The number of confirmed cases of the new coronavirus worldwide surpassed 200,000 for the first time Wednesday and the damage being seeded in the global economy is growing more clear by the day. Furloughs and job cuts, from dog walkers to oilfield workers, have begun. Governments around the world are pushing drastic countermeasures to help workers, particularly those who live paycheck to paycheck. Following are developments Wednesday affecting various levels of the economy, businesses and workers: MARKETS ROIL: Stock trading is halted for the fourth time this month as S&P 500 drops 7%. Trading resumes in 15 minutes. Prior to the halt, U.S. stocks tumbled Wednesday as part of another worldwide sell-off, and wiped out the big gains and optimism that Washington had sparked the prior day with promises for massive aid for the economy. Markets have been incredibly volatile for weeks as Wall Street and the White House acknowledge that recession is almost inevitable. Daily U.S. market swings over the past decade have averaged just 0.4%. In March, swings of 4.9% in either directions have become the norm. This week, the Dow plunged 13%, rose 5% the next day, and are down 7% Wednesday. The CBOE Volatility Index, Wall Street’s fear gauge, appears to have broken from its tether. Benchmark U.S. oil plunged close to $22 per barrel for the first time since 2002. European stock indexes lost more than 4% following broad losses in Asia. The S&P 500, which dictates how 401(k) accounts perform much more than the Dow, is down nearly 30% from its record set last month. CRISIS TO COME: The U.N.’s International Labor Organization estimates that fallout from the virus outbreak could cause nearly 25 million job losses worldwide and drain up to $3.4 trillion worth of income by the end of this year. The Geneva-based agency said “an internationally coordinated policy response” could help mitigate such losses through worker protections, fiscal stimulus, and support for jobs and wages. To that end: The U.S. Senate turned to a House-passed coronavirus response bill Wednesday. The Treasury Department wants to start issuing direct payments to Americans by early next month as the centerpiece of a $1 trillion plan to stabilize the economy. In a memorandum issued Wednesday, Treasury is calling for two $250 billion cash infusions to individuals: A first set of checks issued starting April 6, with a second wave in mid-May. The Treasury plan, which requires approval by Congress, also recommends $50 billion to stabilize the airlines, $150 billion to issue loan guarantees to other struggling sectors, and $300 billion to for small businesses. The plan appears to anticipate that many of the loans would not be repaid. Canada is deferring tax payments until August, providing a wage subsidy for small businesses and pausing student loan payments amid the pandemic. Up to $82 billion Canadian (US$56.4 billion) is being spent. The money is about three percent of Canada’s gross domestic product. ENERGY FADES: Energy prices are crashing like they haven’t since the financial crisis. U.S. crude tumbled more than 17%, to around $22 per barrel. The last time oil was so cheap, the first cell phone with a built in camera was released in the U.S. On Wednesday, Halliburton furloughed 3,500 workers in Houston for 60 days. Those workers will work every other week and […]

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