The Day at a Glance | November 23 2020

The Top

· Europe records economic contraction in November.

· Trump`s administration prepares actions to restrict tech exports to 89 Chinese firms.

· Economic indicators: United States PMI (manufacturing 53 e.; services 55 e.).

Economic environment

The implementation of new mitigation measures in Europe affected economic activity in November. The European block`s Composite PMI pointed to contraction in the economy as it set at 45.1 during November (vs 50 Oct.), according to figures. The contraction was led by the services sector (41.3 vs 46.9 prev., 42.4 e.), which reached its lowest level in the last 6 months after non-essential considered businesses closed down in efforts to control the virus`s spread in the region. Manufacturing remained in expansion, even though at a slower rate (53.6 vs 54.8 Oct.). The figures suggest it`s highly likely that the European economy will record a contraction in the 4Q20 (-1.7% e.) because of the virus`s second wave, especially if mitigation measures are extended beyond November. Germany successfully remained in expansion because of its manufacturing sector`s extraordinary strength, although the rest of the region logged contractions. European governments have sought to maintain fiscal stimulus in light of the risks that jobs face; simultaneously, they await decisive actions on behalf of the ECB in December in order to back the economy.