What’s happening: Paris has imposed a night curfew. In London, people from different families are forbidden to meet at home. The measures are an attempt to stem the rapid increase in Covid-19 cases across the continent, as hospital capacity again becomes a concern.
Shares in London, Paris, Milan and Frankfurt were sold sharply on Thursday before rebounding on Friday. Markets aren’t running out like they did in March, but rapid climate change still comes with a caution.
On Friday, economists at Bank of America in Europe simply said it in a note to clients: “Yes, that’s bad.”
“Localized and surgical restrictions could become more disruptive if they continue to increase,”
The size of the economic impact of the new measures is difficult to ascertain, especially given the patchwork response in countries like the UK, where cities like Liverpool face even stricter rules than London.
“It will be monitoring the extent and extent of the restrictions [of] utmost importance for the future, “said Deutsche Bank economist Sanjay Raja. He sticks to his forecast for 2% growth in the UK between October and December, but said that if further restrictions are imposed, the economy will it may freeze completely.
Allianz now expects major European economies to contract again in the final quarter of the year, with the Spanish economy contracting 1.3% from the previous quarter and the French economy down 1.1%.
Big picture: There is little reason to think that the challenge facing leaders in Europe – to act decisively and try to avoid a worsening of the health crisis, or take moderate measures that could protect fragile economic gains – is purely a local phenomenon .
Netflix is having a scary year. Can it continue like this?
It will come as no surprise to anyone who has crouched at home that Netflix is experiencing a knockout year.
Look at the stock: Stocks skyrocketed 64% in 2020, while the S&P 500 gained nearly 8%.
Investors will tune in on Tuesday to see if Netflix can maintain momentum when it reports results for the quarter from July to September. The company said in July that it plans to bring in about 2.5 million subscribers during that period.
Bank of America analysts think subscriber numbers may be weaker this quarter, given increased competition from players like Disney + and NBC’s Peacock, the return of live sports, and an expected increase in people canceling subscriptions.
Even so, he raised his target for the stock to $ 670, a 26% increase from Friday’s closing price, due to faith in the company’s long-term strategy.