Alexander Shelegov/iStock Unreleased via Getty Images
The following is an abridged transcript:
Trump heads to Davos as tariff threats strain U.S.-European relations. (0:17) European leaders ponder using trade ‘bazooka.’ (1:04) Netflix earnings in focus amid Warner deal speculation. (1:53)
It’s a holiday-shortened week, with U.S. markets closed Monday for Martin Luther King Jr. Day.
Across the pond, the World Economic Forum gets underway in Davos, Switzerland—and it’s happening at a moment when geopolitical tensions are clearly heating up.
President Donald Trump is leading the largest-ever U.S. delegation to Davos. He arrives Tuesday and is set to deliver a keynote address on Wednesday.
Trump is expected to discuss the war in Ukraine, but he’ll also face some unhappy European allies following his decision to impose new tariffs on several nations—including the U.K., France, Germany, and Denmark—linked to his renewed push over Greenland.
According to the president, eight countries face a 10% tariff starting February 1. That rate would jump to 25% on June 1 unless agreements are reached before then.
“This tariff will be due and payable until such time as a deal is reached for the complete and total purchase of Greenland,” Trump posted.
French President Emmanuel Macron pushed back strongly, saying,
“No intimidation or threats will influence us—whether in Ukraine, Greenland, or anywhere else in the world.”
He added that tariff threats are unacceptable and “have no place in this context” and that he will request the activation of EU’s the anti-coercion trade tool on behalf of France.
The bloc’s “anti-coercion instrument”—unofficially dubbed Europe’s trade “bazooka,” could be used to impose limitations on major American technology companies and other service providers that conduct substantial business on the continent.
And while geopolitics will dominate plenty of the conversation, AI will also be front and center in Davos this year—with the phrase “Co-Pilot Economy” surely echoing in halls. That’s use of AI designed to augment workers rather than replace them.
Among the executives attending:
Nvidia CEO Jensen Huang, Microsoft CEO Satya Nadella, and Salesforce CEO Marc Benioff.
Looking ahead to earnings, Netflix (NFLX) will be in the spotlight, as it pursues a deal for Warner Bros. Discovery (WBD).
Wall Street is looking for EPS of $0.55 on revenue of $11.97B when the streaming company reports Tuesday.
Major holiday-season releases—like “Emily in Paris” and “Stranger Things 5,” along with Christmas NFL games—have boosted optimism.
Over the last three months, EPS estimates have seen 18 upward revisions versus nine downward. Revenue estimates have been revised up 25 times versus six downward.
Meanwhile, recent reports suggest Netflix is preparing an all-cash offer for WBD. Analysts say that could pressure EPS, even if it helps avoid meaningful ownership dilution.
Wedbush analyst Alicia Reese says Netflix is positioning for substantial growth in global advertising, and that shouldn’t be overlooked. She adds Wedbush expects ad revenue to become Netflix’s primary revenue driver in 2026, with significant opportunities in 2027.
Also on the earnings calendar:
3M (MMM) and United Airlines (UAL) report Tuesday.
J&J (JNJ), Kinder Morgan (KMI) and Halliburton (HAL) weigh in on Wednesday.
Intel (INGC), Visa (V), GE Aerospace (GE) and P&G (PG) are up Thursday.
And for income investors, Caterpillar (CAT) and Dell (DELL) go ex-dividend on Tuesday. CAT pays out on Feb. 19 and Dell pays out on Jan. 30.
Colgate-Palmolive (CL) goes ex-dividend on Wednesday with a Feb. 13 payout date.
Pfizer (PFE) goes ex-dividend on Friday, paying out on March 6.
Credit: Source link
