Temu, Tesla prices, Merck Kgaa Deal: Trend -Ticker

00:00 Speaker A

It is now time for some of today's trend kickers. This morning we look at PDD, Tesla and Merk KGA. First Pindo, the parent company of the online retailer Temu. The Chinese retailer now passes on almost all new import taxes from President Trump to US consumers and doubles the costs of some products more than doubled. Deliveries of goods worth less than 800 US dollars were previously excluded from the tariffs according to the Deminimis rule. You will now be exposed to a tariff of 120% or a flat fee of $ 100 per post article from May 2. Cali Cox is still here with us to discuss. It is really interesting, Cali when you look at the numbers here. Some of these articles double the costs for Temu and Pindudu competitor Shein, which increase some items by up to 377%. Obviously, these articles were already very affordable. This increase sounds higher than the final number. But just wanted to make their attitude to how this affects consumer mood if there are such price hikes.

01:35 Cali Cox

Yes, we feel it, right? This is these mutual tariffs that we, who have been freaking out the markets for some time, finally make their way to our wallets. And I think that could be a shock for consumers, although consumers expect a higher inflation to a certain extent. We see that we have seen this in surveys for months. Do you know what I think, what shocked me, I hear, you know, the Fed does this research on site. It is called the beige book. Uh, the beige book actually came out last week, but that was one of the first signs of data that we pass on with tariffs in relation to the companies. And it is said that many companies plan to pass them on what was a shock for me because I think that the ability of the consumer to accept it is currently a question mark.

02:52 Speaker A

It is certainly, and China also seems to be ready to move her own consumers with economic challenges, which may affect negotiations. But we want to increase prices in Tesla in Canada and also drive the pre-tariff inventory. The car manufacturer encouraged buyers in the country to buy cars that were imported in front of Canada's mutual tariffs for vehicles produced in the USA. You can see Tesla shares together with the wider market at almost 1%. We spoke, Cali, about how exposing Tesla on the effects of tariffs and how they think about the and exposure of the wider car sector?

03:44 Cali Cox

Well, car manufacturers are one of the largest industries that are exposed to global UH global suppliers. Tesla definitely up there. 80% of its suppliers are outside the USA, so it can be observed, especially if they are a consumer discretion investor. Tesla is a discretionary existence of consumers. We consider it a technical share, but that's not what it is.

04:15 Speaker A

Mhm. Right, exactly. And it is interesting to see when you are moved at the discretion of consumer movements, you have to check whether it is Tesla or the entire basket or not because it is such a large part of it. We are also approved by the German drug company, Merk KGA, to buy the USBiotech company SpringWorks therapeutics for around 3.9 billion dollars. The German company says that the deal wants to strengthen its health segment and expand its presence in the USA. The transaction is expected to be closed in the second half of this year. You can see the shares listed in Denmark 1.7%. Now it is of course interesting that this happens outside of the United States, but I wonder how to think about the fact that they think about the trade because the trade war on the globe affects the globe, and yet we still see news from deal making. How do you think about the type of path to it?

05:22 Cali Cox

Yes, every headline that I get for deal making, I love to see them. It is a sign of business confidence, it is a sign that these interest rates are of course a little, that's global, isn't it? But worldwide, you know, the financing is a little easier to swallow. Deal making is a good sign in this environment. It is encouraging.

05:51 Speaker A

Well, Cali, thank you very much. And for our audience you can also scan the following QR code to track the best and worst stocks with the side of the trend sticker from Yahoo Finance.