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…

CAC 40: Paris without trend, session without Wall Street

As expected, the Paris Stock Exchange is evolving without any real trend this Friday, opening a session which promises to be particularly calm after the numerous American statistics of the previous day, some of which had been put forward due to the closure of Wall Street today. today due to national holiday.

Paris without trend, session without Wall Street

Thus, shortly after 11 am, the CAC 40 fell by -0.2%. It is displayed at 5.040 points.

‘Graphically, a second phase opens with the aim of returning to the ultimate short-term point at 5,250 points. To hope to materialize this positive streak in the long term, the CAC 40 index will have to quickly confirm this rebound in the pivotal level of 5,040 points, ’commented the Kiplink teams this morning.

As for the statistics of the day, at 51.7 in June, the composite index of overall activity calculated by IHS Markit, highlights a moderate increase in activity in the French private sector, the first after four months of economic contraction that started in March.

The rebound in overall activity mainly reflected a marked increase in production in the manufacturing sector, while in the services sector, activity increased only slightly from May.

The PMI composite index for overall activity in the euro area was 48.5 for the past month, after 31.9 in May. It is therefore higher than its Flash estimate (47.5). It thus shows a clear recovery, and reached its highest level in 4 months in June. The composite PMI for overall activity, however, continues to signal unfavorable economic conditions in the single currency area.

In addition, the final index of service activity in the euro zone was 48.3 (30.5 in May, flash estimate at 47.3). If it remains below the 50 mark, it reaches its highest level since last February.

The PMI composite index of the United Kingdom posted a record rise, from 30 in May to 47.7 in June according to IHS Markit, which had announced at 47.6 in flash estimate ten days ago, confirming a very strong deceleration of the contraction of the British private sector.

In the news of the values, in a brief press release, the electrician EDF indicates to revise upwards its estimate of production of nuclear origin in France for the year 2020, to approximately 315-325 TWh against 300 TWh estimated on April 16 latest. This revision results from an adjustment to the duration of the planned outages in 2020, taking into account the conditions for resuming activities observed on the sites. The production forecast for 2021 and 2022 remains unchanged at this stage.

Vivendi welcomes the completion of Banijay’s acquisition of Endemol Shine Group. ‘This operation creates the world leader in the production and distribution of audiovisual content, with an annual turnover of around 2.7 billion euros (pro-forma 2019),’ said the group.