WEBVTT - Intel to Sell 51% Altera Stake to Silverlake 

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<v Speaker 2>Little m and a activity here in the tech sector,

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<v Speaker 2>Intel finalizes a deal to sell fifty one percent of

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<v Speaker 2>It's All terrorI stake to silver Lake. Now silver Lake folks,

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<v Speaker 2>I got to know them back in the day. I

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<v Speaker 2>think one of the smarter private equity folks that has

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<v Speaker 2>a technology bent.

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<v Speaker 3>Some super super smart folks.

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<v Speaker 2>They've backed a lot of companies over the last thirty

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<v Speaker 2>years in Silicon Valley. They know what they're doing and

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<v Speaker 2>when they move their money, you pay attention. Man Deep Sing,

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<v Speaker 2>I also pay attention to him. He's a senior tech analyst.

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<v Speaker 2>The Bloomberg Intelligence Joints is here in our Bloomberg Interactive

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<v Speaker 2>Broker studio. What's in Intel up to these days?

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<v Speaker 4>In Deep Well, they got our news CEO, and I

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<v Speaker 4>think he's making the moves. Everyone was looking forward to

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<v Speaker 4>what is he going to do differently than Pat Gelsinger,

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<v Speaker 4>And it looks like he wants to turn around the

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<v Speaker 4>foundry business. There was one school of thought that thought

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<v Speaker 4>Intel should sell the foundry and focus on chip design

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<v Speaker 4>like Nvidia. But clearly he feels, you know, foundry business

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<v Speaker 4>can be turned around. And so the easy pickings here

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<v Speaker 4>is raise cash, you know, get rid of the non

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<v Speaker 4>core assets.

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<v Speaker 5>Which is all Terra here.

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<v Speaker 4>So they're selling fifty one percent stake, mobilize another business

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<v Speaker 4>that comes to mind that they could sell. And look,

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<v Speaker 4>with a company like Intel, everyone knows that, you know,

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<v Speaker 4>you can't really turn around this company to show high growth.

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<v Speaker 4>It's more about how do you manage the company in

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<v Speaker 4>a way where they're not burning a lot of cash

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<v Speaker 4>as well as they can have you know, low to

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<v Speaker 4>mid single digit growth. And I think that's to be

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<v Speaker 4>the playbook here.

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<v Speaker 6>So, man, deep, is silver Lake getting a good deal

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<v Speaker 6>then with this epic?

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<v Speaker 4>I mean Intel paid you know, sixteen billion plus ten

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<v Speaker 4>years back, so they held the company for ten years

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<v Speaker 4>and now they're selling it half the price. And look,

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<v Speaker 4>this isn't a high growth asset, which is why it

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<v Speaker 4>was noncore to Intel. But we know Semis isn't that

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<v Speaker 4>sweet part of the cycle where everyone seems to be

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<v Speaker 4>bullish on AI and Semis, and so maybe silver Lake

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<v Speaker 4>can come up with a better way to you know,

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<v Speaker 4>leverage all Terra in that semi space, because that's what

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<v Speaker 4>everyone seems to be excited by. How can I play

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<v Speaker 4>in the demand for Semis?

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<v Speaker 3>Why did they solve a whole thing?

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<v Speaker 4>Well, I mean it's a private equity player, so you know,

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<v Speaker 4>they're not going to put a lot of money in

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<v Speaker 4>one asset, and they just wanted fifty one percent so

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<v Speaker 4>that they can run the company. At the same time,

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<v Speaker 4>Intel can benefit if they are able to successfully turn

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<v Speaker 4>it around. And yeah, I think Alterra still needs Intel

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<v Speaker 4>technology to be successful. So it's not as if there's

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<v Speaker 4>a complete decoupling. It just allows Intel to focus more

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<v Speaker 4>on the core business, the foundry and their CPU business,

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<v Speaker 4>as opposed to focusing on Alterra and mobile IE. I

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<v Speaker 4>think down the line.

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<v Speaker 6>Should we expect with this new Intel CEO to see

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<v Speaker 6>more news like this Intel selling other parts of its business.

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<v Speaker 4>I think so mobile ie is definitely another one which

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<v Speaker 4>is non core to Intel, even if they want to

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<v Speaker 4>double down on AI and chip design. Within AI, I

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<v Speaker 4>mean mobile IE is more autonomous driving and that also

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<v Speaker 4>came from another acquisition that Intel did back in the day.

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<v Speaker 4>So I hope they don't end up taking a loss

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<v Speaker 4>on that one. But I do think the playbook here

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<v Speaker 4>seems to be that they want to focus on foundry

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<v Speaker 4>and core CPU chip design.

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<v Speaker 3>Foundry that's making chips, right.

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<v Speaker 4>Yeah, the manufacturing side, Now, who else does that? Well,

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<v Speaker 4>we just heard the news around in Vidia, you know,

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<v Speaker 4>using TSMC to make their AI supercomputers here in the US.

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<v Speaker 4>So that's that was quite a bit of news because

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<v Speaker 4>I would have thought TSMC would partner with Intel, and

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<v Speaker 4>there was some rumblings about, you know, TSMC doing something

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<v Speaker 4>with Intel at least here in the US. But it

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<v Speaker 4>looks like Nvidia is thinking about making their next CI

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<v Speaker 4>supercomputer with TSMC. No talk about Intel, and that will

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<v Speaker 4>be here in the US.

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<v Speaker 3>So then invested.

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<v Speaker 2>I thought there's some deal that there were Intel's gonna

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<v Speaker 2>do a bunch of that stuff.

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<v Speaker 4>Yeah, so that's where there was talk about Intel and

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<v Speaker 4>TSMC partnering. So that was the foundry side of Intel.

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<v Speaker 4>But I don't think that's happening now.

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<v Speaker 2>So the Biden plan with Intel, which was to do

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<v Speaker 2>a big, big deal, big investment, is that's still on

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<v Speaker 2>or no.

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<v Speaker 4>So the chips Act money was given to Intel. It

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<v Speaker 4>was also given to TSMC for or the Phoenix fab

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<v Speaker 4>there they will be making this AI supercomputer with you know, Nvidia.

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<v Speaker 4>But look, I think in the case of Intel, the

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<v Speaker 4>challenge has always been why have they not participated in

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<v Speaker 4>this AI wave? And the Chipsack money didn't help over there,

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<v Speaker 4>all right.

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<v Speaker 2>Man Deep Singh, thank you so much. We appreciate it.

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<v Speaker 2>Man Deep Singh. He's a senior tech analyst. He kind

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<v Speaker 2>of runs our global technology research franchise over Bloomberg Intelligence,

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<v Speaker 2>and he.

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<v Speaker 3>And Ana Agrana are the thought leaders there and they

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<v Speaker 3>kind of.

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<v Speaker 2>Drive the process forward. Here Intel selling fifty one percent

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<v Speaker 2>of one of their businesses to Silver like but a

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<v Speaker 2>steep valuation discount that had the hurt.

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<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

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<v Speaker 3>And Mike Grafey was sitting in for Steal here today.

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<v Speaker 3>I'm Paul Swen.

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<v Speaker 2>You were live on our Bloomberg Interactive Broker Studio or

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<v Speaker 2>streaming live on YouTube as well, so you can check

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<v Speaker 2>us out on YouTube. Golden Sachs put out, there are

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<v Speaker 2>results this morning, better than expected results that stocks up

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<v Speaker 2>about two and a half percent. Was really the equity

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<v Speaker 2>trading desk powering the way here, similar to what we

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<v Speaker 2>saw from JP Morgan, Morgan Stanley last week's Let's get

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<v Speaker 2>the breakdown here with Alison Williams, senior analyst covering all

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<v Speaker 2>the financial institutions for a Bloomberg intelligency joins us life

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<v Speaker 2>here in our Bloomberg Interactive Broker Studio Goldman Sachs.

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<v Speaker 3>The stock traders had a nice quarter.

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<v Speaker 5>They did have a nice quarter, and you.

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<v Speaker 7>Know they didn't They weren't up forty five to fifty

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<v Speaker 7>percent like JP Morgan and Morgan Stanley, but still enough

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<v Speaker 7>to hold that number one lead across and what we're

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<v Speaker 7>hearing is derivatives, which is not surprising, right given all

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<v Speaker 7>the volatility. And the other interesting note is, you know,

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<v Speaker 7>Goldman this quarter a little bit weaker than the peers,

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<v Speaker 7>but over the long term, I mean the market share

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<v Speaker 7>games they've had in fic N equities trade really strong,

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<v Speaker 7>leading across all of the banks over the ten years.

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<v Speaker 7>Those three names, JP Morgan Morgan standing Goldman all gaining,

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<v Speaker 7>But really Goldman has done a good job. They've been

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<v Speaker 7>focusing on clients. They've also been focusing on financing revenue.

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<v Speaker 7>Fick trading also above a year ago, just not as

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<v Speaker 7>strong and a little bit shy. And then the other

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<v Speaker 7>part of the story, as you know, is those weaker fees.

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<v Speaker 7>So Goldman is number one and equity trading revenue, they're

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<v Speaker 7>number one in M and A, equity trading really powering

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<v Speaker 7>these banks higher. M and A really feeling the fallout

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<v Speaker 7>from uncertainty.

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<v Speaker 5>That's right.

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<v Speaker 6>So the company's investment banking revenue was eight percent lower

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<v Speaker 6>than last year. Is that just due to macro uncertainty,

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<v Speaker 6>companies not wanting to get deals done because they're not

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<v Speaker 6>sure what's going to happen in the future.

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<v Speaker 5>It's exactly that. So debt fees.

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<v Speaker 7>Really have been the area of strength across these banks

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<v Speaker 7>continued to be the area of strength this quarter. Equity fees,

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<v Speaker 7>which started out the year strong. As you can imagine,

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<v Speaker 7>there was some stalling as markets sold off, like especially

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<v Speaker 7>in the US late in the first quarter, but now

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<v Speaker 7>really a lot of those deals coming to a standstill.

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<v Speaker 7>On the equity side of things, and then M and A,

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<v Speaker 7>which really can be deriven by.

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<v Speaker 5>CEO sentiment.

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<v Speaker 7>Keep in mind, and you know, if you're going to

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<v Speaker 7>sell your business, you want to be sure that you're

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<v Speaker 7>getting the best value for your shareholders. Similarly, if you're

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<v Speaker 7>buying a business, you want to be estimating what your

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<v Speaker 7>return on investment is going to be, and you really can't.

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<v Speaker 5>There's so much uncertainty.

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<v Speaker 7>There's so much I think, so much of a wait

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<v Speaker 7>and see approach that that business has really come to

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<v Speaker 7>a standstill.

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<v Speaker 2>I see that David Solomon, the CEO, called out growing backlog.

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<v Speaker 2>Backlog ain't cash, Backlog's not fees. What's the saying about

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<v Speaker 2>the environment that gets stuff done, whether it's an M

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<v Speaker 2>and A trade and IPO, that kind of stuff.

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<v Speaker 7>And that's a great point because we always do look

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<v Speaker 7>at the pipeline and as you said, Samon did point out, look,

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<v Speaker 7>we've seen it grow another quarter in a row. But

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<v Speaker 7>you want that pipeline growing because there's more new business

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<v Speaker 7>not coming in, not because things are not getting done right.

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<v Speaker 5>So the pipeline can.

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<v Speaker 7>Increase for two reasons, and you really want to What

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<v Speaker 7>you really want is execution and confidence in the execution.

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<v Speaker 7>So the positive sign, which I think is true for

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<v Speaker 7>so many things, right, is that we have a huge

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<v Speaker 7>level of uncertainty. If that resolves, then you could be

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<v Speaker 7>back in business, and unlike some of the other periods

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<v Speaker 7>that we've seen with incredible uncertainty.

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<v Speaker 6>Right.

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<v Speaker 7>So the pandemic, I mean, there was really no control

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<v Speaker 7>over what happened there. I mean, obviously the scientists were

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<v Speaker 7>working very quickly to come up with a vaccine. The

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<v Speaker 7>global financial crisis, we know that there were huge underlying

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<v Speaker 7>issues with the financial system.

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<v Speaker 5>In this case, it's really about the politics.

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<v Speaker 7>So certainly that is something that is incredibly difficult to handicap.

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<v Speaker 7>I certainly am glad that I'm not the analysts they're

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<v Speaker 7>trying to figure out or estimate what's going on, or

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<v Speaker 7>a CEO thinking about whether or not now is the

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<v Speaker 7>time to sell my business. But I think that that

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<v Speaker 7>gives a little context in terms of if we can

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<v Speaker 7>get certainty, can we really just.

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<v Speaker 5>Get that that that pipeline executed.

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<v Speaker 6>What's the high level takeaway from bank earnings now that

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<v Speaker 6>we've already seen Goldman Morgan, Stanley, Wells Fargo and JP

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<v Speaker 6>Morgan two was on Friday, right, Yep, so we've seen

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<v Speaker 6>all the big banks basically report and they beat. What

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<v Speaker 6>are investors supposed to take away from all of this

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<v Speaker 6>about what it's telling us about the health of the

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<v Speaker 6>banking sector at large.

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<v Speaker 7>I think, you know, so earnings, as we know, are

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<v Speaker 7>backward lookings, and things looked very healthy in the first quarter.

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<v Speaker 7>I think that you know, as I said, there's put

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<v Speaker 7>some in takes, but for the most part, what we

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<v Speaker 7>are hearing from the management is similar to what you'd

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<v Speaker 7>expect with uncertainty. We do get Bank of America and

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<v Speaker 7>City Group tomorrow that will give us, i think, even

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<v Speaker 7>a richer look at terms of the US consumer, which

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<v Speaker 7>you know, Bank of America is a good bell weather

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<v Speaker 7>for a City Group has this big card business. But

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<v Speaker 7>the key trends we're seeing are one, you know, trade

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<v Speaker 7>trading strong, fees weaker, that's really.

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<v Speaker 5>Due to the volatility UH.

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<v Speaker 7>Two, buybacks strength, and buybacks coming in better than expected.

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<v Speaker 5>Big program at Goldman.

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<v Speaker 7>So really this benefit from lesser regulation UH does have

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<v Speaker 7>an does have an impact that we're seeing. And then third,

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<v Speaker 7>you know, uncertainty manifesting in credit provisions. We saw a

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<v Speaker 7>big provision at JP Morgan or I should say a

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<v Speaker 7>sizeable provision there less so Wells Fargo, but both pretty

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<v Speaker 7>conservative so in terms of what they're estimating going forward,

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<v Speaker 7>and again not based on what we've seen, but uncertainty.

0:11:49.640 --> 0:11:52.360
<v Speaker 7>We expect the same at Bank of America and City tomorrow.

0:11:52.640 --> 0:11:55.640
<v Speaker 2>What's a head count story on Wall Street these days?

0:11:55.800 --> 0:11:58.479
<v Speaker 2>I mean, if this kind of outlook, in this uncertainty,

0:11:59.040 --> 0:12:00.600
<v Speaker 2>I think we'll start cutting back head county thing.

0:12:00.880 --> 0:12:04.559
<v Speaker 7>I think that's uh exactly goes to your point earlier,

0:12:04.600 --> 0:12:07.520
<v Speaker 7>Paul about pipelines, right, so we have the pipelines. If

0:12:07.520 --> 0:12:09.920
<v Speaker 7>we get uncertainty, we can get that.

0:12:09.960 --> 0:12:10.320
<v Speaker 5>Relieve.

0:12:10.760 --> 0:12:14.079
<v Speaker 7>The CEOs are talking positive, but actions do speak louder

0:12:14.080 --> 0:12:14.560
<v Speaker 7>than words.

0:12:14.600 --> 0:12:17.200
<v Speaker 5>We did see cuts at Morgan Stanley.

0:12:17.400 --> 0:12:20.560
<v Speaker 7>Certainly they they cited their typical review being pulled forward.

0:12:20.600 --> 0:12:25.480
<v Speaker 7>They cited technology, but certainly the timing I think is instructive.

0:12:25.640 --> 0:12:28.559
<v Speaker 7>And JP Moore, I mean, sorry Gold and Zachs also

0:12:28.640 --> 0:12:31.120
<v Speaker 7>talking about cuts that they'll be making into two Q

0:12:31.320 --> 0:12:35.720
<v Speaker 7>flagging some severance charges there. So I think that signals

0:12:35.840 --> 0:12:38.200
<v Speaker 7>that when they're thinking about the revenue sort of in

0:12:38.240 --> 0:12:41.640
<v Speaker 7>the months ahead, that they do think that this uncertainty

0:12:41.760 --> 0:12:46.480
<v Speaker 7>is going to damp the potential for the coming quarters.

0:12:46.760 --> 0:12:49.079
<v Speaker 6>What about CEO pay Is it going.

0:12:49.080 --> 0:12:50.840
<v Speaker 3>To damp problem there?

0:12:51.040 --> 0:12:51.760
<v Speaker 6>No problem there.

0:12:52.440 --> 0:12:52.640
<v Speaker 3>Yeah.

0:12:52.679 --> 0:12:56.600
<v Speaker 7>So we we just got through that season and you

0:12:56.640 --> 0:12:58.920
<v Speaker 7>know that that's going to be how they navigate this

0:12:59.000 --> 0:12:59.520
<v Speaker 7>year ahead.

0:13:00.160 --> 0:13:02.920
<v Speaker 2>I mean, they're all in that thirty four thirty five

0:13:03.000 --> 0:13:05.959
<v Speaker 2>million dollars range, all in, so good for them.

0:13:06.760 --> 0:13:08.920
<v Speaker 3>They get Hey, we appreciate that. All right, Allison Williams,

0:13:08.960 --> 0:13:09.440
<v Speaker 3>thank you so much.

0:13:09.480 --> 0:13:10.240
<v Speaker 5>We appreciate that.

0:13:10.480 --> 0:13:14.080
<v Speaker 2>Allison Williams, senior Global Banks asset Managers, all that kind

0:13:14.080 --> 0:13:17.040
<v Speaker 2>of stuff for Bloomberg Intelligence. It's a busy day and

0:13:17.120 --> 0:13:19.319
<v Speaker 2>we appreciate her coming into New York City.

0:13:21.040 --> 0:13:24.760
<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

0:13:24.840 --> 0:13:28.240
<v Speaker 1>weekdays at ten am Eastern on Applecarplay and Android Auto

0:13:28.320 --> 0:13:31.400
<v Speaker 1>with the Bloomberg Business app. Listen on demand wherever you

0:13:31.440 --> 0:13:34.400
<v Speaker 1>get your podcasts, or watch us live on YouTube.

0:13:35.240 --> 0:13:36.840
<v Speaker 3>Mikey Shaw joins us here.

0:13:36.880 --> 0:13:40.120
<v Speaker 2>He's the senior Farmer, farmer and biotech analysts for Bloomberg Intelligence.

0:13:40.160 --> 0:13:43.720
<v Speaker 2>He's in London and he covers all these big farmer

0:13:43.840 --> 0:13:49.880
<v Speaker 2>companies and big one today Mikey Pfizer abandoning it's obesity pill.

0:13:50.800 --> 0:13:53.079
<v Speaker 2>That sounds like a big deal because I keep reading

0:13:53.120 --> 0:13:55.480
<v Speaker 2>the research you and your colleagues over there putting out

0:13:55.480 --> 0:13:56.880
<v Speaker 2>about this obesity market.

0:13:57.160 --> 0:13:58.280
<v Speaker 3>This is a big market.

0:13:58.320 --> 0:14:01.200
<v Speaker 2>And for Pfizer to have this big miss year, how

0:14:01.240 --> 0:14:02.720
<v Speaker 2>big of an issue is it for Pfizer.

0:14:04.120 --> 0:14:06.319
<v Speaker 8>Yeah, I mean I think it's it's a sentiment issue.

0:14:06.440 --> 0:14:09.600
<v Speaker 8>I mean, clearly, you know, you've got a massive BC

0:14:09.800 --> 0:14:12.120
<v Speaker 8>market out there, you know, one hundred billion dollar plus

0:14:12.280 --> 0:14:16.040
<v Speaker 8>in terms of sides, and it's a market where you know,

0:14:16.120 --> 0:14:19.240
<v Speaker 8>Phizes already kind of trailing large farm appears like Lily

0:14:20.480 --> 0:14:25.320
<v Speaker 8>rosch Novo in terms of you know, the BC pill itself.

0:14:25.400 --> 0:14:29.960
<v Speaker 8>So this was Danny Glippron. So what what it they

0:14:30.000 --> 0:14:34.080
<v Speaker 8>actually did was it used to be a twice daily pill.

0:14:35.320 --> 0:14:37.680
<v Speaker 8>They kind of can that and repurposed it into a

0:14:37.720 --> 0:14:40.640
<v Speaker 8>once daily following the failure of another one of their

0:14:40.640 --> 0:14:45.200
<v Speaker 8>OBCs pills, Glippron. So I'd say, you know, confidence into

0:14:45.240 --> 0:14:47.960
<v Speaker 8>this readout, you know, was pretty low. We had ready

0:14:48.120 --> 0:14:50.560
<v Speaker 8>kind of removed it from our models, you know, back

0:14:50.600 --> 0:14:54.040
<v Speaker 8>in twenty three. But what it does, you know, create

0:14:54.200 --> 0:14:57.560
<v Speaker 8>is you know to two concerns. One is you know,

0:14:57.600 --> 0:15:00.960
<v Speaker 8>the trailing timeline in the BCC space, and two it

0:15:01.040 --> 0:15:02.840
<v Speaker 8>kind of adds to the mid to long term growth

0:15:03.080 --> 0:15:06.040
<v Speaker 8>worries of the company. So they've got you know, about

0:15:06.040 --> 0:15:09.640
<v Speaker 8>fifteen billion dollars in and lost revenue to looees that

0:15:09.640 --> 0:15:12.600
<v Speaker 8>they'll need to kind of offset over twenty five to

0:15:12.600 --> 0:15:16.400
<v Speaker 8>twenty nine. And at the moment, you know, it's quite

0:15:16.440 --> 0:15:19.600
<v Speaker 8>hard to see you know where that where that offset

0:15:19.640 --> 0:15:22.080
<v Speaker 8>and where that additional growth is going to come come from.

0:15:22.120 --> 0:15:25.640
<v Speaker 8>Long term obesity would be kind of one pillar. But

0:15:25.720 --> 0:15:28.240
<v Speaker 8>you know, following the Danaglipron read out today or the

0:15:28.320 --> 0:15:32.560
<v Speaker 8>news today, you know, that's obviously mean terminated. So you know,

0:15:32.600 --> 0:15:34.040
<v Speaker 8>we think that they're going to have to go to

0:15:34.440 --> 0:15:38.840
<v Speaker 8>you know, look to external assets in the OBC space

0:15:39.000 --> 0:15:42.640
<v Speaker 8>if they're going to remain a relevant player in the

0:15:42.720 --> 0:15:43.440
<v Speaker 8>in that market.

0:15:44.360 --> 0:15:48.520
<v Speaker 6>Is anyone else doing obesity pills in this market right now?

0:15:49.800 --> 0:15:52.160
<v Speaker 8>Yeah, So, I mean there's a few biotechs out there

0:15:52.560 --> 0:15:54.240
<v Speaker 8>that are that are doing pills. In terms of the

0:15:54.320 --> 0:15:57.360
<v Speaker 8>large farmer competitors, you know, Lily's got one, we'll see

0:15:57.360 --> 0:16:00.320
<v Speaker 8>the data for that this year phase three that couldotentially

0:16:00.360 --> 0:16:04.520
<v Speaker 8>launching in twenty six. Novo's got one they're expected to

0:16:04.560 --> 0:16:08.280
<v Speaker 8>file and then you know, Rush also has one kind

0:16:08.320 --> 0:16:11.080
<v Speaker 8>of in early to mid stage development too. On the

0:16:11.120 --> 0:16:13.920
<v Speaker 8>biotech front. You know, we're seeing moves for you know,

0:16:14.080 --> 0:16:17.920
<v Speaker 8>Viking structure turns, you know, all positive share price moves

0:16:17.920 --> 0:16:21.160
<v Speaker 8>today and they all hold or all JP ones in

0:16:21.200 --> 0:16:21.880
<v Speaker 8>their pipeline.

0:16:21.880 --> 0:16:22.120
<v Speaker 4>Two.

0:16:22.360 --> 0:16:23.280
<v Speaker 3>Hey, Mikey, can.

0:16:23.160 --> 0:16:26.720
<v Speaker 2>You put into just perspective the size of this obesity

0:16:27.440 --> 0:16:32.480
<v Speaker 2>market relative to other big verticals that drive these farmer companies.

0:16:34.360 --> 0:16:37.120
<v Speaker 8>I mean, I think the excitement around RABESTI is you

0:16:37.160 --> 0:16:40.880
<v Speaker 8>know one, it's you know, prevalence is rising. You got

0:16:40.880 --> 0:16:46.240
<v Speaker 8>forty percent of US adults at the moment they are obese,

0:16:46.560 --> 0:16:51.360
<v Speaker 8>and it's a relatively underpenetrated market. So I mean, you know,

0:16:51.560 --> 0:16:55.320
<v Speaker 8>penetration rates are you know, low single digits, you know

0:16:55.360 --> 0:16:57.960
<v Speaker 8>in the US at the moment, you know, probably even

0:16:58.040 --> 0:17:04.400
<v Speaker 8>lower elsewhere, you know, globally, And you know, we think

0:17:04.440 --> 0:17:06.480
<v Speaker 8>that this market could grow, you know, well in excess

0:17:06.480 --> 0:17:10.159
<v Speaker 8>of one hundred billion dollars. So yeah, I mean it's

0:17:10.160 --> 0:17:13.919
<v Speaker 8>a massive opportunity. I think in terms of you know,

0:17:14.040 --> 0:17:19.000
<v Speaker 8>drug classes, I think PD you know, immuno oncology PD

0:17:19.119 --> 0:17:21.480
<v Speaker 8>are one PD one drugs you know, with the kind

0:17:21.560 --> 0:17:23.960
<v Speaker 8>of biggest class to date in terms of sales. So

0:17:24.040 --> 0:17:27.840
<v Speaker 8>that's like your contruder Bristol ORPDVO, but you know GLP

0:17:27.960 --> 0:17:30.239
<v Speaker 8>ones could potentially surpass that.

0:17:30.640 --> 0:17:34.399
<v Speaker 6>So Michael, where does Fizer go from here after this setback?

0:17:36.280 --> 0:17:40.040
<v Speaker 6>Do they I mean, do they double down on OBESIT pills?

0:17:40.080 --> 0:17:42.320
<v Speaker 6>Do they do they try something new? What's the plan

0:17:42.400 --> 0:17:43.040
<v Speaker 6>here for Pfizer?

0:17:44.400 --> 0:17:46.720
<v Speaker 8>So, I mean they've got another oral jolp one in

0:17:46.760 --> 0:17:49.600
<v Speaker 8>their pipeline, So it's in phase one. It's being developed

0:17:49.600 --> 0:17:53.160
<v Speaker 8>for diabetes. Notatural you know whether or not they can

0:17:53.240 --> 0:17:56.919
<v Speaker 8>also look at that in obesity two. But clearly the

0:17:56.960 --> 0:17:59.679
<v Speaker 8>timeline here is the issue. You know, you've got oral

0:17:59.760 --> 0:18:02.520
<v Speaker 8>jill wants coming to market in twenty six onwards. You'll

0:18:02.520 --> 0:18:05.919
<v Speaker 8>probably have a wave of new treatments coming in, you know,

0:18:06.000 --> 0:18:09.119
<v Speaker 8>towards the end of the end of the decade. So

0:18:09.200 --> 0:18:10.760
<v Speaker 8>you know, we really think that Fiser is going to

0:18:10.800 --> 0:18:12.919
<v Speaker 8>have to go out, you know, either in license at

0:18:12.960 --> 0:18:15.639
<v Speaker 8>jilp one or do some sort of M and A.

0:18:16.160 --> 0:18:18.200
<v Speaker 8>They're well positioned to do that. You know, they've got

0:18:18.240 --> 0:18:21.320
<v Speaker 8>ten to fifteen billion of M and A firepower, you

0:18:21.359 --> 0:18:26.680
<v Speaker 8>know to four acquisitions. So that's really you know, how

0:18:26.720 --> 0:18:28.840
<v Speaker 8>we think that they're going to do, you know, play

0:18:28.880 --> 0:18:32.159
<v Speaker 8>catch up in this space in terms of you know,

0:18:32.200 --> 0:18:34.399
<v Speaker 8>I mentioned some biotechs out there that have you know,

0:18:34.480 --> 0:18:38.960
<v Speaker 8>quite appealing assets. You know, you've also got China too,

0:18:39.720 --> 0:18:41.960
<v Speaker 8>so you know we've seen some you know, very competitive

0:18:42.040 --> 0:18:45.440
<v Speaker 8>data in Chinese patients for some of those domestic players.

0:18:46.640 --> 0:18:49.000
<v Speaker 8>And you know we've seen the lights of Novo Astra

0:18:49.200 --> 0:18:51.960
<v Speaker 8>Mark kind of all kind of you know, delve into

0:18:52.000 --> 0:18:56.840
<v Speaker 8>China's R and D locker to essentially bolster their OBCI pipelines.

0:18:57.600 --> 0:18:59.639
<v Speaker 2>All right, hey, Mike, you know we much prefer to

0:18:59.680 --> 0:19:02.600
<v Speaker 2>talk to you than Sam Fazzelli. This is a nice refreshman.

0:19:02.840 --> 0:19:05.960
<v Speaker 2>So we hired Mikey Shaw like a million years ago.

0:19:06.000 --> 0:19:08.520
<v Speaker 3>He was a kid. Now he's a grizzled veteran.

0:19:08.680 --> 0:19:10.720
<v Speaker 2>I see little gray hair there, and he's one of

0:19:10.720 --> 0:19:14.360
<v Speaker 2>the leading pharmaceutical analysts all across Europe and we appreciate

0:19:14.359 --> 0:19:16.200
<v Speaker 2>getting a few minutes of his time. Mikey Shaw senior

0:19:16.200 --> 0:19:18.960
<v Speaker 2>Pharma and biotech analysts for Bloomberg Intelligence as part of

0:19:18.960 --> 0:19:22.119
<v Speaker 2>that just that great global healthcare team that we have

0:19:22.160 --> 0:19:25.360
<v Speaker 2>at Bloomberg Intelligence, led by Sam Fazzelli.

0:19:26.280 --> 0:19:30.959
<v Speaker 1>This is the Bloomberg Intelligence podcast, available on Apple, Spotify

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<v Speaker 1>and anywhere else you get your podcasts. Listen live each

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