WEBVTT - Strategy Climbs, Housing Shares Sink, Lockheed Falls

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

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

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

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<v Speaker 3>I'm Jim Steeneveek along with Carol Masser. Let's take a

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<v Speaker 3>look at some stocks on the move today with us

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<v Speaker 3>is Bloomberg News cross Asset reporter Emily GRIFFEO. Emily. A

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<v Speaker 3>lot to choose from.

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<v Speaker 4>Yeah, there was a lot to choose from.

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<v Speaker 5>Let's start with micro Strategy now named Strategy to your

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<v Speaker 5>mstr This is a bitcoin holding company and it's up

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<v Speaker 5>about two percent right now. It's pairing games, though, was

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<v Speaker 5>up almost eight percent earlier in the day, and it's

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<v Speaker 5>all on this news that MSCI, one of the largest

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<v Speaker 5>index providers, decided to keep digital asset.

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<v Speaker 4>Treasury companies in its stocks.

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<v Speaker 5>Right. Yes, so, back in October they had proposed excluding

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<v Speaker 5>digital asset treasure companies from the indexes.

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<v Speaker 4>And the reason why people care is because if a

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<v Speaker 4>company is in.

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<v Speaker 5>An index, like trillions of dollars, index funds by it,

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<v Speaker 5>so it weighs on the stock a lot if it's

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<v Speaker 5>not in the index. Late yesterday they said they're maintaining

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<v Speaker 5>index treatment for digital asset treasuries, which includes strategy for now.

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<v Speaker 5>They also said that they're going to be launching a

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<v Speaker 5>broader consultation on how non operating companies should be treated.

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<v Speaker 5>So there's something to do with you know, if the

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<v Speaker 5>company just holds a lot of assets on its asset

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<v Speaker 5>on its balance sheet and doesn't have like an actual business,

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<v Speaker 5>what does that mean? But for now, the company is

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<v Speaker 5>in and the stock is up.

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<v Speaker 1>I feel like it's there's been back and forth on

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<v Speaker 1>this one for a while, right, we've definitely seen its

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<v Speaker 1>fortunes a little bit different.

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<v Speaker 5>Yes, ate and not just MSCI, a lot of like

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<v Speaker 5>there's been a lot of talker are they going to

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<v Speaker 5>get added to the S and P five hundred?

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<v Speaker 4>What would that mean?

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<v Speaker 5>But again, they're a crypto company, and so the stock, yes,

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<v Speaker 5>and the stock moves a lot in tandem with bitcoin.

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<v Speaker 4>So it's down about sixty percent in the last year's.

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<v Speaker 3>Okay, what else feeling about today?

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<v Speaker 4>So I'm also looking at shares of Blackstone. This is

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<v Speaker 4>an interesting one.

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<v Speaker 5>The stock was down as much as nine percent today,

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<v Speaker 5>now down about four percent. Donald Trump saying that he

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<v Speaker 5>would move to ban institutional investors from buying single family home,

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<v Speaker 5>so that you can see in the stock chart that

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<v Speaker 5>that weighed on shares of Blackstone. Now if the stock

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<v Speaker 5>is trimmed some losses, and we're also looking at some home.

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<v Speaker 4>Builders down as well.

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<v Speaker 5>Blackstone notorious for being a major investor in residential real estate.

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<v Speaker 5>In twenty twenty one, they bought Home Partners of America

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<v Speaker 5>in a six billion dollar deal.

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<v Speaker 4>It was interesting though.

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<v Speaker 5>Neil Duta from Renaissance Macro had a note out he said,

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<v Speaker 5>institutional investors represent a very small share of sales, like

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<v Speaker 5>just two percent, and bag our investors buy other retail

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<v Speaker 5>by other homes to.

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<v Speaker 3>Mike McKee, who earlier today sent me a note, a

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<v Speaker 3>long note from the American Enterprise Institute that had done

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<v Speaker 3>research on this, and perhaps this was that Neil was

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<v Speaker 3>referring to. But the research, they argue at the American

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<v Speaker 3>Enterprise Institute doesn't support the narrative that institutional ownership of

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<v Speaker 3>homes drives up home prices.

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<v Speaker 5>Right.

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<v Speaker 4>But nevertheless, look at how the stock reacted.

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<v Speaker 5>We saw this truth social post from Trump, and I

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<v Speaker 5>mean the stock fille nine percent.

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<v Speaker 1>So you know, it's it's fascinating because I think after

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<v Speaker 1>the Great financial crisis, right, and there were so much

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<v Speaker 1>excess homes that were out there, and people were like

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<v Speaker 1>doing things like maybe we should blow them up, maybe

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<v Speaker 1>we should let immigrants buy them, like do different things

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<v Speaker 1>to get rid of that excess supply. And then Blackstone

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<v Speaker 1>started buying up those properties rental and it was a

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<v Speaker 1>smart bet. But that was my question too, It's like,

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<v Speaker 1>how much are they really buying up in terms of

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<v Speaker 1>the supply that are out there.

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<v Speaker 5>Yeah. I feel like this is like a meme on

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<v Speaker 5>financial Twitter. You see a lot of people constantly talking

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<v Speaker 5>about the housing crisis, and then Blackstone always comes.

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<v Speaker 3>To Politically, It's a very populous thing to do.

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<v Speaker 4>Yeah, it sounds good.

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<v Speaker 1>I've actually had family members when we about politics and like,

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<v Speaker 1>well to all the institutional investors, you own homes. And

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<v Speaker 1>I'm like, I'm not so sure.

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<v Speaker 4>Yeah. All right.

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<v Speaker 1>Let's talk about another thing that has come out of

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<v Speaker 1>the President today. He has been talking about the defense companies.

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<v Speaker 5>Right, so Lockheed Martin this is TAKR lmt's down about

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<v Speaker 5>two percent. Trump coming out today saying he will not

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<v Speaker 5>permit dividends or stock buybacks for defense companies until problems

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<v Speaker 5>are rectified, including pay production of equipment and plants. So

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<v Speaker 5>back in December he had kind of signaled this desire

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<v Speaker 5>to meet with defense contractor execs and tell them to

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<v Speaker 5>spend more on weapons development and not stock buybacks. So

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<v Speaker 5>we're seeing some of that action come to light today.

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<v Speaker 5>And yeah, the stock down about two percent.

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<v Speaker 1>Yeah, I've seen a few names fight move in on that.

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<v Speaker 4>Hey, Emily, thank you. Actually three percent now, ah moved.

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<v Speaker 2>Even more the stock mover's report from Bloomberg Radio. Check

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