1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Mover's Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg data. 4 00:00:17,040 --> 00:00:20,320 Speaker 1: Stock Movers Report, it's a podcast, it's important and all 5 00:00:20,320 --> 00:00:23,520 Speaker 1: the distractions today. Guess what stock's move? Here's Lisamtik. 6 00:00:23,600 --> 00:00:25,360 Speaker 3: We got it. And we have those credit card companies 7 00:00:25,480 --> 00:00:28,560 Speaker 3: bank sliding. The reason for all this, President Trump said 8 00:00:28,600 --> 00:00:31,280 Speaker 3: credit card lenders are going to be quote in violation 9 00:00:31,480 --> 00:00:34,320 Speaker 3: of law if they don't cap interest rates at ten 10 00:00:34,360 --> 00:00:37,519 Speaker 3: percent for one year. And he said a January twentieth 11 00:00:37,560 --> 00:00:40,159 Speaker 3: deadline for a compliance. So we look at companies like 12 00:00:40,240 --> 00:00:43,360 Speaker 3: American Express ticker AXP. Their shares have been down about 13 00:00:43,360 --> 00:00:47,120 Speaker 3: four percent, Capital One coof down about eight percent. JP 14 00:00:47,280 --> 00:00:49,000 Speaker 3: Morgan has been down as much as two and a 15 00:00:49,040 --> 00:00:51,159 Speaker 3: half percent. Now you even look at Barclays, which as 16 00:00:51,280 --> 00:00:54,320 Speaker 3: US credit card business, they were down more than four percent. 17 00:00:54,640 --> 00:00:56,640 Speaker 3: So credit card interest rates they've been hovering, you can 18 00:00:56,640 --> 00:00:59,920 Speaker 3: about twenty percent in recent years. You have Mike May, 19 00:01:00,080 --> 00:01:02,520 Speaker 3: he's an analyst at Wells Fargo. He said in a 20 00:01:02,560 --> 00:01:05,560 Speaker 3: note that new potential card cap could wipe out earnings 21 00:01:05,560 --> 00:01:09,040 Speaker 3: from cards for a year and The problem critics are 22 00:01:09,040 --> 00:01:11,200 Speaker 3: saying is that they say a ten percent interest rate 23 00:01:11,280 --> 00:01:14,640 Speaker 3: cap that would reduce credit availability so less people would 24 00:01:14,640 --> 00:01:16,720 Speaker 3: be able to get them, and those are people who 25 00:01:16,760 --> 00:01:18,320 Speaker 3: rely on these credit cards. 26 00:01:18,440 --> 00:01:20,280 Speaker 1: Question is Joe Matthew. I mean, he's the one that 27 00:01:20,560 --> 00:01:23,120 Speaker 1: I don't know what I'm talking about, but a balance 28 00:01:23,160 --> 00:01:26,760 Speaker 1: of power is a president to the left of Senator 29 00:01:26,800 --> 00:01:30,080 Speaker 1: Warren of Massachusetts on this. I mean, this is like 30 00:01:30,560 --> 00:01:35,680 Speaker 1: wicked way over and the political spectrum, I think it is. 31 00:01:35,680 --> 00:01:37,720 Speaker 3: But both sides have been kind of complaining about this. 32 00:01:37,920 --> 00:01:38,919 Speaker 3: The credit card. 33 00:01:39,400 --> 00:01:41,840 Speaker 1: Complain about it comes the rate. I mean, I mean, 34 00:01:42,200 --> 00:01:44,560 Speaker 1: you have a preferred rate of seven percent? 35 00:01:45,000 --> 00:01:47,080 Speaker 4: Wait, get me in on that. 36 00:01:48,000 --> 00:01:50,080 Speaker 3: But it's you know, who would be the winner in 37 00:01:50,160 --> 00:01:52,680 Speaker 3: all this is what they're saying is that he's Mayo 38 00:01:52,760 --> 00:01:55,720 Speaker 3: saying that it's going to be firms like Klarna, a 39 00:01:55,800 --> 00:02:00,960 Speaker 3: firm like those pay Now Yeah really, And banking trade 40 00:02:01,000 --> 00:02:03,480 Speaker 3: groups are saying it could lead some Americans to pawn shops. 41 00:02:03,480 --> 00:02:05,360 Speaker 3: Like they're saying, this could be a big deal. I 42 00:02:05,360 --> 00:02:07,960 Speaker 3: don't know if it would go that extreme, but that's 43 00:02:07,960 --> 00:02:10,240 Speaker 3: what they're saying. Thanks, I want to go to sun 44 00:02:10,240 --> 00:02:14,240 Speaker 3: Country Airlines is ticker SNCY. Their shares have been up 45 00:02:14,240 --> 00:02:17,840 Speaker 3: as much as sixteen percent. The reason for this, Allegiant 46 00:02:17,840 --> 00:02:19,600 Speaker 3: Travel agreed to buy the company. It's a one and 47 00:02:19,600 --> 00:02:23,639 Speaker 3: a half billion dollar cash and stock deal. Further, it's 48 00:02:23,680 --> 00:02:26,560 Speaker 3: just driving consolidation right in the US airline industry, there's 49 00:02:26,639 --> 00:02:30,120 Speaker 3: a lot, a lot of competition. The combined airline. Here 50 00:02:30,160 --> 00:02:32,680 Speaker 3: are the details. So they're expected to operate about one 51 00:02:32,720 --> 00:02:35,760 Speaker 3: hundred and ninety five aircraft, expand its service to eighteen 52 00:02:35,800 --> 00:02:41,480 Speaker 3: international destinations. Allegiance shareholders are going to earn sixty seven 53 00:02:41,480 --> 00:02:43,960 Speaker 3: percent of the combined entity, and then Sun Country investors 54 00:02:44,000 --> 00:02:46,840 Speaker 3: are going to hold thirty seven percent of the remaining stake. 55 00:02:47,280 --> 00:02:49,760 Speaker 3: Allegiance is going to continue to be that publicly held parent. 56 00:02:49,800 --> 00:02:52,720 Speaker 3: The combined entity operate under the Allegiant name. 57 00:02:53,200 --> 00:02:55,520 Speaker 4: But I wonder if they overlap like a lot of routes, 58 00:02:55,560 --> 00:02:56,800 Speaker 4: you know what I mean, Like, what's this going to 59 00:02:56,840 --> 00:02:59,440 Speaker 4: mean for the passengers? Correct? Correct? 60 00:02:59,480 --> 00:03:01,440 Speaker 3: And it says going to help them meet demand during 61 00:03:01,480 --> 00:03:03,400 Speaker 3: the peak travel season. So they say it's going to 62 00:03:03,440 --> 00:03:05,400 Speaker 3: be better because more people can get to where they 63 00:03:05,440 --> 00:03:05,880 Speaker 3: want to go. 64 00:03:06,800 --> 00:03:09,600 Speaker 4: Well, to see more consolidation in this space this year 65 00:03:09,639 --> 00:03:12,120 Speaker 4: at the airlines, you're so it's too crowded and they 66 00:03:12,200 --> 00:03:15,480 Speaker 4: just through the margins are just too too short. They're 67 00:03:15,480 --> 00:03:17,079 Speaker 4: not going to be able to. 68 00:03:17,080 --> 00:03:19,200 Speaker 1: Why don't I know this airline? I mean they're at 69 00:03:19,200 --> 00:03:20,240 Speaker 1: a mini sun Country. 70 00:03:20,800 --> 00:03:23,200 Speaker 4: I was going to ask, where are they out of Minneapolis? Okay? 71 00:03:24,000 --> 00:03:25,480 Speaker 4: Sun Country airlines don't. 72 00:03:26,040 --> 00:03:28,920 Speaker 1: Okay, but I actually I was sitting up on our 73 00:03:28,919 --> 00:03:33,880 Speaker 1: acclaimed food court and the points guy sat down with me. 74 00:03:35,120 --> 00:03:37,200 Speaker 1: We talked about it, and he says, it just continues. 75 00:03:37,680 --> 00:03:40,840 Speaker 1: People love the major airlines as they build miles, and 76 00:03:40,880 --> 00:03:42,920 Speaker 1: that's that's the bottom line. 77 00:03:43,280 --> 00:03:46,680 Speaker 3: It's true because I track mine continuously. 78 00:03:46,640 --> 00:03:47,760 Speaker 2: Would use them. 79 00:03:47,800 --> 00:03:50,160 Speaker 4: I use them, I do, I use it. 80 00:03:50,320 --> 00:03:52,360 Speaker 3: I need to fly yes somewhere. I use them all 81 00:03:52,360 --> 00:03:54,560 Speaker 3: the time. I have to use them or lose them, 82 00:03:55,080 --> 00:03:57,880 Speaker 3: you know, especially when you're traveling these colleges to check 83 00:03:57,920 --> 00:04:03,320 Speaker 3: them out. Yes, shack, I'll go to Yes. Falling about 84 00:04:03,360 --> 00:04:06,960 Speaker 3: five percent. They missed. They reported missed on preliminary revenue 85 00:04:07,000 --> 00:04:10,280 Speaker 3: for the first quarter. They blamed inclement weather like bad 86 00:04:10,280 --> 00:04:13,200 Speaker 3: weather in the Northeast for keeping you know, people away 87 00:04:13,320 --> 00:04:15,960 Speaker 3: during the last six weeks of the year. But it's 88 00:04:15,960 --> 00:04:18,880 Speaker 3: just so I don't know, you can blame weather from 89 00:04:19,360 --> 00:04:22,599 Speaker 3: guess nowadays. But it's just you know, fast, hash fier. 90 00:04:22,600 --> 00:04:25,680 Speaker 3: I just don't know if they're meeting the moment. 91 00:04:26,279 --> 00:04:27,120 Speaker 4: Shake Shack, you know. 92 00:04:27,480 --> 00:04:29,400 Speaker 3: It's true, but you've seen it with like fash casual, 93 00:04:29,440 --> 00:04:31,680 Speaker 3: like even healthy ones like Sweet Green. They were not 94 00:04:31,800 --> 00:04:36,240 Speaker 3: doing well, right, yeah, Chipotle not doing well. So you 95 00:04:36,240 --> 00:04:38,440 Speaker 3: look at that. I mean, actually, Shakeschack did better than 96 00:04:38,440 --> 00:04:38,880 Speaker 3: those two. 97 00:04:39,800 --> 00:04:44,400 Speaker 1: You when you order Shake Shack does after class give 98 00:04:44,480 --> 00:04:47,160 Speaker 1: you like two cheeseburgers, just to be sure that we're 99 00:04:47,200 --> 00:04:48,279 Speaker 1: not angry that we. 100 00:04:48,600 --> 00:04:51,240 Speaker 3: Oh to make it better, to make you feel better 101 00:04:51,240 --> 00:04:52,960 Speaker 3: about the purchase that you just made on your credit. 102 00:04:53,000 --> 00:04:56,040 Speaker 1: Come, look, I got your two cheeseburgers like yourself. Shit. 103 00:04:57,560 --> 00:05:01,600 Speaker 2: This stock mover's report from Bloomberg Radio. 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