Coronavirus pushes New York Fed to increase liquidity

Amid coronavirus, Fed raises repo lending to keep markets functioning

The Federal Reserve boosts money it’s providing to banks in overnight repo lending to $175 billion to ensure smooth market functioning amid coronavirus.

The Federal Reserve Bank of New York announced Wednesday that it would increase its lending in short-term funding markets in an attempt to calm investors’ fears as the coronavirus wreaks havoc in the financial markets

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In a statement, the regional Fed bank said it would increase its daily overnight repurchase agreement (repo) operations to at least $175 billion for the next month. That is an increase from the $150 billion announced Monday.

In addition, the bank said “the Desk will also offer three one-month term repo operations, with the first operation occurring on Thursday, March 12, 2020. The amount offered for each of these three operations will be at least $50 billion.”

These operations are intended to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures. The New York Fed also said these moves “should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus.”

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EARNINGS SUMMARY: Details of Microvision Inc. Q4 Earnings Report

Below are the earnings highlights for Microvision Inc. (MVIS):

-Earnings: -$3.28 million in Q4 vs. -$11.95 million in the same period last year.
-EPS: -$0.03 in Q4 vs. -$0.13 in the same period last year.
-Analysts projected -$0.05 per share
-Revenue: $4.61 million in Q4 vs. $1.83 million in the same period last year.

Uber to suspend accounts of riders, drivers who catch coronavirus

Good luck catching an Uber if you catch the coronavirus.

The ride-hail giant on Wednesday announced that it will suspend the accounts of drivers and passengers who fall ill with the virus or who may have been exposed to it.

Uber said on its website that it is working with public health authorities through the epidemic, and is “consulting with an epidemiologist to make sure our efforts as a company are grounded in medical advice.”

“We are always working to help keep everyone who uses Uber safe,” a spokesperson told The Post. “We have a dedicated global team … working to respond in every market where we operate around the world.”

Suspensions would come at the request of public health authorities. Uber drivers sign up for the app using their full names, while riders are required to give their emails or phone numbers.

In an internal email obtained by CNN, Uber CEO Dara Khosrowshahi said that the company would compensate drivers and delivery workers whose accounts are suspended.

Uber is also giving disinfectants to drivers, according to the email, and allowing Uber Eats users to direct delivery people to leave orders at the door.

Global Cord Blood Corporation Q3 Profit Advances

Global Cord Blood Corporation (CO) released earnings for its third quarter that increased from last year.

The company’s profit totaled RMB145.01 million, or RMB1.19 per share. This compares with RMB61.36 million, or RMB0.51 per share, in last year’s third quarter.

The company’s revenue for the quarter rose 31.7% to RMB334.73 million from RMB254.18 million last year.

Global Cord Blood Corporation earnings at a glance:

-Earnings (Q3): RMB145.01 Mln. vs. RMB61.36 Mln. last year.
-EPS (Q3): RMB1.19 vs. RMB0.51 last year.
-Revenue (Q3): RMB334.73 Mln vs. RMB254.18 Mln last year.

Stock market sinks into bear territory as coronavirus declared a pandemic

Goodbye bull market.

The Dow Jones industrial average slide into bear-market territory on Wednesday as the World Health Organization declared the coronavirus outbreak a pandemic and Goldman Sachs predicted an end to an 11-year bull market.

The Dow lost 1,464.84 points, or 5.8 percent, to 23,553.23 — down 20 percent from its high on Feb. 12. A bear market is generally declared after stocks decline 20 percent from recent highs.

Stocks plunged as WHO director Tedros Adhanom Ghebreyesus rang alarm bells over the virus, which has spread to at least 114 countries, killing 4,607 worldwide.

“We are deeply concerned both by the alarming levels of spread and severity, and by the alarming levels of inaction,” Adhanom Ghebreyesus told reporters before declaring it a pandemic.

Adding to investors’ fears, Goldman Sachs on Wednesday said it expects the tumble will soon bring an end to the longest bull market on record. The bank projected Wednesday that the S&P 500 will drop 15 percent from its current level to 2,450 points by the middle of the year before rebounding in the fourth quarter.

The S&P ended the day down 4.89 percent to 2,741.40 while the Nasdaq lost 4.7 percent to 7,952.05.

EARNINGS SUMMARY: Details of PDL BioPharma Inc. Q4 Earnings Report

Below are the earnings highlights for PDL BioPharma Inc. (PDLI):

-Earnings: -$54.89 million in Q4 vs. $16.28 million in the same period last year.
-EPS: -$0.48 in Q4 vs. $0.11 in the same period last year.
-Analysts projected $0.05 per share

Crude Oil Prices Hand Back Early Gains

Crude oil prices moved higher in early trading on Wednesday before reversing course and heading south again as the day progressed.

West Texas Intermediate crude oil futures for April tumbled $1.38 or 4 percent to $32.98 a barrel on Wednesday after spiking $3.23 or 10.4 percent to $34.36 a barrel in the previous session.

Crude initially moved higher on Wednesday after China declared that it has basically curbed the spread of the coronavirus disease in Wuhan, the city at the heart of the global epidemic.

Hopes for stimulus in the face of the epidemic also boosted risk sentiment, but uncertainty reappeared late in the day as investors grew cautious.

Crude fell almost 25 percent on Monday after the bottom dropped out of the oil market when Saudi Arabia threatened to flood the market following a spat with Russia over production cuts.