started higher on the day has turned around, near session lows. at the s&p 500 .3% lower. the nasdaq 100 even more so. closer to .5%. the 10 year yield is what i have been watching. round up and we are already at 4.8%. investors are going out with 3, 4 decimal points. we are just under that level. certainly the higher for longer level of yields has been spooking the markets till one day before cpi. we will switch from the markets now to look at corporate news. news that was breaking in the last hour.

a big one on wall street. the u.s. justice department is suing private equity firm kkr for allegedly withholding documents during a government required merger review. in turn, kkr is suing the department of justice seeking an order finding it did not violate the law. tkr alleges the doj antitrust probe was "politically motivated". we are joined by bloomberg news reporter covering antitrust in washington serio ford and. sarah: -- sara forden. when was the last time we saw a private equity giant of this scale be sued by the doj? sara: this is an exceptional case. there have been actions against private equity firms and firms refusing to disclose relative information in a merger review. but this is a representative of

the biden administration that stepped up focus on the private equity market concerned about roll up's, interlocking board seats. this represents a very strong focus on what documents companies are providing the government to help them assess the competitive facts of the deal. in this case they allege kkr failed to provide key documents in 16 deals including things like internal reports, board presentations, material that they say -- that they claim, prevented them from really assessing whether a merger was anticompetitive. sonali: what is the outcome? think about the department of justice's moves in the final days of the biden administration. what kind of tone is at the doj expected to take with private equity in the future? sara: this is the justice department also kind of sending a message to the market to say don't try to hide stuff from us.

it's illegal. it can be very expensive. they can fine companies up to $60,000 per violation per day. they are alleging $650 million worth of violations. you are absolutely right. we are in a presidential transition moment. this is the last week of the biden administration. this team is going out the door. the case will be on the desk of the new antitrust team coming in under trump to decide how to pursue it. sonali: how is kkr fighting back? what is the legal case for them to do so? sara: kkr filed its own lawsuit in a washington, d.c. court seeking a judgment from a judge saying it did nothing wrong and this was politically motivated and based on a misinterpretation of antitrust law by the doj. sonali: we have to leave it there. thank you very much. find the story on bloomberg.com and the bloomberg terminal.

that's sara forden u.s. legal team leader in washington. another major story. major changes at jp morgan. the vanke named a replacement for daniel pinto. she is exiting her role as ofs the co-ceo of commercial and investment banking at jp morgan and will work alongside pinto until he officially leaves the role june 30. this leaves the ultimate question of who will replace jamie dimon unanswered. >> this is probably the best bench in banking, period, end of sentence. the company has done a great job getting these in front of everybody. i think that everybody is comfortable with the next successor.

sonali: we are joined by a senior reporter from bloomberg covering banking. when we think about what happened at jp morgan i will steal a line from mike mayo. confused. the idea that she does not want the ceo job leaving succession open. sri: one jeff bezos talks about the washington post he talks about a complex of fire. somebody like jennifer piepszak is replacing a 40 year veteran of the firm. in the same breath the banking

tells us she's not interested in being the ceo. the most interesting thing about the management changes is to figure out who will ultimately be the replacement for jamie dimon? who should we anoint as a successor? today we got no real answer is except ruling out jennifer piepszak. sonali: do the investment bankers say we should be at the top, we should be leading the firm? how do you choose somebody well-rounded enough to run a bank at that scale? do you bring back charlie scharf? >> there is no way that happens. at least, i do not think there is a way. look at what has changed to the last 12-18 months. it is a two horse race.

either marion lake or jennifer piepszak with many seeing jennifer piepszak as a frontrunner. now, you have more people in contention. with the announcement it is clear that jamie dimon isn't going away. he is signaling he will be in the draw a little while longer. the list of potential successors expands to include troy rowe bumped. nothing has changed in his title or role but everybody wants to point in that direction and it's interesting. there is no real indication he is the obvious one here, but he is more in contention today than last week and the other name i find interesting because of a series of changes in just over a year, doug beckner. last year, when the main banking guy at jp morgan jumped to citigroup suddenly doug beckner was given the title of banking

but now he is the cohead of cip. that's a big promotion in 12 months. sonali: sridhar natarajan senior reporter covering banking for bloomberg. call him with your tips. we want to know what is going on. day two at the j.p. morgan health care conference in san francisco not just talking about changes at the bank, talking to executives. kriste -- kristin peck joins us next to talk about changes in her industry. this is bloomberg.

sonali: this is bloomberg markets. i'm sonali basak time for the stock of the hour.

sl x, the largest producer of medicine for pets and livestock in the u.s.. it stock has been lower going up to 2025. the company has a number of treatments waiting approval. -- awaiting approvals. my cali katie greifeld and kristin pe at the j.p. morganck health care conference in san francisco. katie: let's start with the broad breakdown. are you addressed companion animals. i am thinking cats, dogs, livestock like cattle. what is the current breakdown when it comes to your revenue and how do you see it evolving over the next couple years? kristin: it's great to be on. what is important to know about animal health is it has been growing for percent-6% over time with a compound annual growth rate of 5%. companion animal generally grows about 6%-8% and livestock slower to percent-4%.

about 6% of our portfolio is in companion animal, the faster growing. what really differentiates zoetis's we are driving market growth with innovation and commercial excellence. a compound annual growth rate at 8%, 3% above what the market has been doing driven by innovation in companion animal and livestock. katie: when it comes with -- to longer-term outlooks particularly for companion animals what you think are the biggest categories with cancer, arthritis, cardio? what do you see sales driven by? kristin: we have three phenomenal franchises today. they grow in double digits, growth in parasites, dermatology where we have been across the markets for 11 years with double-digit growth, and certainly our pain franchise with antibodies for pain. in the future portfolio is exciting. we are just getting started. one of the big disclosures we

made at jp morgan this week is around the potential we see in important new areas like renal, that we think could be a's $3 billion-$4 billion market with a huge across dogs and cats. oncology is a huge need as well as cardiology. what is really different with animal health and human health is we are still young in this. there are no therapies for these products today and we are excited to launch products throughout the next one-five years. what we announced here is we will have an approval every year for the next few years. we think this will drive growth for zoetis and the industry for years to come. tim: you are talking to a cat lady and i definitely worry about renal issues so i'm glad to hear that we had bloomberg intelligence data shows a vet visits have declined for 11 straight quarters, which i was surprised to see. how do you manage around that? how dependent are you on people actually taking their pets to the vet? kristin: we have been saying for

years there is no correlation between vet visits and the growth of our company. historically, that visits grow between 0% and 1% and we have been growing with a compound annual growth rate of 8%. really what you need to do is break down the visits. therapeutic visits for itch, pain, have been growing and in fact growing double digits. what you are seeing in some of those categories is more sales actually going online. we see 30% of alcohol sales today online. it's not the best proxy for understanding the growth of zoetis. the best proxy is revenue growth in the vet clinic. we are excited that the new pet owner is millennial and gen z. pets are an important part of their life. the human and animal bond is incredibly strong. with zoeti we think that iss,

great growth for years to come. katie: i have not seen my caps on sunday so i'm a little emotional. you have a drug that treats osteoarthritis in dogs. last month the fda posted a letter to veterinarians warning about adverse side effects including seizures, lameness, loss of muscle control. what are you doing to address those concerns? kristin: that letter was actually a communication that helped pet owners and vets understand what they are seeing. we found the letter really helpful. basically, they said the adverse event rate and what they are seeing is very similar to what we have been seeing globally. the drug has been on the market for over three years globally. we are incredibly confident in the safety and efficacy of the product and there are so many pets that it has made a big difference for. 18 million across the world. what that betters -- letter said was that what they are seeing in the u.s. is the same adverse events we have seen around the globe and i did and we are

making recommendations to communicate to veterinarians and pet owners what those are. what we have seen in other markets. we expect the label update and we expect the label update to look like it did in other markets because that what -- is what we are seeing in adverse events. we remain very confident. the drug's launch in the u.s. has been the best launch in animal health ever. we remain very confident and excited for the future. katie: we have about 30 seconds left with you. i want to get the bird flu. bird flu has spread from birds to mammals. you saw your first u.s. human deaths as well. i know we have bird and cattle vaccines available. put that into context in your business. do you see this as a growth and sales opportunity for you? kristin: our primary focus is not around growth and sales. it is taking care of the animals, addressing the disease. it involves poultry as well as dairy cattle. we are expecting a conditional license for avian influenza in poultry and we are working with

the ust in a trial with dairy cattle to support governments and produces ensuring the best health care for the animals. katie: thank you. kristin peck is the ceo of piepszak -- zoetis. sonali: coming up drug companies are facing a new administration in less than a week. structure therapeutics ceo ray stephens on that and the company's outlook on obesity drugs in development. that is always katie at the j.p. morgan conference. stay with us. this is bloomberg.

sonali: this is bloomberg markets. i'm sure alibaba six. we will head back to san francisco where the jp morgan health care conference is well underway. katie is there with the ceo of

structur therapeutics. katie: i'm sitting by with raymond stevens the ceo of structure therapeutics. ray: thank you for having me on. katie: obesity drugs is a crowded space with enormous players like eli lilly. if are developing an oral medication -- you are developing an oral medication for obesity. how do you plan to set yourself apart and fit into the market? ray: 2025 will be the year of the small molecule for gop one. the field has been dominated with injectable peptides. accessibility is a major problem. second, 80 5% of people discontinue injectables after two years. 65% discontinue after one year. we think oral pills will continue the maintenance phase of people continuing the medicines. what we don't want to see is people lose weight and then we

get a yo-yo effect. they gained weight, they lose weight. that's not healthy either. we think the oral pills will be used not just in the maintenance phase for a chronic disease but primary care physicians will prescribe them right from the very start. katie: you are in mid-stage trials right now. can we expect results this year for your trials? if so, how quickly do you think you will get a drug to market? ray: we have two studies at the end of the year called access and axis two. access i think we will show eli lilly phase 3 data queue. that will be one of the biggest breakthroughs of 2025 in the drug industry. our data will come out of the end of the year and are accessed two study will allow us to go up in dose to see if we can have even better efficacy. we already believe we have the safest oral glp1 today.

katie: are you in talks with bigger companies about partnering for a phase three trial? ray: our motivation over the kitchen sink is making medication accessible to all. we started the company to make medications more available. these injectables are a breakthrough but in 2023. 46% of people in the u.s. are obese. globally it is 1.5 billion people by 2030. the numbers are astounding. oral pills are the solution. by having our data readout progressing, continuing to talk with partners, to your question, we will continue the dialogue's. our goal, getting the medicines to all. we believe we need a strategic partner for commercialization. sonali: keep us updated on that front. i'm curious. what are the big topics here in addition to talking about white locks -- weight loss drugs is the m&a environment. from where you are sitting what

is the interest from big pharma when it comes to dealmaking? ray: we have no slowdown in interest. people keep approaching us. jp morgan. what i love about this conference is it brings investors with the biotech, pharma companies come altogether. we will continue having those. and that interest, those discussions. i think that we will see a very good year for m&a activity in 2025. katie: that seems to be the consensus here. a lot of optimism. we are less than a week away from the inauguration of donald trump. i am curious about pricing. of course, you are still in mid-stage trials. but there is the idea out there that maybe, some of these oral drugs will be cheaper than injectables. how are you thinking about pricing with, of course, the nuance that you are still in mid-stage? ray: accessibility to all drives us. we have the technical solution.

by making more small molecules we can manufacture them cheaper. we currently have the capacity to make them for over 125 million people. the technical solution of making these medications less expensive is a technical solution. in terms of pricing we have the ability to price that at a more reasonable level. this really can be a drug for the masses. katie: so interesting to hear about maybe bringing down the cost. i want to talk about china. we are a week away from donald trump entering office again. how worried or concerned are you about potential geopolitical risks with the u.s. china relationship and what it means for structure? ray: two years ago we saw this coming. it wasn't a surprise. we started doing manufacturing in the u.s. for the united states. we manufactured in china for asia. europe, it is still unclear exactly what will take place read that as a way for us to the risk and a new risk mitigation

for the company itself. we continue to see incredible talent in china from chemistry and drug discovery, incredibly important. we are financing clinical in san francisco in the u.s.. we go where top talent is. obesity is a global disease and we need a global solution including the u.s., china, and all countries around the world. katie: that's a good place to leave it. raymond, we appreciate you taking the time. raymond stevens is the ceo of structure therapeutics. sonali: thank you. a lot of things are going on at the jp morgan health care conference. for the rest of the day, health care is a big part of the markets. the markets have been lower on the day. fluctuating between gains and losses. of course, still a heavy day ahead. things can always turn around. stick with us through the close. that does it for bloomberg markets today. i'm sonali basak.

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announcer: from the world of politics of the world of business, this is "balance of power." ♪ live from washington d.c. ♪ joe: it's happening as we speak, the first confirmation hearing for donald trump's cabinet e-minis.

welcome to the fastest show in politics as pete hegseth endures a grilling for the senate armed services committee in his plan to become secretary of defense. we have more senators to go although more stylist -- most jealousy is on track to win the confirmation. kailey: keeping track he will be confirmed by a senate with a republican majority. republicans sounding more supportive of his prospects, than democrats who have criticized him on both character and qualifications. they discussed his views on women in the military, specifically asked allegations of sexual assault. he has also been impressed multiple times, including this now by senator tammy duckworth, on his ability to lead an organization like the pentagon, especially the cost cuts would like to