Significant job losses are anticipated in the upcoming payroll report for April: Reuters
Officials from the US and China assert that their trade agreement remains intact: CNBC
The Justice Department has dropped its case against Michael Flynn, who served as Trump’s first national security advisor: AP
The Senate did not succeed in overriding Trump’s veto of a War Powers resolution: CNN
The United Nations warns that the coronavirus pandemic could lead to “famines of biblical proportions”: USA Today
The ‘sharing economy’ has faced significant challenges due to the pandemic: NY Times
Job cuts in April reached the highest levels on record: CG&C
US jobless claims continue to climb into the millions: MW
In the US, interest rates adjusted for inflation have dipped into negative territory before, but the current decline is distinct from previous decades: this plunge coincides with a global economic downturn that may last longer than anticipated.
Trade representatives from China and the US are expected to communicate as early as next week: BBG
A prominent business cycle analyst predicts the US recession could end by December: MW
The surge in US unemployment claims may peak this month: WSJ
The Bank of England warns the UK economy could contract by 30% in the first half of 2020: FT
Industrial output in Germany and France has plummeted in March: BBG
China’s services PMI indicates a “steep decline” in the sector for Q2: IHS Markit
Many small businesses face challenges when converting loans into grants: NYT
US companies lost over 20 million jobs in April: ADP
PMI survey data reveals a global economic decline of 4% in April: IHS Markit
The sentiment in the US stock market continues to appear optimistic. Despite bleak economic statistics, which are likely to worsen, investors remain hopeful for a swift recovery in the near future.
Trump intends to disband the coronavirus task force: Reuters
The repercussions of the coronavirus recession are widespread across corporate America: CNN
Justice Ruth Bader Ginsburg was hospitalized on Tuesday: WSJ
Today’s ADP Employment Report for April anticipates: 20 million jobs lost in the US
Eurozone has plunged into a grave recession in April, as indicated by PMI data: IHS Markit
The US trade deficit rose sharply in March, marking its largest increase in over a year: Reuters
The US services sector plunged sharply into recession in April: ISM
Sentiment within the agricultural sector declined significantly in April: Purdue
PMI survey data suggests an intense deepening of the US recession in Q2: IHS Markit
This year, the choice of specific equity factors has proven significant, as the results of 2020 so far illustrate. Depending on your strategy, the year has yielded modest losses or steep declines based on particular exchange-traded funds.
A global survey indicates that a majority of people prioritize saving lives over restarting economies: Reuters
Is the US adequately prepared for a potential second wave of coronavirus? Project Syndicate
Dr. Fauci has dismissed the theory that the Wuhan lab is the source of the coronavirus: Newsweek
Models suggest a dramatic rise in deaths if states ease social distancing measures: Politico
Why are home prices in the US rising during a pandemic? A decrease in supply: WSJ
Is Sweden’s approach to managing COVID-19 applicable to the US? Not necessarily: NY Times
The US Treasury plans to borrow a record $3 trillion in the upcoming quarter: CNBC
US factory orders experienced a sharp decline in March: MW
Major hedge funds are increasing their investments in gold, now close to an 8-year high: FT
Global manufacturing in April hit its lowest level since the 2008-09 crisis: IHS Markit
The velocity of US money fell to a record low in Q1, highlighting the risk of disinflation or deflation:
The long-term risk premium for the Global Market Index (GMI) saw a rebound in April, recovering from below 4% annualized in the previous month. The current revised estimate for the GMI stands at 4.3%, which reflects its long-term projection over the “risk-free” rate. Compared to last year’s outlook, this forecast is marginally lower.
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Secretary of State Pompeo ties Covid-19 to a Chinese laboratory, although US intelligence agencies remain inconclusive: NY Times
China refutes US claims that Covid-19 originated in a Wuhan lab: CNN
Gunfire exchanged across the DMZ between North and South Korea: CNN
The pandemic claims its first victim among major US retailers: J. Crew: Reuters
A record unemployment rate is anticipated in Friday’s jobs report: WSJ
Revised data indicates Eurozone manufacturing fell at an unprecedented pace in April: IHS Markit
The Atlanta Fed’s GDPNow model forecasts a 16.6% contraction in Q2: AF
The US ISM manufacturing index has fallen deeper into recession territory in April: CNBC
Sales of light vehicles in the US sharply decreased in April: Haver Analytics
Joshua Gans
Summary via publisher (MIT Press)
The COVID-19 pandemic has unleashed a torrent of information (with much of it misleading) and a deluge of opinions (many ill-conceived). Amid daily challenges, we often overlook the broader economic issues at play. In this book, economist Joshua Gans steps back to provide a clear, systematic analysis of how economic decisions are being shaped in response to COVID-19. He argues that containing the virus and temporarily halting economic activity—while preserving businesses and jobs—are essential initial steps. Gans outlines the phases of the pandemic economy, from containment to resetting, recovery, and advancement. He cautions against viewing the situation as a “tradeoff” between public health and economic well-being, emphasizing that effective containment enables the development of testing that allows safe interaction. Once the virus is under control, the focus will shift to innovation and long-term planning to guard against future pandemics. The author discusses policy strategies that may aid in economic recovery, differentiating between economic losses during a pandemic and those occurring in a recession.
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