Coronavirus: United Kingdom, facing worst recession on record, sees GDP drop 20.4% in Q2

The UK has seen its economy, hit by the coronavirus crisis, suffer a "record" contraction of 20.4% in the second quarter, and is officially facing its worst recession on record, agency figures show National Statistics (ONS), published Wednesday 12 August. 
Economists consider that a country enters a technical recession when it accumulates two consecutive quarters of contraction in its economy. According to the ONS, most of the contraction, which began to be felt in March, occurred in April, an entire month of containment and almost total cessation of activity in the country, which saw production collapsed by 20%.

With a very early recovery in construction sites and manufacturing activity, gross domestic product (GDP) rebounded in May by 2.4% (revised figure), followed by an acceleration in June (+8.7 %) thanks in particular to the reopening of all shops. This is the biggest contraction in the UK economy since the ONS began these quarterly statistics in 1955, he said…

Nigerian banks listed on the Lagos stock exchange earned $ 247.3 million after the oil deal, but ...

The values ​​of banks listed on the Nigerian Stock Exchange surged Friday, April 10, 2020, the day after the announcement of an agreement found on oil production under what is called OPEC +. All 10 traditional banks present on this financial market saw their shares increase, with the exception of Fidelity Bank which fell by 1.5%. The market value of these institutions increased by $ 247.3 million this weekend, according to data collected on Capital IQ
Nigerian banks listed on the Lagos stock exchange earned $ 247.3 million after the oil deal

It should be noted that the oil and gas sector had absorbed at the end of the 2019 financial year, nearly 26% of the total outstanding amount of credits granted by the commercial banks of Nigeria, according to information collected from the Nigerian Institute statistics. In addition, although declining sharply, bad debt in the oil and gas sector was 219.4 billion Naira as of December 31, 2019, the highest of all economic sectors.

The announcement of the agreement between Saudi Arabia and Russia, whose disagreements were at the origin of the latest plunge in black gold prices, thus represented more of a reason for positive forecasts for the banking sector. Nigerian, African leader in oil production.

The first is that the risks of default associated with the oil sector would be reduced. The second is that the liquidity pressure on the government, the banks' second largest exposure sector, would be relaxed. The third, finally, is that a new rebound in oil prices, the main source of foreign and government revenues, also raises hopes that the deterioration in foreign exchange reserves will be slowed, and that the currency and prices will be more stable. But these optimistic forecasts are slow to be confirmed on the world oil market.

Globally, investors seem to be dissatisfied with the deal reached for a reduction of 10 million barrels / day. Analysts who follow this daily news believe that to limit the effects of reduced needs due to the Covid-19, it would have required a drop in production of 30 million barrels / day. Under these conditions, the prices of the various categories of oil plunged again this weekend.

However, things will not be uniform for all Nigerian banks, according to a recent analysis by S&P Global Ratings. According to experts from the rating agency, some of these entities will do better than others, even under difficult conditions. "Banks with a good level of capital will be more resilient with an average return of 15% to 16% in 2020, against around 8% for the entire sector," they said.