Europe Locks Down as Coronavirus Infections Soar

Strategic Insights -

Emmanuel Macron, the French president, announced a national lockdown in France, while Angela Merkel, the German chancellor, imposed tough restrictions on social contact and closed parts of the economy. The measures come as soaring coronavirus infection rates stoked alarm across Europe, sending stocks plummeting to their lowest level since May. Macron's lockdown, which begins at midnight tonight and lasts until the beginning of December, includes travel restrictions, the closure of borders to non-EU travellers, and the shutting of bars and restaurants. Schools, businesses, and healthcare services will remain open.

Key Takeaways:

  • The French lockdown will begin at midnight tonight and last until the beginning of December, including travel restrictions, border closures, and the shutting of bars and restaurants, with schools, businesses, and healthcare services remaining open.
  • Angela Merkel, the German chancellor, has imposed tough restrictions on social contact and closed parts of the economy, with regulations beginning on Monday and lasting until the end of November.
  • The new measures follow a surge in coronavirus infections across Europe, with 523 Covid-19 deaths reported in France and 11,409 cases in Germany.
  • London's FTSE 100 index closed down 2.8 per cent, while the stoxx 600 index fell 3 per cent, and Wall Street's benchmark S&P 500 index closed down 3.5 per cent.
  • Peter Piot, director of the London School of Hygiene & Tropical Medicine, warned that the numbers of infections in the EU were "really staggering" and that the resurgence of the virus showed how fragile the gains were.
  • The European Commission president, Ursula von der Leyen, has a special adviser in Peter Piot.
  • Michael Peel in Brussels and Erika Solomon in Berlin provided additional reporting on the crisis.
  • French President Emmanuel Macron stated that the "second wave" of the virus will "probaby be harder and more murderous than the first" and that the virus has accelerated its circulation.

Statistics:

  • 523 Covid-19 deaths were reported in France in the previous 24 hours, the highest total since April 22.
  • 11,409 new cases of Covid-19 were reported in Germany.
  • The stoxx 600 index fell 3 per cent, with the region-wide index losing more than 5 per cent since the end of last week.
  • The FTSE 100 closed down 2.8 per cent and the S&P 500 index closed down 3.5 per cent.

Sources:

  • "France announces nationwide lockdown amid coronavirus surge", Financial Times
  • "Europe stocks stumble as virus fears resurface", Financial Times
  • "Europe tightens curbs as virus cases rise sharply", Financial Times
  • "Germany to impose strict new rules to curb virus spread", Financial Times
  • "France reports record 523 Covid-19 deaths in 24 hours", The Guardian
  • "Germany reports 11,409 new Covid-19 cases", Deutsche Welle