WEBVTT - CME Group Dips After Outage; Oracle Declines; Sandisk Rallies

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move today.

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<v Speaker 1>I'm Nathan Hager, joined by Bloomberg's Dan Curtis on a

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<v Speaker 1>morning where the broader market looks like it's not moving

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<v Speaker 1>because of the outage at CME Group. As it turns out,

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<v Speaker 1>CME Group is a publicly traded company. So Dan, how

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<v Speaker 1>CMME Group looking this morning?

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<v Speaker 3>Good morning, Good morning. Yeah, as you said, it's it's

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<v Speaker 3>been hard to get some of the some of the

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<v Speaker 3>prices that we want. But for CMA Group shares themselves

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<v Speaker 3>stick or CME, they're down just less than one percent.

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<v Speaker 3>As you know, as you've been talking about, as the

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<v Speaker 3>financial world has been discussing overnight since it happened around

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<v Speaker 3>nine thirty ten pm New York time last night, the

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<v Speaker 3>exchange operator has halted its trading in futures and options.

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<v Speaker 3>It since opened up it's broker Tech US actives and

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<v Speaker 3>broke Tech EU platforms, but all others are still halted.

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<v Speaker 3>It comes on, you know, a day where a lot

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<v Speaker 3>of people probably weren't going to be going into the

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<v Speaker 3>office anyways. Especially in the US, the day after Thanksgiving

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<v Speaker 3>tends to be light days. Obviously, this is not fun

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<v Speaker 3>for anyone who's going through it, But I think if

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<v Speaker 3>you had to pick a day for an exchange to

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<v Speaker 3>go down, a super low volume day like today would

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<v Speaker 3>probably be about the best day for a bad thing

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<v Speaker 3>to happen. So, you know, it's something everyone's kind of,

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<v Speaker 3>you know, trying to figure out pricing on a lot

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<v Speaker 3>of things. But the Cmgroup CME Group Shares themselves just

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<v Speaker 3>shrugging them off. Down less than one percent.

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<v Speaker 1>It's going to make cash trading all the more important

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<v Speaker 1>for those who do have to come into work this morning.

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<v Speaker 1>A lot of tech stocks on your list, starting with Oracle.

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<v Speaker 3>Yeah, Oracle, It's down a little bit over one percent

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<v Speaker 3>in the pre market today. Morgan Stanley has come out

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<v Speaker 3>with a note warning that the tech company is facing

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<v Speaker 3>a funding gap as it spends money to build out

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<v Speaker 3>its AI infrastructure. Oracle has borrowed eighteen billion dollars from

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<v Speaker 3>the debt market in September. That's on top of bank

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<v Speaker 3>providing tens of billions of loans linked to Oracle projects

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<v Speaker 3>over the past months. So Morgan Stanley's saying, this is

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<v Speaker 3>a lot of money for Oracle to be taking out

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<v Speaker 3>taking out, and right now it looks like, using Wall

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<v Speaker 3>Street estimates, about half of Oracle's revenues over the next

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<v Speaker 3>year are going to go directly into capital expenditures, so

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<v Speaker 3>reinvesting into this buildout. So this company's putting out a

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<v Speaker 3>lot of cash to try and build out and expand

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<v Speaker 3>into this AI race, and Morgan Stanley's just wondering, you know,

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<v Speaker 3>if it might be just a bit too much. That

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<v Speaker 3>has investors kind of debating that side of you know,

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<v Speaker 3>how much is this going to impact the stock that's

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<v Speaker 3>down one percent as well as debt. So we also

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<v Speaker 3>have the insurance against Oracle's debt called a CDs that's

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<v Speaker 3>trading out relatively expensive prices. So if you're to hedge

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<v Speaker 3>against a default over the next five years, it's about

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<v Speaker 3>as expensive as it's been since the global financial crisis,

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<v Speaker 3>so nearly twenty years ago.

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<v Speaker 1>And we have a build out that's affecting sand disk

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<v Speaker 1>stock as well, or at least a talk of a

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<v Speaker 1>buildout anyway.

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<v Speaker 3>Yeah, there was a report that Japan and the US

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<v Speaker 3>are considering building out a memory plant for one of

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<v Speaker 3>the types of chips that sand Disc makes. Sand Disc

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<v Speaker 3>would be a main investor in the project. There's been

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<v Speaker 3>a lot of large demand for memory chips in the

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<v Speaker 3>AI race. The whole space has been exploding. Prices of

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<v Speaker 3>these chips themselves have been going very high. And on

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<v Speaker 3>top of that, you know, just as a fun thing

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<v Speaker 3>to note, today is sand Disc's first day on the

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<v Speaker 3>S and P five hundred. Welcome to the S and

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<v Speaker 3>P five hundred sand.

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<v Speaker 1>Disc, okay. And another chip maker on your list as well,

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<v Speaker 1>Micron Technology.

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<v Speaker 3>Yeah, Mike Ron, that's also up higher again. It's just

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<v Speaker 3>on the back of this memory demand. We've seen memory

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<v Speaker 3>prices just skyrocketing, keep going up really high. It's going on.

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<v Speaker 3>It's just this massive boom again around the AI space,

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<v Speaker 3>and I still see. Just to circle back to something earlier,

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<v Speaker 3>CME Group has just said that the EBS market will

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<v Speaker 3>reopen at twelve o'clock. GMT shares are still down about

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<v Speaker 3>that two thirds of a percent after that announcement.

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<v Speaker 2>The Stockmover's report from Bloomberg Radio. Check back with us

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