Chapter 1: What are the implications of Trump's tariff threats at Davos?
Welcome to Seeking Alpha's Wall Street Brunch, our Sunday look-ahead to this week's market-moving events, along with the weekend's top news and analysis. Hello, today is Sunday, January 18th, and I'm your host, Kim Kahn.
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 in a moment when geopolitical tensions are clearly heating up. President Donald Trump is leading the largest-ever U.S. delegation to Davos.
Chapter 2: How are European leaders responding to U.S. trade policies?
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 1st. That rate would drop to 25% on June 1st unless agreements are reached before then.
Chapter 3: What is the significance of the 'co-pilot economy' at Davos?
The tariff will be due and payable until such time as a deal is reached for the complete and total purchase of Greenland, Trump posted.
Chapter 4: What earnings reports should investors watch this week?
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 the EU's 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 the use of AI designed to augment workers rather than replace them.
Chapter 5: How are Netflix's strategies impacting its market position?
Among the executives attending are NVIDIA CEO Jensen Huang, Microsoft CEO Satya Nadella, and Salesforce CEO Mark Benioff. Looking ahead to earnings, Netflix will be in the spotlight as it pursues a deal for Warner Bros. Discovery. Wall Street is looking for EPS of $0.55 on revenue of $11.97 billion when the streaming company reports on Tuesday.
Major holiday season releases like Emily in Paris and Stranger Things 5, along with NFL Christmas games, have boosted optimism. Over the last three months, EPS estimates have seen 18 upward revisions versus 9 downward. Revenue estimates have been revised up 25 times versus 6 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 and United Airlines report Tuesday. J&J, Kinder Morgan, and Halliburton weigh in on Wednesday. Intel, Visa, GE Aerospace, and P&G are up Thursday. And for income investors, Caterpillar and Dell go ex-dividend on Tuesday. Cat pays out on February 19th, and Dell pays out on January 30th.
Colgate-Palmolive goes ex-dividend on Wednesday with a February 13th payout date. Pfizer goes ex-dividend on Friday, paying out on March 6th.
That's all for today's Wall Street Brunch. Look for links to stories in the show notes section. Don't forget, these episodes will be up with transcriptions at seekingalpha.com slash WSB. And join the elite community of real investors to unearth great investing ideas. Just head to seekingalpha.com slash subscriptions.
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