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,”
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.
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.
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.