European blockade is a warning to the US

How new coronavirus restrictions in Paris and London will work

What’s Happening: Paris imposed an overnight curfew. In London, it is forbidden for people from other families to meet indoors. This move is an attempt to stop the rapid increase in Covid-19 cases across the continent as hospital capacity becomes a problem again.

Stocks in London, Paris, Milan and Frankfurt surged on Thursday and then rebounded on Friday. The market isn’t plunging like March, but the rapid climate change is still a cautious story.

European economists at Bank of America briefly made a note to their clients on Friday, saying, “Yes, that’s bad.”

“If localization and surgical restrictions continue to increase, it could be a bigger hindrance,” they said. “Already large preventive savings can be further increased due to virus-related uncertainties, and voluntary social distancing can easily amplify the economic impact of viral recurrence.”

It is difficult to ascertain the magnitude of the economic impact of the new measures, especially when considering the patchwork response of countries such as the UK, where cities like Liverpool face stricter rules than London.

“Tracking the size and extent of the limit [of] Deutsche Bank economist Sanjay Raja is sticking to his predictions for the UK’s 2% growth between October and December, but said the economy could stagnate completely if more restrictions were imposed.

Allianz now expects major European economies to contract again in the last quarter of this year, with Spain’s economy down 1.3% from the previous quarter and France’s by 1.1%.

The big picture: There is little reason to think that the challenges faced by European leaders (acting decisively and trying to stop a worsening health crisis or taking appropriate steps to protect fragile economic interests) are purely local phenomena.

See here: New York City is wrestling with the Covid-19 revival in parts of Brooklyn and Queens. Non-essential business and school closures Attempts to avoid wider closures now in certain areas.
In the United States, the weekly average of new daily cases has shifted. 53,000 or more, According to Johns Hopkins University data, it increased by more than 55% in a month.
that much Index back to normal CNN Business and Moody’s Analytics show that the US recovery has effectively stagnated since mid-September. But Europe shows how quickly things can turn around.
Investor insight: European stocks enjoyed Increasing demand From investors in recent months. Money managers pointed out that Europe has relatively controlled the virus since the spring, while EU leaders have agreed to raise €800 billion ($930 billion) for recovery efforts. But without the first part of that equation, the region can suffer.

Netflix is ​​having a killer year. Can you keep it?

It’s no surprise to anyone crouching at home that Netflix is ​​having a knockout year.

The cinema is fast Lack of cash, Netflix is ​​thriving. The streaming service added 26 million subscribers in the first half of the year as cultural dialogues progressed around programs such as’Tiger King’. Last quarter, Netflix more than twice Its profit over the same period a year ago.

Stock View: Stocks soared 64% in 2020, and the S&P 500 is nearing 8%.

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Investors will check on Tuesday to see if Netflix can sustain momentum when reporting quarterly earnings from July to September. The company said in July it expected to acquire about 2.5 million subscribers during this period.

Bank of America analysts believe the number of subscribers may weaken this quarter as competition increases with players like Disney+ and NBC’s Peacock, a return of live sports and an increase in unsubscribers is expected.

Nevertheless, faith in the company’s long-term strategy raised the stock price target to $670, up 26% from the closing price on Friday.


Monday: China GDP and September industrial production, retail sales and unemployment; Halliburton (thing) and IBM (IBM) income
Tuesday: US housing start and construction permit; Lockheed martin (LMT), Philip morris (afternoon), UBS (UBS), Netflix (NFLX), snap (snap) and Texas Instruments (TXN) income
Wednesday: UK inflation; Verizon (VZ), Chipotle (CMG), Tesla (TSLA) and Swirl (WHR) income
Thursday: German and UK Consumer Confidence Index; Japanese inflation; American Airlines (AAL), AT&T (tea), Cola (EN), Kimberly-Clark (KMB), Intel (INTC) and Mattel (mat) income
Friday: PMI data; American Express (AXP) and Honeywell (Woman) income

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About the Author: Max Grant

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