and diageo in particular is hugely exposed. it relies a lot now on on tequila and scotch sales, tequila in particular to the us. it's been one of the booming sectors in the last decade. there are already signs that that was beginning to recede, and this is going to hit that even further. >> i mean, it sounds like such a grim outlook for this sector. so, you know, typically when you hear that the next question is around consolidation, are we going to see these companies come together to try to, you know, save themselves effectively? what do you think the future looks like? >> yeah, i think the alcohol industry has always been an industry that that favors consolidation. i think that's some of the share prices now of the alcohol companies will make them viable targets. when previously they might not have been. so i would fully expect some m&a activity potentially really big deal in the next couple of years. >> all right. we'll leave it there. hopefully we'll get you on. if we do get one of those big deals come through. johnny fors

diageo pulled its guidance this morning.want to buy a high quality company and bet that they will figure what needs to be figured out, it is pepsico. >> all right. >> well, there's one of. our movers this morning. we're going to try and get to spotify. >> we'll get to paypal. we've got kkr. >> apollo. >> ubs. >> a whole bunch of names as well. and don't forget you can catch us anytime and anywhere by listening to and following the squawk on the street opening bell podcast. >> invest with an advantage with cnbc pro. >> cnbc pro gives. >> you the tools that you need to become a better investor. >> go pro with a flash sale offer for a limited time at gina costa... looking simply stunning... what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. nate jones... steps up to the mirror... lines things up... towels off... checks his fidelity app... looks to outside analysts to get a second op

45% of diageo. >> yes. but okay, so the tariffs coming into this election we tariffs were always a con of the trump getting elected. the pros are increased government efficiency. and what we're seeing is overshadowed over the weekend is you know you remember the 80s when defense companies were spending $600 on a bolt or, you know, $1,000 on a toilet seat. they're starting to expose some, you know, excess spending. and if we can get a more efficient government spending, i think that's a pro that we have to think of it. and these companies that are generating the bulk of their revenues from federal spending have been decimated since the election. they were outperformed over the last four years. we call them the doji dogs. and they've since election day. they have given up all their outperformance over the last four years. >> well, do you remember the last thing. >> that hassett said to us, becky, yesterday was. >> we're going to do the president's budget and we expect when we put all of the policies in. >> we

kind of peace agreement as a concession, then maybe things can resolve themselves. around the world, diageo, and they say, listen, you know, over a third of our sales or canada because it's canadian whisky or it's tequila, and as a result, we cannot tell our investors what our earnings fluid a situation. able to tell people just a little bit of visibility the unsettling, it's the uncertainty, which is kind of rocking people at the moment. fall a little bit. donald trump doesn't like to see the stock market yeah. are the dangers of a china—us trade war greater than these other cases? i mean, those are the two most powerful economies in the world. trans—pacific trade is the most important relationship on earth when it comes...economically. and china retaliated with things like soybeans. so i think at the moment we're in the foothills of this. it's not all—out trade war yet. probably manage that. and what about britain in all this? the question for the uk is which way does itjump between cosying up to the us, you know, a trade deal clearly, in bald economic terms, 45% of uk exports go to the e

uncertainty about whether any firm, it's thousands of miles from its uk headquarters, but drinks giant diageod tariffs by contentions with and allies, ros anniversaries and allies, ros takes a look what anniversaries and allies. ros takes a look what the us atkins takes a look what the us actually has an return so far. on tariffs, donald trump says, "it will all be worth the price a trade war? become a us state. of the opioid fentanyl. on the border. all of that was agreed before the tariffs. imports, with immigration and drugs again a concern. like, forever. are new troops. for context, mexico has deployed thousands of troops at the border before. then there's china. donald trump has introduced a 10% tariff on all chinese goods and in reply, china is promising tariffs creating confusion and uncertainty is perhaps sometimes the point, but with mexico, we see tariffs used to negotiate on an issue away from trade, in this case border security. of all seizures of fentanyl entering the us, 0.2% are made at the canada border. are these tariffs about the border or more about a very public flexing o

but i think that...i've been talking to big businesses around the world, diageo, the drinks company,now, over a third of our sales or canada because it's canadian whisky or it's tequila, and as a result, we cannot tell our investors what our earnings are going to be over the next year because it's too fluid a situation. and that matters, because these big corporations like to be able to tell people just a little bit of visibility about how they're going to do, so i think in a way it's more the unsettling, it's the uncertainty, which is kind of rocking people at the moment. and the other thing i would say is that we saw the stock market fall a little bit. donald trump doesn't like to see the stock market fall, particularly if people draw a line between the stock market falling and what he's up to. china's different. yeah. these other cases? yes, i think they are. i mean, those are the two most powerful economies in the world. trans—pacific trade is the most important relationship on earth when it comes...economically. remember when trump won, you know, the first term, he put tariffs o

trying to drive investment in wood. miles from its of miles from its uk headquarters, but drinks giant diageoits mexican tensita and�*jesca“ businesses risk tariffs of whiskey businesses risk tariffs, of million. may face barbeiiis and other british 77 could suffer businessescouldsufferindiredl too. ?%ees§§ the heat states b its to the heat states by its relationships with firms in the llhiah. union. to the extent a british firm is —:::£ — -w* z toafarm 7 7 to a farm in france or france or germany faces the germany, france or germany faces the tariffs, that is going to pass tariffs, that—is going to pass and feed back uk. through and feed back into the uk. president trump is she promote president trump is aiming to promote american interests at expense of american interests at the expense of others, but the man who wrote the art of the 7 art of the deal may attem pts atte m pts to attempts to outmanoeuvre his attempts to outmanoeuvre his trading partners have repercussions. including at home. dharshini david, news. let's speak to our china correspondent laura tell us more about impact these t

for that reason, rémy cointreau, down about 3.4%, diageo down about 3% as well. the chip makers have also seen some heavy selling this morning. a lot up in the air around what may come next in the chip space from the us administration. could we see this sector targeted next in a big way? you've got asml down more than 3%, asmae, stmicro and infineon all trading sharply lower this morning. dan boardman's weston, the ceo and cio of brg wealth management, joins me now. dan, great to have you with us this morning. you know, on the one hand, we all talk about how we were bracing for tariffs. this was perhaps the number one topic around the new administration. and yet here we are heavy selling across global markets, across asset classes, suggesting that markets weren't priced for this. >> yeah i think that's fair. >> i think. >> the narrative had built up over the last couple of months that trump wasn't going to follow through with the tariffs, he was just. going to use as a threat for. his domestic. >> political agenda, and to try and get. >> some. concessions out of,

. >> look at like when we're talking like beer and liquor, it goes beyond anheuser-busch or diageo. you're looking at the american distillers, the winemakers, the manufacturers, the trucking companies that actually move the product into the country. they're not going to be moving that product. truckers get paid based on what they move. so this is more than just the stated obvious of like the sector trade takes people. and more importantly, when you go to the supermarket, american consumers are going to have one heck of a sticker shock. >> one of the other things i want to point out is that canada and mexico are a little different from each other, but it constitutes a massive trading bloc. but they're very different from china. the reasons for wanting to do these things, because we always hear people saying, you know, terrorists can be useful. they can be a very useful tool in certain areas to protect certain industries or to moderate behavior on the part of other countries or increase human rights protections. but canada and mexico and china are not in the same bucket. china needs t

we actually heard from diageo, one of the largest spirits companies in the world, saying they can't giveir medium term guidance. they believe they're going to take a multi-million dollar hit when it comes to its overall profit. when you're talking to the companies in your group, what's changing right now as they try to adjust to this? are they changing their plans for capex, potentially, or are they changing their plans for hiring expansion? what's the biggest change that you're hearing from the ceos and other companies in your group? >> well. >> it's not mentioned. >> i mean, we're. navigating a lot of uncertainty and contingency plans have to be in place. i mean, we've got potential trade and tariff risks between the us and the eu. obviously, mexico and canada. all, all, all four markets are thriving markets. so but we also have to recognize and you know and appreciate the president is trying to reduce the trade deficit. of course. certainly the fentanyl crisis is a significant one for the united states and communities all around the country. so, you know, we're going to buckle up as a

you mentioned diageo and it was the right call to mention that. how many more of those do you hear?oes that begin to actually show a toll if we don't see more certainty in the next weeks and months? jonathan: how can they offer any outlook into sales of the u.s. when half of the sales are coming from mexico and canada facing the prospect of 25% tariff. the range that we saw in foreign-exchange just yesterday, 3% to the upside and down 2% plus to the downside. 5% swings on dollar max is kind of unreal. >> just want to point this out, the swings and sentiment also going further. did you see canadians booing the u.s. at the hockey game? there is this definite visceral reaction. does that go away? or do these entrenched hurt feelings really become pervasive between our neighbor and us? jonathan: i hope that goes away. here is uehara. yahaira: china is retaliating against doldrums tariffs. beijing imposed a 15% tariff on less than $5 billion of u.s. energy imports and a 10% fee on american oil and agricultural equipment. the chinese tariffs are set to kick in february 10, possibly leavin

it's more than diageo. it's more than anheuser-busch.the corn, the vineyards that grow the grapes and employ the workers, and also the truckers. truckers now are going. >> to. >> be losing a trade. lane trucks get. paid based on load. so there is way more than just the stock angle of this. and also everyone's talking about oil when it comes to canada. what about the chemicals that the united states depends on. we're talking about chlorine. chlorine is used for our water treatment and food processing. it's actually our primary source of chlorine as an import. >> and from your perspective, what states do you think will become the most impacted here? >> sure. >> so according to some brand new research from this trade partnership group called partnership worldwide, they compiled data showing how much taxes that businesses are paying. and you've got texas, california, michigan, illinois, ohio and georgia, and they're actually paying the most taxes to texas last year paid a whopping $47 billion based on those taxes. and now adding on to the ad

or if the chief has any thoughts on that you are there is a reason and the priority list with the diageo's basically didn't didn't make the cut and there were several egos that were on the list that we didn't complete so that is still a something that we hope to get to this commission is going to take the people to do the work. but still that ego didn't make the cut when we had to prioritize and try to get our sierra work completed it just it was below where we could get to it. >> it did make the cut for a number of years right because a priority list is is annualized right. but it would be fair to say that it's still the intention of the department to develop a data collection. >> general order. yeah, absolutely there and again this is some of this this the work and even what you just mentioned with the data integrity unit i hope some point when the budget gets some relief on the budget or depending on what the priorities are and we've been asked to rank our priorities. and just let me clarify the sworn positions are not frozen but everything else is so some of our yeah and we have positi