The Rundown - Trump Threatens New Trade War Over Greenland, Netflix Switches to All Cash for WBD Deal

Episode Date: January 20, 2026

Market update for Tuesday, January 20, 2026.Follow us on Instagram (@TheRundownDaily) for bonus content and instant reactions.Federal Reserve Deep Dive: watch hereInterview with Bloomberg’s Ashley Carmen: watch hereIn today’s episode:Stocks slide as Trump’s Greenland tariff threat rattles global marketsSmall caps hit record highs while Big Tech continues to lagTesla emerges as an early winner as Canada reopens its market to Chinese-made EVsNetflix goes all-cash in its bidding war for Warner BrosWinners and losers from today’s market, including RAPT Therapeutics and 3MThe NYSE is exploring 24/7 trading for digital stocks

Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zaid Admani, and today is Tuesday, January 20th. In today's episode, we'll tell you how the markets are reacting to Trump's latest tariff threats regarding Greenland. We'll also dive into the latest EV deal that Canada made with China and why Tesla could be an early winner. Then stick around to the end of the show to find out why tokenized stocks and ETFs might be. be coming to the New York Stock Exchange very soon. We got a great show for you today. Let's go. Markets are coming off a down week. The S&P 500 fell by 0.4% last week, while the NASDAQ

dropped 0.7%. The Russell 2000, though, which tracked small cap stocks, was up 2% last week and closed at record highs. So we continue to see a strong rotation into small caps. The Russell 2000 has gone up nearly 8% this year while the S&P and NASDAQ are up less than 2%. I gotta say though, overall stocks are holding up pretty well given the nonstop headlines to start the year. You know, there was Venezuela, then escalations with Iran. Then last weekend, Jerome Powell shocked everyone when he said the DOJ was investigating the Federal Reserve. Well, we got one more shocking headline this weekend. This time it's about Greenland. President Trump escalated tensions with the European Union by threatening new tariffs

on eight European countries if Greenland isn't sold to the U.S. Trump says the U.S. needs to own Greenland for national security reasons. Now, Greenland is an autonomous territory of Denmark, which is a NATO ally, and Denmark has already said that Greenland is not for sale. European officials are now reportedly discussing counter tariffs to the U.S. if Trump follows through with his threats. So we might be headed for another transatlantic trade war. The markets were caught off guard by all of this. The S&P 500 and NASDAQ futures are down more than 1% in pre-market trading at the time of this recording.

Volatility is also picking up the VIX spike to its highest level since November. Meanwhile, gold and silver are also ripping higher, both hitting fresh record highs as investors look for safe haven assets. So we'll see what happens this week. World leaders are headed to Davos, Switzerland for the World Economic Forum, including President Trump. So I'm sure they're going to be talking about this. Maybe they can come to an agreement and de-escalate the whole situation, but we'll see.

Now, as all of this is happening, we're also in the middle of the middle of the middle of of earnings season. Netflix and United Airlines report later today. And then later this week, we're going to be hearing from Intel. And then next week is going to be the big one. We're going to be hearing from Tesla, Microsoft, Meta, and Apple. So if corporate earnings come in strong, it could shift the focus back to fundamentals instead of geopolitics. So yeah, we'll have a lot to cover over the next few weeks. So if you're new here, it's a great time to get subscribe to the podcast and tune in every day to stay in the loop. Let's run through some headlines. starting with Tesla.

Tesla is shaping up to be an early winner from a surprising new EV truce between China and Canada. Canada's Prime Minister Mark Carney announced the country is scrapping its 100% tariff on Chinese-made EVs and reopening the door to imports. Moving forward, Canada will apply a much lower 6.1% tariff on Chinese EVs in exchange for China easing restrictions on Canadian canola exports. Under this deal, Canada will allow up to 49,000,000,000. Chinese-built EVs per year, and within five years, that quota could rise to 70,000 cars. Now, the reason that Tesla has an advantage here is because they already build a Canada-specific

version of its Model Y at its plant in Shanghai. In fact, in 2023, the year before the 100% tariff imposed by Canada, Tesla brought in more than 44,000 EVs to Canada from China. Tesla also has 39 stores in Canada, while Chinese competitors, including B.D and Neo, have no sales presence in Canada right now. Tesla has an advantage, but this advantage won't last forever. For one, Canada is fast-tracking the certification for Chinese EVs, but the bigger issue for Tesla is the price clause. Half of the import quota is reserved for vehicles priced under $25,000,

and every Tesla currently sold in Canada is priced above that level. Meanwhile, some Chinese EVs from BYD and Neo fall well below the $25,000 mark. So Tesla could see a short-term sales bump in Canada because of this new tariff. Overall, though, Tesla could see a short-term sales bump. sales bump in Canada. I think the bigger story here, though, is that Canada, which has historically been one of the U.S.'s closest allies, is moving closer to China. This is one of the outcomes that some economists had warned could happen because of President Trump's aggressive and sometimes erratic trade policies to Canada last year. So we'll see what happens moving forward and if other

U.S. allies increase their economic ties to China. Now, White House officials work quick to respond to this. They warned that Canada will regret allowing Chinese EVs into their market and they made it clear that these cars would not be allowed in the U.S. Let's shift gears and talk about Netflix. Netflix has officially sweetened its bid for Warner Brothers. According to an SEC filing this morning, Netflix amended its previous deal to be all cash at $27.75 per share for Warner's studio and streaming business, which includes HBO Max.

The previous offer was a mix of cash and Netflix stock, but now if the Warner shareholders approve this deal, they'll receive straight cash from Netflix. Warner shareholders will vote on this deal in April. I guess Netflix felt the pressure from Paramount and their hostile bid of $30 a share all cash for the entire company and Netflix decided to improve their offer to remove any objections and speed up the sale.

The Warner Board has rejected Paramount's offer multiple times. They think that the Netflix offer is better. We'll see what Paramount does next. Maybe they'll offer even more money for Warner's to convince shareholders to go with their offer. But low-key, I'm kind of getting sick of this story, you know? I just want one of them to win, close the deal, combine it with their existing streaming service, so I have one less streaming service I have to pay for.

I know that's wishful thinking. This story is probably going to drag on for another year as it faces regulatory hurdles to get approved. Let's talk about some stocks making moves today. Shares of Rapp Therapeutics are absolutely ripping higher this morning after the pharma giant GSX agreed to buy the company for $58 per share in cash, valuing the deal at $2.2 billion. Now, Rapp makes a key drug called Ozu Rep Rubart.

which targets the immune response behind allergic reactions. So GSX, which is a $100 billion company, will add this drug to their portfolio, which already includes asthma treatments, shingle vaccines, and HIV therapies. As a result, RAP shares are up more than 60% on this news, and I feel like that's pretty typical in any pharmaceutical buyout. By the way, pharma M&As, man, they are heating up right now. Now, on the flip side, shares of 3M are sliding this morning, despite the company reporting solid earnings.

3M beat expectations on both profits. and revenues in Q4 and management forecasts 3 to 4% revenue growth in 2026, which was pretty much in line with what analysts were expecting. Now, a 3% growth might not sound exciting, but this is a company that's been publicly traded since the early 80s. This isn't a hypergrowth tech stock. It's a mature industrial company and they make products like industrial adhesives and things like posted notes and scotch tape. At this stage, the pitch for 3M is an explosive growth. It's stability, cash flow, and dividends. In fact, 3M is a staple holding in dividend, each other. T.Fs and income portfolios. But the stock is down more than 4% today, and I don't think it's

because of earnings. It's just there's a broader market sell-off right now happening due to the Greenland headlines and tariff threats by Trump and the EU. So kind of a bad morning to report earnings, I got to say. Let's wrap the show with a fun fact. The New York Stock Exchange is developing a platform for trading tokenized securities. A parent company of the New York Stock Exchange called Intercontinental Exchange said they are working on a new system that would let people trade digital versions of stocks and ETFs 24 hours a day, seven days a week. And these tokenized stocks would settle instantly on a private blockchain. So traders won't have to wait for days for trades to settle and it would happen instantly, which is something that happens in crypto.

Clearly, the New York Stock Exchange has been inspired by how crypto works. Crypto trades 24-7. It settles almost instantly. So it makes sense to bring this blockchain tech and tokenization to the stock market. Now, this platform still needs approval from the SEC, but I think it'll happen. I mean, I do like the fact that we have a market open and closed time right now, but you got to admit it, it's pretty archaic in today's world. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did, and you have like five extra seconds, consider giving us a five-star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. And if you are listening on Spotify, don't forget to vote in today's Spotify poll.

Leave us a comment on Spotify. All that engagement really does help us out. and it helps other people find the show. I mean, we're already off to a wild start this week, and we haven't even talked about earnings yet, so it's gearing up to be a very interesting week. By the way, if you guys want some bonus content, go check out our deep dive that we did over the weekend

about the Federal Reserve. And also check out our interview that we did with Bloomberg reporter Ashley Carman. We talked about Spotify, the future of podcasting, YouTube, and Netflix. It was a great conversation, so highly recommend checking that out. Thank you guys so much for listening, watching, and commenting. Shout out to Mike and comments.

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