Executive bonuses rise 18% to a new record under Obama administration

President Obama plans to called for taxing about 50 banks and major financial institutions for at least the next decade to recoup all taxpayer losses from the bailout of Wall Street.  The Wall Street Journal reported that executive bonuses however will rise 18% to a new record under Obama administration. 

World Outlook
European shares turned negative by midday on Friday, reversing a three-session gaining run, pressured by weakness in banks as investor's sentiment soured after U.S. bank JPMorgan (JPM.N) reported earnings.

Market Week News:

So far this week: A survey by Bloomberg shows investors are the most bearish on Treasuries in more than two years as the reliance on government debt and taxes to revive economic growth weighs on sovereign issues.

Confidence among small businesses declined in December to the lowest level in five months as the outlook for sales remained dim, according to the National Federation of Independent Business optimism index. It declined to 88 in December from 88.3 in November.
The trade deficit in the U.S. widened in November more than anticipated as the gap expanded 9.7 percent to $36.4 billion, the highest level since January 2009, from a revised $33.2 billion in October, Commerce Department data showed today in Washington. Imports increased 2.6 percent, reflecting a jump in oil prices, while exports rose to the highest level in a year.

FED's Beige book outlook. The Federal Reserve's latest economic snapshot suggests conditions are better, but still soft. Commercial vacancy rates were increasing and rents declining in most districts. Several districts reported “landlords were focused on tenant retention and that slack demand was allowing tenants to negotiate lease extensions at low rents and with favorable allowances.”

Yesterday:
December Retail Sales unexpectedly fell 0.3% in highlighting that the largest part of the economy will be slow to recover.
The Labor Department said workers filing initial unemployment claims rose by 11,000 last week to 444,000. Economists had been expecting a modest increase of 3,000.
Despite the higher-than-expected increase in new claims, the number of people continuing to file for unemployment benefits fell to 4.6 million from 4.8 million the previous week. That means about 190,000 workers are no longer listed as unemployed and cannot continue to get benefits.

Friday, Jan. 15:
Consumer Price Index
NY Manufacturing Index
Industrial Production
Consumer Sentiment

Market forces January 15, 2010
Intel reported increased profits from sales to China resulting in yesterday's rally.

Volume on market advances has been very low. Trim Tabs said it must be the Obama administration supporting the stock market because no one else is.

Asian markets were flat over night; Shanghai up 0.3%, Hong Kong down -0.3%, India down -0.3%, and Japan up 0.7%.

European markets are down with the average in a range from -0.1% to -0.8% this morning about half way through their day.

US pre-market futures are lower at about -0.3% today at 9:00 AM EST.