Stock Movers Telefonica Tariff Fears, Rio Tinto Up, Barry Callebaut Slumps
Jul 10, 2025
The impact of President Trump's 50% tariff on Brazilian imports is shaking European companies, with Telefonica and Carrefour among the worried. Meanwhile, European miners, particularly Rio Tinto, are thriving as iron ore prices soar. In contrast, Barry Callebaut faces hardships, slashing its sales volume forecast due to fluctuating cocoa bean prices and declining chocolate demand. The podcast navigates these market shifts and the broader economic climate affecting various industries.
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Europe's Exposure to Brazil Tariffs
- European companies like Banco Santander and Telefonica are vulnerable to the US imposing tariffs on Brazilian imports.
- Their revenue heavily depends on Brazil, and a weaker Brazilian real reduces their profits when converted to euros.
China Stimulus Boosts Stocks Amid Tariff Tensions
- The US tariff on Brazil introduces political risk affecting the dollar's value.
- Speculation of more stimulus from China is boosting European stocks, especially miners and luxury brands.
Barry Callebaut Struggles With Cocoa Volatility
- Barry Callebaut faces sales volume declines due to volatile cocoa prices and reduced US chocolate demand.
- Weather impacted cocoa supply, squeezing margins and softening chocolate consumption.