What’s going on: Paris imposed a curfew for one night. In London, people from different households are forbidden to meet indoors. The measures are an attempt to halt the rapid rise in Covid-19 cases across the continent as hospital capacity becomes a problem again.
Shares in London, Paris, Milan and Frankfurt sold out sharply on Thursday before recovering on Friday. Markets are not sinking as they were in March, but rapid climate change is still a cautious story.
Bank of America economists in Europe put it simply in a note to customers on Friday: “Yes, it’s bad.”
“Localized and surgical constraints can become more destructive if they continue to increase,”
The magnitude of the economic impact of the new measures is difficult to determine, especially given the volatile response in countries such as the United Kingdom, where cities such as Liverpool face even stricter rules than London.
“Tracking the scale and scope of the restrictions will be [of] “Sanjay Raja, an economist at Deutsche Bank, said he adhered to his forecast for 2% growth in the UK between October and December, but said that if more restrictions were imposed, the economy could come to a complete halt.
Allianz now expects key European economies to shrink again in the last quarter of the year, with Spain’s economy shrinking by 1.3% compared to the previous quarter and France’s by 1.1%.
Big picture: There is little reason to believe that the challenge facing European leaders – act decisively and try to prevent a deteriorating health crisis or take moderate steps that can protect fragile economic gains – is a purely local phenomenon.
Netflix is going through a deadly year. Can it continue?
It will come as no surprise to anyone who has struggled at home that Netflix has a year of knockouts.
Watch out for stocks: Shares jumped 64% in 2020, while the S&P 500 rose close to 8%.
Investors will tune in on Tuesday to see if Netflix can maintain momentum when reporting results for the July-September quarter. In July, the company said it was expected to attract about 2.5 million subscribers during that period.
Bank of America analysts believe the number of subscribers may be weaker this quarter, given increased competition from players like NBC’s Disney + and Peacock, the return of live sports and the projected increase in people, who cancel subscriptions.
However, it raised its share target to $ 670, up 26% from Friday’s closing price due to belief in the company’s long-term strategy.