What is happening: Paris has imposed an overnight curfew. In London, people from different households are forbidden to meet indoors. The measures are an attempt to prevent the rapid rise of Covid-19 cases across the continent as hospital capacity has once again become a concern.
Stocks in London, Paris, Milan and Frankfurt traded sharply on the Thursday before the rebound on Friday. Markets are not tanks like they did in March, but rapid climate change is still telling a cautious story.
Bank of America economists in Europe just put it on a note to clients on Friday: “Yes, it’s bad.”
“Localized and surgical restrictions can be more disruptive if they continue to rise,” they said. “Precautionary measures, which are already large, can be further fueled by the uncertainty of the virus. And voluntary withdrawal from society could easily boost the economic impact of the virus̵7;s resurgence.”
The magnitude of the economic impact of fresh measures is difficult to determine, especially given the patchy response in countries like the United Kingdom, where cities like Liverpool are faced with stricter rules than in London.
“Tracking the size and scope of the restrictions is [of] It is very important going forward, “said Deutsche Bank economist Sanjay Raja. He is following his prediction for 2% growth in the United Kingdom between October and December, but said that if other restrictions are imposed , the economy may have completely stopped.
Allianz now expects major European economies to contract again in the last quarter of the year, with the Spanish economy down 1.3% compared to the previous quarter and the French economy down 1.1%.
Big picture: There is little reason to think that the challenge facing European leaders is to act decisively and try to prevent a worsening health crisis, or take moderate measures that could protect fragile economic achievements – is purely a local phenomenon.
Netflix is having a killer person. Can it keep it?
It wouldn’t be a surprise to anyone hunkering at home that Netflix is having a year of knockout.
Watch the stock: Shares rose 64% by 2020, while the S&P 500 gained close to 8%.
Investors will tune in Tuesday to see if Netflix can maintain momentum when reporting results for the July through September quarter. The company said in July it expected to bring about 2.5 million subscribers by that time.
Bank of America analysts expect subscriber numbers to weaken this quarter due to increased competition from players like NBC’s Disney + and Peacock, the return of live sports and a predicted increase to people canceling subscriptions.
Although it raised the target for the stock to $ 670, a 26% increase in Friday’s price close, due to belief in the company’s long-term strategy.