# Lululemon Shares Sink to eight Year Low on Disappointing Outlook

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 5 Jun 2026, 24 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/4f7b92c1-74e7-4dcc-ad60-b46001139182/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney, Scarlet Fu, and Kristine Aquino - Poonam Goyal, Senior U.S. E-Commerce and Retail Analyst at Bloomberg Intelligence, discusses Lululemon earnings. Lululemon Athletica shares fell to their lowest level in eight years after the company cut its annual forecast due to deteriorating performance in North America. -Matthew Bloxham, Bloomberg Intelligence Senior and Tech Analyst, discusses the top tech stories. Broadcom Inc. CEO Hock Tan said the company is now less focused on dealmaking because AI offers stronger growth potential. Matthew also discusses SpaceX’s IPO. -Bailey Lipschultz, Bloomberg News Senior Equities Reporter, discusses SpaceX’s IPO. SpaceX has received orders for more than the shares available in its $75 billion initial public offering, according to people familiar with the matter. -Jessica Nix, Bloomberg Health Reporter, discusses the Bloomberg Big Take story: “Ebola Exposes How Aid Cuts Hollowed Out Global Disease Defenses.” The world's outbreak defenses were rebuilt after the 2014 Ebola epidemic. Now a new crisis in Congo is testing what remains after deep aid cuts and health program rollbacks. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
[0:10] Speaker 1: Bloomberg Intelligence podcast. Catch us live weekdays at ten am
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[0:21] Speaker 1: or watch us live on YouTube.
[0:24] Speaker 2: You mentioned Lululemon and the Big Fan. Are you yes?
[0:28] Speaker 2: What have you brought from Lula?
[0:29] Speaker 3: No, it's not that I wear them. I appreciate them
[0:31] Speaker 3: among other people.
[0:32] Speaker 4: Oh I see, okay, so you happen a buyer, probably
[0:34] Speaker 4: as gifts.
[0:35] Speaker 3: Uh yeah, but when I talk to buyers or prospective
[0:38] Speaker 3: buyers like you or Lisa Mitteo or Lexus christoffers, the
[0:43] Speaker 3: theme is really good products. Befoy they're expensive.
[0:46] Speaker 4: Yeah, they were kind of the first mover on really
[0:49] Speaker 4: good products. But then a lot of copycats came around,
[0:51] Speaker 4: and guess what, they've all figured out how to do
[0:53] Speaker 4: it pretty well too, for a lower price. Put On
[0:56] Speaker 4: goyelis our senior US e commerce and retail analysts here
[0:58] Speaker 4: Bloomberg Intelligence, and she joins us now with more on
[1:01] Speaker 4: Lulu Lemon. And this has been kind of the challenge
[1:03] Speaker 4: for Lulu Lemon for a while. Now this is not
[1:06] Speaker 4: a new problem, that there's so much competition out there
[1:09] Speaker 4: and that the quality that Lulu Lemon is known for,
[1:12] Speaker 4: you're now seeing it at other companies. What has been
[1:16] Speaker 4: the response, because I feel like they haven't figured that
[1:18] Speaker 4: out yet.
[1:20] Speaker 5: No, they haven't. You know, the problem continues to linger.
[1:22] Speaker 5: But the problem is more than just competition. Competition is
[1:25] Speaker 5: one thing. Lul Lemon's had competition for years. The issue
[1:28] Speaker 5: is really the product at its core, and the product
[1:31] Speaker 5: in North America, especially across the women's business, they don't
[1:34] Speaker 5: have a good lineup of product. The product that they're
[1:37] Speaker 5: introducing isn't fully resonating with shoppers. It's a hit or miss.
[1:41] Speaker 5: In most cases. The pipeline to bring new product to
[1:44] Speaker 5: market is very long and they need to shorten that.
[1:48] Speaker 5: So this is more in my eyes, a product execution
[1:52] Speaker 5: miss than competition. Competition does play a part in it,
[1:55] Speaker 5: but I think, you know, not having the right product
[1:58] Speaker 5: just adds more to the tension and the downside.
[2:00] Speaker 3: And put them you've covered retail for years and years
[2:03] Speaker 3: and years and you've seen companies struggle with product and
[2:07] Speaker 3: product innovation. How do you fix that kind of thing?
[2:11] Speaker 3: Is it just hiring the right person? Or is it
[2:13] Speaker 3: changing your process? How do you do that right?
[2:16] Speaker 5: So I think there's two ways to think about it.
[2:18] Speaker 5: When a company like Lululemon or even a Nike, they
[2:21] Speaker 5: have such great brand equity and heat that they can
[2:24] Speaker 5: use that to their advantage. What they need is a
[2:26] Speaker 5: product led person. They need innovation and products, so they
[2:29] Speaker 5: need the execution on the product side. And once they
[2:32] Speaker 5: have that, because they have the brand heat, because they
[2:36] Speaker 5: have the brand loyalty, people do come back. So I
[2:41] Speaker 5: don't think it's women are not wanting to shop lul Lemon.
[2:45] Speaker 5: They don't have what they want there. It's no longer
[2:48] Speaker 5: providing it innovation fast enough, and others are coming into
[2:53] Speaker 5: the picture. So I do think when Heidi comes on
[2:56] Speaker 5: board in September, you know there's a lot of I
[3:00] Speaker 5: guess there are a lot of people who are critical
[3:02] Speaker 5: of her appointment, But I think the one thing that
[3:05] Speaker 5: she does come with is a product led background, and
[3:08] Speaker 5: should she be able to improve just speed to market
[3:11] Speaker 5: and the product lineup. I think that's a step forward
[3:14] Speaker 5: for Lulu Lemon. The rest of it is still uncertain,
[3:16] Speaker 5: but I think that will give them a leg up.
[3:19] Speaker 5: But I don't expect to see that until you know
[3:21] Speaker 5: mid twenty twenty seven. She comes in in September and
[3:25] Speaker 5: things are sliding as we speak into the year, with
[3:28] Speaker 5: sales expected to be down at the midpoint.
[3:31] Speaker 2: So it's going to take time.
[3:32] Speaker 4: And you mentioned that the selection, the product selection is
[3:35] Speaker 4: a challenge here in North America, but we've seen that
[3:39] Speaker 4: Lula Lemon does fairly well overseas. Why is that? Is
[3:42] Speaker 4: it because the competition is just isn't there. There's still
[3:44] Speaker 4: a freshness factor with the brand over there.
[3:47] Speaker 5: So the brand is much smaller internationally, right, so that
[3:50] Speaker 5: makes the difference. Also the competition, Yes, you could argue that,
[3:53] Speaker 5: we know you're talking about the Aloes of the World
[3:56] Speaker 5: and others. It's probably more competitive here than it is
[3:59] Speaker 5: in China for them, But it really comes down to
[4:02] Speaker 5: the base. Lula Lemon's biggest business is in North America,
[4:06] Speaker 5: and while China is still up in thirty percent, it's
[4:10] Speaker 5: off a much smaller base.
[4:13] Speaker 3: What are they saying about China here because they're one
[4:16] Speaker 3: of the companies that you covered that are one of
[4:17] Speaker 3: the many companies you cover that do have exposure there.
[4:20] Speaker 5: So Lula Lemon is actually doing better than the other
[4:22] Speaker 5: at leisure competitors in China. However, in the quarter there
[4:26] Speaker 5: was a little hiccup given the negative backlash that they
[4:29] Speaker 5: had in the news. China sales did trail a little
[4:33] Speaker 5: in the quarter, but since have recovered, so we think
[4:37] Speaker 5: China will be okay. But China is also sensitive to
[4:41] Speaker 5: product quality news and other news that lul Lemon has
[4:44] Speaker 5: to face from consumers.
[4:48] Speaker 2: What about the role of Chip Wilson.
[4:50] Speaker 4: He's the founder of Lululemon, and he's been agitating for changes.
[4:54] Speaker 2: It feels like he's.
[4:55] Speaker 4: In conflict with the current management and they're kind of
[4:59] Speaker 4: trying to work with him because obviously he has hit
[5:02] Speaker 4: upon some soft points for the company and they recognize
[5:05] Speaker 4: that his criticism is valid. Is there path forward for
[5:09] Speaker 4: them to work together.
[5:11] Speaker 5: It's already in place. The last announcement we heard from
[5:14] Speaker 5: Chip Wilson was that the members, some of the members
[5:17] Speaker 5: he is appointing to the board are of his choice.
[5:20] Speaker 5: So that should help attentions resolve between Lula Lemon and
[5:24] Speaker 5: Chip Wilson. And he will have access to Heidi when
[5:26] Speaker 5: she joins in September, so there will be dialogue and
[5:30] Speaker 5: how to move Lulua Lemon forward and really get it
[5:32] Speaker 5: out of the stump that it's in, and hopefully as
[5:35] Speaker 5: they work together. He is the founder, he is a
[5:38] Speaker 5: visionary behind Lululemon, so I do think he'll have a
[5:42] Speaker 5: lot to add to the conversation, and as they take
[5:45] Speaker 5: his input bring their own input into place, they could
[5:48] Speaker 5: start to lead a turnaround. But once again, it's all
[5:51] Speaker 5: about the execution, and we won't know more until the
[5:54] Speaker 5: end of this year until we hear from Heidi, hear
[5:57] Speaker 5: her plans, hear her vision, and then to execute that
[6:00] Speaker 5: is another six to twelve months.
[6:02] Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
[6:09] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[6:13] Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto
[6:16] Speaker 1: with the Bloomberg Business app. Listen on demand wherever you
[6:19] Speaker 1: get your podcasts, or watch us live on YouTube.
[6:23] Speaker 3: Let's get back to the world of technology. Technology taking
[6:25] Speaker 3: it on the chin here today the Philly Semi Index
[6:29] Speaker 3: down about five percent, bringing down the overall Nasdaq down
[6:32] Speaker 3: about two point two percent here, but let's be honest,
[6:35] Speaker 3: these things have been just ripping forever. Here. Let's check
[6:38] Speaker 3: in when somebody does this stuff for a living. Matthew Bloxham.
[6:40] Speaker 3: He covers all the TMT stuff for Bloomberg Intelligencies based
[6:44] Speaker 3: in London here, so rough day for the semis here,
[6:48] Speaker 3: Matt's what's going on out there in the world of
[6:50] Speaker 3: technology when you talk to tech investors, because this AI
[6:53] Speaker 3: trade just seems like it's got so much legs left
[6:56] Speaker 3: in it.
[6:58] Speaker 6: Yeah, and you know how a great run for the
[7:02] Speaker 6: last few weeks and months. We've been talking about that
[7:05] Speaker 6: a little bit here. It's actually at the desk, and
[7:08] Speaker 6: you know, I think at least to some degree, you
[7:11] Speaker 6: have to think that people are making a little bit
[7:13] Speaker 6: of room for the SpaceX IPO and what they hope
[7:16] Speaker 6: will be a location, you know, because you kind of feel,
[7:20] Speaker 6: I mean, who knows where people are going to get
[7:21] Speaker 6: the money from, but you would think that it's going
[7:24] Speaker 6: to come from from some of the other big tech holdings. Yeah,
[7:27] Speaker 6: we should arguably probably bigger holdings and more liquid So
[7:31] Speaker 6: that that's our sense that, you know, at least to
[7:33] Speaker 6: some degree, it's a little bit of liquidity for that.
[7:38] Speaker 7: Yeah.
[7:39] Speaker 6: Well.
[7:39] Speaker 2: Now, of course broad Com in the.
[7:41] Speaker 8: News this week because even though it was a solid
[7:43] Speaker 8: set of results, it was still disappointing because such high
[7:46] Speaker 8: expectations for all of these are companies here. But you know,
[7:50] Speaker 8: one of the details that we've got is that the
[7:52] Speaker 8: CEO saying AIR growth is so strong they're not even
[7:55] Speaker 8: looking at acquisitions.
[7:56] Speaker 2: They're thinking that it's a distraction.
[7:58] Speaker 8: Where does that tell you where are in terms of
[8:01] Speaker 8: the AI infrastructure spending cycle at recent in the early inning,
[8:04] Speaker 8: So you're given that view.
[8:07] Speaker 6: Yeah, I think so. I think it also talks to
[8:09] Speaker 6: the fact that that they feel like they're executing well
[8:12] Speaker 6: against their plan. And actually when you when you look
[8:15] Speaker 6: at the numbers, the numbers will tell you they are
[8:18] Speaker 6: because you'll see that the big part of the plan
[8:20] Speaker 6: is to pivot towards AI. In the quarter, they reported
[8:23] Speaker 6: that AI sales were up one hundred and forty three percent,
[8:27] Speaker 6: and if I've remembered it correctly, you know for the
[8:30] Speaker 6: forward quarter guide they're talking about a more than two
[8:33] Speaker 6: hundred percent increase in AI revenue. So yeah, you know
[8:37] Speaker 6: that that board guide was a little bit shy of
[8:39] Speaker 6: where the market was. Your sixteen billion dollars of revenue
[8:43] Speaker 6: versus seventeen, but you know, that's a huge, huge growth rate,
[8:48] Speaker 6: and so I think it tells you that they're comfortable
[8:50] Speaker 6: that they've got all the assets and capables they need
[8:54] Speaker 6: to deliver on the plan.
[8:56] Speaker 3: Matt, you mentioned SpaceX, and of course it's They started
[9:00] Speaker 3: their room show yesterday and I think they're in New
[9:04] Speaker 3: York today and maybe a couple more dates here in
[9:07] Speaker 3: the US. Do you know if SpaceX is coming to London?
[9:11] Speaker 6: I don't know actually for sure. I mean, I guess
[9:14] Speaker 6: it's certainly a possibility, but I've not seen any specific plans.
[9:19] Speaker 3: What's the when you talk to folks, what's the feeling
[9:22] Speaker 3: about SpaceX, Because obviously it's if you're looking for a
[9:25] Speaker 3: pure play kind of on Elon musk in it, which
[9:28] Speaker 3: has got a space component to it, you know, a
[9:32] Speaker 3: kind of a telecoms component to it and as well
[9:34] Speaker 3: as an AI component. What are the discussions you're having
[9:38] Speaker 3: with your clients.
[9:40] Speaker 6: You know, it's incredibly polarized. Maybe not that surprisingly, you know,
[9:46] Speaker 6: I mean, I think the opportunity and ambition they set
[9:51] Speaker 6: out in the S one filing is almost overwhelming. There's
[9:55] Speaker 6: so many parts to it, and it's so big. You know,
[9:58] Speaker 6: there's twenty eight and a half trillion dollar mark opportunity
[10:00] Speaker 6: they talk about, and when you see some of the
[10:02] Speaker 6: components that go into that, particularly things like the orbital
[10:06] Speaker 6: data center strategy, you know, the the ambition they have
[10:10] Speaker 6: for the Starship rocket launch platform. I think some people
[10:15] Speaker 6: kind of find it a little bit hard to grasp.
[10:17] Speaker 6: But you know, at the other other end, you know,
[10:19] Speaker 6: some of these things could be really quite profound in
[10:22] Speaker 6: how they shake up, you know, existing markets, you know,
[10:27] Speaker 6: the data infrastructure, the data center infrastructure market that the
[10:31] Speaker 6: big AI players like Anthropic and Open Eyes Open Eyes.
[10:34] Speaker 6: So this has really quite significant implications for all the
[10:38] Speaker 6: big parts of the market. And yeah, it's really really
[10:41] Speaker 6: spilling people right down the middle. You know, some people
[10:44] Speaker 6: are just kind of very much brought into the Elon
[10:47] Speaker 6: masterrink in that chool aid And at the other end,
[10:50] Speaker 6: you just cout people thinking, you know this, you know,
[10:54] Speaker 6: this isn't going to play out the way the market thinks.
[10:58] Speaker 6: And you know, I think certainly obviously we've seen some
[11:00] Speaker 6: numbers today in terms of what the lead banks are
[11:04] Speaker 6: pitching in terms of the revenue growth opportunity. You know,
[11:07] Speaker 6: we're talking about adding four hundred billion dollars of revenue
[11:11] Speaker 6: and in five years and continuing to grow beyond that,
[11:16] Speaker 6: a four fifty to five hundred billion dollar revenue number.
[11:20] Speaker 6: We put them in the top ten listed companies by
[11:22] Speaker 6: sales in the world. Is there's only really Amazon and
[11:26] Speaker 6: Walmart that would be substantially bigger than that. So it's
[11:30] Speaker 6: an enormous task to kind of scale your business quite
[11:33] Speaker 6: that quickly, and to do that you need a huge
[11:36] Speaker 6: amount of infrastructure. And I guess one of the questions
[11:39] Speaker 6: would be, can they really deploy enough infrastructure even if
[11:42] Speaker 6: the market is there? Can they deploy the infrastructure quickly
[11:46] Speaker 6: enough to kind of get the revenue flywheel going so quickly?
[11:52] Speaker 2: Stay with us more from Bloomberg Intelligence coming up after this.
[11:57] Speaker 1: You're listening to the Bloomberg Intelligence. Catch us live weekdays
[12:02] Speaker 1: at ten am Eastern on Applecarplay and Android Auto with
[12:05] Speaker 1: the Bloomberg Business App. Listen on demand wherever you get
[12:08] Speaker 1: your podcasts, or watch us live on YouTube.
[12:12] Speaker 3: SpaceX is on the road. They started their road show yesterday.
[12:15] Speaker 3: Their scheduled to price this ipo, the seventy five billion
[12:18] Speaker 3: dollar IPO, next Thursday, after the close to trade on Friday.
[12:23] Speaker 3: So that is the schedule. Let's get the latest reporting there.
[12:26] Speaker 3: Billy Lipschultz, Senior Equities reporter for Bloomberg News joints is here,
[12:29] Speaker 3: So Billy, it looks like so they kicked it off yesterday.
[12:31] Speaker 3: What did we know? What did we hear? Anything new?
[12:35] Speaker 9: Not much new we did have yesterday evening Jamie Diamond
[12:39] Speaker 9: interviewed Elon Musk for about a half hour that was
[12:41] Speaker 9: streamed on x that was broadcast to I believe about
[12:44] Speaker 9: ninety JP Morgan Branch's number of high networth individuals attended
[12:48] Speaker 9: here in New York attended around the country. Not really
[12:52] Speaker 9: anything groundbreaking from Elon from that conversation, but certainly got
[12:55] Speaker 9: people pretty jacked up that the man himself was kind
[12:58] Speaker 9: of participating in this coinsation with Jamie Diamond.
[13:01] Speaker 3: But we did break about an hour ago.
[13:03] Speaker 9: I believe that they have officially over called the book
[13:06] Speaker 9: over subscribed, so they've officially had more than seventy five
[13:09] Speaker 9: billion dollars of orders placed, which is a pretty quick turn,
[13:13] Speaker 9: though not completely unsurprising just given how these deals are
[13:16] Speaker 9: going to go.
[13:17] Speaker 8: Yeah, well, what's the word industry, I mean mega mega IPO,
[13:20] Speaker 8: big size. But any concerns at all that the market
[13:23] Speaker 8: is not going to be able to handle this in
[13:25] Speaker 8: terms of digesting it or really everyone's just let's go buy.
[13:29] Speaker 3: In well, I think that the debate is do you
[13:32] Speaker 3: believe in Elon Musk? Yes or no?
[13:33] Speaker 9: Is kind of the first start. I think when you
[13:36] Speaker 9: talk to investors, yes, there are a number of caveats
[13:39] Speaker 9: around the deal in particular, but like Google able to
[13:42] Speaker 9: raise about eighty billion dollars, north of eighty billion dollars
[13:44] Speaker 9: kind of assured a lot of people that there's plenty
[13:47] Speaker 9: of cash either on the sideline or can be pulled
[13:49] Speaker 9: out of things like bitcoin other assets. So it doesn't
[13:52] Speaker 9: seem like there's any concern about the ability to have
[13:54] Speaker 9: investors show up in size for seventy five billion dollars
[13:56] Speaker 9: you had on the green shoe, north of eighty billion dollars.
[13:59] Speaker 9: I think the big question will be A how does
[14:00] Speaker 9: it trade after that? And B how are these bankers
[14:03] Speaker 9: thinking about allocation? Are we going to see, you know,
[14:05] Speaker 9: the PIFs of the world, these big funds showing up
[14:08] Speaker 9: in size for five, ten, fifteen billion dollar orders, or
[14:11] Speaker 9: is retail actually going to take down thirty percent of
[14:14] Speaker 9: this deal like we had reported, was kind of the
[14:16] Speaker 9: ceiling Because you do the math, that's north of twenty
[14:18] Speaker 9: billion dollars going just to individual investors, which is something
[14:21] Speaker 9: we have never seen before.
[14:24] Speaker 3: We were talking to Matthew Blocks, some TNT analyso Bloomberg
[14:26] Speaker 3: Intelligence in London. He was saying that, you know, he's
[14:29] Speaker 3: talked to some clients and about the today's saw off
[14:31] Speaker 3: in the NASDAC and the Philly stock in Stock Exchange
[14:36] Speaker 3: semi indexes down about six percent today. Maybe that's a
[14:38] Speaker 3: little selling to raise some capital to invest in SpaceX
[14:43] Speaker 3: coming up, and maybe even some of the other ai
[14:45] Speaker 3: ones coming around. Is that something you're hearing?
[14:48] Speaker 9: Yes, and now I think when I talked to people
[14:52] Speaker 9: who manage a lot of money, this has been the
[14:54] Speaker 9: worst kept secret of all time. They've been meeting with
[14:56] Speaker 9: SpaceX management since January right in taking these trips. This
[15:01] Speaker 9: targeted range, in targeted size has been discussed.
[15:03] Speaker 3: For six months.
[15:04] Speaker 9: At this point, I just want to call out, Yes,
[15:07] Speaker 9: that's a good point. The socks is down six percent,
[15:09] Speaker 9: it's up eighty one percent a year. Yeah, So I
[15:12] Speaker 9: don't think, at least from my conversations, anyone is saying
[15:15] Speaker 9: weakness on Thursday and Friday is because people need clear capacity.
[15:18] Speaker 3: One other interesting news point for SpaceX. I guess some
[15:21] Speaker 3: of the other ai I tast coming is the s
[15:24] Speaker 3: and P has said they've been a fast track entrance
[15:27] Speaker 3: into the index. What does that mean?
[15:28] Speaker 9: So SMP was reviewing a rule change that would add
[15:33] Speaker 9: some of these companies in six months instead of twelve months.
[15:35] Speaker 9: We saw Nasdaq cut their timeline down to fifteen days.
[15:38] Speaker 9: Some of the footsies kind of exchanges are now like
[15:42] Speaker 9: five days, so even shorter. I think the bigger news
[15:45] Speaker 9: point in that lack of a change from the S
[15:48] Speaker 9: and B five hundred is not the shorter timeline six
[15:50] Speaker 9: months twelve months. When I talk to people who cares,
[15:53] Speaker 9: they were considering waving that you needed to be net
[15:56] Speaker 9: income positive for twelve months. So you say, what does
[15:59] Speaker 9: that mean for SpaceX, Well, they were negative. They wouldn't
[16:02] Speaker 9: be eligible anyway if this rule change doesn't happen. And
[16:04] Speaker 9: the bigger question from there is Anthropic and Open AI.
[16:08] Speaker 9: They can pull some accounting levers, but these are two
[16:10] Speaker 9: companies that people do not expect to be netting compositive
[16:14] Speaker 9: for quite some time. Does that mean Anthropical IPOs later
[16:17] Speaker 9: this year? But it's not in the S and P
[16:18] Speaker 9: five hundred until twenty thirty one. I mean that's a
[16:21] Speaker 9: pure speculation. But when you look at SMP at least
[16:24] Speaker 9: for now, sticking from to those rules, these are companies
[16:27] Speaker 9: that are not going to be the SMP five hundred.
[16:29] Speaker 9: They will be in the NASZAQ one hundred if they
[16:30] Speaker 9: choose a list on NASAK much more quickly. How does
[16:33] Speaker 9: that change how we market watch and how does that evolve,
[16:36] Speaker 9: especially when you think about micro Strategy being in NAZAQ
[16:39] Speaker 9: one hundred. But SMP saying no thanks, Michael Saylor stated,
[16:43] Speaker 9: whatever you're.
[16:43] Speaker 8: Doing, yeah, yeah, And what do you think is a
[16:45] Speaker 8: driver for that decision? Is it kind of the sb
[16:48] Speaker 8: prioritizing market stability over the hype that some of these
[16:51] Speaker 8: IPOs bring.
[16:52] Speaker 9: We haven't heard firmly there is a committee that makes
[16:56] Speaker 9: this decision. When I've talked to people around kind of
[16:59] Speaker 9: their view and again just their speculation, their reading of
[17:01] Speaker 9: the teele uses. SMP has an objective that they want
[17:05] Speaker 9: to reach, and that is making sure the s and
[17:07] Speaker 9: P five hundred has companies that are liquid, companies that
[17:10] Speaker 9: have a fair amount of free float, and companies that
[17:13] Speaker 9: kind of meet their bar. They didn't want to change
[17:16] Speaker 9: that right now. Again, is this something that is reviewed
[17:20] Speaker 9: in six months?
[17:20] Speaker 3: Again? I do not know.
[17:21] Speaker 9: I don't think anyone knows, but for this kind of
[17:24] Speaker 9: point in time, they are sticking to their hurdles, their
[17:28] Speaker 9: thresholds that they want to be met, and we're not
[17:31] Speaker 9: kind of at least reconsidering. Similar to what we saw
[17:34] Speaker 9: with Nasdaq one hundred. They're in exchange. They benefit from
[17:37] Speaker 9: having spacexlists on their exchange.
[17:39] Speaker 3: They make money from that.
[17:42] Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
[17:49] Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
[17:53] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
[17:56] Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
[17:59] Speaker 1: you get your or watch us live on YouTube.
[18:03] Speaker 3: Let's get to the big take story here. We like
[18:05] Speaker 3: to focus on the big take stories on the Bloomberg terminal.
[18:08] Speaker 3: These are the stories that are just really important stories.
[18:12] Speaker 3: A lot of resources get invested in these stories, deep
[18:16] Speaker 3: deep reporting, deep deep sourcing. Oftentimes some really cool graphics,
[18:20] Speaker 3: which makes it good for me, that helps me understand
[18:23] Speaker 3: a lot of stuff. Today's no different talks about Ebola.
[18:27] Speaker 3: The Ebola exposes how AID cuts hollowed out global disease defense.
[18:32] Speaker 3: Is a strain with no known treatment or vaccine is
[18:34] Speaker 3: spreading fast and the international system built to contained outbreaks
[18:38] Speaker 3: is in crisis. Let's learn more about this with one
[18:41] Speaker 3: of the writers and one of the reporters on the story,
[18:43] Speaker 3: Jessica and Nick Bloomberg, Health reporter. What you find here, Jessic,
[18:48] Speaker 3: Because this is ebola case over in Africa, it seems
[18:50] Speaker 3: far away. It seems a little bit back burner for
[18:53] Speaker 3: a lot of us here in the US because we
[18:54] Speaker 3: have the war with a brand, we have lots of
[18:55] Speaker 3: other issues. What did your reporting find out.
[18:58] Speaker 7: Well, there's a lot going on with this particular ebola outbreak.
[19:01] Speaker 7: This is the first time we've seen this strain really
[19:04] Speaker 7: explode like it has because there's no vaccine, there's no treatment,
[19:08] Speaker 7: and then compounded on top of that, the US is
[19:10] Speaker 7: largely left a lot of our Global Health partners and
[19:13] Speaker 7: some other G seven countries, including the UK and Germany
[19:17] Speaker 7: have also pulled back on some of their global health
[19:19] Speaker 7: funding as well. So because of a lot of these
[19:22] Speaker 7: countries pulling back, this virus has been able to spread
[19:25] Speaker 7: a lot of the people on the ground and the
[19:27] Speaker 7: NGO partners, mutual aid partners, a lot of those formal
[19:30] Speaker 7: and even informal networks that would be doing contract tracing
[19:33] Speaker 7: or surveillance. A lot of that has been dismantled as well,
[19:35] Speaker 7: so that's why it's been exploding in this area now.
[19:38] Speaker 8: The story paints Eastern Congo is one of the hardest
[19:41] Speaker 8: places in the world to contain an outbreak. What about
[19:44] Speaker 8: that region is makes the response to this outbreak uniquely challenging.
[19:49] Speaker 7: There's a lot of unique challenges to this one. The
[19:51] Speaker 7: geography is very interesting, but also it is an area
[19:54] Speaker 7: that's riddled with conflict right now, so that makes it
[19:56] Speaker 7: even harder for some of these AID workers to be
[19:58] Speaker 7: able to go into the area and talk to people
[20:00] Speaker 7: about the dangers of this virus, about safe burial practices
[20:04] Speaker 7: as well. Ebola is at its highest infection peak after
[20:08] Speaker 7: a person has already died, and so in this area,
[20:11] Speaker 7: people are in their burial practices really interact with dead
[20:15] Speaker 7: bodies and so that's why we're seeing it spread a
[20:17] Speaker 7: lot too, because they just don't know how to handle
[20:20] Speaker 7: these bodies, which is really sad.
[20:22] Speaker 3: Well, we've seen President Trump and Elon Musk with those
[20:25] Speaker 3: cut back on us AID. How much has that impacted
[20:28] Speaker 3: this situation or is it is this an area where
[20:30] Speaker 3: maybe we didn't have a presence.
[20:32] Speaker 7: Well, former health officials from the US say that this
[20:35] Speaker 7: has had a huge impact in terms of how we
[20:38] Speaker 7: are responding to this outbreak, because again, those formal and
[20:42] Speaker 7: informal networks are no longer there. USAID was cut back
[20:46] Speaker 7: by eighty three percent last year under DOGE. A lot
[20:49] Speaker 7: of that's been moved under the State Department. State Department officials, though, say,
[20:53] Speaker 7: you know, this has had no impact in terms of
[20:55] Speaker 7: our response, and that within twenty four hours of being
[20:57] Speaker 7: notified of this outbreak that they were able to deploy resources.
[21:01] Speaker 7: The State Department has mobilized about one hundred and sixty
[21:03] Speaker 7: two million dollars to the outbreak area, specifically to eastern
[21:07] Speaker 7: Congo and to Uganda as well.
[21:10] Speaker 8: No, that we've seen kind of more of an outbreak
[21:12] Speaker 8: hatching focus. Once again, is there a sense that some
[21:17] Speaker 8: of the countries that have pulled back funding in communing
[21:20] Speaker 8: the US would reverse list positions.
[21:23] Speaker 7: There isn't a sense of that yet. They are pulling
[21:25] Speaker 7: a lot of resources into the balla response now, but
[21:28] Speaker 7: there's no indication that the US, for example, would rejoin
[21:31] Speaker 7: the World Health Organization that's really leading the global coordination
[21:34] Speaker 7: on this response.
[21:35] Speaker 3: So the US did withdraw from the World Health Organization
[21:39] Speaker 3: in early twenty twenty five. I would think that that
[21:44] Speaker 3: would be pretty impactful because I'm sure we were funding
[21:46] Speaker 3: most of it, a lot or a lot of it, Oh,
[21:49] Speaker 3: very impactful.
[21:50] Speaker 7: The US was the biggest donor to the World Health Organization,
[21:54] Speaker 7: so by pulling out of the World Health Organization, their
[21:55] Speaker 7: budgets are completely decimated.
[21:57] Speaker 3: So it raises a question, like a lot of other things,
[21:59] Speaker 3: is US pools back the mends? For example, it's time
[22:03] Speaker 3: for you guys to step up. Have we seen Europe?
[22:05] Speaker 3: Have we seen other parts of the world step up
[22:07] Speaker 3: to maybe fund what the US was funding?
[22:10] Speaker 7: Actually, no, we've actually seen the opposite. Some of these
[22:13] Speaker 7: countries have pulled back on their funding.
[22:16] Speaker 8: Wow ending Yeah, that doesn't seem very promising at all.
[22:22] Speaker 8: I mean, prior to kind of the big outbreak, were
[22:25] Speaker 8: there any kind of early signs that response capabilities and
[22:29] Speaker 8: surveills were already deteriorating.
[22:32] Speaker 7: There were some early signs just because this virus was
[22:35] Speaker 7: spreading for a while, there were rumors about this type
[22:38] Speaker 7: of fever going around, but because this type of strain
[22:42] Speaker 7: is a little bit rarer, no testing was able to
[22:45] Speaker 7: pick it up. And then it also makes it more
[22:47] Speaker 7: difficult because, like I said, this is a conflict area.
[22:49] Speaker 7: So when we're transporting these specimens to go towards laboratory testing,
[22:53] Speaker 7: a lot of that was destroyed in transit because they
[22:57] Speaker 7: weren't cooled properly, so we weren't able to pick up Oh,
[22:59] Speaker 7: this is actually a different type of strain that's more
[23:01] Speaker 7: dangerous and has no vaccine.
[23:03] Speaker 3: All right, bet thirty seconds left. What are the experts saying?
[23:06] Speaker 3: How is this play out? Do you think? I mean
[23:07] Speaker 3: there's no known cure for the vaccine that kind of thing.
[23:10] Speaker 7: Experts are very concerned. There is a rush right now
[23:13] Speaker 7: to be able to work on treatments and work on vaccines.
[23:16] Speaker 7: There's no expectation that this is going to become the
[23:18] Speaker 7: next COVID or the next pandemic. That's just not how
[23:20] Speaker 7: ebolo works. But it's very worrying to be able to
[23:23] Speaker 7: look at an area like this and see a virus
[23:25] Speaker 7: this deadly.
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