WEBVTT - BI Weekend: New Disney CEO, AMD, PayPal Earnings 0:00:00.240 --> 0:00:11.760 Bloomberg Audio, Studios, podcasts, radio news. This is Bloomberg Intelligence 0:00:11.840 --> 0:00:13.920 with Scarletfoo and Paul Sweeney. 0:00:14.000 --> 0:00:16.120 How do you think the FED is looking at tariffs? 0:00:16.239 --> 0:00:17.440 The uncertainty of terriffs. 0:00:17.560 --> 0:00:20.000 Let's take a look at the sectors and how they performed. 0:00:20.040 --> 0:00:23.040 A lot of investors getting whipsaled every day by news events. 0:00:22.800 --> 0:00:26.520 Breaking market headlines and corporate news from across the globe. 0:00:26.560 --> 0:00:29.160 Could we see a market disruption of market events? 0:00:29.240 --> 0:00:31.240 So people just too exuberant out there? 0:00:31.400 --> 0:00:33.920 You see some so called low quality stocks driving this 0:00:34.040 --> 0:00:34.800 short term rally. 0:00:34.840 --> 0:00:39.640 Bloomberg Intelligence with Scarletfoo and Paul Sweeney on Bloomberg Radio, 0:00:39.800 --> 0:00:41.720 YouTube and Bloomberg Originals. 0:00:42.520 --> 0:00:44.760 On today's Bloomberg Intelligence Show, we dig inside the big 0:00:44.800 --> 0:00:47.120 business story is impacting Wall Street and the global markets. 0:00:47.320 --> 0:00:49.560 Each and every week, we provide in depth research and 0:00:49.640 --> 0:00:51.479 data on some of the two thousand companies and one 0:00:51.560 --> 0:00:54.080 hundred and thirty industries are analysts cover worldwide. 0:00:54.120 --> 0:00:56.440 Today, we'll look at why Advanced micro Devices suffered its 0:00:56.440 --> 0:00:58.440 worst stock decline in nearly nine years. 0:00:58.240 --> 0:01:00.240 Plus to look at why PayPal shares ex He's the 0:01:00.240 --> 0:01:02.160 biggest interdate drop in more than four years. 0:01:02.360 --> 0:01:04.000 At first, we begin with some news at the media 0:01:04.000 --> 0:01:05.560 and entertainment giant Walt. 0:01:05.240 --> 0:01:08.720 Disney, and that's because Disney announced Josh Tomorrow will succeed 0:01:08.760 --> 0:01:10.080 Bob Iger as CEO. 0:01:10.440 --> 0:01:12.959 Tomorrow, a twenty eight year vetteran of Disney, was chosen 0:01:13.000 --> 0:01:15.840 from among several internal candidates to lead the company at 0:01:15.880 --> 0:01:18.960 a critical time as it transitions from traditional TV viewing 0:01:19.080 --> 0:01:19.920 to the streaming era. 0:01:20.200 --> 0:01:22.200 Iiger will stay on the board and serve as a 0:01:22.200 --> 0:01:25.360 senior advisor until he retires on December thirty. First, we 0:01:25.360 --> 0:01:28.160 were joined by Geithrong and Aten Bloomberg, intelligence analyst on 0:01:28.319 --> 0:01:29.039 US Media. 0:01:29.120 --> 0:01:32.280 Well first asked Githa about this succession plan and how 0:01:32.280 --> 0:01:34.679 it might differ from previous plans. 0:01:34.959 --> 0:01:37.640 Yeah, I think it was a very different time. March 0:01:37.680 --> 0:01:41.959 twenty twenty, everything closes down, including you know, Disney parks 0:01:42.480 --> 0:01:45.440 because of the pandemic. So it was kind of unfortunate. 0:01:45.480 --> 0:01:48.400 The timing was all wrong, I would say for Bob Japek. 0:01:49.360 --> 0:01:53.680 And what happened then is, of course movies were shut down, 0:01:54.040 --> 0:01:56.240 a big part of Disney's business, movies as well as 0:01:56.280 --> 0:01:59.200 the parks again. But then what really kind of shot 0:01:59.240 --> 0:02:01.720 into prominence at that point was the streaming business. A 0:02:01.800 --> 0:02:05.160 business that Bob Chapik was not really very familiar with, 0:02:06.080 --> 0:02:09.040 and while he did have some experience in content, obviously 0:02:09.040 --> 0:02:11.359 it was not enough, and we had a whole bunch 0:02:11.400 --> 0:02:16.040 of different missteps with the content part of the business, 0:02:16.440 --> 0:02:19.280 which kind of led to the whole you know mess 0:02:19.320 --> 0:02:23.079 that we saw, you know follow I think this time 0:02:23.480 --> 0:02:25.639 we're in a very very different position. I think at 0:02:25.639 --> 0:02:27.560 that point Disney was still kind of trying to figure 0:02:27.560 --> 0:02:29.400 out what it really was. Was it a TV company, 0:02:29.520 --> 0:02:31.160 was it a studio, was it a theme park company? 0:02:31.240 --> 0:02:33.320 Or was it really a streaming player? And I think 0:02:33.360 --> 0:02:36.240 now the pieces have kind of fallen in place. We 0:02:36.280 --> 0:02:39.120 are on much more steady ground. I would say, you know, 0:02:39.160 --> 0:02:42.119 they have their clear mandates, whether it isn't streaming, whether 0:02:42.200 --> 0:02:45.720 it's in studio, you know, the clear What has really 0:02:45.760 --> 0:02:49.040 emerged clearly right now, Scarlett, is that parks is the 0:02:49.080 --> 0:02:52.079 main core growth engine of the company, and I think 0:02:52.080 --> 0:02:55.000 that is reflected in this choice with Josh Tomorrow. 0:02:54.960 --> 0:02:55.400 So Keithan. 0:02:55.440 --> 0:02:59.239 Josh is a twenty eight year veteran of Disney running 0:02:59.240 --> 0:03:01.840 the parks, But of course the other big part of 0:03:01.880 --> 0:03:07.120 the company is it's you know, entertainment business. Dana Walden, 0:03:07.680 --> 0:03:10.880 who runs the big part of that business, great reputation 0:03:10.960 --> 0:03:14.600 in Hollywood. It's important to keep her at the Walt 0:03:14.680 --> 0:03:17.480 Disney Company. Are they going to be able to do that? 0:03:18.960 --> 0:03:21.360 I absolutely think so. So, you know, they obviously this 0:03:21.480 --> 0:03:23.799 was a very clever move by the board to kind 0:03:23.840 --> 0:03:27.200 of create this new role for Dana Walden, make her 0:03:27.240 --> 0:03:30.320 the president and the chief creative officer. They've never had 0:03:30.360 --> 0:03:33.760 this post before, but they specifically created this one for 0:03:33.840 --> 0:03:37.320 Dana Walden, so that I think really kind of I 0:03:37.320 --> 0:03:39.800 think dispels a lot of fears about what would happen 0:03:39.880 --> 0:03:43.400 from a creative perspective. You know, last time, this was 0:03:43.440 --> 0:03:46.080 the same problem that you know, many investors raised when 0:03:46.120 --> 0:03:49.040 Bob Chapek became CEO. So having her there in the 0:03:49.040 --> 0:03:53.000 creative role, I think definitely plays very well with Hollywood, 0:03:53.000 --> 0:03:55.640 with the creative community, and ensures that, you know, Disney 0:03:55.680 --> 0:03:58.680 will still have a top tier content coming to its 0:03:58.720 --> 0:04:01.000 streaming platforms for the foreseeable future. 0:04:02.640 --> 0:04:06.760 So Josh Tomorrow takes the job on March eighteenth, that's 0:04:06.800 --> 0:04:09.760 when the succession is effective. And we talked about how 0:04:09.840 --> 0:04:12.680 yesterday Disney came out with a forecast that was fairly tepid, 0:04:12.760 --> 0:04:14.960 And one way of looking at that is it kind 0:04:14.960 --> 0:04:17.960 of you know, clears the deck. Lets him start off 0:04:17.960 --> 0:04:20.640 with the clean say and set expectations and kind of 0:04:20.680 --> 0:04:23.440 manage it for investors a way that he sees fit. 0:04:23.839 --> 0:04:27.679 At what point does he own everything that happens to Disney. 0:04:29.040 --> 0:04:30.919 So actually a lot of the things that we're seeing 0:04:31.000 --> 0:04:35.880 right now with the parks has been under Josh Tomorrow's watch. Remember, 0:04:35.960 --> 0:04:40.920 once Bob Chapek was promoted to the CEO position, Josh 0:04:41.000 --> 0:04:45.000 Tomorrow assumed the role of chief of the Parks, and 0:04:45.040 --> 0:04:47.359 so all of the different initiatives that we've seen, you know, 0:04:47.400 --> 0:04:49.840 whether it's Lightning Lan and whether it's Genie, whether it's 0:04:49.880 --> 0:04:53.479 the sixty billion dollar expansion, a lot of that has 0:04:53.640 --> 0:04:57.280 been you know, Josh Tomorrow's doing. So yeah, I mean, 0:04:57.360 --> 0:04:59.080 of course we're you know, I think the street is 0:04:59.080 --> 0:05:00.839 definitely going to give him a few quarters to kind 0:05:00.839 --> 0:05:04.120 of settle in. But he has pretty much been the architect, 0:05:04.160 --> 0:05:06.360 along with Bob Ayeger I'm sure, and the rest of 0:05:06.560 --> 0:05:09.560 you know, the management team in kind of instituting the 0:05:09.560 --> 0:05:13.560 strategy and making the parks a prominent part of the 0:05:13.600 --> 0:05:17.080 portfolio going forward. So very soon you know the shot 0:05:17.080 --> 0:05:19.599 answer Scarlett is very soon. I think he owns pretty 0:05:19.680 --> 0:05:21.239 much all of this right away. 0:05:21.240 --> 0:05:24.240 In fact, Keith, if I were Josh Tomorrow, day one 0:05:24.279 --> 0:05:27.320 of my tenures CEO, I would go and I would say, Hey, 0:05:27.920 --> 0:05:31.080 explain to me why we are not spinning out our 0:05:31.120 --> 0:05:34.120 broadcasting cable networks. They are businesses that are in a 0:05:34.120 --> 0:05:37.760 secular decline. They're dragging down our multiple Let's cut them loose. 0:05:38.200 --> 0:05:40.040 Do you think that's even an option for the Walt 0:05:40.080 --> 0:05:40.720 Disney Company. 0:05:42.080 --> 0:05:44.520 I think it is. I think everybody is considering that 0:05:44.720 --> 0:05:47.800 right now. I mean we've just seen what you know, 0:05:47.880 --> 0:05:50.960 Warner Brothers Discovery has been able to achieve by kind 0:05:50.960 --> 0:05:53.840 of separating out its studio and streaming from the TV 0:05:53.880 --> 0:05:56.920 network's business. So I definitely would not rule that out. 0:05:56.960 --> 0:05:59.960 I'm sure Disney will consider and Josh Tomorrow will consider 0:06:00.160 --> 0:06:02.480 all options once he becomes CEO. 0:06:03.760 --> 0:06:07.640 What happens to Jimmy Pataro over at ESPN, I mean, 0:06:07.680 --> 0:06:10.160 does that become part of the spinouts as Paul was 0:06:10.160 --> 0:06:12.880 talking about it, because there's different parts of Disney's media 0:06:12.920 --> 0:06:15.520 business that are slowing down, that are no longer the 0:06:15.520 --> 0:06:17.680 crown rules the way they once were. Whether you're talking 0:06:17.720 --> 0:06:21.440 about the network television, or whether you're talking about ESPN, 0:06:21.560 --> 0:06:23.080 or whether you're talking about the movie business. 0:06:24.320 --> 0:06:27.040 Yeah, I think sports is still very core to Disney. 0:06:27.080 --> 0:06:29.479 I mean they are so if you just kind of 0:06:29.520 --> 0:06:33.480 look at the US sports landscape, ESPN actually owns majority 0:06:33.560 --> 0:06:37.279 of the marquee US sports right almost about forty percent 0:06:37.400 --> 0:06:40.920 of all sports viewing happens on ESPN platforms, So obviously 0:06:40.960 --> 0:06:43.400 it's still very core to the company. As far as 0:06:43.480 --> 0:06:46.440 Jimmy Pittaro is concerned. Scarlett, I mean, yes, he was 0:06:46.480 --> 0:06:49.880 one of the you know, candidates that they were considering 0:06:49.960 --> 0:06:51.960 to take on this job, but I think he himself 0:06:52.000 --> 0:06:54.680 had many times indicated that he was not really interested 0:06:54.760 --> 0:06:57.160 in the top spot. I think he kind of carries 0:06:57.200 --> 0:07:00.480 on business as usual with ESPN. You know, it's a 0:07:00.480 --> 0:07:02.640 little bit of a wait and watch what exactly happens 0:07:02.640 --> 0:07:05.359 with the strategy. It is really instrumental, I think, to 0:07:05.400 --> 0:07:07.880 their streaming business because you know, as they kind of 0:07:07.920 --> 0:07:10.480 mentioned on their earnings call, you know a lot of 0:07:10.480 --> 0:07:13.960 people taking the bundle the ESPN streaming plus the Disney 0:07:14.000 --> 0:07:16.160 plus the Hulu. So it is a critical portion of that. 0:07:16.440 --> 0:07:20.160 So I'm not really sure how exactly a spinout would work. 0:07:20.760 --> 0:07:23.400 But of course, again, you know, we are in a 0:07:23.520 --> 0:07:26.520 very very different time and age, and everybody is thinking 0:07:26.520 --> 0:07:30.000 about all possible options when it comes to a media. 0:07:30.160 --> 0:07:32.400 Our thanks to KEITHA. Rong Andathan, she is our US 0:07:32.440 --> 0:07:33.160 media analyst. 0:07:33.320 --> 0:07:35.640 We've moved to some news in the energy space. 0:07:35.440 --> 0:07:38.480 And this week the German energy company Siemens Energy announced 0:07:38.480 --> 0:07:41.240 it will invest a billion dollars in manufacturing capacity in 0:07:41.240 --> 0:07:44.280 the US over the next two years as power demand surges. 0:07:44.440 --> 0:07:46.240 The company said most of the funds will be spent 0:07:46.280 --> 0:07:50.080 on expanding existing sites in North Carolina, Florida, Texas, Alabama, 0:07:50.160 --> 0:07:52.720 and New York, as well as a new plant in Mississippi. 0:07:52.880 --> 0:07:55.200 We are joined by Siemens Energy CEO Christian bra. 0:07:55.480 --> 0:07:57.960 We first asked Christian what the goal of the Semens 0:07:58.080 --> 0:07:59.840 Energy investment is Trouthol. 0:08:00.200 --> 0:08:02.000 It's a goal to keep up with a fantastic growth 0:08:02.000 --> 0:08:05.480 which we see currently in the electricity market. And you know, Guest, 0:08:05.520 --> 0:08:11.080 Turbine's great making sure that the AI transformation can really 0:08:11.080 --> 0:08:13.560 be fueled with electricity as one of the hottest markets 0:08:13.560 --> 0:08:15.840 you can see globally at the moment, and we are 0:08:15.880 --> 0:08:18.640 obviously trying to keep up with our customers and we're 0:08:18.640 --> 0:08:21.200 trying to bring all this equipment what is needed guest turbine, 0:08:21.320 --> 0:08:25.520 transformers and the likes. This means we are expending a 0:08:25.600 --> 0:08:28.320 lot of our industrial footprint here. We are hiring people 0:08:28.840 --> 0:08:33.160 adding factories to keep up with that, and this is 0:08:33.200 --> 0:08:36.199 obviously one important step really to create also this energy 0:08:36.240 --> 0:08:38.000 dominance what the US is looking for. 0:08:38.800 --> 0:08:41.440 You recently met with President Trump. What was the takeaway 0:08:41.440 --> 0:08:43.920 from your meeting there? How related is that meeting to 0:08:44.040 --> 0:08:45.800 your announcement in the investments in the US. 0:08:45.880 --> 0:08:48.160 Well, there was a let's say reception and others right, 0:08:48.200 --> 0:08:50.760 which was a big group meeting. So what for me 0:08:50.920 --> 0:08:54.160 is important that the Trump administration is very approachable for 0:08:54.280 --> 0:08:56.880 us and I have to say I'm very grateful for that. 0:08:57.559 --> 0:09:00.040 At the moment, my key interactions is really with the 0:09:00.120 --> 0:09:02.680 secretaries in terms of really understanding, hey, what needs to 0:09:02.679 --> 0:09:07.040 be done, how do we need looking forward on the opportunities, 0:09:08.000 --> 0:09:12.679 and this is taken up excellently at the moment. That 0:09:12.840 --> 0:09:15.679 is my main interaction also with the Trump administration. 0:09:16.360 --> 0:09:20.559 Christian, how would you characterize the US energy grid here 0:09:20.600 --> 0:09:23.880 as you get set to increase your investment here? 0:09:24.240 --> 0:09:26.040 Yeah, I mean, first of all, what you see the 0:09:26.120 --> 0:09:28.880 US market on the grid side is influenced by two things. 0:09:28.880 --> 0:09:31.320 The one thing is that you have a massive investment 0:09:31.360 --> 0:09:35.800 with ongoing just for replacement refurbishment of existing facilities. This 0:09:35.880 --> 0:09:38.280 is very much utility driven business, which is very active, 0:09:38.280 --> 0:09:41.720 which sometimes gets overlooked seeing the data center discussion. And 0:09:41.800 --> 0:09:44.240 at the same time, you obviously have an unprecedented growth 0:09:44.240 --> 0:09:48.360 in electricity on the data center side, which does require 0:09:48.520 --> 0:09:51.360 heavy investments into the grid side as well, and we 0:09:51.440 --> 0:09:54.840 need to understand also how do we operate all the things. 0:09:54.880 --> 0:09:58.239 I mean, everybody easily talks about gigawards of additional electricity. 0:09:58.720 --> 0:10:01.240 There's not so many sites in the US which like 0:10:01.280 --> 0:10:04.880 a one gigable type of consumption. This will require grid 0:10:04.920 --> 0:10:08.440 stabilization and this is what we all try to contribute. 0:10:08.480 --> 0:10:12.160 So what we're doing here is building factories for switch gear, 0:10:12.320 --> 0:10:17.120 transformers components which supply to that industry, and obviously also 0:10:17.160 --> 0:10:21.040 bringing up people who can help to do this overarching 0:10:21.080 --> 0:10:24.959 design on the grid side. We believe that is let's say, 0:10:25.000 --> 0:10:27.000 really a long run and we will see it for 0:10:27.040 --> 0:10:30.960 a long time because electricity grate is an important backbone 0:10:31.000 --> 0:10:34.400 of the critical infrastructure, and this is why. I feel 0:10:34.480 --> 0:10:36.679 very comfortable with the investment we're doing, and I'm very 0:10:36.720 --> 0:10:37.760 happy with the market here. 0:10:37.960 --> 0:10:39.480 So I want to pick up on where you just 0:10:39.760 --> 0:10:42.720 left off, bring in more people to design some of 0:10:43.280 --> 0:10:46.719 the grid work there. Talk to us about jobs. How 0:10:46.720 --> 0:10:50.679 many jobs will your initiatives create, What kinds of jobs 0:10:50.720 --> 0:10:52.760 are they going to be, what level, what kind of 0:10:52.840 --> 0:10:55.520 education is needed, how much training will there be in 0:10:55.640 --> 0:10:58.240 order for you to find the right people. 0:10:57.960 --> 0:10:58.600 For those jobs. 0:10:58.720 --> 0:11:01.800 Yeah, I mean, we had today an organization with around 0:11:01.840 --> 0:11:03.880 twelve thousand people in the US right and we're going 0:11:03.960 --> 0:11:06.760 to add another fifteen hundred on top of that. And 0:11:06.800 --> 0:11:09.920 this will be accompanied by a lot of education and 0:11:09.960 --> 0:11:11.680 training programs. So a lot of this will be blue 0:11:11.679 --> 0:11:14.320 color working jobs, also on the factories, making sure that 0:11:14.360 --> 0:11:17.040 we can produce and also that we have people going 0:11:17.080 --> 0:11:20.240 out in the fields and fixing things. So this will 0:11:20.800 --> 0:11:23.640 go through training academies which we build up in parallel 0:11:23.720 --> 0:11:26.120 in this. You know, we have one big new facility 0:11:26.120 --> 0:11:32.400 coming up in Jackson, Mississippi, which will obviously also will 0:11:32.440 --> 0:11:35.480 be with one training center. We have a big site 0:11:35.520 --> 0:11:38.640 in Charlotte which we also will increase on that at 0:11:38.679 --> 0:11:42.760 the same time building up factories is also then coming 0:11:42.800 --> 0:11:45.280 with some engineering work on the white color side, so. 0:11:45.200 --> 0:11:45.960 It will be both. 0:11:46.400 --> 0:11:48.000 But the big thing, and this is why we went 0:11:48.080 --> 0:11:51.000 out is really hey, this is I would call it 0:11:51.000 --> 0:11:53.360 a blue color wave. Now in terms of really getting 0:11:53.480 --> 0:11:56.880 educated workers. That is my biggest constraint at the moment, 0:11:56.920 --> 0:11:58.679 also on the market, and it goes down to the 0:11:58.720 --> 0:12:01.839 construction workers, people in the factories. And we should never 0:12:01.920 --> 0:12:06.360 ever underestimate the need to finally get something done and 0:12:06.400 --> 0:12:11.240 that will require more people, more skilled labor, and we 0:12:11.280 --> 0:12:13.840 will definitely contribute to that and to help to build 0:12:13.920 --> 0:12:14.600 up that workforce. 0:12:14.880 --> 0:12:17.760 Our thanks to Semen's Energy CEO Christian Buruh, coming up 0:12:17.760 --> 0:12:20.280 a look at why obesity data from drug maker Pfizer 0:12:20.480 --> 0:12:21.679 underwhelmed investors. 0:12:21.920 --> 0:12:24.800 You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in 0:12:24.800 --> 0:12:26.960 depth research and data on two thousand companies and one 0:12:27.040 --> 0:12:28.120 hundred and thirty industries. 0:12:28.240 --> 0:12:31.280 You can access Bloomberg Intelligence via bi go on the terminal. 0:12:31.360 --> 0:12:32.520 I'm Scarlet Foo and. 0:12:32.440 --> 0:12:34.480 I'm Paul Sweeney, and this is Bloomberg. 0:12:38.600 --> 0:12:43.080 This is Bloomberg Intelligence with Scarlet Foo and Paul Sweeney 0:12:43.480 --> 0:12:44.800 on Bloomberg Radio. 0:12:45.440 --> 0:12:47.440 We move to some news in the biotech sector. 0:12:47.640 --> 0:12:49.959 This week, shares a Pfizer fell after the drug maker 0:12:50.000 --> 0:12:53.040 revealed limited data from one of its new obesity treatments. 0:12:53.080 --> 0:12:55.319 It showed people lost up to twelve point three percent 0:12:55.360 --> 0:12:57.839 of their body weight compared to those on a placebo 0:12:57.920 --> 0:12:58.800 at twenty eight weeks. 0:12:58.840 --> 0:13:01.240 And of course this comes after Eyer battled to buy 0:13:01.240 --> 0:13:03.760 weight loss startup met Sarah late last year. With no 0:13:03.800 --> 0:13:06.880 new drug approvals expected this year, and the limited data 0:13:06.880 --> 0:13:10.040 released means the prospects for Metsara's farthest long drug do 0:13:10.160 --> 0:13:10.880 remain unclear. 0:13:11.240 --> 0:13:13.520 For more on this and the latest in the biotech sector, 0:13:13.679 --> 0:13:16.600 we heard from Sam Fazeli, Bloomer Intelligence, director of Research 0:13:16.600 --> 0:13:19.240 for Global Industries and senior pharmaceuticals analysts. 0:13:19.280 --> 0:13:22.280 We began by asking Sam about how investors were impacted 0:13:22.280 --> 0:13:23.880 by this limited obesity data. 0:13:24.360 --> 0:13:26.760 Yeah, yeah, so look, they paid ten point one billion 0:13:26.800 --> 0:13:28.880 dollars for this, and if it all to do with that, 0:13:29.000 --> 0:13:31.520 there is it people being reminded again that the next 0:13:31.520 --> 0:13:36.240 three four years there's a major headwind from generated drugs 0:13:36.280 --> 0:13:39.880 coming for there some of the products on the market 0:13:39.880 --> 0:13:44.720 eye brands, ex standy, et cetera. So that's partly the issue. 0:13:44.760 --> 0:13:47.640 And you know in order to deal with that, you 0:13:47.679 --> 0:13:49.840 need assets and drugs that are going to try and 0:13:49.880 --> 0:13:52.920 hopefully fill the gap. And maybe this is the problem 0:13:52.920 --> 0:13:55.320 with the data. The thing is, we've looked at the data. 0:13:55.360 --> 0:13:57.880 As you know, we have very deep obesity analysis. We've 0:13:57.880 --> 0:14:01.760 looked at the data and it's not terrible. But as 0:14:01.800 --> 0:14:04.840 I said the other day when Rash reported, there's some numbers, 0:14:05.200 --> 0:14:08.920 I think folks are getting over this percentage here, percentage there. 0:14:09.480 --> 0:14:11.560 You can only dis the point going for what you 0:14:11.600 --> 0:14:13.960 can't mean unless you give out somebody who are thirty 0:14:14.040 --> 0:14:17.800 forty weights, which of course nobody wants. So this is 0:14:17.800 --> 0:14:20.960 getting to a point where now it comes to the nuance, 0:14:20.960 --> 0:14:22.840 and unfortunately we don't have a lot of the nuance 0:14:22.880 --> 0:14:26.160 that we need to know about this data set tolerability. 0:14:26.600 --> 0:14:29.200 And it is good because it's a once monthly injection 0:14:29.320 --> 0:14:32.000 after the first few weeks, so it's well set up. 0:14:32.280 --> 0:14:34.520 But the market obviously doesn't like it because they're not 0:14:34.560 --> 0:14:38.520 getting enough information about how good actually it is. Sam. 0:14:38.560 --> 0:14:40.040 It seems like if you want to be an investor 0:14:40.040 --> 0:14:42.840 in big cap farmer, you really have to be a 0:14:42.880 --> 0:14:45.520 stock picker. I've got stocks like Pfizer and Bristol on 0:14:45.560 --> 0:14:48.600 a trailing twelve month basis that are down. But I've 0:14:48.640 --> 0:14:51.320 got stocks like Johnson and Johnson and Eli Lilly and 0:14:51.400 --> 0:14:54.680 abby V. They're are big. And is that just because 0:14:54.920 --> 0:14:58.320 they've got the right portfolio of drugs and the others don't. 0:14:59.240 --> 0:15:02.960 Entirely entirely about that is what you don't want is 0:15:03.000 --> 0:15:06.160 looking into the abyss of generic drugs coming for your 0:15:06.240 --> 0:15:10.800 big earners with no obvious pipeline. Versus, let's take a 0:15:10.880 --> 0:15:14.200 Johnson and Johnson in this case, and they have a 0:15:14.400 --> 0:15:17.840 phenomenal set of drugs for the multiple my looma space 0:15:18.560 --> 0:15:22.440 or a whole you know, other oncology spaces. This is 0:15:22.480 --> 0:15:25.040 a powerhouse. And of course they've also still got the 0:15:25.120 --> 0:15:30.440 other divisions medical devices growing quite nicely so and no 0:15:30.920 --> 0:15:33.840 massive I mean, there's one that's coming up, a big 0:15:33.880 --> 0:15:37.280 hole that's coming in terms of generics, but they've still 0:15:37.280 --> 0:15:39.840 got these things that are growing at phenomenal speed. And 0:15:39.880 --> 0:15:43.280 one of their drugs, Dartlects, is very close to twenty 0:15:43.320 --> 0:15:46.960 billion dollars and that's just one indication in multiple myloma. 0:15:47.120 --> 0:15:49.560 So they've done everything right in that case, and that's 0:15:49.600 --> 0:15:50.800 what the market likes. 0:15:51.040 --> 0:15:53.160 So in other words, Sam, this is something that can 0:15:53.200 --> 0:15:56.680 be managed. The fact that Pfizer hasn't managed this well 0:15:57.040 --> 0:16:00.200 raises a lot of questions here because I mean, it's 0:16:00.240 --> 0:16:02.120 not like just one day they woke up and oh, 0:16:02.240 --> 0:16:05.280 you know, there's suddenly a lot of competition for some 0:16:05.320 --> 0:16:07.760 of their best selling drugs, or people are no longer 0:16:07.800 --> 0:16:12.040 paying up for COVID treatments COVID vaccines. In terms of management, 0:16:12.280 --> 0:16:16.240 do investigate a question whether adviser has a right management 0:16:16.280 --> 0:16:16.640 in place. 0:16:18.080 --> 0:16:21.160 Yeah, I mean, look, this is a tough game, right 0:16:22.040 --> 0:16:24.360 not the game, of course, this is a very tough 0:16:24.440 --> 0:16:29.320 set of issues to deal with. Creating pipeline takes a 0:16:29.360 --> 0:16:33.120 lot of effort. Let's take Eli Lilly. For years, nobody 0:16:33.280 --> 0:16:36.240 was paying too much attention to their potential margin expansion 0:16:36.240 --> 0:16:39.160 that was coming, and they were arguing for it, et cetera. 0:16:39.440 --> 0:16:42.000 Maybe they were lucky they hit on these obesity drugs. 0:16:42.040 --> 0:16:44.520 Look at Ask for Zeneca. It took quite a lot 0:16:44.560 --> 0:16:48.320 of pain for Pascal Soio you should write that ship 0:16:48.360 --> 0:16:51.520 when he took it. So management's part of it. Then 0:16:51.560 --> 0:16:54.520 you need to be lucky. You cannot have just one 0:16:54.640 --> 0:16:57.560 or the other. And pipeline. You know, we'll see what 0:16:57.680 --> 0:17:01.000 Fizer shows us over time, they have assets early development 0:17:01.160 --> 0:17:03.520 that we need to start seeing the fruit our. 0:17:03.440 --> 0:17:06.240 Thanks to Sam Fizzelli, Bloomberg Intelligence, Director of Research for 0:17:06.280 --> 0:17:09.160 Global Industries and senior pharmaceuticals. 0:17:08.480 --> 0:17:10.879 Analyst, we moved to some news in the tech space. 0:17:11.000 --> 0:17:13.919 This week. Advanced micro Devices suffered its worst stock declined 0:17:13.960 --> 0:17:17.440 in almost nine years after its sales forecast underwhelmed investors. 0:17:17.840 --> 0:17:20.000 It's a sign that AMD is not making the AI 0:17:20.080 --> 0:17:21.880 inroads that Wall Street had anticipated. 0:17:22.200 --> 0:17:26.399 Separately, the semiconductor manufacturers Texas Instruments reach an agreement to 0:17:26.400 --> 0:17:29.640 buy the US chip firm Silicon Laboratories for about seven 0:17:29.680 --> 0:17:30.760 point five billion dollars. 0:17:30.880 --> 0:17:34.359 This deepens TIS exposure to several long standing markets for chips, 0:17:34.359 --> 0:17:37.880 including the home appliance, power, industrial, and medical device sectors. 0:17:38.080 --> 0:17:39.840 For more on all of this, guest host John Tucker 0:17:39.840 --> 0:17:42.440 and I were joined by Ku John Sobandi, Bloomberg Intelligence 0:17:42.440 --> 0:17:43.800 senior semiconductor analysts. 0:17:43.960 --> 0:17:47.280 We began by asking Konjohn of investors overreacted or if 0:17:47.320 --> 0:17:50.480 there is actually something fundamentally wrong with AMD's latest report. 0:17:50.800 --> 0:17:54.760 There was nothing fundamentally wrong in this report. There were 0:17:54.800 --> 0:17:56.679 a lot of good things to take away, but it 0:17:56.720 --> 0:17:59.040 comes down to you know when you become an ar darling. 0:17:59.119 --> 0:18:02.760 You set up really really high expectations, and when you 0:18:02.840 --> 0:18:06.159 take out the China revenue, which was not included in 0:18:06.200 --> 0:18:10.280 the guidance and the expectations, the beat came out pretty modest, 0:18:10.320 --> 0:18:12.919 which I guess people didn't like, and then was not 0:18:13.040 --> 0:18:15.800 at power against the really high expectations that you have 0:18:15.920 --> 0:18:17.520 now every quarter from these companies. 0:18:18.160 --> 0:18:21.119 Like they used to ask in the old Westerns, you know, 0:18:21.400 --> 0:18:23.040 is there room enough for the two of us in 0:18:23.080 --> 0:18:25.920 this town? Is there room enough for them? And in 0:18:26.000 --> 0:18:27.840 Nvidia there is right now. 0:18:27.880 --> 0:18:30.440 I mean, look, all the tide is lifting all boats. 0:18:30.520 --> 0:18:34.359 There's so much demand for accelerator chips that there's room 0:18:34.440 --> 0:18:37.440 for a MD as a GPU provider. There's even room 0:18:37.480 --> 0:18:40.680 for other folks like Broadcomming mar Well as an AS provider. 0:18:40.720 --> 0:18:42.760 So there's a plenty of demand right now. 0:18:43.480 --> 0:18:46.439 Do we like management least as Sue? I think is 0:18:46.480 --> 0:18:48.879 just when I just see your interviews, it seems super 0:18:48.920 --> 0:18:49.520 on top of it. 0:18:49.800 --> 0:18:53.360 Yeah, I mean, like I said, fundamentally, nothing changed their 0:18:53.400 --> 0:18:57.399 their CPU story continues to become stronger. Nobody's paying attention 0:18:57.480 --> 0:18:59.159 to do it right now because all the focus is 0:18:59.200 --> 0:19:01.760 on GPU and competing with n media. But people are 0:19:01.800 --> 0:19:04.440 forgetting inherently. I when you look at two years back, 0:19:04.440 --> 0:19:07.920 this was really a CPU company. Their GPU story line 0:19:07.960 --> 0:19:11.920 remains intact. We didn't expect any fireworks coming into this earnings. 0:19:11.960 --> 0:19:14.960 We don't expect it until really four q F twenty 0:19:15.000 --> 0:19:18.080 twenty six, so the market is aware of this. We 0:19:18.200 --> 0:19:21.280 really have to wait until the four q twenty twenty six. 0:19:21.320 --> 0:19:23.760 This is when they will be really put to tests 0:19:23.800 --> 0:19:27.600 if they can really execute their first server level solution 0:19:27.760 --> 0:19:30.680 or not. So there's nothing changed that we saw should 0:19:30.760 --> 0:19:32.160 really concern us. 0:19:32.880 --> 0:19:35.600 How important is China in all this? I thought the 0:19:35.640 --> 0:19:38.640 export restrictions were lifted. I mean, what's what's taking so long? 0:19:38.920 --> 0:19:42.240 Well, so the expert restrictions are different for each chip, 0:19:42.320 --> 0:19:44.520 so that the Mi three to eight which they were 0:19:44.520 --> 0:19:50.440 able to ship, had already licenses approved prior, so that's 0:19:50.440 --> 0:19:53.560 a different chip. The newer chips that now is in 0:19:53.640 --> 0:19:55.399