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…

Cobalt price continues its downward trend, affected by difficulties in the aeronautical sector

Cobalt prices have been plummeting for several months due to the drop in sales of electric vehicles. This downward trend should continue due to the slowdown in demand from the aeronautical sector, where the metal is used for turbine blades in reactors.
Cobalt price continues its downward trend, affected by difficulties in the aeronautical sector

The price of cobalt has been on a downward trend for several months, and this has increased with the Covid-19 pandemic. The metal has fallen 15% since February to around $ 30,000 a tonne as concerns arise about falling demand for jet turbine blades.

While the Covid-19 pandemic has grounded planes, airlines are posting losses, and some like Qatar Airways and Singapore Airlines are considering postponing purchases of new planes. Aerospace demand will stand at 4,442 t this year, down 18% from 2019, said George Heppel, an analyst at CRU Group quoted by Reuters.

This is in addition to the drop in demand already registered in the electric vehicle sector, bringing the total cobalt surplus to 6,300 t this year, according to the expert. While car sales should soon start to rise again, this should not be enough to rebalance the market.

With such prospects, it is the DRC, the world's largest producer, which has new reasons to worry at a time when its economy is already hard hit by the health crisis. The time when the metal was trading at $ 90,000 per tonne now seems far enough away.