Finance Minister Bill Morneau said the government was exploring “some initiatives” to respond to tumbling oil prices and the spread of COVID-19, which claimed its first Canadian death yesterday and, according to one model, which could infect 35 to 70 per cent of the Canadian population. (Reuters, National Post)

Talking point: The federal budget was expected later this month, but economic outlooks have changed dramatically in just over a week, with economists predicting larger deficits and more government spending. Global markets picked up Tuesday after a stunning rout yesterday, buoyed by talk of stimulus policies to help offset an economic slowdown. White House officials are discussing a payroll tax cut and help for hourly-wage earners, while Canada is considering measures to mitigate the impact on airlines, among other sectors; after halting flights to China in January, Air Canada announced on Tuesday it would also stop flying to hard-hit Italy. David McKay, CEO of RBC—whose Mississauga, Ont. workers are in self-quarantine after an employee tested positive for the virus—called for a global “coordinated and effective and targeted fiscal stimulus” to deal with ongoing economic impacts on supply chain and investments. Gita Gopinath, the International Monetary Fund’s chief economist, agreed, writing, “Broader monetary stimulus such as policy rate cuts or asset purchases can lift confidence and support financial markets.” The goal, Gopinath wrote, “is to prevent a temporary crisis from permanently harming people and firms through job losses and bankruptcies.”