Golden Fibonacci

Jan. 14 (Bloomberg) — The Obama administration’s proposal to tax financial firms may annually cost JPMorgan Chase & Co. and Bank of America Corp. more than $1.5 billion each, hinder the industry’s recovery and stifle investor interest in bank stocks, analysts and investors said.

“This is not conducive to an investor-friendly environment,” said Peter Sorrentino, who helps manage $13.8 billion at Huntington Asset Advisors in Cincinnati. “Profit will be hampered by this tax. It keeps the industry hobbled and it never gets healthy or out from under the thumb of the government.”

Bank of America, the largest U.S. lender, would owe $1.53 billion a year, or 18 cents a share, while JPMorgan, the No. 2 U.S. bank, would owe $1.52 billion, or 38 cents a share, according to a report today by Wisco Research LLC analyst Sean Ryan. The tax would amount to 22 percent of Bank of America’s expected 2010 earnings per share and 12 percent of JPMorgan’s, Ryan wrote. Ream more »

Jan. 13 (Bloomberg) — The dollar rose against the yen, ending three days of losses, after Federal Reserve Bank of Philadelphia President Charles Plosser said policy makers must raise rates before unemployment falls to an acceptable level.

The U.S. currency advanced to 91.24 yen as of 9:26 a.m. in Tokyo from 90.98 in New York yesterday, when it declined to 90.73, the weakest since Dec. 21. The dollar was at $1.4483 per euro from $1.4486. The yen traded at 132.13 per euro from 131.79.

To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net.

Jan. 11 (Bloomberg) — Indonesia may have to reward investors with higher yields than the Philippines to borrow $4 billion as an emerging-markets bond rally fades.

Southeast Asia’s largest economy may sell 10-year debt at a yield of about 6 percent, or 2.2 percentage points more than similar maturity U.S. Treasuries, according to Aberdeen Asset Management Plc and Vegagest SGR SpA. The Philippines, whose bonds carry the same BB- rating as Indonesia’s from Standard & Poor’s, priced 2020 securities last week to yield 5.67 percent.

“If Indonesia does come to the market as planned with $4 billion of issuance, that will come with a premium,” said Edwin Gutierrez, who oversees $5 billion in emerging-market debt for Aberdeen in London. “There’s a big rush to get out the door before U.S. Treasury yields rise further.’” Ream more »

Jan. 7 (Bloomberg) — Asian stocks rose, lifting the MSCI Asia Pacific Index for a fifth day, as the improved outlook for the global economy drove up commodity prices.

Rio Tinto Group, the world’s third-largest mining company, added 0.9 percent in Sydney after metal prices in London gained the most in two months. Nippon Yusen K.K. jumped 4.6 percent after Morgan Stanley rated the stock “equal weight.” Samsung Electronics Co., Asia’s biggest semiconductor maker, lost 1.1 percent even after the company swung to profit from a year- earlier loss in the fourth quarter.

The MSCI Asia Pacific Index rose 0.5 percent to 124.72 as of 9:55 a.m. in Tokyo, with three stocks gaining for every two that declined. The gauge’s 4.1 percent advance in the past five trading days has driven its 14-day relative strength index to 69 today, nearing the 70 threshold some traders use as a sign to sell. Ream more »

Jan. 4 (Bloomberg) — Singapore’s economy shrank for the first time in three quarters as weaker manufacturing output interrupted the island’s recovery from its deepest recession since independence in 1965.

Gross domestic product contracted an annualized 6.8 percent from the previous three months last quarter after climbing a revised 14.9 percent from July to September, the trade ministry said in a statement today. That was worse than the median estimate for a 2.1 percent decline in a Bloomberg News survey of eight economists. The economy shrank 2.1 percent in 2009.

The island’s outlook is closely linked to global conditions and a “sluggish recovery” in demand for exports by companies such as Stats Chippac Ltd. will moderate growth prospects, the government said in November. The opening of two casino-resorts in the coming months will help support the economy this year, according to Nomura Holdings Inc. Ream more »