The Week Ahead: Earnings from Netflix and Airline Stocks, Trump Inauguration Day, and Canada's CPI

In the US, a wave of executive orders is anticipated with the incoming administration, potentially commencing on Day 1. As Donald Trump prepares for his second inauguration on Monday, discussions around tariffs are intensifying, with possibilities ranging from an authorization to impose tariffs by declaring an "economic emergency," to a comprehensive list of applicable duties. Additional measures expected to be addressed include deportations, border policies, birthright citizenship, oil drilling, tailpipe emissions standards, civil service job protection, and the future of a popular video app among teenagers. These developments are likely to provide ample material for market analysis in a week that is otherwise light on major economic releases.

In Canada, the consensus on the Consumer Price Index (CPI) is clouded by varying forecasts regarding the impact of the GST holiday - whether it will appear in the December reading or be deferred to January. However, the central bank is expected to overlook this fluctuation, along with the anticipated rebound in February and March, as the underlying core trend is likely to remain stable. Retail sales may also be influenced by the GST measure, with some consumer activity potentially shifting from November to December. The primary focus for Canadian financial markets, however, will be the potential imposition of US tariffs and the Canadian federal government's retaliatory measures if such levies are enacted by Trump in his first week. Additionally, the Business Outlook Survey on Monday will be examined for insights into respondents' perspectives on the severity of the tariff threat.