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Bans in Europe are a warning to the United States



What happens: Paris has imposed an overnight curfew. In London, people from different households are prohibited from meeting indoors. The measures are an attempt to contain the rapid surge in Covid-19 cases across the continent as hospital capacity becomes an issue again.

Stocks in London, Paris, Milan and Frankfurt sold heavily on Thursday before recovering on Friday. Markets aren’t fueling up like they did in March, but rapid climate change is still a cautionary story.

Bank of America economists in Europe put it simply in a note to customers on Friday: “Yes, it’s bad.”

“Localized and surgical restrictions could become more bothersome as they increase,”

; they said. “The already large precautionary savings could increase further due to the uncertainty caused by the virus. Voluntary social distancing can slightly increase the economic impact of the virus recurrence.”

The extent of the economic impact of the new measures is difficult to assess, especially given the patchwork response in countries like the UK, where cities like Liverpool are even stricter than London.

“Tracking the scope and scope of the restrictions will be [of] Of utmost importance for the future, “said Deutsche Bank economist Sanjay Raja. He is sticking to his forecast of 2% growth in the UK between October and December, but said the economy could stall completely, if further restrictions are imposed.

Allianz now expects major European economies to shrink again in the final quarter of the year, with the Spanish economy shrinking 1.3% quarter-on-quarter and the French economy down 1.1%.

Big picture: There is little reason to believe that the challenge facing leaders in Europe – act decisively and try to stave off a deepening health crisis or take moderate steps to protect fragile economic gains – is pure is local phenomenon.

See here: New York City is grappling with a Covid-19 resurgence in some Brooklyn and Queens boroughs by shutting down non-essential businesses and schools in certain areas to avoid wider closings for now.
In the United States, the weekly average of new daily cases has risen to over 53,000, according to Johns Hopkins University, an increase of more than 55% in just over a month.
The back-to-normal index from CNN Business and Moody’s Analytics shows that the US recovery has effectively plateaued since mid-September. However, Europe shows how quickly the situation can be reversed.
Investor awareness: European stocks have seen increased demand from investors in recent months. Money managers pointed to Europe’s relative control of the virus after the spring, and praised an agreement between EU leaders to raise € 800 billion ($ 938 billion) for recovery efforts. Without the first part of this equation, however, the region could struggle.

Netflix is ​​having a killer year. Can it go on like this?

It won’t surprise anyone who settled down at home that Netflix is ​​having a knockout year.

While money runs out quickly in cinemas, Netflix is ​​doing well. The streaming service added 26 million subscribers in the first half as the cultural talk focused on shows like “Tiger King”. In the last quarter, Netflix more than doubled its profit compared to the same period last year.

Watch the stock: stocks are up 64% in 2020 while the S&P 500 is up closer to 8%.

Investors will check on Tuesday whether Netflix can maintain momentum in releasing results for the July-September quarter. The company announced in July that it is expected to gain approximately 2.5 million subscribers during that period.

Bank of America analysts believe subscriber numbers could be weaker this quarter due to increased competition from players like NBC’s Disney + and Peacock, the return of live sports, and a projected increase in subscribers who are canceling subscriptions.

Even so, it raised its target for the stock to $ 670, up 26% from Friday’s closing price, as it believes in the company’s long-term strategy.

Next

Monday: China’s GDP and industrial production in September, retail sales and unemployment; Halliburton ((Hal) and IBM ((IBM) Merits
Tuesday: US housing construction and building permits begin; Lockheed Martin ((LMT), Philip morris ((PM), UBS ((UBS), Netflix ((NFLX), Snap ((SNAP) and Texas Instruments ((TXN) Merits
Wednesday: UK inflation; Verizon ((VZ), Chipotle ((CMG), Tesla ((TSLA) and Whirlpool ((WHR) Merits
Thursday: consumer confidence in Germany and Great Britain; Japan inflation; American Airlines ((EEL), AT & T. ((T.), Coke ((KO), Kimberly-Clark ((KMB), Intel ((INTC) and Mattel ((MAT) Merits
Friday: PMI data; American Express ((AXP) and Honeywell ((HON) Merits

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