Europe Steps Up Covid Restrictions, But the Economy Will Pay the Price - Forex News by FX Leaders

Europe Steps Up Covid Restrictions, But the Economy Will Pay the Price

Posted Monday, November 2, 2020 by
Skerdian Meta • 1 min read

The European economy was already weakening during the last coupe of months, following the short-lived rebound in may and June after the lock-downs. But, the coronavirus restrictions are coming back, with full and partial lock-downs, which will deter the economy further. The service sector is already in contraction and it will likely fall deeper into the abyss, although manufacturing is keeping up the pace.

 

UK Minister Sunak Speaking on Covid Restrictions

  • Lockdown is the last thing we wanted to do
  • The virus is spreading faster than the reasonable worst case scenario
  • Unless we acted, deaths would have been worse than in spring
  • Lockdown regulations are time-limited
  • We will seek to exit to tiered approach at the end of the 4-week period
The full details and regulations for the planned lockdown will be published some time before lawmakers will vote on the measure this Wednesday. But Johnson has already outlined that pubs, restaurants and non-essential businesses will be closed. Schools and universities will stay open though.

As confirmed by Italian prime minister, Giuseppe Conte

  • This will divide the country into three areas based on degree of risk
  • There is a high possibility that 15 of 20 regions will exceed critical level of intensive care within a month, so we must intervene
  • To limit urban public transport capacity limit to 50% (from 80% presently)
  • Will limit movement between high risk regions
  • Will set nighttime curfew nationwide
Italy steps up measures to deal with the second wave, with the three-tier system arguably to be something similar as what we saw with the UK previously. However, it proved to be insufficient in the UK at the end of the day so let’s see if Italy can make it work.
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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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