US shoppers in VAT confusion

Shoppers are facing the last day of the lower rate of VAT, although many retailers have said they will not increase prices on 1 January. VAT is set to return to 17.5 % in the new year after being reduced to 15 % on 1 December 2008. The government cut VAT in an attempt to boost spending in the recession. But several retailers have said that they will delay passing on the higher rate, while others say they will absorb the cost of the increase. The Centre for Economics and Business Research ( CEBR) estimates that the 13- month tax cut helped boost consumer spending by £6.8 bn, although the British Retail Consortium (BRC) says it has had a "very limited effect". However, the CEBR warned that the first few months of 2010 could be tough for retailers, as spending may be affected by the increase in VAT and rising inflation. Fake freeze? Supermarket giants Tesco, Sainsbury's and Asda have all said that they will delay passing on the increased rate on thousands of products. But Tesco has been accused of raising prices ahead of the tax rise. A report in the Daily Mail claims that Tesco, Boots and Morrisons have all increased the prices of certain items in recent weeks. Tesco told the newspaper its price changes had " no link whatsoever" to the VAT increase, while Boots said it benchmarked its prices against other retailers. Morrisons, which has not claimed that it would freeze VAT, said prices vary throughout the year "reflecting costs and promotional changes". Absorbing costs Meanwhile, Argos and John Lewis both say they will not raise prices until the end of January. Arcadia Group, which owns Topshop, Dorothy Perkins and BHS, has said it will absorb the cost of the increase in all of its stores. But Marks and Spencer will raise prices on all general merchandise from 1 January and on food items on which the tax is paid from 11 January. Shoppers will not notice a difference on price tags, though, as the retailer never displayed the VAT reduction on tags, instead giving customers a 2.5 % discount at the till.

US votes for china steel

A US trade commission has agreed plans to impose tariffs on imports of Chinese-made steel pipes. The US's International Trade Commission voted unanimously in favour of the tariffs, designed to offset Chinese government subsidies. Duties ranging between 10 % and 15 % are now set to be imposed. The move is the latest in a string of recent trade disputes between China and the US, who accuse China of using unfair subsidies and price practices. In November, the US imposed a 35 % import duty on Chinese tyres, arguing that large numbers entering the US market was having a disruptive effect. The latest decision clears the way for the Commerce Department to impose the tariffs on steel piping as originally outlined in November. Steel piping is big business in the US, which imported $2.74 bn of steel pipe from China last year. The pipes are used in oil wells, and have seen increased demand on the back of rising oil prices.

Apple win ipod hearing

A US appeals court has ruled in favour of Apple in a lawsuit claiming that the iPod was could be responsible for hearing loss. The judge upheld a 2008 ruling, saying "the plaintiffs simply do not plead facts showing that hearing loss from iPod use is actual or imminent". He also noted that Apple issues a warning with each of the music players. The two claimants said the iPod was defective because users can listen to it at the unsafe level of 115 decibels. Apple has sold more than 220 million iPods since its launch in 2001. "The plaintiffs do not allege the iPods failed to do anything they were designed to do nor do they allege that they, or any others, have suffered or are substantially certain to suffer inevitable hearing loss or other injury from iPod use," Senior Judge David Thompson wrote in a statement. He added: "At most, the plaintiffs plead a potential risk of hearing loss not to themselves, but to other unidentified iPod users."

Russian firm listed in Hongkong

The Russian aluminium firm Rusal plans to raise as much as $2.6 bn from its public listing in Hong Kong. It is the first Russian company to be listed on the exchange. Trading is expected to begin on 27 January. Rusal will sell 1.6 bn shares at a price between 9. 1 Hong Kong dollars ($1.20 ; 73 pence) and 12.5 Hong Kong dollars. The firm is banned from selling shares to retail investors. Any wealthy individuals who want to invest must buy at least 1 m Hong Kong dollars' worth. The sale has been delayed twice because of concerns about the company's $14.9 bn debt. "Given the high debt of Rusal and oversupply in the aluminium sector, it is not attractive to investors based on fundamental analysis," said Steven Leung, director of institutional sales at UOB-Kay Hian. Rusal is controlled by the billionaire Oleg Deripaska. The company said in a statement that it intended to use the money raised from the listing to pay down its debt.

Copper price rise high

The price of copper has reached a 16- month high with strike action looming at two copper mines in Chile. Copper on the London Metal Exchange traded above $7 ,300 a tonne on Wednesday - its highest level since September 2008. Investors expect demand for the metal to be strong in the new year. There are also concerns that strike action at the two mines owned by Chile's Codelco - the world's largest copper producer - could affect supply. Expectations of higher demand will add to the long rally in copper prices seen in 2009 , analysts said. Copper is now on course for an annual rise of about 140 % - its biggest in more than 30 years. Strike fears Strike action at the giant Chuquicamata and Mina Sur mines in Chile is due to begin on 4 January, though analysts are not expecting prolonged disruption. Workers are calling for pay increases, prompted by the rise in global copper prices. The Chuquicamata mine alone produces around 4 % of the world's copper, according to RBC Capital Markets, and is expected to produce 565 , 000 tonnes of copper this year.

Chinese central bank chief think 2010 is the key

China's central bank governor has called 2010 a key year in China's fight to overcome the financial crisis. The head of the People's Bank of China, Zhou Xiaochuan, said in a message to employees that its credit policy next year would be a relaxed one. China is, in fact, one of the countries least affected by the global financial crisis, analysts point out. Its own economy grew by about 9 % last year, as many other key world economies were in recession. They are still expected to struggle to make growth, whereas China says it will grow by 8 % this year. That has been its target for some years - and one that it has consistently overshot. Rate rises The bank would also offer financial support to areas of the economy that promote the expansion of domestic demand, help the agricultural sector and help China move towards sustainable development, Mr Zhou said. Interest rate rises are a possible part of the Bank's strategy in 2010 , but possibly not until the second half of the year. The only major economy whose growth is forecast to come close to China's is India. The International Monetary Fund predicts it will grow by 6.4 %. The US is expected to expand by 1.5 %.

Former chief of HSBC honoured in UK

The former chief executive of HSBC Dyfrig John has received the only high profile honour for banking in the New Year Honours. Mr John, who retired in March, is appointed CBE for services to the financial services industry. Other business figures honoured include bra entrepreneur Michelle Mone and River Cafe restaurant founders Rose Gray and Ruth Rogers. The awards come at the end of another difficult year in the banking sector. Banks have spent much of 2009 slowly recovering from the global financial crisis that engulfed them in the autumn of 2008. Mr John's honour comes at the end of a 38- year career in banking which began when he joined Midland Bank in 1971 as a management trainee. He then went on to help modernise HSBC's branch network before taking on the chief executive role, spanning the UK and Europe. On his departure from HSBC in March, the bank's chairman Stephen Green described Mr John's contribution to the business as "immeasurable". In previous years several members of the banking elite have received honours for their services to the industry, including Sir Fred Goodwin, the former chief executive of Royal Bank of Scotland, and Sir Victor Blank, the former chairman of Lloyds. 'Incredibly overwhelming' Other business figures honoured this year include Michelle Mone, the designer of the Ultimo bra range, who becomes an OBE. After coming up with the unique bra design in the 1990 s, she went on to build her own business empire in women's underwear. Ms Mone said she was "absolutely thrilled, honoured and delighted" to receive the honour. "It's incredibly overwhelming and makes it all worth it," she said. Rose Gray and Ruth Rogers, who co-founded the Michelin-starred River Cafe restaurant in London, have also been honoured.

Bangladeshi Mutual Trust Bank will give green energy loan

Mutual Trust Bank Limited launched 'MTB green energy loan' at a ceremony at the corporate head office of the bank in Dhaka on Tuesday. MTB chairman Samson H Chowdhury handed over the first loan sanction letter to Resource Development Foundation executive director Golam Mostafa at the ceremony, said a news release. MTB founding chairman Syed Manzur Elahi, managing director and chief executive officer Anis A Khan, and SME banking head Mohammad Iqbal, among others, were also present on the occasion. Under the loan scheme, MTB will grant loans to the customers wishing to set up solar photovoltaic system for household and irrigation, solar PV assembly plants, bio-gas plants, effluent treatment plants or any other feasible renewable energy generation plants.

Nepal business to china

China pledged to bolster aid and trade to Nepal on Wednesday, state media said, one day after Nepal's prime minister said his government would not tolerate anti-China protests in the Himalayan nation. Beijing 'will provide necessary support and assistance to the Nepalese side in hydropower construction, infrastructure development, health, education, human resources development and other fields,' Xinhua news agency said. China also pledged tariff reductions and other assistance, the report said, citing a joint government statement issued during the ongoing visit of Nepalese prime minister Madhav Kumar Nepal. The Nepalese leader's visit to China is his first since he took office in May. The prime minister on Wednesday met with president Hu Jintao, the last of his major official meetings before heading home to Kathmandu. 'The Nepalese government... believes that Taiwan and Tibet are inalienable parts of the Chinese territory,' Nepal told prime minister Wen Jiabao Tuesday in comments reported on Chinese state television. Nepal 'will not allow any forces to use Nepalese territory to engage in anti-China activities', he said. The Himalayan nation is home to around 20, 000 exiled Tibetans, who began arriving in large numbers in 1959 after their spiritual leader the Dalai Lama fled Tibet following a failed uprising against the Chinese. In recent months the exiles say their lives have become increasingly difficult as Nepal— reportedly under heavy pressure from Beijing— has sought to restrict their activities. Nepalese authorities have arrested dozens of Tibetan exiles who tried to hold anti-China protests over the situation in Tibet.

Bangladeshi manpower export down

The number of Bangladeshi nationals going abroad with jobs has declined significantly in 2009 with the little signs the trend will reverse next year, according to sources in the sector. About 4.5 lakh people secured overseas jobs in 2009 compared to their number at 8.75 lakh in 2008 and 8.32 lakh in 2007, showed statistics available with the expatriates' welfare and overseas employment ministry. The fall in export of manpower may not affect immediately earning from remittances but it is likely to decelerate in medium and long terms unless new markets are opened and the old ones consolidated, said recruiting agents. The decline in manpower export has been attributed to the impact of global recession which slowed down job-creating activities in many countries that used to hire overseas migrant workers. Moreover, sources in the manpower sector blamed the government's diplomatic failure in persuading the Middle East countries to recruit Bangladeshi workers – both old and new – in large numbers. Foreign policy expert Akmal Hussain stressed the need for undertaking vigorous diplomatic efforts to promote the country's s economic interests by approaching the leaders of the countries of present and potential destinations of Bangladeshi workers. 'We have not seen meaningful initiatives during the present government in its Middle East diplomacy that could have brought us certain favour in terms of sending more Bangladeshi people with jobs,' said Hussain, a professor of International Relations at Dhaka University. A source in the Bangladesh Association of International Recruiting Agents said that the Awami League-led government should have used Jatiya Party chairman HM Ershad, its ally, as an emissary to convince the Middle East governments to look at Bangladesh positively. However, the overseas employment ministry hopes that Bangladeshi workers would be able to secure jobs in 'newly opened' markets such as Romania, Libya, Austria, Algeria, Azerbaijan, Botswana, Iraq, Angola and South Africa. The ministry, in its report-card prepared to mark the one-year of the government, listed some domestic steps to support overseas jobseekers, ease the recruitment process and also provide incentives to remittance earners. 'We expect the government to create opportunities for recruiting agents to serve the people. We can work for increasing the number of workers if there is scope for negotiating with overseas employers,' said Kazi Mohammad Mofizur Rahman, secretary general of the apex body of recruiting agents. He expressed the hope that the inflow of remittances might not be affected significantly because of resilience of Bangladeshi workers to adversities to retain jobs and send money in times of crisis. 'But what may be the cause for concern for us is the employment situation. Any slump in manpower export today will further worsen the unemployment problem in the country,' the BAIRA leader said. In 2009, another year of international financial crisis that affected development activities, including construction, Bangladesh is expected to receive about $10 billion, as against $9.5 billion earned from remittances in 2008. In its quarterly economic update, the Asian Development Bank pointed out that growth rate of remittances dropped significantly to 34.4 per cent during the July-November period of 2009 compared to 33.6 per cent during the corresponding period of 2008. 'The growth of remittances is expected to moderate further in the months ahead as the growth of new migrants slows,' the Manila- based financial institution forecasts.

Chinese farmers income record high

The average annual income of Chinese farmers hit a record 5,000 yuan ($732) this year as increased demand for migrant workers saw more money sent back to rural areas, state media reported Monday. The per capita net income of farmers rose more than six per cent in 2009 from a year ago, Xinhua news agency said, citing a statement issued by the central government's annual conference on rural policies. The increase was partly driven by a recovery in demand for migrant workers, the report said, as factories and construction companies started hiring again in response to improved economic conditions. Nearly 20 million migrant workers lost their jobs at the start of the year as factories closed or slashed production in response to plummeting export orders from key markets in Europe and the United States. But the government has said that 96 per cent of those people had found new jobs in the cities by September. China has about 225 million migrant workers, according to official figures. Higher incomes in rural areas created ' important conditions' for boosting domestic consumption, Xinhua said, as Beijing seeks ways to reduce its reliance on foreign exports to drive economic growth. In a sign of the growing importance of rural consumption to China's overall recovery, the government said earlier this month that it would continue to subsidise the cost of home appliances for farmers next year.

Fu-Wang Ceramic announce 10pc stock dividend

Fu-Wang Ceramic Industry Ltd held its extra ordinary general meeting and the 14th annual general meeting at the National Shooting Complex at Gulshan in Dhaka on Sunday. Fu-Wang Ceramic managing director Khaled N Kabir presided over the meetings, said a news release. Director Kaiful Wara and independent director Narayan Roy, along with a good number of shareholders, were present in the meetings. Company secretary Sanchita Karmaker conducted the meetings. In the EGM, the shareholders approved rights share at the rate of 1:2 (one right share for every two shares) at Tk 125 each (including premium Tk 25 each share) on paid up capital ( after consideration of 10 per cent stock dividend for the year 2008-2009) subject to approval of the Securities and Exchange Commission. In the AGM, shareholders of the company approved 10 per cent stock dividend and audited statements for the year 2008-2009.

Bangladesh overtaken India in apparel exports

Bangladesh has overtaken India in apparel exports this year as for the first nine months, its exports stood at $2.66 billion, ahead of India's $2.27 billion. In 2008, both the countries were at the same level [$10.9 billion] with each having three per cent of global apparel exports, the premier economic English daily 'Business Standard' in a front-paged story on Monday reported. It said India's export volume is down 80 per cent this year for two reasons: one, the global economic downturn and increasing competition from Bangladesh, Vietnam and Sri Lanka. During the downturn, buyers looked for cheaper deals and Indian exporters were unable to compete on costs due to rising raw material and power costs. The second reason: many domestic are setting up units and offices in Bangladesh to avail the benefits of duty-free access. Prominent among those who have set up units in that country are House of Pearl Fashion [two units] and Raymond [one unit]. 'Bangladesh has a cost edge of 9-29 per cent across various products. The country has duty- free access to European markets and labour is cheap. It is more profitable to export from Bangladesh, than from India.' the Business Standard quoted Sudhir Dhingra, managing director of Orient Craft Exports, as saying. Deepak Seth, chairman of the House of Pearl Fashions, said the company's units in Bangladesh had been operating 'efficiently and profitably'. The company would double its capacities for T- shirts and woven tops/bottoms in Dhaka in the next financial year. Seth said labour costs in Bangladesh were 50 per cent of that in India and there was no duty on imports to EU, Australia and Canada. 'The Bangladesh government's huge priority to the sector is another big draw.' House of Pearls has units in Indonesia and Vietnam as well. Orient Craft was planning a unit in Bangladesh a year ago but dropped the idea due to changed focus of business. 'There are no difficulties in setting up a unit in Bangladesh and we considered setting up a base there. However, we are focusing more on domestic markets now,' said Dhingra. Analysts and textile experts said it was not common for Indian companies to set up units in Bangladesh. 'There are distinct advantages of setting up units in Bangladesh but only a few big players have done it. Smaller players will not venture into setting up units in other countries,' Prakash Agarwal, vice-president of consulting firm Technopak told the newspaper. DK Nair, secretary general of the Confederation of Indian Textile Industry, said some of the Indian companies had set up garment manufacturing units in Bangladesh, but it didn't mean much.

Bangladeshi govt want to reduce lentil price

The government has decided to import lentils from neighbouring Nepal to stabilize its price in the local market, said sources. 'The government of Nepal has decided sell red lentil to Bangladesh,' said a senior official of the commerce ministry, adding that the price is yet to be negotiated. 'We expect that its price will be reduced by Tk 20 to Tk 25 per kg from the current level when the Nepalese lentil reaches the market,' he added. Good-quality red lentil, which cost Tk 120 even a month back, is now selling at Tk 135 per kg in the local market. Besides, the government has also planned to import of 13 lakh tonnes of soybean and 12,500 tonnes of sugar from Malaysia and Brazil. Sources said the government of Nepal agreed to sell 14,750 tonnes of red lentil to Bangladesh only after persuasion. Nepal and India have banned pulse export due to low production of the crop. However, commerce minister Faruk Khan, at the WTO ministerial meeting, had a fruitful discussion with his Nepalese counterpart. Khan sought to procure 30,000 tonnes of red lentil, but the Nepalese commerce minister agreed to supply only 14,750 tonnes of pulse to the Trading Corporation of Bangladesh. Of the total quantity of 14,750 tonnes of red lentil, the Nepal Trading Corporation will supply 5,000 tonnes and 9,750 tonnes will be supplied by a private company named Salt Trading Ltd. The consignment from Nepal will reach the country by mid-January, and the Trading Corporation of Bangladesh will sell the item through its distributors, said a source at the TCB. A three-member team will go to Kathmandu on 5 January, 2010 to hammer out the final agreement, and the price is expected to be much lower than local rates. The team will lead by the joint secretary to the commerce ministry, Mustafa Mohiuddin. Uttam Kumar Deb, additional director of the Centre for Policy Dialogue, told New Age that the country has produced enough lentil to satisfy only one-third of the local demand, so its import is necessary to reduce its price in the local market.

Bangladeshi sugar market will volatile again

Local sugar market has become volatile again with millers raising prices following the fresh round of increases in the prices of the essential sweetener in international market. Wholesale price of sugar increased by Tk 120 per maund or more than Tk 3 each kilogram in just one-and-a-half week. Retailers have also started responding to wholesale market as, up by at least Tk 4 per kilogram in a week, sugar sold between Tk 52 and 56 on Tuesday. 'Wholesale sugar price is rising almost everyday—we are experiencing fresh volatility in the market,' said Mohammed Ali, a wholesaler at Maulvibazar, the hub of commodity wholesales in the capital. At Maulvibazar on Tuesday ready stock sugar sold each maund (37.3 kilogram) for up to Tk 1, 840, up by Tk 40 in four days and Tk 120 in ten days. Market sources said fresh increase in sugar price in the international market had forced the refiners to raise prices and make a windfall profit. Five private sector refiners, who rely on imported raw-sugar, are movers and shakers of in local market as production in state-owned sugar mills cannot even meet one tenth of the demand. According to a London Commodity Exchange report, increased by $100 per tonne in three weeks, sugar price closed at $ 695 on Thursday when market went to Christmas and New Year holiday Some wholesalers at Maulvibazar in Dhaka and Khatunganj in Chittagong however say despite international prices increased much, prices would not go up this time so sharply, as had happened during Ramadan. Traders say about significant stocks of imported refined sugar, procured by some importers some weeks back, would help to keep the market stable. 'The local market could have also been worsened much if the winter would not keep sugar demand dull,' a wholesaler told New Age. Wholesalers also say that the market should remain comparatively stable as state-owned sugar mills are in operations only in the crushing season (November to May) 'Although their production is very small but a government stock makes a psychological impact on the market,' said one wholesaler. Bangladesh's annual sugar consumption is estimated at 1.2 million tonnes but 15 state- owned crushing mills' current crushing season target is 101,000 tonnes against 75,000 tonnes the previous season. According to the daily market report of the Trading Corporation of Bangladesh, sugar per kilogram was being retailed between Tk 31 and Tk 34 on December 28, last year. Bangladesh's import-dependent sugar market faced a volatility in the middle of this year following a production shortfall in India, and as a result of higher prices in the international market. Costlier by Tk 20 in a month, retail sugar price had hit Tk 66 per kilogram in mid-September, even after the government, in mid-August, had imposed zero tariff on raw-sugar import. Later a government investigation claimed that some wholesalers had instigated such sharp rises in a short period by hoarding and trading the delivery orders [DO] at unduly higher prices.

Japan Airlines shares hit new low

Shares in Japan Airlines tumbled as much as 11 % on Tuesday, touching a new low of 85 yen. The slide was prompted by media reports that the carrier could be forced to file for bankruptcy. Last week, Finance Minister Hirohisa Fujii said the state would not give the airline any more loans. Japan Airlines has rival offers from American Airlines and Delta to buy a stake in the firm. A bankruptcy filing would make a deal more complicated. "There's a lot of concern about what might happen if JAL does end up going through a bankruptcy court, what will happen to shareholders if the stock basically becomes worthless," said Nagayuki Yamagishi from Mitsubishi UFJ Securities. The Enterprise Turnaround Initiative Corp - a state-backed fund - was asked in October to help out the debt-laden Japan Airlines. A decision is due in January, but sources have told Reuters that it was considering a bankruptcy filing as part of the restructuring plan. Japan Airlines is battling 1.5 trillion yen of debt ( $16 bn; £10 bn). It has been bailed out by the government four times since 2001. Its shares have slumped nearly 60 % this year.

Russia signs Ukraine oil deal

Russia and Ukraine have reached a deal that will avoid disruption of oil supplies to the EU, according to Ukraine's state energy firm Naftogaz. Moscow had agreed to a 30 % increase in the transit tariff for oil piped to Europe through Ukraine, it said. There was no confirmation from Russia. Moscow had warned the dispute could threaten oil deliveries to EU states. Russian PM Vladimir Putin accused Kiev of abusing Russian oil transits but said he hoped a deal would be reached. "We are ready to deliver, we have a contract, but if any of the transit countries abuse, what can you do?" said Mr Putin. Nikolai Tokarev, head of Russian pipeline company Transneft, said on Monday that Ukraine had demanded higher payments for the transit of Russian oil, changing the terms of a 2004 contract and thereby raising the prospect of a year-end energy dispute. Russia said the dispute could cut supplies to the Czech Republic, Slovakia and Hungary. Last month Moscow said it had reached a deal which should prevent a repeat of the gas supply crises of recent years. It agreed to ease the terms under which it supplies gas to Ukraine after talks between Russian Prime Minister Vladimir Putin and Ukraine's Yulia Tymoshenko. Moscow said that deal should prevent disruption - last January, many countries in Europe were left short of gas due to a payment dispute between Moscow and Kiev. Russia provides about a quarter of the gas consumed in the EU and 80 % of that is piped through Ukraine.

China rail firm hit the stock

The Chinese rail firm, China CNR, has made a muted start to stock market trading, rising just 4 % on its first day of trade. That is the smallest first-day gain for a stock debut in China this year. CNR has raised $2 bn (£1.2 bn) to upgrade its technology from the share market listing. It is the fourth-biggest Chinese listing this year. A flood of firms have listed on the stock market in Shanghai this year since a ban was lifted in June. Local media reported that in December alone, 35 new share sales were expected. "The weak debut is actually good for the market as it sends a warning for future initial public offerings, forcing companies to think twice before they set sky-high prices," said Chen Huiqin, senior stock analyst at Huatai Securities in Nanjing. China has the world's fastest-growing railway market. CNR is one of the country's two biggest rail firms, competing with China South Locomotive to supply trains. Beijing has pledged to increase spending fourfold over the next five years to improve infrastructure.

South Korea will beg pardon to ex-sumsung chairman

The South Korean government has decided to pardon the powerful former chairman of Samsung, convicted for tax evasion, the justice ministry has said. Lee Kun-hee is to be pardoned so he can return to the International Olympics Committee and help South Korea's bid to host the 2018 Winter Olympics. Mr Lee was pardoned on a separate funding conviction in 1997. Presidential pardons are often granted to leaders of South Korea's large, family-owned businesses or "chaebols". Olympian task "This decision was made so that Lee could take back his place at the International Olympic Committee and form a better situation for the 2018 Olympics to take place in Pyongchang," justice minister Lee Kwi-nam told reporters, following a cabinet meeting that approved the latest pardon. South Korea's Yonhap news agency said the pardon raised questions about the rule of law in a country where family-run chaebols still wield a lot of power. Mr Lee, 67 , is widely regarded as the country's most prominent businessman. Trade lobby and sports groups had been urging the president to pardon him, Yonhap reported. South Korea has tried two times so far to host the Winter Olympics in the mountain resort of Pyongchang, and is bidding again, against Munich in Germany and Annecy in France. Samsung's Mr Lee stepped down from his chairmanship of South Korea's bid committee in April 2008 after alleged involvement in a deal to give his children a greater stake in the group's holding company. He was cleared of the charge but handed a suspended three-year jail term for tax evasion.

Oil price rising

Oil prices have climbed to more than $79 a barrel, reaching the highest levels for five weeks. During Monday's trading in London, US crude touched $79.12 a barrel before falling back later to $78.77. Heating oil futures led the gains, while London Brent crude rose by more than a dollar to $77.32 a barrel. Prices rose following forecasts of colder weather in the United States, and the expectation of increased consumption and falling reserves. That would indicate that demand was rising and signal an improvement in the US economy. The north-west of the US is also the world's largest heating oil market. On Thursday last week, benchmark crude rose $1.38 to settle at $78.05. Oil markets were closed on Friday for Christmas. Falling supplies? Inventory figures detailing the amount of oil held in stock are expected later this week from the Energy Information Administration. News of low stock levels could push oil prices above $80 a barrel by the end of the year, according to Clarence Chu, a trader with Hudson Capital Energy in Singapore. Better employment figures in the US last week also helped to lift hopes of economic recovery and raised expectations of stronger consumer spending and oil consumption.

Japan factory production rise

Japan's factory output rose for the ninth straight month in November, up 2.6 % from October, as the manufacturing sector continued to recover. The rise, which was higher than expected, came in response to growing overseas demand for Japanese goods. Japan's exports to the rest of Asia totalled 2.7 trillion yen ($30 bn) in November, 4.7 % up on October. It was the first rise in 14 months. But domestic demand remained weak, as consumer spending fell again. Retail sales were 1 % lower in November than a year earlier, the 15 th monthly fall in a row, as consumers continued to cut spending because of job market fears. Japan returned to economic growth in the second quarter of 2009 after spending a year in recession, but falling salaries have prompted renewed worries about deflation. Average wages declined by 2.8 % in November from a year earlier, marking their 18 th consecutive monthly fall.

Russia and Georgia flights are started

Russia has authorised the first direct flights from the Georgian capital Tbilisi since last year's conflict between the two countries. The move is the latest thaw in ties that had been frozen since fighting broke out in August 2008. But Georgian Airlines said the permit had come too late to organise flights for the New Year and the start of the Orthodox Christmas public holidays. Moscow said Tbilisi had taken too long to reply to requests for information. Russia's Foreign Ministry said Georgian Airlines would be able to operate charter flights into Moscow and St Petersburg on 29 and 30 December. It said it had taken the "humanitarian significance of this issue" into account, particularly the ability of people to visit relatives over the holiday period. Reuters quoted ministry spokesman Timur Khikmatov as saying they would be the first passenger flights since the war. Roads opened But Georgian Airlines said the flights would not resume until 6 January - Christmas Eve in both Russia and Georgia - as the permission had not arrived in time, meaning no flights would cover the peak travel period. "We will not have the time to organise flights tomorrow and the day after tomorrow," spokeswoman Nino Girgobiani told the AFP news agency. Moscow dismissed the airline's complaint, saying Georgia took five days to reply to a request for relevant technical details of the flights. "In this situation all the responsibility for failing an important humanitarian action rests with the Georgian authorities," said a Foreign Ministry statement reported by the Interfax news agency. Georgia said Moscow had not sent request through the right diplomatic channels. On Thursday, the countries announced that a key road crossing closed since 2006 was to be reopened. The Kazbegi-Upper Lars crossing, which officials said was likely to reopen next March, is the only crossing that does not go through the Russian- backed breakaway regions of Abkhazia and South Ossetia. Georgian forces were driven out of the two regions in the bitter war last year. Correspondents say the recent signs of improving relations between Georgia and Russia are significant, but that the hostility between the two countries remains strong. Most computers will open PDF documents automatically, but you may need to download Adobe Acrobat Reader.

At last South Korea win nuclear contract

A South Korean consortium has been awarded a contract worth some $40 bn (£25 bn) to build four nuclear power plants in the United Arab Emirates. The group, led by the Korea Electric Power Corp ( Kepco), beat bids from a US-Japanese group and a French firm. South Korean officials said the deal was the biggest single contract the country had ever won abroad. Though the world's third largest oil exporter, the UAE says only nuclear power can meet its energy demands. The nuclear reactors should all be in operation by 2020 , by which time demand for electricity in the UAE is expected to have more than doubled. The first is scheduled to begin supplying power in 2017. As well as Kepco, the winning consortium includes Samsung, Hyundai and Doosan Heavy Industries, as well as US firm Westinghouse and Japan's Toshiba. The South Korean president's office described the deal as "the largest mega-project in Korean history". It also represents that first time the country has exported a nuclear power plant, according to the Associated Press news agency. South Korea first introduced atomic power in 1978 and now has 20 nuclear reactors in operation.

Philips Electronics will close year net profit

Dutch Philips Electronics expects to close the year with a net profit, while revenue is expected to be down compared with last year, its chief executive told a Belgian newspaper on Saturday. 'This year revenue will probably drop to a lesser degree, but we will end the year with a net profit,' chief executive Gerard Kleisterlee was quoted as saying in Belgian newspaper De Tijd. Philips said earlier this month it expected sales at its consumer lifestyle unit to continue to improve quarter-on-quarter, expecting fourth- quarter sales at the unit of about 2.8 billion euros. The unit, which makes products ranging from MP3 players and digital photo frames to water kettles, toasters and shavers, is weathering the recession better than other units, Kleisterlee said. As a result the consumer electronics unit will remain the biggest contributor to the group's sales. 'With the acquisition of Italian espresso machine manufacturer Saeco, a significant portion of sales will be added. This year the balance will be slightly in the advantage of consumer lifestyle, we expect,' Kleisterlee said. Previously Philips had said its healthcare unit, which makes brain scan equipments for hospitals and provides services to help doctors to monitor patients remotely, would be the biggest unit in terms of sales.

Yen fall against dollar

The yen fell against the dollar over the past week, depressed by mounting expectations that the Japanese central bank will be slower than its US counterpart to raise interest rates, dealers said. The Japanese unit declined to 91.30 to the dollar in Tokyo on Friday from 89.84 to the dollar a week ago. There was no trading in New York on Friday for the Christmas holiday. The dollar benefited from growing speculation that the Federal Reserve will raise interest rates next year earlier than predicted, dealers said. Investors generally prefer currencies offering the prospect of higher yields. In contrast, Japan's central bank has raised expectations that it will keep its key lending rate at the current level of 0.1 per cent for some time yet, declaring last week that it 'does not tolerate' deflation. The unemployment rate rose to 5.2 per cent in November from 5.1 per cent in October, worsening for the first time in four months, the government said. But the report was in line with market expectations. Asian currencies were mostly lower against the greenback this week, with the US unit rising amid speculation the Federal Reserve will raise interest rates earlier next year than predicted.

China govt will support to produce renewable energy

China's national assembly Saturday signalled the country's commitment to reducing greenhouse gas emissions by adopting a law supporting its renewable energy industry. The new law, an amendment to one on renewable energy adopted by the National People's Congress standing committee, obliges electricity grid companies to buy all the power produced by renewable sources. It also empowers the State Council's energy department, the electricity regulatory agency and its finance departments to determine the amount of renewable energy available in the country's overall power generating capacity. Power companies will be obliged to take up all of that capacity, and those refusing to do so will be fined an amount up to double that of the economic loss of the renewable energy company, Ni Yuefeng, vice-president of the assembly's environmental affairs commission, told reporters. The law was adopted after China was criticised for obstructing the adoption of a treaty on climate change during last week's international summit in Copenhagen.

Badshah Abdullah satisfied with oil price

Saudi king Abdullah described oil prices as satisfactory in an interview published on Saturday, at a time when the largest OPEC producer is seeking price stability. "We predicted an oil price of 75 to 80 dollars per barrel at the beginning of the year, what we considered acceptable, and now it has reached this level," the king told the Kuwaiti newspaper Al-Siyassah. "(We expect) the price will stabilise or increase marginally," he added. King Abdullah also expressed confidence in the state of the Saudi economy, which he said had successfully managed to withstand the global financial crisis.

Asian currencies lower

Asian currencies were mostly lower against the greenback this week, with the US unit rising amid speculation the Federal Reserve will raise interest rates earlier next year than predicted. JAPANESE YEN: The Japanese unit declined to 91. 30 to the dollar in Tokyo on Friday from 89.84 to the dollar a week ago. There was no trading in New York on Friday for the Christmas holiday. AUSTRALIAN DOLLAR: The Aussie closed Thursday at 88.25 US cents, down slightly from 88.87 a week earlier, ahead of the Christmas holiday. CHINESE YUAN: The yuan closed at 6.8272 to the dollar Friday on the over-the counter market, compared with 6.8280 the week before. HONG KONG DOLLAR: The US-pegged Hong Kong unit ended the week flat at 7.756 from 7.757 the week before. INDONESIAN RUPIAH: The rupiah closed flat at 9 , 500 to the dollar. PHILIPPINE PESO: The Philippine peso traded higher at 46.510 to the dollar on December 23 , the last trading day for the week, compared to 46.650 on December 18. SINGAPORE DOLLAR: The Singapore dollar was at 1.4064 to the US dollar from 1.4004 the previous week. SOUTH KOREAN WON: The won closed at 1 , 175.00 won to the dollar on Thursday, its highest in more than a week, compared with 1 ,176.2 won on Friday the week before. TAIWAN DOLLAR: The Taiwan dollar rose 0.33 percent in the week to close at 32.274 against the US dollar from 32.380 a week earlier. THAI BAHT: The unit closed Friday at 33.33-35 baht to the dollar compared to last week's close of 33.20-21.

Japaness jobless rate rise

Japan's unemployment rate rose to 5.2 percent in November from 5.1 percent in October, worsening for the first time in four months, the government said Friday. The latest rate was in line with the average market forecast. Figures released by the labour ministry showed there were 45 job offers for every 100 jobseekers in November, slightly up from 44 in the previous month. Many Japanese companies, particularly exporters, moved swiftly to cut jobs and production in response to a slump in demand caused by the global economic downturn, which triggered Japan's worst post-war recession.

Toyota Motor increase its business

Japan's Toyota Motor plans to boost its global production in 2010 by 17 percent to about 7.5 million units, Japanese media reported Saturday. The output target -- which does not include Toyota group firms Daihatsu Motor and Hino Motors -- is still down about one million units from the peak year of 2007 and matches the level of 2005 , the business daily Nikkei said. But Toyota may raise its 2010 output further after taking into account the impact of the government's decision to extend subsidies for purchases of environmentally friendly vehicles by six months to September 2010 , the paper said. Following the global sales slump due to the financial crisis, Toyota early this year embarked on steep production cuts centred on its major markets -- Japan, the United States and Europe. But sales in major markets have recovered gradually and with demand picking up in China and other emerging markets, Toyota's global sales recorded their first year-on-year rise in 15 months in October.

South Korea will build world’s biggest nuclear po wer plant

South Korean president Lee Myung-bak visited the United Arab Emirates on Saturday in a push to win one of the world's biggest nuclear power plant contracts. The UAE is expected to award the contract estimated to be worth $40 billion to build several nuclear reactors 'possibly early next week,' industry sources have said. A South Korean consortium of Korea Electric Power Corp, Hyundai Engineering and Construction, Samsung C&T Corp, and Doosan Heavy Industries is in the running to win the largest-ever energy deal of the Middle East. Other bidders include a consortium of General Electric Co and Westinghouse Electric, a subsidiary of Toshiba Corp, and a French consortium led by EDF and GDF Suez and including Areva and oil group Total. Lee is scheduled to hold a summit meeting with UAE president Sheikh Khalifa bin Zayed al- Nahayan during his two-day visit, the South Korean presidential Blue House said in a statement. 'It remains unclear whether South Korea will win the final contract to build nuclear power plants and President Lee's visit to the UAE is part of summit diplomacy to win the final ticket in the bidding,' Lee's office said. The French consortium was initially seen as a front-runner for the deal but it recently appeared to be losing ground to the Korean. On the Korea Exchange earlier this week, shares of Korea Power Engineering and Doosan Heavy Industries rallied on expectations for the deal, analysts said. IBK Securities analyst Yoon Jin-il said the contract is expected to be split in three stages with the initial order to be worth about $5 billion, but the first-phase winner is likely to take home the remaining two. Work is expected to begin in 2012, UAE state news agency WAM said. The UAE is the world's third-largest oil exporter, but it is planning to build a number of nuclear reactors to meet an expected need for an additional 40,000 megawatts of power. South Korea's commerce and energy ministry said on Monday that it would focus on the nuclear power sector in 2010 and step up work on a plan to develop nuclear reactors with indigenous technology, as it outlined next year's policy objectives.

Emirates give a package offer

Emirates has offered exceptional value for money Dubai Shopping Festival packages this year. With prices starting from as little as $47 per person per night sharing a twin room on a three nights package, these exceptional value for money packages must begin and end within the validity of the offer, ie, January 28 to February 28, 2010, both days inclusive, said a news release. Guests can stay three nights for the price of two nights on meal plan booked and in multiples, ie, six nights for the price of four and nine nights for the price of six etc. The DSF has over the years grown phenomenally to become the biggest shopping extravaganza in the world, and DSF 2010 will be even bigger and better than ever before, the release said.

7 UP awared in Bangladesh

7 UP, a brand in the PepsiCo portfolio, has recently been awarded 'top soft drink in Bangladesh' award in the beverage category by Bangladesh Brand Forum. PepsiCo and Transcom Beverages with focus on brand 7 UP have managed to help 7 UP attain and sustain dominance in Bangladesh market, said a news release. Transcom Beverages chief executive officer GQ Chowdhury, PepsiCo International country manager Tejinder Khurana, Transcom Beverages general manager Khurshid Irfan Chowdhury, and Transcom Beverages market development manager Arif Hossain, were present at the award giving ceremony held in Dhaka.

Vietnam's team visit Pacific Pharmaceuticals

A high-powered team of the Drug Administration Authority of Vietnam led by Chu Dang Trung visited the state-of-the-art plant of Pacific Pharmaceuticals Ltd on Friday. During the visit they were 'very satisfied' to observe the facilities and production and quality control processes followed by the company and expressed their deep desire to import different life saving drugs to Vietnam from Pacific, said a news release. Pacific Pharma managing director KR Chowdhury, Khondaker Sagir Ahmed, Nurul Islam, Akib Hossain of Drug Administration Authority of Bangladesh were present along with the team.

Bangladesh govt don't give any credit facilities to polluting indu stries

In an initiative to protect environment and combat climate change, the government has decided to restrict credit facilities for polluting industries. 'No more credit facilities for the industries which will pollute environment,' Bangladesh Bank governor Atiur Rahman said while speaking at a seminar on climate change management for the central bank officials at Bangladesh Bank Training Academy in Dhaka on Saturday. The governor warned that action would be taken against those banks which would provide credit facilities to the industries responsible for environment pollution. Atiur Rahman said Bangladesh Bank had created a fund of Tk 200 crore to address the environmental issues and climate change. Every industry might have Tk 1 crore loan for setting up effluent treatment plant from the fund, he said. The central bank is ready to increase the size of the fund and give up-to Tk 5 crore if the industrialists agree, he said urging the schedule banks to come up with more credit facilities for environment friendly industries. Noted economist and members of Bangladesh Climate Change Trust Fund Dr Quazi Khaliquzzaman Ahmad also spoke in the seminar while executive director of the BBTA Debaki Kumar Saha was in the chair. The governor laid importance on dredging of rivers and canals to ensure water security of the people and boost country's agro- based economy. He urged the private banks to help the local dredging companies with necessary financial support for river dredging. He said the central bank had taken an initiative to create fund to help farmers produce organic fertiliser. Any people to take any such project with at least four cattle-heads might get credit from the fund, he said. Atiur Rahman said a coordinated policy should be put in place considering the affects of climate change and the country's economic development. He asked the bankers to make their best efforts to improve financial system to the challenges of climate change.

Saab deal

General Motors Co is pressing ahead with plans to shut down Saab as chances of a deal to sell the Swedish brand to Dutch sports car builder Spyker Cars remain remote, a person familiar with the planning said on Thursday. GM has not changed the plans it announced Friday to begin winding down Saab's operations in January and it has started discussions with other interested parties as part of that process, the person said. Spyker Chief Executive Victor Muller told Reuters on Thursday that his company was still in talks with the US automaker about an acquisition of Saab. He said earlier this week that a final outcome would not happen until next week. 'We are still in discussions,' Muller told Reuters in a text message. Separately, Dutch billionaire John de Mol said through his investment company Talpa that he was not involved in backing a possible purchase of Saab. 'Apparently there are parties that like to name someone such as De Mol to—unjustly— strengthen their position in the takeover battle,' Talpa said in a statement. The question of how Spyker would fund an acquisition of Saab is seen as the major hurdle to a deal before the month-end deadline set by GM Chairman and CEO Ed Whitacre for a decision on the fate of the 60-year-old car brand. A tentative deal to sell Saab to Swedish supercar maker Koenigsegg collapsed in late November in part because of problems with financing. De Mol is the second Dutch billionaire this week who denied an involvement in financing a Saab deal. Dutch newspaper De Telegraaf cited Dutch billionaire Marcel Boekhoorn as a backer earlier this week, but he denied his involvement. Swedish news website E24 said that board members at Saab had a short conference via telephone with GM representatives in the United States to discuss plans for the closure of Saab.

Japan will buy Mexican power plant

Japan's Mitsui and Tokyo Gas is buying five power stations in Mexico for more than $1.2 billion from Spain's Gas Natural, the two companies said Thursday. 'Gas Natural today (Thursday) signed an agreement with the companies Mitsui & Co and Tokyo Gas to sell some of its assets for electricity generation in Mexico,' Barcelona- based Gas Natural said in a statement. The transaction is expected to be completed next year, it said. The total value of the assets 'is around $1.225 billion,' Gas Natural said, adding that it would receive an additional $240 million from the two companies in the form of debt repayments. The assets include five gas-fired power stations and a pipeline company. The power plants included in the deal have a total generation capacity of 2,233 megawatts and were bought by Gas Natural in 2007 from France's EDF. They were then valued at $1.448 billion. Mitsui and Tokyo Gas said in a joint statement that the deal would boost Mitsui's worldwide generating capacity to 5,558 megawatts and make it 'one of the largest independent power producers in the Mexican power market.' As part of the transaction Mitsui will establish an asset management company in Mexico 'to expand its power business throughout the Americas' and manage the new electricity generations assets, the statement added.

Toyota Motors recalling 43000 in China

Japan's Toyota Motor Corp is recalling about 43, 000 cars in China due to a defect that may cause engine oil to leak, a company spokesman said Friday. The recall affects four models, the Lexus ES 350, the Lexus RX 350, the Highlander sports utility vehicle and the Previa minivan, said the spokesman, Yuta Kaga. It comes just months after Toyota announced its biggest ever recall in China, affecting about 6, 88,000 vehicles, due to a defect in the electric window system. Toyota's reputation for quality has been dented recently by a series of recalls or safety issues, including a fatal accident in California involving an accelerator pedal that jammed under the floor mat.

Venezuela's threat to car companies

Venezuela's President Hugo Chavez has told car companies they must share their technology with local businesses or leave the country. Mr Chavez gave the ultimatum to Toyota, Ford, General Motors and Fiat during a public address. If the demand isn't met, he said: "I invite you to pack up your belongings and leave. I'll bring in the Russians, the Belorusians, the Chinese." Venezuela has nationalised most of the oil, metal and coffee industries. Mr Chavez attacked Toyota in particular, saying it was not producing enough four-wheel drive vehicles, which are used for public transport, and ordered an investigation. So far, the carmakers have not responded. Last year, car plants in Venezuela produced 135 , 042 cars and trucks. Currency controls in Venezuela mean the industry is struggling to get enough money to import parts and pay off debts.

Iran will ban defaced banknotes

Iran's central bank has said defaced banknotes are to be made invalid, after the appearance of opposition slogans on money, local media report. They quote bank official Ebrahim Darvishi as saying that people possessing defaced banknotes should exchange them by 8 January. It was difficult to distinguish genuine defaced notes from fakes, he added. Messages in support of the opposition have been appearing on banknotes since June's disputed presidential election. Hardline President Mahmoud Ahmadinejad was re-elected in the poll - a move that triggered mass street protests by the opposition who claimed the election was rigged. 'Death to dictator' "Banknotes on which there are writings or are stamped or have any additional signs will be invalid," Iran's Jam-e Jam newspaper quoted Mr Darvishi as saying on Thursday. The bank official also called on the public and shop owners not accept such notes from 8 January. Since June's election, slogans such as "Death to the dictator" have appeared on many Iranian banknotes. Opposition supporters have also sprayed anti- government graffiti on walls in the capital Tehran and other cities. Many transactions are carried out in cash in Iran, which is under international banking sanctions and where major credit cards cannot be used.

Luxury car buyers not spending too much holiday

This holiday season, the luxury car buyer is offering a simple phrase: I'm not spending too much. Wealthier shoppers are trickling back into showrooms after staying away much of the year. But there's a catch. Many are pinching pennies, sort of, by choosing smaller BMW and Mercedes models, or they're buying top-of-the-line cars from cheaper brands. This year, almost 14 per cent of luxury buyers replaced old vehicles with brands other than traditional high-end names such as Audi, BMW, Cadillac, Infiniti, Jaguar, Lexus, Lincoln, Mercedes and Porsche. That's up from just 4 per cent in 2006 and a reminder that these buyers still don't feel as wealthy as they once did. Home values are still down and portfolios shrunken, despite the stock market's gains this year. Two potential beneficiaries of the shift are Buick and Hyundai, brands offering luxury models that are much cheaper than Beamers and Audis. Buick for years was known for cushy, boring sedans normally found outside grandma's house. The average Buick buyer is still about 70 years old, and the brand is desperately trying to attract younger drivers and reverse a sales slide, says Aaron Bragman, an auto industry analyst with Global Insight in Troy, Mich. After years of ho-hum styling, blase interiors and soft suspensions that made driving a chore, Buick's new LaCrosse luxury sedan is far sportier than its predecessor. It's got crisper handling and sleeker styling designed to appeal to people in their 40s and 50s. It also includes on-board hard drives and other electronic gizmos for younger drivers, all while costing $5,000 to $20,000 less than European and Japanese luxury competitors. At $27,000, Buick's German-designed LaCrosse performs as well as its more expensive competitors, yet has everything luxury buyers are seeking, Bragman says. That's important because luxury shoppers are picky, even when they economize. While many are now willing to give up a prestigious name or a bigger car, they still want cutting-edge styling along with reliability and safely. They demand tight handling and a quiet ride. The car must have excellent fit-and-finish inside and out and features such as heated leather seats and navigation systems. 'They may very well be downsizing in terms of the package. They're not downsizing in terms of the features they want,' says Art Spinella, president of CNW Marketing Research of Bandon, Ore. That's just what Craig Bierley, Buick's product marketing director, is thinking. And he says the brand is capitalizing on the trend. 'People are reconsidering the choices on the things they spend money on.' LaCrosse sales took off after a new version arrived in showrooms last summer. Sales rose 63 per cent last month. The new LaCrosse, Bierley says, has quadrupled the number of buyers it attracts from other luxury brands. In December, Buick dealers are reporting even more trade-ins of Lexus and Infiniti models, he says. Another winner is Hyundai's Genesis, which has received stellar reviews for its luxury and handling but can cost $15,000 to $25,000 less than higher-end cars. Joan Sher, a Fort Lauderdale, Fla., real estate agent, switched over last month when she gave up her Mercedes GL450 sport utility vehicle for a loaded-out Genesis. Replacing the Mercedes would have cost more than $60,000, so Sher opted for value and spent $44,000 on the Hyundai. 'It's more affordable but at the same time a very comfortable car,' she says. Even with a small resurgence for the holidays, luxury car sales are down 27 per cent so far this year. But November sales fell just 8 per cent, and dealers are reporting increased traffic this month. Those trends reflect revived confidence among consumers. In the third quarter, net worth — the value of assets such as homes, bank accounts and investments, minus debts like mortgages and credit cards — rose 5 per cent, to $53.4 trillion, the Federal Reserve says. It was the second straight quarterly increase. Personal incomes rose in November at the fastest pace in six months. Yet even with those gains, Americans' net worth remains far below the peak of $64.5 trillion reached before the recession. Buying a cheaper car brand is one way to save money. Another is trimming size. Rick Case, who owns a chain of dealerships including Acura and Audi in Georgia, Ohio and Florida, says many shoppers want smaller, less- flashy cars. At his Acura dealerships, the $30,000 TSX compact sedan became his top-seller this year, displacing the TL midsize at $35,000. The trend is not just at his dealerships: Nationally, sales of the compact soared 24 per cent in November, while the midsize plunged 35 per cent. The number of luxury buyers replacing their cars with smaller vehicles has tripled to 16.7 per cent in the past three years, according to data gathered by CNW. Larger Lexus, Mercedes and BMW models generally have taken big hits and many analysts predict the downsizing will continue as people try to keep costs down in an uncertain economy. CNW's Spinella disagrees with that assessment. CNW has tracked auto sales for 28 years. It says people downsized during every economic slump but returned to their old ways upon sustained recovery.

South Korea keen to shipbuilding in Bangladesh

South Korea is keen on investing in joint venture in Bangladesh's promising shipbuilding industry. The interest was expressed when a delegation from South Korea led by its ambassador to Bangladesh Suk-Bum Park visited Ananda Shipyard and Shipways Ltd at Meghnaghat of Sonargaon in Narayanganj district on Thursday. The delegation included resident trade representative Han-II Kim and senior manager of Koran Trade and Business Agency Dong- Hyun Kim, said an ASSL press release. Chairman of the ASSL Dr Abdullahel Bari explained various aspects and potentials of Bangladesh's shipbuilding industry. Dr Bari told the envoy that their export orders had exceeded $200 million.

Fire- retardant cables has been marketed

Micro Cables Ltd unveiled its new product -- fire- retardant cables -- in Dhaka on Wednesday, the company said in a statement. Commerce Minister Faruk Khan was present at the launch of the product as chief guest. BKMEA President Fazlul Hoque, REHAB President Tanveerul Haque Probal and Trust Bank Managing Director M Shah Alam Sarwar, were also present. "Fire-retardant cables will reduce the consequences of fire accidents and are getting popular around the world," said Khan. The company has adopted an SMS-based system to support consumers who are often confused by counterfeit cables. In his speech, Hoque said: "All industrial entrepreneurs will consider using these cables for their own interest." Micro Cables Chairman Chaudhury A Shoaib and Managing Director SA Jalil were also present at the launch of the product.

United Airways bought a new aircraft

United Airways added a new MD-83 aircraft to its fleet yesterday to expand its international network. The new MD-83 aircraft will be primarily used on the carrier's upcoming routes between Dhaka- London, Dhaka-Dubai, Dhaka-Kuala Lumpur, Dhaka-Kathmandu and Dhaka-Bangkok. "The MD-83 aircraft has been purchased from Romania and this new addition has increased the fleet strength of United Airways to four. We are trying to face challenges of recession," said Tasbirul Ahmed Choudhury, chairman and managing director of the airways. "Many airlines have succumbed to the challenge, but we definitely want to survive and increase our fleet as this is the right time to procure desired aircraft." The carrier plans to expand its fleet by adding Boeing 767-300 ER by next year to fly to Jeddah and other Gulf destinations.

Pharmaceuticals production down in Singapore

A sharp drop in pharmaceuticals production pulled down Singapore's manufacturing sector as overall output shrank 8.2 percent in November from a year ago, government data showed Thursday. On a seasonally adjusted month-on-month basis, the sector's output fell 3.6 percent, the Economic Development Board (EDB) said in its monthly report. Excluding the biomedicals industry, which includes pharmaceuticals, manufacturing output actually increased 7.4 percent from a year ago, the EDB said. Analysts polled by Dow Jones Newswires were expecting an average 3.3 percent rise in output from the manufacturing sector, a key pillar of Singapore's trade-oriented economy.

Indian airline market rising fastest

India's airline passenger market could emerge as the world's fastest growing, an aviation consultancy said Thursday, as it forecast the nation's private carriers would return to profit next year. "India could be the strongest growth market in terms of passenger numbers globally for the next 10 to 15 years," Kapil Kaul, India chief of the Singapore-based Centre for Asia-Pacific Aviation, told AFP. His comments came as the Singapore-based consultancy said in a report India's private airlines should return to profit in the next financial year after bruising losses. With India's economy rebounding, private carriers are expected to post a total profit of 250 million dollars to 300 million dollars in the fiscal year which starts in April, the report said. "After a turbulent couple of years, 2010 should be a more positive year for Indian aviation, provided that the airlines can remain disciplined on costs, capacity and pricing," the consultancy said. "Now we are entering the profitable phase," Kaul said. The private carriers include Jet Airways, SpiceJet, Kingfisher and Indigo, part of a clutch of new airlines which took flight earlier in the decade after India liberalised the sector.

RAK Ceramics take part IPO book building method

RAK Ceramics, a Bangladesh-UAE joint venture, is going to be the first to offer primary shares using the book building method, a modern pricing mechanism for initial public offering (IPO). The Securities and Exchange Commission, the market regulator, gave the green light to RAK at a meeting on Wednesday, officials said. The tiles and sanitary-ware maker will float three crore ordinary shares worth Tk 10 each in face value under the book-building method. An indicative price for each RAK share has already been built at Tk 40 through bidding by seven institutions from four sectors. Now in the price discovery phase, bidders cannot quote 20 percent more or less than the indicative price, meaning they will have to offer between Tk 32 and Tk 48 for each share. Fixing the indicative price is required to obtain regulatory approval. Prime Bank, Southeast Bank and IFIC Bank joined the indicative price bidding from the banking sector. Prime Finance and LankaBangla Finance participated in it as non-bank financial institutions, Mercantile Insurance as an insurance sector company and Royal Green Securities as a brokerage house. "We will start work for price discovery after receiving written approval from SEC. We hope to complete the work by January," Arif Khan, chief executive officer and managing director (current charge) of IDLC Finance, told The Daily Star. IDLC Finance is the lead issue manager of the RAK Ceramic IPO, while BRAC-EPL is the co-issue manager. The institutions will not be allowed to sell shares in the first 15 trading days under the lock-in system. RAK's paid-up capital is Tk 195 crore. As of June 30 , the company's net asset value was Tk 18 a share and earnings per share were Tk 1.99. Foreign entrepreneurs own 90 percent of the company, while local entrepreneurs own the remainder, but local ownership will become 20 percent after the IPO. RAK started business in Bangladesh in 2001. Presently, the company holds around 80 percent market share in the sanitary-ware market and around 35 percent in the ceramics market.

Ford agreed to Volvo sale

Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China's Geely. Ford said "some work still remains to be completed" but the deal will be finalised early next year ahead of completion soon after Easter. Ford put Volvo up for sale a year ago to help pay off its debt and make its business more focused. Geely was named preferred bidder in November. If completed, it will be the largest purchase by a Chinese car firm. ANALYSIS Emily Young, Business reporter, BBC News Agreement has been reached at last. Volvo will almost certainly be sold to Geely. The question for Volvo is whether its new Chinese owner will do more for the marque than Ford did. On one level, the decade-long US-Swedish partnership can be seen as a successful. They benefited from each other's technology and expertise. But although many new models have been introduced in recent years, Volvo sales have not increased much. That may change under Geely, which will market Volvo in the fast-growing Chinese market. Ford said that while the "substantive commercial terms" had been settled, financing still needed to be completed and government approval was also necessary. The update on the sale is necessary for Geely to apply for government approval of the deal and with it, it is thought, the firm's financial backing. No details were given of how much the deal is worth, but it is widely rumoured that Geely will pay Ford $2 bn (£1.2 bn; 1.4 bn euros), less than a third of the $6.45 bn Ford paid for Volvo in 1999. Ford said it expects to continue co-operating with Volvo Cars, but did not intend to retain a shareholding in the business after the sale. Benefits for all Industry observers say the sale is good news for Volvo. VOLVO First Volvo made in 1927 Bought by Ford in 1999 Employs 20 ,000 worldwide In 2008 sales fell 18.3 % to 374 ,297
"In theory, the Chinese market could be an opportunity for Volvo," Nomura's auto specialist Michael Tyndall said. "It's a well-known brand, has a good heritage and a range of products that should appeal to the Chinese consumer." Equally, the deal should help Geely get into the Western market. It is thought that the main sticking point in the talks between Ford and Geely had been disagreement about how to deal with intellectual property rights - setting the parameters of Geely's use of Volvo's technology, such as its famous safety equipment, and the extent and cost of using any technology needed from Ford's research. Moving to China Professor David Bailey from the Coventry Business School said that he expects much of the Volvo production to be moved to China, which recently overtook the US to become the world's largest market for cars. GEELY Founded in 1986 Started as refrigerator parts supplier Employs 12 ,000 Production capacity of 300 ,000 cars a year "I would expect development and research to remain in Sweden, and maybe some production, but the big scale production will probably come from China," he said. "In the long run the question is whether they can continue to develop Volvo's safety profile and advanced engineering technology" he added. Geely said that Volvo would continue to lead the trend of world auto technology in safety and environmental protection. "It will quickly increase its unique competitive status in the Chinese market," the firm added.

Indian visa & some complain

India has tightened rules for long-term tourist visas, barring visitors from returning within two months of leaving. Under previous rules, tourists on long-term visas had to leave the country every 180 days. Many simply paid brief visits to neighbouring countries. Some countries have protested against the new rules, with the US saying they are being applied inconsistently. India's move follows the arrest in the US of a man charged in connection with the 2008 Mumbai (Bombay) attacks. David Headley, a Pakistani American, is said to have travelled to India several times last year to help identify targets for the attacks, which left more than 170 people dead. 'Gaps' India's new regulations effectively also make it much harder for people to use long-term tourists visas to work in the country. " Prior guidance and procedures that allowed re- entry to India after stays of up to 180 days are no longer in effect " US embassy in Delhi The government has yet to formally announce or provide details of the new rules, but Home Minister P Chidambaram set out the case for tightening regulations on Tuesday. "The gaps in the visa system have been exposed in a number of cases, the most notable among them being the case of David Headley. The compelling need to create a fool-proof system cannot be overstated," he said. In a posting on its website, the US embassy in Delhi said the "new visa and registration regulations are being implemented inconsistently". "Travellers have reported being denied re-entry after exiting India for business or family emergencies, or for tourist travel to nearby countries, even if their initial visit to India was for only a few days," the statement said. "The US mission has received confirmation that foreign passports are now stamped on exit to indicate that the bearer cannot re-enter India within two months of exit unless special permission is obtained from an Indian embassy, consulate, or high commission abroad, regardless of the validity of visa or length of stay in India." On Tuesday, visiting British Business Secretary Lord Mandelson raised the issue with Mr Chidambaram. "I can understand the motive for the new visa arrangements but we have to be careful not to make, create general restrictions," Lord Mandelson was quoted as saying by the Press Trust of India news agency. "I think, for many tourists, a two-month gap is too big." A spokeswoman at the British High Commission in Delhi said: "There is no real clarity over the details of the proposals or how they might be implemented. We understand that the Indian government is reconsidering its plans."

Fiat takes over a serbian factory

Fiat has signed a deal to take over the Zastava car factory in Serbia. Fiat, which now owns more than 67 % of Zastava through the deal, plans to make up to 200 ,000 cars there per year. The carmaker has made an initial investment of 100 m euros (£90 m;$143) and is expected to pay another 100 m euros next year. At the signing of the deal, Serbia's economy minister Mladjan Dinkic said production of two new Fiat models would be launched at the factory in 2011. It is understood that these cars will be for export to Europe and the US. The deal is part of a 700 m-euro agreement signed by Fiat and the Serbian government last year. Zastava is best known as the maker of the Yugo car.

UK firms cuts party

The office Christmas party, with its promise of free alcohol, flirting and a chance to see colleagues let rip on the dancefloor, has long been an annual highlight for many British workers. But a deep recession and widespread lay-offs have taken a bite out of budgets and caused managers to downsize or cancel the festivities altogether. A business survey this week estimated that Christmas party spending is down from about one billion pounds in 2007 — the year before the recession hit—to 600 million pounds (965 million dollars, 675 million euros) this year. Banks are among those most likely to scrap the champagne, thanks as much to debts incurred during the credit crunch as a fear of exacerbating the public perception that they are living the high life while ordinary people struggle. Royal Bank of Scotland last year kicked up a media storm after spending a reported one million pounds (1.1 million euros, 1.6 million dollars) on their Christmas parties, with another 300,000 pounds to treat its top executives. RBS is now 70-per cent owned by the taxpayer after its huge exposure to risky assets forced a massive government bail out. It was following a long tradition of big spending at Christmas, but this year managers have taken a more diplomatic approach, with the mass get-together scrapped in favour of events organised by individual teams of workers. The firm will still make a contribution but it will be small, a spokeswoman said, telling AFP: ' Our staff have worked very hard over the last 12 months. 'We won't waste bank money but the longstanding tradition of paying a small contribution towards staff parties has been judged appropriate.' In the same vein, Lloyds TSB, another bank which has spared no expense in the past for its Christmas parties, has toned things down this year.

Microsoft word selling banned by court

A US court of appeals barred Microsoft on Tuesday from selling certain versions of its popular Word program and ordered it to pay $290 million in a patent dispute with a Canadian company. The US court of appeals for the federal circuit upheld a jury verdict and lower court ruling in the patent case filed against the US software giant by Toronto-based i4i Inc nearly three years ago. 'This ruling is clear and convincing evidence that our case was just and right, and that Microsoft wilfully infringed our patent,' i4i founder Michel Vulpe said in a statement. 'This is what we've been looking for since March 2007,' added i4i chairman Loudon Owen. 'We are vindicated and we're appreciative but we're not surprised because we believed from the outset that we had a great case and that the trial judge made the right decision,' Owen told AFP. A US district court judge in Texas on August 12 upheld both a jury ruling that Microsoft's Word program violates an XML patent held by i4i and the award of more than $290 million in damages and interest. The judge also issued an injunction that would ban Microsoft from selling versions of its word processing program Word that infringe on the patented technology, which Microsoft dismissed on Tuesday as a 'little-used feature.' The Redmond, Washington-based Microsoft appealed but the three-judge court of appeals for the federal circuit ruled against the software powerhouse. Microsoft indicated Tuesday it may file further appeals and said in a statement it was 'moving quickly' to comply with the injunction on selling certain Word products, which takes effect on January 11, 2010. Microsoft stressed that the injunction only refers to US sales of versions of Microsoft Word 2007 and Microsoft Office 2007 and said it has already 'put the wheels in motion to remove this little-used feature from these products.' 'Therefore, we expect to have copies of Microsoft Word 2007 and Office 2007, with this feature removed, available for US sale and distribution by the injunction date,' Microsoft said. 'Beta versions of Microsoft Word 2010 and Microsoft Office 2010, which are available now for downloading, do not contain the technology covered by the injunction,' Microsoft added.

US home sales rise

Sales of US existing homes surged 7.4 percent in November to the highest level since February 2007 , as buyers rushed to take advantage of tax credits, industry figures showed Tuesday. The National Association of Realtors said sales rose to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October. This is 44.1 percent higher than the depressed levels of November 2008 and best since February 2007. The group said buying was sparked by a rush of first-time buyers to close sales before the original November 30 deadline government tax credits. Congress later voted to extend the credit and expand it to include other home purchases as well. "This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead," said NAR chief economist Lawrence Yun. "We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. "

Ethiopian's invite Bangladeshi RMG maker

Bangladeshi entrepreneurs with good reputation in readymade garment (RMG) sector can explore Ethiopian market, said a business delegation from the northeastern African country at a discussion in Dhaka yesterday. A seven-member team led by President of Ethiopian Chamber of Commerce and Sectoral Association Eyessus W Zafu came to Bangladesh on a five-day visit to attend public-private dialogues organised by International Finance Corporation in Bogra and Rajshahi. The country has a good reputation in the RMG sector and can look for business opportunities in Ethiopian textile market, said Zafu. "Bangladesh can take the advantage of duty- and quota-free access to American and European markets through African Growth and Opportunity Act," he said. Bangladesh can also enter the Common Market for Eastern Southern Africa, which is comprised of 22 countries, Zafu added. The IFC initiated the public-private dialogues nine months ago in Barisal, Sylhet, Rajshahi and Bogra to identify the local problems in business and economic development, and find solutions. The aim of the dialogues is to create a vibrant private sector business climate, ensure the growth of small and medium enterprises and generate employments, said Laura Watson, programme manager of Bangladesh Investment Climate Fund, which is managed by IFC. "We have learned something from the dialogues and will use those in Ethiopia," said Zafu. "We noticed a high-level awareness among the participants and the commitment they showed was inspiring." The Ethiopian team will sign a memorandum of understanding with Dhaka Chamber of Commerce and Industry to strengthen business cooperation. The delegation will leave Dhaka tomorrow.

Bangladesh govt may reconsider in IPO restriction

The government is likely to reconsider its decision that new companies -- willing to float IPO -- will have to offer shares equivalent to 40 percent of their paid-up capital. After a meeting with a Chittagong Stock Exchange delegation at his office yesterday, Finance Minister AMA Muhith told reporters that the finance ministry would consider the proposals of bourses in the interest of the market, BSS reports. The finance ministry at a meeting on November 5 took a series of decisions tightening capital market rules. CSE delegates told the minister that the ministry's decisions, if implemented, would hinder the market growth. The decisions include allowing IPO floatation by new companies that will offer shares equivalent to 40 percent of paid-up capital. Another move was to ban the direct listing of private companies. The CSE delegation, led by its President Fakhor Uddin Ali Ahmad, told the minister that the restrictions on IPO would discourage many companies with high paid-up capital to come to market. According to a CSE proposal, the minimum requirement for IPO flotation can be fixed at 25 percent -- instead of 40 percent -- for the companies with Tk 500 crore in paid-up capital. For those with more than Tk 500 crore in paid-up capital, the IPO size can be 15 percent of paid-up capital, the CSE proposed.

Pizza Hut BD introduce new menu

Pizza Hut unveiled its new range of pastas and sauces on Tuesday. Transcom Foods Ltd, franchisee of Pizza Hut, will now serve popular pastas like penne, fusilli, spaghetti and macaroni, together with four new sauces -- tomato based arabiatta, creamy spinach, mushroom sauce and bolognaise. "The new range of pastas and sauces is part of our enhanced dine-in experience, which aims to provide the best casual dining atmosphere while enjoying a wide range of delicious foods," said Akku Chowdhury, executive director of Transcom Foods. With an array of pastas and sauces to choose from, customers are free to create their "own sensation". Pizza Hut, with six years of operations in Bangladesh, managed to serve six lakh customers with 5 ,500 daily walk-in customers.

Fiat will make 1m car

Fiat has unveiled plans to increase annual car production in Italy to one million over the next three years. But it will still go ahead with plans to shut down the smallest of its five Italian factories based in Sicily. The announcements were made by Fiat chief executive Sergio Marchionne after a meeting with government and union officials in Rome. Fiat also said it would spend 8 bn euros (£7 bn; £$11 bn) in investments and research over the next two years. Two-thirds of that investment will be in Italy. Increased production The Turin-based carmaker produced nearly 650 , 000 vehicles in the country in 2009 , and the Italian government has been urging Fiat to increase production. Mr Marchionne said that within a company restructuring plan a Fiat factory in Turin would produce two Chrysler models by 2012. The Fiat chief has been running Chrysler since June. He also hinted that the production of the Fiat Panda could be transferred to its Pomigliano factory in Southern Italy. But he confirmed that the unit in Sicily's Termini Imerese would shut down at the end of 2011. Mr Marchionne said cars coming out of the plant cost up to 1 ,000 euros more than those from other factories due to the lack of infrastructure in the area. A demonstration by workers took place outside the meeting.

EU extend chinese shoe tariffs

The European Union has voted to extend tariffs on shoes from China and Vietnam in order to help European producers compete with cheaper imports. The tariffs, which were first introduced in 2006 , will last for a further 15 months. A number of countries in the EU were opposed to the extension. China is involved in a number of trade disputes, and on Monday lost an appeal to the World Trade Organization regarding US film and music imports. The organisation ruled in August that China's policy of allowing the goods to be imported only by state-run firms broke global trade rules. The tariffs on Chinese shoes will remain at 16. 5 %, and those on Vietnamese shoes will remain at 10 %. 'Inflated prices' The decision to extend the tariffs was not unanimous. UK Business Secretary Lord Mandelson said: "I am disappointed the EU has decided to extend these duties - they should have been allowed to end as originally agreed. "A small majority of member states did not oppose the measures even though they are no longer justified." He said that maintaining the duties "damages trade, harms the reputation of Europe and forces consumers to pay higher prices at a time when they can least afford it". He also called on the EU to "turn its back on protectionism". While the extension will benefit EU shoemakers, it has also proved unpopular among some retail groups in Europe. "This will be a signal to failing companies around Europe that the Commission will step in and protect them from foreign competition," said the British Retail Consortium. "Consumers will have to keep paying inflated footwear prices."

Dollar rise yen down

The dollar rose against the yen in Asian trade on Tuesday, supported by mounting expectations that the US central bank will be quicker than its Japanese counterpart to raise interest rates, dealers said. The dollar climbed to 91.35 yen in Tokyo afternoon trade from 91.15 in New York late Monday. The euro gained to 1.4288 dollars from 1.4281 and to 130.55 yen from 130.17. The dollar benefited from growing speculation that the Federal Reserve will raise interest rates next year earlier than predicted, dealers said. Investors generally prefer currencies offering the prospect of higher yields. In contrast, Japan's central bank has raised expectations that it will keep its key lending rate at the current level of 0.1 per cent for some time yet, declaring last week that it 'does not tolerate' deflation. But some analysts were sceptical about whether the dollar's rally would continue for much longer. 'We expect the dollar's recovery to stall any time now and anticipate another bout of weakness in the first quarter' of 2010, Dariusz Kowalczyk, chief investment strategist at SJS Markets in Hong Kong, wrote in a note. Investors were keeping an eye on final estimates of US and British gross domestic product for the third quarter due out later in the day.

Malaysia Airlines will buy 25 Airbus

National carrier Malaysia Airlines announced on Tuesday it will buy up to 25 A330-300s wide- body aircraft worth five billion dollars in a bid to serve its growing markets. The airline has signed a memorandum of understanding with Airbus for a firm order of 15 aircraft with options for a further 10, that will be funded via a rights issue planned to raise 2.67 billion ringgit (776.7 million dollars). The aircraft, to be delivered from 2011 to 2016, will serve its growing markets of South Asia, China, North Asia, Australia and Middle East. 'The purchase for the A330-300s will lower our fuel cost and reduce our engineering cost,' Malaysia Airlines managing director Tengku Azmil Zahruddin told reporters. 'It can carry more payload and has a longer range compared to our Boeing 777, which we are using now. (The new fleet) will give us a lower cost and enhance our revenue,' he said. The carrier said it expects to make annual savings of 300 million ringgit (87.3 million dollar) after the first 15 aircraft are received. According to Tengku Azmil, the A380 will serve key long haul destinations such as London and Sydney, the A330 for medium haul markets while the B737-800 will be used to strengthen the carrier's domestic and regional routes. Airbus senior vice president Thomas Friedberger said Malaysia Airlines will benefit from the more fuel-efficient aircraft with lower operating costs. On the fund raising, Tengku Azmil said it was ' timely' to do so as the capital market conditions are improving. The rights shares, to be priced at 1.60 ringgit each, will be offered on an one-for- one basis. 'We expect the listing of the rights issue to be in early March 2010,' he said. 'We are investing in the future. We are looking for funding for the replacement of our fleet. This is the best time to order the new aircraft as we are anticipating recovery,' he added. Analyst Khairi Mirza expressed optimism that the rights issue will be well-received. 'It will be well taken up. Airlines perform in a peculiar way. When the economy rebounds, the airlines will outperform the economy,' the analyst with Maybank Investment Bank told AFP. Malaysia Airlines' plan to woo investors comes as the aviation industry is facing a turbulent year with yields remaining under pressure. The carrier fell back into the red in the third quarter, blaming losses on its fuel-hedging positions. In the three months to September, the airline posted a net loss of 299.6 million ringgit com- pared with a net profit of 38.1 million ringgit a year earlier. Tengku Azmil also said Airbus will pay 'in excess of 330 million ringgit' for the delay in the delivery of the carrier's first A380 superjumbo aircraft by eight months to August 2011 instead of January 2011. Six of the aircraft were initially supposed to be delivered from January 2007.

Bangladeshi central bank fixed the service charges

Bangladesh Bank has fixed the rate of fees, charged by commercial banks to their clients for different services. In a circular on Tuesday, the central bank fixed fees of about 20 types of services, including letters of credit and saving deposits to protect the interest of depositors and investors. This is for the first time the central bank intervened into the matter as the service charges of 40 commercial banks of the country varied widely. In some cases, importers, exporters, depositors and remittance senders are forced to pay additional and higher than usual charges. Business bodies have long been demanding for rationalisation of charges. According to the central bank circular, the fixed charges will come into force from January 1 next year. The commercial banks are advised to acknowledge the central bank about their rates of service charges half yearly. They are also asked to post rate of service charges on the banks' websites. Following are rate of charges: Current account half yearly charge- Tk 500, Saving account half yearly charge-Tk 300, Balance certificate-Tk 200, Current account closer fees-Tk 300, Saving account closer fees-Tk 200, Three-month commission for opening of Site LCs- 0.40 per cent, Three-month commission for deferred LCs- 0.50 per cent, Three-month commission for 100 per cent cash LCs-0.25 per cent, There-month commission for back-to-back LCs-0.40 per cent. LCs advising, amendment and transfer charge Tk 750, Three-month commission for LCs acceptance 0.40 per cent, LCs confirmation charge-0.20 per cent, Export bill negotiation fees and export bill collection fees-0.15 per cent, Issuance of certificates for back-to-back LCs, CNF and export bills- Tk 500, BO account certificate.

Beijing city pass 4m cars

Mao Chunchun and her husband stand in the sprawling Yayuncun Auto Market on the outskirts of Beijing eyeing Hyundai sports utility vehicles on offer for as much as 250 ,000 yuan (36 ,600 dollars). The couple are hunting for their third car just as Beijing traffic hits a new milestone with four million registered vehicles, according to state media. The spiralling number of cars on the roads of China's sprawling capital are a sign both of the increasing affluence of the city's middle class -- and the challenge the government faces in terms of reducing toxic air pollution. "I am going to sell (one of my cars) and buy a new one," Mao, 26 , told AFP. "I can't own too many at the same time. Isn't it bad for the environment?" The number of registered vehicles in Beijing -- well known for its traffic jams and poor air quality -- topped four million this week, state Xinhua news agency reported late Friday, citing the municipal government. The four million mark means a quarter of the 16 million permanent residents in the city has a car. As a taxi driver for the past five years, Qiu Haitao is used to being stuck in traffic and doing battle with novice drivers. "From Monday to Friday it is like this," Qiu told AFP, pointing at dozens of cars blocking a major intersection. "There are more cars on the road and at the same time new drivers are increasing so there are more minor accidents." And the congestion will only get worse, with around 2 ,000 new cars sold daily in the increasingly wealthy city. "Compared with other metropolises in the world, the growth in the number of vehicles in Beijing is dramatic," Guo Jifu, researcher with the Beijing Municipal Communication Research Centre, told Xinhua news agency. It took Beijing 48 years for the number of vehicles on its streets to increase from 2 ,300 in 1949 to the first one million in 1997. It took six and a half years to register the second million, Xinhua said, and the pace of growth has continued to accelerate. Greenpeace China said the government needed to "urgently develop a comprehensive vision for a sustainable transportation future". "Cars are a dominant cause of the severe air pollution and traffic congestion in Beijing and other major cities in China," said Liu Shuang, the group's climate and energy campaigner. Last year, government vehicles and all private automobiles were banned from Beijing's roads for one day each week, depending on their licence plate number, in measures aimed at easing congestion and curbing emissions. But some drivers complain that the restrictions have only exacerbated the problem by encouraging people to buy another car. "Many rich people are buying a second car because of the rule," one unnamed driver told state media last week. "It is just very inconvenient not to drive on certain days of the week." Beijing's air is among the most polluted in the world, and the problem is getting worse amid high demand for private vehicles from its increasingly affluent residents, who shun taking the underground rail and buses. "It is more convenient than public transport and I can take my family for excursions," said Mao, who has two children. China's total car sales outstripped those of the United States for the first time in January to make the Asian giant the world's biggest auto market, helped by government efforts to stimulate domestic consumption. While people living in Beijing's outer suburbs with limited public transport need a car, many others buy a vehicle simply to show off to their friends, said Qiu. "Owning a car is a symbol of your social status," he said. "I like cars. If I had the money I would buy one."

Bangladeshi Jet Airways introduces direct flight to Dubai

Jet Airways introduces new flights to connect Dhaka to Mumbai from today, the Indian airline said in a statement. The new direct flights to Mumbai will initially operate six days a week, with no flights on Tuesdays. It will run daily flights from March 29. The airline currently flies daily from Dhaka to Delhi and Kolkata. Nikos Kardassis, acting chief executive officer of Jet Airways, said: "The launch of our new Mumbai-Dhaka service will connect Dhaka to the world, via Mumbai, and further enhance air connectivity on the busy India-Bangladesh route. " Jet Airways currently operates a fleet of 88 aircraft, which includes 10 Boeing 777-300 ER aircraft, 12 Airbus A 330-200 s, 52 next generation Boeing 737-700 /800 /900 aircraft and 14 modern ATR 72-500 turboprop aircraft.

Spice mobile brings 4 handset in Bangladesh

True Distributions Ltd introduced a series of Spice mobile handsets in Dhaka yesterday, looking to grab a share of the vibrant cellphone market. Kunal Ahooja, chief executive officer of Spice Mobiles Ltd, part of Indian multinational company Spice Corp, said the market share of Spice mobiles is increasing rapidly in India as the handsets have some "consumer-friendly special" features and devices. Speaking at the launch of the handsets at Radisson Water Garden Hotel, Ahooja said the company launched its mobiles in Nepal last year and Bangladesh is the third country for the Spice brand. Inspired by rising demand for its products, Spice Corp, a company worth $1.4 billion, plans to expand its operations in other neighbouring countries soon. Four types of Spice handsets have been launched: Spice M 5252 , Spice X-1 , Spice D88- GOLD and Spice S-940 with prices ranging between Tk 2 ,000 and Tk 10 ,000. Speaking as the chief guest at the launching ceremony, Md Mahboob Ahmed, secretary of Bangladesh Telecommunication Regulatory Commission (BTRC), said Bangladesh is a "very good market" for operators as teledensity in increasing here. In his speech, Mehboob Chowdhury, chairman of South Asian Mobile Forum, said: "A greater cooperation is needed among handset makers and operators in the region." Ghalib Ahmed Ansari, CEO of True Distributions, said: "We hope Spice will bring greater value for money to subscribers in Bangladesh."