1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,520 --> 00:00:18,720 Speaker 1: Let's take a look at some stocks on the move today. 5 00:00:18,760 --> 00:00:21,840 Speaker 1: I'm Nathan Hager, joined by Bloomberg's Dan Curtis on a 6 00:00:21,840 --> 00:00:24,680 Speaker 1: morning where the broader market looks like it's not moving 7 00:00:24,760 --> 00:00:29,000 Speaker 1: because of the outage at CME Group. As it turns out, 8 00:00:29,120 --> 00:00:33,000 Speaker 1: CME Group is a publicly traded company. So Dan, how 9 00:00:33,120 --> 00:00:34,600 Speaker 1: CMME Group looking this morning? 10 00:00:34,720 --> 00:00:37,919 Speaker 3: Good morning, Good morning. Yeah, as you said, it's it's 11 00:00:37,960 --> 00:00:39,479 Speaker 3: been hard to get some of the some of the 12 00:00:39,479 --> 00:00:42,360 Speaker 3: prices that we want. But for CMA Group shares themselves 13 00:00:42,360 --> 00:00:45,000 Speaker 3: stick or CME, they're down just less than one percent. 14 00:00:45,080 --> 00:00:46,960 Speaker 3: As you know, as you've been talking about, as the 15 00:00:46,960 --> 00:00:50,199 Speaker 3: financial world has been discussing overnight since it happened around 16 00:00:50,440 --> 00:00:53,560 Speaker 3: nine thirty ten pm New York time last night, the 17 00:00:54,120 --> 00:00:57,400 Speaker 3: exchange operator has halted its trading in futures and options. 18 00:00:57,520 --> 00:00:59,760 Speaker 3: It since opened up it's broker Tech US actives and 19 00:00:59,760 --> 00:01:02,600 Speaker 3: broke Tech EU platforms, but all others are still halted. 20 00:01:03,040 --> 00:01:05,360 Speaker 3: It comes on, you know, a day where a lot 21 00:01:05,360 --> 00:01:07,720 Speaker 3: of people probably weren't going to be going into the 22 00:01:07,760 --> 00:01:11,480 Speaker 3: office anyways. Especially in the US, the day after Thanksgiving 23 00:01:11,520 --> 00:01:13,880 Speaker 3: tends to be light days. Obviously, this is not fun 24 00:01:13,920 --> 00:01:16,440 Speaker 3: for anyone who's going through it, But I think if 25 00:01:16,480 --> 00:01:18,520 Speaker 3: you had to pick a day for an exchange to 26 00:01:18,640 --> 00:01:21,039 Speaker 3: go down, a super low volume day like today would 27 00:01:21,080 --> 00:01:23,240 Speaker 3: probably be about the best day for a bad thing 28 00:01:23,280 --> 00:01:26,480 Speaker 3: to happen. So, you know, it's something everyone's kind of, 29 00:01:26,600 --> 00:01:28,360 Speaker 3: you know, trying to figure out pricing on a lot 30 00:01:28,400 --> 00:01:31,959 Speaker 3: of things. But the Cmgroup CME Group Shares themselves just 31 00:01:31,959 --> 00:01:34,199 Speaker 3: shrugging them off. Down less than one percent. 32 00:01:34,440 --> 00:01:36,280 Speaker 1: It's going to make cash trading all the more important 33 00:01:36,280 --> 00:01:38,479 Speaker 1: for those who do have to come into work this morning. 34 00:01:38,959 --> 00:01:42,600 Speaker 1: A lot of tech stocks on your list, starting with Oracle. 35 00:01:43,200 --> 00:01:45,920 Speaker 3: Yeah, Oracle, It's down a little bit over one percent 36 00:01:46,040 --> 00:01:48,800 Speaker 3: in the pre market today. Morgan Stanley has come out 37 00:01:48,840 --> 00:01:51,000 Speaker 3: with a note warning that the tech company is facing 38 00:01:51,000 --> 00:01:53,200 Speaker 3: a funding gap as it spends money to build out 39 00:01:53,240 --> 00:01:57,200 Speaker 3: its AI infrastructure. Oracle has borrowed eighteen billion dollars from 40 00:01:57,240 --> 00:01:59,960 Speaker 3: the debt market in September. That's on top of bank 41 00:02:00,120 --> 00:02:03,480 Speaker 3: providing tens of billions of loans linked to Oracle projects 42 00:02:03,520 --> 00:02:06,600 Speaker 3: over the past months. So Morgan Stanley's saying, this is 43 00:02:06,600 --> 00:02:08,880 Speaker 3: a lot of money for Oracle to be taking out 44 00:02:08,919 --> 00:02:11,799 Speaker 3: taking out, and right now it looks like, using Wall 45 00:02:11,840 --> 00:02:15,119 Speaker 3: Street estimates, about half of Oracle's revenues over the next 46 00:02:15,200 --> 00:02:17,920 Speaker 3: year are going to go directly into capital expenditures, so 47 00:02:18,080 --> 00:02:20,720 Speaker 3: reinvesting into this buildout. So this company's putting out a 48 00:02:20,720 --> 00:02:23,360 Speaker 3: lot of cash to try and build out and expand 49 00:02:23,400 --> 00:02:27,040 Speaker 3: into this AI race, and Morgan Stanley's just wondering, you know, 50 00:02:27,360 --> 00:02:29,200 Speaker 3: if it might be just a bit too much. That 51 00:02:29,280 --> 00:02:32,280 Speaker 3: has investors kind of debating that side of you know, 52 00:02:32,440 --> 00:02:34,520 Speaker 3: how much is this going to impact the stock that's 53 00:02:34,600 --> 00:02:37,400 Speaker 3: down one percent as well as debt. So we also 54 00:02:37,520 --> 00:02:42,200 Speaker 3: have the insurance against Oracle's debt called a CDs that's 55 00:02:42,320 --> 00:02:46,040 Speaker 3: trading out relatively expensive prices. So if you're to hedge 56 00:02:46,080 --> 00:02:48,400 Speaker 3: against a default over the next five years, it's about 57 00:02:48,440 --> 00:02:51,040 Speaker 3: as expensive as it's been since the global financial crisis, 58 00:02:51,040 --> 00:02:52,480 Speaker 3: so nearly twenty years ago. 59 00:02:52,880 --> 00:02:56,200 Speaker 1: And we have a build out that's affecting sand disk 60 00:02:56,280 --> 00:02:58,160 Speaker 1: stock as well, or at least a talk of a 61 00:02:58,160 --> 00:02:58,919 Speaker 1: buildout anyway. 62 00:02:59,280 --> 00:03:01,680 Speaker 3: Yeah, there was a report that Japan and the US 63 00:03:01,720 --> 00:03:04,280 Speaker 3: are considering building out a memory plant for one of 64 00:03:04,320 --> 00:03:07,720 Speaker 3: the types of chips that sand Disc makes. Sand Disc 65 00:03:07,720 --> 00:03:10,600 Speaker 3: would be a main investor in the project. There's been 66 00:03:10,639 --> 00:03:13,600 Speaker 3: a lot of large demand for memory chips in the 67 00:03:13,600 --> 00:03:16,560 Speaker 3: AI race. The whole space has been exploding. Prices of 68 00:03:16,600 --> 00:03:19,360 Speaker 3: these chips themselves have been going very high. And on 69 00:03:19,400 --> 00:03:21,000 Speaker 3: top of that, you know, just as a fun thing 70 00:03:21,080 --> 00:03:23,360 Speaker 3: to note, today is sand Disc's first day on the 71 00:03:23,400 --> 00:03:26,120 Speaker 3: S and P five hundred. Welcome to the S and 72 00:03:26,160 --> 00:03:27,240 Speaker 3: P five hundred sand. 73 00:03:27,040 --> 00:03:30,800 Speaker 1: Disc, okay. And another chip maker on your list as well, 74 00:03:30,840 --> 00:03:31,760 Speaker 1: Micron Technology. 75 00:03:32,360 --> 00:03:35,280 Speaker 3: Yeah, Mike Ron, that's also up higher again. It's just 76 00:03:35,360 --> 00:03:38,400 Speaker 3: on the back of this memory demand. We've seen memory 77 00:03:38,440 --> 00:03:43,720 Speaker 3: prices just skyrocketing, keep going up really high. It's going on. 78 00:03:44,320 --> 00:03:47,240 Speaker 3: It's just this massive boom again around the AI space, 79 00:03:47,920 --> 00:03:50,480 Speaker 3: and I still see. Just to circle back to something earlier, 80 00:03:50,960 --> 00:03:54,360 Speaker 3: CME Group has just said that the EBS market will 81 00:03:54,360 --> 00:03:57,720 Speaker 3: reopen at twelve o'clock. GMT shares are still down about 82 00:03:57,720 --> 00:03:59,960 Speaker 3: that two thirds of a percent after that announcement. 83 00:04:01,000 --> 00:04:05,200 Speaker 2: The Stockmover's report from Bloomberg Radio. 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