Even with stimulus, virus will deal economy lasting hit

The agreement on a $2trn fiscal stimulus, the Fed’s actions and tentative signs that quarantine measures in Europe are beginning to curb the virus spread have all helped steady the mood in markets this week. But as the grisly 3.3m rise in jobless claims highlights, not only will the initial hit to the economy be enormous, the path to economic recovery once the virus is under control is unlikely to be plane sailing.