Rising infection rates across Europe are now leading to hospitalizations and the number of deaths in the UK and France is on the rise as the second corona virus wave continues to spread across Europe since May. .
Concerns about a second national lockout in France are also growing French President Emmanuel Macron’s scheduled national speech this evening. In Germany, President Merkel is reportedly proposing to close bars and restaurants for a month, which, as a measure, will last longer when the weather cools.
As stock markets plummeted in February governments in Europe, the US and UK stepped up massive financial support, along with central banks, to support their economies. It was the hope that politicians would support business in these very difficult times that spurred a strong resurgence in the stock markets, which helped to revive the sentiment.
It was not immediately apparent that this financial support would be significant when asked for a second time, so the sharp slides we now see in the stock markets.
First, with only a week to go before a US election, there does not appear to be any political will to provide a new financial package before the end of Q1 next year. As for the EU, they have not even signed their first financial package, which Italy and Spain desperately need.
The picture here in the UK is no less clear The UK government’s response is similar to that of an economic hockey hook, one step at a time, Farlow’s conclusion, the deteriorating economic outlook triggers many U-turns.