• The new fed funds rate, used as a benchmark both for short-term lending for financial institutions and as a peg to many consumer rates, will now be targeted at 0% to 0.25% down from a previous target range of 1% to 1.25%.
• Facing highly disrupted financial markets, the Fed also slashed the rate of emergency lending at the discount window for banks by 125 basis points to 0.25%, and lengthened the term of loans to 90 days.
• The Fed also cut reserve requirements for thousands of banks to zero. In addition, in a global coordinated move by centrals banks, the Fed said the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank took action to enhance dollar liquidity around the world through existing dollar swap arrangements.
• The quantitative easing will take the form of $500 billion of Treasurys and $200 billion of agency-backed mortgage securities. The Fed began purchases on Monday with a $40 billion installment with another $40 billion in Treasury purchases to be made on Tuesday.

(Source: CNBC)

• Oil traded below $30 a barrel on Tuesday, close to its lowest since 2016, and analysts said more declines may follow as the coronavirus pandemic hits demand and Saudi Arabia and Russia battle for market share.
• Brent crude slipped 51 cents to $29.54 per barrel, having earlier touched $31.25. On Monday it sank to $29.45, the lowest since January 2016. U.S. West Texas Intermediate crude reversed most of an earlier 4.7% gain to 14 cents, or 0.5%, and trade at $28.56 per barrel.
• Countries including the United States and Canada, along with nations in Europe and Asia, are taking unprecedented steps to contain the virus, curbing demand for crude and products such as gasoline and jet fuel.
• Just as travel bans, cancelled events and other economic disruptions eat into crude demand, major oil producers are planning to add more crude to an oversupplied market. The United States has said it will take advantage of low oil prices to fill its Strategic Petroleum Reserve (SPR). Other countries and companies are planning similar measures to fill storage tanks.

(Source: CNBC)

• For the year ended December 2019, net profit at Blue Power dipped 34.4% (or $31.58Mn) down to $60.30Mn (EPS: $0.10).
• An 11.7% (or $135.55Mn) fall-off in revenues, coupled with a 7.3% (or $5.22Mn) increase in total expenses were the main factors which contributed to the decline in profit.
• The stock price has fallen 24.9% since the start of the calendar year and closed at $1.27 on Monday. At this price the stock currently trades at a P/E of 12.7x earnings which is below the Junior Market Distribution Sector Average of 19.7x

(Source: JETCON Financials)

• Net profit at tTech Limited edged down 10.1% ($2.78Mn) for the year ended December 31, 2019, despite a 19.9% (or $56.44Mn) increase in revenues. Net profit declined to $24.76Mn (EPS: 23¢) from $27.54Mn (EPS: 26¢) in the corresponding period of 2018.
• The main contributor to this performance was a 14.0% (or $27.76Mn) increase in total expenses as well as a 100% ($2.47Mn) increase in finance cost for the period.
• The stock has fallen 33.7% since the start of the calendar year. tTech closed Monday’s trading session at $4.32 and currently trades at a P/E of 18.8x earnings which is below the Junior Market Other Average of 19.4x.

(Source: Ttech Financials)

• A 40-year-old woman in Panama has tested positive for coronavirus, the country's health minister said on Monday. The patient is a Panamanian woman who had returned Sunday from Madrid. While only a few dozen cases have been confirmed in Latin America, the epidemic is growing in Europe. Spain is among four European countries with more than 1,000 cases each.
• Panama's Health Minister Rosario Turner said Monday the 40-year-old woman's positive test was confirmed at the Instituto Conmemorativo Gorgas. The woman is isolated at home and will receive daily visits from health workers.
• The virus that causes the COVID-19 illness has also been confirmed in the Caribbean, Brazil, Mexico, Ecuador, the Dominican Republic, Guadeloupe, Martinique, Argentina, Peru, Costa Rica, Chile and Argentina, where there has been one death.

 (Source: Bloomberg)

• Mexico’s currency commission will increase a non-deliverable forward hedge program to a maximum of $30 billion from $20 billion.
• The commission comprised of Banco de Mexico and the Finance Ministry moved to support the currency after the peso posted its worst daily drop since Donald Trump’s election in 2016. The Mexican peso trimmed losses after the commission’s announcement.
• The peso slide followed a collapse in global oil prices as the OPEC+ alliance disintegrated into a price war over crude. That along with fears over the spread of the coronavirus put pressure on Mexican assets on Monday.

 (Source: Bloomberg)

• Oil prices surged higher on Tuesday following reports that ongoing talks between OPEC and its allies, known as OPEC+, remain possible.
• Speaking to reporters Tuesday, Russian Energy Minister Alexander Novak said that Moscow had not ruled out measures with OPEC to stabilize oil markets, according to Interfax news agency.
• Russia’s energy ministry has proposed to hold a meeting with Russian oil companies on Wednesday, Reuters reported, citing two unnamed sources.
• International benchmark Brent crude gained $3.41, or 9.9%, to trade at $37.73 per barrel, while U.S. West Texas Intermediate futures were up 9.5% to trade at $34.08 per barrel. Earlier in the session WTI surged more than 10%.
• Prices rebounded following Monday’s plunge, which saw WTI and Brent drop 24% for their worst decline since 1991.

(Source: CNBC)

• Treasury yields soared from record lows as investors flocked to the stock market following its worst day since the financial crisis.
• The yield on the benchmark 10-year Treasury note jumped 22 basis points to around 0.722%, the biggest gain since July 2013. The benchmark rate tanked to a record low of 0.318% on Monday. The yield on the 30-year Treasury bond also climbed back above 1%, last trading at 1.222%.
• Stock futures pointed to sharp gains at the open Tuesday with the Dow Jones Industrial Average set to soar more than 1,000 points. S&P 500 futures were up 5% earlier in the session, reaching their upside limit.
• The market suffered a historic sell-off in the previous session, with the Dow and the S&P 500 plunging 7.8% and 7.6%, respectively, both posting their worst day since 2008. Investors crowded into Treasurys for safety, pushing yields to record lows.
• The rally in stock futures came after President Donald Trump floated the idea of “a payroll tax cut or relief” to offset the negative impact from the coronavirus. The potential tax incentives come on top of an $8.3 billion spending package Trump signed last month to aid the US’ response to the virus.

(Source: CNBC)

• Jamaica Producers Group Limited reported audited profits attributable to shareholders of $1.20Bn (EPS: 107.32 ¢) for the year ended December 31, 2019, representing a 47.7% (or $388.72Mn) improvement when compared to the corresponding period in 2018.
• The main contributor to this performance was a 57.6% increase in revenues coupled with a 126.5% increase in other income
• Jamaica Producers Group Limited stock price has fallen by 22.8% since the start of the calendar year, and closed Wednesday’s trading session at $21.03.  The stock currently trades at a P/E of 19.6x earnings, which is above the Main Market Conglomerate Sector Average of 15.7x.

(Source: JP Financials)

• For the year ended December 31, 2019, Stationery and Office Supplies Limited reported audited net profit of $134.56Mn (EPS:54¢), up by 46.8% (or $42.89Mn) relative to the same period one year prior.
• This performance was driven by a 14.4% (or $153.62) increase in revenues— which outstripped the 58.7% (or $57.71Mn) increase in total expenses—coupled with a 254.6% (or $0.78Mn) increase in finance income.
• The stock has fallen by 11.98% since the beginning of the calendar year. SOS closed Wednesday’s trading session at $9.70 and currently trades at a P/E of 18.0x earnings which is below The Junior Market Distribution Sector Average of 21.6x earnings.

(Source: SOS Financials)