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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am

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Speaker 1: Eastern on Apple, Cocklay and Android Auto with the Bloomberg

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Speaker 1: Business App. Listen on demand wherever you get your podcasts,

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Speaker 1: or watch us live on YouTube.

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Speaker 2: Bloomberg's Carmen Ryankey. Carmen is going to stay with us

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Speaker 2: because she wrote a very cool story on yet another

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Speaker 2: monster IPO that is you guessed it over subscribed. Carmen

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Speaker 2: talked to us about which deal you're looking at you.

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Speaker 3: Yeah, so we're looking at Sarah Bross Systems. So the

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Speaker 3: thing that's interesting here, So it's an artificial artificial intelligence

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Speaker 3: chip maker, data center operator. Obviously all the age right now,

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Speaker 3: we're seeing so much demand for these kinds of companies.

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Speaker 3: The company has upsized its initial public offering, so it's

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Speaker 3: now looking to raise nearly five billion. This is a

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Speaker 3: few so we had reported previously there was they had,

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Speaker 3: you know, a different price that they were seeking. And

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Speaker 3: this company also had applied for an IPO a few

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Speaker 3: months ago and with drawn nellisting and so they're back

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Speaker 3: to the public market here, but yeah, really significant. It's

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Speaker 3: expected to price later this week, so we'll be watching

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Speaker 3: for that day as well as well as the launch

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Speaker 3: of it.

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Speaker 2: Is unusual here, it's just the IPO price itself. Why

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Speaker 2: does it so high? One hundred and thirty five? Initially

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Speaker 2: it was one fifteen oh one twenty five. You don't

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Speaker 2: see that very.

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Speaker 3: Often, I know. Well, now we're seeing one fifty to

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Speaker 3: one sixty each. I mean, I think there's just so

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Speaker 3: much a demand in this category right especially we were

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Speaker 3: in this huge build out. We need data centers. There's

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Speaker 3: a chip shortage, so investors are really like clamoring for

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Speaker 3: more ways to play the AI trade.

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Speaker 4: I guess they don't need to make sure the price

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Speaker 4: is low because of what they do. They're an AI

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Speaker 4: chip maker, So if you want it, you got to

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Speaker 4: pay up.

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Speaker 2: Yeah, But it used to be we can back in

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Speaker 2: the day, you'd want to sell twenty to twenty five

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Speaker 2: percent of the deal to retail. In retail, it's a

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Speaker 2: lot easier to buy a twenty dollars stock or twenty

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Speaker 2: five dollars stock, just intuitively versus this now. But in

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Speaker 2: today's day and age, you can buy fractional shares and

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Speaker 2: that's how that gets done.

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Speaker 5: I guess, so I.

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Speaker 4: Mean, when bitcoins at eighty thousand, you think of that

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Speaker 4: as kind of the dividing line than like an IPO

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Speaker 4: at one hundred and twenty five, one hundred and thirty.

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Speaker 2: Okay, it's partly just gonna be a good I mean well,

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Speaker 2: to be an IPO banker. This year's going to be

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Speaker 2: just ripping, all right. This this deal's been led by Morgan, Stanley,

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Speaker 2: City Group, Barclay's and Ubs, so pretty.

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Speaker 4: Good they're getting paid. Yep, all right, Thank you so much.

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Speaker 4: Carmen Reinikey with the latest on our stock overs as

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Speaker 4: well as this upcoming IPO.

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Speaker 5: Stay with us.

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Speaker 4: More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android

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Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 2: Scarlett pu and Paul Sweeney live here in our Bloomberg

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Speaker 2: In Directive Broker Studio streaming live on YouTube as well.

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Speaker 5: Well.

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Speaker 2: Joran Powell's term as Federal Reserve Chair ends on May fifteenth.

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Speaker 2: You will, however, remain a member of the Board of

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Speaker 2: governors until January thirty first, twenty twenty eight, much to

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Speaker 2: the Shagrina, President Donald Trump here, and that is a

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Speaker 2: subject of our Big Take story on the Bloomberg terminal today.

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Speaker 2: Katerina Sarajeva, Federal Reserve reporter for Bloomberg News. She joins

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Speaker 2: us from our Houston bureau. Katerina, change is taking place

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Speaker 2: at the Federal Reserve. FED Chairman j Palell stepping down.

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Speaker 2: What is his legacy going to be?

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Speaker 5: You believe? Yeah?

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Speaker 6: I mean it's really interesting, right because he's had a

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Speaker 6: jam packed eight years this chair. We've seen a global

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Speaker 6: pandemic and all that that did to the economy. We

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Speaker 6: saw the run up in inflation after that, and I

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Speaker 6: think in any kind of normal time that that would

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Speaker 6: have been his legacy, his response to the pandemic, but

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Speaker 6: also kind of the FEDS delay in raising rates to

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Speaker 6: combat that high inflation. But now, you know, I think

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Speaker 6: a lot of people are looking to what's currently going

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Speaker 6: on between the FED chair and the presidents as perhaps

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Speaker 6: really marking Chair Powell's legacy, and that's kind of this

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Speaker 6: battle to keep the FED independent.

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Speaker 4: How do you anticipate J. Powell to behave as a

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Speaker 4: FED board member, but not the FED chair, because he's

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Speaker 4: going to stay on in his role as a member

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Speaker 4: of the board even as he hands reins as FED

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Speaker 4: chair over to Kevin.

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Speaker 6: Worsh Yeah, that's right, and it's an unusual step. We've

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Speaker 6: only ever seen this once before in history, and that

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Speaker 6: was in the late forties, early fifties, so it's been

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Speaker 6: a long time. We don't really have a blueprint for this,

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Speaker 6: but what he has said Chair Powell himself is that

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Speaker 6: he will take a very kind of low key approach

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Speaker 6: to this. He won't be, you know, we won't be

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Speaker 6: hearing from him a lot. He won't be trying to

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Speaker 6: act as kind of a shadow chair or anything like that.

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Speaker 6: So it really does seem like he wants to kind

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Speaker 6: of fade into the background a little bit, obviously do

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Speaker 6: his job as a governor, but not be too out

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Speaker 6: in the open about it. Really let the new chair

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Speaker 6: kind of take over.

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Speaker 2: So, Katerina, I'm sure President Trump would like to see

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Speaker 2: Jerome Powell just off the FED all together, but presumably

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Speaker 2: that would take some greater reassurance that mister Powell would

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Speaker 2: not have legal liability in the future. Are we anywhere

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Speaker 2: along those discussions are those discussions even being had.

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Speaker 6: Yeah, I mean, I think you're right about that. And

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Speaker 6: also I think he wants to see some or have

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Speaker 6: some sort of assurance that the FED itself also won't

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Speaker 6: be that there won't be further legal attacks against it.

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Speaker 6: So you know, that would be like the administration trying

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Speaker 6: to fire someone else at the FED. So, I mean,

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Speaker 6: we have a couple things happening right now. There is

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Speaker 6: an internal investigation going on that the FED is now

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Speaker 6: conducting itself into, uh into this the Powell's testimony last

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Speaker 6: year before Congress. This was the reason why we had

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Speaker 6: the the DOJ investigation in the fall and winter, why

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Speaker 6: we had these subpoenas against Powell. This is what started

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Speaker 6: this whole criminal process against him that has been passed

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Speaker 6: along to the FED, so that at some point we'll

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Speaker 6: get a report on that and they can make criminal

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Speaker 6: recommendations to the d J if they see fit. So

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Speaker 6: I think you'll want to see that through. And then

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Speaker 6: we're also waiting on a Supreme Court decision about Governor

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Speaker 6: Lisa Cook, who Trump tried to fire last year, So

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Speaker 6: I think he will also want to kind of see that,

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Speaker 6: I'm guessing. So there's a there's a few different things

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Speaker 6: kind of hanging in the air still.

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Speaker 4: When it comes to Powell's legacy, I think about how

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Speaker 4: Ben Bernanki his predecessor, created this president where there's a

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Speaker 4: news conference after every decision as opposed to after certain decisions.

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Speaker 4: What did j Powell do that kind of changed the

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Speaker 4: way the FED communicates with the public.

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Speaker 6: Yeah, so so Chair Bernanke started the press conferences, but

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Speaker 6: they were just quarterly when he and when then FED

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Speaker 6: Chair Jana Yellen were doing them. Powell actually is the

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Speaker 6: one that started doing them after every meeting.

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Speaker 4: I see, thinks, yeah, which.

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Speaker 6: Is so that that's definitely kind of a communication legacy

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Speaker 6: for him, and we'll see if that continues in the warshare.

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Speaker 2: Yeah, in addition to sitting on the FED board. We

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Speaker 2: as mister Powell said, whether what he will do now

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Speaker 2: he steps down from the FED chairmanship is you can

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Speaker 2: do anything outside of the FED.

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Speaker 6: No, And they usually don't. I mean, that's a full

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Speaker 6: time job. They usually you know, no one at the FED.

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Speaker 6: None of the FED policymakers right now have other jobs

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Speaker 6: or do anything else. That's their their sole focus. So

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Speaker 6: I wouldn't expect that from him and honestly, even if

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Speaker 6: he were to fully leave, or whenever he does fully

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Speaker 6: leave the FED, I don't know if we'll see him

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Speaker 6: do anything else. You know, he's in his seventies, he

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Speaker 6: has grandchildren that he talks about frequently, So I don't

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Speaker 6: know if we would if I would expect him to

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Speaker 6: do a lot, even after he leaves the FED.

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Speaker 4: Sounds like he's ready for retirement, as he stays on

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Speaker 4: the FED board but is no longer chair. Is he

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Speaker 4: going to be a prolific FED speaker? You know, if

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Speaker 4: you go to Eco, go on the Bloomberg terminal, you

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Speaker 4: can see which FED governors or FED officials will be speaking.

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Speaker 4: Do we expect j. Powell to do any of that?

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Speaker 6: I don't think so we're not much That's at least

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Speaker 6: what he's indicated. He said, you know, we won't be

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Speaker 6: hearing from him that much, So I mean I would

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Speaker 6: expect maybe every once in a while a speech, and

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Speaker 6: the governors do speak frequently, as you mentioned, so that

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Speaker 6: is normal for them. But I think because he has

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Speaker 6: you know this this he was or you know, is

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Speaker 6: the chair soon to be stepping down. But because he

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Speaker 6: has that background, I think he'll want to be careful

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Speaker 6: because it might come off as him trying to steer

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Speaker 6: the committee or kind of come back to that leadership role, right,

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Speaker 6: and he definitely does not, you know, has said he

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Speaker 6: doesn't want to be doing that.

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Speaker 1: Kevin D.

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Speaker 2: Walsh joining come into FED chair. What are the expectations

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Speaker 2: now within you know, Fed watchers about what he's going

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Speaker 2: to do in his first days and weeks.

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Speaker 6: Yeah, I mean it's really interesting. He has spent a

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Speaker 6: long time over the past few years. He's really written

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Speaker 6: a lot about what he would like to change at

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Speaker 6: the FED and some of the things he would like

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Speaker 6: to do, everything from how the FED communicates and to

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Speaker 6: how it thinks about inflation, the kind of models it uses,

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Speaker 6: even the FED staff. So he's said a lot of

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Speaker 6: these things. But we just don't know how quickly he's

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Speaker 6: going to be able to implement some of these changes,

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Speaker 6: or how quickly he'll want to. I mean, I imagine

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Speaker 6: that he'll probably want to kind of get a lay

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Speaker 6: of the land. You know, he was a FED governor

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Speaker 6: but fifteen years ago at this point, right, so a

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Speaker 6: long time ago. So I imagine maybe in the first

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Speaker 6: few weeks we won't see a lot of change yet,

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Speaker 6: and then gradually kind of over time, we'll start to

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Speaker 6: see some things change, but we'll just have to see.

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Speaker 6: We really don't know. We haven't gotten a lot of

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Speaker 6: specifics from him about you know, when he'll do the

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Speaker 6: things he wants to do.

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Speaker 4: All right, good stuff, Thank you so much. Katerina Sariva

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Speaker 4: is our Bloomberg News FED reporter joining us from Houston.

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Speaker 4: And I guess that gets to the point Paul, about

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Speaker 4: how the FED is a consensus driven organization institution. Is

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Speaker 4: that by tradition or is that by you know, by rules,

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Speaker 4: like is that kind of written.

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Speaker 5: I don't know.

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Speaker 2: I'm not sure, but I think it's you know, there's

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Speaker 2: oftentimes like to act with be union ANIMs have the

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Speaker 2: unanimous votes. But now we're getting some dissenters, and maybe

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Speaker 2: we'll get more dissenters going forward.

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Speaker 4: Yeah, that's certainly been the case over the last year.

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Speaker 4: The dissension. Something that's normal at the Bank of England

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Speaker 4: less normal right at the FED.

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Speaker 1: Stay with us.

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Speaker 2: More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 4: We want to focus in on what's going on in

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Speaker 4: the pharmer space, and especially you know, with a potential

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Speaker 4: change coming up at the head of the FDA. Sam

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Speaker 4: Vizzelli is our go to guy for all things pharma.

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Speaker 4: He is our director of research for Global Industries and

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Speaker 4: our senior pharmaceuticals analysts joining us right now from London. Sam,

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Speaker 4: the issue at hand is the future of the FDA

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Speaker 4: Commissioner Marty McCarey. There's a lot of tension and I'm

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Speaker 4: not sure if it's because there's clashing with rfk's MAHA

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Speaker 4: priorities or clashing with conservatives over things like the abortion

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Speaker 4: pill access, but there's a lot of unrest in the

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Speaker 4: FDA and the reports are that President Trump will be

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Speaker 4: replacing Martin McCay soon. What is the issue specifically from

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Speaker 4: where you see it?

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Speaker 5: Yeah, so, Scarlett, I mean the FDA since.

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Speaker 7: The change in administration, and they are obviously the appointment

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Speaker 7: of Robert Kennedy Junior to Hhshitch Overseas. Because some of

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Speaker 7: this has been in quite a bit of flux. The

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Speaker 7: Center for Drug Evaluation and Research, see that it takes

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Speaker 7: after drug approvals, looks after drug approvals.

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Speaker 5: That head has changed.

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Speaker 7: The Center for Biologics Evaluation and Research, which takes looks

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Speaker 7: after vaccines and gene therapies, et cetera, got a new head,

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Speaker 7: n A Prasad that had left as five which way

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Speaker 7: he was and then he came backing in and now

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Speaker 7: he's going again.

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Speaker 5: So there's been a lot of flux.

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Speaker 7: And when you get flux and they fired I don't

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Speaker 7: know three thousand, five hundred individuals, maybe I don't have

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Speaker 7: the exact number, but something in that sort of region,

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Speaker 7: you know, that's This is a lot of old time

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Speaker 7: knowledge that's left the agency.

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Speaker 5: Some refresh is pretty good, but that all of this

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Speaker 5: has happened under.

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Speaker 7: The the curre takership of Marty McCarey. And to all

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Speaker 7: instances and purposes, the folks I talk to say that

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Speaker 7: he's a perfectly knowledgeable, wonderful man. I have friends on

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Speaker 7: this on the by side who say to me that

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Speaker 7: he's been very good to them. And then on the

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Speaker 7: other hand, we hear all these issues and some biotics

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Speaker 7: having issues, et cetera. So I wouldn't be surprised if

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Speaker 7: there's something happening here.

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Speaker 4: What has Martin McCay done well? I mean, I think

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Speaker 4: about from a personal point of view, he's made estrogen

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Speaker 4: patches more accessible for women who are suffering through menopause,

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Speaker 4: and that's something he's written about in his book as well.

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Speaker 4: What has he done that, you know, will kind of

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Speaker 4: service his legacy if he does end up leaving.

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Speaker 7: Well, I think what was what's been good is that

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Speaker 7: he's much more available for us to hear from.

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Speaker 5: Do you know what I mean?

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Speaker 7: He does Twitter videos, sit downs and discusses and brings

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Speaker 7: ideas and wants to make animal.

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Speaker 5: Testing less uh required.

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Speaker 7: He wants to get drug development timelines shortened. They've done

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Speaker 7: some deals with air Faster Seneca and one of the

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Speaker 7: former company, Amgen. I think to try and reduce the

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Speaker 7: time of drug development, which gives farmer companies the.

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Speaker 5: Ability to bring drugs faster to patients.

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Speaker 7: What the problem is is that there's been all this

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Speaker 7: upheaval and issues with not knowing exactly what to expect

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Speaker 7: having had a deal with the FDA. When you go

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Speaker 7: back with your data and you know, bring some of

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Speaker 7: these things into public conversation where it shouldn't have been done.

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Speaker 7: So there's pluses and minuses here for and what the

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Speaker 7: FDA now needs is a solid a good, solid pair

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Speaker 7: of hands that just just get gets down to the

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Speaker 7: business of looking at the safety and efficacy of drugs. SAM.

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Speaker 2: If you know, when you talk to your pharma companies

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Speaker 2: and biotech companies, is it harder to get stuff done

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Speaker 2: today under this administration?

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Speaker 5: Easier?

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Speaker 2: About the same? Puts in takes kind of what's the

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Speaker 2: overall view.

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Speaker 5: Yeah, I would say it puts and takes. It's a

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Speaker 5: perfect phrase, yeah, because it depends who you talk to.

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Speaker 5: It depends whether you talk to the main public or

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Speaker 5: in private.

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Speaker 7: If you talk to you know, nobody wants to upset

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Speaker 7: the agency because if you already have some trouble or

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Speaker 7: some problem or some friction, why would you want.

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Speaker 5: To add to it.

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Speaker 7: So if you look at what companies are saying publicly,

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Speaker 7: everything's fine. But then companies go and say, well, you know,

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Speaker 7: we've had this drug discussion with the FDA. This was

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Speaker 7: what we were told to do, we did it, and

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Speaker 7: now they say no. So there's some of that going on,

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Speaker 7: which of course is reality. So I think it all

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Speaker 7: depends on who you talk to when you talk to

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Speaker 7: them in what's setting, you know, I think I think

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Speaker 7: that folks wouldn't mind the change here.

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Speaker 4: Before we you go, Sam, I got to ask you

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Speaker 4: about the hunt of virus that is been a big

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Speaker 4: issue with one of the cruise ships. We know that

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Speaker 4: Gene Hackman's wife passed away from this as well, and

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Speaker 4: so this is something that's kind of been percolating. But

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Speaker 4: how concerned should we be about the hunt of virus?

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Speaker 7: Yeah, and three people have perished on the boat, which

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Speaker 7: is obviously very sad. And I had with the current

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Speaker 7: knowledge that we have about these viruses, and there have

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Speaker 7: been other outbreaks before nineteen ninety three, there have been

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Speaker 7: transmissions to humans. It's a virus that doesn't transmit that easily.

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Speaker 7: It's not like COVID they just have to read someone's

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Speaker 7: breath in a restaurant and you catch it.

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Speaker 5: This is this requires.

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Speaker 7: Much closer contact, much higher duration of exposure, and quarantine

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Speaker 7: is the best way to silence it.

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Speaker 5: And but you need a functioning CDC that's.

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Speaker 7: On the ball finding people who have traveled back and

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Speaker 7: isolating them and finding their contacts and isolating them.

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Speaker 5: That's the best way to do it.

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Speaker 7: Don't forget, though, Scarlet viruses do have a nasty habit

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Speaker 7: of mutating, so we should always have that little thing

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Speaker 7: in the back of our mind that what we don't

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Speaker 7: want to happen. The more you allow it to transmit

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Speaker 7: to people, the more chancey gets.

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Speaker 4: Well, said Sam Fazelli. He is our director of Research

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Speaker 4: for Global Industries and senior pharmaceutols analysts for Bloomberg Intelligence,

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Speaker 4: joining us from London. A lot to cover here in

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Speaker 4: the world of biotech.

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