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…

Copper rebounds, boosted by Chinese demand and the development of covid-19 in Latin America

Copper prices rose 21% in the second quarter of 2020, buoyed by improved demand from China. The trend should continue with the risks of a fall in production in South America, notably opening the way to other producers such as the DRC and Zambia.
 
Copper rebounds, boosted by Chinese demand and the development of covid-19 in Latin America

Copper seems to be recovering from the current health crisis. Red metal jumped 21% in the second quarter of the year, even exceeding $ 6,000 a tonne last week, the first since the start of the Covid-19 pandemic.

This resumption of form can be explained by the positive signals sent by the Chinese economy as well as by concerns linked to world supply. In fact, the demand for copper from the Middle Kingdom, the world's largest consumer, has increased at a time when the main producing countries (Chile, Peru,) are facing an increase in Covid-19 patients. .

This situation could lead in the coming days to more severe restrictive measures, causing interruptions in the supply chain both in terms of production and transportation of the ore. According to Susan Bates, a Morgan Stanley analyst quoted by Bloomberg, the pandemic is expected to remove up to 560,000 tonnes of copper from global production.




However, it should be noted that this deficit could benefit the DRC and Zambia, the two largest African producers. While mining production has so far not been seriously disrupted in these two countries, they are expected to gain new markets while increasing their incomes through rising prices.