1 00:00:02,720 --> 00:00:12,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is Bloomberg Intelligence 2 00:00:12,119 --> 00:00:13,240 Speaker 1: with Paul Sweeney. 3 00:00:13,360 --> 00:00:16,640 Speaker 2: The real app performance has been the US corporate high yields. 4 00:00:16,680 --> 00:00:20,320 Speaker 2: These are two big time blue chip companies. One person's 5 00:00:20,360 --> 00:00:24,079 Speaker 2: cast is another person's animal spirits, breaking market. 6 00:00:23,760 --> 00:00:26,560 Speaker 1: Headlines and corporate news from across the globe. 7 00:00:26,600 --> 00:00:28,640 Speaker 2: Our view is, if the economy is slowing. 8 00:00:28,280 --> 00:00:30,800 Speaker 3: Down, there is the possibility of the debt spirals. 9 00:00:30,880 --> 00:00:33,400 Speaker 4: Both tutum competing and AI are going to power the future. 10 00:00:33,479 --> 00:00:35,240 Speaker 2: People are just buying everything with tex. 11 00:00:35,280 --> 00:00:39,879 Speaker 1: Bloomberg Intelligence with Paul Sweeney on Bloomberg Radio, YouTube and 12 00:00:39,960 --> 00:00:41,880 Speaker 1: Bloomberg Originals. 13 00:00:42,920 --> 00:00:45,320 Speaker 5: I'm Paul Sweeney and I'm John Tucker, filming in on 14 00:00:45,360 --> 00:00:46,480 Speaker 5: Bloomberg Intelligence. 15 00:00:46,560 --> 00:00:48,600 Speaker 2: On today's show, we dig inside the big business stories 16 00:00:48,600 --> 00:00:50,360 Speaker 2: impacting Wall Street and the global markets. 17 00:00:50,680 --> 00:00:52,920 Speaker 5: Hn Every week we provide the in depth research and 18 00:00:53,040 --> 00:00:55,480 Speaker 5: data on some of the two thousand companies at one 19 00:00:55,600 --> 00:00:58,720 Speaker 5: hundred and thirty industries our analysts cover worldwide. 20 00:00:59,040 --> 00:01:01,120 Speaker 2: Today we'll look at like Tech Split, investors may be 21 00:01:01,160 --> 00:01:04,320 Speaker 2: concerned about Cego Elon Musk's new political party. 22 00:01:04,640 --> 00:01:07,839 Speaker 5: Plus we're gonna look at Bloomberg Intelligence. There's ten companies 23 00:01:07,880 --> 00:01:10,640 Speaker 5: to watch in the third quarter of twenty twenty five. 24 00:01:10,880 --> 00:01:13,160 Speaker 2: But first we begin with the airline industry. 25 00:01:12,880 --> 00:01:15,959 Speaker 5: And this week Delta Airlines reported quarterly earnings and also 26 00:01:16,040 --> 00:01:18,760 Speaker 5: reinstated a profit outlook for the year. The company also 27 00:01:18,800 --> 00:01:21,440 Speaker 5: said travelers are coming back for more. 28 00:01:21,480 --> 00:01:23,760 Speaker 2: John Tucker and I were joined by George ferguson Bloomberg 29 00:01:23,800 --> 00:01:27,400 Speaker 2: Intelligence senior Aerospace, Defense and airlines analysts. 30 00:01:26,920 --> 00:01:29,880 Speaker 5: And first we asked George for his take on Delta's 31 00:01:30,000 --> 00:01:31,080 Speaker 5: recent earnings. 32 00:01:31,600 --> 00:01:35,080 Speaker 3: They reinstated guidance, but at a lower EPs than they 33 00:01:35,120 --> 00:01:37,960 Speaker 3: had initiated at the end of the year. I think 34 00:01:37,959 --> 00:01:40,480 Speaker 3: the market still looks a little bit soft to us. 35 00:01:41,680 --> 00:01:45,920 Speaker 3: For sure, fuel prices are giving airlines a bit of 36 00:01:46,000 --> 00:01:50,520 Speaker 3: a bolster on the bottom line. But I think what 37 00:01:50,560 --> 00:01:53,800 Speaker 3: we heard was on the demand side was more of 38 00:01:53,800 --> 00:01:57,200 Speaker 3: the continuing story, and that is that premium is holding 39 00:01:57,280 --> 00:01:59,640 Speaker 3: up really well, and Delta is going to do very 40 00:01:59,640 --> 00:02:04,200 Speaker 3: well because of their loyalty programs and such. Basic economy 41 00:02:04,280 --> 00:02:08,360 Speaker 3: isn't And if you look at Delta's you know, price 42 00:02:08,400 --> 00:02:11,440 Speaker 3: paid per mile flown for customer, it was down in 43 00:02:11,560 --> 00:02:14,880 Speaker 3: every single market that they served, or maybe flatish in 44 00:02:14,960 --> 00:02:16,920 Speaker 3: Latin America, but all the rest of the markets down 45 00:02:17,639 --> 00:02:20,400 Speaker 3: during the quarter. So to us, it looks like a 46 00:02:20,440 --> 00:02:23,679 Speaker 3: market that still needs to have capacity come out, and 47 00:02:23,840 --> 00:02:24,720 Speaker 3: some of it will. 48 00:02:24,760 --> 00:02:29,280 Speaker 5: See The CEO pointed to progress in trade talks between 49 00:02:29,320 --> 00:02:31,440 Speaker 5: the US and other countries and the potential for some 50 00:02:32,040 --> 00:02:36,440 Speaker 5: geopolitical conflicts to abate. I mean the flying public, really, 51 00:02:37,120 --> 00:02:39,080 Speaker 5: I don't know, are they really thinking about this when 52 00:02:39,120 --> 00:02:41,920 Speaker 5: they book a flight on Delta or any other airline? 53 00:02:42,639 --> 00:02:44,240 Speaker 3: Yeah, I mean, so when I think of that, I 54 00:02:44,240 --> 00:02:49,320 Speaker 3: think that's going to largely benefit his international business. I 55 00:02:49,360 --> 00:02:51,320 Speaker 3: don't know, you know, I was polis to pick him 56 00:02:51,360 --> 00:02:54,720 Speaker 3: because I get to Paris for Paris Air Show, you know, 57 00:02:54,800 --> 00:02:57,320 Speaker 3: every other summer, and when I was in Paris, it 58 00:02:57,360 --> 00:03:00,960 Speaker 3: was teaming with Americans. So it didn't seem like, even 59 00:03:00,960 --> 00:03:05,560 Speaker 3: with protests going on around, it didn't seem like demand 60 00:03:05,720 --> 00:03:09,359 Speaker 3: was off for international travel, at least you know, anecdotally 61 00:03:09,400 --> 00:03:12,720 Speaker 3: and some of the places I've been to. So I 62 00:03:12,800 --> 00:03:14,360 Speaker 3: don't know. I mean, I think it takes a little 63 00:03:14,360 --> 00:03:17,280 Speaker 3: bit of demand off, maybe a very little bit, but 64 00:03:17,400 --> 00:03:19,840 Speaker 3: right now I think the international traveler seems to be 65 00:03:19,919 --> 00:03:22,359 Speaker 3: rolling right over top of that and going anyways. 66 00:03:22,720 --> 00:03:26,120 Speaker 2: George, how does an airline take capacity out of the 67 00:03:26,160 --> 00:03:29,040 Speaker 2: system is that just going from like ten flights between 68 00:03:29,080 --> 00:03:31,600 Speaker 2: Newark and Miami a day to I don't know seven 69 00:03:31,680 --> 00:03:31,959 Speaker 2: or eight. 70 00:03:33,160 --> 00:03:38,080 Speaker 3: I mean, I think ultimately you gotta park airplanes. I mean, 71 00:03:38,680 --> 00:03:40,800 Speaker 3: you know, it's a capital intensive business. You don't want 72 00:03:40,800 --> 00:03:43,560 Speaker 3: to buy those airplanes and not utilize them. You take 73 00:03:43,560 --> 00:03:46,840 Speaker 3: your old stuff, you park it, you maybe retire it, 74 00:03:47,000 --> 00:03:49,560 Speaker 3: sell it off. But what I mean, what we're seeing 75 00:03:49,640 --> 00:03:52,800 Speaker 3: as three Q develops, and so we'll watch as closely 76 00:03:52,840 --> 00:03:55,880 Speaker 3: to see what it does to demand, is we're seeing 77 00:03:55,880 --> 00:04:01,000 Speaker 3: that the low cost carriers Spirit Frontier like they're taking 78 00:04:01,840 --> 00:04:06,800 Speaker 3: large portions out of their plan for three Q. Now 79 00:04:07,040 --> 00:04:09,400 Speaker 3: it may not hold. They may add some of those 80 00:04:10,040 --> 00:04:12,640 Speaker 3: those routes back, some of those seats back, but we're 81 00:04:12,680 --> 00:04:15,720 Speaker 3: seeing numbers down twenty percent in some of their capacity. 82 00:04:16,360 --> 00:04:19,880 Speaker 3: On the full service side, United in Delta is still adding. 83 00:04:19,960 --> 00:04:22,279 Speaker 3: United adding the most I think I want to say, 84 00:04:22,320 --> 00:04:25,920 Speaker 3: five is six is percent, Delta adding two three ish percent. 85 00:04:26,360 --> 00:04:29,720 Speaker 3: An economy that's not growing that fast. American look kind 86 00:04:29,760 --> 00:04:32,640 Speaker 3: of flat, meaning the economy is growing at rates, you know, 87 00:04:33,120 --> 00:04:36,400 Speaker 3: sub two percent. So it feels like the big full 88 00:04:36,400 --> 00:04:39,159 Speaker 3: service are going to push through here and try to 89 00:04:39,160 --> 00:04:41,200 Speaker 3: push through and continue to subsidize the back of the cabin, 90 00:04:41,240 --> 00:04:44,600 Speaker 3: that basic economy with the front of the cabin strength. 91 00:04:45,120 --> 00:04:47,440 Speaker 3: I feel like at some point they'll break that front 92 00:04:47,440 --> 00:04:49,279 Speaker 3: of the cabin. I think that's sort of how the 93 00:04:49,400 --> 00:04:50,400 Speaker 3: industry always works. 94 00:04:50,560 --> 00:04:53,160 Speaker 5: We'll see in none of these reports, do I see 95 00:04:53,160 --> 00:04:58,479 Speaker 5: anything mentioned about JEFT fuel prices? Should we'd be concerned 96 00:04:58,520 --> 00:04:58,919 Speaker 5: about that? 97 00:05:00,120 --> 00:05:02,040 Speaker 3: Well, I mean, right now it's a tailwind, and if 98 00:05:02,040 --> 00:05:05,800 Speaker 3: that reverses could be a problem. Right, But I mean 99 00:05:05,880 --> 00:05:10,440 Speaker 3: jet fuel prices are down because of slower global growth, right, 100 00:05:10,480 --> 00:05:13,279 Speaker 3: I mean, I think the geopolitical backdrop doesn't help it, 101 00:05:13,320 --> 00:05:16,000 Speaker 3: but it doesn't seem to have pushed prices up firm 102 00:05:16,080 --> 00:05:18,760 Speaker 3: or I think I saw Saudi's are talking potentially about 103 00:05:19,320 --> 00:05:22,160 Speaker 3: reducing some of the capacity ads they're coming on. I 104 00:05:22,160 --> 00:05:24,880 Speaker 3: don't know if that sounds strong enough yet, but if 105 00:05:24,960 --> 00:05:28,800 Speaker 3: jet fuel turns, that would be that would work against them, 106 00:05:28,800 --> 00:05:30,680 Speaker 3: because again, we've got an airline business. If you look 107 00:05:30,720 --> 00:05:35,240 Speaker 3: at Delta, they added three ish percent capacity or around 108 00:05:35,320 --> 00:05:39,160 Speaker 3: there for this quarter and revenues were flat. Right, So 109 00:05:39,200 --> 00:05:42,640 Speaker 3: they're adding capacity and revenues are flat. I generally don't 110 00:05:42,720 --> 00:05:44,760 Speaker 3: like that kind of backdrop. 111 00:05:45,080 --> 00:05:46,280 Speaker 5: Uh business travel. 112 00:05:46,360 --> 00:05:49,880 Speaker 2: Delta actually kind of called that out as perhaps corporate 113 00:05:49,920 --> 00:05:53,240 Speaker 2: travel is quote unquote strengthening. Are you seeing that across 114 00:05:53,320 --> 00:05:56,280 Speaker 2: the industry? And where I guess where's corporate travel versus 115 00:05:56,640 --> 00:05:57,400 Speaker 2: pre pandemic. 116 00:05:58,480 --> 00:06:00,440 Speaker 3: Yeah, so they're not telling us anymore, all right, And 117 00:06:00,560 --> 00:06:04,080 Speaker 3: usually you tell us when you're really excited about where 118 00:06:04,080 --> 00:06:07,560 Speaker 3: it is. Look, I think the summer flying seasons are 119 00:06:07,600 --> 00:06:12,279 Speaker 3: all about leisure. What I heard was that they that 120 00:06:12,360 --> 00:06:16,320 Speaker 3: they were having weakening, weaker pricing power in sort of 121 00:06:16,320 --> 00:06:20,200 Speaker 3: the off peak demand times. And my read through on 122 00:06:20,240 --> 00:06:23,760 Speaker 3: that is that summer leisure traveler where they know they 123 00:06:23,800 --> 00:06:26,279 Speaker 3: got you right. All my friends call me, they go, hey, George, 124 00:06:26,320 --> 00:06:29,240 Speaker 3: I hear airfares are down, but I'm trying to travel 125 00:06:29,240 --> 00:06:32,240 Speaker 3: over July fourth week on vacation with the family, and 126 00:06:32,279 --> 00:06:34,159 Speaker 3: I'm paying a crazy price. And I'm like, yeah, because 127 00:06:34,200 --> 00:06:36,599 Speaker 3: you're going when everyone else in the world wants to 128 00:06:36,600 --> 00:06:37,120 Speaker 3: go somewhere. 129 00:06:37,200 --> 00:06:37,400 Speaker 2: Right. 130 00:06:38,080 --> 00:06:40,240 Speaker 3: So when I read off peak, I also think that's 131 00:06:40,240 --> 00:06:44,240 Speaker 3: probably a little bit of business travel, and so I 132 00:06:44,279 --> 00:06:46,840 Speaker 3: don't know that it's going swimmingly and they're not. They're 133 00:06:46,920 --> 00:06:50,440 Speaker 3: not giving us numbers. What I heard was kind of stabilized, 134 00:06:50,839 --> 00:06:53,600 Speaker 3: but I didn't hear to me, I didn't hear something 135 00:06:53,600 --> 00:06:55,560 Speaker 3: that sounded like it was getting much better, and again, 136 00:06:55,640 --> 00:06:57,240 Speaker 3: Summer's about leisure. 137 00:06:57,839 --> 00:07:00,719 Speaker 2: Our thanks to George Ferguson Bloomberg Intelligence in your Aerospace, 138 00:07:00,800 --> 00:07:02,840 Speaker 2: defense and airlines analysts. 139 00:07:02,480 --> 00:07:04,760 Speaker 5: And we moved next to the anti trust space. 140 00:07:05,160 --> 00:07:08,120 Speaker 2: As the anti trust enforcement policies and President Donald Trump's 141 00:07:08,120 --> 00:07:11,960 Speaker 2: administration takes shape, deal makers and large businesses hoping for 142 00:07:12,080 --> 00:07:14,800 Speaker 2: relief could see a glimmer of hope in some areas, 143 00:07:14,840 --> 00:07:15,440 Speaker 2: but not all. 144 00:07:15,560 --> 00:07:18,640 Speaker 5: That's according to Bloomberg Intelligence, which recently took a deep 145 00:07:18,720 --> 00:07:21,760 Speaker 5: dive into what the anti trust space could look like 146 00:07:21,920 --> 00:07:23,640 Speaker 5: during the second half of the year. 147 00:07:24,040 --> 00:07:26,480 Speaker 2: For more guest host Normal Linden, I were joined by 148 00:07:26,560 --> 00:07:30,520 Speaker 2: Jennifer Reed, Bloomberg Intelligence senior litigation analysts. Your first es, Jen, 149 00:07:30,880 --> 00:07:33,560 Speaker 2: what the anti trust environment is looking like under the 150 00:07:33,560 --> 00:07:34,440 Speaker 2: Trump administration. 151 00:07:35,040 --> 00:07:37,040 Speaker 6: You know, there was a lot of uncertainty going into 152 00:07:37,040 --> 00:07:39,320 Speaker 6: the election during the fourth quarter of last year, but 153 00:07:39,360 --> 00:07:41,800 Speaker 6: I think there are some really good signs for those 154 00:07:41,840 --> 00:07:44,520 Speaker 6: companies that want to engage in big deals going forward. 155 00:07:44,560 --> 00:07:48,240 Speaker 6: And the main reason is because Trump's anti trust enforcers 156 00:07:48,280 --> 00:07:51,520 Speaker 6: are willing to accept settlements with a remedy to allow 157 00:07:51,560 --> 00:07:53,840 Speaker 6: a bigger deal to close essentially meaning that if there's 158 00:07:53,880 --> 00:07:56,560 Speaker 6: an overlapping product and there'd be too much concentration in 159 00:07:56,600 --> 00:07:59,120 Speaker 6: the market for that product, that product line could be 160 00:07:59,160 --> 00:08:01,560 Speaker 6: sold in the larger deal can get closed. And the 161 00:08:01,600 --> 00:08:05,640 Speaker 6: Buying administration essentially refused to do that. They thought, if 162 00:08:05,640 --> 00:08:07,640 Speaker 6: a deal was problematic, we're just going to sue it 163 00:08:07,680 --> 00:08:09,160 Speaker 6: and try to block it. And it led to a 164 00:08:09,200 --> 00:08:11,720 Speaker 6: lot of lawsuits, a lot of abandonments, and a lot 165 00:08:11,720 --> 00:08:13,680 Speaker 6: of deals that just didn't get signed to begin with. 166 00:08:14,120 --> 00:08:16,880 Speaker 6: So because we're seeing this sign that deals can get settled, 167 00:08:16,920 --> 00:08:18,440 Speaker 6: I do think we're going to start to see more 168 00:08:18,440 --> 00:08:21,480 Speaker 6: bigger deals getting signed up in the second half and 169 00:08:21,520 --> 00:08:22,640 Speaker 6: probably next year two. 170 00:08:23,600 --> 00:08:29,360 Speaker 2: So, you know, for all these agencies within Washington, they 171 00:08:29,400 --> 00:08:33,720 Speaker 2: obviously feel the presence of President Trump very keenly. The 172 00:08:33,760 --> 00:08:36,120 Speaker 2: folks that are in charge of the Federal Trade Commission, 173 00:08:36,240 --> 00:08:39,120 Speaker 2: the Department of Justice, how much independence do you think 174 00:08:39,240 --> 00:08:40,800 Speaker 2: they have at this. 175 00:08:40,800 --> 00:08:46,120 Speaker 6: Point, you know, Paul, probably not very much. You know, 176 00:08:46,160 --> 00:08:48,559 Speaker 6: in the past, in particular, the Federal Trade Commission was 177 00:08:48,559 --> 00:08:51,640 Speaker 6: supposed to be quite independent, and really it was because 178 00:08:51,760 --> 00:08:54,360 Speaker 6: it had five commissioners, only three of which could be 179 00:08:54,400 --> 00:08:57,000 Speaker 6: from one political party, and they needed a majority vote 180 00:08:57,000 --> 00:08:59,760 Speaker 6: to take any action with a deal. But President Trump 181 00:08:59,760 --> 00:09:02,880 Speaker 6: has hired the two Democrats, so we now have three Republicans, 182 00:09:03,120 --> 00:09:05,720 Speaker 6: and we have three Republicans that very much are behind 183 00:09:05,840 --> 00:09:10,520 Speaker 6: him and his political visions. So I think that they 184 00:09:10,559 --> 00:09:13,440 Speaker 6: will essentially do what they think he wants done. And 185 00:09:13,480 --> 00:09:15,760 Speaker 6: we have seen an example of that because they did 186 00:09:15,800 --> 00:09:19,200 Speaker 6: clear a deal between two huge ad agencies, OmniComm and 187 00:09:19,240 --> 00:09:23,440 Speaker 6: Interpublic with what we call a behavioral agreement, which they 188 00:09:23,440 --> 00:09:25,880 Speaker 6: have said that they don't tend to want to take, 189 00:09:26,400 --> 00:09:31,480 Speaker 6: agreeing that they wouldn't prevent advertisers from advertising a next 190 00:09:31,520 --> 00:09:35,840 Speaker 6: to content that was right leaning or expressed conservative viewpoints 191 00:09:35,880 --> 00:09:38,320 Speaker 6: that they might not agree with. So that was very 192 00:09:38,400 --> 00:09:40,600 Speaker 6: much kind of in ligned with this administration and what 193 00:09:40,679 --> 00:09:42,840 Speaker 6: this administration wants. So I do think we're going to 194 00:09:42,840 --> 00:09:46,280 Speaker 6: see alignment in terms of what these remedies are and 195 00:09:46,320 --> 00:09:49,839 Speaker 6: the deals that get cleared with what Trump is saying 196 00:09:49,880 --> 00:09:51,200 Speaker 6: and with what Trump wants. 197 00:09:52,120 --> 00:09:56,080 Speaker 7: So Trump terminated two Democratic FTC commissioners back in the 198 00:09:56,120 --> 00:09:58,040 Speaker 7: first quarter of this year, and of course we know 199 00:09:58,120 --> 00:10:01,880 Speaker 7: this did raise some significant concept tutional concerns in terms 200 00:10:01,960 --> 00:10:07,000 Speaker 7: of the commission's historical independence and of course enforcement efforts. 201 00:10:07,440 --> 00:10:11,319 Speaker 7: What is this really signaled in terms of potential policy changes. 202 00:10:13,000 --> 00:10:15,640 Speaker 6: Well, you know, the thing is that, first of all, 203 00:10:15,679 --> 00:10:18,040 Speaker 6: we do all of these challenges are going up to 204 00:10:18,040 --> 00:10:20,040 Speaker 6: the Supreme Court, and we do think that this is 205 00:10:20,040 --> 00:10:21,960 Speaker 6: going to stick. We do think that because of some 206 00:10:22,000 --> 00:10:24,920 Speaker 6: of the other decisions about other agencies, that even though 207 00:10:24,920 --> 00:10:28,160 Speaker 6: the two Democrats do have an ongoing lawsuit about their termination, 208 00:10:28,600 --> 00:10:31,240 Speaker 6: we think that probably the Supreme Court is going to 209 00:10:31,240 --> 00:10:33,760 Speaker 6: side with Trump and they are going to remain terminated. 210 00:10:34,120 --> 00:10:37,480 Speaker 6: For practical purposes. As I said, I don't think that 211 00:10:37,520 --> 00:10:40,280 Speaker 6: there's very much impact here because you do need a 212 00:10:40,320 --> 00:10:43,480 Speaker 6: majority vote to settle or to suit a block a deal, 213 00:10:43,640 --> 00:10:46,600 Speaker 6: so you need three out of the five. In the past, 214 00:10:46,679 --> 00:10:49,400 Speaker 6: we have seen that the FTCs operated on a very 215 00:10:49,440 --> 00:10:53,120 Speaker 6: sort of bipartisan or nonpartisan basis. We usually have a 216 00:10:53,240 --> 00:10:55,320 Speaker 6: unanimous or maybe a four to one decision, but it 217 00:10:55,360 --> 00:10:57,720 Speaker 6: hasn't been that way. You know, starting with Biden, we 218 00:10:57,720 --> 00:11:00,280 Speaker 6: were seeing a lot of three to two decisions were 219 00:11:00,320 --> 00:11:03,400 Speaker 6: along party lines, right, So I think that we probably 220 00:11:03,400 --> 00:11:05,840 Speaker 6: would have continued to see that even if the two 221 00:11:05,920 --> 00:11:08,680 Speaker 6: Democrats were still there, you'd have the three Republicans. You'd 222 00:11:08,679 --> 00:11:10,959 Speaker 6: probably get your three to two vote to do whatever 223 00:11:11,000 --> 00:11:14,400 Speaker 6: it was that the Republican tinggent wanted. So from a 224 00:11:14,480 --> 00:11:17,800 Speaker 6: practical standpoint, it's not going to have that much impact 225 00:11:17,880 --> 00:11:20,240 Speaker 6: on the decision making for deals of this FTC. 226 00:11:20,760 --> 00:11:22,760 Speaker 2: Are there any deals that are currently being held up 227 00:11:22,840 --> 00:11:26,000 Speaker 2: or being scrutinized that maybe the participants are saying, oh, 228 00:11:26,040 --> 00:11:28,040 Speaker 2: boyd now we're going to really sail through and we 229 00:11:28,080 --> 00:11:30,200 Speaker 2: thought maybe on our Biden it could be a tough 230 00:11:30,240 --> 00:11:33,319 Speaker 2: slide or anything we should keep an eye on, you know. 231 00:11:33,280 --> 00:11:35,520 Speaker 6: Paul, The one I'm really interested in is the Google 232 00:11:35,559 --> 00:11:38,400 Speaker 6: Whiz deal. And I say that because we know this 233 00:11:38,480 --> 00:11:41,040 Speaker 6: administration is no friend to big tech, and we know 234 00:11:41,160 --> 00:11:44,680 Speaker 6: that they're staying really aggressive on the monopolistic conduct side, 235 00:11:44,800 --> 00:11:48,320 Speaker 6: where Google and Apple and Amazon and Facebook have all 236 00:11:48,360 --> 00:11:51,280 Speaker 6: been sued for monopolistic conduct. And to me, that deals 237 00:11:51,360 --> 00:11:54,200 Speaker 6: very interesting because just from an anti trust perspective, I 238 00:11:54,240 --> 00:11:57,360 Speaker 6: don't really think it poses anti trust concerns. You know 239 00:11:57,440 --> 00:11:59,400 Speaker 6: that the concern would be that you have a cloud 240 00:11:59,440 --> 00:12:02,880 Speaker 6: company that's marrying with a cloud security company and they 241 00:12:02,880 --> 00:12:05,720 Speaker 6: could foreclose rivals. But I think that there's ample competition 242 00:12:05,840 --> 00:12:07,800 Speaker 6: on both sides, both on the cloud side and the 243 00:12:07,800 --> 00:12:10,800 Speaker 6: cloud security side. That you probably don't have a very 244 00:12:10,800 --> 00:12:13,720 Speaker 6: strong theory of harm. But we know that this administration 245 00:12:13,840 --> 00:12:16,920 Speaker 6: doesn't necessarily love Google. I'm going to be interested to 246 00:12:16,920 --> 00:12:19,240 Speaker 6: see what happens there, but I suspect we're not going 247 00:12:19,280 --> 00:12:21,400 Speaker 6: to learn in the second half. It's probably going to 248 00:12:21,400 --> 00:12:23,160 Speaker 6: push into the beginning of next year. 249 00:12:23,640 --> 00:12:27,520 Speaker 5: All right, Thanks to Jen Reed, Bloomberg Intelligence senior litigation analysts, 250 00:12:27,640 --> 00:12:29,400 Speaker 5: and just ahead, we're going to look at what President 251 00:12:29,440 --> 00:12:33,199 Speaker 5: Donald Trump's new tax bill means for the pharmaceutical industry. 252 00:12:33,400 --> 00:12:36,560 Speaker 2: You're listening to Bloomberg Intelligence on Bloomberg Radio, providing indepth 253 00:12:36,600 --> 00:12:39,000 Speaker 2: research and data on two thousand companies and one hundred 254 00:12:39,000 --> 00:12:41,839 Speaker 2: and thirty industries. You can access Bloomberg Intelligence via b 255 00:12:42,080 --> 00:12:43,120 Speaker 2: I go on the terminal. 256 00:12:43,240 --> 00:12:46,839 Speaker 5: I'm Paul Sweeney and I'm John Tucker. This is Bloomberg. 257 00:12:52,640 --> 00:12:56,360 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 258 00:12:56,440 --> 00:12:59,480 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay, and Android 259 00:12:59,480 --> 00:13:03,000 Speaker 1: Otto the Bloomberg Business App. Listen on demand wherever you 260 00:13:03,040 --> 00:13:06,479 Speaker 1: get your podcasts, or watch us live on YouTube. 261 00:13:06,920 --> 00:13:09,720 Speaker 5: I'm Paul Sweeney and I'm John Tucker filling in on 262 00:13:09,760 --> 00:13:10,880 Speaker 5: Bloomberg Intelligence. 263 00:13:11,160 --> 00:13:13,440 Speaker 2: We moved to some news in the tech space. 264 00:13:13,280 --> 00:13:16,360 Speaker 5: And this week we heard that the AI cloud computing 265 00:13:16,400 --> 00:13:21,239 Speaker 5: startup core Weave is acquiring the data center operator Core Scientific. 266 00:13:21,600 --> 00:13:25,800 Speaker 5: It's an all stock transaction. It's valued at nine billion dollars. 267 00:13:26,080 --> 00:13:28,520 Speaker 2: For more. Guest hosts Lisa Matteo and I were joined 268 00:13:28,520 --> 00:13:31,640 Speaker 2: by On a Rock Ranna Bloomberg Intelligence senior technology analysts. 269 00:13:31,880 --> 00:13:34,720 Speaker 2: We're first to ask on a Rock how this deal benefits. 270 00:13:34,280 --> 00:13:36,520 Speaker 8: Core weave me and think about it, that they have 271 00:13:36,679 --> 00:13:40,240 Speaker 8: capacity to process a summer of transactions, all the backlock 272 00:13:40,320 --> 00:13:43,440 Speaker 8: that they have with this particular deal, they are expanding 273 00:13:43,480 --> 00:13:45,800 Speaker 8: their infrastructure. I mean, it's a very simple deal as 274 00:13:45,840 --> 00:13:48,360 Speaker 8: if you know, they're just buying more factories to produce 275 00:13:48,600 --> 00:13:50,840 Speaker 8: what they do. So this is you know, it's it's 276 00:13:50,920 --> 00:13:52,559 Speaker 8: as simple as that, all right. 277 00:13:52,600 --> 00:13:56,000 Speaker 2: So this I'm not a tech person, so but I 278 00:13:56,080 --> 00:13:59,560 Speaker 2: know this tell us what core Weave is. What did 279 00:13:59,600 --> 00:14:02,240 Speaker 2: they do and why are they showing out nine billion 280 00:14:02,240 --> 00:14:03,320 Speaker 2: dollars to get bigger? 281 00:14:03,400 --> 00:14:06,640 Speaker 8: I guess so in the purest of pure reforms, they 282 00:14:06,679 --> 00:14:10,240 Speaker 8: are just renting computing resources to anybody that wants to 283 00:14:10,320 --> 00:14:13,520 Speaker 8: run an AI infrastructure. They are a very big Invidia shop. 284 00:14:13,600 --> 00:14:17,240 Speaker 8: They basically buy GPUs from Nvidia. They create a network 285 00:14:17,320 --> 00:14:19,560 Speaker 8: or an infrastructure, and they give it to people to 286 00:14:19,640 --> 00:14:22,360 Speaker 8: go out and experiment or do whatever they need to 287 00:14:22,400 --> 00:14:25,760 Speaker 8: do on that infrastructure. It's no different than what AWS does, 288 00:14:26,120 --> 00:14:29,480 Speaker 8: but very heavy focus on GPUs rather than the CPU. 289 00:14:29,560 --> 00:14:32,200 Speaker 8: So that's really the big difference between a pure play 290 00:14:32,680 --> 00:14:35,560 Speaker 8: provider like Corevive versus Amazon Web Services. 291 00:14:35,840 --> 00:14:38,200 Speaker 4: Now, if you can dig into some of the background, 292 00:14:38,200 --> 00:14:41,400 Speaker 4: what kind of challenges has Core We've had in the past. 293 00:14:41,400 --> 00:14:43,320 Speaker 4: I mean, didn't they have a pretty dismal IPO. 294 00:14:43,800 --> 00:14:44,000 Speaker 9: Yeah. 295 00:14:44,080 --> 00:14:46,640 Speaker 8: I think that's really the most important thing is, you know, 296 00:14:46,680 --> 00:14:48,920 Speaker 8: the everybody thought when they're going to come out as 297 00:14:48,960 --> 00:14:52,240 Speaker 8: the first pure play you know AI infrastructure IPO, it's 298 00:14:52,280 --> 00:14:55,280 Speaker 8: going to be extremely popular, but it didn't happen. And 299 00:14:55,320 --> 00:14:58,360 Speaker 8: the reason for that is because they need a large 300 00:14:58,360 --> 00:15:01,800 Speaker 8: amount of upfront capital to build these data centers, and 301 00:15:01,880 --> 00:15:04,440 Speaker 8: then the workload comes in over the next several years. 302 00:15:04,560 --> 00:15:07,240 Speaker 8: So there's a lot of questions about whether there's going 303 00:15:07,280 --> 00:15:10,920 Speaker 8: to be sustainability of this GPU demand going forward several 304 00:15:11,000 --> 00:15:13,600 Speaker 8: years out. So that's why you were right. The IPO 305 00:15:13,680 --> 00:15:15,760 Speaker 8: came at forty In a few days, it was down 306 00:15:15,840 --> 00:15:18,160 Speaker 8: to thirty five, but now we're seeing you know, the 307 00:15:18,200 --> 00:15:21,120 Speaker 8: stock closer too wants sixty before this deal was announced, 308 00:15:21,160 --> 00:15:23,320 Speaker 8: so I you know, we have talked about it before that. 309 00:15:23,440 --> 00:15:25,640 Speaker 8: You know, why aren't they doing a secondary when it's 310 00:15:25,640 --> 00:15:27,480 Speaker 8: like one hundred and sixty bucks stock of What they 311 00:15:27,480 --> 00:15:30,240 Speaker 8: did instead is they use their stock to go out 312 00:15:30,240 --> 00:15:33,480 Speaker 8: and buy another competitor I shouldn't say competitor, but you know, 313 00:15:33,560 --> 00:15:37,280 Speaker 8: another company in that space, so that it expands their capacity. 314 00:15:37,560 --> 00:15:39,320 Speaker 8: And you know, I think they're doing the right thing 315 00:15:39,360 --> 00:15:41,400 Speaker 8: by using stock at this point. 316 00:15:41,040 --> 00:15:43,720 Speaker 2: Are there more core weaves out there on a row 317 00:15:44,240 --> 00:15:48,720 Speaker 2: kind of more pure play AI stories, maybe the kind 318 00:15:48,720 --> 00:15:51,880 Speaker 2: of the sausage of AI, if you will, the guts 319 00:15:52,640 --> 00:15:54,400 Speaker 2: that somebody could take public. 320 00:15:54,920 --> 00:15:57,360 Speaker 8: There are multiples of them there, but they are much 321 00:15:57,360 --> 00:16:00,360 Speaker 8: smaller size in Kobe there, I would say there would 322 00:16:00,360 --> 00:16:02,800 Speaker 8: be hundreds of them at this point, because you know, 323 00:16:02,840 --> 00:16:05,040 Speaker 8: you go out, you buy the GPU, you go out 324 00:16:05,040 --> 00:16:07,480 Speaker 8: and start renting it out in the in you know, 325 00:16:07,560 --> 00:16:10,000 Speaker 8: in a long time ago, this high powered computing was 326 00:16:10,160 --> 00:16:13,200 Speaker 8: used for bitcoin mining, and then you know, when that's 327 00:16:13,240 --> 00:16:16,160 Speaker 8: not in favor, these guys are renting out their infrastructure 328 00:16:16,200 --> 00:16:19,080 Speaker 8: for other reasons. So there are other plays out there. 329 00:16:19,080 --> 00:16:22,000 Speaker 8: But almost all of them are much smaller than core 330 00:16:22,120 --> 00:16:24,280 Speaker 8: Viv from a you know, pure play point of view. 331 00:16:24,480 --> 00:16:28,000 Speaker 4: Now we digged into Krewey, what about core Scientific, what's 332 00:16:28,040 --> 00:16:29,720 Speaker 4: the attraction to them? 333 00:16:30,280 --> 00:16:32,400 Speaker 8: I mean, it's just they're expanding the number of you know, 334 00:16:32,440 --> 00:16:35,640 Speaker 8: the capacity that they have to process the transactions in 335 00:16:35,680 --> 00:16:38,640 Speaker 8: a sense that Corviev has a massive backlog right now. 336 00:16:38,640 --> 00:16:41,520 Speaker 8: They have people wanting to use their services, and then 337 00:16:41,560 --> 00:16:43,440 Speaker 8: these guys have to go out and lease it from 338 00:16:43,680 --> 00:16:46,560 Speaker 8: you know, other companies like Courre Scientific in this case, 339 00:16:46,600 --> 00:16:48,560 Speaker 8: they said, you know, they have an agreement with them 340 00:16:48,840 --> 00:16:52,080 Speaker 8: to lease their facilities. They just said, you know, we'll 341 00:16:52,080 --> 00:16:54,440 Speaker 8: buy it out and expand their size. And I think 342 00:16:54,440 --> 00:16:56,240 Speaker 8: that's as simple as that, all right. 343 00:16:56,280 --> 00:17:00,760 Speaker 5: Thanks to Anna rog Rana, Bloomberg Intelligence, Technology and List, we. 344 00:17:00,760 --> 00:17:03,280 Speaker 2: Moved next to the news in the auto sector this week, 345 00:17:03,320 --> 00:17:06,439 Speaker 2: shares a Tesla fell after recent news that CEO Elon 346 00:17:06,560 --> 00:17:08,720 Speaker 2: Musk was forming a new political party. 347 00:17:08,760 --> 00:17:10,919 Speaker 5: Well mus said he's going to take on Republicans and 348 00:17:10,960 --> 00:17:14,639 Speaker 5: Democrats with the America Party, focusing on House and Senate 349 00:17:14,680 --> 00:17:16,359 Speaker 5: seats for the next twelve months. 350 00:17:16,680 --> 00:17:19,160 Speaker 2: For more guestos, Lisa Matteo and I were joined by 351 00:17:19,160 --> 00:17:22,720 Speaker 2: Craig Trudell, Bloomber Global Autos editor. We first asked Craig 352 00:17:22,760 --> 00:17:25,040 Speaker 2: why investors are concerned about Elon Musk. 353 00:17:25,600 --> 00:17:28,439 Speaker 10: I think they see all sorts of risks here. You know, 354 00:17:28,840 --> 00:17:31,560 Speaker 10: this is a matter of now, you know, not just 355 00:17:31,680 --> 00:17:37,040 Speaker 10: alienating Democrats, but but also now going after Republicans and 356 00:17:37,040 --> 00:17:40,480 Speaker 10: and you know, really sort of ticking off Donald Trump. 357 00:17:40,560 --> 00:17:43,560 Speaker 10: And we've seen that with Trump going from you know, 358 00:17:43,640 --> 00:17:46,400 Speaker 10: kind of biting his tongue when Musk was first attacking 359 00:17:47,240 --> 00:17:50,399 Speaker 10: you know, the big beautiful Bill to really going after 360 00:17:50,480 --> 00:17:53,879 Speaker 10: Musk in a more sort of pitched way. And you know, 361 00:17:53,960 --> 00:17:56,680 Speaker 10: so so this is you know, a risk for him 362 00:17:57,119 --> 00:18:00,680 Speaker 10: to to sort of make himself in anem and of 363 00:18:01,119 --> 00:18:04,960 Speaker 10: both sides of the aisle in Washington potentially, but also 364 00:18:05,160 --> 00:18:09,040 Speaker 10: you know, just a great big distraction after he's assured everybody, 365 00:18:09,480 --> 00:18:12,639 Speaker 10: you know on multiple occasions, Look, I'm going to you know, 366 00:18:12,680 --> 00:18:15,520 Speaker 10: sort of get back to business and and uh, you know, 367 00:18:15,680 --> 00:18:18,719 Speaker 10: tend to to Tesla more than I have been, you know, 368 00:18:19,119 --> 00:18:19,960 Speaker 10: since last year. 369 00:18:20,400 --> 00:18:23,119 Speaker 2: So I have to ask this question, is there a 370 00:18:23,200 --> 00:18:26,800 Speaker 2: board here at this company that Musk here? 371 00:18:27,160 --> 00:18:30,639 Speaker 10: There is, you wouldn't necessarily know it from the actions 372 00:18:30,720 --> 00:18:33,480 Speaker 10: of the board, right, Uh, you know, to the extent 373 00:18:33,520 --> 00:18:37,119 Speaker 10: that we've heard from the board recently, it's been to say, uh, 374 00:18:37,400 --> 00:18:40,600 Speaker 10: you know, Elon's are our guy. Uh, you know, they 375 00:18:40,640 --> 00:18:44,280 Speaker 10: they batted down a report in the Wall Street Journal 376 00:18:44,359 --> 00:18:46,960 Speaker 10: just in the last few months about you know, potential 377 00:18:46,960 --> 00:18:51,119 Speaker 10: succession planning at the company. I think the sort of 378 00:18:51,359 --> 00:18:54,040 Speaker 10: read of that, a close read of that story, it 379 00:18:54,080 --> 00:18:57,400 Speaker 10: wasn't necessarily the case that what the journal was saying 380 00:18:57,520 --> 00:18:59,639 Speaker 10: was that they are, you know, we're actively looking to 381 00:18:59,680 --> 00:19:02,840 Speaker 10: replace Musk. It was potentially more of a matter of 382 00:19:03,080 --> 00:19:05,240 Speaker 10: of you know, sort of doing the job that you 383 00:19:05,240 --> 00:19:07,359 Speaker 10: would expect a board to do. I should sort of, 384 00:19:07,640 --> 00:19:09,960 Speaker 10: you know, give them a credit in that regard that 385 00:19:10,000 --> 00:19:13,200 Speaker 10: at least they're preparing for, uh you know, the potential 386 00:19:14,119 --> 00:19:17,760 Speaker 10: of needing to look for a next CEO. But you know, 387 00:19:17,840 --> 00:19:21,080 Speaker 10: Musk is very much in control of this company, and 388 00:19:21,119 --> 00:19:24,680 Speaker 10: that was something that uh, you know, the Delaware Chancery 389 00:19:24,760 --> 00:19:27,720 Speaker 10: Court judge who throughout his pay package, uh you know, 390 00:19:27,760 --> 00:19:30,520 Speaker 10: really emphasized in her ruling last year when she said, 391 00:19:30,800 --> 00:19:33,560 Speaker 10: you know, he's very much in control of this company 392 00:19:33,560 --> 00:19:37,040 Speaker 10: and its board, and you know, on those grounds, uh 393 00:19:37,119 --> 00:19:41,080 Speaker 10: you know, throughout his compensation package, which has created, you know, 394 00:19:41,119 --> 00:19:44,760 Speaker 10: another mess and and you know, I think this, you know, 395 00:19:44,880 --> 00:19:50,080 Speaker 10: political uh endeavors, you know, only only complicates the board's 396 00:19:50,520 --> 00:19:53,960 Speaker 10: attempt to try and get him him compensated in a 397 00:19:54,119 --> 00:19:55,760 Speaker 10: in a way that he's going to be happy with 398 00:19:56,000 --> 00:19:56,400 Speaker 10: now quick. 399 00:19:56,520 --> 00:19:58,600 Speaker 4: Not too long ago, we heard Elamas saying, you know what, 400 00:19:58,680 --> 00:20:00,040 Speaker 4: I'm going to get back to it. I'm going to 401 00:20:00,080 --> 00:20:02,840 Speaker 4: focus on tessel. This was after the last earnings and 402 00:20:02,960 --> 00:20:05,760 Speaker 4: now we're seeing the shift, right, he's talking about this 403 00:20:05,920 --> 00:20:09,960 Speaker 4: America Party. I mean, is this something that investors should 404 00:20:09,960 --> 00:20:11,480 Speaker 4: be concerned about? These kind of going back on. 405 00:20:11,400 --> 00:20:12,000 Speaker 11: His word there? 406 00:20:12,520 --> 00:20:14,679 Speaker 10: Yeah, I mean I think you know some of the 407 00:20:15,320 --> 00:20:17,440 Speaker 10: it's it's not the only way in which he's sort 408 00:20:17,440 --> 00:20:22,480 Speaker 10: of undermined himself. And you know, potentially you made an 409 00:20:22,600 --> 00:20:26,520 Speaker 10: investors question the things that he's been telling them because 410 00:20:26,520 --> 00:20:29,720 Speaker 10: he also, you know, said to Bloomberg back in May 411 00:20:30,160 --> 00:20:33,359 Speaker 10: that our sales are turning around, right, and that was 412 00:20:33,400 --> 00:20:36,080 Speaker 10: not born out in the deliveries numbers that the company 413 00:20:36,119 --> 00:20:38,640 Speaker 10: reported last week. They had a thirteen percent year over 414 00:20:38,720 --> 00:20:42,440 Speaker 10: year decline in worldwide vehicle sales. That was almost bang 415 00:20:42,520 --> 00:20:45,560 Speaker 10: on what they posted for the first quarter. So, you know, 416 00:20:45,600 --> 00:20:48,639 Speaker 10: for him to say, you know that he thinks in 417 00:20:48,720 --> 00:20:52,320 Speaker 10: terms of political spending, he's he's done enough that he's 418 00:20:52,359 --> 00:20:54,040 Speaker 10: going to, you know, do a lot less of it 419 00:20:54,080 --> 00:20:56,600 Speaker 10: in the future. You know, that was what he said 420 00:20:56,680 --> 00:20:59,960 Speaker 10: in May, and this is is pretty much one hundred 421 00:21:00,080 --> 00:21:02,440 Speaker 10: any degrees different from what he was saying. 422 00:21:02,480 --> 00:21:06,560 Speaker 5: Then, all right, Thanks to Craig Trudell, Bloomberg Global Autos Editor. 423 00:21:06,480 --> 00:21:09,240 Speaker 2: We move next to the biotech space. President Donald Trump 424 00:21:09,240 --> 00:21:12,360 Speaker 2: recently signed a three point four trillion dollar budget bill 425 00:21:12,400 --> 00:21:15,119 Speaker 2: into law, which includes an extension of tax cuts. 426 00:21:15,320 --> 00:21:18,439 Speaker 5: The package represents a major political party victory for Trump. 427 00:21:18,440 --> 00:21:21,480 Speaker 5: But what does this mean for the pharmaceutical industry? 428 00:21:21,680 --> 00:21:23,879 Speaker 2: From more on this guest host Lisa Matteo and I 429 00:21:23,960 --> 00:21:26,840 Speaker 2: turned to Sam Fizzelli, Bloomberg Intelligence, Director of Research for 430 00:21:26,880 --> 00:21:30,680 Speaker 2: Global Industries and senior pharmaceuticals analyst. You first asked Sam 431 00:21:30,720 --> 00:21:33,040 Speaker 2: what this bill means for the farm companies. 432 00:21:33,480 --> 00:21:37,960 Speaker 12: So, the one big, beautiful bill had in it a 433 00:21:38,040 --> 00:21:41,439 Speaker 12: couple of things, many things, obviously, I can't remember how 434 00:21:41,480 --> 00:21:43,639 Speaker 12: many pages it was supposed to be. But for the 435 00:21:43,640 --> 00:21:45,960 Speaker 12: farmer industry, I'm going to focus on two things right now. 436 00:21:46,040 --> 00:21:48,640 Speaker 12: Right one is a good thing. So there is an 437 00:21:48,760 --> 00:21:53,560 Speaker 12: orphan drug change that impacts the IRA and actually impacts 438 00:21:53,560 --> 00:21:56,560 Speaker 12: some really big drugs. Here, what's an orphan drug. When 439 00:21:56,600 --> 00:21:59,240 Speaker 12: you develop a drug for a patient population that less 440 00:21:59,240 --> 00:22:02,040 Speaker 12: than two hundred thousand in the US, you called an 441 00:22:02,119 --> 00:22:05,600 Speaker 12: orphan drug. You get a special exemption. It really helps 442 00:22:05,640 --> 00:22:08,879 Speaker 12: you in terms of your duration of time that it 443 00:22:08,880 --> 00:22:12,960 Speaker 12: can be on the market et irrespective of your patent expiry. 444 00:22:13,400 --> 00:22:16,800 Speaker 12: It was all set up to help companies develop drugs 445 00:22:16,840 --> 00:22:20,040 Speaker 12: for these underserved markets. Two undred thousand. Okay, it's not small. 446 00:22:20,280 --> 00:22:23,000 Speaker 12: It's not big, but it's not that small. So it helped. 447 00:22:23,760 --> 00:22:26,160 Speaker 12: One of the big drugs that had this was Cultruda, 448 00:22:26,760 --> 00:22:29,080 Speaker 12: which is the biggest selling drug at the minute, and 449 00:22:29,119 --> 00:22:32,840 Speaker 12: that's for cancer from merg So when IRA came along, 450 00:22:33,600 --> 00:22:36,680 Speaker 12: it said, what we're going to do is say your 451 00:22:36,800 --> 00:22:42,000 Speaker 12: drug twenty fourteen approval Fortruder under orphan drug. Great, if 452 00:22:42,040 --> 00:22:44,560 Speaker 12: you're an ophen drug, you don't fall into IRA the 453 00:22:44,640 --> 00:22:47,159 Speaker 12: renegotiation of price and all that. But as soon as 454 00:22:47,200 --> 00:22:50,679 Speaker 12: you get another indication, then that clock starts from the 455 00:22:50,720 --> 00:22:53,200 Speaker 12: original data of approval. So if you had a drug 456 00:22:53,320 --> 00:22:55,480 Speaker 12: orphan drug in twenty fourteen and you get some other 457 00:22:55,520 --> 00:22:58,080 Speaker 12: indication in twenty twenty two. They date back the count 458 00:22:58,240 --> 00:23:01,520 Speaker 12: the clock counting to twenty fourteen. That was terrible. It 459 00:23:01,640 --> 00:23:06,200 Speaker 12: really means that nobody would want to do multi indication tests, etc. 460 00:23:06,640 --> 00:23:11,000 Speaker 12: So that's been changed once and Woven drug is you 461 00:23:11,000 --> 00:23:13,880 Speaker 12: can keep that date. And so what does that mean 462 00:23:13,880 --> 00:23:17,680 Speaker 12: for Ktruder from Merk one extra year before price negotiations 463 00:23:17,720 --> 00:23:22,480 Speaker 12: by Medicare, And that's a twenty thirty billion dollar drug 464 00:23:22,640 --> 00:23:26,119 Speaker 12: selling something like fifty percent of his revenues in the US. 465 00:23:26,240 --> 00:23:28,920 Speaker 12: That's a huge win for the industry, Sam. 466 00:23:28,960 --> 00:23:33,439 Speaker 2: Another big I guess component of this administration's policy has 467 00:23:33,440 --> 00:23:36,439 Speaker 2: been cutting funding or maybe threatening the cut funding for 468 00:23:36,640 --> 00:23:40,120 Speaker 2: research universities. And I have long experience with Duke University, 469 00:23:40,119 --> 00:23:44,920 Speaker 2: which is a huge medical center and research area. Here's 470 00:23:45,080 --> 00:23:47,440 Speaker 2: what's your industry saying about those potential cuts. 471 00:23:47,760 --> 00:23:51,000 Speaker 12: Yeah, the industry itself is relatively quiet, Paul, because what 472 00:23:51,040 --> 00:23:53,840 Speaker 12: they don't want to do is is I don't know 473 00:23:53,880 --> 00:23:56,480 Speaker 12: whether the right phrases here, shake the target, tiger's cage 474 00:23:56,560 --> 00:24:00,520 Speaker 12: or whatever, you know, rattle the whole set here. But 475 00:24:01,000 --> 00:24:03,960 Speaker 12: in reality there is a I think what I heard 476 00:24:04,000 --> 00:24:08,120 Speaker 12: the last number was a twelve percent increase in applications 477 00:24:08,160 --> 00:24:11,480 Speaker 12: to some of the top universities in Europe versus what 478 00:24:11,560 --> 00:24:15,719 Speaker 12: they were last year from the US. So that's folks 479 00:24:15,720 --> 00:24:18,160 Speaker 12: that would have gone to or wanted to go to Harvard, 480 00:24:18,320 --> 00:24:22,000 Speaker 12: they're now looking at Oxford, Cambridge, Sance, Pot etcetera. These 481 00:24:22,119 --> 00:24:25,119 Speaker 12: very brilliant universities across Europe. So there's that issue. But 482 00:24:25,200 --> 00:24:29,480 Speaker 12: remember in the OBBB, there's also another area where there 483 00:24:29,520 --> 00:24:32,920 Speaker 12: is a cup to Medicaid spending. That's eleven million Medicaid 484 00:24:33,000 --> 00:24:36,920 Speaker 12: covered folks that lose it. That will also have repercussions 485 00:24:36,920 --> 00:24:40,600 Speaker 12: for pharma companies, healthcare in general. And of course you 486 00:24:40,640 --> 00:24:43,400 Speaker 12: go to a hospital you don't have insurance, they're going 487 00:24:43,440 --> 00:24:45,400 Speaker 12: to treat you. Who's going to pay for that. It's 488 00:24:45,440 --> 00:24:49,000 Speaker 12: going to go on your premium? That's a tax on you. 489 00:24:49,000 --> 00:24:49,159 Speaker 6: You know. 490 00:24:49,640 --> 00:24:52,120 Speaker 12: Let's see how this all pans out. But not good 491 00:24:52,119 --> 00:24:52,640 Speaker 12: there either. 492 00:24:53,000 --> 00:24:55,720 Speaker 4: All right, Sam, I want to talk about the Medicaid cuts. 493 00:24:55,840 --> 00:24:57,320 Speaker 4: I'm going to kind of put you on the spot there, 494 00:24:57,359 --> 00:25:01,320 Speaker 4: but it's going to affect insurers who focus on Medicaid. 495 00:25:01,320 --> 00:25:03,840 Speaker 4: They might lose customers. So what does this mean for like, 496 00:25:03,920 --> 00:25:07,240 Speaker 4: let's say Elevant's Health, United Health companies that do deal 497 00:25:07,280 --> 00:25:07,560 Speaker 4: with this. 498 00:25:08,080 --> 00:25:10,840 Speaker 12: Yeah, So They are clearly under pressure and there's a 499 00:25:10,920 --> 00:25:14,080 Speaker 12: risk for them, and one of the issues is exactly 500 00:25:14,080 --> 00:25:18,400 Speaker 12: what you just said. You know, this is completely upsetting 501 00:25:18,400 --> 00:25:21,639 Speaker 12: the card here for the insurance in general. The point 502 00:25:21,760 --> 00:25:24,959 Speaker 12: is I'm not convinced that they will necessarily lose out. 503 00:25:25,040 --> 00:25:28,800 Speaker 12: I mean, we have dedicated expert analysts who cover the sector, 504 00:25:28,840 --> 00:25:32,040 Speaker 12: et cetera. But usually what's going to happen is that 505 00:25:32,080 --> 00:25:34,240 Speaker 12: if they're not making money elsewhere, they're going to try 506 00:25:34,240 --> 00:25:36,640 Speaker 12: and raise premium somewhere else, which is what I said 507 00:25:36,640 --> 00:25:37,119 Speaker 12: to start with. 508 00:25:37,520 --> 00:25:40,920 Speaker 5: All right, Thanks to Sam Fazzelli, Bloomberg Intelligence, the director 509 00:25:40,960 --> 00:25:45,560 Speaker 5: of research for Global Industries and Senior Pharmaceuticals, and just ahead, 510 00:25:46,000 --> 00:25:49,760 Speaker 5: look at Bloomberg Intelligences ten companies to watch in the 511 00:25:49,840 --> 00:25:50,480 Speaker 5: third quarter. 512 00:25:50,760 --> 00:25:53,720 Speaker 2: You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in 513 00:25:53,760 --> 00:25:56,200 Speaker 2: depth research and data on two thousand companies and one 514 00:25:56,280 --> 00:25:59,239 Speaker 2: hundred and thirty industries. You can access Bloomberg Intelligence via 515 00:25:59,320 --> 00:26:00,439 Speaker 2: b I go on the terminal. 516 00:26:00,480 --> 00:26:03,800 Speaker 5: I'm Paul Sweeney and I'm John Tucker. This is Bloomberg. 517 00:26:11,680 --> 00:26:15,399 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 518 00:26:15,480 --> 00:26:18,560 Speaker 1: weekdays at ten am Eastern on Apple cocklay and Android 519 00:26:18,560 --> 00:26:21,880 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 520 00:26:21,920 --> 00:26:25,040 Speaker 1: you get your podcasts, or watch us live on YouTube. 521 00:26:25,880 --> 00:26:28,240 Speaker 5: I'm Paul Sweeney and I John Tucker filling in on 522 00:26:28,280 --> 00:26:32,640 Speaker 5: Bloomberg Intelligence. We move now to research from Bloomberg Intelligence 523 00:26:32,720 --> 00:26:37,919 Speaker 5: titled Banking Booze and Double Sevens wheels Ten Companies to 524 00:26:37,960 --> 00:26:38,840 Speaker 5: watch right Now. 525 00:26:39,119 --> 00:26:41,439 Speaker 2: It discusses ten companies to look at a four in 526 00:26:41,480 --> 00:26:44,200 Speaker 2: the third quarter of twenty twenty five. For more, guest 527 00:26:44,200 --> 00:26:46,280 Speaker 2: host Norma, Linda, and I were joined by Tim Craig, 528 00:26:46,320 --> 00:26:50,000 Speaker 2: head Bloomberg Intelligence, Chief Content Officer. We first asked him 529 00:26:50,000 --> 00:26:52,320 Speaker 2: to break down his recent list of ten companies. 530 00:26:52,800 --> 00:26:55,760 Speaker 9: These ten ideas are all part of a broader list 531 00:26:55,840 --> 00:26:58,520 Speaker 9: of what we call focus ideas. Focus ideas are where 532 00:26:58,520 --> 00:27:03,440 Speaker 9: are analysts around the cross regions cross sectors have high 533 00:27:03,440 --> 00:27:08,679 Speaker 9: conviction fundamental points of view that they think are different 534 00:27:08,680 --> 00:27:12,240 Speaker 9: from what the market thinks anti consensus, and importantly, they're 535 00:27:12,280 --> 00:27:15,600 Speaker 9: catalysts coming up that we think can change market perceptions. 536 00:27:15,960 --> 00:27:19,840 Speaker 9: And these ten all have important catalysts coming up during 537 00:27:19,960 --> 00:27:24,160 Speaker 9: the third quarter. And just to put it out there, 538 00:27:24,280 --> 00:27:26,800 Speaker 9: you can see all of these focus ideas on bi 539 00:27:27,080 --> 00:27:28,680 Speaker 9: focus on the terminal. 540 00:27:28,720 --> 00:27:30,760 Speaker 2: Tim, What I like about these ideas, you know, because 541 00:27:30,760 --> 00:27:34,639 Speaker 2: people are always looking for ideas long and short. You 542 00:27:34,680 --> 00:27:37,439 Speaker 2: guys have the ideas. And what I really like that 543 00:27:37,520 --> 00:27:40,280 Speaker 2: this research format is you have the triggers, what's going 544 00:27:40,359 --> 00:27:43,040 Speaker 2: to make what has to happen in order for this 545 00:27:43,160 --> 00:27:46,360 Speaker 2: call to work on a particular stock, Aston Martin. I'm 546 00:27:46,359 --> 00:27:49,639 Speaker 2: asking for Matt Miller, what's the call here on Aston Martin? 547 00:27:50,760 --> 00:27:54,040 Speaker 9: So the call on Acid Martin. As much as I 548 00:27:54,240 --> 00:27:57,040 Speaker 9: like the cars, and obviously this is where the double 549 00:27:57,040 --> 00:28:02,680 Speaker 9: O seven reference comes from, They've got a really interesting 550 00:28:02,800 --> 00:28:08,280 Speaker 9: new lineup of vehicles, but they're short on V twelves 551 00:28:08,359 --> 00:28:12,520 Speaker 9: and notwithstanding the world of evs and all that sort 552 00:28:12,560 --> 00:28:15,399 Speaker 9: of stuff, the high end V twelves from Ferrari and 553 00:28:15,440 --> 00:28:20,119 Speaker 9: Lamborghini are hot. And you look at the inventory levels 554 00:28:20,160 --> 00:28:23,840 Speaker 9: of Aston Martin on the lots, they're too high. We 555 00:28:23,920 --> 00:28:27,720 Speaker 9: think that there's a capital infusion that's likely needed in 556 00:28:27,800 --> 00:28:31,320 Speaker 9: coming months, and so we actually have a cautious view 557 00:28:32,359 --> 00:28:35,120 Speaker 9: on Aston Martin from that perspective, Tim, you. 558 00:28:35,119 --> 00:28:37,280 Speaker 7: Are always putting out super interesting stuff. I mean, we 559 00:28:37,280 --> 00:28:39,480 Speaker 7: had fifty companies to watch in January and then we 560 00:28:39,520 --> 00:28:41,800 Speaker 7: have the quarterly update in April and then of course 561 00:28:41,880 --> 00:28:45,160 Speaker 7: now this story that's out loving the graphics here. How 562 00:28:45,200 --> 00:28:46,400 Speaker 7: long did it take to put us together? 563 00:28:48,760 --> 00:28:53,400 Speaker 9: Well, it's an ongoing process of working with our analysts 564 00:28:53,440 --> 00:28:57,480 Speaker 9: in terms of where do we see these ideas coming from, 565 00:28:57,680 --> 00:29:00,200 Speaker 9: and then you know, our friends in business weeek like 566 00:29:00,240 --> 00:29:03,640 Speaker 9: to pull together the graphics on these things. It is 567 00:29:03,680 --> 00:29:07,960 Speaker 9: a It is a good looking piece on the on 568 00:29:08,000 --> 00:29:09,520 Speaker 9: Bloomberg dot Com. 569 00:29:10,520 --> 00:29:14,280 Speaker 2: Booze Dagio. What's the story there, Yeah. 570 00:29:14,480 --> 00:29:17,280 Speaker 9: The Agio it ties in a little bit with a 571 00:29:17,320 --> 00:29:20,800 Speaker 9: couple of ideas here. You know, I mentioned Aston Martin. 572 00:29:20,840 --> 00:29:23,440 Speaker 9: That's obviously a high end consumer idea. And even though 573 00:29:23,440 --> 00:29:27,400 Speaker 9: we're concerned about Aston Martin specifically, the high end luxury 574 00:29:27,520 --> 00:29:32,800 Speaker 9: vehicle market is good. Similarly with the Agio high end, 575 00:29:33,000 --> 00:29:35,280 Speaker 9: high end, Booze high end spirits. They are the world's 576 00:29:35,360 --> 00:29:40,080 Speaker 9: largest spirits manufacturer, is doing relatively well. You know, their 577 00:29:40,080 --> 00:29:44,200 Speaker 9: recent sales trends have been robust. We think that's going 578 00:29:44,280 --> 00:29:48,080 Speaker 9: to continue to show through. There has been concern about 579 00:29:48,240 --> 00:29:51,840 Speaker 9: things like tariffs and what could be the impact, especially 580 00:29:51,840 --> 00:29:55,640 Speaker 9: from a US consumer base. We're less concerned and we're 581 00:29:55,640 --> 00:30:01,240 Speaker 9: optimistic another consumer higher end idea. You guys, know and 582 00:30:01,360 --> 00:30:04,760 Speaker 9: love in the States is Dick's Sporting Goods. You know, 583 00:30:04,840 --> 00:30:09,120 Speaker 9: this is a classic good old consumer's growth story where 584 00:30:09,760 --> 00:30:12,040 Speaker 9: not only do you know the store, but you might 585 00:30:12,040 --> 00:30:16,160 Speaker 9: have been in one of their new bigger formats where 586 00:30:16,200 --> 00:30:20,200 Speaker 9: they have you know, that much more kit. Their sales 587 00:30:20,280 --> 00:30:23,840 Speaker 9: trends continue to be quite good despite concerns about what 588 00:30:23,880 --> 00:30:26,680 Speaker 9: are tear's going to mean for consumer here or there? 589 00:30:26,760 --> 00:30:29,719 Speaker 9: So you know those are all those are all consumer ideas. 590 00:30:29,760 --> 00:30:31,440 Speaker 9: There's certainly a common thread there. 591 00:30:32,680 --> 00:30:35,040 Speaker 7: You mentioned Dixon. I'm looking at easy Jet, which of 592 00:30:35,040 --> 00:30:38,239 Speaker 7: course we know is a low cost British airline, and 593 00:30:38,280 --> 00:30:40,040 Speaker 7: we have a sunny outlook here, But what do you 594 00:30:40,080 --> 00:30:44,240 Speaker 7: think will be the most surprising call here for readers. 595 00:30:44,560 --> 00:30:48,000 Speaker 9: Yeah, it's interesting in this instance. Obviously this is not 596 00:30:48,080 --> 00:30:52,479 Speaker 9: the high end consumer. This is everyday consumer. Is that 597 00:30:54,320 --> 00:30:57,200 Speaker 9: this isn't so much about the demand, which actually demand 598 00:30:57,240 --> 00:31:00,920 Speaker 9: for travel and experience continues to be pretty good. This 599 00:31:00,960 --> 00:31:03,880 Speaker 9: is more of a story on an operational basis. They're 600 00:31:03,960 --> 00:31:09,440 Speaker 9: replacing a lot of older planes with newer planes that 601 00:31:09,520 --> 00:31:12,400 Speaker 9: have bigger capacity and much more fuel efficient, so this 602 00:31:12,480 --> 00:31:17,360 Speaker 9: is a margin story. Easy Jet has historically lagged behind 603 00:31:17,520 --> 00:31:20,800 Speaker 9: Ryanair at the other low cost carrier here in Europe. 604 00:31:21,120 --> 00:31:23,640 Speaker 9: We think that that's set to change all right. 605 00:31:23,640 --> 00:31:28,240 Speaker 5: Thanks to Tim craig Head, the Bloomberg Intelligence Chief Content Officer. 606 00:31:28,000 --> 00:31:30,080 Speaker 2: We moved next to the digital media space. 607 00:31:30,560 --> 00:31:34,440 Speaker 5: In late May, the TV advertising platform Mountain had its 608 00:31:34,520 --> 00:31:37,160 Speaker 5: initial public offering, with shares trading on the New York 609 00:31:37,160 --> 00:31:40,640 Speaker 5: Stock Exchange. It's under the ticker MNTN. 610 00:31:41,080 --> 00:31:43,280 Speaker 2: For more on this recent IPO and the latest in 611 00:31:43,320 --> 00:31:45,719 Speaker 2: the streaming business, guest host Lisa Matteo and I were 612 00:31:45,760 --> 00:31:48,760 Speaker 2: joined by Mountain President and CEO Mark Douglas. The first 613 00:31:48,800 --> 00:31:51,400 Speaker 2: asked Mark to talk to us about going public. 614 00:31:52,160 --> 00:31:54,360 Speaker 11: It was about six weeks ago, and I'll tell you, 615 00:31:54,400 --> 00:31:57,520 Speaker 11: six weeks ago it was not a given that you're 616 00:31:57,600 --> 00:32:01,800 Speaker 11: going to take a company public is two years of planning, 617 00:32:02,040 --> 00:32:07,120 Speaker 11: but seemed extremely last man. I'm talking hours before we 618 00:32:07,200 --> 00:32:11,000 Speaker 11: started the road show. We were still with bankers Morgan, Stanley, 619 00:32:11,360 --> 00:32:14,960 Speaker 11: City Avercurty siding on the timing, and we were like, 620 00:32:15,080 --> 00:32:16,880 Speaker 11: are there is there going to be a jobs report 621 00:32:16,920 --> 00:32:17,320 Speaker 11: next week? 622 00:32:17,600 --> 00:32:18,600 Speaker 5: Is there going to be an inflat? 623 00:32:18,680 --> 00:32:18,760 Speaker 3: Like? 624 00:32:18,760 --> 00:32:22,240 Speaker 11: We just needed a clean window at time, and we 625 00:32:22,360 --> 00:32:24,720 Speaker 11: got it done and I think it helped a lot 626 00:32:24,760 --> 00:32:27,400 Speaker 11: of other a few other companies you know, kind of 627 00:32:27,880 --> 00:32:29,960 Speaker 11: follow us. Like I like, I grew up in New 628 00:32:30,040 --> 00:32:32,560 Speaker 11: York City. You know how New Yorkers will like throw 629 00:32:32,640 --> 00:32:36,480 Speaker 11: their arm in between the elevator doors, like like to 630 00:32:36,560 --> 00:32:39,200 Speaker 11: keep the elevator open. I feel like mounted that to 631 00:32:39,240 --> 00:32:43,040 Speaker 11: the IPO market. We just threw ourselves between the doors, 632 00:32:43,160 --> 00:32:45,760 Speaker 11: kept it open, and a few companies have followed us. 633 00:32:45,840 --> 00:32:46,360 Speaker 5: Good stuff. 634 00:32:46,520 --> 00:32:47,840 Speaker 4: I did that the other day. It didn't work for 635 00:32:47,880 --> 00:32:50,480 Speaker 4: me when I threw the Yeah. 636 00:32:50,320 --> 00:32:52,720 Speaker 11: You want to get your arm back by the time 637 00:32:52,760 --> 00:32:54,640 Speaker 11: you get to the other where you're going. 638 00:32:55,040 --> 00:32:57,680 Speaker 4: You guys do the ad business right, And we talk 639 00:32:57,760 --> 00:33:00,760 Speaker 4: a lot about AI. How it's affecting, you know, companies 640 00:33:01,000 --> 00:33:04,280 Speaker 4: and workers and just changing the corporate workspace. How is 641 00:33:04,320 --> 00:33:06,600 Speaker 4: it affecting the ad business. 642 00:33:06,400 --> 00:33:09,680 Speaker 11: It's having a really big impact and kind of two ways. 643 00:33:09,760 --> 00:33:13,120 Speaker 11: One is I think as a company you have to 644 00:33:13,240 --> 00:33:16,720 Speaker 11: be doing everything you can to leverage AI. So it's 645 00:33:16,760 --> 00:33:20,680 Speaker 11: having a big impact on our sales, our marketing. Things 646 00:33:20,800 --> 00:33:24,040 Speaker 11: like three quarters of our revenue now comes from inbound leads, 647 00:33:24,160 --> 00:33:27,880 Speaker 11: partially because we're leveraging AI technology and make our marketing 648 00:33:27,920 --> 00:33:32,520 Speaker 11: more efficient. We're doing the same thing for our customers sales, 649 00:33:33,080 --> 00:33:36,160 Speaker 11: our sales headcount is very stable again because we're getting 650 00:33:36,200 --> 00:33:40,920 Speaker 11: more productivity. But then it's also affecting the business. I mean, ultimately, 651 00:33:40,920 --> 00:33:44,200 Speaker 11: our customers are looking for their next customer, so they're 652 00:33:44,240 --> 00:33:47,600 Speaker 11: using Mountain on streaming TV, They're using Matter on social, 653 00:33:47,960 --> 00:33:51,600 Speaker 11: Google on paid search in order to leverage digital marketing 654 00:33:52,000 --> 00:33:55,800 Speaker 11: to pring, you know, put to promote their products or 655 00:33:55,880 --> 00:33:59,520 Speaker 11: meeting our customers products. And we're using AI technology to 656 00:33:59,560 --> 00:34:02,960 Speaker 11: help identify who their target customers. So those TV ads 657 00:34:03,240 --> 00:34:08,759 Speaker 11: are super targeted specifically towards you because you show behavior 658 00:34:08,960 --> 00:34:11,560 Speaker 11: that this might be a product you're interested in. So 659 00:34:11,640 --> 00:34:14,320 Speaker 11: it's AI across the business, and I'll tell you it's 660 00:34:14,640 --> 00:34:17,000 Speaker 11: I mean, if you're not doing that, you're losing right now. 661 00:34:17,040 --> 00:34:19,400 Speaker 11: I mean, it's it's the intensity of it is pretty 662 00:34:19,560 --> 00:34:21,600 Speaker 11: pretty is quite up there. 663 00:34:21,920 --> 00:34:24,000 Speaker 2: Talk about where we are in this migration of ad 664 00:34:24,040 --> 00:34:28,360 Speaker 2: dollars away from what i'll call traditional broadcasting cable television 665 00:34:28,360 --> 00:34:32,080 Speaker 2: to some of the more streaming platforms out there. It's 666 00:34:32,120 --> 00:34:34,360 Speaker 2: just been a sea change. Where are we in that 667 00:34:34,480 --> 00:34:35,000 Speaker 2: sea change? 668 00:34:35,000 --> 00:34:37,400 Speaker 11: Well, pretty far along if you go in the companies 669 00:34:37,480 --> 00:34:43,359 Speaker 11: like Disney or Comcasts, NBC, Universal, Paramount. I was just 670 00:34:43,360 --> 00:34:47,439 Speaker 11: in can Can Lion literally three weeks ago, which is. 671 00:34:47,400 --> 00:34:53,759 Speaker 2: Potentially Lisa the biggest boon boggle on the several times, 672 00:34:53,760 --> 00:34:54,560 Speaker 2: and I can say. 673 00:34:54,360 --> 00:34:58,200 Speaker 11: That it's it's not terrible to be in the South 674 00:34:58,239 --> 00:35:00,279 Speaker 11: of France while you're at a trade show. I would 675 00:35:00,280 --> 00:35:01,040 Speaker 11: agree with that. 676 00:35:01,680 --> 00:35:06,200 Speaker 2: By the way, Rose Krispies in the morning, well we. 677 00:35:07,200 --> 00:35:10,120 Speaker 11: Had a billboard up that instead of saying Rose all day, 678 00:35:10,160 --> 00:35:13,120 Speaker 11: said row As all day, return on ad spend all day. 679 00:35:15,440 --> 00:35:17,759 Speaker 11: But I was just there meeting. I had a lot 680 00:35:17,800 --> 00:35:20,719 Speaker 11: of meetings with some of these the biggest media companies, 681 00:35:20,920 --> 00:35:24,680 Speaker 11: and they're they're only talk about streaming. It's it's like 682 00:35:25,200 --> 00:35:28,040 Speaker 11: they're streaming first in terms of the way they think 683 00:35:28,080 --> 00:35:32,439 Speaker 11: about their businesses. I'm talking again like a Disney and 684 00:35:32,560 --> 00:35:36,600 Speaker 11: so the customers meaning at that event, the biggest brands 685 00:35:36,640 --> 00:35:39,799 Speaker 11: traditionally now we're focused on the smaller brands, small mid 686 00:35:39,840 --> 00:35:43,919 Speaker 11: sized businesses. Streaming is is their focus, and I think 687 00:35:44,360 --> 00:35:47,239 Speaker 11: cable television I don't think they see a distinction. They 688 00:35:47,280 --> 00:35:49,280 Speaker 11: just see it as we're going to meet people wherever 689 00:35:49,320 --> 00:35:52,640 Speaker 11: they are, and where they are now is predominantly streaming. 690 00:35:52,640 --> 00:35:54,880 Speaker 11: But if they're still on cable, great, we'll meet them 691 00:35:54,920 --> 00:35:57,839 Speaker 11: there also. But it's a streaming world. 692 00:35:57,880 --> 00:36:01,759 Speaker 4: It's kind of the I had cable and the only 693 00:36:01,800 --> 00:36:04,080 Speaker 4: reason I have it is because my husband wants to 694 00:36:04,080 --> 00:36:08,040 Speaker 4: watch sports. Yeah, right, so where does streaming stand with sports? 695 00:36:08,080 --> 00:36:10,840 Speaker 4: Because we're hearing so many different things, right the ESPN 696 00:36:11,000 --> 00:36:13,640 Speaker 4: MLB contract and what's happening with that? You know, could 697 00:36:13,640 --> 00:36:15,799 Speaker 4: he go to streaming? Like what could that be a 698 00:36:15,800 --> 00:36:16,799 Speaker 4: big drawn. 699 00:36:16,480 --> 00:36:17,280 Speaker 2: To help for streaming. 700 00:36:17,480 --> 00:36:21,160 Speaker 11: Yeah, So the year started those same kind of conversations 701 00:36:21,239 --> 00:36:24,720 Speaker 11: with live sports. So last year live sports on streaming 702 00:36:24,840 --> 00:36:28,919 Speaker 11: was very nascent and this year it's it's that's kind 703 00:36:28,920 --> 00:36:31,640 Speaker 11: of the focus of a lot of these companies. So 704 00:36:31,719 --> 00:36:34,560 Speaker 11: I think you look twelve months out, there won't be 705 00:36:34,840 --> 00:36:39,440 Speaker 11: any distinguishing aspect. If you want to watch NBA Finals, 706 00:36:39,520 --> 00:36:42,760 Speaker 11: it's available streaming live. It will be available cable live. 707 00:36:42,840 --> 00:36:47,920 Speaker 11: That won't be any differentiating factor except one. The brands 708 00:36:48,000 --> 00:36:51,320 Speaker 11: will prefer streaming because they get to be very targeted 709 00:36:51,360 --> 00:36:54,120 Speaker 11: and who they deliver the ads to, and the more 710 00:36:54,160 --> 00:36:57,439 Speaker 11: targeted they are, the more efficient that spend is for them. 711 00:36:57,520 --> 00:37:02,160 Speaker 11: So the brands prefer streaming costs of the digital targeting capabilities. 712 00:37:03,120 --> 00:37:05,759 Speaker 11: The consumer, you know, you should prefer whatever you like 713 00:37:05,920 --> 00:37:09,080 Speaker 11: and whatever is easiest to turn on, and what we 714 00:37:09,160 --> 00:37:10,960 Speaker 11: want to happen is we just want to see everyone 715 00:37:11,000 --> 00:37:14,800 Speaker 11: watching TV. However, you like to conxhibit. 716 00:37:14,360 --> 00:37:16,839 Speaker 2: All right, the NFL. Are we going to see a 717 00:37:16,840 --> 00:37:21,200 Speaker 2: big Sunday package? Go to the NFL on a streaming Absolutely, 718 00:37:21,320 --> 00:37:23,200 Speaker 2: and really because that's gonna be a sea change. 719 00:37:23,239 --> 00:37:26,320 Speaker 11: Well, the other thing is is when you bring in streaming, 720 00:37:26,360 --> 00:37:29,319 Speaker 11: you bring in Amazon to bid on it. You bring 721 00:37:29,360 --> 00:37:33,000 Speaker 11: in Netflix, you bring and these are some of the 722 00:37:33,160 --> 00:37:37,040 Speaker 11: literal I mean, Netflix is worth over half a trillion dollars. 723 00:37:37,600 --> 00:37:40,239 Speaker 11: You know, I don't know Amazon's current market cap. I 724 00:37:40,239 --> 00:37:43,760 Speaker 11: assume it's way up there. And so if you want 725 00:37:43,840 --> 00:37:46,520 Speaker 11: the highest level competitions and media company, you're going to 726 00:37:46,600 --> 00:37:48,279 Speaker 11: go streaming because that's where that money is. 727 00:37:48,440 --> 00:37:50,759 Speaker 2: Yeah, I'm just gonna Netflix. I mean, another great year. 728 00:37:52,480 --> 00:37:55,800 Speaker 2: There's Disney just thirty seconds of Is Disney the number 729 00:37:55,800 --> 00:37:58,560 Speaker 2: two streamer out there? And is the room for three, four, 730 00:37:58,600 --> 00:37:59,080 Speaker 2: five six? 731 00:37:59,440 --> 00:38:02,719 Speaker 11: The Disney, I do perceive. I think both data and 732 00:38:02,800 --> 00:38:06,200 Speaker 11: perception is number two behind Netflix. By the way, they 733 00:38:06,520 --> 00:38:09,000 Speaker 11: if you talk to them, they're not They're not like 734 00:38:09,320 --> 00:38:12,520 Speaker 11: happy and settled. They're a number two. They're definitely going 735 00:38:12,560 --> 00:38:15,960 Speaker 11: for number one. I think there's room for three and 736 00:38:16,040 --> 00:38:18,879 Speaker 11: a four, but there's clearly going to be a big 737 00:38:18,920 --> 00:38:21,680 Speaker 11: consolidation for who takes that spot, all. 738 00:38:21,680 --> 00:38:25,040 Speaker 5: Right, Thanks to Mountain President and CEO Mark Douglas. 739 00:38:25,640 --> 00:38:30,360 Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify, 740 00:38:30,520 --> 00:38:34,000 Speaker 1: and anywhere else you get your podcasts. Listen live each 741 00:38:34,040 --> 00:38:37,800 Speaker 1: weekday ten am to noon Eastern on Bloomberg dot com, 742 00:38:37,920 --> 00:38:41,440 Speaker 1: the iHeartRadio app tune In, and the Bloomberg Business app. 743 00:38:41,880 --> 00:38:44,800 Speaker 1: You can also watch us live every weekday on YouTube 744 00:38:45,200 --> 00:38:47,440 Speaker 1: and always on the Bloomberg terminal