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Bangladeshi tannery gets 400 crore from state owned bank
Three state- owned banks are disbursing over Tk 400 crore in loans among the leather industries to help them purchase hides during the coming Eid-Ul-Azha. The banks are offering the sector more loans this year to overcome impact of global economic recession. But loan defaulters will not be eligible for this loan, banks officials said They said the loan will be made available to the tannery owners by Nov 26. Last year, the three banks disbursed Tk 336 crore among the leather industries, of which Janata Bank gave Tk 163 crore,Agrani Bank Tk 125 crore and Sonali Bank Tk 48 crore. Janata Bank will disburse Tk 180 crore this year and it has already decided to give three large leather industry Tk 65.50 crore. Board of directors of Agrani Bank will sit on Tuesday to select the industries it will give loan Leather and leather products are among the major export items that are affected by global recession. Chief executive officer cum managing director of Janata Bank SM Aminur Rahman told bdnews24. com: "The banks are disbursing more loans than before to protect recession-hit leather industries, stop smuggling of leather and increase leather collection inside the country." Aminul said: "Like every year, banks have prepared to disburse loan among the large leather factories. Both state–owned and private sector banks are offering loan for purchasing hides and skin, he said Some 80 percent of the demand for hides by the tannery industries is met during Eid-Ul-Azha. Former chairman of Bangladesh Tanners' Association Harunur Rashid told bdnews24 that the leather industries had been badly hit by recession. Export of leather and leather products dropped by 60 percent during the first quarter of FY 2009-10 , he said It will be difficult for the industries to survive unless government extends financial support to the sector, he said Aminur Rahman told bdnews24. com: "Our tannery factories might turn sick in absence of financial support. So, banks must come forward to protect the industry." An official of Sonali Bank on condition of anonymity told bdnews24 that his bank had decided to give the industries loans amounting to Tk 65.50 crore. Any good entrepreneur seeking loan ahead of Eid will receive the funding, he said CEO cum managing director of Agrani Bank Syed Abu Naser Baktiur said: "Default loans have accumulated as most of the companies failed to repay previous loan." Yet companies will receive the loan equal to the amount repaid last year, he said He said: "The board of directors in its Tuesday meeting will decide about how much loan will go to which company." An Agrani Bank official said the bank has decided to disburse loan amounting to Tk 150 crore this year while the figure was Tk 100 crore last year. As per statistics of EPB, the export of leather and leather products has shrunk by 24.55 percent during the first quarter of current fiscal year. The sector earned foreign exchange worth Tk 3000 crore during 2008-09 fiscal year.
Bangladeshi leather industry look for Eid bonus
The leather industry, hit by the global recession, is looking to shake-off the lull with Eid-Ul-Azha this year, but will local and international markets allow a recovery? Bangladesh processes around 220 million square feet of leather every year, half of which is sourced during this time, when millions of sacrificial animals are slaughtered across the country as part of the Eid ritual. A sharp fall in international demand for animal- hide last year, in the wake of the global recession, triggered a slump for the local hide and leather industry, which they hope will pick up this year. Industry leaders expect supply of hide will surge this Eid compared to the last two years of interim government. "Many political leaders, and businessmen, could not sacrifice animals as they were passing a tough time over the past two years. Or they felt it didn't really matter during the emergency period from a 'public relations' point of view," Rezaul Karim Ansari, head of the industry's top trade body, said. "Cyclone Sidr in 2007 also caused deaths of a huge number of animals as well as creating lots of financial woes, which contributed to the lower supply of hide too," said Ansari, chairman of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLGFEA). "And like every other industry, we are suffering due to the financial meltdown as international market price has been falling significant since last year," he added. Prices of finished leather declined 30-40 percent in the last one year in the global market, causing a huge loss to local tannery owners. Figures from the government's Export Promotion Bureau show that leather exports amounted to $45.56 million in the first quarter of the current fiscal year, crashing almost 24 percent compared to the same period last year. Footwear exports, however, fell less steeply— by just 2.95 percent in the first quarter of the current fiscal, earning $56.22 million—boding better for local leather sales. But the good news is demand for finished leather has also bounced back thanks to buyers in Hong Kong and China, say tanners. "China and Hong Kong bought a huge amount of leather over the last two months," Shahin Ahmed, president of the Bangladesh Tanners Association, told bdnews24. com. He said the fact led them to plan for procuring as much raw hide as they can store during Eid-ul- Azha this year. Meanwhile, increased demand from local footwear-makers for finished leather will also cause local tanners to buy more hides this year, says Tipu Sultan, a former chairman of BFLGFEA. Footwear and leather goods manufacturers echoed the same, saying their consumption of domestic finished leather has been rising. "We used to consume around 15 percent of domestic finished leather on average, now we use around 35 per cent," Saiful Islam, chairman of Bangladesh Leather Goods and Footwear Manufacturers Exporters Association told bdnews24. com. He added that earnings from footwear export surpassed leather exports in 2008-09 fiscal. Bangladesh exported around $170 million of finished leather in the last fiscal while shoe manufacturers bagged about $204 million, according to the Export Promotion Bureau. But, despite expectations of brisk business, the BFLGFEA has cut the maximum buying price for raw hide this Eid. Price per square feet of raw cowhide was fixed at Tk 30 in Dhaka and Tk 25 outside, dropping from Tk 30 and Tk 35 respectively last Eid-Ul- Azha. The announcement came just ahead of Eid. BFLGFEA chairman Rezaul Karim Ansari told the media that prices have been fixed low due to a fall in prices of leather and leather products on the international market. But, he told bdnews24. com, exports are expected to turn around in coming months as the shocks of recession are easing in parts of the world.
US share fall for Dubai debt
US shares have fallen on worries about Dubai's debt problems, with the Dow Jones ending down 154 points, or 1.5 %, at 10 , 309.92 , in a shorter trading day. It was the first chance for markets in the US to react to news that state-owned Dubai World had asked for more time to repay its debts. US markets were closed for a holiday on Thursday when other world markets suffered steep losses. However, the main European markets recovered from earlier falls. The main share indexes in the UK, France and Germany had all fallen by more than 3 % on Thursday. But after falling further in early trade on Friday, the UK's FTSE 100 closed up 1 %, and both Germany's Dax index and France's Cac 40 ended more than 1 % higher. Earlier in Asia, Japan's Nikkei index had closed down 3.2 % and the Hong Kong Hang Seng ended 4.8 % lower. UK Prime Minister Gordon Brown described the fall in the markets as a "setback" but said it was "not on the scale of previous problems". "The world financial system is stronger now and able to deal with the problems that arise," he told reporters on his way to a Commonwealth leaders summit. Holiday hiatus Dubai World is the centrepiece of the Gulf state's economy. " Certain London-based hedge funds who had bet on Dubai World being bailed out could have an uncomfortable few weeks ahead " Stephanie Flanders BBC Economics Editor Sources close to the company have suggested that various refinancing options have been on the table for at least a month, although details have not been revealed until now. A six-month suspension on interest payments is believed to be the most likely option. David Buik, senior partner at BGC Partners, said: "You can't just say to the world: 'I don't want to pay my debts'. There is no income coming in from any of these properties. I think this is shocking PR." The news shook markets that are recovering from the collapse of the US housing market and contagion that threatened to rupture the global financial system last year. It was the timing of the announcement as much as the lack of clear information that heightened nerves. The first news emerged late on Wednesday, as the Muslim world was preparing for its Eid celebrations. It also coincided with the closedown of the world's most important share market, with US markets winding down for Thursday's Thanksgiving holiday. Uncertainty of the scale of banks' exposure to Dubai hit banking shares at first. However, bank shares recovered strongly throughout Friday morning. Threat to confidence The biggest underlying fear is that Dubai's problems could reignite the international financial turmoil of the credit crisis. WHAT IS DUBAI WORLD? The emirate's flag bearer in global investments Has a central role in the direction of Dubai's economy Assets include DP World, which caused a storm when trying to take over six US ports Property arm Nakheel built The Palm Islands and The World developments Chris Skinner, chairman of the Financial Services Club, said: "We're very heavily interlinked. Dubai is the key financial centre in the Middle East." Any knock to economic confidence could lower global demand for a whole range of commodities, including oil. Oil prices dropped sharply. US crude fell about 5 % to $73.64 a barrel and London Brent Crude was down $1.56 to $75.31. Dubai, which has less oil money than many of its neighbours, became a trading and tourism hub with global ambitions. Dubai World, the conglomerate that led the emirate's expansion, had $59 bn (£36 bn) of liabilities as of August, a large proportion of Dubai's total debt of $80 bn. Its subsidiary Nakheel was the builder of the landmark palm tree-shaped island developments off Dubai.
New plan for Euro train booking system
Railteam, the alliance of European high-speed rail operators, has shelved plans for a Europe- wide common booking system because of increasing costs. The system would have allowed customers to book tickets for Europe-wide rail journeys in a single transaction. The platform was due to be unveiled this year, but has been scrapped for the foreseeable future, according to Eurostar. Railteam's other members include Thalys, SNCF and Deutsche Bahn. "All seven high-speed operators thought the platform would be a good idea but once we started looking at the system in detail we realised that it would be very complicated and therefore extremely expensive." said Lesley Retallack from Eurostar. At present, although travellers can book some Europe-wide tickets through the individual websites of Railteam's members, passengers often receive more than one ticket for journeys onward from the carriers' normal routes. The new system would have created a one-stop- shop for tickets for complete high-speed journeys across Europe.
Sales rise for Jaguar Land Rover
Jaguar Land Rover had seen its sales rise 23 % in the second quarter after its new models were well-received. Owner Tata Motors said new products such as the upgraded Range Rover, Range Rover Sport and Discovery 4 had had successful launches. Although Jaguar Land Rover made a net loss of £60 m in the July-September quarter, it was much less than the £240 m loss it made a year earlier. India's Tata Motors made a net profit of 217.8 m rupees ($4.7 m; £2.8 m) That compared with a loss of 9.4 bn rupees a year earlier. Tata said Jaguar Land Rover's performance was the highlight of the quarter. Tata bought the British marques from Ford for £1.7 bn in June 2008. Sales volumes at Jaguar Land Rover rose to 44 , 300 vehicles from 35 ,900 in the previous quarter. Aggressive cost reduction had also paid off, Tata said. "The [Jaguar Land Rover] business is witnessing some stability in the external environment with certain key markets showing signs of recovery," Tata said in a statement.
It delay test flight for airbus A400 M
Airbus says its long-delayed A400 M military transport aircraft should make its first test flight during the week beginning 7 December. The European aerospace giant said the test flight would go ahead "weather permitting". The A400 M was designed to replace ageing military cargo carriers in several European air forces. However, a series of technical problems have dogged the project and led to the delays. The aircraft was due to enter service with air forces this year, but this has now been put back to 2013. Amid growing concern, French and German officials have given the firm until the end of the year to prove that the project remains viable. Earlier this month, South Africa cancelled a multi-billion dollar contract for eight A400 Ms, citing escalating costs and delivery delays. The deal for the planes was signed a number of years ago, when the proposed cost was significantly less.
Eskom get loan to build power plant
Utility company Eskom has been loaned 1.86 bn euros ($2 ,77 bn; £1.69 bn) by the African Development Bank to finance the building of the Medupi power plant. The 4 ,800 megawatt facility in the Limpopo Province will significantly boost the energy capacity of South Africa, the bank said. This will be the first new plant built by Eskom, a state owned company, in over two decades. The plant is expected to be commissioned by February 2012. Eskom has been rationing electricity this year as the national grid cannot cope with demand. "South Africa's energy problem has been a major impediment to Africa's leading economy," African Development Bank president Donald Kaberuka said. "This operation should be seen in the context of the bank's ongoing efforts to help Africa bridge the infrastructure gap." In September, Eskom announced that South Africa's aim to provide universal access to the national electricity grid by 2012 may not be realised.
Japan's unemployment problem
Japan's seasonally adjusted unemployment rate last month was 5.1 percent, down from 5.3 percent in September, according to government figures released Friday. That translates to 3.44 million unemployed people in October -- but still an increase of 890 ,000 , or 34.9 percent, above what it was in October 2008 , Japan's Ministry of Internal Affairs and Communications said on its Web site. Prices for consumer goods excluding fresh food were down 2.2 percent in October from what they had been a year prior, it said.
Dudai debt problem creat european share fall
Worries over Dubai's debt problems drove down Europe's share markets for the second day running. The main share indexes in London, Paris and Frankfurt all opened more than 1 % lower before easing back slightly. The falls follow news from the state-owned Dubai World that it would delay repaying some of its debt. Earlier, Asia's markets were down sharply. Tokyo's benchmark Nikkei fell 3.2 % to 9 , 081.52. In Hong Kong, the Hang Seng index ended down 4.84 % at 21 ,134.5. Oil prices also fell. US crude dropped 4.5 % to $74. 51 a barrel and London Brent Crude was down $1.26 to $75.73. The biggest underlying fear is that Dubai's problems could reignite the financial turmoil of the credit crisis. That would lower global demand for a whole range of commodities, including oil. WHAT IS DUBAI WORLD? Dubai World is the emirate's flag bearer in global investments. It has a central role in the direction of the emirate's economy and has four main areas of operations: Transport & Logistics, Drydocks & Maritime, Urban Development, and Investment & Financial Services. Its assets include DP World, one of the largest marine terminal operators in the world, which sparked a national security debate in the US when it moved to take over six of the country's ports. Back home, its own maritime ambitions are driven by Dubai Maritime City which is aiming to turn Dubai into a major ship-building hub. Perhaps the most easily visualised area of operation is Nakheel, the property developer behind projects such as The Palm Islands and The World. Its fourth main business area is Istithmar World, which is the group's investment arm. It said on Wednesday it would ask creditors of the state-owned Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring. David Buik, senior partner at BGC Partners, said: "You can't just say to the world: 'I don't want to pay my debts'. There is no income coming in from any of these properties. I think this is shocking PR." The Gulf state, which has less oil money than many of its neighbours, became a trading and tourism hub with global ambitions. Dubai World, the conglomerate that led the emirate's expansion, had $59 bn (£36 bn) of liabilities as of August, a large proportion of Dubai's total debt of $80 bn. Nakheel was the builder of the landmark palm tree-shaped island developments off Dubai. The news shook markets that are recovering from the collapse of the US housing market and contagion that threatened to rupture the global financial system last year. Banks and builders were hit hardest as they are the most likely to be exposed to firms with property at the sharp end of the slump.
High yen rate is harmful for Japan's economy
Japan's finance minister has said the strength of the yen is harmful to the country's economy. In trading the currency has touched 84 to the dollar, the US currency's lowest level since the mid-1990 s. A high yen damages the competitiveness of Japanese exports, which have been the engine of the country's growth. Finance Minister Hirohisa Fujii said the government was watching closely, but did not signal immediate intervention. Unemployment falls Everyone in Japan knows that the flimsy one yen coin is so light it can be made to float on water, but now the currency is sinking to the bottom of the glass as the dollar weakens. Mr Fujii said the strength of Japan's currency was "one sided" and harmful to the economy. With much of the relative strength caused by dollar selling rather than yen buying, there may be little the government can do alone. Japan is emerging from its worst recession since the end of World War II. Figures out on Friday showed unemployment had fallen. But the strong yen eats into the competitiveness of exporters like Sony, Toyota and Honda. Japan's recovery is threatened by deflation, or falling prices. And the strength of the currency threatens to make that worse too because imports and raw materials become cheaper.
Help plan taking for travelers
Travellers who book holidays on the internet could receive more financial protection if things go wrong, under plans in a European review. Consumers who make up their own packages of flights, hotels and car rentals on one website or partner sites could get more protection. Currently, only those who have booked specific package deals have rights to cancel or refunds if operators go bust. A review will consider help for passengers if airlines collapse. "We need tough protection that gives all consumers booking a package holiday the peace of mind they deserve, and we need a level playing field so businesses compete on equal terms," said EU Consumer Commissioner Meglena Kuneva. The consumers' association Which? welcomed the review. "The Package Travel Directive was drawn up almost 20 years ago, and while useful at the time, it doesn't go far enough to protect today's holidaymaker," said Rochelle Turner, of Which? Holiday. "A significant number of people book hotels from a direct link on an airline's website, or use online travel agents to book their own package, and are left without the peace of mind that they are protected should something go wrong. Changes The current rules, which came into force in 1990 , offer protection for people who book packages through a travel agent. They give these travellers various rights including the right to a refund if elements of the holiday are changed or if the organiser cancels the package. Most importantly, provision must be made to refund travellers and return them home if the operator goes bust. The European Commission wants to consult on the possibility that - after a recent spate of airlines going bust - basic insolvency protection should be extended to cover independent travellers buying standalone airline tickets which are not part of any package. However, the review is unlikely to start until the second half of 2010.
Carphone makes profit
The mobile phone retailer Carphone Warehouse has raised its full-year earnings forecast after recording better-than-expected sales. Its comments came as it reported an 88 % rise in pre-tax profit for the six months to 30 September to £75 m. The firm's revenues rose 13 % to £789 m. Chief executive Charles Dunstone said: "Each business has delivered a significant year-on-year improvement." Carphone also said its planned demerger of the TalkTalk business was on track. The group will split into two companies by March 2010 with both Carphone Warehouse and TalkTalk trading separately on the London Stock Exchange. The firm's broadband customer base was up 48 % year-on-year to 4.12 million. Strong demand for smartphones - such as Apple's iPhone - also boosted sales. Mr Dunstone also said that the integration of Tiscali UK, which it bought in May, had cemented its position as a leading player in UK telecoms and was enhancing earnings. He added that Carphone's joint venture with the US's Best Buy had also "delivered strong growth" . One aspect of the joint venture will see the opening of "Big Box" megastores in spring of next year.
Chinese share hits
Leading Chinese shares have slid ahead of a key government economic meeting with investors wary of the outcome. The benchmark Shanghai Composite Index fell 119.2 points, or 3.6 %, to 3 , 170.98 , the market's biggest daily fall in almost three months. There are concerns that the government may introduce measures to clamp down on rising asset prices, including shares and property, analysts said. On Tuesday, shares fell 3.5 % on fears banks would need to raise more capital. This followed an order by regulators at the start of the week that banks needed to control lending and manage risks better. These fears also contributed to the latest share slump, analysts said. "Worries about fund raising in the banking sector dragged down the index while rumours of a possible shift in economic policy spread ahead of China's central economic meeting, so investors locked in profits due to uncertainties," said Li Wenhui at Huatai Securities.
Tata steel see $584.7m loss
Tata Steel Ltd, the world's No 8 steelmaker by output, reported a consolidated quarterly net loss on Thursday, hurt by the weak performance of its European unit Corus. Tata Steel, which bought No 2 European steelmaker Corus in 2007, said its consolidated July-September net loss was 27.07 billion rupees ($584.7m), after minority interest and share of profit of associates, compared with a profit of 47.72 billion rupees a year earlier. Consolidated net sales fell to 252.70 billion rupees from 441.99 billion rupees a year earlier. Last month, the firm said its Indian operations' net profit fell 49.5 per cent. Shares in Tata Steel, valued at $10.7 billion, extended losses to 5.2 per cent at 533.10 rupees after the results, while the main index was down 1.8 per cent. The firm's shares have leapt 150 per cent this year, better than a 77 per cent jump in the main index.
Nepal connected with international resturant chain
Nepal's first international fast-food restaurants opened in the capital Kathmandu on Wednesday, reflecting the country's cautious attempts to attract more investment from Western companies. Long queues formed outside Kentucky Fried Chicken (KFC) and Pizza Hut, with KFC serving more than 500 people in the first two hours of business. 'It has been an exciting day after a long period of planning and preparation,' Vishnu Reddy, country manager for the two brands said. 'We are happy and satisfied with the overwhelming response from customers.' KFC and Pizza Hut arrived in Nepal as the country recovers from a decade-long civil war that claimed more than 16,000 lives before a peace deal was reached between rebel Maoists and the government in 2006. During the violence, rebels targeted foreign ventures including Coke, Pepsi and Unilever but more recently Kathmandu has seen rapid growth in restaurants, malls and supermarkets. Many of the ingredients for KFC and Pizza Hut are imported from abroad, including the chicken from Brazil and potatoes from Australia. 'We have to maintain our products and original taste,' Reddy told AFP. The Nagarik newspaper welcomed the restaurants, saying they gave 'an opportunity for Nepalese customers for cheaper and better food and an alternative.'
World's largest tractor maker faces loss
Deere & Co, the world's largest maker of tractors and harvesters, reported a quarterly net loss on Wednesday on weak equipment sales and a series of one-time charges. The company also provided a disappointing first glimpse of 2010, saying it expected farmers in North America and Europe to remain cautious because of the unsettled economic situation. The farm sector, which had been largely insulated from the economic downturn last year, suffered in 2009 as commodity prices retreated from historic highs. Since sales of tractors, harvesters and other agricultural equipment rise and fall along with farm income, Deere and competitors CNH Global NV and Agco Corp have seen demand deteriorate and have been scaling back production and cutting workers. Deere expects a huge jump in pension costs next year, which analysts believe could shave 60 cents off its earnings. The Moline, Illinois-based company reported a net loss of $222.8 million, or 53 cents a share, for the fourth quarter that ended on October 31, compared with a year-earlier profit of $345 million, or 81 cents a share. Stripping out one-time items, including a goodwill impairment charge related to its turf unit and employee severance costs, the company would have reported a profit of 23 cents a share. Sales fell 28 per cent to $5.33 billion. Deere expects 2010 net income of about $900 million, up from $873.5 million, or $2.06 per share, this year, but well below analyst estimates of $1.1 billion. But any sales gains will have to come later in the year because Deere warned first-quarter sales could be down 10 per cent from 2009 levels. It expects farmers in North America and Europe 'to be cautious in their purchasing decisions as a result of sluggish overall economic conditions and near-term profitability issues in the livestock and dairy sectors.' The one bright spot is South America, where Deere said it expected industry sales would increase 10 per cent to 15 per cent in 2010. The company's shares were flat $52.29 in early trading on the New York Stock Exchange.
Bangladeshi government has taken a project of tea faming in Pancha garh
The government has taken a massive Tk100 crore special package programme to boost the growing small-scale tea farming that has already become very popular bringing fortunes to many in Panchagarh villages. Under the programme being implemented by Bangladesh Tea Board, the small and marginal farmers are being provided with training on the latest technologies for tea farming, loans, tea saplings and necessary inputs, officials concerned said. The government initiatives will further prompt economic advancements of the common people, farmers as well as working women, as the small and marginal farmers have been showing more interest in farming the cash crop in the areas. Side by side with the latest assistance, local farmers and experts suggested setting up more tea processing industries, competitive markets for tealeaves and resolving some problems like power crisis for accelerating further growth of the sector. The prospective tea sector has created opportunities for hundreds of working women to change their fate by achieving self- reliance through earning wages as plucking workers in tea gardens of the officially recognized third tea zone in the country. Presently, nearly 7 ,500 skilled and unskilled workers, mostly women, have been working in about 260 tea gardens, including 18 big estates, 13 medium-size and 229 small-scale gardens set up on about 2 ,200 acres in Panchagarh alone. Small-scale tea growers are now happier as the tea processing factories of Tentulia Tea Company Ltd and Karotoa Tea Garden started purchasing green tealeaves at Tk 11 per kg though the rate was only Tk 9.50 in the past. As per a survey conducted by BTB, there is over 16 ,000 hectares land suitable for tea farming in Panchagarh alone and nearly 2 ,200 acres have so far been brought under tea farming in the area since 2002. The tea board has taken the special steps, including finding newer areas for tea farming, with a view to further expanding tea farming areas and increasing tea production in the country to meet its growing local demand and increase exports. There are tremendous prospects of the expanding tea sector and creating job opportunities to enhance economic activities further in the region, President of Panchagarh Chamber of Commerce and Industry Iqbal Kaiser Mintu said. Tea is being cultivated mostly in Panchagarh on a 'small- scale gardening basis', the green tealeaves are being sold to the processing factories and companies and this concept has been attracting the small, medium and marginal farmers more and more. Small-scale tea farmer Mozahedul Hassan while talking to the news agency recently said he has been farming tea in seven bighas (20 kathas) of land after selecting 20 bighas for the purpose and lifting 90 to 100 kg tea leaves every week from the garden. BTB's Development Officer in Panchagarh Amir Hossain said there is tremendous scope for expansion of the tea farming area in Panchagarh and the BTB has been providing all necessary facilities including training to the farmers and per hectare subsidies. About 5.37 lakh kg tea was produced during the last season and a total of about seven lakh kg tea is expected to be produced in Panchagarh alone this season, BTB officials said. Female labourer Sabina Yasmin of Tentulia upazila said they are getting only Tk 60 to 70 per day and male labourers are getting Taka 80 to 90 per day as wages by plucking tea-leaves. "We are hopeful that the concerned authorities will take necessary further steps regarding our just wages and benefits as the tea sector has been expanding faster following huge interests among the small-scale and marginal farmers," she said. "Increased tea farming will bring further economic solvency to the people, especially empowering the distressed women in the district, with a positive change in their life and living ushering in a new hope for their future generations," an official said.
Gold production are continue to fall
Gold production will continue to fall, despite a brief boost in 2009 and soaring prices, as deposits are exhausted and new discoveries remain elusive, say miners. Meanwhile, the price of gold soared above 1 ,195 dollars an ounce for first time in history in the London bullion market on Thursday, following a purchase of IMF gold by Sri Lanka's central bank. In terms of production, "2009 is the outlier as far as the trend," Omar Jabara, spokesman for US- based Newmont Mining, the second-largest gold producer in the world, told AFP. Overall, "it's a fact that gold production from mines has been in decline since 2001 and has gone roughly from 85 million ounces to about 75 million ounces a year," said Vincent Borg, spokesman for number one producer Barrick Gold. "It sort of goes down about one million ounces every year and our forecast is that it will continue to decline despite the higher price" for gold nowadays, he said. Almost everywhere, mineral deposits are being exhausted and new deposits are not being found fast enough to replace them, these experts explain. South Africa, which was once at the vanguard of world production, saw a 9.3- percent drop in production year-over-year in the second quarter, according to its Chamber of Mines. Globally, "it's just that the assets are not there anymore," Tonya Todd, a spokeswoman for Goldcorp, Canada's second biggest gold mining firm. "Just because gold reached a new high today doesn't mean we can send a message to our 26 mines saying produce as much gold as you can today because they are already," said Borg. "It's not like a water tap you can turn on and it comes right away." Barrick and Newmont expect nevertheless to continue increasing production next year by seven percent and five to 10 percent, respectively. But long-term, it's downhill. Omar Jabara explained that it takes from seven to 10 years to start production of a mine after finding an economically viable gold deposit. And "no significant new discoveries have been found in recent years, despite the higher gold prices and despite higher exploration budgets," said Borg. What is already happening and is likely to continue is that the grade or quality of deposits industry-wide will be "on average lower than deposits discovered in the past," opined Jabara. The global gold mine production is forecast to rise by 3.7 percent in 2009 to about 2 ,500 tonnes, but will satisfy only two-thirds of demand, which soared this year amid the global financial crisis to 3 ,800 tonnes, according to the World Gold Council. Historically, gold recycling or the sale of central bank stockpiles made up for supply shortages. But during the latest financial crisis, banks have been buying up gold in large quantities to protect monetary reserves against weakness in the US dollar. Since the start of November, for example, India's central bank has scooped up 200 tonnes of gold from the International Monetary Fund, at market value for about 6.7 billion dollars. Amid uncertainty in the stock market, small investors and hedge funds are also coveting gold, driving up demand for the precious metal. With mine production sloping downwards, an increasing supply of gold must come from existing supplies -- such as coins, bullion or jewelry -- but it will be very limited. "All the gold ever produced through history amounts to about 165 ,000 tonnes, which would barely fill two Olympic-size swimming pools," said Jabara. The price of gold, after reaching new highs over the past year, on Monday hit 1 ,174 dollars per ounce.
Dubai said debt payment delay
The government-owned investment company behind Dubai's rapid development drive has asked its creditors for a six-month delay on repaying its debts. Dubai World, which has total debts of $59 bn ( £35 bn), is asking creditors if it can postpone its forthcoming payments until May next year. Dubai World has also appointed global accountancy group Deloitte to help with its financial restructuring. The company has been hit hard by the global credit crunch and recession. It was due to repay $3.5 bn of its debts next month. The malaise has also affected Dubai as a whole, where, following six years of rapid growth, the economy has slumped since the second half of 2008. This has led to Dubai property prices falling sharply. 'Shocking' The Dubai government said in a statement that the request to delay debt repayments also applied to property developer Nakheel, a Dubai World subsidiary. "It's shocking because for the past few months the news coming out has given investors comfort that Dubai would most probably be able to meet its debt obligations," said analyst Shakeel Sarwar, of SICO Investment Bank. Dubai is one of the seven self-governing emirates or states that make up the United Arab Emirates. Analysts say the Dubai government has paid the price for a flamboyant economic model centred on foreign capital and giant construction projects. Some have speculated it is likely to turn to the more economically conservative Abu Dhabi emirate to bail it out. Global credit rating agency Standard & Poor's, which rules on a company's or government's ability to repay its debts, said the announcement "may be considered a [debt] default". As a result, it said it was downgrading its ratings on several Dubai government-related financial entities. The Dubai World announcement was made on the eve of the Eid al-Adha Muslim festival, which will see many government agencies and companies close in Dubai until 6 December.
General Motors will not close their German plant
General Motors (GM) has said that it will not be closing any of Opel's four plants in Germany as part of its restructuring plans. The US carmaker also said it would be cutting about 9 ,000 jobs in Europe, slightly fewer than the 10 ,000 it originally estimated. It also said the future of the Antwerp plant was uncertain. Earlier this month, GM cancelled the sale of its European operations to car parts maker Magna. Consultation period GM's European boss Nick Reilly said he saw Opel' s Eisenach plant as "a significant resource for the production of [Opel] Corsas for the long term". He had previously given assurances over Germany's three other Opel plants. "We have to reduce costs so we can make money in a lower [sales] market. There will be difficult decisions and we will reduce capacity by around 20 %, or 9 ,000 people," Mr Reilly said. About 50 % to 60 % of the job cuts would be made in Germany, he said. This means that about 4 ,000 jobs will have to go at GM Europe's plants outside Germany. The Antwerp plant employs about 2 ,500 people. Vauxhall's two plants in the UK, at Luton and Ellesmere Port, employ more than 4 ,000 people. Mr Reilly said that the carmaker was now entering a consultation period, which he hoped would be completed in December. Only then would GM be able to give specific information about which plants would be affected by job cuts, he added. He also said GM's European headquarters would be based at Germany's Ruesselsheim plant. GM pulled out of the deal to sell Opel and Vauxhall to Magna after months of negotiation, citing "an improving business environment". The decision caused anger in Germany and sparked walkouts at German plants. The German government had provided 1.5 bn euros ($2.3 bn; £1.4 bn) in bridging loans and had pledged a further 3 bn euros to help secure the Magna deal.
ING shareholder meet in share issue
Dutch financial services group ING has gained shareholder approval for a 7.5 bn euros ($11.2 bn; £6.8 bn) share issue, and plans to split the business. ING said 99 % of shareholders backed the proposals, which will see it sell its insurance business within four years to instead focus on its banking operation. While no date has yet been set for the share issue, it is expected to take place in the coming months. ING plans to pay off some of the 10 bn euros of state aid it got last year. 'Preferable' Like many global banks, ING required government financial support as a result of bad debts and the global credit crunch. The decision to split the firm in two was required by European Commission competition regulators as a result of ING gaining the state aid. "We think a split is preferable to keeping the bank and insurer together," said a spokesman for Dutch shareholder group VEB. "It will strongly reduce the risk profile, and this will benefit us as investors."
Toyota will solve the pedal fault
Toyota says it will make changes to accelerator pedals on 3.8 million already recalled vehicles in the US. It is the latest attempt to remedy a fault with the pedals which has been blamed for at least one fatal accident. In September, the car giant advised drivers to remove their floor mats after it warned the pedals could become jammed under it. In the latest move, Toyota will order dealers to shorten the accelerator pedals while it develops a replacement. Popular vehicles such as the Toyota Camry, the top-selling passenger car in America, and the Toyota Prius, the best-selling gas-electric hybrid, and the luxury Lexus brand are part of the recall. Government talks The first recall was prompted by a high-speed crash in August involving a Lexus ES350 that killed a California Highway Patrol officer and three members of his family. The government has attributed at least five deaths and two injuries to floor mat-related unintended acceleration in the Toyota vehicles . The carmaker and government regulators have been discussing a potential fix for several weeks. Dealers will begin work on customers' cars in January, with the new pedals becoming available in April. Some vehicles will have brake override systems installed as a precaution. The company said: "Toyota has and will continue to thoroughly investigate and take appropriate measures to address any defect trends that are identified."
US banking sector back to profit
The US banking industry returned to profit in the third quarter, but the government insurance fund went into deficit for the first time since 1992 , regulators announced Tuesday. The Federal Deposit Insurance Corporation said commercial banks and thrifts earned a collective 2.8 billion dollars in the third quarter. This came after a collective 4.3 billion dollar loss in the second quarter, and the profit was well above the 879 million dollars the industry earned in the same period in 2008. But the sector is still feeling the effects of the deep financial crisis triggered by a collapse of the US housing market and global credit crunch. "Today's report shows that, while bank and thrift earnings have improved, the effects of the recession continue to be reflected in their financial performance," said FDIC chairman Sheila Bair. More than 26 percent of all insured institutions reported a net loss in the latest quarter, and total loan balances declined by the largest percentage since quarterly reporting began in 1984 , the FDIC said. As projected in September, the FDIC's deposit insurance fund balance fell below zero for the first time since the third quarter of 1992. The fund balance of negative 8.2 billion dollars reflects a 38.9 billion dollar contingent loss reserve that has been set aside to cover estimated losses over the next year. The FDCI report showed total loans and leases declined by 210.4 billion dollars, or 2.8 percent, during the quarter. Loans to commercial and industrial borrowers declined by 6.5 percent, residential mortgage loan balances fell by 4.2 percent, and real estate construction and development loans dropped 8.1 percent. "There is no question that credit availability is an important issue for the economic recovery," Bair said. "We need to see banks making more loans to their business customers. This is especially true for small businesses that rely on FDIC-insured institutions to provide over 60 percent of the credit they use." The FDIC noted that 124 banks had failed so far this yer, and the number on the "problem list" grew to 552 ,the highest number in 16 years. "For now, the credit adversity we have been discussing for some time remains with us, and we expect that it will be at least a couple of more quarters before we see a meaningful improvement in that trend," Bair said. "Despite the challenges, I am optimistic that if we address these problems head-on, we will see clear signs of improvement in bank earnings and lending in 2010 The FDIC noted that it has 23.3 billion dollars of cash and marketable securities on hand. It has moved to bolster its position by approving a measure on November 12 to require insured institutions to prepay three years' worth of deposit insurance premiums -- about 45 billion dollars -- by the end of 2009. "This measure will provide the FDIC with the funds needed to carry on with the task of resolving failed institutions in 2010 , but without accelerating the impact of assessments on the industry's earnings and capital," Bair said.
Malaysia Airlines revises their winter flights
Malaysia Airlines announced revised timings for its winter flights from December 1 to January 31 , due to the fog at Dhaka airport, said a press statement. The flight MH-197 will depart Dhaka at 10.10 pm and reach Kuala Lumpur at 3 am, while the MH- 196 flight will depart Kuala Lumpur at 6.10 pm and reach Dhaka at 9 pm.
Vietnam will establish their first neuclear power plant
Vietnam's Communist-dominated parliament on Wednesday brushed aside criticism and approved building the country's first nuclear power stations, a project keenly watched by potential foreign partners. The "draft law on nuclear electricity" was approved by 77 percent of deputies present in the single-chamber national assembly, said one deputy critical of the project, Nguyen Minh Thuyet. He described debate in the chamber as "lively" as some deputies preferred the idea of building just one power station, rather than the plan finally approved for four reactors at two sites. According to the government's plans, at least one reactor should be operational from 2020. Together, the four reactors should have a capacity of 4 ,000 megawatts. The intention is to meet the energy needs of an economy that is growing annually by an average of 15 percent.
India moves to making pollution free car
Chetan Maini, the engineer who pioneered India' s first electric car, had his eureka moment two decades ago when he drove a vehicle fuelled by solar power across the blazing Australian outback. Now Maini, the man behind Reva Electric Car Co., is building in southern India what he says will be the world's biggest factory making battery- powered city commuter cars. "It's the first attempt at mass production of a green car," said Maini, who studied hybrid electric technology at California's Stanford University and developed the no-clutch, no-gears Reva as head of a 75- member engineering team. "With growing climate change awareness, I think we're at the tipping point for electric cars," Maini told AFP in an interview. The drive in 1990 which set Maini on his career track was a General Motors-sponsored solar- powered race in which his car finished third, beating many of the global car companies. "Driving across the continent on the sun's energy made me think how we could use alternative energy to power cars in the Indian context," he said. "When I saw how our cities were getting polluted, I realised employing clean, alternative energy could make a lot of sense -- we needed to develop this kind of technology," he said. Maini has put some 3 ,000 of the zero-polluting three-door Revas on the roads in India and Britain -- where it is known as the G-Wiz -- in the eight years since the company started selling the cars. The Reva was formed in 1994 as a joint venture between the family-owned Maini Group and AEV of the United States to manufacture environment-friendly vehicles. But it took seven years for the first Reva to go on sale as Maini and his team worked on the design. Afterward, "we were in a test marketing phase, trying to see how people used electric cars, what were their needs. But that's now over and we're ready to move to the mass-market stage," Maini said. In September, Reva got a big endorsement when GM announced it would team up with the tiny car company to develop a plug-in version of the best-selling GM Spark mini-car as the US giant embraces electrically powered driving. "We think their technology is the best," said GM India president Karl Slym. The Reva -- named after Maini's mother -- can seat two adults and two children and cover 50 miles (80 kilometres) on a single charge of electricity. New models feature sleeker looks than the Reva, which resembles a modified golf- cart, and will offer greater distance. The company's next generation three-door, four- seater hatchback NXR is intended to be a family car and will go into production in 2010. It will have a top speed of 65 miles per hour and travel 100 miles on a single charge. The car will go on sale for around 10 ,000 euros ( 15 ,000 dollars) and can be charged in 90 minutes. The higher-end NXG will have a 125- mile range and an 80 mile per hour top speed and sell for 23 ,000 euros in Europe. The price of the new vehicles is not fixed for India but the cars are expected to sell for "much less," said Maini. The Reva currently retails for around 350 ,000 rupees (7 ,500 dollars) and is built at a small factory outside the southern city of Bangalore. Maini is targeting people who want a vehicle for city jaunts or as a second automobile. The cost of running an electric car in India is a tenth of a petrol-fuelled car, Maini said. The car has no oil filters, spark plugs or radiators so maintenance costs are also low. "Since we started, there's been quite a big change in consumer mind-sets," said Maini, whose love affair with cars began when he was a child assembling remote-controlled toy vehicles. "We are also seeing a large policy shift by governments to environmentally friendly vehicles," he added. Maini is eyeing annual sales of "5 ,000 plus" for the next three years and then 30 ,000 annually from cars produced at his new Bangalore factory, which is being built with venture funding. There is a large market as the infrastructure for electricity is widespread -- even in India, he said. "All you need is the installation of a standard plug point -- 15 amps -- that is used for an air conditioner or an iron. Most people only need a larger car if they are going out of town." The tie-up with GM is part of a three-pronged strategy for Reva which wants to make its own cars under the Reva brand, franchise production in countries such as the United States and license the company's technology for use by global companies. GM and Reva have promised the new electrically powered Spark mini-car will be on Indian roads in a year and they see a market later abroad.
Grameen Phone want to reduce carbon pollution form Bangladesh
Grameenphone (GP) has set a target for reducing carbon emission by 30 percent from its entire operations by 2015. The mobile operator started adopting green technology in 2007 and so far has set up 12 solar and one wind power network sites. With an aggressive move, the company targets to set up 100 more base stations using green technology in off-grid areas. "It's high time we went for green technology, as Bangladesh badly suffers from climate change," said Matiur Rahman Siddiqui, additional general manager and head of Climate Change Initiative of Grameenphone. He said GP has so far managed to reduce carbon dioxide (CO2) emission by nine percent from its entire operations like networks, transports and offices. The company estimates that the successful results will save approximately 1 ,202 megawatt of electricity every year amounting to an equivalent reduction of over 700 tonnes of CO2. Siddiqui said the operator's CO2 emission until end-October is 140 ,458 tonnes. With the target achieved by 2015 , the emission amount will stand at around 99 ,814 tonnes. Emission factors are being considered under international standards set by the United Nations. In line with the climate change programme, an energy-efficient headquarters has been constructed where GP will move to by March. The head office buildings will require around 20 million kilowatts of electricity per hour. "We have set a target to reduce our energy requirement by 40 percent," said Siddiqui. GP and telecom equipment vendor Huawei partnered in 2008 to build a green mobile network in Bangladesh to transform the operator's core network to an environmentally friendly one with layered architecture solutions, and reduce the energy requirements of its base stations. Recognising the companies' initiative, GSM Association has given away Green Mobile Awards to GP and Huawei. Siddiqui said such a recognition will encourage other operators to adopt green technology in Bangladesh. According to estimates by Ericsson, a telecom equipment maker, around 0.14 percent of global CO2 emission and around 0.12 percent of primary energy use are attributed to mobile telecom technology. For instance, this compares to 20 percent of CO2 emission and around 23 percent of primary energy use for travel and transport. The annual CO2 footprint of the average mobile subscriber is around 25 kilogrammes, which is equivalent to driving an average car for an hour or running a five-watt lamp for a year. The Ericsson study said it is the energy consumption in the 'use phase' of radio access networks that the environment is most significantly impacted, out of all the company's products. Usually in the radio access products of the mobile networks, the highest volume or 75 percent of indirect CO2 emissions are made, according to Ericsson. In Bangladesh, 22 ,000 base stations of six mobile operators, supporting the nationwide telecom network, could raise a question as to how much CO2 is emitted by the rapidly growing mobile sector.
By text messaging mobile Multimedia services revenue tripled
Multimedia services will surpass text messaging this year as the main source of mobile operators' non-voice revenue in the Asia-Pacific region, industry analyst IDC said Monday. Driven by the rise of more technologically advanced handsets, multimedia services should reach $16.34 billion, or 11 per cent of total mobile revenues in the region outside of Japan, by the end of this year, it said. Text messaging, or Short Messaging System, which has been a major earner for years because of its simplicity, is likely to contribute around 10 per cent, or $14.65 billion, IDC said. Ring tones and wallpaper downloads were the early drivers of multimedia mobile services, which now include games, videos, pictures, music clips and other applications. IDC said text messaging last year accounted for 10.3 per cent of total mobile services revenues, with multimedia services contributing 10.1 per cent. 'IDC predicts that SMS contribution will plateau at 10 per cent for the next few years, while mobile multimedia services will continue to ride on growth trajectory,' the market researcher said. IDC data showed that by 2013, multimedia services revenues in the region outside Japan will reach $45.25 billion, more than double the $18. 18 billion in projected revenues from text messaging. 'Today, the emergence of handsets featuring larger screens and even touch-screen interfaces has pushed the uptake of mobile multimedia services to a new level,' said IDC senior research manager Alex Chau. 'This has spurred content and application developers to develop tens of thousands of applications to satisfy this new demand amongst mobile users.' New mobile handsets now come with advanced operating systems and high-speed connectivity, allowing subscribers to purchase and share content with ease.
Climate cash uncounted for poor countries
Large sums promised to developing countries to help them tackle climate change cannot be accounted for, a BBC investigation has found. Rich countries pledged $410 m (£247 m) a year in a 2001 declaration - but it is now unclear whether the money was paid. UN Secretary General Ban Ki-moon has accused industrialised countries of failing to keep their promise. The EU says the money was paid out in bilateral deals, but admits it cannot provide data to prove it. " There have been promises which have not been fully materialised - there is an issue of trust " UN Secretary General Ban Ki-moon The money was pledged in the 2001 Bonn Declaration, signed by 20 industrialised nations - the 15 countries that then made up the European Union, plus Canada, Iceland, New Zealand, Norway and Switzerland. They said they would pay $410 m per year until 2008 - a total of $1.6 bn. But only $260 m has ever been paid into two UN funds earmarked for the purpose, the BBC World Service investigation has found. "There have been promises which have not been fully materialised. There is an issue of trust," says Ban Ki-moon. The question of finance for developing countries to tackle climate change is one of the keys to a deal at the Copenhagen summit next month. Poor countries may not sign up to a new agreement unless they trust rich countries to keep their promises, and are satisfied with the mechanisms put in place to handle the flow of funds. Unequal sums The industrialised governments which drew up the Bonn Declaration say they never intended to put the money just into the UN funds. MONEY PAID INTO UN FUNDS Least Developed Countries Fund Received $155.4 m Biggest donor: Germany $34.6 m Special Climate Change Fund Received $104.1 m Biggest donor: UK $18.6 m Source: Global Environment Facility (figures at 30 /9 /09) The Declaration allowed them to spend it in " bilateral and multilateral" ways, they say. Artur Runge-Metzger, the senior climate change negotiator for the European Union, maintains the EU has lived up to its end of the bargain. "We can say we met the promise, climate finance has really been stepped up," he argues. However he admits the EU cannot provide data to show it did pay the money through these bilateral and multilateral means. "It's sometimes very hard to say what is the climate bit of this financing," he says. Richard Myungi, a climate change negotiator for the Least Developing Countries says: "We feel frustrated, we feel betrayed." Boni Biagini, who runs the UN funds, also believes much more money should have been paid in. "These numbers don't match the $410 m per year. Otherwise, we'd be handling billions of dollars by now," he says. Confusion Dr Marc Pallemaerts, who drafted the Bonn Declaration in 2001 when he was the deputy chief of staff for the European Union's Belgian Presidency, admits some developing countries may have been led to believe the promised money would go solely into the UN funds. "Some countries may have been genuinely misled - others knew it was deliberate ambiguity," he maintains. The Bonn Declaration is surrounded by confusion and has led to mistrust between developed and developing countries. UN Secretary General Ban Ki-moon says any new financing agreement signed at Copenhagen must be clear. "This whole agreement and negotiation should be based on trust and confidence," he says. He adds that any new financing deal must be " measurable, reportable and verifiable".
Japan airlines secures bailout
Japan Airlines has announced it has secured government approval for a loan that will allow it to continue flying. This is the fourth time the troubled carrier has been bailed out by the state-run Development Bank of Japan since 2001. The airline is struggling with big debts and a large pension fund deficit. Earlier, shares in the airline slumped almost 9 % after one of the country's biggest brokers said it had sold its entire holding in the troubled airline. Share sell-off The carrier was only able to secure the loan once it had confirmed to the government that " convenience for users and corporate activities would be significantly affected [without aid]". The size of the loan was not disclosed but the airline said it had obtained the "funds necessary for the continuation of our flight operations." Between July and September, Japan Airlines lost 32.3 bn yen ($364 m; £220 m) and is struggling with $15 bn of debts. Along with all major global airlines, it has been hit hard by falling passenger numbers during the downturn. Shares in the company have fallen by more than a half since the start of the year. Last week, the airline was offered a $1 bn financial lifeline from the Sky Team grouping of airlines, led by Delta Air Lines. Tuesday's share price slump was sparked by an announcement by Mitsui & Co broking house that it had sold all its shares in the carrier between April and September.
Gulf Air unvail savings plan
Gulf Air on Monday unveiled a plan to achieve one billion dinars ($2.65b) in savings over five years and make Bahrain's state-owned carrier a profitable business. 'At the moment Gulf Air currently relies on significant government support, spending far more than it earns. This is clearly unsustainable,' chairman Talal al-Zain said in a statement. 'If we do not implement this programme, Gulf Air will continue to be an unacceptable burden on the national economy,' Zain said. Chief executive Samer al-Majali said Gulf Air is on course to post a loss of $193 million for 2009. Gulf Air is 'looking to significantly resize' the workforce and 'some redundancy may be inevitable,' he said. The company said it will axe 15 routes and close operations at unprofitable locations including Shanghai, Hyderabad and Bangalore. However, it plans to start serving 20 new destinations in the Middle East, Africa, Asia and Europe. Gulf Air plans to adjust its fleet to focus on narrow-body aircraft and regional jets. 'The strategic plan will necessitate a substantial increase in our current requirement for narrow- body aircraft beyond the fifteen ordered ( Airbus) A320s,' the airline said. It may sell five long-haul A340s and some other aircraft, as part of its 'strategy to turn the company into a commercially sustainable business in 2012.' Gulf Air, which currently operates 36 aircraft, laid off 500 employees in January. Officials say it has run up total losses of more than one billion dollars. The company was founded in 1974 and Bahrain initially had three partners — Qatar, Abu Dhabi and Oman — but they have all dropped out.
HP profit jumps
Hewlett-Packard Co tripled the size of its share repurchase program to $12 billion as China sales and better profit margins on its services boosted quarterly earnings. The fiscal fourth-quarter results released on Monday were in line with preliminary figures that HP gave two weeks ago, which had topped Wall Street's estimates at the time. Shares of HP fell slightly in after-hours trading. HP, a hardware and technology services company that is a bellwether for IT spending, has been more cautious than some of its peers in predicting an economic turnaround. But chief executive Mark Hurd sounded somewhat more optimistic, noting pockets of returning demand, including in its closely watched printer business, which has struggled this year. 'The economy remains challenging, but we do see encouraging signs of recovery in certain markets,' Hurd said on a conference call with analysts. 'They're basically pointing to year-over-year growth in the January quarter,' said Kaufman Bros analyst Shaw Wu. 'It's a good sign.' Hurd cautioned that Europe remains weak, if stable, and it was not clear when a recovery will take hold in the region. HP's diversification, recurring revenue, and cost controls have provided it with a solid cushion during the downturn. HP bought EDS last year to become the No 2 provider of IT services, behind IBM. HP said it has now cut 19,000 jobs as it continues to integrate the company. HP's services revenue rose 8 per cent, and the company said signings were 'strong,' positioning it well for next year. PC unit sales rose 8 per cent, although revenue fell 12 per cent as prices across the industry continue to fall. HP, the world's No 1 PC maker, continues to engage Acer Inc (2353TW) in a price war, analysts say, particularly on consumer laptops. HP said it made big gains in the enterprise PC business in the United States, and PC revenue in China jumped 40 per cent. 'Although growth has slowed down to a certain extent in the U.S, emerging markets, where consolidation is taking place, is providing new opportunities for HP to broaden its reach,' said Unni Narayanan, chief executive of Primary Global Research, an investment research firm. Earlier this month HP announced a $3 billion deal to acquire 3Com Corp (COMS.O), as it moved to take on network giant Cisco Systems Inc ( CSCO.O). As competition in the corporate data centre heats up and industry consolidation continues, analysts expect HP to remain aggressive in M&A. 'The No 1 thing we get back from customers is they'd like us to do more, they'd like us to have a broader portfolio with more capabilities,' Hurd said. HP raised its stock repurchase plan by $8 billion, the company said. About $4 billion remained of an $8 billion share buyback program approved in September 2008. Chief financial officer Cathie Lesjak said the authorization was part of its normal strategy. HP reported a net profit of $2.4 billion, or 99 cents a share, in its fourth quarter, up from $2.1 billion, or 84 cents a share, in the year-ago period. Excluding items, HP earned $1.14 a share. Revenue fell 8 per cent to $30.8 billion. As it forecast earlier this month, HP expects fiscal 2010 earnings, excluding items, of $4.25 to $4.35 a share on revenue of $118 billion to $119 billion. Shares of Palo Alto, California-based HP closed at $51.02, up 1.96 per cent, on the New York Stock Exchange and fell to $50.71 after hours.
Tata Motors buying stake auto maker
India's largest carmaker Tata Motors is considering buying a stake in truck and bus manufacturer Swaraj Mazda, a report said Tuesday. The auto giant is looking at buying the 17 per cent stake from private equity firm Actis, according to the Economic Times business daily, citing people familiar with the matter. Actis owns a 7.7 per cent direct stake in Swaraj and 9. 3 per cent through its parent CDC. A spokesperson for Tata Motors said the report was 'purely speculative' while Actis' India head, JM Trivedi, refused to comment, the Economic Times reported on its web site. Swaraj Mazda makes buses, trucks and ambulances for the Indian market and is majority owned by Japan-based Sumitomo Corporation, which raised its shareholding to 53.5 per cent this year. Actis is a private equity firm focused on emerging markets, with more than $4.8 billion under management, according to its web site.
Clothing sales down in USA
After showing signs of improvement in early fall, sales of clothing and luxury goods weakened a bit the first half of November, compared with a year ago, when stores pulled shoppers in with massive discounts, figures released Tuesday show. 'It was a little bit softer,' said Michael McNamara, vice president at SpendingPulse, referring to the weak apparel and luxury figures. He cautioned against comparing the first half of November this year and last very closely: SpendingPulse found that sales of women's clothing fell 3.3 per cent; sales at department stores fell 7.1 per cent; footwear sales slipped 1. 5 per cent; and men's apparel sales dipped 1 per cent for the period from Nov. 1 to Nov. 14. Overall apparel sales rose in October after many months of declines starting in July 2008. Luxury sales, which rose in September and October, had shown declines since August 2008.
Nokia E72 in Bangladeshi store
Some problem with A380 superjumbo project
The French markets watchdog heard claims Monday that 17 current and former EADS aerospace executives saved themselves millions by exploiting insider knowledge of problems with the A380 superjumbo project. The executives and three firms -- EADS and shareholders Daimler and Lagardere -- are accused of selling stock options in March 2006 because they knew the share price would slump when A380 production delays went public. They sold their stock options when the shares were around 30 euros, near their historic high. The price plummeted by 26 percent in a single day when the delay was officially announced in June that year. The executives face fines of up to five million euros (7.5 million dollars) if convicted by the Financial Market Authority (AMF) after the hearings, which follow a 30- month probe and which are not open to the press or public. The case is also being seen as a test of the AMF itself, with the watchdog under pressure to show it is able and willing to hold big business to account. Former EADS co-chief executive Noel Forgeard said he was "serene" as he arrived at the hearing on Monday. "I am fully confident in the jurisdiction of the AMF to whom my lawyers here have provided all the elements that show my innocence," he told reporters. Thomas Enders, current chief executive of EADS' Airbus unit, said he too was sure he would be cleared by the week-long hearing held in the Palais Brogniart, the former home of the Paris stock exchange. Forgeard faces the biggest fine of 5.45 million euros. He earned 3.5 million euros when he sold his European Aeronautics Defence and Space (EADS) options, but his lawyers argue they they can show that he began selling the stocks before managers became aware of the A380 problems. Lagardere, a French media group, and Daimler, a German carmaker, between them sold 7.5 percent of the shares in EADS -- in which the French state is also a shareholder -- and are being heard as corporate entities. A confidential AMF report leaked in July said that an inquiry had found that seven current and former EADS executives made millions of euros by exercising their company stock options in March 2006. But the report found that Enders, as well as shareholders Lagardere and Daimler, had not engaged in insider trading. Apart from Forgeard, the executives named in the report are Airbus commercial director John Leahy, former Airbus finance director Andreas Sperl, and former EADS managing director Jean- Paul Gut. Former Airbus vice president Olivier Andries, former Airbus human resources director Erik Pillet and Airbus Centres of Excellence chief Alain Flourens were also named. The report will likely influence this week's hearings but its findings are not binding. The EADS executives turned up at the Palais Brogniart Monday with a bevy of lawyers and interpreters in tow for the high-profile hearings. The first morning was largely taken up with procedural problems, Daimler's lawyer said as proceedings broke up for lunch. The hearings come three days after an Air France A380 made its inaugural flight from Paris to New York. The mammoth double-decker plane made its first commercial flight in 2007 from Singapore to Sydney with Singapore Airlines. EADS last week reported a quarterly loss, its first in two years, and warned it might cut production because of persistent problems with the A380 and its planned military transporter A400 M. The firm, which controls several other leading aerospace companies in addition to Airbus, is pulling through a deep crisis and restructuring. EADS chief executive Louis Gallois, in an interview on Monday, pledged support for his executives, adding that "everyone is in a hurry to move on from an affair that is more than three years old."
Grameen Cybernet lunch low cost IP phone in december in Bangladesh
Internet service provider Grameen Cybernet Limited will introduce 'GCL IP Telephony' service all over the country in December with an aim to provide clients with low-cost telephone facility. People will be able to talk at a lower cost through using GCL Internet Protocol Telephone once the modern technology is installed across the country. The call rates from IP Phone to IP phone will be free of costs, but it will cost a caller 10 paisa per minute from IP phone to mobile phone and PSTN operators and Tk 2 to Tk 10 for ISD calls. The service will also provide various internet services including voicemail, caller ID, call forwarding, call waiting and conference calls. 'We are expected to launch IP telephone service in Bangladesh market from December this year. The GCL has developed the consumer friendly IP phone by its own experts using open source technology,' Mohammad Masum Billah Riton, GCL admin and HR deputy manager, told reporters at a news conference at Dhaka Reporters' Unity on Sunday. He said the modern service (IP telephony), based on open sources technologies, had been designed and implemented by GCL without any foreign technical assistance. The GCL, which was awarded the BTRC licence on August 18, has been providing internet service and other services like software development, corporate network and web solution since 1996.
Nestle open a new production unit in Bangladesh for Maggi
The government will soon develop special economic zones (SEZs) to lure both foreign and domestic investments, said Industries Minister Dilip Barua yesterday. "Bangladesh is a unique place for investment. Foreign investors can invest in the special economic zones with modern technology and help accelerate economic activity and generate employment," he said. "Foreign investors can come and invest in the various thrust sectors, such as ceramics, light engineering and shipbuilding." Barua made the call to foreign investors at the inauguration of a new production unit of 'Maggi' noodles by Nestle Bangladesh Ltd. The new unit has been set up at Nestles' factory in Sreepur, Gazipur. Deputy Head of Mission of Switzerland Gabriele Gerighetti and Nestle Bangladesh Chairman Latifur Rahman and Managing Director Laurent Therond were also present. Nestle Bangladesh officials said the company invested about Tk 13 crore to set up the new production unit to meet growing local demand for noodles. Officials said the new unit would raise the noodles production capacity almost threefold -- from about 3 ,500 tonnes to over 10 ,500 tonnes a year. "Nestle's expansion is an important initiative. Such investment will allow us to realise our dream of making Bangladesh an industrially developed nation," said Barua. "In the new Industrial Policy, we will focus on facilitating foreign and non-resident Bangladeshi investors." The minister said the government would take steps to safeguard foreigner's investments and facilitate easy transfer of their profits and remittance. "We want foreign investors to be our development partners," he said. Barua also said the government will protect worker interests, encourage companies to carry out their social responsibilities and develop the green industry. Gerighetti said Bangladesh is truly a unique place for investment and tourism. "The potential of Bangladesh is huge," he said, adding that Swiss investors are investing here. " Some of them are also waiting to invest." Nestle Bangladesh Ltd, a subsidiary of health, nutrition and wellness company Nestle SA, began operations in Bangladesh in 1994. The company manufactures and markets various brands, including Maggi Noodles, Maggi soup, Nescafe, Nido power milk and various infant cereals. Therond said the expansion would help Nestle fulfil rising demand for noodles among consumers. "Thanks to the Bangladeshi consumers, our new production unit will certainly be able to meet demand. We will also bring some new products for Bangladeshi consumers."
Reliance offer US chemical company for buyout
LyondellBasell Industries said Saturday Reliance Industries offered to acquire a controlling interest in the beleaguered chemical company, which is under Chapter 11 bankruptcy protection. LyondellBasell declined to disclose the value of the cash offer. India-based Reliance did not immediately respond to requests for comment. Reliance's offer "represents a potential alternative to the initial plan of reorganization," LyondellBasell said, and it "will continue to work with all parties to design an approach that maximizes value for the company's creditors." The offer is non-binding and is in addition to other non-binding equity financing proposals LyondellBasell has received. LyondellBasell is the world's third-largest independent chemical company and is controlled by billionaire investor Len Blavatnik. Its products are used in gasoline, plastics, electronics, autos, paints and many other products.
South korean will get Apple iPhone this week
Apple Inc's iPhone is coming to South Korea this week, a local carrier announced Sunday, bringing the iconic communications device to one of the world's most sophisticated mobile phone markets. KT Corp. began accepting orders for the iPhone both online and in stores Sunday and service will start Nov. 28 as part of an official launch, said Alice Park, a spokeswoman for the country's second-largest mobile carrier.
A German rail company construction rail department in Qatar and Ba hrain
German rail operator Deutsche Bahn has signed a 17 bn euro ($25 bn; £15 bn) contract to build rail and underground lines in Qatar and Bahrain. For Qatar's capital Doha, Deutsche Bahn will design and build a four line metro system with 98 stations. A high speed train line to neighbouring Bahrain is also planned, with trains reaching speeds of 350 km/h (220 mph). The contract will create a new company called the Qatar Railways Development Company. Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani and German transport minister Peter Ramsauer were present when the deal was signed in Doha. Qatar Railways Development Company will be 49 % owned by Deutsche Bahn and 51 % by Qatari Diar, Qatar's state-owned infrastructure and property development firm. Deutsche Bahn said that it hoped to win more contracts in the Middle East following what it hoped would be a fruitful partnership with Qatar.
EBay complete Skype scale
Online auction giant eBay announced Thursday it had completed its sale of Skype to an investment group that includes the two founders of the Web communications company. The previously announced sale of a 70 per cent stake in Skype for some two billion dollars had been held up by lawsuits filed by Skype founders Niklas Zennstrom and Janus Friis. Zennstrom, a Swede, and Friis, a Dane, settled the suits this month and will hold a 14 per cent stake in Skype through their new company, Joltid Ltd. Fifty-six per cent will be held by an investor group led by private equity firm Silver Lake Partners, the Canada Pension Plan Investment Board, venture capital firm Andreessen Horowitz and others. EBay will retain a 30 per cent equity investment in Skype. EBay received $1.9 billion in cash and a note for $125 million for the 70 per cent stake in Skype. The deal values Skype at $2.75 billion. EBay purchased Skype from Zennstrom and Friis in 2005 for a price tag that eventually exceeded $3.1 billion. Skype, which has its headquarters in Luxembourg, bypasses the standard telephone network by channeling voice and video calls over the Internet. It allows users to call others free of charge and provides the ability to connect with land lines or mobile devices at low rates.
Asian airlines go dicline
Asia's airline industry is pulling out of a slump sparked by the global recession with signs passenger numbers are rising, a regional body said Friday, but there were warnings a rebound will be slow. 'Hopefully, we are at least through the worst of the downturn,' Andrew Herdman, director- general of the Association of Asia Pacific Airlines, said at an industry forum in Singapore. 'There are some encouraging signs that air traffic is starting to recover.' Figures released Thursday by the 17-member AAPA showed its airlines carried 11.1 million passengers in October, a slight improvement over the previous month. However, the figures were still below levels seen a year ago and despite signs of a recovery, the regional airline industry is still expected to turn in a collective loss for 2009, Herdman said. He did not give a figure for the losses expected this year but said the industry lost 4.8 billion US dollars in 2008. The International Air Transport Association has estimated that the global airline industry will lose 11 billion US dollars this year. 'In recent months, most airlines have seen load factors recover but low yields mean continuing losses for the industry and rising oil prices are certainly not helping,' said Herdman. 'Asia Pacific airlines are expected to report heavy losses this year.' Given the severity of the global recession, the worst since the 1930s, it will likely take some time for the industry's health to return to pre- crisis levels, he said. Airlines 'continue to face an extremely challenging operating environment' and 'it will take time to nurse battered balance sheets back to full health,' Herdman added. Chew Choon Seng, chief executive of Singapore Airlines (SIA), an AAPA member, pointed to a recovery, saying: 'The evidence, thankfully, is that we have passed the bottom of the downturn and that we are into a gradual recovery, month-on-month if not yet year-on- year.' But he said risks remained, including the sustainability of the global economic recovery and worries the A(H1N1) flu virus will disrupt travel plans during the northern hemisphere winter season. SIA narrowed its losses to 158.8 million Singapore dollars (114.5 million US) in the September quarter, from 307 million Singapore dollars the previous three months. One of the key questions is whether demand for business- and first-class air travel, generally known as premium traffic, will return strongly, delegates at the forum were told. 'Premium traffic has stopped flying because businesses have stopped, that's what the recession is all about,' said Tony Tyler, chief executive of Hong Kong carrier Cathay Pacific Airways. 'The question is will they come back in sufficient numbers, in sufficient strength for us to get our yields up.' Cathay Pacific, along with SIA, relies considerably on premium traffic, which has suffered after business executives cut down on air travel to reduce costs. SIA, which draws 40 per cent of its revenues from premium traffic, said it was already seeing some improvement in bookings for business- and first-class seats. For the long term, the Asia-Pacific looks set to become the biggest market for the world's aircraft makers, said Randy Tinseth, Boeing vice president for marketing, commercial planes. He said regional airlines are forecast to buy almost 9,000 airplanes worth 1.1 trillion US dollars over the next 20 years. The expected boom in orders will be fuelled by a need to meet rising air travel demand as the region's economic growth outpaces that of the rest of the world, he said. 'What this means is that the Asia-Pacific market both in terms of units as well as in terms of investments will be the world's largest marketplace,' he told a media briefing on the sidelines of the aviation forum.
Job cut in Nokia
Nokia, the world's biggest mobile phone maker, said on Friday it would shed about 330 jobs in Finland and Denmark as part of a streamlining of its research and development operations. 'The planned changes are expected to affect up to 230 employees at Nokia's Oulu site in Finland and approximately 100 employees at Nokia's Copenhagen site,' the firm said in a statement, It added it currently had some 17,000 employees in research and development, of which more than 2,000 in Oulu and more than 1, 000 in the Danish capital. The mobile phone giant launched a cost-cutting programme last January, after its earnings fell as consumers cut back on buying handsets amid the global financial crisis. The programme aims to generate more than 700 million euros (1.0 billion dollars) in annual savings. Before Friday, Nokia had announced about 3, 700 job reductions since January, including around 1,300 voluntary redundancy packages. Last month Nokia posted a surprise swing into red when it reported a third-quarter net loss of 559 million euros amid rising competition in the smartphone market and problems with its Nokia Siemens Networks joint venture.
India stop their rice import
India has scrapped tenders to import rice, saying it has enough stocks to manage despite a harvest shortfall following the worst monsoon in almost four decades. A top-level cabinet committee on food cancelled the three tenders totalling 30 ,000 tonnes, which would have represented the first imports of the staple by India -- a traditional exporter -- since the 1980 s. "We are not importing (rice). We have adequate stocks. We will review (the decision) if there is any need," Commerce Minister Anand Sharma told reporters late Friday after the committee met. The tenders had been floated by state-owned trading firms MMTC, State Trading Corp and PEC. However, the Press Trust of India quoted an unnamed official as saying: "The government does not want to buy at such high prices." The decision not to import marks a U-turn from a government announcement when Sharma said India was in talks with Thailand and Vietnam about buying rice to offset an estimated summer harvest shortfall of at least 15 million tonnes.
Netbook's demand increase in Bangladesh day by day
It has a slim look. Tech-savvy customers are gradually convinced by mobility and affordable prices. So is the indication in the sales of netbooks, the latest entry in Bangladesh's portable computer market. Light and easy to browse, these sleek mini-notebooks are now gaining popularity, mainly among businessmen and students. Around 15 ,000 netbooks of different brands have so far been sold in Bangladesh since 2007. The prices range from Tk 25 ,000 to Tk 40 ,000 each. "I am looking for a design which I can carry always with me like a folder and get connected with the internet," Habibur Rahman, a businessman, told The Daily Star at the BCS ICT World Fair. Netbooks -- also known as sub-notebooks -- are a rapidly evolving category of small, light and inexpensive laptop computers suited for general computing and accessing web-based applications. After their inception in late 2000 , smaller netbooks optimised for low weight and low cost. Having smaller screen and keyboard, they offer reduced specification and computing power. Netbooks range in size from below 5 inches to over 13 inches and weigh between 2-3 pounds. Netbooks entered Bangladesh when Asus unveiled its first netbook, ASUS Eee PC, on the global market in late 2007. Since 2007 , around 5 ,000 Asus netbooks have been sold here, according to Global Brand Private Limited, the sole distributor of Asus. "Businessmen and students are the main customers of netbooks," said Mohammad Mizanur Rahman, the distributor's manager (sales). Bangladesh's PC (personal computer) penetration is one of the lowest in the world (4.5 per 1 ,000). However, the growth rate is quite impressive. A recent study indicates that the PC growth rate in the country is around 40 percent per year, according to Bangladesh Computer Samity. Industry insiders said netbooks' popularity depends on availability of the internet. Bangladesh's only 4 percent internet penetration rate is not a good sign for sellers. However, SM Rashed-Uz-Zaman, business manager of Computer Source, a leading computer seller, said queries for netbooks have increased gradually. At the BCS fair, his company has sold 100 laptops, 20 of which are netbooks. Computer Source brought HP, Fujitsu, Dell and Portlink netbooks to Bangladesh eight months ago. The company sold more than 1 ,800 netbooks. Around 3 ,000 Acer brand netbooks were sold in the last one and a half years in Bangladesh market. "Price is one of the major factors for which customers prefer netbooks," said Shaharul Haque, sales consultant of Executive Technologies, the sole distributor of Acer in Bangladesh, It is estimated that almost thirty times more netbooks were sold in 2008. Global netbook makers sold 11.4 million netbooks in 2008 , which was 70 percent more than in 2007. The year 2007 witnessed sales of only four million netbooks on the global market. For 2009 , sales are projected to jump to 35 million, while figure will reach 139 million in 2013 , according to ABI Research, a market intelligence company specialising in global connectivity and emerging technology. In Bangladesh, laptops have become the first choice in case of buying personal PC. However sellers are not ready to think netbooks will be a segment that may replace laptops soon. "Multi-featured laptops are replacing desktop. But Bangladesh portable computer market trend does not show any sign of any replacement of laptops," said Haque. "Low penetration of internet is a hurdle."
Biding start for Cadbury
US chocolate maker Hershey is considering launching a solo bid of at least $17 bn (£10 bn) for British firm Cadbury, according to reports. Under pressure from its charitable trust, Hershey has lined up funding from Bank of America and JP Morgan, the Wall Street Journal reported on Friday. But the US company is still also considering a joint bid with Italy's Ferrero, the paper said. Cadbury has already rejected a £9.8 bn offer from food firm Kraft.
ECB reduces their emergency fund
The European Central Bank (ECB) will scale back its liquidity measures for fear of fuelling inflation. ECB President Jean-Claude Trichet said some fiscal stimulus measures were no longer needed to the same extent. He said any measures that pose "a threat to the achievement of price stability must be undone promptly and unequivocally". The eurozone emerged from recession during the third quarter. Its annual inflation rate is currently 0.5 %. Back in June, eurozone inflation turned negative for the first time, falling to -0.1 % after it was dragged down by lower energy and fuel prices. In July 2008 it peaked at 4.1 %, driven by the record oil prices at the time. Crisis not over Some economists have warned that the growth in the third quarter was purely driven by state aid, and fear the region will slip back into recession if it is removed. Mr Trichet himself said that it is too early to declare the crisis over. "Recent financial developments have been more benign," he added. "However a significant volume of official support underlies these developments." The central bank governor said he was keen to make sure the private sector does not become dependent on government, or central bank support. He has already signalled that the bank is unlikely to renew its offer of 12- month bank loans after the third tranche in December. Earlier this week, a second ECB council member also said the bank may offer fewer three-month and six-month loans next year. Bankers bonuses Trichet also spoke out over bankers bonuses. "Profits earned should be used, as a priority, to build capital and reserves rather than to be paid out as dividends or undue compensation," he urged. "The financial sector must not forget that it is to serve the economy and not the other way round, " he concluded. "Compensation and bonuses must remain contained."
Valero energy shuts another energy plant
Valero Energy has announced it is permanently shutting down its oil refining plant in Delaware City, with the loss of 550 jobs. The company says the closure of the 210 ,000 barrel a day plant will reduce operating expenses by $450 m (£273 m). The plant is the largest refinery in the US to close this year. Valero also closed its Aruba refinery indefinitely in August. The recession and slumping fuel demand have squeezed margins for US refiners. The Delaware City refinery was losing the company $1 m a day, according to Valero spokesman Bill Day. Delaware is already wrestling with rising joblessness. The state's unemployment rate has jumped to 8.7 % this year.
Car company Volkswagen will increase their production
Volkswagen (VW), Europe's biggest car company, has announced plans to invest 26 bn euros ($28. 5 bn; £15.8 bn) over the next three years to boost production. It will also invest 4.4 bn euros in China through joint ventures. The firm has said it plans to overtake Toyota as the world's biggest carmaker by 2018. VW executives also signed contracts clearing the way to complete the takeover of rival Porsche. The two firms agreed to merge in August, ending four years of acrimony. VW also approved the purchase of the bankrupt carmaker Karmann. It will begin vehicle production at Karmann's plant in Osnabrueck, in north-west Germany, in 2011. The announcements came out of the firm's supervisory board meeting. "The Volkswagen Group is vigorously driving forward its long term growth strategy by investing in environmentally friendly models, innovative technologies and new plants," said chief executive, Martin Winterkorn. "We are continuing to make focused investments in our future."
Computer company Dell's profit fall
US computer maker Dell has reported another decline in quarterly profits, sending its shares lower. Net profit at the US giant was $337 m (£202 m) in the three months to October, down from $727 m last year. Dell's revenues also dropped 15 % to $12.9 bn. Both figures missed analysts' expectations, sending shares down 7 % in after-hours trading. Although Dell did not provide a formal outlook, it said it expects fourth-quarter revenue to improve. Global computer sales have been knocked by the worldwide recession, as customers cut back on their spending. Since returning as chief executive in 2007 , founder Michael Dell has cut more than 10 ,000 jobs and acquired several companies. Dell bought IT services provider and fellow Texan firm Perot Systems for $3.9 bn in September.
Malaysian mobile oparetor Maxis make a good profit
Malaysia's top mobile operator, Maxis, made a strong return to the bourse Thursday in Southeast Asia's biggest ever IPO worth $3.3 billion. Maxis Berhad, controlled by reclusive Malaysian tycoon Ananda Krishnan and Saudi Telecom, opened on Bursa Malaysia at a 9.2 per cent premium to its 5 ringgit ($1.49) reference price. The opening price of 5.46 ringgit was at the top end of forecasts for Maxis' return to the stock market, two years after it was taken private and de-listed. 'Today's listing marks another milestone on our bourse — the largest IPO in the history of Southeast Asia and the largest telecommunications IPO in Asia-Pacific since 2000,' said second finance minister Ahmad Husni Hanadzlah. Ahmad Husni said at 5 ringgit per share, Maxis' market capitalisation stands at 37.5 billion ringgit, expanding the capitalisation of the nation's bourse by 4 per cent. 'The offering was met with strong demand from international and Malaysian investors,' he said at the launch ceremony. 'On the global front, the return of Maxis has attracted the attention of the international investment community to the Malaysian equity market.' Maxis Berhad said earlier this month it had raised 11.2 billion ringgit ($3.3b) in the IPO. It offered 2.25 billion, or 30 per and the majority were taken up by institutional investors. Parent company Maxis Communications, which is not listed, is expected to deploy the proceeds of the sale on funding expansion in the booming Indian and Indonesian markets, and to reduce debt. The listing includes only Maxis' Malaysian mobile business and excludes its ventures in India and Indonesia — a factor that has raised questions over the company's growth prospects. But analysts said that funds were obliged to buy the new heavyweight counter as it will be included as a component of the bourse's main index, the Kuala Lumpur Composite Index. The IPO also benefited from a 'scarcity premium', as many local institutions received smaller applications than they had applied for. 'This is a powerful return to the bourse and will be a boost for the index going forward' said Ikmal Hafizi, a telco analyst with TA Securities. 'The bourse hasn't seen this kind of market trading in at least three years' he said, but warned the performance might not be sustainable and that in a few weeks the share price could slide to 5.00-5.10 ringgit.
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