• Fitch has revised its end-2020 policy interest rate forecast in Brazil to 3.25%, from 4.25% previously, expecting an additional 50 basis points of cuts over the coming months.
• Despite pressures from capital outflows, the Banco Central do Brasil will continue to ease monetary policy in order to support credit and economic activity as the economy is pushed into recession due to Covid-19 (coronavirus).
• A range of additional policy measures, such as cuts to reserve requirements and repo operations, will further support liquidity in the financial system.

(Source: Fitch)

• The Central Bank announced several policy measures to address Covid-19 on Monday including:The Bank’s discount rate at which it provides overnight lending to banks and deposit-taking non-banks licensed under the Financial Institutions Act will be reduced from 7% to 2%.
• The Bank will reduce the securities ratio for banks from 17.5% to 5%. The Bank will also eliminate the 1.5% securities ratio for non-bank deposit taking licensees.
• The Bank also stands ready to make collateralised loans for up to six months as liquidity support for licensees, if necessary.

(Source: Central Bank of Barbados)

• Oil prices are on pace to register their worst quarterly performance on record, as the coronavirus pandemic continues to crush global demand for crude.
• International benchmark Brent crude traded at $23.36 a barrel Tuesday morning, up more than 2.6%, while U.S. West Texas Intermediate (WTI) stood at $21.26, more than 5.8% higher.
• Brent futures fell to their lowest level in 18 years on Monday and WTI ended the previous session below $20, before both benchmarks pared some of their losses on the final trading day of the first quarter.
• To date, Brent futures have fallen more than 65% through the first three months of 2020, putting the benchmark on track to register its worst quarter through our history to 1990, according to data compiled by CNBC.

(Source: CNBC)

• The U.S. Federal Reserve on Tuesday broadened the ability of foreign centrals banks to access U.S. dollars during the coronavirus crisis by allowing them to exchange their holdings of U.S. Treasury securities for overnight dollar loans.
• The new repurchase program, distinct from the swap lines with major central banks in which dollars are exchanged for foreign currencies, “should help support the smooth functioning of the U.S.
• Treasury market by providing an alternative temporary source of U.S. dollars other than sales of securities in the open market,” the Fed said. The program is to be running by April 6 and last for at least six months.

(Source: Reuters)

• Several hotels operating locally have decided to temporarily close their properties as a result of a number of global travel restrictions that have been instituted, due to the spread of the novel coronavirus (COVID-19).
• Among these are the Iberostar Rose Hall Beach and Grand Rose Hall in St James, which has closed from March 24 to April 30.
• “In light of the world health emergency caused by the spread of COVID-19 globally, we are following all current protocols and recommendations published by both the World Health Organization (WHO) and local authorities,” the hotel explained in a statement.
• “As a result, we are taking the following measures, with the health and safety of our guests and employees as our maximum priority. As of March 19, guests arriving at our hotel – Iberostar Rose Hall Beach – will be redirected to the Iberostar Selection Rose Hall Suites where they will be accommodated,” the hotel said.

(Source: JIS)

• Economic growth in Costa Rica will slow in the near term as the global Covid-19 (coronavirus) outbreak strains the country’s tourism industry, weighs on investment and drives unemployment levels higher.
• Limited fiscal space will constrain the government's response to the pandemic, causing monetary policy to serve as the primary response tool to combat the economic impact of coronavirus.
• Fitch revised its 2020 real GDP growth forecast to 1.1% y-o-y, from 2.6% previously, and note downside risks to its outlook if the Costa Rican government ramps up domestic mobility and travel restrictions to combat the spread of the coronavirus.

  (Source: Fitch)

• The Banco Central de Chile (BCC) will lower its benchmark monetary policy rate to 0.75% by end-2020, from 1.00% currently, in an effort to limit the economic impact of the Covid-19 (coronavirus) pandemic.
• Despite rising inflation, the BCC will use loose monetary policy and several other measures over the coming quarters to attempt to stabilize financial markets.
• Risks to the interest rate forecast are weighted to the downside, as the economic impact of the coronavirus could be larger than is anticipated, which would likely prompt the BCC to loosen monetary policy further.

  (Source: Fitch)

• The coronavirus outbreak is likely to have severe economic and social consequences for International Development Association (IDA) countries, home to a quarter of the world’s population and two-thirds of the world’s population living in extreme poverty.
• With immediate effect—and consistent with national laws of the creditor countries—the World Bank Group and the International Monetary Fund call on all official bilateral creditors to suspend debt payments from IDA countries that request forbearance.
• This will help with IDA countries’ immediate liquidity needs to tackle challenges posed by the coronavirus outbreak and allow time for an assessment of the crisis impact and financing needs for each country.
• The World Bank Group and the IMF believe it is imperative at this moment to provide a global sense of relief for developing countries as well as a strong signal to financial markets. The international community would welcome G20 support for this Call to Action.

(Source: The World Bank)

• Nearly 3.3 million Americans applied for unemployment benefits last week — more than quadruple the previous record set in 1982 — amid a widespread economic shutdown caused by the coronavirus.
• The surge in weekly applications was a stunning reflection of the damage the viral outbreak is doing to the economy. Filings for unemployment aid generally reflect the pace of layoffs.
• The pace of layoffs is sure to accelerate as the U.S. economy sinks into a recession. Revenue has collapsed at restaurants, hotels, movie theaters, gyms, and airlines. Auto sales are plummeting, and car makers have close factories. Most such employers face loan payments and other fixed costs, so they’re cutting jobs to save money.
• As job losses mount, some economists say the nation’s unemployment rate could approach 13% by May. By comparison, the highest jobless rate during the Great Recession, which ended in 2009, was 10%.

(Source: Associated Press News)

• PanJam Investment Limited reported audited net profits attributable to shareholders of $8.31Bn (EPS: $7.85) for the year ended December 31, 2019. This represents a 55.8% (or $2.97Bn) increase from the $5.33Bn made in the prior year.
• A 41.7% (or $1.36Bn) increase in revenues that overshadowed the 4.4% (or $73.96Mn) increase in total expenses drove this performance. Additionally, a $1.58Bn increase in gains on the disposal of shares in associate companies supported the improvement in the company’s bottom line.
• The stock price has fallen 21.9% since the start of the year, closing Tuesday’s trading session at $78.82. At this price, PanJam trades at a P/E of 10.0x, which is below the Main Market Conglomerate Sector Average of 12.4x.

(Source: PanJam’s Financials)