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China's overseas investment nearly triple in Q3
China's overseas investment in non-financial sectors nearly tripled in the third quarter from the same period last year, the government said Tuesday, as the Asian giant rebounded from the global crisis. Investment in mining, manufacturing and other non-financial sectors reached 20.5 billion dollars from July to September, up 190.4 percent on- year, the commerce ministry said in a statement on its website. That compared with a total of 32.9 billion dollars pumped into overseas non-financial sectors in the first nine months of 2009 , an increase of 0.5 percent on the same period a year ago, it said.
Dollar world's strongest currency: Japan ministar
Japan's finance minister said Tuesday that the dollar was still the world's strongest currency and it was natural for Tokyo to keep large stockpiles of the greenback. "It is clear that the dollar is still the world's strongest currency," Finance Minister Hirohisa Fujii said at a press conference. "It is a matter of course that the country keeps its foreign exchange reserves in a strong currency." This in turn "also supports the dollar," he added. Japan has the world's second-largest forex reserves after China. Tokyo gives no breakdown of the currencies, but most are believed to be held in dollars as a result of past intervention to sell the yen against the greenback. Fujii said countries should not seek to artificially weaken their currencies to boost the competitiveness of their exports, but also reiterated that he was not necessarily in favour of a stronger yen.
World's biggest cruise ship offers activity extravaganza
The world's biggest and most expensive cruise ship ever built, Oasis of the Seas, is to be handed over to the Royal Caribbean cruise line today at the Finnish shipyard where it was constructed. At a cost of some 900 million euros (1.3 billion dollars), the mammoth vessel offers a world of luxury and a plethora of on-board activities for its 6 ,360 passengers and 2 ,000 crew. STX Finland, a subsidiary of South Korean shipbuilder STX, will hand over the vessel to the US-based cruise company at a ceremony in Turku today, and the ship will set sail on its four-night maiden voyage from the US port of Fort Lauderdale to Haiti on December 1. Royal Caribbean has called the ship its "most innovative and imaginative ship yet, (where) entertainment areas have become neighborhoods at sea." Catering to the traditional older crowd of cruise ship travellers as well as to young families, the Oasis of the Seas aims to be more of an activity centre than a traditional cruise ship that merely sails from port to port.
Indian's jet airways reports loss, shares plummet
Jet Airways, India's second-biggest domestic airline, reported Tuesday a second-quarter net loss blamed on low air traffic, a strike by pilots and overcapacity. The airline posted a net loss of 4.06 billion rupees (88 million dollars) for the quarter ending September, from a loss of 3.84 billion rupees a year earlier. Jet shares fell 36.4 rupees or 9.05 percent to 365.8 on the Mumbai stock exchange on Tuesday. "The company suffered losses mainly from lower yields, due to intense competition and overcapacity," Jet executive director Saroj Dutta said in a statement to the Mumbai stock exchange. Revenues for the quarter fell 25 percent to 23.2 billion rupees. Jet said disruptions in September due to a pilots' strike also contributed to the losses. Jet's pilots went on a five-day walk-out, taking mass sick leave after the management sacked two senior pilots for setting up an unrecognised trade union. Thousands of Jet customers were forced to change their travel plans in one of the biggest aviation disruptions in India in recent years, affecting hundreds of domestic and international services.
Oil higher
Oil prices rose slightly on Tuesday as traders paused for breath after sharp falls the previous day and kept an eye on a strengthening dollar. New York's main contract, light sweet crude for delivery in December, added nine cents to 78.77 dollars a barrel. Brent North Sea crude for December rose 12 cents to 77.38 dollars in early London deals. Crude oil fell sharply on Monday as the dollar rose and on expectations of easing violence in Nigeria, whose crude production has been ravaged by militant attacks. The New York contract 1.82 dollars and London Brent tumbled 1.66 dollars on Monday.
Asian market tamble
Asian markets tumbled on Tuesday as a heavy fall on Wall Street overnight caused nervousness among investors ahead of a slew of corporate results, while a stronger dollar hit commodities firms. Tokyo fell 1.45 percent, Hong Kong 1.86 percent and Sydney 1.59 percent. The biggest loser of the day was Shanghai, which dumped almost three percent. Mumbai fell 2.31 percent on fears interest rates will go up soon despite the central bank keeping them at record lows on Tuesday. TOKYO: Down 1.45 percent. The Nikkei-225 fell 150.16 points to 10 , 212.46. HONG KONG: Down 1.86 percent. The Hang Seng Index finished 420.14 points lower at 22 , 169.59. SYDNEY: Down 1.59 percent. The S&P/ASX 200 slipped 76.8 points to 4 ,753.5. SHANGHAI: Down 2.83 percent. The Shanghai Composite Index, which covers both A and B shares, fell 88.11 points to 3 , 021.46. SEOUL: Down 0.46 percent. The KOSPI lost 7.58 points at 1 , 649.53. TAIPEI: Down 0.14 percent. The weighted index fell 11.06 points to 7 , 657.34. SINGAPORE: Down 0.81 percent. The Straits Times Index fell 22.12 points to 2 , 694.50. BANGKOK: Up 0.38 percent. The Stock Exchange of Thailand rose 2.71 points to close at 714.54. KUALA LUMPUR: Flat. The Kuala Lumpur Composite Index edged up 0.38 points to 1 ,260. 30. JAKARTA: Down 1.72 percent. The Jakarta Composite Index lost 42.51 points to 2 , 425.20. MANILA: Down 0.20 percent. The composite index fell 5.79 points to 2 , 935.74. MUMBAI: Down 2.31 percent. The 30- share Sensex fell 387.1 points to 16 ,353.4.
Shanghai luxury hotel market heats up
The world's leading luxury hotels are rushing to expand in Shanghai ahead of next year's World Expo, with hopes high for the upscale travel sector in the Chinese financial hub despite the global downturn. The opulent Peninsula, the only new building on the main part of Shanghai's historic Bund in 60 years, just opened, embracing the city's Jazz Age heyday with a chauffeur-driven 1934 Rolls Royce Phantom and a Great Gatsby-esque pool. The Peninsula's owner, Hongkong and Shanghai Hotels Limited, is making a return to the "Paris of the East" where it was founded after a 60- year absence, but it is facing stiff competition. Ritz Carlton is building a second hotel here, Hyatt already has three landmark properties and Shangri-La is expanding from one to four hotels. Conrad, Jumeirah, Waldorf Astoria and the legendary Peace Hotel -- managed by Fairmont -- are all also preparing to enter the fray, with work done or nearly completed on each property. "Is it madness?" asked Graham Kiy, general manager of the two-hotel Zendai complex designed by star Japanese architect Arata Isozaki. A member of the Leading Hotels of the World, the complex is due to open in September 2010. "The luxury travel sector itself has always been less affected by economic downturns. Luxury travel is a little bit down, but not as depressed as the three-star and four-star sectors," Kiy said. He said occupancy at five star hotels was currently at 50-55 percent overall, rising to 60- 65 percent at hotels with better locations. The surge in luxury hotel openings -- which will add nearly 3 ,900 five-star rooms -- is linked to Expo 2010 , which Shanghai will host next year. Seven million visitors, most of them Chinese, are expected to flood into the city. "We're sure Expo will bring benefits to Shanghai in terms of visitors and media attention, but 2011 will be tough because there will be an oversupply of luxury hotels," Kiy said. China has weathered the economic crisis better than any other travel market, said Philip Ho, Asia Pacific vice president for Leading Hotels of the World, whose latest property, the PuLi Hotel and Spa, just opened in Shanghai. He points to research his company conducted earlier this year indicating that while globally more than 40 percent of people had cancelled vacations due to economic constraints, only 15 percent had done so in China and Hong Kong. Fifty percent of Chinese and Hong Kong respondents to the luxury firm's survey said they would not change their travel habits due to the downturn and nearly 80 percent said they would not downgrade from five-star hotels. "While the world has gone into a recession, China has not gone into a recession," Ho said. The number of high net worth individuals in China surpassed the number in Britain last year to become the fourth largest in the world, according to research published by Merrill Lynch this month. China passed France in 2007. China now has more than 364 ,000 people with more than one million dollars in liquid assets, the investment bank said. That is a key figure for the luxury hotel sector, executives say -- and one that puts them at ease. "China's a very big market and there's a place for everybody and everything," said the Peninsula's general manager Paul Tchen. "With our arrival, we're providing another option ... Choice itself is a luxury."
Profits soar at China's Baidu.com
China's leading search engine company Baidu has reported a sharp
increase in profits but warned revenue would be hit by moving to a
new advertising system. The warning sent the firm's shares more than
10 % lower in after-hours trading in New York. Net income between July
and September came in at 492.9 m yuan ($72.2 m; £44.1 m), up almost
40 % on the 350 m yuan recorded in the same period last year. Baidu
has more than 60 % of the China's search engine market. It plans to
phase out its current advertising system and replace it with a new
Phoenix Nest system later this year. "We feel that in the first
quarter there will be a material impact from the switch," the company
said. But analysts said the new system would benefit the firm in the
long run. "It is just short-term pain, the long term fundamentals of
the company are still strong," said Dick Wei at JP Morgan.
increase in profits but warned revenue would be hit by moving to a
new advertising system. The warning sent the firm's shares more than
10 % lower in after-hours trading in New York. Net income between July
and September came in at 492.9 m yuan ($72.2 m; £44.1 m), up almost
40 % on the 350 m yuan recorded in the same period last year. Baidu
has more than 60 % of the China's search engine market. It plans to
phase out its current advertising system and replace it with a new
Phoenix Nest system later this year. "We feel that in the first
quarter there will be a material impact from the switch," the company
said. But analysts said the new system would benefit the firm in the
long run. "It is just short-term pain, the long term fundamentals of
the company are still strong," said Dick Wei at JP Morgan.
Copier sales slide knocks Canon
Canon has announced a fall in profits of more than 50 % despite
digital camera sales holding up well in the downturn. The company is
blaming a 22 % drop in overall sales on a reduced demand for new
photocopiers. Net profit between July and September was 36. 7 bn yen
($399 m; £244 m), down by 54 % on the 83 bn yen the company made in
the same period last year. Meanwhile, Toshiba says it expects to earn
a first-half operating profit thanks to cost cutting. The Japanese
technology giant is expecting to have earned an operating profit of 2
bn yen in the six months to September, instead of a previously
forecast loss of 30 bn yen. Toshiba says it has cut costs in its
microchips, digital media and power systems operations. The company
now expects its annual net loss to be about 58 bn yen, 28 % smaller
than a previously forecast loss of 80 bn yen. Toshiba is due to
announce its full interim results on Friday.
digital camera sales holding up well in the downturn. The company is
blaming a 22 % drop in overall sales on a reduced demand for new
photocopiers. Net profit between July and September was 36. 7 bn yen
($399 m; £244 m), down by 54 % on the 83 bn yen the company made in
the same period last year. Meanwhile, Toshiba says it expects to earn
a first-half operating profit thanks to cost cutting. The Japanese
technology giant is expecting to have earned an operating profit of 2
bn yen in the six months to September, instead of a previously
forecast loss of 30 bn yen. Toshiba says it has cut costs in its
microchips, digital media and power systems operations. The company
now expects its annual net loss to be about 58 bn yen, 28 % smaller
than a previously forecast loss of 80 bn yen. Toshiba is due to
announce its full interim results on Friday.
Honda profit hit by falling sales
Honda's profits for the July to September period more than halved
after car sales continued to fall during the global economic
downturn. Net profit came in at 54 bn yen ($587 m; £359 m) for the
quarter, down 56 % on the 123.3 bn yen recorded a year earlier.
Japan's second-largest carmaker said the strong yen had contributed
to a fall in sales in overseas markets. But the fall in profits was
less than had been expected, and the carmaker tripled its full-year
profit forecast. Honda says it will now make a net profit of 155 bn
yen for the year to the end of March, up from its previous forecast
of 55 bn yen. It also raised its full-year sales forecast, to 3.4
million cars from 3.29 million cars. Despite the increase in
projected future sales, revenue in the third quarter fell by 27 %
from a year ago. This was largely due to falling car sales in
overseas markets. Sales in Japan have been less affected, largely due
to government tax breaks and incentives on hybrids such as the new
Honda Insight. "Honda's numbers came in a bit better than forecast
and the biggest factor seems to be the year-on-year reduction in
production costs," said Andrew Phillips at KBC Securities.
after car sales continued to fall during the global economic
downturn. Net profit came in at 54 bn yen ($587 m; £359 m) for the
quarter, down 56 % on the 123.3 bn yen recorded a year earlier.
Japan's second-largest carmaker said the strong yen had contributed
to a fall in sales in overseas markets. But the fall in profits was
less than had been expected, and the carmaker tripled its full-year
profit forecast. Honda says it will now make a net profit of 155 bn
yen for the year to the end of March, up from its previous forecast
of 55 bn yen. It also raised its full-year sales forecast, to 3.4
million cars from 3.29 million cars. Despite the increase in
projected future sales, revenue in the third quarter fell by 27 %
from a year ago. This was largely due to falling car sales in
overseas markets. Sales in Japan have been less affected, largely due
to government tax breaks and incentives on hybrids such as the new
Honda Insight. "Honda's numbers came in a bit better than forecast
and the biggest factor seems to be the year-on-year reduction in
production costs," said Andrew Phillips at KBC Securities.
Wind turbine maker's profits soar
Vestas, the world's largest wind turbine maker, has reported a big
jump in quarterly profits after increasing deliveries of turbines.
Net profit for July to September came in at 165 m euros ($246 m; £150
m), up 70 % on the 97 m euros recorded a year ago. Revenue rose to
1.81 bn euros from 1.76 bn euros a year ago. Vestas workers staged a
sit-in protest at its site in the Isle of Wight this summer, after
the firm shut the factory there with the loss of 425 jobs. Improving
prospects Vestas also reiterated its full-year sales forecast on
expectations of further new orders. It added that "market prospects
are beginning to improve". The results were better than analysts had
expected and shares in Vestas rose 8.5 % in Frankfurt. "Both the
third quarter and their expectations are extremely positive," said
Christian Nagstrup at Jyske Bank.
jump in quarterly profits after increasing deliveries of turbines.
Net profit for July to September came in at 165 m euros ($246 m; £150
m), up 70 % on the 97 m euros recorded a year ago. Revenue rose to
1.81 bn euros from 1.76 bn euros a year ago. Vestas workers staged a
sit-in protest at its site in the Isle of Wight this summer, after
the firm shut the factory there with the loss of 425 jobs. Improving
prospects Vestas also reiterated its full-year sales forecast on
expectations of further new orders. It added that "market prospects
are beginning to improve". The results were better than analysts had
expected and shares in Vestas rose 8.5 % in Frankfurt. "Both the
third quarter and their expectations are extremely positive," said
Christian Nagstrup at Jyske Bank.
US consumer confidence takes hit
US consumer confidence fell sharply and unexpectedly in October as
fears about future job prospects increasingly preyed upon Americans.
The closely-watched Consumer Confidence Index from the Conference
Board business organisation slipped to 47.7 from a revised 53.4 in
September. Analysts were expecting the index to be unchanged or even
to rise slightly. Separately, a leading US index has found that house
prices rose by more than expected in August. Spending fears The
disappointing consumer confidence figures hit US shares, with the Dow
Jones index down by 24 points, or 0.2 %, at 9843.93 soon after the
figures were released. Rising unemployment played a "major role" in
knocking confidence, the Conference Board said. Figures released
earlier this month showed that the US jobless rate rose to a fresh
26- year high in September of 9.8 % The figures also cast doubt on
how strong Christmas holiday spending will be this year. "Consumers
remain quite pessimistic about their future earnings, a sentiment
that will likely constrain spending during the holidays," said Lynn
Franco, research director at the Conference Board. Consumer spending
accounts for about 70 % of overall economic activity in the US, so
weak spending in the run up to Christmas could have serious
implications for the US economy. An index reading of 90 in the
Confidence Index is the minimum to indicate a healthy economy. Tax
credits However, there was better news from the US property market.
The Standard & Poor's/Case Shiller Home Price index rose by 1.2 % in
August compared with July, although prices remained 11.4 % lower than
in August 2008. But analysts were not getting carried away by the
figures, suggesting that some of the recent rises in house prices
could be down to temporary tax credits. "The picture so far is that
prices have bottomed and are beginning to revive on a broad basis,"
said Pierre Ellis at Decision Economics. "The question is whether it
will be sustainable with a lack of employment growth and the
potential expiration of the first-time home buyer credit."
fears about future job prospects increasingly preyed upon Americans.
The closely-watched Consumer Confidence Index from the Conference
Board business organisation slipped to 47.7 from a revised 53.4 in
September. Analysts were expecting the index to be unchanged or even
to rise slightly. Separately, a leading US index has found that house
prices rose by more than expected in August. Spending fears The
disappointing consumer confidence figures hit US shares, with the Dow
Jones index down by 24 points, or 0.2 %, at 9843.93 soon after the
figures were released. Rising unemployment played a "major role" in
knocking confidence, the Conference Board said. Figures released
earlier this month showed that the US jobless rate rose to a fresh
26- year high in September of 9.8 % The figures also cast doubt on
how strong Christmas holiday spending will be this year. "Consumers
remain quite pessimistic about their future earnings, a sentiment
that will likely constrain spending during the holidays," said Lynn
Franco, research director at the Conference Board. Consumer spending
accounts for about 70 % of overall economic activity in the US, so
weak spending in the run up to Christmas could have serious
implications for the US economy. An index reading of 90 in the
Confidence Index is the minimum to indicate a healthy economy. Tax
credits However, there was better news from the US property market.
The Standard & Poor's/Case Shiller Home Price index rose by 1.2 % in
August compared with July, although prices remained 11.4 % lower than
in August 2008. But analysts were not getting carried away by the
figures, suggesting that some of the recent rises in house prices
could be down to temporary tax credits. "The picture so far is that
prices have bottomed and are beginning to revive on a broad basis,"
said Pierre Ellis at Decision Economics. "The question is whether it
will be sustainable with a lack of employment growth and the
potential expiration of the first-time home buyer credit."
BP profits ahead of expectations
Oil giant BP has reported third-quarter profits well ahead of
expectations, sending its share price up 5 %. Its replacement cost
profit between July and September was $4.98 bn (£3 bn). Experts said
the figure had "obliterated" market forecasts. BP's results were
boosted after it made bigger- than-expected cost cuts. But profit was
down 50 % from the $10 bn it made a year ago, as oil - currently
trading at about $80 a barrel - is well below the $147 high set in
July 2008. The company said that unit production costs were 18 %
lower than in the third quarter of 2008 , while oil and gas
production was up 7 % on last year. BP says it expects to cut costs
by a total of $4 bn this year. Share spike "The fall in earnings was
well trailed," said Richard Hunter, head of UK equities at
Hargreaves Lansdown. REPLACEMENT COST PROFIT Replacement cost profit
is the reporting measure typically used by oil companies and
reflects the current cost of supplies The measure strips out gains or
losses related to any changes in the value of the firm's stock of
fuel products "But the numbers nonetheless have obliterated market
forecasts, as evidenced by the spike in the share price in early
trade." Excluding one-off items, BP's profits were $4. 67 bn compared
with analysts' forecasts of about $3.2 bn. The firm's shares rose 27
pence to 594 p. Nick McGregor, oil analyst at Redmayne Bentley, said
that BP's refining business was also key. "For every dollar that oil
prices go up, BP make about $400 m. For every dollar that refining
margins go up, they make about $950 m," he said. "The exploration and
production is the most profitable in absolute terms because it's the
biggest bit, but refining is a big influence on the overall bottom
line." 'Giant' discovery Net income at its Russian joint venture
TNK-BP rose 34 % to $1.7 bn. The project had been marred by a dispute
between BP and the Russian shareholders in the venture, and was only
resolved in September last year when Robert Dudley stepped down as
TNK-BP's chief executive. BP said the venture was well-positioned to
deliver a solid performance in 2009. BP was also buoyed last month by
a "giant" new oil discovery in the Gulf of Mexico. The company said
the discovery amounted to more than three billion barrels. Its well
in the region, dubbed Tiber, has been drilled to a total depth of
about 35 ,055 ft (10 ,685 m), making it one of the deepest wells
drilled to date.
expectations, sending its share price up 5 %. Its replacement cost
profit between July and September was $4.98 bn (£3 bn). Experts said
the figure had "obliterated" market forecasts. BP's results were
boosted after it made bigger- than-expected cost cuts. But profit was
down 50 % from the $10 bn it made a year ago, as oil - currently
trading at about $80 a barrel - is well below the $147 high set in
July 2008. The company said that unit production costs were 18 %
lower than in the third quarter of 2008 , while oil and gas
production was up 7 % on last year. BP says it expects to cut costs
by a total of $4 bn this year. Share spike "The fall in earnings was
well trailed," said Richard Hunter, head of UK equities at
Hargreaves Lansdown. REPLACEMENT COST PROFIT Replacement cost profit
is the reporting measure typically used by oil companies and
reflects the current cost of supplies The measure strips out gains or
losses related to any changes in the value of the firm's stock of
fuel products "But the numbers nonetheless have obliterated market
forecasts, as evidenced by the spike in the share price in early
trade." Excluding one-off items, BP's profits were $4. 67 bn compared
with analysts' forecasts of about $3.2 bn. The firm's shares rose 27
pence to 594 p. Nick McGregor, oil analyst at Redmayne Bentley, said
that BP's refining business was also key. "For every dollar that oil
prices go up, BP make about $400 m. For every dollar that refining
margins go up, they make about $950 m," he said. "The exploration and
production is the most profitable in absolute terms because it's the
biggest bit, but refining is a big influence on the overall bottom
line." 'Giant' discovery Net income at its Russian joint venture
TNK-BP rose 34 % to $1.7 bn. The project had been marred by a dispute
between BP and the Russian shareholders in the venture, and was only
resolved in September last year when Robert Dudley stepped down as
TNK-BP's chief executive. BP said the venture was well-positioned to
deliver a solid performance in 2009. BP was also buoyed last month by
a "giant" new oil discovery in the Gulf of Mexico. The company said
the discovery amounted to more than three billion barrels. Its well
in the region, dubbed Tiber, has been drilled to a total depth of
about 35 ,055 ft (10 ,685 m), making it one of the deepest wells
drilled to date.
July-Aug export declines
Exports have nosedived against targets in the first two months of the
fiscal year compared with figures from the same period last fiscal,
Export Promotion Bureau statistics show. The EPB figures indicate
exports in the first two months fell by 6.86 per cent against the
target, 3.29 per cent lower than exports in Jul- Aug 2008. This
trend is likely to continue through incoming months, an expert on
foreign trade has said, considering a 13 per cent greater export
earning target this fiscal. Zayed Bakht, BIDS research director,
told bdnews24.com, 'We happen to export most of our wares to Europe
and the US, who are still trying hard to come out of the shadows of
the all-encompassing recession.' 'The still conservative trends
may cut our moderately ambitious export earning targets attainment
through the first and second quarters.' Md Shahabullah, EPB vice
chairman, told bdnews24.com, 'The last fiscal year saw a stupendous
60 per cent export growth in July and another 42 per cent in August
juxtaposed with which the current year's earnings look dwarfed.'
'Escalation of export growth rates might occur at different times
through years. Bangladesh is expected to do better towards the
year-end in meeting the target.' The overall export earning target
in the last fiscal fell short in the end by 4.50 per cent, EPB
statistics revealed. As per the EPB figures, exports in all sub-
sectors—woven, knit, textile fabrics and home textiles—of the main
sector of readymade garments have fallen. Processed food products,
tea, leather and ceramic wares exports also nosedived. Chemical
products, bicycles, computer software and services and handicrafts
exports which shone last year have experienced cuts too. But
exports of electronic equipment, jute goods, agro-based—especially
processed agricultural products including vegetables, tobacco
etc—have been augmented. The knitwear exports in Jul-Aug have
bagged $1204.31 million, which fell short of the current year's
target by 3.66 per cent and 0.48 per cent compared with the last
year's earnings. During the same period, woven wear exports earned
$1011.87 million, which fell short of the current year's target by
11.68 per cent and 2.06 per cent compared with the last year's
earnings. FBCCI president Annisul Huq told bdnews24. com, 'Usually,
the first couple of months see export earnings escalating. But this
year, the picture is different.' 'I'll say we have to exercise
caution even if we refrain from raising an alarm reacting to this
situation. 'The overall exports and imports—both sectors have
experienced cuts. Imports of raw materials and capital equipment have
seen reductions. Foreign currency reserves have risen.'
fiscal year compared with figures from the same period last fiscal,
Export Promotion Bureau statistics show. The EPB figures indicate
exports in the first two months fell by 6.86 per cent against the
target, 3.29 per cent lower than exports in Jul- Aug 2008. This
trend is likely to continue through incoming months, an expert on
foreign trade has said, considering a 13 per cent greater export
earning target this fiscal. Zayed Bakht, BIDS research director,
told bdnews24.com, 'We happen to export most of our wares to Europe
and the US, who are still trying hard to come out of the shadows of
the all-encompassing recession.' 'The still conservative trends
may cut our moderately ambitious export earning targets attainment
through the first and second quarters.' Md Shahabullah, EPB vice
chairman, told bdnews24.com, 'The last fiscal year saw a stupendous
60 per cent export growth in July and another 42 per cent in August
juxtaposed with which the current year's earnings look dwarfed.'
'Escalation of export growth rates might occur at different times
through years. Bangladesh is expected to do better towards the
year-end in meeting the target.' The overall export earning target
in the last fiscal fell short in the end by 4.50 per cent, EPB
statistics revealed. As per the EPB figures, exports in all sub-
sectors—woven, knit, textile fabrics and home textiles—of the main
sector of readymade garments have fallen. Processed food products,
tea, leather and ceramic wares exports also nosedived. Chemical
products, bicycles, computer software and services and handicrafts
exports which shone last year have experienced cuts too. But
exports of electronic equipment, jute goods, agro-based—especially
processed agricultural products including vegetables, tobacco
etc—have been augmented. The knitwear exports in Jul-Aug have
bagged $1204.31 million, which fell short of the current year's
target by 3.66 per cent and 0.48 per cent compared with the last
year's earnings. During the same period, woven wear exports earned
$1011.87 million, which fell short of the current year's target by
11.68 per cent and 2.06 per cent compared with the last year's
earnings. FBCCI president Annisul Huq told bdnews24. com, 'Usually,
the first couple of months see export earnings escalating. But this
year, the picture is different.' 'I'll say we have to exercise
caution even if we refrain from raising an alarm reacting to this
situation. 'The overall exports and imports—both sectors have
experienced cuts. Imports of raw materials and capital equipment have
seen reductions. Foreign currency reserves have risen.'
Citycell makes roaming easy during Hajj
Citycell – the only CDMA operator of the country – has recently
introduced special international roaming facility for Hajj pilgrims
of Bangladesh. The 'Global Roaming' facility is available for the
first time this year to pilgrims using Citycell. Though Saudi
Arabia does not have any local CDMA operator, Citycell customers will
be able to use their Citycell global roaming RIM cards in GSM
handsets to make and receive calls using their own post-paid number.
Additionally, customers will also enjoy the most affordable roaming
call rates anywhere in Saudi Arabia compared to other operators of
Bangladesh. Citycell is extending a special offer to hajis and any
other travelers to Saudi Arabia during the offer period (till
December 31 2009) allowing a 50 per cent discount on global roaming
subscription. To apply for this offer, customers will need to show
a copy of the Hajj or Saudi visa or Hajj ID card in addition to the
regular documents required for international roaming subscription.
introduced special international roaming facility for Hajj pilgrims
of Bangladesh. The 'Global Roaming' facility is available for the
first time this year to pilgrims using Citycell. Though Saudi
Arabia does not have any local CDMA operator, Citycell customers will
be able to use their Citycell global roaming RIM cards in GSM
handsets to make and receive calls using their own post-paid number.
Additionally, customers will also enjoy the most affordable roaming
call rates anywhere in Saudi Arabia compared to other operators of
Bangladesh. Citycell is extending a special offer to hajis and any
other travelers to Saudi Arabia during the offer period (till
December 31 2009) allowing a 50 per cent discount on global roaming
subscription. To apply for this offer, customers will need to show
a copy of the Hajj or Saudi visa or Hajj ID card in addition to the
regular documents required for international roaming subscription.
Pizza Hut, KFC launch Braille menu
Pizza Hut and KFC have introduced a Braille menu to serve its
differently-abled customers, says a press release. Under the
franchise of Transcom Foods Ltd, the two international restaurant
chains will be the first in the country to open up such an
opportunity to the visually-impaired to choose from a menu they could
easily understand. The Braille menu was launched yesterday at the
Gulshan outlet of Pizza Hut and KFC, where Akku Chowdhury, executive
director of Transcom Foods Ltd, was present. Chowdhury said the
motivation behind the Braille menu came after he received a mail from
Dr Nafeesur Rahman, director of NFOWD ( National Forum of
Organisations Working With the Disabled), to make the difference.
differently-abled customers, says a press release. Under the
franchise of Transcom Foods Ltd, the two international restaurant
chains will be the first in the country to open up such an
opportunity to the visually-impaired to choose from a menu they could
easily understand. The Braille menu was launched yesterday at the
Gulshan outlet of Pizza Hut and KFC, where Akku Chowdhury, executive
director of Transcom Foods Ltd, was present. Chowdhury said the
motivation behind the Braille menu came after he received a mail from
Dr Nafeesur Rahman, director of NFOWD ( National Forum of
Organisations Working With the Disabled), to make the difference.
Japan's hip young farmers dig in to avert food crunch
Young Japanese are fleeing the urban jungle for the half-abandoned
countryside on a mission to make farming cool again and cut Japan's
frightening food deficit in the process. Organic farming converts,
rice-growing Tokyo fashionistas and other young greenfingers have
trickled back into rural Japan where many farm towns have been slowly
dying amid fast-greying Japan's demographic crunch. Japan, the world's
second-largest economy, now imports 60 percent of its food, and many
worry about future food security if climate change rocks global food
supplies or energy costs swing international grain prices. In a
high-tech country that grew rich on selling cars and electronics, the
young farmers are standing up to reinvent the image of agriculture.
"No matter how big Japan's economy is, no matter how much cash it
stacks up, this country will soon be unable to buy so much food from
overseas," Yusuke Miyaji, 31 , recently told a crowd of young
farmers. "I want to make a job in the primary sector cool, striking
and profitable," said Miyaji, dressed in overalls, to applause from
his audience. "Kids should dream of becoming farmers, not baseball
players!" Miyaji, who comes from a pig farming family, has created a
network called Kosegare, a word meaning farmer's son, that has
attracted more than 200 young farmers and supporters who share his
sense of crisis. "The time left for us to revamp this industry is
probably about five years," Miyaji warned his squad of youthful
activist farmers. Under his scheme, produce is marketed under the
network's "Refarm" brand. Members share information on organic
farming and urge supportive consumers to buy directly from them to
cut distribution and commission costs. Encouraged by the movement,
Kaori Nukui, 31 , who joined her parents last year to grow green tea
and shiitake mushrooms, said that after years in the city she now saw
a business opportunity in family farming. "I had no interest before
in taking over this business," said Nukui, who had worked for Tokyo
consulting and public relations firms for seven years, as she drove a
pick-up truck to a mushroom house in Iruma, north of Tokyo. "My
mother also wanted me to marry a businessman rather than work the
land," she said. "But when I thought of starting a business myself,
I realised my parents had already built a good foundation for me."
Data shows Japan's farming population is quickly ageing and that many
farm households have no working heir, as birth rates have fallen and
children have left country towns for the bright city lights. More
than 70 percent of Japan's working farmers are aged 60 or older,
and nearly half are over 70. Only 8.5 percent are aged 39 or
younger. About 3 ,800 square kilometres (1 ,520 square miles) of
farmland have been abandoned and laid waste throughout the nation. In
88 percent of cases, the owners said they were too old to work the
fields. Japan, which kept its food self-sufficiency ratio above 70
percent in the late 1960 s, now produces only 40 percent of its food
and buys almost all its wheat, corn and soy beans from overseas.
Domestic production of meat, particularly beef and pork, has fallen
from 96 percent in 1960 to about half in 2007. The country grows
enough rice for domestic consumption, thanks to heavy trade
protection which has also made the rice sector highly inefficient.
The government has for years tried to reduce rice farming acreage in
order to limit supply, keep the market price high, and thereby allow
Japanese rice farmers to continue to make a living. The new
government led by Prime Minister Yukio Hatoyama has pledged to
abolish the policy but keep subsidising rice farmers. Seeing the dire
situation of farmers, even girls with trendy hairstyles and long
painted fingernails in Tokyo's fashionable Shibuya shopping district
have jumped onto the rural bandwagon. Shiho Fujita, a 24- year-old
singer, music producer and model, is leading a squad of "gal"
farmers who have cultivated rice in the countryside, and dishes out
advice in her blog on growing zucchini and tomatoes. "It may be
difficult for gals and young people to start farming instantly," she
writes. "But if the agro-industry becomes more exciting by young
people joining it, then Japan's farming will definitely change.
countryside on a mission to make farming cool again and cut Japan's
frightening food deficit in the process. Organic farming converts,
rice-growing Tokyo fashionistas and other young greenfingers have
trickled back into rural Japan where many farm towns have been slowly
dying amid fast-greying Japan's demographic crunch. Japan, the world's
second-largest economy, now imports 60 percent of its food, and many
worry about future food security if climate change rocks global food
supplies or energy costs swing international grain prices. In a
high-tech country that grew rich on selling cars and electronics, the
young farmers are standing up to reinvent the image of agriculture.
"No matter how big Japan's economy is, no matter how much cash it
stacks up, this country will soon be unable to buy so much food from
overseas," Yusuke Miyaji, 31 , recently told a crowd of young
farmers. "I want to make a job in the primary sector cool, striking
and profitable," said Miyaji, dressed in overalls, to applause from
his audience. "Kids should dream of becoming farmers, not baseball
players!" Miyaji, who comes from a pig farming family, has created a
network called Kosegare, a word meaning farmer's son, that has
attracted more than 200 young farmers and supporters who share his
sense of crisis. "The time left for us to revamp this industry is
probably about five years," Miyaji warned his squad of youthful
activist farmers. Under his scheme, produce is marketed under the
network's "Refarm" brand. Members share information on organic
farming and urge supportive consumers to buy directly from them to
cut distribution and commission costs. Encouraged by the movement,
Kaori Nukui, 31 , who joined her parents last year to grow green tea
and shiitake mushrooms, said that after years in the city she now saw
a business opportunity in family farming. "I had no interest before
in taking over this business," said Nukui, who had worked for Tokyo
consulting and public relations firms for seven years, as she drove a
pick-up truck to a mushroom house in Iruma, north of Tokyo. "My
mother also wanted me to marry a businessman rather than work the
land," she said. "But when I thought of starting a business myself,
I realised my parents had already built a good foundation for me."
Data shows Japan's farming population is quickly ageing and that many
farm households have no working heir, as birth rates have fallen and
children have left country towns for the bright city lights. More
than 70 percent of Japan's working farmers are aged 60 or older,
and nearly half are over 70. Only 8.5 percent are aged 39 or
younger. About 3 ,800 square kilometres (1 ,520 square miles) of
farmland have been abandoned and laid waste throughout the nation. In
88 percent of cases, the owners said they were too old to work the
fields. Japan, which kept its food self-sufficiency ratio above 70
percent in the late 1960 s, now produces only 40 percent of its food
and buys almost all its wheat, corn and soy beans from overseas.
Domestic production of meat, particularly beef and pork, has fallen
from 96 percent in 1960 to about half in 2007. The country grows
enough rice for domestic consumption, thanks to heavy trade
protection which has also made the rice sector highly inefficient.
The government has for years tried to reduce rice farming acreage in
order to limit supply, keep the market price high, and thereby allow
Japanese rice farmers to continue to make a living. The new
government led by Prime Minister Yukio Hatoyama has pledged to
abolish the policy but keep subsidising rice farmers. Seeing the dire
situation of farmers, even girls with trendy hairstyles and long
painted fingernails in Tokyo's fashionable Shibuya shopping district
have jumped onto the rural bandwagon. Shiho Fujita, a 24- year-old
singer, music producer and model, is leading a squad of "gal"
farmers who have cultivated rice in the countryside, and dishes out
advice in her blog on growing zucchini and tomatoes. "It may be
difficult for gals and young people to start farming instantly," she
writes. "But if the agro-industry becomes more exciting by young
people joining it, then Japan's farming will definitely change.
UAE to spend more next year
The United Arab Emirates federal government will increase public
spending by 3.4 percent next year despite the global economic
downturn, according to the draft 2010 federal budget released on
Monday. Spending will rise to 43.63 billion dirhams (11.89 billion
dollars) for the fiscal year 2010 , but the government expects
revenues to match expenditure and to balance the budget, making it
the sixth consecutive year without a deficit. The social services
sectors, including education and health care, receive the lion's
share of the budget, equivalent to 41 percent or 17.8 billion
dirhams (4.85 billion dollars). The budget of the federation of seven
emirates -- Abu Dhabi, Dubai, Sharjah, Ajman, Ras al- Khaimah, Umm
al-Qaiwain and Fujairah -- reflects "the sound fiscal policy of the
government through which it was able to achieve positive growth and
no deficit despite the global economic circumstances," WAM said. Like
its neighbours in the Gulf region, the UAE has witnessed a six-year
oil-fuelled economic boom. However, the onset of the global downturn
triggered a slowdown in the economy, especially in the emirate of
Dubai's real estate market, causing suspension of mega construction
projects and job layoffs as property prices plunged by 50 percent. In
addition to the federal budget, each of the seven emirates adopts its
own budget, which is much higher than that of the federal
government. With reserves estimated at 97.8 billion barrels of crude
oil, the UAE, with a population of about 6 million people among whom
more than 80 percent are expatriates, is a leading OPEC member.
spending by 3.4 percent next year despite the global economic
downturn, according to the draft 2010 federal budget released on
Monday. Spending will rise to 43.63 billion dirhams (11.89 billion
dollars) for the fiscal year 2010 , but the government expects
revenues to match expenditure and to balance the budget, making it
the sixth consecutive year without a deficit. The social services
sectors, including education and health care, receive the lion's
share of the budget, equivalent to 41 percent or 17.8 billion
dirhams (4.85 billion dollars). The budget of the federation of seven
emirates -- Abu Dhabi, Dubai, Sharjah, Ajman, Ras al- Khaimah, Umm
al-Qaiwain and Fujairah -- reflects "the sound fiscal policy of the
government through which it was able to achieve positive growth and
no deficit despite the global economic circumstances," WAM said. Like
its neighbours in the Gulf region, the UAE has witnessed a six-year
oil-fuelled economic boom. However, the onset of the global downturn
triggered a slowdown in the economy, especially in the emirate of
Dubai's real estate market, causing suspension of mega construction
projects and job layoffs as property prices plunged by 50 percent. In
addition to the federal budget, each of the seven emirates adopts its
own budget, which is much higher than that of the federal
government. With reserves estimated at 97.8 billion barrels of crude
oil, the UAE, with a population of about 6 million people among whom
more than 80 percent are expatriates, is a leading OPEC member.
India frees trade with Vietnam
India has granted market economy status to communist-ruled Vietnam,
an important step to ramp up its economic engagement with the
Association of South East Asian Nations (Asean). Industry and trade
officials here said yesterday that the move gave more substance to a
free trade agreement between the two sides. India granted the market
economy status during bilateral talks between Prime Minister Manmohan
Singh and his Vietnamese counterpart Nguyen Tan Dung on the sidelines
of Asean summit in the sea resort of Hua Hin in southern Thailand on
Sunday. The conferring of market economy status by India to Vietnam
came before the World Trade Organisation (WTO) deadline after Hanoi
insisted on it before signing the India-Asean Free Trade Agreement.
In a market economy, prices of goods and services are determined by
demand and supply. With the new move, India will accept prices
prevailing in the Southeast Asian nation as the basis for determining
investigations into complaints of anti-dumping against imported
goods, officials say. India is yet to give such status to China,
another communists-ruled country. Earlier, India used to investigate
dumping cases from Vietnam on the basis of prices prevailing in a
third country. Anti-dumping probe arises when a recipient country
suspects that the exporting nation is supplying goods at abnormally
low prices that will affect the domestic industry of the importing
country and the prices are controlled by the government of the
exporting country. In fact, India had recently imposed anti-dumping
duty on textile imports from Vietnam. Although India-Asean FTA would
have gone into force even without Vietnam signing the document,
India did not want any of the ten- member countries of Asean to remain
out of the deal, Indian officials say. They pointed out that the FTA
between South Korea and Asean did not include Thailand for a long
time. All Asean member-countries, Australia and New Zealand have
already recognised Vietnam as a market economy country, which
registered one of the highest economic growth in the region. Trade
volume between India and Asean stood at $48 billion in 2008 and is
expected to touch the $50- billion mark next year.
an important step to ramp up its economic engagement with the
Association of South East Asian Nations (Asean). Industry and trade
officials here said yesterday that the move gave more substance to a
free trade agreement between the two sides. India granted the market
economy status during bilateral talks between Prime Minister Manmohan
Singh and his Vietnamese counterpart Nguyen Tan Dung on the sidelines
of Asean summit in the sea resort of Hua Hin in southern Thailand on
Sunday. The conferring of market economy status by India to Vietnam
came before the World Trade Organisation (WTO) deadline after Hanoi
insisted on it before signing the India-Asean Free Trade Agreement.
In a market economy, prices of goods and services are determined by
demand and supply. With the new move, India will accept prices
prevailing in the Southeast Asian nation as the basis for determining
investigations into complaints of anti-dumping against imported
goods, officials say. India is yet to give such status to China,
another communists-ruled country. Earlier, India used to investigate
dumping cases from Vietnam on the basis of prices prevailing in a
third country. Anti-dumping probe arises when a recipient country
suspects that the exporting nation is supplying goods at abnormally
low prices that will affect the domestic industry of the importing
country and the prices are controlled by the government of the
exporting country. In fact, India had recently imposed anti-dumping
duty on textile imports from Vietnam. Although India-Asean FTA would
have gone into force even without Vietnam signing the document,
India did not want any of the ten- member countries of Asean to remain
out of the deal, Indian officials say. They pointed out that the FTA
between South Korea and Asean did not include Thailand for a long
time. All Asean member-countries, Australia and New Zealand have
already recognised Vietnam as a market economy country, which
registered one of the highest economic growth in the region. Trade
volume between India and Asean stood at $48 billion in 2008 and is
expected to touch the $50- billion mark next year.
BKMEA to hold labour festival
Bangladesh Knit Manufacturers and Exporters Association (BKMEA) is
set to hold a daylong labour festival for the second time at Osmani
Stadium in Narayanganj on December 18. A series of programmes,
including traditional cultural shows and concerts, will be organised
during the festival. The festival is expected to draw more than one
lakh workers from Narayanganj, Savar and Gazipur, BKMEA said in a
statement yesterday. BKMEA held the first labour festival on October
24 last year.
set to hold a daylong labour festival for the second time at Osmani
Stadium in Narayanganj on December 18. A series of programmes,
including traditional cultural shows and concerts, will be organised
during the festival. The festival is expected to draw more than one
lakh workers from Narayanganj, Savar and Gazipur, BKMEA said in a
statement yesterday. BKMEA held the first labour festival on October
24 last year.
ADB sings a deal with Bangladesh
The Asian Development Bank (ADB) signed four agreements yesterday to
lend Bangladesh $744 million to help fight off the effects of global
recession. Of the total allocation, a $500 million loan under the
countercyclical support facility (CSF) will support the government's
efforts to mitigate the worst effects of the global economic crisis,
ADB said in a statement. Three other loans of $244 million under the
public expenditure support facility (PESF) will support government
measures to introduce economic and social policy reforms. ADB
emphasises that the reforms are essential to achieve higher and more
inclusive long-term growth and strengthen social safety net
programmes. M Musharraf Hossain Bhuiyan, secretary of Economic
Relations Division (ERD), and Paul J Heytens, ADB's country director
for Bangladesh, signed the agreements at a ceremony at ERD in Dhaka.
"The CSF loan will help the government to stimulate economic recovery
and move ahead with its social safety net programmes to cushion the
impact of the crisis on the poor and vulnerable while maintaining
macroeconomic stability," said Heytens. "The PESF is equally vital to
help the government deliver key public policy reforms," he said.
Sound economic management has enabled Bangladesh to weather major
external shocks and sustain its growth momentum, even if it has not
been spared from the adverse effects of rising petroleum and
commodity prices, and natural disasters such as floods and cyclones,
ADB said. The loans came after a visit to Bangladesh in July by ADB
President Haruhiko Kuroda, where he offered to provide additional ADB
assistance to the government. The CSF, established in June 2009 ,
supports ADB' s developing member countries needing to increase
fiscal spending to counter the global economic crisis. To be eligible
to access the CSF, the countries must be adversely affected by the
global economic crisis, demonstrate sound macroeconomic policies and
have a countercyclical programme in place. The CSF loan has a
five-year repayment term, with a three-year grace period, and will
cost around 200 basis points over ADB's financing cost and pricing.
As the loan will be disbursed in a single trance, it will not involve
any commitment fee.
lend Bangladesh $744 million to help fight off the effects of global
recession. Of the total allocation, a $500 million loan under the
countercyclical support facility (CSF) will support the government's
efforts to mitigate the worst effects of the global economic crisis,
ADB said in a statement. Three other loans of $244 million under the
public expenditure support facility (PESF) will support government
measures to introduce economic and social policy reforms. ADB
emphasises that the reforms are essential to achieve higher and more
inclusive long-term growth and strengthen social safety net
programmes. M Musharraf Hossain Bhuiyan, secretary of Economic
Relations Division (ERD), and Paul J Heytens, ADB's country director
for Bangladesh, signed the agreements at a ceremony at ERD in Dhaka.
"The CSF loan will help the government to stimulate economic recovery
and move ahead with its social safety net programmes to cushion the
impact of the crisis on the poor and vulnerable while maintaining
macroeconomic stability," said Heytens. "The PESF is equally vital to
help the government deliver key public policy reforms," he said.
Sound economic management has enabled Bangladesh to weather major
external shocks and sustain its growth momentum, even if it has not
been spared from the adverse effects of rising petroleum and
commodity prices, and natural disasters such as floods and cyclones,
ADB said. The loans came after a visit to Bangladesh in July by ADB
President Haruhiko Kuroda, where he offered to provide additional ADB
assistance to the government. The CSF, established in June 2009 ,
supports ADB' s developing member countries needing to increase
fiscal spending to counter the global economic crisis. To be eligible
to access the CSF, the countries must be adversely affected by the
global economic crisis, demonstrate sound macroeconomic policies and
have a countercyclical programme in place. The CSF loan has a
five-year repayment term, with a three-year grace period, and will
cost around 200 basis points over ADB's financing cost and pricing.
As the loan will be disbursed in a single trance, it will not involve
any commitment fee.
Asian shares higher
Asian markets were mostly higher on Monday as optimism about the
upcoming third quarter reporting season helped investors brush off a
weak lead from Wall Street at the end of last week. The region was
also given a boost after South Korea revealed above-forecast growth
figures for the third quarter, leading to hopes other economies will
follow suit. Tokyo added 0.77 percent, Seoul one percent and
Shanghai was flat. Hong Kong and Wellington were closed for public
holidays. TOKYO: Up 0.77 percent. The Nikkei-225 rose 79. 63 points
to 10 , 362.62. SYDNEY: Down 0.60 percent. The SP/ASX200 fell 29.1
points to 4 ,830.3. SHANGHAI: Flat. The Shanghai Composite Index,
which covers both A and B shares, was up 1.72 points or 0.06 percent
to 3 , 109.57. SEOUL: Up 1.03 percent. The KOSPI ended up 16. 94
points at 1 , 657.11. TAIPEI: Up 0.25 percent. The weighted index
rose 19.12 points to 7 , 668.40. SINGAPORE: Flat. The Straits Times
Index gained 1.28 points or 0.05 percent to 2 , 716.62. BANGKOK: Up
0.43 percent. The Stock Exchange of Thailand rose 3.07 points to
close at 711.83. JAKARTA: Flat. The Jakarta Composite Index edged
down 0.24 points or 0.01 percent to 2 , 467.71. Telkom fell 1.7
percent to 8 ,500 rupiah, Bank Rakyat lost 1.3 percent to 7 ,500
and car distributor Astra rose 1.4 percent to 33 ,100. MANILA: Up
0.29 percent. The composite index added 8.54 points to 2 , 941.53.
MUMBAI: Down 0.42 percent. The 30- share Sensex fell 70.31 points
to 16 ,740.5.
upcoming third quarter reporting season helped investors brush off a
weak lead from Wall Street at the end of last week. The region was
also given a boost after South Korea revealed above-forecast growth
figures for the third quarter, leading to hopes other economies will
follow suit. Tokyo added 0.77 percent, Seoul one percent and
Shanghai was flat. Hong Kong and Wellington were closed for public
holidays. TOKYO: Up 0.77 percent. The Nikkei-225 rose 79. 63 points
to 10 , 362.62. SYDNEY: Down 0.60 percent. The SP/ASX200 fell 29.1
points to 4 ,830.3. SHANGHAI: Flat. The Shanghai Composite Index,
which covers both A and B shares, was up 1.72 points or 0.06 percent
to 3 , 109.57. SEOUL: Up 1.03 percent. The KOSPI ended up 16. 94
points at 1 , 657.11. TAIPEI: Up 0.25 percent. The weighted index
rose 19.12 points to 7 , 668.40. SINGAPORE: Flat. The Straits Times
Index gained 1.28 points or 0.05 percent to 2 , 716.62. BANGKOK: Up
0.43 percent. The Stock Exchange of Thailand rose 3.07 points to
close at 711.83. JAKARTA: Flat. The Jakarta Composite Index edged
down 0.24 points or 0.01 percent to 2 , 467.71. Telkom fell 1.7
percent to 8 ,500 rupiah, Bank Rakyat lost 1.3 percent to 7 ,500
and car distributor Astra rose 1.4 percent to 33 ,100. MANILA: Up
0.29 percent. The composite index added 8.54 points to 2 , 941.53.
MUMBAI: Down 0.42 percent. The 30- share Sensex fell 70.31 points
to 16 ,740.5.
Oil slips
Oil prices fell Monday on profit-taking and as a ceasefire took hold
in Nigeria, whose crude production has been ravaged by militant
attacks in recent years, analysts said. New York's main contract,
light sweet crude for delivery in December, shed 49 cents to 80.01
dollars a barrel. Brent North Sea crude for December lost 40 cents to
78.52 dollars in early London trade. New York crude oil hit 82
dollars on Wednesday, the highest level since October 14 , 2008 , as
the market took its cue from a slumping US currency.
in Nigeria, whose crude production has been ravaged by militant
attacks in recent years, analysts said. New York's main contract,
light sweet crude for delivery in December, shed 49 cents to 80.01
dollars a barrel. Brent North Sea crude for December lost 40 cents to
78.52 dollars in early London trade. New York crude oil hit 82
dollars on Wednesday, the highest level since October 14 , 2008 , as
the market took its cue from a slumping US currency.
Dubai unveils $6.5 b borrowing plans
The Dubai government has unveiled plans to raise 6.5 billion dollars
through bonds, Emirates Business 24 /7 reported on Monday, citing a
prospectus for potential investors. The borrowing programme will be
divided into four billion dollars in a euro medium-term note ( EMTN)
and a 2.5- billion-dollar Islamic bond issue, or sukuk, Emirates
Business said. The Dubai Government said the new EMTN debt may be
listed on the London Stock Exchange ( LSE) and the Dubai Financial
Market (DFM), the paper said. The lead arrangers for the EMTN are
Mitsubishi UFJ Securities International, Standard Chartered Bank and
UBS Investment Bank. Officials who addressed investors in Dubai on
Sunday said the lead managers of the sukuk issue are Dubai Islamic
Bank, Mitsubishi UFJ, Standard Chartered and UBS Investment Bank. "I
am sure the issue will get oversubscribed as there are eager
investors who want to pick up a portion of the Dubai debt, especially
because I am sure it will be issued at a comfortable price," a top
foreign bank official told Emirates Business.
through bonds, Emirates Business 24 /7 reported on Monday, citing a
prospectus for potential investors. The borrowing programme will be
divided into four billion dollars in a euro medium-term note ( EMTN)
and a 2.5- billion-dollar Islamic bond issue, or sukuk, Emirates
Business said. The Dubai Government said the new EMTN debt may be
listed on the London Stock Exchange ( LSE) and the Dubai Financial
Market (DFM), the paper said. The lead arrangers for the EMTN are
Mitsubishi UFJ Securities International, Standard Chartered Bank and
UBS Investment Bank. Officials who addressed investors in Dubai on
Sunday said the lead managers of the sukuk issue are Dubai Islamic
Bank, Mitsubishi UFJ, Standard Chartered and UBS Investment Bank. "I
am sure the issue will get oversubscribed as there are eager
investors who want to pick up a portion of the Dubai debt, especially
because I am sure it will be issued at a comfortable price," a top
foreign bank official told Emirates Business.
EC warns three airlines over tie-up plans
The European Commission has told British Airways, American Airlines
and Iberia that they may have to give up take-off and landing slots
to be allowed to press ahead with a transatlantic tie-up, the FT
reported on Monday. The Financial Times, which cited documents
relating to the matter, reported that the EC said an agreement
between the three groups was "likely to result in appreciable
competitive harm" on seven Europe-US transatlantic routes. The EU's
competition regulator "envisages issuing a decision finding that the
series of agreements signed have been in breach" of competition laws
and would order that the " infringements" are ended, the financial
daily added. "Remedies may include ... the transfer of airport
slots" to rival airlines, the EC added, according to the documents
obtained by the FT. The three airlines revealed on August 14 last
year that they had signed an agreement to cooperate on flights
between North America and Europe to help them to overcome soaring
fuel costs and falling demand.
and Iberia that they may have to give up take-off and landing slots
to be allowed to press ahead with a transatlantic tie-up, the FT
reported on Monday. The Financial Times, which cited documents
relating to the matter, reported that the EC said an agreement
between the three groups was "likely to result in appreciable
competitive harm" on seven Europe-US transatlantic routes. The EU's
competition regulator "envisages issuing a decision finding that the
series of agreements signed have been in breach" of competition laws
and would order that the " infringements" are ended, the financial
daily added. "Remedies may include ... the transfer of airport
slots" to rival airlines, the EC added, according to the documents
obtained by the FT. The three airlines revealed on August 14 last
year that they had signed an agreement to cooperate on flights
between North America and Europe to help them to overcome soaring
fuel costs and falling demand.
South korea's economy
South Korea's economy grew at its fastest pace for more than seven
years in the third quarter, official figures showed Monday, as Asia's
economies lead the world out of its slump. Gross domestic product
rose 2.9 percent quarter-on-quarter in July-September and 0.6
percent compared with a year earlier, the central Bank of Korea said
in an advance estimate. The quarter-on-quarter growth was the
country's fastest since 3.8 percent in January- March 2002. Asia's
fourth largest economy had recorded a 2.6 percent gain
quarter-on-quarter in April-June but the figure represented a 2.2
percent contraction year-on-year. On a year-on-year basis, Monday's
figures showed that GDP turned positive for the first time in four
quarters. "Industrial output, led by chips and automobiles, posted
robust growth in the third quarter," the bank said in a statement.
"Private consumption and facility investment also grew, contributing
to growth."
years in the third quarter, official figures showed Monday, as Asia's
economies lead the world out of its slump. Gross domestic product
rose 2.9 percent quarter-on-quarter in July-September and 0.6
percent compared with a year earlier, the central Bank of Korea said
in an advance estimate. The quarter-on-quarter growth was the
country's fastest since 3.8 percent in January- March 2002. Asia's
fourth largest economy had recorded a 2.6 percent gain
quarter-on-quarter in April-June but the figure represented a 2.2
percent contraction year-on-year. On a year-on-year basis, Monday's
figures showed that GDP turned positive for the first time in four
quarters. "Industrial output, led by chips and automobiles, posted
robust growth in the third quarter," the bank said in a statement.
"Private consumption and facility investment also grew, contributing
to growth."
ING to raise 7.5 b euros to repay govt, restructure
Dutch banking and insurance group ING said Monday it plans to
restructure its business, selling off its insurance operations and
raising up to 7.5 billion euros to pay back government emergency
funding. "ING announced today that it will move towards a separation
of its banking and insurance operations, clarifying the strategic
direction for the bank and the insurance company going forward," the
group said in a statement. In order to repay government funds extended
at the height of the global financial crisis, "ING plans to launch a
capital increase ... of up to 7.5 billion euros" (11.25 billion
dollars).
restructure its business, selling off its insurance operations and
raising up to 7.5 billion euros to pay back government emergency
funding. "ING announced today that it will move towards a separation
of its banking and insurance operations, clarifying the strategic
direction for the bank and the insurance company going forward," the
group said in a statement. In order to repay government funds extended
at the height of the global financial crisis, "ING plans to launch a
capital increase ... of up to 7.5 billion euros" (11.25 billion
dollars).
US airlines report mixed fortunes
US airlines have reported mixed fortunes between July and September
as they battle to cope with the sluggish economy at home and abroad.
Delta - the world's biggest airline operator - reported a quarterly
loss bigger than a year ago and said it would cut capacity by 3 % next
year. US Airways also lost money, but less than expected, and saw
signs of a "soft but improving economic environment". Meanwhile
low-cost airline JetBlue bucked the trend and made a profit. It cited
lower fuel costs and cheaper fares luring passengers as reasons for
its $15 m (£9.1 m) profit in the period. Oil worries Delta - which
became the world's biggest carrier when it bought Northwest Airlines
in October 2008 - lost $161 m in the third quarter, compared with
$50 m a year earlier, despite sales rising by 32 % to $7.6 bn. US
Airways lost $80 m, compared with the $866 m it haemorrhaged between
July and September in 2008. Earlier in the week, American Airline's
parent company AMR reported heavy losses for the period - losing
$359 m including one-off costs, against a profit of $31 m a year
earlier. However, Continental and the parent company of AirTran
Airways both reported modest profits - citing sharply-lower fuel
bills. Gains in the oil price - currently at about $82 a barrel -
have prompted worries about the prospect of higher jet fuel costs in
the current quarter. United Airlines and Southwest Airlines are also
among those to have reported losses in recent days - saying they
could not charge so much for fares and that they were operating fewer
flights.
as they battle to cope with the sluggish economy at home and abroad.
Delta - the world's biggest airline operator - reported a quarterly
loss bigger than a year ago and said it would cut capacity by 3 % next
year. US Airways also lost money, but less than expected, and saw
signs of a "soft but improving economic environment". Meanwhile
low-cost airline JetBlue bucked the trend and made a profit. It cited
lower fuel costs and cheaper fares luring passengers as reasons for
its $15 m (£9.1 m) profit in the period. Oil worries Delta - which
became the world's biggest carrier when it bought Northwest Airlines
in October 2008 - lost $161 m in the third quarter, compared with
$50 m a year earlier, despite sales rising by 32 % to $7.6 bn. US
Airways lost $80 m, compared with the $866 m it haemorrhaged between
July and September in 2008. Earlier in the week, American Airline's
parent company AMR reported heavy losses for the period - losing
$359 m including one-off costs, against a profit of $31 m a year
earlier. However, Continental and the parent company of AirTran
Airways both reported modest profits - citing sharply-lower fuel
bills. Gains in the oil price - currently at about $82 a barrel -
have prompted worries about the prospect of higher jet fuel costs in
the current quarter. United Airlines and Southwest Airlines are also
among those to have reported losses in recent days - saying they
could not charge so much for fares and that they were operating fewer
flights.
Spain jobless rate stays at 17.9 %
Spain's unemployment rate has remained at 17. 9 % in the third
quarter, the highest in the European Union. The number of jobless now
stands at 4.1 million, the country's statistics agency said. The
Spanish unemployment rate had risen for the previous eight quarters
after its construction and debt-fuelled economic boom ended
suddenly. Separately, a survey showed German business confidence rose
for a seventh consecutive month in October. The Ifo institute said its
monthly business climate index rose to 91.9 points in October from
91.3 in the previous month. That is the highest reading since
September 2008. Last week, the German government and leading economic
institutes revised their forecasts for this year and next upwards.
The new forecasts predict that Germany's economy will shrink by 5 %
this year, before rebounding to grow by 1.2 % next year.
quarter, the highest in the European Union. The number of jobless now
stands at 4.1 million, the country's statistics agency said. The
Spanish unemployment rate had risen for the previous eight quarters
after its construction and debt-fuelled economic boom ended
suddenly. Separately, a survey showed German business confidence rose
for a seventh consecutive month in October. The Ifo institute said its
monthly business climate index rose to 91.9 points in October from
91.3 in the previous month. That is the highest reading since
September 2008. Last week, the German government and leading economic
institutes revised their forecasts for this year and next upwards.
The new forecasts predict that Germany's economy will shrink by 5 %
this year, before rebounding to grow by 1.2 % next year.
China ready to launch Nasdaq-style index
China will launch trading on its long-awaited Nasdaq-style board on
Friday in the hope of harnessing the vast amount of liquidity
circulating in the economy for cash-strapped businesses, experts say.
ChiNext, based in the southern boomtown of Shenzhen, is expected to
give small and medium-sized companies (SMEs) access to financing and
encourage private equity firms and venture capitalists to back
start-ups, they said. "The launch of the growth enterprise board is
an important step towards implementing the national strategy on
promoting innovation," Shang Fulin, chairman of the China Securities
Regulatory Commission, said last week. The first 28 companies to list
on the board, ranging from software to medical equipment makers,
have raised 16 billion yuan (2.3 billion dollars) in their initial
public offerings -- more than double initial forecasts. "The launch
of ChiNext represents a milestone in the development of China's
financial markets and is an important part of the government's plans
to boost support for small and medium- sized firms," said Jing Ulrich,
managing director and chairman of China equities and commodities at
JP Morgan in Hong Kong. "The board will provide an additional source
of financing for younger companies while broadening the options
available to investors." Beijing has made listing rules for the second
board less stringent than for the main A and B share markets, paving
the way for SMEs to access much-needed cash. SMEs, the biggest
employers in China, struggle to obtain loans from commercial banks,
which prefer to lend money to large state-owned enterprises. ChiNext
was expected to initially weigh on A and B shares as investors
diverted funds to the new index, but analysts predicted the
phenomenon would be short-lived. "There will be a psychological impact
but it won' t be substantial," Ren Xianfang, a Beijing-based
economist at IHS Global Insight, told AFP. "Liquidity in China is
ample. We have so much liquidity looking for new investment
opportunities." The Chinese economy is awash with money after Beijing
unveiled a four-trillion-yuan stimulus package and loosened its grip
on bank lending to help ward off the effects of the global downturn.
Jackson Wong, vice president at Tanrich Securities, said the new
board would encourage private equity and venture capital firms to
fund start-ups as they "will have more ways to cash out" investments
once the company has listed. But there are fears the new board will
attract speculative traders, especially on the first day, and the
bourse has introduced rules to curb their activity by setting a limit
on share price movements for Friday. If the prices of start-up stocks
move up or down 80 percent during the first trading day, the bourse
will suspend trading until the final three minutes before the session
ends, the Shenzhen Stock Exchange has said. Two other debut-day
circuit-breakers are in place -- trading will be suspended for 30
minutes if shares in a company move up or down 20 percent from the
opening price, and then another 30 minutes for a 50- percent shift.
ChiNext has said the restrictions will help curb risks, maintain
market stability and protect investors. "The size of share offering
in the growth enterprise market is often not large; therefore, if
investors blindly follow the trend, buying and selling stocks, prices
are very vulnerable to wide swings," the exchange said. Despite the
hype, the second board was expected to have a limited impact on the
Nasdaq, analysts said, with companies looking for exposure to global
investors still likely to seek a US listing. "The growth enterprise
market is just starting and is subject to manipulation so the risks
are much higher than on the Nasdaq," IHS Global Insight's Ren said.
"For high-quality companies wanting to establish a global presence, I
think they will still look at the Nasdaq because they will have more
access to global capital."
Friday in the hope of harnessing the vast amount of liquidity
circulating in the economy for cash-strapped businesses, experts say.
ChiNext, based in the southern boomtown of Shenzhen, is expected to
give small and medium-sized companies (SMEs) access to financing and
encourage private equity firms and venture capitalists to back
start-ups, they said. "The launch of the growth enterprise board is
an important step towards implementing the national strategy on
promoting innovation," Shang Fulin, chairman of the China Securities
Regulatory Commission, said last week. The first 28 companies to list
on the board, ranging from software to medical equipment makers,
have raised 16 billion yuan (2.3 billion dollars) in their initial
public offerings -- more than double initial forecasts. "The launch
of ChiNext represents a milestone in the development of China's
financial markets and is an important part of the government's plans
to boost support for small and medium- sized firms," said Jing Ulrich,
managing director and chairman of China equities and commodities at
JP Morgan in Hong Kong. "The board will provide an additional source
of financing for younger companies while broadening the options
available to investors." Beijing has made listing rules for the second
board less stringent than for the main A and B share markets, paving
the way for SMEs to access much-needed cash. SMEs, the biggest
employers in China, struggle to obtain loans from commercial banks,
which prefer to lend money to large state-owned enterprises. ChiNext
was expected to initially weigh on A and B shares as investors
diverted funds to the new index, but analysts predicted the
phenomenon would be short-lived. "There will be a psychological impact
but it won' t be substantial," Ren Xianfang, a Beijing-based
economist at IHS Global Insight, told AFP. "Liquidity in China is
ample. We have so much liquidity looking for new investment
opportunities." The Chinese economy is awash with money after Beijing
unveiled a four-trillion-yuan stimulus package and loosened its grip
on bank lending to help ward off the effects of the global downturn.
Jackson Wong, vice president at Tanrich Securities, said the new
board would encourage private equity and venture capital firms to
fund start-ups as they "will have more ways to cash out" investments
once the company has listed. But there are fears the new board will
attract speculative traders, especially on the first day, and the
bourse has introduced rules to curb their activity by setting a limit
on share price movements for Friday. If the prices of start-up stocks
move up or down 80 percent during the first trading day, the bourse
will suspend trading until the final three minutes before the session
ends, the Shenzhen Stock Exchange has said. Two other debut-day
circuit-breakers are in place -- trading will be suspended for 30
minutes if shares in a company move up or down 20 percent from the
opening price, and then another 30 minutes for a 50- percent shift.
ChiNext has said the restrictions will help curb risks, maintain
market stability and protect investors. "The size of share offering
in the growth enterprise market is often not large; therefore, if
investors blindly follow the trend, buying and selling stocks, prices
are very vulnerable to wide swings," the exchange said. Despite the
hype, the second board was expected to have a limited impact on the
Nasdaq, analysts said, with companies looking for exposure to global
investors still likely to seek a US listing. "The growth enterprise
market is just starting and is subject to manipulation so the risks
are much higher than on the Nasdaq," IHS Global Insight's Ren said.
"For high-quality companies wanting to establish a global presence, I
think they will still look at the Nasdaq because they will have more
access to global capital."
Asian stocks continue losses
Asian markets fell for a second successive day on Thursday as another
tumble on Wall Street combined with profit-taking and below-forecast
growth figures from China. Beijing said gross domestic product grew
8.9 percent in the September quarter, which was the strongest
expansion for a year but weaker than the 9.1 percent expected by
analysts. Tokyo shed 0.64 percent, Hong Kong 0.48 percent and Seoul
1.42 percent. Shanghai was 0.62 percent off and Sydney eased 0.53
percent The losses also came after some regional markets earlier this
week touched highs not seen for more than a year. However,
commodities stocks were partially protected by crude holding above 80
dollars a barrel. TOKYO: Down 0.64 percent. The Nikkei-225 dropped
66.22 points to 10 , 267.17. HONG KONG: Down 0.48 percent. The Hang
Seng Index fell 107.59 points to 22 , 210.52. Profit-taking in
property developers also pushed the market down. SYDNEY: Down 0.53
percent. The S&P/ASX 200 lost 25.8 points to 4 ,812.8. SHANGHAI:
Down 0.62 percent. The Shanghai Composite Index, which covers both A
and B shares, was down 19.18 points to 3 , 051.41. The key index
rose 11 percent between September 30 and Tuesday. SEOUL: Down 1.42
percent. The KOSPI ended down 23.53 points at 1 , 630.33. TAIPEI:
Down 1.21 percent. The weighted index dropped 93.57 points to 7 ,
607.93. SINGAPORE: Down 0.39 percent. The Straits Times Index fell
10.58 points to 2 , 681.97. BANGKOK: Down 1.06 percent. The Stock
Exchange of Thailand fell 7.59 points to close at 708.76. KUALA
LUMPUR: Flat. The Kuala Lumpur Composite Index lost 0.04 points to 1
, 260.02. JAKARTA: Down 1.76 percent. The Jakarta Composite Index
lost 43.61 points to 2 , 433.18. MANILA: Down 1.07 percent. The
composite index lost 31.18 points to 2 , 888.72. MUMBAI: Down 1.29
percent. The 30- share Sensex fell 219.43 points to 16 , 789.74.
tumble on Wall Street combined with profit-taking and below-forecast
growth figures from China. Beijing said gross domestic product grew
8.9 percent in the September quarter, which was the strongest
expansion for a year but weaker than the 9.1 percent expected by
analysts. Tokyo shed 0.64 percent, Hong Kong 0.48 percent and Seoul
1.42 percent. Shanghai was 0.62 percent off and Sydney eased 0.53
percent The losses also came after some regional markets earlier this
week touched highs not seen for more than a year. However,
commodities stocks were partially protected by crude holding above 80
dollars a barrel. TOKYO: Down 0.64 percent. The Nikkei-225 dropped
66.22 points to 10 , 267.17. HONG KONG: Down 0.48 percent. The Hang
Seng Index fell 107.59 points to 22 , 210.52. Profit-taking in
property developers also pushed the market down. SYDNEY: Down 0.53
percent. The S&P/ASX 200 lost 25.8 points to 4 ,812.8. SHANGHAI:
Down 0.62 percent. The Shanghai Composite Index, which covers both A
and B shares, was down 19.18 points to 3 , 051.41. The key index
rose 11 percent between September 30 and Tuesday. SEOUL: Down 1.42
percent. The KOSPI ended down 23.53 points at 1 , 630.33. TAIPEI:
Down 1.21 percent. The weighted index dropped 93.57 points to 7 ,
607.93. SINGAPORE: Down 0.39 percent. The Straits Times Index fell
10.58 points to 2 , 681.97. BANGKOK: Down 1.06 percent. The Stock
Exchange of Thailand fell 7.59 points to close at 708.76. KUALA
LUMPUR: Flat. The Kuala Lumpur Composite Index lost 0.04 points to 1
, 260.02. JAKARTA: Down 1.76 percent. The Jakarta Composite Index
lost 43.61 points to 2 , 433.18. MANILA: Down 1.07 percent. The
composite index lost 31.18 points to 2 , 888.72. MUMBAI: Down 1.29
percent. The 30- share Sensex fell 219.43 points to 16 , 789.74.
Food festival starts today in BANGLADESH
A three-day British fusion food festival -- Taste of Britain Curry
Fest -- is set to start at Dhaka Sheraton Hotel today, which will
present the culinary success of British Bangladeshis in the UK.
Dhaka Sheraton Hotel and Curry Life, a British magazine on UK's
fusion food industry, are co- organising the festival. GM Quader,
civil aviation and tourism minister, is scheduled to inaugurate the
festival. "The festival will focus on the success of Bangladeshi
chefs in winning the appreciation of British people and the gradual
inclusion of our dishes in British cuisine," said Syed Belal Ahmed,
director of the festival. "The festival aims to create a fusion
between food from the east and the west." Ahmed was addressing a
press conference on the sixth British Fusion Food Festival.
"Presently, there are around 12,000 Bangladeshi restaurants in the UK.
Visitors to the festival will know how successfully Bangladeshi chefs
run the food business in Britain," said Ahmed. " The festival will
help enhance ties between Bangladesh and Britain." He also said there
are half a million Bangladeshis working in the culinary industry in
UK, while there is a dearth of skilled and efficient chefs
specialised in the eastern cuisine.
Fest -- is set to start at Dhaka Sheraton Hotel today, which will
present the culinary success of British Bangladeshis in the UK.
Dhaka Sheraton Hotel and Curry Life, a British magazine on UK's
fusion food industry, are co- organising the festival. GM Quader,
civil aviation and tourism minister, is scheduled to inaugurate the
festival. "The festival will focus on the success of Bangladeshi
chefs in winning the appreciation of British people and the gradual
inclusion of our dishes in British cuisine," said Syed Belal Ahmed,
director of the festival. "The festival aims to create a fusion
between food from the east and the west." Ahmed was addressing a
press conference on the sixth British Fusion Food Festival.
"Presently, there are around 12,000 Bangladeshi restaurants in the UK.
Visitors to the festival will know how successfully Bangladeshi chefs
run the food business in Britain," said Ahmed. " The festival will
help enhance ties between Bangladesh and Britain." He also said there
are half a million Bangladeshis working in the culinary industry in
UK, while there is a dearth of skilled and efficient chefs
specialised in the eastern cuisine.
Mutual funds lead bull-run
The Dhaka market saw a bull-run yesterday, as a verdict date
announcement on a mutual fund case triggered the investment sector
price jump. The High Court on Thursday announced that it would give
the verdict on the mutual fund case on November 4. With the bull-run,
the benchmark index of the premier bourse reached a new height of 3
,356 points, surpassing the previous highest of 3 ,326. 08 points on
October 20. The DSE General Index yesterday rose by 38.57 points, or
1.16 percent. The investment sector or mutual funds and non- banking
financial institutions (NBFIs) pulled the market up, operators said.
"On mutual fund verdict announcement, operators will be able to
announce dividends, pending for the last two years due to a legal
bar," said a DSE broker. All of the mutual funds gained more than 5
percent. The HC in August last year stayed the dividend declarations
by all mutual fund managers until disposal of a writ petition filed
with the HC challenging the modifications of mutual fund rules by
the Securities and Exchange Commission. The HC also stayed the stock
market regulator's ban on the issuance of bonus shares or rights
issues for closed-end mutual funds. The broader index of the Dhaka
Stock Exchange, DSE All Share Price Index, also gained 29.7 points,
or 1.06 percent to 2 , 813.77. Advancers beat losers 120 to 112
with four securities remained unchanged. A total of 6 ,99 , 37 ,958
shares and mutual fund units worth Tk 1 , 184.77 crore were traded on
the prime bourse. Titas Gas topped the turnover leaders with 15 , 21
,000 shares worth Tk 110.45 crore being traded. Grameen Mutual
Fund One, which advanced 20 percent, was the largest gainer, while
Al-Haj Textile, which declined 13.74 percent, was the biggest
loser. Chittagong stocks also posted rise yesterday. The CSE
Selective Categories Index gained 56.01 points, or 0.77 percent to 7
, 249.84. The CSE All Share Price Index increased 83.09 points, or
0.72 percent to 11 , 558.03. A total of 1 ,09 ,98 ,421 shares worth
Tk 114.98 crore changed hands on the Chittagong Stock Exchange. Of
the traded securities, 93 advanced, 74 declined and two remained
unchanged. AIMS 1 st Mutual Fund was the biggest gainer, rising 19.94
percent, while Niloy Cement was the largest loser, declining 19.44
percent. Bextex topped the turnover leaders with 11 ,78 , 800 shares
worth Tk 10.56 crore being traded on the port city bourse.
announcement on a mutual fund case triggered the investment sector
price jump. The High Court on Thursday announced that it would give
the verdict on the mutual fund case on November 4. With the bull-run,
the benchmark index of the premier bourse reached a new height of 3
,356 points, surpassing the previous highest of 3 ,326. 08 points on
October 20. The DSE General Index yesterday rose by 38.57 points, or
1.16 percent. The investment sector or mutual funds and non- banking
financial institutions (NBFIs) pulled the market up, operators said.
"On mutual fund verdict announcement, operators will be able to
announce dividends, pending for the last two years due to a legal
bar," said a DSE broker. All of the mutual funds gained more than 5
percent. The HC in August last year stayed the dividend declarations
by all mutual fund managers until disposal of a writ petition filed
with the HC challenging the modifications of mutual fund rules by
the Securities and Exchange Commission. The HC also stayed the stock
market regulator's ban on the issuance of bonus shares or rights
issues for closed-end mutual funds. The broader index of the Dhaka
Stock Exchange, DSE All Share Price Index, also gained 29.7 points,
or 1.06 percent to 2 , 813.77. Advancers beat losers 120 to 112
with four securities remained unchanged. A total of 6 ,99 , 37 ,958
shares and mutual fund units worth Tk 1 , 184.77 crore were traded on
the prime bourse. Titas Gas topped the turnover leaders with 15 , 21
,000 shares worth Tk 110.45 crore being traded. Grameen Mutual
Fund One, which advanced 20 percent, was the largest gainer, while
Al-Haj Textile, which declined 13.74 percent, was the biggest
loser. Chittagong stocks also posted rise yesterday. The CSE
Selective Categories Index gained 56.01 points, or 0.77 percent to 7
, 249.84. The CSE All Share Price Index increased 83.09 points, or
0.72 percent to 11 , 558.03. A total of 1 ,09 ,98 ,421 shares worth
Tk 114.98 crore changed hands on the Chittagong Stock Exchange. Of
the traded securities, 93 advanced, 74 declined and two remained
unchanged. AIMS 1 st Mutual Fund was the biggest gainer, rising 19.94
percent, while Niloy Cement was the largest loser, declining 19.44
percent. Bextex topped the turnover leaders with 11 ,78 , 800 shares
worth Tk 10.56 crore being traded on the port city bourse.
German delegation seeks shipbuilding partnership
A visiting German business delegation yesterday expressed its interest
in forming a sustainable, long-term partnership in shipbuilding and
other sectors in Bangladesh. "German companies operate with long-term
perspective, including transfer of technology and know-how and
involvement of local partners in value creation," said Peter Clasen,
head of the visiting delegation of OAV-German Asia-Pacific Business
Association. "Their approach (German companies) is not short-term
profit but a sustainable long-term partnership," he said. The
statement came at a seminar on shipbuilding industry at the country's
biggest shipbuilder Ananda Shipyard and Slipways Ltd ( ASSL) at
Meghnaghat on the outskirts of the capital. Citing cooperation
between Komrowski Group, a Hamburg-based trading and shipping company,
and Ananda Shipyard, Clasen said: "We wish further cooperation
between Bangladesh and Germany in shipbuilding and related
industries." The German delegation arrived in Dhaka yesterday on a
weeklong trip to explore business opportunities in shipbuilding,
energy, engineering and textiles in Bangladesh. Shipping Minister
Shajahan Khan and German Ambassador in Bangladesh Holger Michael were
present at the programme chaired by ASSL Chairman Abdullahel Bari.
Khan said his ministry had attached utmost attention to the
development of shipbuilding. " Bangladesh has demonstrated its skills
in building ships of international standards," he said. In the past
several years, two local shipbuilders ASSL and Western Marine
Shipyard Ltd bagged orders for making more than 40 vessels of about
$600 million mainly from European buyers. ASSL has handed a couple of
ships to its buyers in Denmark and Mozambique. Discussants at the
seminar observed that Bangladesh has the capacity to tap the global
shipbuilding market as it can provide skilled and semiskilled workers
at low-cost compared to other shipbuilding nations. Operators said
about 200 shipyards and workshops, employing about 100 ,000 skilled
and semiskilled workers, are in operation to meet demand of the
riverine country, offering a cheaper man-hour than any other
shipbuilding country. The industry estimates that ships built in
Bangladesh would be about 15-20 percent cost competitive compared
with the countries such as India, China, Korea and Singapore. "I would
like to convey my message through the German delegation to Europe and
to the maritime world that Bangladesh would play a potential role in
the global export shipbuilding market in coming years," said the
minister. "The government will extend all support enabling the sector
to thrive with quality and compete with other ship exporting
countries," Khan said. He urged the developed nations to transfer
technology to Bangladesh, which will develop the sector.
in forming a sustainable, long-term partnership in shipbuilding and
other sectors in Bangladesh. "German companies operate with long-term
perspective, including transfer of technology and know-how and
involvement of local partners in value creation," said Peter Clasen,
head of the visiting delegation of OAV-German Asia-Pacific Business
Association. "Their approach (German companies) is not short-term
profit but a sustainable long-term partnership," he said. The
statement came at a seminar on shipbuilding industry at the country's
biggest shipbuilder Ananda Shipyard and Slipways Ltd ( ASSL) at
Meghnaghat on the outskirts of the capital. Citing cooperation
between Komrowski Group, a Hamburg-based trading and shipping company,
and Ananda Shipyard, Clasen said: "We wish further cooperation
between Bangladesh and Germany in shipbuilding and related
industries." The German delegation arrived in Dhaka yesterday on a
weeklong trip to explore business opportunities in shipbuilding,
energy, engineering and textiles in Bangladesh. Shipping Minister
Shajahan Khan and German Ambassador in Bangladesh Holger Michael were
present at the programme chaired by ASSL Chairman Abdullahel Bari.
Khan said his ministry had attached utmost attention to the
development of shipbuilding. " Bangladesh has demonstrated its skills
in building ships of international standards," he said. In the past
several years, two local shipbuilders ASSL and Western Marine
Shipyard Ltd bagged orders for making more than 40 vessels of about
$600 million mainly from European buyers. ASSL has handed a couple of
ships to its buyers in Denmark and Mozambique. Discussants at the
seminar observed that Bangladesh has the capacity to tap the global
shipbuilding market as it can provide skilled and semiskilled workers
at low-cost compared to other shipbuilding nations. Operators said
about 200 shipyards and workshops, employing about 100 ,000 skilled
and semiskilled workers, are in operation to meet demand of the
riverine country, offering a cheaper man-hour than any other
shipbuilding country. The industry estimates that ships built in
Bangladesh would be about 15-20 percent cost competitive compared
with the countries such as India, China, Korea and Singapore. "I would
like to convey my message through the German delegation to Europe and
to the maritime world that Bangladesh would play a potential role in
the global export shipbuilding market in coming years," said the
minister. "The government will extend all support enabling the sector
to thrive with quality and compete with other ship exporting
countries," Khan said. He urged the developed nations to transfer
technology to Bangladesh, which will develop the sector.
Bangladesh ranks low in South Asia mobile use
Bangladesh's mobile penetration rate stood at 28 percent in 2008
lagging behind war-ravaged Afghanistan's 29 percent in South Asia,
according to a regional report. "Of course, the fact that Afghanistan
is ahead of Bangladesh in mobile penetration should cause all sorts
of palpitations in government offices in Dhaka," said the report
tilted 'Telecom Access Rankings in South Asia'. LIRNEasia posted the
report Saturday on its website based on statistics of UN
International Telecommunication Union. LIRNEasia is an ICT policy and
regulation think tank active across Asia Pacific. Bangladesh was one
of the earliest in South Asia to adopt mobile and is one of the most
densely populated countries in the world. "How the country was
overtaken by Afghanistan, a war-torn country with difficult terrain,
should cause serious re-examination of policies such as the Tk 800
SIM (subscriber identity module) tax," the report said. Pakistan's
surge to overtake Sri Lanka has petered out, leaving the Maldives
(143 active SIMs/100 people) as the undisputed leader in mobile
connectivity and Sri Lanka second with 52 SIMs per 100 people. Both
Pakistan (50 /100) and Bhutan (37 /100) are ahead of India (29 /100)
in mobile. "This shows that India cannot afford to let up the pace
of 10 million connections a month for some time. If it does, it
might be overtaken by Afghanistan (29 / 100) and even Bangladesh (28
/100) ," the report said. On the fixed side, assisted by CDMA (code
division multiple access) phones that are counted as fixed, Sri Lanka
is the leader (17 connections per 100 people), followed by the
Maldives (15 per 100). In the fixed ranking, Afghanistan is occupying
the cellar (0.37 /100 people) behind Bangladesh ( 0.84 /100) , while
Pakistan (2.5 /100) is behind Nepal (2.8 /100). India is the only
country showing negative growth (-2 percent) in fixed side over the
2003- 2008 period. From 2003 to 2008 , the number of active SIMs
has increased by over 12 times, while the number of fixed
connections has decreased marginally. The negative growth in India is
wiping out all the gains in the rest of South Asia.
lagging behind war-ravaged Afghanistan's 29 percent in South Asia,
according to a regional report. "Of course, the fact that Afghanistan
is ahead of Bangladesh in mobile penetration should cause all sorts
of palpitations in government offices in Dhaka," said the report
tilted 'Telecom Access Rankings in South Asia'. LIRNEasia posted the
report Saturday on its website based on statistics of UN
International Telecommunication Union. LIRNEasia is an ICT policy and
regulation think tank active across Asia Pacific. Bangladesh was one
of the earliest in South Asia to adopt mobile and is one of the most
densely populated countries in the world. "How the country was
overtaken by Afghanistan, a war-torn country with difficult terrain,
should cause serious re-examination of policies such as the Tk 800
SIM (subscriber identity module) tax," the report said. Pakistan's
surge to overtake Sri Lanka has petered out, leaving the Maldives
(143 active SIMs/100 people) as the undisputed leader in mobile
connectivity and Sri Lanka second with 52 SIMs per 100 people. Both
Pakistan (50 /100) and Bhutan (37 /100) are ahead of India (29 /100)
in mobile. "This shows that India cannot afford to let up the pace
of 10 million connections a month for some time. If it does, it
might be overtaken by Afghanistan (29 / 100) and even Bangladesh (28
/100) ," the report said. On the fixed side, assisted by CDMA (code
division multiple access) phones that are counted as fixed, Sri Lanka
is the leader (17 connections per 100 people), followed by the
Maldives (15 per 100). In the fixed ranking, Afghanistan is occupying
the cellar (0.37 /100 people) behind Bangladesh ( 0.84 /100) , while
Pakistan (2.5 /100) is behind Nepal (2.8 /100). India is the only
country showing negative growth (-2 percent) in fixed side over the
2003- 2008 period. From 2003 to 2008 , the number of active SIMs
has increased by over 12 times, while the number of fixed
connections has decreased marginally. The negative growth in India is
wiping out all the gains in the rest of South Asia.
ETP issue irks apparel buyers
A delay in setting up effluent treatment plants ( ETPs) is annoying
international apparel buyers as they have been putting pressure on
manufacturers over the years to make products following
internationally recognised compliances, industry insiders said.
Although most of the apparel factories are already following other
compliance issues like avoiding child labour in line with the demand
of the buyers, very few have set up ETPs until now, said an
international buyer requesting anonymity. "The progress in setting up
ETPs at the factories is very slow. It needs pace as the customers
are becoming more environment conscious," the buyer said. Meanwhile,
the government has made it mandatory to set up ETPs in industrial
units such as textile and dyeing factories that involve wet
processing. A previous government decision has directed the industrial
units to set up ETPs within June 30 this year, but many factories
failed to do so within the stipulated time. Recently, Bangladesh
Textile Mills Association ( BTMA) in a letter informed the
parliamentary standing committee on environment and forest ministry
that a total of 205 out of 1 ,300 members of the BTMA need to set up
ETPs. The BTMA also informed the standing committee that 64 factories
have already set up ETPs, 24 are constructing the plants, three are
importing machinery, six are making infrastructure and five have
opened letters of credit for importing machinery. The association in
the letter recommended that the government set up four central ETPs
in four zones -- Dhaka, Narsingdi, Savar and Joydevpur -- that the
industrial units can use. The BTMA also suggested allowing duty-free
import of chemicals used in the ETPs to reduce the costs of
production, according to the letter. BTMA President Abdul Hai Sarker
claimed that 70 percent factories have already set up ETPs. He said
it takes a lot of money and time to set up ETPs and many small
factories have no capacity to build the ETPs on their own. They need
collective efforts, he added. "So we are demanding central ETPs and
loans at a lower interest rate," Sarker said. Meanwhile, the central
bank on August 3 ordered all commercial banks to provide loans up to
Tk 1 crore at a 9 percent interest rate for setting up ETP.
President of Bangladesh Paribesh Andolon (a movement to protect
environment) Muzaffer Ahmed said the international buyers have been
putting pressure on the manufacturers for years to set up ETPs for
protecting the environment. He said it requires some local and
international technologies for setting up ETPs at the factories and
many small units have no capacity to set up such plants. This is true
that some new factories are starting their production with new
technologies and ETPs, he said. The small factories, which are
unable to set up ETPs, can relocate their units near a central ETP,
he added. Speaking at the 7 th Global Editors' Forum titled 'The
Politics of Climate Change and Energy Security' in Denmark on October
11 , State Minister for Environment Hasan Mahmud had said the
government will shut down the factories that will not set up ETPs.
international apparel buyers as they have been putting pressure on
manufacturers over the years to make products following
internationally recognised compliances, industry insiders said.
Although most of the apparel factories are already following other
compliance issues like avoiding child labour in line with the demand
of the buyers, very few have set up ETPs until now, said an
international buyer requesting anonymity. "The progress in setting up
ETPs at the factories is very slow. It needs pace as the customers
are becoming more environment conscious," the buyer said. Meanwhile,
the government has made it mandatory to set up ETPs in industrial
units such as textile and dyeing factories that involve wet
processing. A previous government decision has directed the industrial
units to set up ETPs within June 30 this year, but many factories
failed to do so within the stipulated time. Recently, Bangladesh
Textile Mills Association ( BTMA) in a letter informed the
parliamentary standing committee on environment and forest ministry
that a total of 205 out of 1 ,300 members of the BTMA need to set up
ETPs. The BTMA also informed the standing committee that 64 factories
have already set up ETPs, 24 are constructing the plants, three are
importing machinery, six are making infrastructure and five have
opened letters of credit for importing machinery. The association in
the letter recommended that the government set up four central ETPs
in four zones -- Dhaka, Narsingdi, Savar and Joydevpur -- that the
industrial units can use. The BTMA also suggested allowing duty-free
import of chemicals used in the ETPs to reduce the costs of
production, according to the letter. BTMA President Abdul Hai Sarker
claimed that 70 percent factories have already set up ETPs. He said
it takes a lot of money and time to set up ETPs and many small
factories have no capacity to build the ETPs on their own. They need
collective efforts, he added. "So we are demanding central ETPs and
loans at a lower interest rate," Sarker said. Meanwhile, the central
bank on August 3 ordered all commercial banks to provide loans up to
Tk 1 crore at a 9 percent interest rate for setting up ETP.
President of Bangladesh Paribesh Andolon (a movement to protect
environment) Muzaffer Ahmed said the international buyers have been
putting pressure on the manufacturers for years to set up ETPs for
protecting the environment. He said it requires some local and
international technologies for setting up ETPs at the factories and
many small units have no capacity to set up such plants. This is true
that some new factories are starting their production with new
technologies and ETPs, he said. The small factories, which are
unable to set up ETPs, can relocate their units near a central ETP,
he added. Speaking at the 7 th Global Editors' Forum titled 'The
Politics of Climate Change and Energy Security' in Denmark on October
11 , State Minister for Environment Hasan Mahmud had said the
government will shut down the factories that will not set up ETPs.
Landline maker set for automation
Telephone Shilpa Sangstha Limited (TSS), the state-run telephone
equipment manufacturer, is set to go under an automated production
system by December, eyeing production of more than a thousand
landline sets a day. "An automated system by the year-end will enable
our company to make telecom equipment," TSS Managing Director
Mohammad Ismail told The Daily Star. TSS is the prime supplier of
land phone sets and analog system equipment to Bangladesh
Telecommuni-cations Company Limited (BTCL), formerly Bangladesh
Telegraph and Telephone Board (BTTB). After being inactive for a long
time, TSS restored its production last week. In the late 1980 s, the
introduction of digital telephony by the government but the absence
of any initiative to raise capacity has led to such inactiveness of
the lone telephone equipment maker in the public sector. The last
caretaker government tried to find a strategic partner for the
company. But no local or foreign company suitably responded to this
move. Meanwhile, the latest move by the present government, in line
with its electoral pledge to make Bangladesh a digital one, will
breathe a new life. With the automation, TSS handset production
capacity is expected to rise to 1 ,000 units per day from the
existing 50. Presently, 14.61 lakh customers are using land phones.
BTCL enjoys a 8.72 lakh customer base, while private landline
operators hold the rest. Besides the automation move, a Tk 25 crore
project has been taken up for the TSS under which base stations will
be supplied to TeleTalk, the state-owned mobile operator. According
to TSS officials, this project may create a momentum in the company's
activation further. The parliamentary standing committee on the
telecommunication ministry earlier announced a plan to reinvigorate
the government entity. This body recommended manufacture of mobile
phone sets and low price laptop by the TSS in association with a
foreign company. TSS was established in 1967 as Telephone Industries
Corporation under a joint venture.
equipment manufacturer, is set to go under an automated production
system by December, eyeing production of more than a thousand
landline sets a day. "An automated system by the year-end will enable
our company to make telecom equipment," TSS Managing Director
Mohammad Ismail told The Daily Star. TSS is the prime supplier of
land phone sets and analog system equipment to Bangladesh
Telecommuni-cations Company Limited (BTCL), formerly Bangladesh
Telegraph and Telephone Board (BTTB). After being inactive for a long
time, TSS restored its production last week. In the late 1980 s, the
introduction of digital telephony by the government but the absence
of any initiative to raise capacity has led to such inactiveness of
the lone telephone equipment maker in the public sector. The last
caretaker government tried to find a strategic partner for the
company. But no local or foreign company suitably responded to this
move. Meanwhile, the latest move by the present government, in line
with its electoral pledge to make Bangladesh a digital one, will
breathe a new life. With the automation, TSS handset production
capacity is expected to rise to 1 ,000 units per day from the
existing 50. Presently, 14.61 lakh customers are using land phones.
BTCL enjoys a 8.72 lakh customer base, while private landline
operators hold the rest. Besides the automation move, a Tk 25 crore
project has been taken up for the TSS under which base stations will
be supplied to TeleTalk, the state-owned mobile operator. According
to TSS officials, this project may create a momentum in the company's
activation further. The parliamentary standing committee on the
telecommunication ministry earlier announced a plan to reinvigorate
the government entity. This body recommended manufacture of mobile
phone sets and low price laptop by the TSS in association with a
foreign company. TSS was established in 1967 as Telephone Industries
Corporation under a joint venture.
Grameen Foundation teams up with USAID
The US Agency for International Development ( USAID) and Grameen
Foundation announced a new private-public partnership to support
local currency financing to micro-finance institutions ( MFIs)
throughout the developing world, says a press release. Alonzo
Fulgham, acting administrator of USAID, and Alex Counts, chief
executive officer and president of Grameen Foundation, signed a
memorandum of understanding recently to formalise the collaboration.
The $162.5 million joint guarantee agreement will help MFIs around
the world gain greater access to financing and address some of the
effects of tightening credit markets.
Foundation announced a new private-public partnership to support
local currency financing to micro-finance institutions ( MFIs)
throughout the developing world, says a press release. Alonzo
Fulgham, acting administrator of USAID, and Alex Counts, chief
executive officer and president of Grameen Foundation, signed a
memorandum of understanding recently to formalise the collaboration.
The $162.5 million joint guarantee agreement will help MFIs around
the world gain greater access to financing and address some of the
effects of tightening credit markets.
Gas crisis forces Monno Fabrics into layoff
The gas supplying authority yesterday approved a solution for Monno
Fabrics to ease a severe gas pressure crisis that forced the leading
textile factory to suspend operations from October 22. Established in
1994 , Monno Fabrics was the largest customer of Titas Gas
Transmission and Distribution Company Ltd (TGTDCL) in Manikganj area,
said Moynul Islam, the company's vice- chairman. "We had contacted
relevant ministries and the Titas Gas office to increase gas
pressures in our factory, but no-one responded," he told The Daily
Star. "Ultimately, we suspended operations." Influenced by news of the
lay-off, shares of Monno Fabrics dropped 10.16 percent to Tk 108. 25
on the Dhaka Stock Exchange yesterday. Islam said although workers
were sitting idle because of "zero gas pressure", Monno Fabrics paid
them for the last six months as they expected the situation to
improve. TGTDCL Managing Director Aziz Khan told The Daily Star that
a proposal to solve Monno's problems with gas pressure reached him on
September 24 , and he sought clarifications on who will bear the
costs of the solution. With the clarifications now available, TGTDCL
was to pass a judgment in favour of Monno Fabrics, where a kilometre
of extra gas pipeline will be installed and the district regulatory
station will be modified, through which gas is supplied to the two
main factories in the area: Monno Fabrics and an unit of Akiz Group.
"We are approving Monno's proposal tonight ( last night)," said Khan.
"It is our responsibility to keep Monno Fabrics alive." Islam said if
TGTDCL ensures a continuous gas supply, it will take the factory a
month to reopen. He also said the company will have to follow a
"legal process" required to reopen a suspended factory. Low
gas-pressure has come as a huge setback to the manufacturing sector.
The boiler of the factory needs a supply of gas at a pressure of 15
pounds per square inch (PSI) while the generator requires 20 PSI --
which TGTDCL was unable to ensure. In March, TGTDCL attempted to
resolve the problem by installing pressure-related equipment -- low
differential regulator, but it did not work. The total investment by
Monno Fabrics has reached Tk 500 crore, Islam said. Prior to the
suspension, the total number of workers at the factory was 2 ,500.
The factory's production capacity was 15- lakh yards of fabric a
month, Islam said. Shares of Monno Fabrics have been falling over the
last four trading days. On October 20 , Monno Fabrics shares came
down by 4.29 percent to Tk 145 on the DSE, while the price declined
by 6.21 percent to Tk 136 on October 21 and by 11.40 percent to
Tk 120.50 on October 22.
Fabrics to ease a severe gas pressure crisis that forced the leading
textile factory to suspend operations from October 22. Established in
1994 , Monno Fabrics was the largest customer of Titas Gas
Transmission and Distribution Company Ltd (TGTDCL) in Manikganj area,
said Moynul Islam, the company's vice- chairman. "We had contacted
relevant ministries and the Titas Gas office to increase gas
pressures in our factory, but no-one responded," he told The Daily
Star. "Ultimately, we suspended operations." Influenced by news of the
lay-off, shares of Monno Fabrics dropped 10.16 percent to Tk 108. 25
on the Dhaka Stock Exchange yesterday. Islam said although workers
were sitting idle because of "zero gas pressure", Monno Fabrics paid
them for the last six months as they expected the situation to
improve. TGTDCL Managing Director Aziz Khan told The Daily Star that
a proposal to solve Monno's problems with gas pressure reached him on
September 24 , and he sought clarifications on who will bear the
costs of the solution. With the clarifications now available, TGTDCL
was to pass a judgment in favour of Monno Fabrics, where a kilometre
of extra gas pipeline will be installed and the district regulatory
station will be modified, through which gas is supplied to the two
main factories in the area: Monno Fabrics and an unit of Akiz Group.
"We are approving Monno's proposal tonight ( last night)," said Khan.
"It is our responsibility to keep Monno Fabrics alive." Islam said if
TGTDCL ensures a continuous gas supply, it will take the factory a
month to reopen. He also said the company will have to follow a
"legal process" required to reopen a suspended factory. Low
gas-pressure has come as a huge setback to the manufacturing sector.
The boiler of the factory needs a supply of gas at a pressure of 15
pounds per square inch (PSI) while the generator requires 20 PSI --
which TGTDCL was unable to ensure. In March, TGTDCL attempted to
resolve the problem by installing pressure-related equipment -- low
differential regulator, but it did not work. The total investment by
Monno Fabrics has reached Tk 500 crore, Islam said. Prior to the
suspension, the total number of workers at the factory was 2 ,500.
The factory's production capacity was 15- lakh yards of fabric a
month, Islam said. Shares of Monno Fabrics have been falling over the
last four trading days. On October 20 , Monno Fabrics shares came
down by 4.29 percent to Tk 145 on the DSE, while the price declined
by 6.21 percent to Tk 136 on October 21 and by 11.40 percent to
Tk 120.50 on October 22.
Oil slips from $82
World oil prices slid Thursday on profit-taking after soaring
overnight to 82 dollars per barrel, striking a one-year peak on the
back of sliding US energy reserves and the weak greenback, traders
said. New York's main contract, light sweet crude for December
delivery, fell 1.25 dollars to 80.12 dollars a barrel. The contract
had touched 82.00 dollars exactly on Wednesday -- a level last seen
in October 2008.
overnight to 82 dollars per barrel, striking a one-year peak on the
back of sliding US energy reserves and the weak greenback, traders
said. New York's main contract, light sweet crude for December
delivery, fell 1.25 dollars to 80.12 dollars a barrel. The contract
had touched 82.00 dollars exactly on Wednesday -- a level last seen
in October 2008.
Russia is out of recession
Russia is out of recession and its economy will grow by two percent
in the fourth quarter owing to a rise in oil prices, Finance Minister
Alexei Kudrin was quoted as saying on Saturday. "We now see that the
Russian economy is starting to grow... it is out of recession,"
Kudrin told the Interfax news agency. "In the fourth quarter, we
already expect growth above two percent, mainly due to rising oil
prices," he added. "As long as oil prices range between 70 and 80
dollars per barrel, there will be growth," the finance minister said,
claiming any drop off would be a result of market "speculation."
Kudrin said that is why the government had made its growth forecasts
based on oil prices remaining at 58 to 60 dollars -- oil accounts
for around 60 percent of Russia's total exports. The Russian
economy, which is also driven by exports of gas and other
commodities, was badly hit by the global financial crisis after
enjoying years of strong growth but officials have said the worst of
the crisis might be over.
in the fourth quarter owing to a rise in oil prices, Finance Minister
Alexei Kudrin was quoted as saying on Saturday. "We now see that the
Russian economy is starting to grow... it is out of recession,"
Kudrin told the Interfax news agency. "In the fourth quarter, we
already expect growth above two percent, mainly due to rising oil
prices," he added. "As long as oil prices range between 70 and 80
dollars per barrel, there will be growth," the finance minister said,
claiming any drop off would be a result of market "speculation."
Kudrin said that is why the government had made its growth forecasts
based on oil prices remaining at 58 to 60 dollars -- oil accounts
for around 60 percent of Russia's total exports. The Russian
economy, which is also driven by exports of gas and other
commodities, was badly hit by the global financial crisis after
enjoying years of strong growth but officials have said the worst of
the crisis might be over.
Japan Airlines to restructure under new state- backed agency
Ailing Japan Airlines will restructure itself under a state-backed
corporate turnaround firm while the government mulls a special law to
cut the carrier's high pension payouts, reports said Sunday. The
Japanese government, which will announce a turnaround plan for JAL by
the end of this week, will also consider an injection of public
funds after the plan is finalised, the Nikkei business daily reported
without citing sources. Local media reported that the state-backed
Enterprise Turnaround Initiative Corp. of Japan will be in charge of
breathing life back into the carrier. The government launched the
quasi-public agency earlier this month to help debt-laden companies
that are seen as having the potential to recover, designed to ensure
transparency in negotiating debt-relief measures among creditors.
corporate turnaround firm while the government mulls a special law to
cut the carrier's high pension payouts, reports said Sunday. The
Japanese government, which will announce a turnaround plan for JAL by
the end of this week, will also consider an injection of public
funds after the plan is finalised, the Nikkei business daily reported
without citing sources. Local media reported that the state-backed
Enterprise Turnaround Initiative Corp. of Japan will be in charge of
breathing life back into the carrier. The government launched the
quasi-public agency earlier this month to help debt-laden companies
that are seen as having the potential to recover, designed to ensure
transparency in negotiating debt-relief measures among creditors.
British PM vows economic upturn by 2010
Gordon Brown has promised the economy will return to growth by the
turn of the year, in his first reaction to news that the UK is still
in recession. His podcast was released on the Number 10 website a day
after official figures showed the economy was still shrinking. The
prime minister accepted times were tough but said the battle to stop
"a second Great Depression" was being won. But the Tories said the
recovery was set to be "feeble" and the UK was lagging behind other
leading countries. In his message, Mr Brown pledged to take action
against excessive bank bonuses and end "sharp practices" by credit
card operators. The prime minister said they should stop raising
interest rates on existing debts without explanation and issuing
unsolicited credit card cheques. BBC political correspondent Gary
O'Donoghue said there were no details of how the issue would be
tackled ahead of an expected announcement on Tuesday. Previously
ministers have suggested banning credit card cheques. Wall Street
Crash Mr Brown said: "We are announcing measures to make the credit
and store card companies clean up their act to get you a fairer deal.
"Sharp practices by lenders - such as hiking interest rates on
existing debts without explanation, sending out unsolicited credit
card cheques and raising credit card limits without being asked -
these sharp practices should end." " It would be suicidal to put
recovery at risk by suddenly cutting off the funding and investment
that is supporting young people, families and businesses " Gordon
Brown The podcast was released on the 80 th anniversary of the Wall
Street Crash and came after news that the UK economy shrank by 0.4 %
in the third quarter of 2009 - making the recession the longest since
records began. "My pledge to you is to make reform of the financial
sector a reality and to see Britain's economy return to growth by the
turn of the year," Mr Brown said. He said it would be "suicidal" to
start cutting spending, as the Conservatives have suggested.
"Although there are signs that confidence is beginning to return in
some areas, we need to be cautious," he said. "Now, more than ever,
is the time for steady and clear policies. That is why it would be
suicidal to put recovery at risk by suddenly cutting off the funding
and investment that is supporting young people, families and
businesses through the most challenging times in a generation." He
also insisted the fight to prevent "a second Great Depression" was
being won as a result of international co-operation. 'Feeble
recovery' Shadow Business Secretary Ken Clarke said he could not say
when the UK would come out of recession but that the prospects for
growth in 2010 were not encouraging. "Sooner or later we are going
to start getting a very feeble recovery but it is going to be feeble
and fragile," he told Sky News. "We are worse affected than pretty
well anybody else in the Western world, for some perfectly practical
reasons, part of which is the colossal scale of the public debt."
Substantial measures were needed to get banks lending again and to
help young people find work, Mr Clarke added, but he said he feared
nothing would happen before the next election as the government was
"inactive" and Mr Brown "burnt-out".
turn of the year, in his first reaction to news that the UK is still
in recession. His podcast was released on the Number 10 website a day
after official figures showed the economy was still shrinking. The
prime minister accepted times were tough but said the battle to stop
"a second Great Depression" was being won. But the Tories said the
recovery was set to be "feeble" and the UK was lagging behind other
leading countries. In his message, Mr Brown pledged to take action
against excessive bank bonuses and end "sharp practices" by credit
card operators. The prime minister said they should stop raising
interest rates on existing debts without explanation and issuing
unsolicited credit card cheques. BBC political correspondent Gary
O'Donoghue said there were no details of how the issue would be
tackled ahead of an expected announcement on Tuesday. Previously
ministers have suggested banning credit card cheques. Wall Street
Crash Mr Brown said: "We are announcing measures to make the credit
and store card companies clean up their act to get you a fairer deal.
"Sharp practices by lenders - such as hiking interest rates on
existing debts without explanation, sending out unsolicited credit
card cheques and raising credit card limits without being asked -
these sharp practices should end." " It would be suicidal to put
recovery at risk by suddenly cutting off the funding and investment
that is supporting young people, families and businesses " Gordon
Brown The podcast was released on the 80 th anniversary of the Wall
Street Crash and came after news that the UK economy shrank by 0.4 %
in the third quarter of 2009 - making the recession the longest since
records began. "My pledge to you is to make reform of the financial
sector a reality and to see Britain's economy return to growth by the
turn of the year," Mr Brown said. He said it would be "suicidal" to
start cutting spending, as the Conservatives have suggested.
"Although there are signs that confidence is beginning to return in
some areas, we need to be cautious," he said. "Now, more than ever,
is the time for steady and clear policies. That is why it would be
suicidal to put recovery at risk by suddenly cutting off the funding
and investment that is supporting young people, families and
businesses through the most challenging times in a generation." He
also insisted the fight to prevent "a second Great Depression" was
being won as a result of international co-operation. 'Feeble
recovery' Shadow Business Secretary Ken Clarke said he could not say
when the UK would come out of recession but that the prospects for
growth in 2010 were not encouraging. "Sooner or later we are going
to start getting a very feeble recovery but it is going to be feeble
and fragile," he told Sky News. "We are worse affected than pretty
well anybody else in the Western world, for some perfectly practical
reasons, part of which is the colossal scale of the public debt."
Substantial measures were needed to get banks lending again and to
help young people find work, Mr Clarke added, but he said he feared
nothing would happen before the next election as the government was
"inactive" and Mr Brown "burnt-out".
US home sales unexpectedly higher
Sales of previously-owned US homes unexpectedly surged last month to
the highest level in more than two years. The National Association of
Realtors said sales rose 9.4 % to an annual rate of 5.57 million
last month, up from a rate of 5.09 million in August. Analysts had
been expecting a rise in the seasonally adjusted annual rate to 5.35
million in September. The average sale price dropped 8.5 % from a
year ago to $174 , 900 (£106 ,937) , the smallest annual drop in 13
months. 'Temporary dip' Some will see the data as more evidence of a
US housing recovery. However, much of the gain was attributed to a
tax credit that is due to expire on 1 December. "Much of the momentum
is from people responding to the first-time buyer tax credit, which
is freeing many sellers to make a trade and buy another home," said
the association's chief economist Lawrence Yun. "We are hopeful the
tax credit will be extended and possibly expanded to more buyers, at
least through the middle of next year." If the tax credit is not
extended, then house sales may fall, analysts said. "If the credit is
allowed to expire, home sales will probably dip temporarily in the
following months," said Brian Wesbury at First Trust Portfolios.
"However, the underlying trend will be upward over the next couple of
years as potential homebuyers no longer need to fear widespread deep
national home price declines. "
the highest level in more than two years. The National Association of
Realtors said sales rose 9.4 % to an annual rate of 5.57 million
last month, up from a rate of 5.09 million in August. Analysts had
been expecting a rise in the seasonally adjusted annual rate to 5.35
million in September. The average sale price dropped 8.5 % from a
year ago to $174 , 900 (£106 ,937) , the smallest annual drop in 13
months. 'Temporary dip' Some will see the data as more evidence of a
US housing recovery. However, much of the gain was attributed to a
tax credit that is due to expire on 1 December. "Much of the momentum
is from people responding to the first-time buyer tax credit, which
is freeing many sellers to make a trade and buy another home," said
the association's chief economist Lawrence Yun. "We are hopeful the
tax credit will be extended and possibly expanded to more buyers, at
least through the middle of next year." If the tax credit is not
extended, then house sales may fall, analysts said. "If the credit is
allowed to expire, home sales will probably dip temporarily in the
following months," said Brian Wesbury at First Trust Portfolios.
"However, the underlying trend will be upward over the next couple of
years as potential homebuyers no longer need to fear widespread deep
national home price declines. "
Oil price rises above $81 level
The price of oil has risen above $81 a barrel, a new high for the
year, as hopes rise that the global economic recovery is picking up
pace. US light crude rose to $81.43 a barrel, before slipping back
to $80.50. London Brent also climbed before dropping back to $78.82
a barrel. The price was boosted by figures released on Thursday
showing China's economic growth had accelerated. But a strengthening
dollar caused the price to fall in afternoon trading. The price of oil
has risen in recent weeks, largely on the back of strong company
results in the US which have fuelled optimism for the global economic
recovery. But there are concerns that sentiment, rather than
fundamentals, is driving the oil price, and that once these
fundamentals re- establish themselves, the price may fall. These
include spare capacity, stock piles of oil and weak demand among
industrialised nations.
year, as hopes rise that the global economic recovery is picking up
pace. US light crude rose to $81.43 a barrel, before slipping back
to $80.50. London Brent also climbed before dropping back to $78.82
a barrel. The price was boosted by figures released on Thursday
showing China's economic growth had accelerated. But a strengthening
dollar caused the price to fall in afternoon trading. The price of oil
has risen in recent weeks, largely on the back of strong company
results in the US which have fuelled optimism for the global economic
recovery. But there are concerns that sentiment, rather than
fundamentals, is driving the oil price, and that once these
fundamentals re- establish themselves, the price may fall. These
include spare capacity, stock piles of oil and weak demand among
industrialised nations.
Europe backs down on piracy plans
The European Parliament has given the green light for member states
to cut persistent file-sharers off from the net. It has dropped an
amendment to its Telcoms Package which would have made it hard for
countries to cut off pirates without court authority. It follows
pressure from countries keen to adopt tough anti-piracy laws. The
French government has just approved plans which could see pirates
removed from the net for up to a year. The UK's file-sharing policy
is also likely to include a clause about disconnecting persistent
offenders. An amendment to the European Parliament's forthcoming
telecoms legislation was designed to protect citizens against being
automatically cut off from the net. Amendment 138 read: "Any such
measures liable to restrict those fundamental rights or freedoms may
only be taken in exceptional circumstances...and shall be subject to
adequate procedural safeguards in conformity with the European
Convention for the Protection of Human Rights.. including effective
judicial protection and due process. " Dropping it effectively means
that individual countries would be able to ask internet service
providers to remove users deemed to be persistent pirates without
needing a prior court order. Persistent problem " Without compelling
services piracy will not be beaten " Mark Mulligan, Forrester
Research There has been much debate around Europe as to whether
internet access is a fundamental right. The European Parliament has
already adopted a provision stating that internet access is "
critical for the practical exercise of a wide array of fundamental
rights". UK prime minister Gordon Brown has said that people are as
entitled to internet access as to gas, water and electricity. At the
same time Business Secretary Peter Mandelson has moved to toughen up
anti- piracy legislation to include the ability to remove persistent
file-sharers from the net. According to figures from analyst firm
Forrester, 14 % of European internet users engage in illegal
file-sharing. Legislation may not be the answer, thinks Forrester
analyst Mark Mulligan. "Piracy will not be solved by legislation
alone. Without compelling services piracy will not be beaten," he
said. There have been a flurry of announcements about legitimate
services in recent months, including Sky's SkyTunes service and
tie-ups between the likes of internet service provider
CarphoneWarehouse and music service Napster. New methods Peer-to-peer
networks are likely to be the main targets of any anti-piracy
legislation. At network level, internet service providers are able,
if asked, to identify the particular machines from which music or
other content is being illegally downloaded. But non-network piracy
methods, including using instant messaging, e-mail, music blogs,
bluetooth and iPod ripping, are on the rise. It is likely that
legislation will be too slow to catch pirates, thinks Mr Mulligan.
"Technology just moves quicker. Already we are seeing around 20
different alternatives to peer-to-peer piracy," he said. This week
France's constitutional court approved its revised anti-piracy plans.
The proposed legislation operates under a " three strikes" system. A
new state agency would first send illegal file-sharers a warning
e-mail, then a letter and finally cut off their connection if they
were caught a third time. Under the revised law, a judge must rule on
the issue of whether to disconnect users. The UK's policy on
file-sharing is due to be revealed next month.
to cut persistent file-sharers off from the net. It has dropped an
amendment to its Telcoms Package which would have made it hard for
countries to cut off pirates without court authority. It follows
pressure from countries keen to adopt tough anti-piracy laws. The
French government has just approved plans which could see pirates
removed from the net for up to a year. The UK's file-sharing policy
is also likely to include a clause about disconnecting persistent
offenders. An amendment to the European Parliament's forthcoming
telecoms legislation was designed to protect citizens against being
automatically cut off from the net. Amendment 138 read: "Any such
measures liable to restrict those fundamental rights or freedoms may
only be taken in exceptional circumstances...and shall be subject to
adequate procedural safeguards in conformity with the European
Convention for the Protection of Human Rights.. including effective
judicial protection and due process. " Dropping it effectively means
that individual countries would be able to ask internet service
providers to remove users deemed to be persistent pirates without
needing a prior court order. Persistent problem " Without compelling
services piracy will not be beaten " Mark Mulligan, Forrester
Research There has been much debate around Europe as to whether
internet access is a fundamental right. The European Parliament has
already adopted a provision stating that internet access is "
critical for the practical exercise of a wide array of fundamental
rights". UK prime minister Gordon Brown has said that people are as
entitled to internet access as to gas, water and electricity. At the
same time Business Secretary Peter Mandelson has moved to toughen up
anti- piracy legislation to include the ability to remove persistent
file-sharers from the net. According to figures from analyst firm
Forrester, 14 % of European internet users engage in illegal
file-sharing. Legislation may not be the answer, thinks Forrester
analyst Mark Mulligan. "Piracy will not be solved by legislation
alone. Without compelling services piracy will not be beaten," he
said. There have been a flurry of announcements about legitimate
services in recent months, including Sky's SkyTunes service and
tie-ups between the likes of internet service provider
CarphoneWarehouse and music service Napster. New methods Peer-to-peer
networks are likely to be the main targets of any anti-piracy
legislation. At network level, internet service providers are able,
if asked, to identify the particular machines from which music or
other content is being illegally downloaded. But non-network piracy
methods, including using instant messaging, e-mail, music blogs,
bluetooth and iPod ripping, are on the rise. It is likely that
legislation will be too slow to catch pirates, thinks Mr Mulligan.
"Technology just moves quicker. Already we are seeing around 20
different alternatives to peer-to-peer piracy," he said. This week
France's constitutional court approved its revised anti-piracy plans.
The proposed legislation operates under a " three strikes" system. A
new state agency would first send illegal file-sharers a warning
e-mail, then a letter and finally cut off their connection if they
were caught a third time. Under the revised law, a judge must rule on
the issue of whether to disconnect users. The UK's policy on
file-sharing is due to be revealed next month.
Record recession for UK economy
The UK economy unexpectedly contracted by 0.4 % between July and
September, according to official figures, meaning the country is still
in recession. It is the first time UK gross domestic product (GDP) has
contracted for six consecutive quarters, since quarterly figures were
first recorded in 1955. But the figures could still be revised up or
down at a later date, because this figure is only the first estimate.
GDP measures the total amount of goods and services produced by a
country. The pound fell sharply after the figures were released,
reflecting the fact that many observers had expected the UK to have
grown during the quarter. It was down 1.7 % against the dollar, at $1.
6323 , and down 1.9 % against the euro, at 1. 0859 euros. Quarterly
growth of 0.2 % had been expected in the figures from the Office for
National Statistics (ONS), although expectations had been tempered by
recent figures showing no growth in retail sales in September, and a
2. 5 % decline in industrial output in August. ANALYSIS Hugh Pym, BBC
chief economics correspondent There's no disguising how grim these
figures are. Almost every City analyst expected there to be positive
growth in the third quarter. Instead it was negative. That means the
recession in the UK is the longest since modern records began in the
1950 s. Germany, France and Japan have all come out of recession
technically and the UK hasn't. The decline has continued. And the
markets didn't really like the look of that. The foreign exchange
markets have been selling the pound. There's every indication that
it's going to be a long hard slog for quite some time to come as the
British economy tries to turn itself round. The unexpected decline in
the services sector was the key factor behind the drop, with the
distribution, catering and hotels sector performing particularly
badly. The UK economy's reliance on the service sector, and financial
services in particular, may be the reason why it is still in recession
when partners such as France and Germany exited in the second quarter
of this year. The economy contracted 5.2 % compared with the same
period last year, which was marginally better than the record figure
of 5. 5 % in the previous three months. It has now contracted 5.9 %
from its peak before the recession began. The worse-than-expected GDP
figures are likely to make the Bank of England consider extending its
policy of quantitative easing. Quantitative easing is the central
bank's policy of printing money and using it to buy bonds from banks
and other companies to help stimulate the economy. 'Awful' The £175 bn
already announced for the quantitative easing programme will have been
spent by next month, so the third quarter GDP number will be important
in deciding whether to extend it. Indeed, at the Bank's current rate
of spending, it is expected to have spent the whole £175 bn in the
next week. As the next Monetary Policy Committee ( MPC) meeting, at
which quantitative easing decisions are taken, is not until 4
November, that would leave it with a week with no extra cash to pump
into the economy. The figures were "awful with no positive news"
according to James Knightley at ING. "This clearly suggests that the
likelihood of an expansion in quantitative easing by £50 bn or so over
the next quarter is rising, although [it] is not a foregone
conclusion." Former MPC member Professor David Blanchflower said the
negative GDP figures should not have been a surprise. "There's been
very little sign among firms that things were very much better," he
told the BBC. "The public seems to have some more confidence - they
seem to have believed the talk about green shoots, but actually the
data haven't really looked that way at all." Intervention needed " The
bottom line is that we should take this as very much a first draft of
UK economic history - but clearly a disappointing one " Stephanie
Flanders, Economics editor Analysts said it is worrying that the
decline has continued despite the stimulus measures that the
government and the Bank of England have introduced. "Continued
intervention - including help for businesses to access finance, and
incentives to promote investment - is still needed," said David Kern,
chief economist at the British Chambers of Commerce. "Above all else,
business confidence must be nurtured to ensure that recovery is not
further delayed." 'Deeply disappointing' Chancellor Alistair Darling
said he had never expected to see growth before the end of 2009. "Our
job is to support the economy as we come through towards recovery," he
said. "[Growth] will come - I'm confident about that - and I'm
confident that businesses and people generally will begin to see a
difference, but it will take time." Shadow chancellor George Osborne
described the figures as "deeply, deeply disappointing". "There are
many millions of people who will be deeply concerned to see that
Britain is still in recession six months after France and Germany came
out of recession," he told the BBC. "It destroys the myth that Britain
was better prepared." Liberal Democrat Treasury spokesman Vince Cable
said the figures were "a cold blast of realism". "We've had a lot of
talk recently based on a booming stock exchange and prices of luxury
houses in London that somehow this problem was at an end, and it
isn't," he said. One of the measures expected to be a particular help
in the final quarter of the year is the change in VAT. The rate of VAT
is due to return to 17.5 % from 15 % at the beginning of January and
consumers are expected to step up their purchasing ahead of that
increase.
September, according to official figures, meaning the country is still
in recession. It is the first time UK gross domestic product (GDP) has
contracted for six consecutive quarters, since quarterly figures were
first recorded in 1955. But the figures could still be revised up or
down at a later date, because this figure is only the first estimate.
GDP measures the total amount of goods and services produced by a
country. The pound fell sharply after the figures were released,
reflecting the fact that many observers had expected the UK to have
grown during the quarter. It was down 1.7 % against the dollar, at $1.
6323 , and down 1.9 % against the euro, at 1. 0859 euros. Quarterly
growth of 0.2 % had been expected in the figures from the Office for
National Statistics (ONS), although expectations had been tempered by
recent figures showing no growth in retail sales in September, and a
2. 5 % decline in industrial output in August. ANALYSIS Hugh Pym, BBC
chief economics correspondent There's no disguising how grim these
figures are. Almost every City analyst expected there to be positive
growth in the third quarter. Instead it was negative. That means the
recession in the UK is the longest since modern records began in the
1950 s. Germany, France and Japan have all come out of recession
technically and the UK hasn't. The decline has continued. And the
markets didn't really like the look of that. The foreign exchange
markets have been selling the pound. There's every indication that
it's going to be a long hard slog for quite some time to come as the
British economy tries to turn itself round. The unexpected decline in
the services sector was the key factor behind the drop, with the
distribution, catering and hotels sector performing particularly
badly. The UK economy's reliance on the service sector, and financial
services in particular, may be the reason why it is still in recession
when partners such as France and Germany exited in the second quarter
of this year. The economy contracted 5.2 % compared with the same
period last year, which was marginally better than the record figure
of 5. 5 % in the previous three months. It has now contracted 5.9 %
from its peak before the recession began. The worse-than-expected GDP
figures are likely to make the Bank of England consider extending its
policy of quantitative easing. Quantitative easing is the central
bank's policy of printing money and using it to buy bonds from banks
and other companies to help stimulate the economy. 'Awful' The £175 bn
already announced for the quantitative easing programme will have been
spent by next month, so the third quarter GDP number will be important
in deciding whether to extend it. Indeed, at the Bank's current rate
of spending, it is expected to have spent the whole £175 bn in the
next week. As the next Monetary Policy Committee ( MPC) meeting, at
which quantitative easing decisions are taken, is not until 4
November, that would leave it with a week with no extra cash to pump
into the economy. The figures were "awful with no positive news"
according to James Knightley at ING. "This clearly suggests that the
likelihood of an expansion in quantitative easing by £50 bn or so over
the next quarter is rising, although [it] is not a foregone
conclusion." Former MPC member Professor David Blanchflower said the
negative GDP figures should not have been a surprise. "There's been
very little sign among firms that things were very much better," he
told the BBC. "The public seems to have some more confidence - they
seem to have believed the talk about green shoots, but actually the
data haven't really looked that way at all." Intervention needed " The
bottom line is that we should take this as very much a first draft of
UK economic history - but clearly a disappointing one " Stephanie
Flanders, Economics editor Analysts said it is worrying that the
decline has continued despite the stimulus measures that the
government and the Bank of England have introduced. "Continued
intervention - including help for businesses to access finance, and
incentives to promote investment - is still needed," said David Kern,
chief economist at the British Chambers of Commerce. "Above all else,
business confidence must be nurtured to ensure that recovery is not
further delayed." 'Deeply disappointing' Chancellor Alistair Darling
said he had never expected to see growth before the end of 2009. "Our
job is to support the economy as we come through towards recovery," he
said. "[Growth] will come - I'm confident about that - and I'm
confident that businesses and people generally will begin to see a
difference, but it will take time." Shadow chancellor George Osborne
described the figures as "deeply, deeply disappointing". "There are
many millions of people who will be deeply concerned to see that
Britain is still in recession six months after France and Germany came
out of recession," he told the BBC. "It destroys the myth that Britain
was better prepared." Liberal Democrat Treasury spokesman Vince Cable
said the figures were "a cold blast of realism". "We've had a lot of
talk recently based on a booming stock exchange and prices of luxury
houses in London that somehow this problem was at an end, and it
isn't," he said. One of the measures expected to be a particular help
in the final quarter of the year is the change in VAT. The rate of VAT
is due to return to 17.5 % from 15 % at the beginning of January and
consumers are expected to step up their purchasing ahead of that
increase.
Maruti profit jumps 93pc
India's largest carmaker Maruti Suzuki reported Saturday that its quarterly profit had soared 93 per cent, against the backdrop of a reviving domestic economy. Maruti, majority owned by Japan's Suzuki Motor Corp, reported net profit of 5.7 billion rupees (123 million dollars) in the second financial quarter to September 30. Net sales jumped 47 per cent to 70.5 billion rupees. The car manufacturer attributed the rise to government stimulus measures aimed at reviving a slowing economy that have put more money in the hands of India's increasingly affluent middle class consumers. 'Demand has been driven by government stimulus,' the company said in a statement. It also attributed the rise in sales to aggressive monetary easing by India's central bank that has made consumer loan costs cheaper.
Bangladesh Bank housing refinancing scheme to get more fund
Bangladesh Bank housing refinance scheme, a popular housing project, is going to get Tk 200 crore in fresh fund, as its entire amount of Tk 500 crore has almost exhausted. 'It's a good project. We're going to inject Tk 200 crore into the project … it' ll continue,' Bangladesh Bank governor Atiur Rahman told the agency. The fresh fund is being pumped into the project amid increasing demand for the housing loan by the middle class. The central bank launched the refinancing scheme initially with Tk 300 crore for housing loan in fiscal 2007-08. Later, the fund was increased to Tk 500 crore. Under the refinancing scheme, borrowers are entitled to receive loan up to Tk 20 lakh at 9 per cent interest for a period of 20 years. 'This is a wonderful project for the low-income group people to have homes of their own,' said a Bangladesh Bank official preferring anonymity. He said BBHRS has had a tremendous response from the middle-class people as they want to have small-size affordable homes. Out of the total Tk 500 crore allocated by the government for the BBHRS, the central bank refinanced fund to the tune of Tk 350 crore till July last at an interest of 5 per cent to the financial and banking institutions, according to official sources. The entire amount of Tk 500 crore has exhausted as the financial and banking institutions are taking about Tk 45 crore to Tk 50 crore a month to disburse loan to buyers of flats of maximum size of 1250 sq ft. A senior official of a financial institution said the Bangladesh Bank should continue the scheme with bigger fund of at least Tk 1000 crore as it has multiplier effects on the economy through backward and forward linkage industries to the real estate sector like cement, iron and steel, bricks, electrical equipment, tiles, fittings, ceramic and manufacturing industries. 'The growth of middle-class housing has increased significantly due to the availability of BBHRS fund at a reasonable cost,' he said. 'The demand for home loan is increasing each year and is currently about Tk 1500 crore, which shows an increase of over 20 per cent each year.'
Developers see booming real estate sales in 2010
Bangladesh real estate sector has rebounded and is expected to achieve an impressive growth of 15 per cent in 2010 thanks to the government's supportive policy for helping recover the sector even amid global recession. To boost the sluggish business hit by global meltdown and political turmoil, developers have taken a move to set up a common digital market for plots and flats named as Realbazar by this year to attract the potential buyers globally. Tanvireerul Hoq Probal, president of Real Estate and Housing Association of Bangladesh, the apex body of the country's real estate developers, made the forecast immediately after a successful housing fair in New York last week. He said more than 14 thousands Bangladeshi people living in different states of the USA visited the 3-day REHAB housing fair held in New York last week. Developers sold plots and flats worth Taka 156 crore on spot and received order worth Taka 280 crore. `We did not expect such a booming business this year that has overshot our target. Last year, our sales were much lower than our target - only Taka 60 crore hit by global recession,' the REHAB president told the agency. He said that 47 developers took part in the fair this year. The REHAB president said global recession, political turmoil, higher prices of raw materials and irrational marketing activities due to absence of a common market place hit the sector during the last two years and put down its growth rate to nearly 5 per cent in 2009 from 10 per cent in 2006. During the last caretaker government, the real estate sector faced serious difficulties and suffered image problems and investors and buyers scared to buy plots or flats and kept their money in boxes, Probal said. 'But the situation has rebounded and buyers both at home and abroad are showing more interest in buying flats and plots under a democratic environment. If we can keep up this trend, the sector will attain 15 per cent growth next year,' he said. He said the present democratic government has formulated a pro- active policy for developers and a management policy friendly to buyers. Now any buyer can file case against any developer who violates contract. They should not be panicky after buying plots and flats. 'Now we need a common market place where buyers both at home and abroad will find all products in a single location. To solve the problem, the country's first real-time financial information service Dhakabiz.com has developed a digital market place for plots and flats named as RealBazar. We will soon start it', he said. The REHAB executive committee at its last meeting approved the idea of launching a digital market, Probal said. "Realbazar will be an all-time housing fair for Bangladeshi real estate products. Buyers both at home and abroad will be able to buy plots and flats in a single platform. This will push up our sales as well as our growth in 2010', he said. Based on a ground breaking software, the RealBazar will provide update information of real estate projects and facilitate online trading platform to buy or sell plots and flats online. Here buyers from anywhere will be able to buy any plots or flats without the help of middlemen," the REHAB president said.
Asia looks lead the world
Asian nations discussed plans at a major summit Saturday to 'lead the world' by boosting economic and political cooperation and possibly forming an EU-style community. The prime ministers of regional giants China and India also looked to foster unity on the sidelines of the summit in Thailand after months of trading barbs over long-standing territorial issues. But nuclear-armed North Korea and military-ruled Myanmar were also set to top the agenda in the royal beach resort of Hua Hin, underscoring the challenges still facing the region. The summit groups the 10-member Association of Southeast Asian Nations ( ASEAN) with regional partners China, Japan, South Korea, India, Australia and New Zealand. Japan's new Prime Minister Yukio Hatoyama said a proposed East Asian community involving all 16 countries should aspire to take a leading role as the region makes an early rebound from the global economic crisis. 'It would be meaningful for us to have the aspiration that East Asia is going to lead the world and with the various countries with different regimes cooperating with each other towards that perspective,' Hatoyama, who took office last month, told the Bangkok Post newspaper. He described Japan's alliance with the United States as the cornerstone of its foreign policy, but said the region should 'try to reduce as much as possible the gaps, the disparities that exist amongst the Asian countries'. China would 'doubtless' grow further, particularly economically, 'but I do not necessarily regard that as a threat,' Hatoyama said. Officials said separately that East Asian nations would carry out a feasibility study for a huge free trade zone covering ASEAN, China, Japan and South Korea and a larger group involving India, Australia and New Zealand. Increased integration has been a recurring theme of the meetings in Thailand, as the rapidly changing region seeks to capitalise on the fact that it has recovered more quickly from the recession than the West. ASEAN leaders have been discussing plans to create their own political and economic community by 2015. But cross-border spats have continued to dog the summit, with host nation Thailand dragged into a war of words with Cambodia and India and China seeking to resolve their differences. Chinese Premier Wen Jiabao and his Indian counterpart Manmohan Singh held 'productive' talks on the sidelines of the summit Saturday but did not discuss their spat over territorial issues, officials said. 'We have reached important consensus on promoting bilateral ties,' Wen was quoted as saying by the Chinese state news agency Xinhua as the talks opened. Beijing has voiced its opposition to a recent visit by Singh to Arunachal Pradesh, an Indian border state at the core of the dispute, and to a planned visit there next month by the Dalai Lama, the exiled Tibetan spiritual leader. Arunachal Pradesh and the Dalai Lama were not discussed at Saturday's meeting, an Indian delegation official said. The two nations fought a border war in 1962. Human rights issues have also marred the summit. A widely criticised rights body officially launched by ASEAN on Friday was due to have its first ever meeting on Saturday. The bloc was caught up in a row on Friday when leaders barred several activists from meeting them as previously arranged. Meanwhile Thailand and Cambodia remained at loggerheads over the fate of fugitive former Thai premier Thaksin Shinawatra, after Cambodian Prime Minister Hun Sen bizarrely offered him a job as his economic adviser. Around 18,000 troops and dozens of armoured vehicles have been deployed in Hua Hin after it was twice postponed by anti-government protests, with another 18,000 on standby or on duty in Bangkok. The leaders are expected to sign a host of agreements this weekend on economic and other issues including climate change, disaster management, communications and food security in the rapidly changing region.
Japanese firms to develop small nuclear reactors
Japan's major nuclear reactor manufacturers have begun developing small nuclear power systems for both developed and emerging countries, a report said on Saturday. Toshiba Corp. is developing an ultra- compact reactor with an output of about 10,000 kilowatts and has started procedures for approval in the United States, the Nikkei business daily said. The new reactor, the Toshiba 4S, is designed to minimise the need for monitoring and maintenance, with an automatic shutdown function to ensure safety in case of problems, the newspaper said. Toshiba plans to market the reactor first in the United States, while foreseeing demand from emerging countries in Southeast Asia and Eastern Europe as well as in Africa, it said. Mitsubishi Heavy Industries Ltd. has separately completed the concept design for a pressurised-water reactor with a power output of around 350,000 kilowatts, the Nikkei said. Hitachi Ltd. also aims to develop a boiling-water reactor with a capacity of 400,000-600,000 kilowatts for use in Southeast Asia and other countries, it said. Demand for nuclear power stations has been growing around the world. A total of 151 were under construction or slated for construction in 27 countries as of the end of 2008, it said.
US bank failures top 100
The cascade of bank failures this year surpassed 100 on Friday, the most in nearly two decades. And the trouble in the banking system from bad loans and the recession goes even deeper than the number suggests. Dozens, perhaps hundreds, of other banks remain open even though they are as weak as many that have been shuttered. Regulators are seizing banks slowly and selectively — partly to avoid inciting panic and partly because buyers for bad banks are hard to find. Going slow buys time. An economic recovery could save some banks that would otherwise go under. But if the recovery is slow and smaller banks' finances get even worse, it could wind up costing even more. The bank failures, 106 in all, are the most in any year since 181 collapsed in 1992, at the end of the savings-and-loan crisis. On Friday, regulators took over three small Florida banks — Partners Bank and Hillcrest Bank Florida, both of Naples, and Flagship National Bank in Bradenton — along with American United Bank of Lawrenceville, Ga., Bank of Elmwood in Racine, Wis., Riverview Community Bank in Otsego, Minn., and First Dupage Bank in Westmont, Ill. When a bank fails, the Federal Deposit Insurance Corp. swoops in, usually on a Friday afternoon. It tries to sell off the bank's assets to buyers and cover its liabilities, primarily customer deposits. It taps the insurance fund to cover the rest. Bank failures have cost the FDIC's fund that insures deposits an estimated $25 billion this year and are expected to cost $100 billion through 2013. To replenish the fund, the agency wants banks to pay in advance $45 billion in premiums that would have been due over the next three years. The FDIC won't say how deep a hole its deposit insurance fund is in. It can tap a credit line from the Treasury of up to a half-trillion dollars to cover the gap. The list of banks in trouble is getting longer. At the end of June, the FDIC had flagged 416 as being at risk of failure, up from 305 at the end of March and 252 at the beginning of the year. Yet the pace of actual bank failures appears to be slowing. The FDIC seized 24 banks in July, 11 in September and 11 in October. If any bank poses an immediate danger to customers or the broader financial system, regulators close it immediately, bank supervisors said. The issue is murkier for troubled banks that might qualify to close but whose closings might still be postponed or even prevented. The FDIC's first priority, spokesman Andrew Gray said, is to maintain public confidence in the banking system. 'As evidenced by the stability of insured deposits throughout last year, this mission has been a success,' he said. He said public confidence isn't reason enough to delay a bank closing, because legally the decision to close rests with whoever chartered the bank — a state or federal agency. But more than a dozen experts, including current and former regulators, bankers and lawyers, say the FDIC's mission to maintain public confidence in the banking system contributes to the go-slow approach. 'The FDIC was set up to create confidence and prevent bank runs,' says Mark Williams, a former bank examiner for the Federal Reserve. Being too aggressive about bank closings 'can be counter to the mission.' Sarah Bloom Raskin, Maryland's top banking regulator, said: 'Technically it's the states who decide, but in reality it's the FDIC calling you to say' when the bank will be closed. Last fall, the financial turmoil was rooted in bad bets that the nation's biggest banks, like Citigroup Inc. and Bank of America Corp., had made on complicated, high-risk mortgage investments.
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