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The first wave of Covid-19 lockdowns caused a stronger-than-expected profitability shock for most European non-financial corporates in H1 2020, with French and Spanish firms hit particularly hard despite generous policy support.
Restrictions on non-essential stores in France ahead of a critical holiday season are casting a shadow over nearly EUR18bn of retail sales normally made at year-end. In a particularly adverse yet realistic scenario where the sanitary situation demands store closures to last until the end of December the financial impact is not to be underestimated.