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…

Oil surges amid fears over coronavirus and China

Despite a widespread coronavirus pandemic, mixed inventory figures and tensions between China and the United States, the price of oil has risen sharply this week.
 
Oil surges amid fears over coronavirus and China

Oil prices are gaining ground, with a barrel of Brent advancing nearly 4% since Monday. The two benchmark prices have been moving for several sessions at levels more seen since early March, just before the fall triggered by a short but intense price war between Russia and Saudi Arabia, and the worsening of the Covid pandemic. 19 in Europe. They appreciate Thursday despite "the context of growing tensions between the United States and China and persistent concerns about Covid-19," said Eugen Weinberg, analyst at Commerzbank.

Sino-US tensions reached a new level on Wednesday, when Washington ordered Beijing to close its consulate in Houston. The Chinese authorities immediately threatened "retaliation". But "geopolitical concerns are put aside," said Jeffrey Halley of Oanda. "The energy markets feel that a new trade war between the United States and China, derailing the global (economic) recovery, is unlikely," he added.




"Even the US Energy Information Agency's inventory status report released on Wednesday" was unable to influence prices, "Weinberg added.

According to him, US crude reserves rose 4.5 million barrels (MB) last week to stand at 536.6 MB, where analysts had expected a decline of 2.2 MB.

Gasoline stocks, on the other hand, fell by 1.8 MB, a figure close to market expectations and a little more reassuring for investors on the state of dynamism of demand.