News breaks in real time on Twitter, 24 hours a day, 7 days a week. Whether it’s news reported by professional journalists or newsworthy items from local and national government officials, public and private company executives, or even citizens, the non-stop news cycle is happening on Twitter. With so much information being shared on Twitter, it’s hard for financial professionals to tap into the millions of Tweets generated every day in more than 60 different languages. As Bloomberg has shared in this white paper, some of that news has an immediate impact on businesses and can even move markets. But how to find the real news within the vast conversation on Twitter?
Bloomberg has been helping its Terminal subscribers to identify market-moving Tweets since 2013. By partnering with Twitter, Bloomberg can optimize the ability to surface the most relevant and high-quality content and conversations and help its customers identify these moments before they are available through mainstream news channels.
As Bloomberg recently announced, we are expanding our partnership so that Bloomberg can now provide a new, real-time feed of curated Twitter data to its enterprise customers. Algorithmic traders using Bloomberg’s Event Driven Feeds product can now access potentially market-moving Tweets curated by Bloomberg technologies and expertise and enriched with Bloomberg insights and metadata.
What does this look like in a real world scenario? The image below shows the magnitude of a market-moving Tweet. On January 29, 2018, the @CNBCnow handle broke the news that Maxim ($MXIM) was an acquisition target. There was a flood of buying activity (green line) at the time of the original Tweet (red line) driving the price (grey line) up 16.1%. Buying volume accelerated when the Bloomberg Headline (blue line) came out a few minutes later, driving the price up another 12.5%. However, by that time, the news was already priced-in and $MXIM fell to levels similar to when the news first broke on Twitter.
For financial professionals who depend on finding the signal through the noise, this partnership will allow investment decision makers to more easily integrate Twitter Data directly into trading models so they can act on curated data with the speed, reliability, and accuracy they expect from Bloomberg.
If you’d like to see more examples of how investment professionals can receive breaking news before the market moves, please see Bloomberg’s recent white paper.