WEBVTT - Closing Bell: Netflix Jumps, Block Rises, Blue Owl Slides

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>This is the closing bell on the stock movers report

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<v Speaker 2>the company's making moves at the close of US trading

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<v Speaker 2>with Carol Masser, Tim Stenovak, Romain Bostik, and Katie Greifel.

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<v Speaker 3>All right, so let's get to some of the individual gainers,

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<v Speaker 3>if I may. Let's go to Paramount Skydance and Netflix.

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<v Speaker 3>Definitely some outperformance. Paramount Skuyddance up almost twenty one percent

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<v Speaker 3>guys today, and you have Netflix up about fourteen percent.

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<v Speaker 3>Here we know Paramount clinching that deal finally for Warner

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<v Speaker 3>Brothers Discovery out maneuvering Netflix after a month's long battle

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<v Speaker 3>by Green to pay one hundred and eleven billion for

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<v Speaker 3>the legendary Hollywood studio. We should point out them renovering. Well,

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<v Speaker 3>here's the deal. We could have a lot of conversations

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<v Speaker 3>because Tim and I have talked about maybe Netflix was

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<v Speaker 3>just really smart host.

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<v Speaker 4>Prize scholars that they didn't have yesterday.

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<v Speaker 3>Yeah, Netflix, right, they had, right.

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<v Speaker 1>But that's also interesting too because I mean, we didn't

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<v Speaker 1>really talk about this happened while we were on air,

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<v Speaker 1>because Ted Sarandos was at the White House and he

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<v Speaker 1>did come out of the White House. Reporters asked him

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<v Speaker 1>what happened? You like, I'm not doing any media, And then,

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<v Speaker 1>of course a few minutes later we got the headlines

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<v Speaker 1>that they were moving on. But there's been a lot

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<v Speaker 1>of speculation here about what Paramount is pain, whether it's

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<v Speaker 1>too much, whether and a lot of jokes online saying

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<v Speaker 1>the hey, maybe if Sarando's just waits a couple of years,

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<v Speaker 1>he can actually maybe buy some of those assets at

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<v Speaker 1>a fire sale when a Paramount, you know, maybe if

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<v Speaker 1>Paramount doesn't execute on that.

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<v Speaker 3>Yeah, let's be conspiracy theorist for a moment. What if

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<v Speaker 3>Netflix was all about just pushing up the price and

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<v Speaker 3>increasing the cost of this deal and like the.

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<v Speaker 1>Cut of your jib there increasing the day. Where's your

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<v Speaker 1>tinfoil hat? Is that down there on the balancee?

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<v Speaker 2>I mean, come on, like, I don't know.

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<v Speaker 5>All right, we're moving along.

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<v Speaker 3>It's been a great saga to watch. But anyway, Paramount

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<v Speaker 3>and Netflix definitely outperforming in today's session. Let's go on

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<v Speaker 3>over to Dell, number one gainer in the S and

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<v Speaker 3>P five hundred, jumping by the most in two years,

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<v Speaker 3>stock up about twenty one almost twenty two percent today,

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<v Speaker 3>pretty much finishing at its highs of the session. This

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<v Speaker 3>is after the company gave an outlook for sales of

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<v Speaker 3>its artificial intelligence servers that exceeded estimates. Definitely a sign

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<v Speaker 3>of our best demand for machines helping fuel the AI

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<v Speaker 3>data center build that company, by the way, saying it

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<v Speaker 3>will generate about fifty billion dollars in AI server revenue

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<v Speaker 3>in the current fiscal year which ends in January of

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<v Speaker 3>twenty twenty seven, and investors liking what they heard from

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<v Speaker 3>that company. And then I got to mention Block take

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<v Speaker 3>our xyz this one finishing up just shy of seventeen

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<v Speaker 3>percent here, up the most in about two years, at

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<v Speaker 3>least intra day after the company center was reducing its

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<v Speaker 3>workforce by nearly half in a bet on AI.

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<v Speaker 1>Yes, mister boss, Oh no, but this is important before

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<v Speaker 1>we move to Tim's decliners here, because I mean, obviously,

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<v Speaker 1>if Block does pull this off, the idea that they

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<v Speaker 1>have these efficiencies and are able to continue generating the

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<v Speaker 1>same revenues and profits with a lot less, that's great.

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<v Speaker 1>But what does that mean for the economy If a

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<v Speaker 1>company can look at their workforce and say we can

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<v Speaker 1>get rid of forty percent of y'all at some point

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<v Speaker 1>this is like, isn't this the AI gloom and doom

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<v Speaker 1>that we all were all kind of dismissing a few

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<v Speaker 1>months ago with regards to you know, how it's just

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<v Speaker 1>going to kill all the jobs? And then what I mean,

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<v Speaker 1>who's going to be left to buy these services? If

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<v Speaker 1>nobody has.

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<v Speaker 4>Exactly who uses Square? If nobody has any money?

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<v Speaker 1>Yeah, spend thank you, Ted.

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<v Speaker 3>What if it's just over hiring, you know, just trying

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<v Speaker 3>to co cost mister Dorsey, who some have questioned before

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<v Speaker 3>in terms of his management.

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<v Speaker 5>That's what I'm saying, though, Carol, if you're own conspiracy

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<v Speaker 5>theory a little bit adjacent. I mean, you're talking about

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<v Speaker 5>a stock that's down how much from a twenty twenty

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<v Speaker 5>one peek? Can you continue to expand headcount? It's easy

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<v Speaker 5>to say, oh, well we're going to be more efficient. Okay,

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<v Speaker 5>look in the mirror. Maybe you over hired by I

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<v Speaker 5>don't know sixty percent.

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<v Speaker 3>You can come on anytime.

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<v Speaker 1>That still lost jobs.

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<v Speaker 4>I will say he did. He did address taking from.

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<v Speaker 1>The economy, right, but where are those people going?

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<v Speaker 3>But is it indicative of AI and what it's going

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<v Speaker 3>to do in the future. I don't know, we don't know,

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<v Speaker 3>or is this a very block specific Jack Dorsey story.

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<v Speaker 3>I don't know.

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<v Speaker 4>We'll tell you in eighteen. I think that's what happens.

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<v Speaker 3>Yeah, what did our team say that you get to

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<v Speaker 3>watch in terms of some of the business expansions and

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<v Speaker 3>things that's done, whether or not we see the growth

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<v Speaker 3>in those areas. If you don't, then maybe maybe it

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<v Speaker 3>isn't just AI helping out here.

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<v Speaker 4>Okay, the jury is still out on that, but the

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<v Speaker 4>conspiracy theories live on. Let's get to some of the

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<v Speaker 4>decliners on the day today. Do you want to start

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<v Speaker 4>with the banks? Look at this the KBW Bank Index

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<v Speaker 4>falling close to five percent, financial firms grappling with signs

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<v Speaker 4>that private credit issues are starting to emerge following a

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<v Speaker 4>series of blows from the threat of AI. The KBW

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<v Speaker 4>Bank Index earlier in the day fell as much as

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<v Speaker 4>six percent, all twenty three members sliding. To end the day,

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<v Speaker 4>you have Goldman Sachs down seven point five percent, Morgan

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<v Speaker 4>Stanley down six point one percent, Capital One down six percent,

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<v Speaker 4>JP Morgan down one point nine percent, every member in

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<v Speaker 4>the red today. Credit spreads also started widening. Wall Street

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<v Speaker 4>back UK mortgage lender collapsed, adding to fear that banks

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<v Speaker 4>could face rising defaults in the opaque world of a private.

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<v Speaker 1>And you saw the great story that we had about

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<v Speaker 1>that letter that was circulating around Goldman Sacks asset management.

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<v Speaker 1>The idea here that basically, you know, trying to reassure

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<v Speaker 1>clients that what's happening right now, redemption rate, software exposure

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<v Speaker 1>still relatively low and contained.

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<v Speaker 4>Yeah, we're going to be doing a deep dive. And

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<v Speaker 4>I'm a little more on Blue Houl in a minute.

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<v Speaker 4>Both James Crombie who edits credit Jenitor for credit in

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<v Speaker 4>just a few minutes. So if you guys want to

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<v Speaker 4>come over and join that conversation.

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<v Speaker 3>Well Bailey can come here.

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<v Speaker 4>Wow, thank you. Let's look at what happened to in

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<v Speaker 4>video after yesterday's route post earnings on Wednesday, shares some

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<v Speaker 4>Video today fell another four percent, this after a five

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<v Speaker 4>point five percent decline, adding to the sell off. Today,

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<v Speaker 4>the stock priced at less than twenty two times forward earnings,

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<v Speaker 4>well below its five year average of thirty seven. Basically

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<v Speaker 4>even with the S and P five hundred, it's multiple.

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<v Speaker 4>So some people, at least according to that valuation, are

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<v Speaker 4>seeing this. Dare I say as of value right now,

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<v Speaker 4>Investors are concerned that the hundreds of billions of dollars

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<v Speaker 4>in spending pledged by AI developers will have to be

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<v Speaker 4>scaled back, which would likely hit Nvidia's revenue heart. And finally,

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<v Speaker 4>Blue Owl to finish out just a tough month for

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<v Speaker 4>the company, shares on track for their biggest monthly decline

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<v Speaker 4>in nearly four years. Shares fell today by six percent

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<v Speaker 4>Anxiety turbulence over the private credit industry. Concerns over the

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<v Speaker 4>industry have mounted after Blue Owl halted redemptions in one

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<v Speaker 4>of its funds and decided to sell some assets Telpay investors.

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<v Speaker 4>That spark to drop in the firm's market value. Bluell

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<v Speaker 4>shares down by six percent today.

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<v Speaker 1>I'm so fascinated by this story, and I'm fascinated by

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<v Speaker 1>just how much all these other names are getting dragged down,

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<v Speaker 1>like Goldman and KKR and Apollo and others. And they

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<v Speaker 1>gets see the idea too. It's not even so much

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<v Speaker 1>whether there truly is a crack going on underneath the surface.

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<v Speaker 1>It's out the idea of transparency. And some of these

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<v Speaker 1>companies are more important their CEOs. They need to get

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<v Speaker 1>out there and start talking about this, assuming that there

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<v Speaker 1>is nothing to hide there, I do want to quickly

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<v Speaker 1>they'll point out what we saw in the moving yields,

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<v Speaker 1>because there was a bit of a flight to safety,

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<v Speaker 1>not only here on this day, but quite frankly for

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<v Speaker 1>the month as well. I mean, you take a look

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<v Speaker 1>at that drop in yields. Of fact, this is actually

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<v Speaker 1>the best month for treasuries on a price basis in

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<v Speaker 1>about a year. TLT up four percent. That's the main

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<v Speaker 1>etf that tracks long dated bonds. Four percent gain right

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<v Speaker 1>now for the month of February, and that's pretty much

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<v Speaker 1>the gains for the years. That gives you a sense

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<v Speaker 1>of just how much things have flipped and sentiment in

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<v Speaker 1>the past month.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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