00:35:32,560 --> 00:35:35,600
Speaker 10: this meme coin bubble. But now a lot of the

663
00:35:35,680 --> 00:35:38,440
Speaker 10: people who are excited about meme coins have moved on

664
00:35:38,600 --> 00:35:42,719
Speaker 10: to prediction markets, where the Trump family has its own

665
00:35:43,160 --> 00:35:44,560
Speaker 10: interests as well.

666
00:35:45,000 --> 00:35:47,960
Speaker 3: Yeah, Don Junior, right, has some pretty big stakes or

667
00:35:48,000 --> 00:35:49,960
Speaker 3: it has a pretty key role in some of the companies.

668
00:35:50,160 --> 00:35:54,920
Speaker 10: Yeah, he is an advisor to both Calshie and poly Market,

669
00:35:55,160 --> 00:35:59,520
Speaker 10: the two big prediction markets. And then the Trump families

670
00:36:00,080 --> 00:36:05,680
Speaker 10: social media platform truth Social has announced plans to create

671
00:36:05,719 --> 00:36:08,840
Speaker 10: its own prediction market. But it's kind of a pattern

672
00:36:08,840 --> 00:36:12,120
Speaker 10: where the Trump family has these business interests in this

673
00:36:12,960 --> 00:36:15,959
Speaker 10: kind of gray area market, and then the Trump administration

674
00:36:16,560 --> 00:36:20,280
Speaker 10: is creating rules that are legalizing these markets and helping

675
00:36:20,360 --> 00:36:21,640
Speaker 10: make them grow.

676
00:36:22,120 --> 00:36:25,240
Speaker 2: As President Trump or his family or his administration comment

677
00:36:25,560 --> 00:36:28,919
Speaker 2: on your story or about the mean coin part of it, So.

678
00:36:30,320 --> 00:36:33,880
Speaker 10: The Press secretary got back to us, not really getting

679
00:36:33,880 --> 00:36:36,960
Speaker 10: into the specifics, but just saying, hey, the Trump family

680
00:36:37,000 --> 00:36:40,919
Speaker 10: would never engage in conflicts of interest, but not really

681
00:36:40,960 --> 00:36:45,520
Speaker 10: addressing how they manage having interests in both the business

682
00:36:45,520 --> 00:36:49,320
Speaker 10: side and being in charge of drafting the rules.

683
00:36:49,880 --> 00:36:51,520
Speaker 2: And I guess no one cares anymore.

684
00:36:53,120 --> 00:36:57,680
Speaker 10: I'd like to think that people still care. But you know,

685
00:36:57,719 --> 00:37:00,880
Speaker 10: when it came normally you have like let's say this

686
00:37:01,000 --> 00:37:03,480
Speaker 10: was the stock market and somebody created like a penny

687
00:37:03,520 --> 00:37:06,399
Speaker 10: stock that went up, you know, one thousand xs in trash. Yeah,

688
00:37:06,560 --> 00:37:09,560
Speaker 10: somebody would be diving in. They'd be digging through people's messages.

689
00:37:09,600 --> 00:37:12,000
Speaker 10: They've been trying to figure out what happened meme coins.

690
00:37:12,360 --> 00:37:14,759
Speaker 10: A few weeks after Trump was elected, the SEC has

691
00:37:14,760 --> 00:37:19,360
Speaker 10: put out a statement that basically said not our business, okay,

692
00:37:19,440 --> 00:37:22,279
Speaker 10: And nobody has stepped up to look into these yet

693
00:37:22,680 --> 00:37:23,240
Speaker 10: our Thanks.

694
00:37:23,080 --> 00:37:25,080
Speaker 3: To Zeke Fox, Bloomberg Investigative Reporter.

695
00:37:25,320 --> 00:37:28,000
Speaker 2: That's this week's edition of Bloomberg Intelligence on Bloomberg Radio,

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00:37:28,080 --> 00:37:30,640
Speaker 2: providing in research and data on two thousand companies and

697
00:37:30,680 --> 00:37:31,920
Speaker 2: one hundred and thirty industries.

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00:37:32,000 --> 00:37:34,600
Speaker 3: And remember you can access Bloomberg Intelligence via b I

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00:37:34,719 --> 00:37:36,840
Speaker 3: go on the terminal. I'm Scarlett Foo and.

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00:37:36,840 --> 00:37:39,239
Speaker 2: I'm Paul Sweeney. Stay with us. Today's top stories and

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00:37:39,280 --> 00:37:42,319
Speaker 2: global business headlines are coming up right now