What’s happening: Paris has imposed a curfew for the night. In London, people from different households are not allowed to meet indoors. These measures are an attempt to stop the rapid growth of Covid-19 cases across the continent, as hospital capacity is once again becoming a problem.
Shares in London, Paris, Milan and Frankfurt sold out sharply on Thursday before recovering on Friday. Markets do not tank as they did in March, but rapid climate change is still a cautious story.
Bank of America economists in Europe simply wrote in a note to customers on Friday: “Yes, it’s bad.”
“Localized and surgical constraints can become more destructive if they continue to grow,”; they said. “The already significant precautionary savings can be exacerbated by the uncertainty associated with the virus. And voluntary social distancing can easily exacerbate the economic impact of virus revival.”
The magnitude of the economic impact of the new measures is difficult to determine, especially given the response mechanism in countries such as the United Kingdom, where cities such as Liverpool have even stricter rules than London.
“Tracking the scale and scope of the restrictions will be [of] It is crucial to move forward, “said Sanjay Raja, an economist at Deutsche Bank. .
Allianz now expects key European economies to shrink again in the last quarter of the year, with the Spanish economy shrinking by 1.3% from the previous quarter and the French economy shrinking by 1.1%.
Overall picture: There is little reason to believe that the challenge facing European leaders is to act decisively and try to prevent a worsening health crisis or to take moderate measures that can protect fragile economic benefits – this is a purely local phenomenon.
Netflix is going through a deadly year. Can it continue?
It should come as no surprise to those who played at home that Netflix has a year of knockouts.
Watch the stock: Shares rose 64% in 2020, while the S&P 500 rose closer to 8%.
Investors will tune in on Tuesday to see if Netflix can keep up when it reports its July-September results. In July, the company said it planned to attract about 2.5 million subscribers during this period.
Bank of America analysts believe that the number of subscribers this quarter may be weaker, given the increased competition from players such as Disney + and Peacock NBC, the return of active sports and the projected increase in the number of people who cancel subscriptions.
Despite this, it raised its stock target to $ 670, up 26% from Friday’s closing price, thanks to its belief in the company’s long-term strategy.