WEBVTT - BI Weekend: 50 Companies to Watch, Ford Charges, McKinsey Cuts 0:00:00.240 --> 0:00:11.480 Bloomberg Audio, Studios, podcasts, radio news. This is Bloomberg Intelligence 0:00:11.560 --> 0:00:13.640 with Scarletfoo and Paul Sweeney. 0:00:13.720 --> 0:00:15.840 How do you think the FED is looking at tariffs? 0:00:15.960 --> 0:00:17.160 The uncertainty of terriffs. 0:00:17.280 --> 0:00:19.720 Let's take a look at the sectors and how they performed. 0:00:19.760 --> 0:00:22.440 A lot of investors getting whipsaled every day by news events, 0:00:22.520 --> 0:00:24.520 breaking market headlines. 0:00:24.000 --> 0:00:26.239 And corporate news from across the globe. 0:00:26.280 --> 0:00:28.800 Could we see a market disruption of market event? 0:00:28.960 --> 0:00:31.000 So people just too exuberant out there? 0:00:31.120 --> 0:00:33.640 You see some so called low quality stocks driving this 0:00:33.760 --> 0:00:34.520 short term rally. 0:00:34.560 --> 0:00:39.360 Bloomberg Intelligence with Scarletfoo and Paul Sweeney on Bloomberg Radio, 0:00:39.520 --> 0:00:41.440 YouTube and Bloomberg Originals. 0:00:42.000 --> 0:00:44.239 On today's Bloomberg Intelligence Show, we dig inside the big 0:00:44.280 --> 0:00:46.600 business story is impacting Wall Street and the global markets. 0:00:46.800 --> 0:00:49.040 Each and every week we provide in depth research and 0:00:49.120 --> 0:00:50.960 data on some of the two thousand companies and one 0:00:51.040 --> 0:00:53.640 hundred and thirty industries are analysts covered worldwide. 0:00:53.720 --> 0:00:55.639 Today, we'll look at how the automaker Ford is being 0:00:55.680 --> 0:00:57.520 impacted by its struggling ev business. 0:00:57.600 --> 0:00:59.480 Plus we'll dive into why the food and beverage giant 0:00:59.520 --> 0:01:01.160 Craft High is replacing its CEO. 0:01:01.480 --> 0:01:04.600 But first we begin with research. Bloomberg Intelligence recently put 0:01:04.600 --> 0:01:06.720 out on companies to watch for in the new year. 0:01:06.880 --> 0:01:09.520 It's titled fifty Companies to Watch in twenty twenty six. 0:01:09.640 --> 0:01:12.119 We were joined by Tim Craig head, Bloomberg Intelligence Global 0:01:12.200 --> 0:01:13.240 Chief Content Officer. 0:01:13.480 --> 0:01:16.039 We first asked Tim to break down this research put 0:01:16.040 --> 0:01:17.119 a little bit of context. 0:01:17.200 --> 0:01:20.800 This group of fifty are all part of what we 0:01:20.840 --> 0:01:23.440 call focus ideas. It's a broader group of about one hundred. 0:01:24.000 --> 0:01:31.120 These are all high conviction ideas. They have high confiction 0:01:31.240 --> 0:01:35.160 ideas where we see something very different from what we 0:01:35.480 --> 0:01:40.040 think is embedded in market expectations and there's catalysts ahead 0:01:40.080 --> 0:01:43.840 to change the market mindset. Those catalysts coming up in 0:01:43.840 --> 0:01:47.319 twenty twenty six, and that's where these fifty come into 0:01:48.040 --> 0:01:54.000 and across the group this year. The biggest bucket are two. 0:01:54.560 --> 0:01:59.320 One is just simply new product innovation that is being 0:01:59.480 --> 0:02:03.360 rapped out into twenty twenty six. The other no surprise 0:02:03.760 --> 0:02:07.320 AI related, and some of it's the tech companies. Some 0:02:07.400 --> 0:02:10.360 of it are companies that are feeding into the process 0:02:10.400 --> 0:02:13.200 and happy to get into some of those or other 0:02:13.280 --> 0:02:17.280 topics as well. Suches, cyclical pressures and competitive concerns. On 0:02:17.320 --> 0:02:20.000 the negative side, and there's a couple of other things 0:02:20.040 --> 0:02:20.440 as well. 0:02:21.000 --> 0:02:22.840 So on the new products, give us an example of 0:02:22.880 --> 0:02:25.280 a new product that you guys think might really be 0:02:25.280 --> 0:02:26.600 important for a company in a stock. 0:02:27.720 --> 0:02:28.080 Yeah. 0:02:28.160 --> 0:02:30.720 So, you know, it's interesting because some of these can 0:02:30.760 --> 0:02:34.520 be quite technical, Paul. You know, you think a Nilan 0:02:35.160 --> 0:02:39.840 Pharma or Bridge Bio are two biotech companies that have 0:02:40.000 --> 0:02:45.880 new products coming. One of them relates to heart issues, 0:02:45.880 --> 0:02:50.040 another relates to dwarfism. But it's new products that will 0:02:50.080 --> 0:02:53.800 expand to market and drive we think, significantly better revenue 0:02:53.800 --> 0:02:57.200 and earnings. On the other hand, there's some good old 0:02:57.200 --> 0:03:00.840 fashioned names that you know and you love. Canada Goose 0:03:01.680 --> 0:03:05.600 has new product flow coming through that we think reinvigorates 0:03:05.639 --> 0:03:09.919 the top line. Brinker, I think Chili's the restaurant are 0:03:09.919 --> 0:03:13.079 going through a whole new upgrade of their menu and 0:03:14.120 --> 0:03:19.639 up selling clients with good stuff like Margarita's with Patron 0:03:20.360 --> 0:03:26.720 and so the new product idea can expand across a 0:03:26.800 --> 0:03:29.680 whole number of different segments. It's quite interesting. 0:03:29.960 --> 0:03:30.120 Yeah. 0:03:30.160 --> 0:03:32.240 I'm looking at Decker's as one of the new products 0:03:32.240 --> 0:03:34.920 companies you highlight, and their ug is introducing styles to 0:03:34.920 --> 0:03:38.200 stay relevant beyond the winter months. Let's talk a little 0:03:38.240 --> 0:03:40.400 bit about AI because that's going to continue to be 0:03:40.440 --> 0:03:43.839 a big theme, even as investors are starting to make 0:03:43.880 --> 0:03:47.320 distinctions between companies that are in it for good and 0:03:47.360 --> 0:03:50.240 those that maybe kind of fat ish. What are some 0:03:50.360 --> 0:03:53.320 new names that surprised you in terms of their making 0:03:53.320 --> 0:03:53.680 the list. 0:03:54.520 --> 0:03:57.200 Yeah, it's it's interesting. I'll give you the new names 0:03:57.240 --> 0:03:59.440 and the ones that aren't on here, and i'll do 0:03:59.480 --> 0:04:02.600 the latter first. There's none of the big llms this 0:04:02.760 --> 0:04:05.840 year that are on our list, or in Nvidia that's 0:04:05.960 --> 0:04:09.080 not on a list. What you find are other either 0:04:09.360 --> 0:04:14.000 enabling technologies, so I think LAMB Research. It's a semicap 0:04:14.000 --> 0:04:17.080 equipment company that makes the gear that you make the 0:04:17.120 --> 0:04:22.719 semiconductors with. That's quite well positioned. TSMC, the world's largest 0:04:22.760 --> 0:04:27.119 foundry that's making the AI accelerator chips that feed into 0:04:27.120 --> 0:04:32.920 the llms, or even back up in the channel of 0:04:33.040 --> 0:04:37.080 how do you build out AI constellation, which is the 0:04:37.600 --> 0:04:42.159 US's largest nuclear utility. That's quite important if you're going 0:04:42.200 --> 0:04:45.719 to generate the electricity to drive the data centers to 0:04:45.839 --> 0:04:52.680 drive AI acs. Interestingly, European construction company they own Turner, 0:04:52.800 --> 0:04:56.160 which is the US's largest construction company. They've got the 0:04:56.200 --> 0:05:00.560 biggest order book for building out data centers. There's a 0:05:00.680 --> 0:05:03.320 host of different kinds of ways you can think about 0:05:03.960 --> 0:05:09.080 leveraging AI beyond just simply the big lllms like Google 0:05:09.480 --> 0:05:12.719 or Open AI or things along those lines that you 0:05:12.760 --> 0:05:13.240 hear about. 0:05:13.480 --> 0:05:15.800 Tim On this list, you and the bi analysts also 0:05:16.160 --> 0:05:20.359 highlight stocks that might be have pressure on the downside, 0:05:20.360 --> 0:05:25.680 whether it's cyclical pressure, competition, MNA, project delay. Give us 0:05:25.920 --> 0:05:28.560 a name or two that might have some downside risk 0:05:28.680 --> 0:05:29.080 this year. 0:05:30.200 --> 0:05:35.760 Yeah, it's interesting on that think about what's going on 0:05:35.920 --> 0:05:40.960 from the standpoint of you're just talking about airlines from 0:05:41.000 --> 0:05:44.839 a European vantage point, we've got wage pressures that are 0:05:44.880 --> 0:05:50.320 a rising and for Air France KLM, a big chunk 0:05:50.360 --> 0:05:53.640 of their business is the Transatlantic market, which is getting 0:05:53.680 --> 0:05:58.240 more and more competitive. And with both of those factors, 0:05:58.720 --> 0:06:02.760 we think that there's risks to estimates. China Railway Group 0:06:02.839 --> 0:06:06.560 it's a big state owned enterprise in China. It's one 0:06:06.600 --> 0:06:10.640 of the big four engineering companies. And to the degree 0:06:10.680 --> 0:06:17.480 that China is shifting towards more technology and innovation driven 0:06:17.520 --> 0:06:21.360 investment and less away from bridges and roads and railroads 0:06:21.360 --> 0:06:24.600 and things along those lines. China Railway Group we think 0:06:24.920 --> 0:06:29.800 has downside risk. A couple little companies that are unusual 0:06:29.880 --> 0:06:35.200 but intriguing. Dino Polska, which you've never heard of, I'm sure, 0:06:35.640 --> 0:06:39.799 is a Polish supermarket company, but they've got two big 0:06:39.839 --> 0:06:43.880 European competitors that are coming into the Polish market. Again, 0:06:44.080 --> 0:06:46.760 downside risk to earnings. And the same thing can be 0:06:46.800 --> 0:06:50.000 said about Joined Labs. We talked about a couple of 0:06:50.040 --> 0:06:53.760 positive healthcare companies. This is one of the contract research 0:06:53.920 --> 0:07:01.240 companies that helps a pharmaceutical do their drug development. China 0:07:01.520 --> 0:07:05.680 is now looking to go broad and global with approvals 0:07:05.800 --> 0:07:09.760 on new pharmaceutical products. Join, who focuses in all in 0:07:09.840 --> 0:07:12.760 China is losing some of their business, So there's lots 0:07:12.800 --> 0:07:14.720 of ways we can think about this our. 0:07:14.600 --> 0:07:18.040 Thanks to Tim Kraik, head Bloomberg Intelligence Chief Content Officer, we. 0:07:18.120 --> 0:07:21.120 Recently focused on a Bloomberg Big Takes story entitled Saudi's 0:07:21.120 --> 0:07:25.000 Sisters wieled fifty billion dollar fortune as global powerbrokers. You 0:07:25.040 --> 0:07:27.280 can find out on Bloomberg dot com and the Terminal. 0:07:27.400 --> 0:07:29.840 The story looks at the Olion Group, a Saudi empire 0:07:29.920 --> 0:07:32.560 led by sisters that has grown in influence. It has 0:07:32.560 --> 0:07:35.239 a nearly thirteen billion dollars stock portfolio in the US, 0:07:35.520 --> 0:07:37.560 as well as steaks and companies like black Rock and 0:07:37.640 --> 0:07:38.559 JP Morgan Chase. 0:07:38.760 --> 0:07:39.080 For more. 0:07:39.160 --> 0:07:42.560 Scarlett and I were joined by Devin Pendleton, Bloomberg Wealth Reporter. 0:07:42.800 --> 0:07:45.600 We first asked Devin to explain what the allion is 0:07:45.800 --> 0:07:47.440 and who the sisters are behind it. 0:07:47.880 --> 0:07:48.520 So it is. 0:07:48.640 --> 0:07:52.080 Lubna and her sister Husam Allion. They're both in their 0:07:52.840 --> 0:07:54.960 early seventies and they have been at the helm of 0:07:55.000 --> 0:07:59.320 this family enterprise for decades, for more than forty years. 0:07:59.560 --> 0:07:59.880 Wow. 0:08:00.600 --> 0:08:03.200 And they have fairly low profiles too. That's the thing 0:08:03.280 --> 0:08:06.360 that is striking. They have these low profiles, but they 0:08:06.440 --> 0:08:10.600 are known as steally negotiators. Tell us what they've done. 0:08:10.880 --> 0:08:14.160 Yeah, they've done an incredible job building this family business, 0:08:14.160 --> 0:08:16.360 which was started by their father, who was a really 0:08:16.960 --> 0:08:20.200 unbelievable character. He basically worked his way up from nothing. 0:08:20.280 --> 0:08:22.120 You know, he's not a royal, was not connected to 0:08:22.160 --> 0:08:24.320 the royals at a young age, but he built an 0:08:24.320 --> 0:08:29.720 oil servicing company which he grew striking deals with all 0:08:29.760 --> 0:08:32.679 sorts of consumer brand companies in the US, bringing them 0:08:32.720 --> 0:08:37.520 to Saudi Arabia, everything from Coca Cola to cheese its 0:08:37.600 --> 0:08:41.840 to Oreos, and he came over to the US in 0:08:41.920 --> 0:08:45.400 the early nineteen sixties, was very inspired by what he 0:08:45.440 --> 0:08:48.319 saw and bought some bank stocks, and basically his daughters 0:08:48.480 --> 0:08:50.880 took over that business which was sprawling. I mean it 0:08:50.920 --> 0:08:55.200 was in all sorts of sectors real estate, oil, filled services, 0:08:56.000 --> 0:09:00.959 consumer goods, and hung on to those equity stakes, banking stakes. 0:09:01.400 --> 0:09:04.520 So now they have this incredible portfolio of investments in 0:09:04.559 --> 0:09:06.720 the US on Wall Street as well as this you know, 0:09:06.800 --> 0:09:11.040 booming multi sector business in Saudi Arabia. 0:09:12.040 --> 0:09:16.800 So but people in power know these two sisters, they 0:09:16.800 --> 0:09:19.560 were at the White House recently tell us about that. 0:09:19.720 --> 0:09:22.240 How do they subtlely wield their influence? 0:09:22.840 --> 0:09:25.959 They are not noisy people. I think it's one thing 0:09:26.040 --> 0:09:28.480 to do business and thrive in Saudi Arabia as you 0:09:28.559 --> 0:09:32.800 have to really sort of be be quiet, be force full, 0:09:33.000 --> 0:09:36.160 sort of no be a little bit deferential to you know, 0:09:36.240 --> 0:09:38.720 who's really in charge, which would be the government and 0:09:38.760 --> 0:09:42.880 the king and the Crown Prince. But they have had 0:09:43.080 --> 0:09:45.280 long term ties with the US. I mean, you really 0:09:45.280 --> 0:09:47.320 saw that at the White House dinner. You mentioned Paul, 0:09:47.440 --> 0:09:49.600 she was sitting right next to Elon Musk. But you know, 0:09:49.720 --> 0:09:51.760 arguably one of the most important people in the room 0:09:51.840 --> 0:09:55.000 because she has these connections on Wall Street through their 0:09:55.040 --> 0:09:59.200 long term equity investments. It's really important right now, especially 0:09:59.240 --> 0:10:01.800 because the Kingdom is trying to bring in a lot 0:10:01.840 --> 0:10:05.559 of inbound investment to transform their economy past oil. It's 0:10:05.600 --> 0:10:07.720 a big deal for them to be bringing in money. 0:10:07.720 --> 0:10:10.480 And these Alliance Sisters have had these connections for a 0:10:10.520 --> 0:10:12.520 long long time, so they're more important than ever. 0:10:13.160 --> 0:10:14.920 So they have the connections with the right people in 0:10:14.960 --> 0:10:17.640 Saudi Arabia. How does their I mean when I think 0:10:17.640 --> 0:10:21.360 about prominent investors in the kingdom, I think about Prince 0:10:21.360 --> 0:10:24.040 Abolid beIN to Lull and how he's been very vocal 0:10:24.080 --> 0:10:28.280 about his positions. He's often seen on media networks. You 0:10:28.360 --> 0:10:31.400 don't hear about these Alliance Sisters at all, and I 0:10:31.480 --> 0:10:35.640 wonder how much of that is, you know, is part 0:10:35.679 --> 0:10:36.920 of their success story. 0:10:36.920 --> 0:10:40.840 Totally, it's so so important. I think they are extremely discreet. 0:10:42.120 --> 0:10:44.679 They are, like I said, like they really know their 0:10:44.760 --> 0:10:47.200 role in the kingdom, like they're important. They step in 0:10:47.280 --> 0:10:49.480 and help when they need to. For example, in Saudi 0:10:49.559 --> 0:10:53.360 Ramco Ipo. Back in twenty nineteen, the kingdom was having 0:10:53.360 --> 0:10:55.600 trouble kind of getting people excited and really getting the 0:10:55.600 --> 0:10:59.640 investors they needed early to get backstop this IPO. They 0:10:59.720 --> 0:11:02.760 ask some influential families and the Alliance were one that 0:11:02.880 --> 0:11:06.680 you know, they really showed up. That matters for the kingdom, 0:11:06.720 --> 0:11:09.520 and it also gives them, you know, license to really 0:11:09.559 --> 0:11:13.040 expand their business as much as they need to into 0:11:13.120 --> 0:11:16.080 being a position of power to help out, but also 0:11:16.320 --> 0:11:17.600 you know, have favors in return. 0:11:18.080 --> 0:11:22.040 And the Bloomberg the Rich Go function lists their wealth 0:11:22.080 --> 0:11:24.600 of the family at approximately fifty billion dollars US. 0:11:24.679 --> 0:11:28.280 Right, Yes, fifty billion dollars US. But I can guarantee 0:11:28.280 --> 0:11:29.960 you that that is a conservative estimate. 0:11:30.120 --> 0:11:32.440 Is that right now? I understand that they while they 0:11:32.480 --> 0:11:34.880 keep a low profile of these sisters, they have good 0:11:34.920 --> 0:11:36.800 relationships with some of the big folks on Wall Street 0:11:36.840 --> 0:11:38.840 and like Larry Fink of black Rock and things like that. 0:11:39.080 --> 0:11:40.520 So that's got to be useful. 0:11:41.080 --> 0:11:45.000 Yeah, absolutely. I mean, just through one portfolio alone, they 0:11:45.040 --> 0:11:49.000 have their big investors in Blackrock, the equity investors. They 0:11:49.000 --> 0:11:50.560 have a one and a half billion dollar steak in 0:11:50.600 --> 0:11:53.959 black Rock. They own an almost billion dollar steak in 0:11:54.040 --> 0:11:56.720 JP Morgan. It's actually where lived No Lion first got 0:11:56.720 --> 0:12:00.800 her start. She was initially working a low level banker 0:12:00.800 --> 0:12:05.679 at JP Morgan right after college. So they're really worldly, 0:12:06.000 --> 0:12:11.200 very well traveled and just tough, tough in this sort 0:12:11.240 --> 0:12:16.280 of very you know, meaningful business sense, like negotiators. They're 0:12:16.400 --> 0:12:17.920 very involved in their investments. 0:12:18.600 --> 0:12:21.600 Our thanks to Devin Pendleton, Bloomberg Wealth Reporter. Coming up, 0:12:21.640 --> 0:12:23.920 we'll move to the biotech sector and why my aloma 0:12:23.960 --> 0:12:25.800 patients are failing to get the treatment they need. 0:12:25.960 --> 0:12:28.840 You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in 0:12:28.840 --> 0:12:31.000 depth research and data on two thousand companies and one 0:12:31.080 --> 0:12:32.160 hundred and thirty industries. 0:12:32.280 --> 0:12:35.320 You can access Bloomberg Intelligence via bi go on the terminal. 0:12:35.400 --> 0:12:36.559 I'm Scarlet Food and. 0:12:36.480 --> 0:12:38.520 I'm Paul Sweeney, and this is Bloomberg. 0:12:41.840 --> 0:12:46.360 This is Bloomberg Intelligence with Scarlet Foo and Paul Sweeney 0:12:46.679 --> 0:12:48.000 on Bloomberg Radio. 0:12:48.800 --> 0:12:51.079 We moved now to loose in the auto sector. 0:12:51.280 --> 0:12:53.839 This week, automaker Ford announced it will take nineteen and 0:12:53.880 --> 0:12:56.600 a half billion dollars in charges tied to an overhaul 0:12:56.640 --> 0:12:59.160 of its EV business. And this comes after years of 0:12:59.240 --> 0:13:01.959 Ford struggling to make its electric vehicle business profitable. 0:13:02.120 --> 0:13:04.760 From what we were joined by Steven Mann Bloomberg Intelligence 0:13:04.760 --> 0:13:06.840 Global Autos and Industrials research analysts. 0:13:07.080 --> 0:13:09.439 We began by asking Steve for his reaction to the 0:13:09.520 --> 0:13:11.400 nineteen and a half billion dollar charge. 0:13:11.640 --> 0:13:14.680 Yeah, it is a very big number. It pretty much 0:13:14.800 --> 0:13:19.880 backed up the truck on these charges. But the important 0:13:19.920 --> 0:13:22.680 thing is it's clearing the deck for next year. 0:13:23.240 --> 0:13:23.440 Right. 0:13:24.120 --> 0:13:29.200 There is a couple of earning's tailwind for Ford and 0:13:29.240 --> 0:13:35.320 actually to their competitors in Detroit as well. So the biggest, 0:13:35.640 --> 0:13:38.600 I think the biggest write down. Two biggest write down 0:13:38.840 --> 0:13:43.320 is writing down the losses on their Mustang Mochy. You 0:13:43.320 --> 0:13:46.160 know they've been losing around twenty five thousand dollars on 0:13:46.200 --> 0:13:50.080 the EBIT line per vehicle, so it's massive. The other 0:13:50.559 --> 0:13:54.720 is the charges really on their joint venture with their 0:13:54.760 --> 0:13:58.160 battery supplier in Korea. So you know they're going to 0:13:58.200 --> 0:14:04.120 repurpose one of those plants for energy storage. So again 0:14:04.200 --> 0:14:07.319 it's really clearing the deck. There's a couple of tailwinds 0:14:07.480 --> 0:14:11.720 for twenty twenty six, which includes you know, Trump's loosening 0:14:12.120 --> 0:14:14.120 the MPG miles per gallon rule. 0:14:14.760 --> 0:14:18.960 Yeah, absolutely, does that reflect Steve. Investors want these auto 0:14:19.000 --> 0:14:22.680 companies to kind of back away or proceed more cautiously 0:14:22.920 --> 0:14:24.400 towards their move towards EV's. 0:14:25.000 --> 0:14:31.160 Yeah, definitely, especially in the US. And look, Ford is 0:14:31.600 --> 0:14:35.200 you know, not just pivoting in the US, but they're 0:14:35.240 --> 0:14:38.080 also pivoting in Europe. You know, they just announced a 0:14:38.160 --> 0:14:42.840 joint venture with Renault to develop EVS over in Europe. 0:14:42.920 --> 0:14:45.440 And you know, Ford doesn't really have a big presence 0:14:45.760 --> 0:14:50.440 in Europe, so they're taking that approach of partnership. GM 0:14:50.600 --> 0:14:53.200 is doing the same thing. Remember they took one point 0:14:53.240 --> 0:14:57.400 six billion dollar charge, much more modest than the nineteen 0:14:57.440 --> 0:15:01.040 billion that Ford is taking. But you know, GM is 0:15:01.080 --> 0:15:04.960 dialing back but keeping one foot on the EV's. I 0:15:04.960 --> 0:15:07.880 think they I believe they still think that they're you know, 0:15:07.960 --> 0:15:11.960 they still can succeed, especially when they introduce the Chevy 0:15:11.960 --> 0:15:13.320 Bolt in the new year. 0:15:13.880 --> 0:15:17.520 So, Steve, you know, we're many years into this transition 0:15:17.600 --> 0:15:20.600 to EV's and you know, I know there are many 0:15:20.880 --> 0:15:24.080 there are European country, Scandinavian countries where it's almost one 0:15:24.120 --> 0:15:27.320 hundred percent of their fleets are are their new car 0:15:27.400 --> 0:15:30.800 sales are EV's. That ain't the case here in the US. 0:15:31.600 --> 0:15:36.000 With some hindsight here, why hasn't why haven't EV's taken 0:15:36.240 --> 0:15:38.120 a better hold here in this US market. 0:15:38.760 --> 0:15:43.480 Yeah, it definitely needs more, you know, regulatory support for 0:15:43.560 --> 0:15:48.960 EV to take grow because you know, EV uh, there's 0:15:49.000 --> 0:15:51.320 a lot of three hurdles right that consumers have to 0:15:51.360 --> 0:15:55.080 get over, which is the price, the range, and the 0:15:55.120 --> 0:16:01.000 convenience right of charging infrastructure. You know, without government support 0:16:01.080 --> 0:16:03.280 to actually build that out, it's going to take some 0:16:03.360 --> 0:16:08.360 time for the electrification transition. I think a lot of 0:16:08.400 --> 0:16:13.200 people in the industry still feels that electrification, battery EV, 0:16:14.280 --> 0:16:18.400 maybe hybrids in between is the way to go in 0:16:18.440 --> 0:16:22.160 the future. But you know, I think there's a huge 0:16:22.160 --> 0:16:27.200 paradigm shift that consumers hair have to get over, and 0:16:27.240 --> 0:16:30.680 it's really challenging to do that without government support. 0:16:30.680 --> 0:16:33.680 Here our thanks to Steve Man Bloomberg Intelligence, Global, Autos 0:16:33.720 --> 0:16:35.160 and Industrials Research Channels. 0:16:35.240 --> 0:16:36.920 We move next to some news in the food and 0:16:36.960 --> 0:16:37.800 beverage industry. 0:16:37.960 --> 0:16:40.440 This week, craft Times announced it would be replacing its 0:16:40.480 --> 0:16:45.520 CEO with former Kelenova CEO Steve Kahaling on January first. 0:16:45.800 --> 0:16:47.960 This comes as the company plans to split into two 0:16:48.000 --> 0:16:52.000 separate publicly traded companies. One will sell condiments and boxed meals, 0:16:52.000 --> 0:16:54.960 while the other will include its slower growing grocery products 0:16:55.120 --> 0:16:56.160 like lunchibles for. 0:16:56.160 --> 0:16:59.120 More, Scarlett and I were joined by Christina Peterson Bloomberg 0:16:59.120 --> 0:17:02.560 Food Industry. We first asked Christina to break down the 0:17:02.600 --> 0:17:03.520 CEO change. 0:17:03.840 --> 0:17:07.240 We had expected in September that the current CEO would 0:17:07.320 --> 0:17:10.760 lead one of the two new companies, specifically the one 0:17:11.160 --> 0:17:14.520 that it's the grocery Staples. They actually don't have official 0:17:14.640 --> 0:17:18.000 names yet, but that was a collection of the least 0:17:18.119 --> 0:17:22.000 profitable or less profitable food items there, including things like 0:17:22.080 --> 0:17:26.640 lunch a Bowles and Oscar Meyer Deli Meats. The surprise 0:17:26.680 --> 0:17:28.560 came this morning that he is in fact not going 0:17:28.560 --> 0:17:30.919 to lead that company, and instead they are bringing in 0:17:31.080 --> 0:17:37.280 Steve kay Helene from Kelenova to lead the second company 0:17:37.680 --> 0:17:40.800 after the split has gone through. That is being called 0:17:40.800 --> 0:17:45.240 the Global Taste Elevation Company, and that's going to have Heinz, Ketchup, Kraft, 0:17:45.320 --> 0:17:48.280 mac and Cheese, some of those beloved iconic products. 0:17:48.520 --> 0:17:50.800 So that's the fastcoring part of the company, and the 0:17:50.840 --> 0:17:53.480 other one is kind of the you know, the equivalent 0:17:53.520 --> 0:17:56.879 of CNN TNT and you know, the leave it behind 0:17:56.960 --> 0:17:59.919 assets that you know are are you're managing the decline? 0:18:00.400 --> 0:18:02.919 What can you tell us about Steve cal Lane, the 0:18:02.960 --> 0:18:06.360 former Kelenova CEO. What is his approach his philosophy. 0:18:07.119 --> 0:18:09.040 Well, I just spoke with him and he said that 0:18:09.119 --> 0:18:11.560 he's going to be focused on bringing organic growth to 0:18:11.600 --> 0:18:14.600 the company. We talked a little bit about focusing on 0:18:14.640 --> 0:18:16.800 some of the health and wellness trends that consumers are 0:18:16.800 --> 0:18:21.159 looking for, increasing offerings with protein, with fiber, with shorter 0:18:21.359 --> 0:18:24.639 ingredient lists, you know, the so called cleaner labels. So 0:18:24.680 --> 0:18:26.960 they'll definitely be leaning into that. It sounds like a 0:18:26.960 --> 0:18:31.480 little bit more. He also led Kellogg through its split. 0:18:32.080 --> 0:18:35.400 The Kellig Company split into w K Kellogg and then Kelenova. 0:18:35.760 --> 0:18:39.840 Both of those companies were then separately acquired. I asked 0:18:39.920 --> 0:18:41.960 him if he thought that could be a path here, 0:18:42.040 --> 0:18:44.080 and he said, it's hard to predict the future, so 0:18:44.359 --> 0:18:45.160 not rolling it out. 0:18:45.359 --> 0:18:48.040 So what's been the challenge for craft Minds over the 0:18:48.119 --> 0:18:49.639 last number of years? 0:18:50.320 --> 0:18:54.000 I mean, in general, the food companies are all struggling 0:18:54.040 --> 0:18:59.359 with this shift as consumers move towards healthier, less processed food. 0:18:59.400 --> 0:19:02.320 The company says that they just had too many brands 0:19:02.400 --> 0:19:05.159 and that splitting into two will help them focus on 0:19:05.440 --> 0:19:10.359 each component. I think that there is some analyst chatter 0:19:10.440 --> 0:19:12.760 that that's what companies say when they just need to 0:19:13.400 --> 0:19:16.480 know spin off some of their less profitable items. But 0:19:17.359 --> 0:19:19.720 they will tell you that they expect both companies will 0:19:20.080 --> 0:19:22.680 have better value when there's an ability to focus more 0:19:22.720 --> 0:19:25.199 on the condiments and box meals and then on some 0:19:25.240 --> 0:19:26.000 of the other foods. 0:19:26.280 --> 0:19:28.520 Put this all into context for us when Paul talks 0:19:28.520 --> 0:19:31.000 about how you know this group has been kind of 0:19:31.040 --> 0:19:35.439 struggling overall. We also saw that with PepsiCo with Coca Cola, 0:19:35.480 --> 0:19:38.560 I mean, they have had to rethink their strategy completely. 0:19:38.920 --> 0:19:41.359 Yet there's just been a lot of movement in the 0:19:41.359 --> 0:19:45.320 food industry right now. PepsiCo announced some pretty dramatic changes. 0:19:45.320 --> 0:19:47.600 They're going to reduce the number of products they sell 0:19:47.640 --> 0:19:50.080 by twenty percent and lower prices in some of their 0:19:50.160 --> 0:19:54.000 key brands as part of agreement with activist investor Elliott 0:19:54.000 --> 0:19:57.960 Investment Management. Coke has a new CEO. I think coc 0:19:58.080 --> 0:20:02.160 is in pretty solid shape. They've been doing their shares 0:20:02.200 --> 0:20:03.960 have been doing really well compared to some of the 0:20:03.960 --> 0:20:08.199 other business companies. But yet, in general, the companies that 0:20:08.240 --> 0:20:10.960 I think are really tapping into this health and wellness 0:20:10.960 --> 0:20:14.560 interest in consumers are often the smaller startup brands and 0:20:14.600 --> 0:20:16.960 the big companies are playing catch up not only with them, 0:20:17.000 --> 0:20:18.959 but some of the private label companies too that are 0:20:19.000 --> 0:20:21.639 really nimble and able to get some of these new 0:20:21.640 --> 0:20:22.879 products to market really fast. 0:20:23.160 --> 0:20:26.080 Are thanks to Christina Peterson Bloomberg, a food industry reporter. 0:20:26.400 --> 0:20:29.320 We move next to the biotech sector. Bloomberg Intelligence recent 0:20:29.400 --> 0:20:31.960 came out with research which gives an overview of the 0:20:31.960 --> 0:20:33.359 blood cancer myloma. 0:20:33.680 --> 0:20:37.240 According to Bloomberg Intelligence, multiple maloma patient numbers are rising 0:20:37.280 --> 0:20:40.359 globally due to the aging population and just by an 0:20:40.359 --> 0:20:44.400 evolved treatment landscape that's leveraged the FDA's accelerated drug approval. 0:20:44.760 --> 0:20:46.920 There's still unmet need for more. 0:20:46.760 --> 0:20:48.919 On this and the latest in the biotech sector. We 0:20:48.960 --> 0:20:52.040 were joined by Sam Fazzelli, Bloomberg Intelligence, director of Research 0:20:52.080 --> 0:20:54.720 for Global Industries and senior pharmaceuticals analysts. 0:20:54.840 --> 0:20:57.160 We began by asking Sam, where we are in terms 0:20:57.200 --> 0:20:58.040 of treating maloma. 0:20:58.280 --> 0:21:01.119 Well, let me tell you about these cancers, treatments and 0:21:01.160 --> 0:21:05.240 these cancer areas where patient numbers in terms of those 0:21:05.280 --> 0:21:08.760 who live rather than those who die is fundamentally changing. 0:21:09.240 --> 0:21:12.080 Breast cancer has been one of them. Prostate cancers another one, 0:21:12.760 --> 0:21:16.200 melanoma is another one which of course people are familiar with, 0:21:16.200 --> 0:21:18.200 and of course myloma has been one that we've also 0:21:18.240 --> 0:21:21.360 got there. There are patients who are alive today who 0:21:21.400 --> 0:21:26.080 were diagnosed in nineteen ninety six, nineteen ninety eight, and 0:21:26.119 --> 0:21:29.639 there are and there have been people developments in that 0:21:29.720 --> 0:21:33.960 space that literally are changing completely the way that people 0:21:34.040 --> 0:21:36.439 end up living with their disease. Of course, it's not 0:21:36.480 --> 0:21:39.879 for everybody that ends up like that, but the average 0:21:42.000 --> 0:21:45.240 mortality or the average life expectance you have the patients 0:21:45.240 --> 0:21:48.720 with maloma has significantly changed. And what is it. It's 0:21:48.720 --> 0:21:51.000 a cancer of the bone marrow, which then of course 0:21:51.359 --> 0:21:54.080 translates to some changes in your blood, so he's a 0:21:54.119 --> 0:21:58.399 hematological cancer. And yet another major development in the last 0:21:58.920 --> 0:22:02.600 week or so that came out at Orlando, a conference 0:22:02.680 --> 0:22:04.600 that was held last week. 0:22:05.240 --> 0:22:07.640