Diageo and Novo Tariff Exposure; Synopsis Upside Move

On this episode of Stock Movers:
- Diageo (DEO) shares are lower this morning due to the company's exposure to Mexico after President Trump announced tariffs on Mexico and the European Union. Also, Bloomberg Intelligence notes the company's ambition to boost its share of the alcohol beverage market to 6% by 2030 from 4.7% looks a tough ask right now, given fragile consumer confidence and uncertainty regarding tariffs and pricing. It comes as management has withdrawn its midterm 5-7% organic-sales target.
- Novo Nordisk (NVO) is moving this morning due to its exposure to the US and tariffs. The Trump administration also proposed to consider fixed-dose combination drugs for price cuts if they don’t have a “clinically meaningful difference” compared to their original drugs. The pharmaceutical industry is resisting the proposal, with companies like Merck and Bristol Myers Squibb raising questions about the government’s legal authority and statutory basis to implement it.
- Ford (F) and General Motors (GM) are under pressure this morning. Both are moving downwards. It comes with the US recently announcing sweeping new tariffs on imports from both Mexico and the EU.
- Synopsis (SNPS) is moving this morning and at one point was the biggest upside mover in early trading. The company secured China's approval to buy out Ansys Inc. for $35 billion, according to Bloomberg. The buyout was already approved by European and US authorities, and Synopsys has now cleared one of the last major hurdles to a deal intended to shore up its market position.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:08):
The Stock Movers podcast, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 1 (00:17):
Let's take a look at some stocks on the move today.
I'm Nathan Hager, joined by Bloomberg's Kritty Gupta on a
morning of trade tensions seemingly escalating this morning between the
US and the European Union. Critty, let's take a look
at some stocks that could be affected if these tensions continue.

Speaker 3 (00:33):
Good morning, Good morning, Nathan. Well, immediately my mind went
to of course, so was thirty percent on the EU
that has been threatened by Donald Trump, but also thirty
percent on Mexico as well. And this one is close
to my heart because whenever we see a Mexican tariff headline,
specifically here in Europe, there's one stock that always moves
off of it in is Diagio, because they are one
of the largest sellers of tequila there. I think something

(00:55):
like ten or eleven percent comes revenue is exposed from
that Mexico to US or US to Mexico tariff, but
of course the export's coming from Mexico to the United States. Nevertheless,
if you are into tequila at seven in the morning
or any other time, this is the one for you.
DGE is this ticker for the London listing, which is
actually higher this morning by seven tenths of one percent.
But for our American audience, keep your eye on the ADRs.

(01:18):
It's also listed in the US markets. DEEO is your ticker,
and those shares are down about four tenths of one percent.
It's likely to shake out at the open, but this
kind of arbitrage, basically, this difference between the two listings
on both sides of the Atlantic is also something you're
seeing in another big European company that has a lot
of exposure to the United States, and that is Novo Nordesk.

(01:40):
So again alongside your tequila if you want some mozempic
with it as well, this is the stock to keep
an eye on. Because Novo Nordisk is a Danish company,
sixty percent of their exports go to the United States.
Of course, as they kind of capitalize on this weight
loss theme, those shares are hired by two tenths of
one percent in the European session, But again if you
look at those ADRs, that's where you see the pain

(02:01):
so Envo only down about one tenth of one percent.
Earlier in the session, it was down far, far more,
And that's the one you want to keep an eye on.
So keep an eye on some of these European ADRs
that have a lot of exposure to America, specifically exposure
to these tariffs. Another space that we're going to be
looking at specifically is the auto sector, and that's where
you got to go to your favorites. You gotta go
to Ford, you got to go to General Motors, both

(02:23):
under pressure this morning. A lot of the has to
come with their supply chains that extend into Mexico. So
Ford Chairs, which are the ticker, just the letter F
trading just sh I have twelve dollars a share down
about three tenths of one percent. General Motors is the other.
GM is your ticker there down a whopping one point
seven percent. But I'm not seeing a ton of trades
in the stock just yet in the pre market, So

(02:44):
just keep an eye on how this one shakes out
as we get closer to the opening bells on Wall Street.
Trading on about fifty two dollars and change this morning.
A couple of others that you want to definitely keep
your eye on as we talk about trade, As we
talk about kind of the chip sector, Synopsis is one
that's catching a lot of attention. Is your biggest volume
mover to the upside. SNPs is your ticker. This is

(03:06):
one that has seen quite a bit of scrutiny when
it comes to the deal flow with China. It looks
like China is conditionally approving the Synopsis and ancest deal.
This is a big deal when it comes to their
chip supply chain. It was a thirty five billion dollars deal.
Not everyone thought it would go through, but this is
perhaps an olive branch in the trade war between the two.

Speaker 2 (03:26):
The Stock Movers podcast from Bloomberg Radio. Check back with
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