1. Why Economic Pain Could Persist Even After the Pandemic Is Contained – NY Times
2. The Airline Business Is Terrible. It Will Probably Get Even Worse – NY Times
3. Pandemic crisis offers glimpse into oil industry’s future – Financial Times

1. U.S. Jobless Rate Surges to 14.7% in Worst-Ever Labor Reversal – Bloomberg Economics
2. Treasury market sends bearish signals as stocks rise – Financial Times
3. Health Care Used to Be Recession-Proof. Not Anymore – NY Times

1. The EU is facing its worst recession ever. Watch out, world. – NY Times
2. Texas Economic Activity Sharply Falls in Wake of COVID-19 – Dallas Fed
3. Inflation: A Misguided Fear – David Beckworth

1. Layoffs Start Turning From Temporary to Permanent Across America – Bloomberg
2. World Faces Rare ‘Inflationary Depression,’ Says Keynes Scholar – Bloomberg Economics
3. Swiss National Bank’s swollen balance-sheet poses risk to ‘credibility’ – Financial Times
4. Fed Embraces Libor Again and Risks Undermining Push to Kill It – Bloomberg

1. A Lot of Cash Is on the Sidelines. That Could Limit Stocks’ Slide, Yardeni Says. – Barron’s
2. Wall Street’s elite bond club (primary dealers) is cracking at the worst possible time – Bloomberg
3. Hedge Funds Aren’t What They Were in Buffett’s Day – John Authers, Bloomberg
4. Sam Zell Sees Economy Permanently Scarred by Pandemic – Bloomberg
5. Wall Street ‘flying blind’ after companies scrap guidance – Financial Times

1. California Is First State to Borrow From Federal Government to Make Unemployment Payments – WSJ
2. Mnuchin to Issue $3 Trillion in Debt After Virus Hobbles Economy – Bloomberg
3. Hedge Fund Stock Exposure Is the Highest in at Least Three Years – Bloomberg
4. As Hong Kong’s Economy Sinks, Scant Liquidity Underpins Dollar – Tian Chen, Bloomberg
5. The business world can never go back to the way things were – FT Opinion

1. Oil ETF (USO): Survival Tactics Embolden Its Swelling Retail Fan Base – Bloomberg
2. Bonds beat stocks over the last 20 years – NY Times

1. Just where was the fire that caused the Federal Reserve to buy $1.3 trillion of treasury debt in a month? – John Cochrane.

Basically a bunch of hedge funds replayed an age-old strategy and got caught. Plus ça change. They bought treasury bonds and simultaneously sold them in futures markets. Since treasury bonds are great collateral they can lever up a small price difference to make a lot with little investment. But even arbitrage opportunities are not risk free.

2. US stock market rally confuses liquidity with solvency – Gillian Tett, Financial Times.

Despite the massive stimulus moves around the world and the unimaginably large new rounds of money printing, there is substantial uncertainty about the future viability of a large range of businesses.

Paul Singer of Elliott Management

3. April 2020 was one of the strongest months in years across numerous markets – WSJ