Market Updates: Citigroup (NYSE:C), Chevron (NYSE:CVX), Johnson & Johnson (NYSE:JNJ)

Chinese banks have begun restricting new loans, responding to a push by regulators to contain credit after a surge in lending in the first half of this month.Bank of China Ltd. has stopped extending new corporate loans in the Shanghai area. The People’s Bank of China has instructed China Citic Bank Corp. and Industrial & Commercial Bank of China Ltd. to raise their reserve ratios by an additional 0.5 percentage point, Reuters reported. China Construction Bank Corp., the country’s second-largest bank, retreated 1.2 percent to 5.84 yuan. Shanghai Pudong Development Bank Co., the Chinese partner of Citigroup (NYSE:C), added 1.1 percent to 20.69 yuan. -Bloomberg

Chevron (NYSE:CVX) announced a new natural gas discovery at its Yellowglen-1 well near the Gorgon area off the coast of western Australia. “This discovery adds to the growth of our natural gas business in Australia,” said Jim Blackwell, president, Chevron Asia Pacific Exploration and Production Co. “We plan a robust program of exploration, appraisal and seismic programs in Australia in 2010.”

Johnson & Johnson (NYSE:JNJ) reported a decline in fourth quarter profit, hurt by restructuring costs. Adjusted income beat analysts’ estimates. Net income fell to $2.21 billion, or 79 cents per share, from $2.71 billion, or 97 cents, in the same period a year earlier. Adjusted for certain items, profit was $1.02, beating the 97-cent average estimate. J&J reported $1.07 billion in expenses as it restructured its business. The company plans to cut its 117,000 member workforce by 6 to 7 percent as demand has slowed for consumer products and some top-selling medicines face competition from cheaper generic medicines.-Bloomberg

President Obama will ask Congress to freeze spending for some domestic programs for three years beginning in 2011 in light of voter anger over mounting budget deficits. The spending freeze would apply to a relatively small portion of the federal budget, affecting $477 billion available for domestic agencies whose budgets are approved by Congress every year. Some of those agencies could get increases, others would have to face cuts; such programs got an almost 10 percent increase this year. The federal budget total was $3.5 trillion. The Pentagon, veterans programs, foreign aid and the Homeland Security Department would be exempt from the freeze. -Daily Finance

Standard & Poor’s Ratings Services stated today that it may downgrade Japan’s sovereign credit ratings if data does not improve or if the government fails to get its fiscal and economic house in order. The ratings agency placed a negative outlook on Japan’s AA sovereign long-term credit rating, saying it could issue a downgrade to AA- “if economic data remains weak and measures to boost medium-term growth are not forthcoming, given the country’s high government debt burden and its weak demographic profile.” -MarketWatch

-Roundup provided by Jutia Group