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The next is an abridged transcript:
Trump heads to Davos as tariff threats pressure U.S.-European relations. (0:17) European leaders ponder utilizing commerce ‘bazooka.’ (1:04) Netflix earnings in focus amid Warner deal hypothesis. (1:53)
It’s a holiday-shortened week, with U.S. markets closed Monday for Martin Luther King Jr. Day.
Throughout the pond, the World Financial Discussion board will get underway in Davos, Switzerland—and it’s taking place at a second when geopolitical tensions are clearly heating up.
President Donald Trump is main the largest-ever U.S. delegation to Davos. He arrives Tuesday and is about to ship a keynote deal with on Wednesday.
Trump is predicted to debate the warfare in Ukraine, however he’ll additionally face some sad European allies following his determination to impose new tariffs on a number of nations—together with the U.Okay., France, Germany, and Denmark—linked to his renewed push over Greenland.
In line with the president, eight nations face a ten% tariff beginning February 1. That charge would soar to 25% on June 1 until agreements are reached earlier than then.
“This tariff might be due and payable till such time as a deal is reached for the entire and complete buy of Greenland,” Trump posted.
French President Emmanuel Macron pushed again strongly, saying,
“No intimidation or threats will affect us—whether or not in Ukraine, Greenland, or wherever else on the planet.”
He added that tariff threats are unacceptable and “don’t have any place on this context” and that he’ll request the activation of EU’s the anti-coercion commerce software on behalf of France.
The bloc’s “anti-coercion instrument”—unofficially dubbed Europe’s commerce “bazooka,” may very well be used to impose limitations on main American expertise firms and different service suppliers that conduct substantial enterprise on the continent.
And whereas geopolitics will dominate loads of the dialog, AI can even be entrance and heart in Davos this yr—with the phrase “Co-Pilot Economic system” absolutely echoing in halls. That’s use of AI designed to reinforce employees relatively than change them.
Among the many executives attending:
Nvidia CEO Jensen Huang, Microsoft CEO Satya Nadella, and Salesforce CEO Marc Benioff.
Looking forward to earnings, Netflix (NFLX) might be within the highlight, because it pursues a deal for Warner Bros. Discovery (WBD).
Wall Road is searching for EPS of $0.55 on income of $11.97B when the streaming firm experiences Tuesday.
Main holiday-season releases—like “Emily in Paris” and “Stranger Issues 5,” together with Christmas NFL video games—have boosted optimism.
Over the past three months, EPS estimates have seen 18 upward revisions versus 9 downward. Income estimates have been revised up 25 instances versus six downward.
In the meantime, current experiences counsel Netflix is getting ready an all-cash provide for WBD. Analysts say that might strain EPS, even when it helps keep away from significant possession dilution.
Wedbush analyst Alicia Reese says Netflix is positioning for substantial development in international promoting, and that shouldn’t be missed. She provides Wedbush expects advert income to turn into Netflix’s main income driver in 2026, with vital alternatives in 2027.
Additionally on the earnings calendar:
3M (MMM) and United Airways (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 earnings traders, 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.
