Golden Fibonacci

By Mike Ramsey and Christopher Scinta

April 29 (Bloomberg) — President Barack Obama aims to announce tomorrow that Chrysler LLC will be placed into Chapter 11 bankruptcy, leading to an alliance with Italian automaker Fiat SpA, people involved in the matter said.

Administration officials are still resolving outstanding issues, and the plan isn’t finished, said one of the people, who declined to be named because discussions are private.

As part of negotiations, the U.S. Treasury raised its offer to Chrysler’s lenders to $2.25 billion in cash to forgive $6.9 billion in secured debt, two other people familiar with the matter said. The previous offer had been for $2 billion in cash.

Obama said he is “hopeful” that Chrysler will come up with a solution that will allow for a merger with Fiat. Details of a deal aren’t finished, Obama said in a White House news conference tonight. If Chrysler has to go through a bankruptcy it will be a “quick” process, he said. Ream more »

April 26 (Bloomberg) — Chrysler LLC, racing against an April 30 deadline to cut labor costs or face bankruptcy, reached a tentative contract agreement with its biggest U.S. union and won ratification of a new accord with Canadian workers.

Members of the United Auto Workers must still vote on their proposed money-saving contract, according to a statement today from the Detroit-based union.

Employees represented by the Canadian Auto Workers approved a new contract that may save the automaker C$240 million ($197 million) annually. The union, representing about 8,000 Chrysler workers in Ontario, said in a statement today that 87 percent of the votes cast were in favor of the measure.

The moves boosted Chrysler’s hopes to avoid a government- ordered bankruptcy. Union workers must accept less-generous contracts so Chrysler can form an alliance with Italy’s Fiat SpA and qualify for more U.S. and Canadian aid. The company still must get lenders to erase most of $6.9 billion in secured debts. Ream more »

By Takahiko Hyuga and Takako Taniguchi

April 25 (Bloomberg) — Citigroup Inc., rescued by three U.S. government bailouts, may sell its Japanese retail brokerage to Sumitomo Mitsui Financial Group Inc., two people with knowledge of the matter said.

New York-based Citigroup selected Sumitomo Mitsui as the preferred buyer for Nikko Cordial Securities Inc. after Japan’s second-largest bank by market value outbid rivals with an offer of about 500 billion yen ($5 billion), said the people, who declined to be identified as the negotiations are confidential. Ream more »

PT Bakrieland Development Tbk (ELTY) dan PT Media Nusantara Citra Tbk (MNCN) tidak merealisasikan pembelian kembali saham (buy back). Padahal, total dana yang disediakan dua emiten tersebut mencapai Rp 1,001 triliun.

Demikian data realisasi buyback yang dipublikasikan Badan Pengawas Pasar Modal & Lembaga Keuangan (Bapepam-LK), Jumat (24/4/2009).

Total emiten yang mengikuti program buy back khusus tahap dua ada 11 emiten, terdiri dari PT Adhi Karya Tbk (ADHI), PT Jaya Real Properti Tbk (JRPT), PT Bakrieland Development Tbk (ELTY), PT Media Nusantara Citra Tbk (MNCN), PT PP London Sumatera Tbk (LSIP), PT Jasuindo Tiga Perkasa Tbk (JTTP), PT Kalbe Farma Tbk (KLBF), PT Wijaya Karya Tbk (WIKA), PT Ace Hardware Indonesia Tbk (ACES), PT Kageo Igar Jaya Tbk (IGAR) dan PT Global Mediacom Tbk (BMTR). Ream more »

April 23 (Bloomberg) — Credit Suisse Group AG, the biggest Swiss bank by market value, reported first-quarter profit that exceeded analysts’ estimates on a recovery in trading revenue.

Credit Suisse rose as much as 8.2 percent in Swiss trading after reporting net income of 2 billion Swiss francs ($1.7 billion), twice the median estimate of analysts surveyed by Bloomberg News. The Zurich-based bank rebounded from a 2.15 billion-franc loss in the year-earlier period.

Chief Executive Officer Brady Dougan said he’s “optimistic” about the bank’s prospects, after cutting 5,300 jobs and eliminating money-losing businesses at the investment bank. Zurich-based UBS AG, which hired Dougan’s former boss Oswald Gruebel as CEO this year, reported a first-quarter loss of almost 2 billion francs last week. Ream more »

April 21 (Bloomberg) — Treasury Secretary Timothy Geithner said banks found to need additional capital at the conclusion of regulators’ stress tests will have a range of options for shoring up their balance sheets.

The Treasury chief, testifying before a congressional oversight panel today, said lenders will be able to take taxpayer money, raise funds from private investors or convert previous government investments from preferred to common shares. Each bank can chose the “best mix” of alternatives and will likely make different choices, Geithner said.

“They’ll be balancing lots of different considerations,” he said. “That’s a process they’re going to have to undertake, and it’s going to require a fair amount of care and effort.”

Geithner, in sometimes combative testimony, underscored that financial regulators are taking the lead in reviewing the 19 biggest banks. Those agencies — and not the Treasury — will also determine when the healthiest banks can pay the government back, he said. Ream more »

April 21 (Bloomberg) — Asian stocks slumped, led by financial and mining companies, as higher loan-loss reserves at Bank of America Corp. and a drop in commodity prices derailed optimism the global economy is recovering.

Orix Corp., Japan’s largest non-bank financial company, slid 6.1 percent after Nomura Holdings Inc. downgraded the shares. BHP Billiton Ltd., the world’s largest mining company, lost 3.6 percent after oil and metals prices sank. Mitsubishi Corp., Japan’s No. 1 trading company, dropped 5.2 percent after the Nikkei newspaper said falling coal prices will erode profits.

“You’re seeing cold water being poured on the theme of a sharp rebound in growth,” said Tim Schroeders, who helps manage about $1 billion at Pengana Capital Ltd. in Melbourne. “Last night’s data, along with indications that the rapid run we’ve experienced in the last six weeks may be coming to an end, has fed on itself.” Ream more »

Sebanyak lima perusahaan mengincar 37,15% kepemilikan saham PT Elnusa Tbk (ELSA) yang dimiliki Tri Daya Esta. Masing-masing perusahaan tersebut terdiri dari tiga perusahaan lokal dan dua investor asing.

Demikian hal itu diungkapkan oleh Direktur Investment Banking Bahana Securities Eko Yulianto di Kantor Kementerian Negara Badan Usaha Milik Negara (BUMN), Gedung Garuda, Jalan Medan Merdeka Selatan, Jakarta, Jumat (18/4/2009).

“Saat ini mereka sedang dalam proses due diligence,” ujarnya.

Eko menambahkan, proses due diligence tersebut bisa rampung di pertengahan Mei tahun 2009 ini, sehingga diharapkan penjualannya selesai di akhir bulan tersebut. Ream more »

April 18 (Bloomberg) — The U.S. Treasury and financial regulators are clashing with each other over how to disclose results from the stress tests of 19 U.S. banks, with some officials concerned at potential damage to weaker institutions.

With a May 4 deadline approaching, there is no set plan for how much information to release, how to categorize the results or who should make the announcements, people familiar with the matter said. While the Office of the Comptroller of the Currency and other regulators want few details about the assessments to be publicized, the Treasury is pushing for broader disclosure.

The disarray highlights what threatens to be a lose-lose situation for Treasury Secretary Timothy Geithner: If all the banks pass, the tests’ credibility will be questioned, and if some banks get failing grades and are forced to accept more government capital and oversight, they may be punished by investors and customers. Ream more »

By Jonathan Burgos and Patrick Rial

April 17 (Bloomberg) — Asian stocks advanced, led by banks and automakers, as earnings from JPMorgan Chase & Co. and falling U.S. jobless claims lifted confidence the global recession is easing.

Commonwealth Bank of Australia, the nation’s largest mortgage lender, climbed 2.9 percent on speculation profits in the industry are recovering. Toyota Motor Corp., which gets 37 percent of its revenue in North America, jumped 3.2 percent. Toshiba Corp., Japan’s largest chipmaker, gained 4.4 percent on speculation it will report narrower losses.

The MSCI Asia Pacific Index added 1.2 percent to 90.04 at 10:31 a.m. in Tokyo. The gauge has risen 2.4 percent this week, its sixth-consecutive advance, which is the longest winning streak since December 2006. The U.S. Standard & Poor’s 500 Index gained 1.6 percent yesterday, its second-straight increase. Ream more »