In a significant move, California has become the first state to implement a statewide stay-at-home order amidst the ongoing pandemic: CNN
Will the federal government’s proposed $1 trillion stimulus package suffice? Politico
The global effort to find a coronavirus vaccine is intensifying: NY Times
Analysts predict the stock market may hit its lowest point before the pandemic peaks: MW
Some assets considered safe havens are proving less secure in this crisis: Mstar
The survival of small businesses amidst the pandemic is uncertain: NY Times
The Trump administration is reportedly attempting to downplay the rising jobless claims: WSJ
The Federal Reserve is anticipated to rapidly increase its bond purchasing: WSJ
Is the Fed contemplating a strategy known as yield curve control? Reuters
Last week’s jobless claims saw a significant increase as layoffs spread due to the virus: CNBC
The global coronavirus pandemic is wreaking havoc on economies worldwide, and the United States is no different. The traditional methods for modeling economic conditions have rendered inadequate in the face of this crisis, leaving uncertainty as the only constant. The reality is that a major economic shock is unfolding in real time—one that has yet to be fully reflected in available data. The critical questions now revolve around the depth and duration of this impending recession, both of which remain unknown. As we enter this unprecedented era, let’s sift through the numbers for a clearer picture of the U.S. economy prior to this crisis.
The U.S. government is currently working on a comprehensive economic stimulus bill: Bloomberg
A recession driven by the virus is set to unleash an unprecedented shock on the global economy: BBG
The coronavirus pandemic could stretch the limits of the U.S. government’s debt capacity: WSJ
As the virus spreads, layoffs are rising in U.S. businesses: WSJ
China has reported no new local infections–a positive sign: NY Times
A looming credit crisis is emerging as investors offload lower-grade corporate credit: Reuters
The Fed has initiated emergency lending to support money market mutual funds: WSJ
U.S. housing construction declined in February, prior to the disruption caused by the coronavirus: MW
On Wednesday, the U.S. crude oil benchmark fell to just over $20 a barrel:
This year’s turmoil in global financial markets is having significant effects on U.S. fixed-income assets—some negative, some positive. Depending on specific segments of the bond market, results have shown a wide range, from substantial gains to severe losses, based on various exchange-traded funds.
President Trump is advocating for a $1 trillion economic stimulus to support the struggling U.S. economy: Reuters
Treasury Secretary Mnuchin warns that policy missteps could lead to a 20% unemployment rate: CNN
The Fed is reopening its short-term lending facility for major financial institutions: WSJ
Biden secured victories in Tuesday’s primaries, effectively positioning himself as the Democratic nominee: WSJ
The credit markets are experiencing their most severe downturn since the global financial crisis: BBG
The surging U.S. dollar presents new risks for emerging market economies: BBG
Crude oil prices have plummeted to a 17-year low: Reuters
Is Boeing, the largest U.S. manufacturer, at risk of collapse? NY Times
U.S. industrial production showed a rebound in February, just before the fallout from the virus started: MW
Retail spending in the U.S. unexpectedly fell in February, marking the first decline in five months: MW
Current published data suggests that moderate growth is still holding, but the recent past has rarely seemed so irrelevant when forecasting the future economic trajectory. As the effects of the coronavirus pandemic spread, the U.S. economy is decelerating, with many sectors coming to a halt. Thus, a recession appears increasingly likely—a potentially severe one. The hopeful outlook is that the downturn will be brief and a sharp recovery will follow, but consensus among economists suggests that economic output will likely decline.
President Trump has changed his tone, acknowledging that the coronavirus may persist throughout the summer: BBC
The U.S. economy appears to be grinding to a halt as the virus spreads: NY Times
Is the U.S. at risk of entering a depression? Reuters
Morgan Stanley asserts a global recession is now a likely scenario: Bloomberg
In response to the surge in online ordering, Amazon plans to hire 100,000 workers: WSJ
A study indicates reported coronavirus cases underrepresent the actual numbers: NY Times
Germany’s ZEW Economic Sentiment Index has plummeted in March: ZEW
The New York Fed Manufacturing Index has sharply dropped, reflecting contraction in the sector: NY Fed
The U.S. stock market (S&P 500) is nearing a 30% decline following a sharp drop on Monday:
The impact of the coronavirus pandemic reverberated across all major asset classes last week, as evidenced by various exchange-traded funds. Another challenging week looms ahead, given sharp declines in international markets and U.S. futures trading prior to Monday’s market opening in New York.
The Federal Reserve has announced an emergency rate cut to nearly zero: WSJ
Global central banks are implementing immediate policy measures: Reuters
U.S. stock futures experienced a sharp drop on Monday, reaching “limit down”: CNBC
Goldman Sachs predicts a 5% decline in U.S. GDP for Q2: Bloomberg
America is adapting to widespread shutdowns: CNN
Biden and Sanders debated with the coronavirus pandemic serving as the backdrop: CNBC
The U.S. Consumer Sentiment Index fell in March largely “due to… coronavirus” UoM
The yield on the 10-year Treasury note declined sharply on Monday as investors sought safer assets:
● Pharma: Greed, Lies, and the Poisoning of America
By Gerald Posner
Review via The Intercept
As the coronavirus continues to spread disease, death, and chaos across the globe, few economic sectors have remained unscathed. However, one industry is not only weathering the storm but profiting from it significantly.
“Pharmaceutical companies perceive Covid-19 as a once-in-a-generation opportunity,” states Gerald Posner, author of “Pharma: Greed, Lies, and the Poisoning of America.” The global demand for pharmaceutical products is surging, especially for treatments, vaccines, and tests related to the coronavirus outbreak. Numerous companies are competing to develop these solutions.
