Last point: there are now more than 330,000 cases in the United States, and the number of deaths recorded on Saturday was the largest number of deaths in the United States in a single day to date.
The economic picture is expected to be just as bleak as job losses continue to increase.
More layoffs: About 10 million Americans filed for unemployment between March 15 and March 28. And unemployment is showing no signs of slowing down. Goldman Sachs predicts that another 5.25 million Americans filed for unemployment last week.
Morgan Stanley lowered its forecasts for the US economy on Friday. The investment bank now believes that the country’s economy will contract at an annualized rate of 38% between April and June, and that the recovery “will be longer than expected”. He predicts that the unemployment rate will reach a record 15.7% this quarter.
The sale of risky assets like corporate credit has eased, according to Bank of America. And stocks recovered on Monday, with new data suggesting that efforts to contain the coronavirus pandemic may start to pay off in Spain, Italy and New York.
JPMorgan strategists Jason Hunter and Alix Tepper Floman told their customers on Friday that slowing the rate of new cases in the United States could help support stocks in the coming days.
” As [New York City] marked one of the first outbreaks in the United States, we believe that further deceleration in growth rates over the next week could help improve market sentiment, “they said.
If New York controls its infection rate faster than Italy, investors could use it as evidence that the United States could reach its peak faster than expected, according to Hunter and Floman.
Japan to release nearly $ 1 trillion in stimulus packages
Huge relief packages from major economies to fight coronavirus shock continue to come.
Last point: Japanese Prime Minister Shinzo Abe announced details of a massive stimulus package worth 108 trillion yen ($ 990 billion) on Monday. The scale – 20% of Japan’s GDP – is unprecedented, my CNN colleagues Will Ripley and Yoko Wakatsuki report.
The program includes 6 trillion yen ($ 55 billion) in cash for families who have lost significant income and small business owners. There are also 26 trillion yen ($ 238 billion) in emergency loans for Japanese companies to keep employees on their payroll.
Next steps: even more stimulus measures are underway. German media reports that the country could allocate 50 billion euros ($ 54 billion) to revive the economy as the crisis eases.
And Goldman Sachs told clients on Monday that he thought the US Congress would adopt at least one additional tax package that includes aid to state governments, as well as additional funding for small businesses and possibly another round of controls for individuals.
Here’s who first lost their job during the coronavirus crisis
The first Americans to lose their jobs as a result of the coronavirus crisis were low-wage workers with less than a high school diploma working in small businesses.
This is according to Deutsche Bank’s Torsten Slok, who conducted an analysis of the latest report on jobs in the United States over the weekend.
The report was shockingly bad. The US economy lost 701,000 jobs in March, the first time it has lost more jobs than it has gained in a decade. And the unemployment rate climbed to 4.4% from 3.5%, the largest month-over-month change since January 1975.
What’s more: William Rodgers, chief economist at the Heldrich Center for Workforce Development at Rutgers University, thinks the unemployment rate is actually over 18% given the millions of jobless claims recorded in late March, reports my CNN Business colleague Chris Isidore. .
Rodgers believes that the unemployment rate for minorities and adolescents is even worse.
New data released on Monday showed that German factory orders fell slightly in February before the shock from the coronavirus shock hit – but future data should paint a much darker picture.
Coming tomorrow: European finance ministers meet as debate continues on how best to help Spain and Italy, the two bloc countries most affected by the pandemic.