Iraq cabinet ratifies oil deals

Iraq's cabinet has ratified a deal with two foreign energy companies
to develop the giant southern oilfield in Rumaila. The contract with
Britain's BP and CNPC of China is the first major deal with foreign
firms to be signed since an international auction in June. The
project aims to almost triple output at the 17 bn barrel field -
increasing it by 2 m barrels a day. Iraq has the world's third
largest oil reserves, but production lags behind potential due to a
lack of investment. The country's total daily output of 2.4 m barrels
is lower than it should be due to problems stemming from sanctions
against former Iraqi governments, lack of investment and insurgent
attacks, analysts say. Bidders withdraw Thirty two companies -
including Shell, Exxon, BP and Total - bid for contracts to develop
six oil fields and two gas fields in June's televised auction, Iraq's
first big oil tender since the invasion of 2003. But most of the
bidders withdrew at the last moment, saying the terms on offer were
unfavourable. BP and CNPC agreed to run the Rumaila field - near the
southern city of Basra - after US giant Exxon Mobil turned it down.
Iraq's oil ministry offered 20- year service contracts on the field,
stipulating that companies would not be paid anything until a
minimum level of production - close to the amount currently being
produced - was reached. Above that point, the companies would be
paid a certain amount per barrel up to a maximum level stipulated by
the ministry. The maximum amount being offered by the ministry in the
case of the Rumaila field was significantly less than the oil
companies were asking for. Exxon Mobil declined to accept the maximum
payment, but BP and CNPC, which had originally asked for $4 a
barrel, agreed to do the work for $2 a barrel. They will also be
able to charge the ministry for the costs of the work they have to do
on the production facilities. Questions over approval Iraq's oil laws
are still vague and many foreign companies remain wary of investing
in Iraq's energy sector, says the BBC's Gabriel Gatehouse in Baghdad.
The Iraqi government has urged the companies involved in June's
auction to resubmit their bids. But questions remain over who exactly
has the authority to approve such contracts, our correspondent says.
Many companies fear politics could get in the way of business,
especially with parliamentary elections looming in January. BP was
thrown out of Iraq in 1972 when Saddam Hussein nationalized the oil
industry. The British company will hold a 38 % stake in the venture,
compared to CNPC's 37 % share, while Iraq's State Oil Marketing
Organization will control the remaining 25 %, the Associated Press
reported. The fields up for auction in June contained about 43 bn
barrels of Iraq's proven oil reserves of 115 bn barrels.

Japan Airlines seeks tie-up with low-cost carriers

Struggling Japan Airlines is seeking a tie-up with low-cost carriers
for its Asian operations, a report said Saturday.    JAL, looking for
another public bailout to keep flying, is putting together an
emergency turnaround plan under the supervision of a government task
force.    In its cost-cutting efforts, JAL will expand code-sharing
operations with budget carriers in Asia, replacing its less
profitable flights for tourist destinations, such as Hawaii, Thailand
and Indonesia, the Asahi daily reported.    The move would enable JAL
to focus on more profitable business flights to North America,
Europe and China, the daily said without citing sources.    Asia's
largest carrier, which lost more than one billion dollars in the
April-June quarter, announced last month plans for 6,800 job cuts, a
drastic reduction in routes and a tie-up with a foreign carrier.
But the new centre-left government said the measures were
insufficient and was refraining from granting another injection of
public funds.    Under a new turnaround plan to be unveiled later
this month, JAL is seen to seek 9,000 job cuts and a debt waiver from
creditors of 250 billion yen ($2.8b) , as well as the departure of
president Haruka Nishimatsu.    But Japan's Nikkei business daily
reported Saturday that the finance ministry and the Development Bank
of Japan, JAL's main creditor, contend the latest turnaround plan
will be too difficult to implement.

Wall Street ponders if rally can run more

  After a historic week for Wall Street that lifted the main
blue-chip index above 10,000, investors are mulling whether the
stock market rally is now over or just getting started.    The rise
of the Dow Jones Industrial Average above 10,000 sparked a spate of
celebrations, but also provoked some scepticism about whether the
market has gotten ahead of the economy and corporate earnings.
The market had already begun a pullback with a sell-off Friday, and
the direction may be determined by the raft of corporate earnings in
the coming week and economic reports, notably in housing.    In the
week to Friday, the blue-chip Dow climbed 1.33 per cent to end at 9,
995.91 as it failed to hold above the key level of 10,000.    The
Standard & Poor's 500 broad- market index advanced 1.51 per cent to
1,087.68 and the tech-heavy Nasdaq composite added 0.82 per cent on
the week to 2,156.80.    Gains over the past week were inspired by
better-than-expected earnings from key firms including JPMorgan
Chase, Goldman Sachs and Google, among others.    But the mood was
dampened by disappointing results later in the week from Bank of
America and General Electric.    Fred Dickson, chief market
strategist at DA Davidson & Co, said the 10,000 level on the Dow is
'a signpost on the investment highway marking a significant distance
recently covered, but not offering any clues about the market's
speed limit or upcoming opportunities or obstacles.'    'A milestone
such as 10,000 may trigger some pre-programmed selling, but on the
other hand it should provide a renewed sense of confidence that the
six month market rally is real and that investors should see
continuing incremental improvement in the prospects of the US
economy,' he added.    Some say the recovery of the Dow to the levels
of just after the collapse of Lehman Brothers last year — but still
well below 2007 records — is a sign that the economy is returning to
normal.    'The speed of recovery in both global asset prices and the
global economy has far surpassed even the most optimistic forecasts
prevailing in the spring of this year,' said Andrew Spence at TD
Securities.    'Looking out over the next six months, the issue is
whether private sector demand can pick up the slack as policy
stimulus peaks — and here there is a significant risk that current and
high growth expectations will be disappointed,' he added.    Bill
George, a professor of management practice at Harvard Business
School, said the 10,000 level is nothing to get excited about.
'This purported milestone isn't a victory. It's nonsense,' he said.
 'We are far from out of the woods. Large companies are still laying
off employees. When we cross the 10 per cent unemployment line,
consumer spending may contract even further.'    But Julian Callow at
Barclays Capital said economic and corporate reports have been
getting better, suggesting better momentum in the US and other major
economies.    'Part of the reason to pay close attention to earnings
is that profitability tends to lead investment,' he said.

Apparel sales growth in USA declines

Bangladesh's apparel shipment growth to the USA declined drastically
in the past few months, worrying local exporters amid a renewed
competition from China whose sales in American market saw robust
growth.    Industry sources told New Age that year-on-year growth of
shipments of jeans, the top-selling category, to Bangladesh's single
largest export destination dropped to 7.5 per cent compared with 26
per cent growth seen in 2008.    The decline came in stark contrast to
the huge jump in China's shipment, 96 per cent in that category, in
January- September period of 2009.    'The trend is really alarming as
jeans and cotton trousers bring 4 in every 10 dollars of
Bangladesh's apparel export turnover from the USA,' said Abdus Salam
Murshedy, president of Bangladesh Garment Manufacturers and
Exporters Association.    In 2008, trousers export amounted to $1.3
billion out of Bangladesh's $3.4 billion worth apparel shipments to
the USA that alone buys 26 per cent of Bangladesh's entire apparel
exports.    Murshedy cited that in January- September period of 2009,
shipments of woven shirts, second largest product in Bangladesh's
apparel basket for US market, declined by more than 2 per cent, in
terms of volumes.    Among other high turnover exports, shipments of
cotton-based underwear declined more than 11 per cent and brassieres
about 5 per cent.    In the first nine months of 2009, Chinese
shipments to the USA grew 96 per cent in trousers, 14 in woven
shirts, 58 in underwear and 80 per cent in T- shirts.    Giving a
comparative picture, Murshedy said Bangladesh exported about 21
million dozens of trousers in January-September 2009 against 19.5
million dozens in the same period of 2008. Shipments from China
totaled 34. 3 million dozens against 17.5 million dozens during the
period.    Shipments of Bangladeshi underwear declined to 14.4
million dozens from 16.3 million dozens in the period, while China
shipped 25.2 million dozens up from 15.8 million dozens.    The BGMEA
president said Bangladesh's apparel sales in the USA totalled $3.44
billion in 2008 with 11 per cent year-on-year growth. But in eight
months to August this year, the turnover totalled $2.35 billion with
4 per cent negative growth over the same period in 2008.    The USA
has been a lucrative market for Bangladeshi woven apparels but in
the previous couple of years, shipment of knitted wear saw robust
growth. In 2008, shipments of knitted T-shirts rose 31 per cent over
the past year.    But the US data showed the growth was only 5.5 per
cent in the first nine months of the current year.    Bangladesh
Knitwear Manufacturers and Exporters Association president Fazlul
Hoque said decline in T-shirt shipments to the USA upset the
industry most.    'Falling shipments of many categories of garments to
the USA and Europe indicate how much the industry has been bleeding
for months,' he said.    A senior executive at a US-based buying
house in Dhaka told New Age that return of stronger Chinese
exporters to the global market was an emerging reality and additional
efforts of Chinese government and industry helped it happen.
'Chinese exporters have reenergized their competitiveness on the back
of the government supports, improved productivity and vigorous
marketing drives,' he said.    He pointed out that global recession
had restructured the market of imported apparels and forced US
retailers to change procurement approaches.    'US importers now
prefer deliveries in the shortest possible time, contractual
showcasing of apparels by the exporters to the shelves of retailers,'
the buyer's representative said.    International trade expert
Mustafizur Rahman said declines in Bangladesh's shipments were
reflection of depressed US market.    A drop in fresh orders from US
importers, as reported by local exporters in the second quarter of
current year, has led to drastic declines in shipments in the third
quarter, he pointed out.    Mustafiz, executive director of Centre
for Policy Dialogue who is a member of the government's taskforce on
global recession, however, said he learnt from the industry insiders
that orders broke their losing streak in the past couple of months.
  'Shipments from Bangladesh to the USA will increase in the last
quarter of the current year,' he hoped.    Mustafiz suggested that
Bangladeshi exporters should improve their capacities regarding
productivity, marketing and designing.    'Suppliers' strength in
sourcing raw materials, developing designs and delivering goods
meeting the deadline strictly now matter most,' he said.    Exporters
also require reduction in their dependence on marketing agents or
buying houses, he said.

Housing fair clocks up Tk 300 cr in spot orders

A four-day real estate fair wrapped up in Chittagong on Friday by
recording Tk 300 crore in spot bookings. The figure is four times
higher than the previous year. Forty real estate firms and 60
construction materials companies from Dhaka and Chittagong took part
in the seventh BD-RED Abasan Mela 2009. Bangladesh Real Estate
Directory (BD-RED) had organised the fair at the Institution of
Engineers, Bangladesh (IEB) Chittagong centre. BD-RED Chief Executive
Md Yeasen Khan said the turnout was "quite satisfactory" as the fair
pulled in more than 30 ,000 visitors. The participants have received
Tk 300 crore in spot orders this year, higher than the previous
year's Tk 75 crore, said Khan. "We expect to get further bookings for
plots and flats of Tk 100 crore later as many failed to place
orders due to a time constraint." The participants expressed
satisfactions over spot sales but some buyers resented the
increasing prices of plots and flats. "We sold 50 plots and 15 flats,"
said Nazmul Hossain, Chittagong branch in-charge of Amin Mohammad
Lands Development Ltd. The company has 22 ,000 plots in 11 projects
in Dhaka and Sylhet, 60 flats in Chittagong and commercial spaces
for 300 businesses in Cox' s Bazar. Chittagong-based firm Apple Homes
Ltd received bookings for four flats in its two projects at
Halishahar and Muradpur. "Flats ranging from 1,050 square-ft to 2,350
square-ft were priced at Tk 3 ,500 to Tk 4 ,000 per sq-ft," said
Abul Kalam Azad, marketing and sales executive for Apple Homes.
Hirajheel Property Development (Pvt) Company Ltd joined the fair with
4 ,000 plots in its Basumati Abasik Prakalpa on 1 ,000 bighas in
Baridhara, Dhaka. Eastern Bank Limited offered Tk 3 lakh to Tk 75
lakh in home loans for intended customers with an interest of 13.5
percent.

Rahimafrooz plans to take solar pumps countrywide

Rahimafrooz Renewable Energy Limited demonstrated a solar-powered
irrigation pump to government officials yesterday as part of its plan
to embark on installing such devices countrywide. Rahimafrooz
launched a 10- horse-power water pump in Kaishar Char village in
Savar, which could pump out five-lakh-litre water a day using
sunlight. It can save one-litre diesel an hour. The renewable energy
company demonstrated the pump after Bangladesh Agriculture
Development Corporation (BADC) had sought to see such demonstrations
by the private firms to examine the financial viability to deploy
solar pumps for irrigation across the country. After the function,
Niaz Rahim, chairman of Rahimafrooz Renewable Energy, said the
initial cost of installing the solar pump was Tk 30 lakh and is
warranted to serve for 20 years without requiring any running or
maintenance cost. Even if the installation cost of a solar pump is
high, there is no maintenance cost as such, which makes it
cost-effective over the years it will operate. A 10-
horse-power-diesel engine consumes 1 , 350 litres of diesel a year
and requires over Tk 3 lakh in total costs to run for one year,
which does not include government subsidy on diesel. But running a
solar pump for one year costs only Tk 1.5 lakh. Talking to reporters
at the agrarian village, Nazmun Nahar, the company's marketing and
sales executive, said the pump would reduce 36 tonnes of greenhouse
gas emissions a year. Through carbon trading, a pump owner will be
able to earn $10 against reducing each tonne of gas emission, she
said. In a briefing on the project site, Rahim said the initial cost
of setting up a solar energy pump is high, which is not possible for
farmers to afford. But cooperatives and government financing can be a
solution, he emphasised. In Boro season, 1.33 million pump irrigate
paddy fields in the country, with 80 percent run by diesel that
consume 800 million litres of diesel a day, according to the company
statistics. The government provides Tk 5 ,400 million in cash
subsidy on diesel-run pumps a year, according to company statistics.
But solar pumps will be able to save a huge amount of public money,
company officials said. On the issue, Dr SM Nazmul Islam, chairman of
BADC, said the government would examine financial benefits of such
pumps, but added that the initial installation cost is high. About
the demonstration by Rahimafrooz, he said: "Responding to our call,
some other companies have also installed solar pumps to demonstrate
their efficiencies." The company pioneered solar pumps in the country
in 2004 and has since sold 10 pumps mainly to government and
nongovernmental organisations.

Govt to explore African, Central Asian markets

Bangladesh is going to explore business opportunities in 10 African
and three Central Asian countries soon in a bid to reduce its
dependence on Europe and the US markets. Prime Minister Sheikh Hasina
will hold bilateral talks with her counterparts in African nations
on the sidelines of the Commonwealth Heads of Government Meeting
scheduled for November 27-29 in the city of Port of Spain in
Trinidad and Tobago. "We are collecting data of Bangladesh's exports
to 10 African and three Central Asian countries in line with a
directive of the Prime Minister's Office," a senior Bangladesh Bank
official told The Daily Star. The African countries are Kenya, Mali,
Mauritius, Nigeria, South Africa, Sudan, Sierra Leone, Tanzania,
Uganda and Zambia, while Kazakhstan, Kyrgyzstan and Uzbekistan are
the three Central Asian countries. Of these countries, seven are the
members of the 53- nation Commonwealth forum. The Commonwealth meeting
is convened every two years to review global, political and economic
developments and conduct a strategic overview of the forum's works in
support of the member countries' interests. Earlier, the central bank
in a letter issued on October 4 asked all authorised dealer banks to
submit export data for five years between 2004 and 2008 for the
prime minister's convenience by October 15. According to government
officials, the prime minister will hold bilateral meetings with
these countries to boost Bangladesh's trade with them, especially
exports. The country exported goods worth $15.56 billion in fiscal
2008-09 , according to Export Promotion Bureau. Of the amount, $8.2
billion came from Europe and nearly $4 billion from the US. Most of
the remaining exports were destined to Asia, Australia and Canada.
African countries still remain almost untapped. However, the
country's knitwear manufacturers have initiated a move to explore
potential African markets for selling their products. A delegation of
the sector has recently visited some African countries. Bangladesh
exported woven and knit garments worth $46.51 million only to South
Africa in fiscal 2008-09 , the biggest economy in the continent.
Garment manufacturers have hailed the prime minister's move to explore
markets in Africa. They also termed it a timely initiative. "Africa
can be a potential market for Bangladesh. I hope the prime minister's
initiative will give us result soon," said Fazlul Hoque, president of
Bangladesh Knitwear Manufacturers and Exporters Association. "The
move will help expand our export markets in Africa," said Abdus salam
Murshedy, president of Bangladesh Garment Manufacturers and
Exporters Association. "We have to pay tax for exports in South
Africa. The prime minister's plan for bilateral talks with South
Africa may help us in this regard," Murshedy said. But Hoque demands
private sector's involvement in the PM's initiative for a fruitful
outcome.

Sea Resources firms up foothold

Sea Resources Group has shored up its foothold by signing deals with
two Danish companies to manufacture fishing gear and hydraulic
machinery. Officials of the leading deep-sea fishing entity said the
twin deals would cut import- dependency and help the local company
explore global markets. One of the joint venture deals was with
Cosmos Trawl, a Danish fishing gear maker. In line with the
agreement, a state-of-the art unit will be set up to make net and
trawl doors to meet rising demand by deep-sea fishing trawlers in
Bangladesh and beyond. To make hydraulic machinery in Bangladesh, Sea
Resources has signed another agreement with AS-SCAN Hvide Sandem,
also a Danish company. "We are trying to sharpen our competitive
edge," said Amanullah Chowdhury, joint managing director of Sea
Resources that boasts a 15- vessel fleet for deep-sea fishing. In the
sector, there are 140 trawlers officially permitted to go for
deep-sea fishing. Usually, deep-sea fishing trawlers catch shrimp,
pomfret, snapper and tongue sole in the Bay of Bengal -- home to 490
species of fish belonging to 133 families. Of them, 65 species have
commercial importance. Sea Resources earns about $12 million in
exports a year. Officials said most of the fishing gear used by
trawlers is generally imported. Similarly, hydraulic equipment is
also imported. "The agreements will also allow us to use the know-how
in making modern fishing gear such as customised net, trawl doors and
hydraulic fishing equipment," said Chowdhury. He also said the joint
venture would enable them to make modern fishing gear in Bangladesh
at lower cost, giving it a competitive edge to explore business
opportunities not only in Bangladesh but also in South and Southeast
Asian regions. "In future, we want to tap regional markets," he said.
Supported by the Danish Business-to- Business (B2 B) Programme under
Danida, a pilot phase of commercial production of net is underway to
establish a net loft on the bank of Karnaphuli river in Chittagong.
Chowdhury said the joint venture entity to be named SRL-Cosmos Ltd
would start production of customised net and multi- flexible trawls
by January. The agreement with AS-SCAN Hvide Sandem on manufacturing
machinery is also expected to facilitate local capacity in
manufacturing hydraulic equipment such as net drum, pump, motor and
steering gear. The production unit will be set up on the premises of
Sea Resources, one of the subsidiaries of Fishers Shipyard Ltd.
"Initially we hope to make hydraulic machinery for deep-sea fishing
vessels. In the long run, we will be able to provide hydraulic
equipment for the emerging shipbuilding industry," he said. Chowdhury
hoped that initial investments for establishing the net loft and
hydraulic machinery unit would stand somewhere between $25-30
million. "After completion of these two projects, we will be able to
improve our efficiency in deep- sea fishing and reduce our cost."

Industrial output takes a hit from gas crisis

A severe gas crisis continues to take a toll on Bangladesh's
industrial output, said industry insiders, pointing to more than 30
percent production loss. A Matin Chowdhury, managing director of
Rahim Spinning Mills Limited, said he has been forced to go at least
30 percent below his output capacity by the inadequate supply of
gas. "Export orders of readymade garment (RMG) from international
buyers are aplenty, but we cannot take all the orders, as we know we
will not be able to supply the items in time because of the scarcity
in gas supply to industrial units," said Chowdhury, also former
president of Bangladesh Textile Mills Association (BTMA). But, a
proper supply of this energy can help Bangladesh achieve $18 billion
export mark in a year, he pointed out. Textile and RMG products
account for more than 80 percent of the annual national exports.
"Maintenance of adequate gas pressure and providing other utility
services to the industrial plants should be government's first
priority," the Rahim Spinning MD said. Chowdhury said businessmen,
especially the spinners, are now in lobbying for an improved
situation, but the government is also waiting for gas exploration.
When his attention was drawn to the gas supply, the BTMA's incumbent
president, Abdul Hai Sarker, admitted to the fact that gas supply
has improved slightly in some areas, as Titas Gas is not giving new
connection to any industrial plant now. "Sill, we suffer inadequate
gas pressure, a pre-requisite to spinners' production in full
capacity," Sarker said. Abdul Aziz Khan, managing director of state-
owned Titas Gas Transmission and Distribution Company, said industry
owners have to wait for further improvement in gas production. "We
prefer ensuring adequate gas pressure for the existing industrial
plants to providing connection to any new plant," Khan said.
Presently, there are 5000 industrial connections under Titas Gas,
while such 1000 connections under other gas distribution companies.
On any improvement in the gas sector, the Titas boss said, "We're not
in a position to ascertain anything in this regard, as Titas is
merely a distributing company."

Gold strikes record high

Gold prices rocketed to a record high beyond 1 ,070 dollars per
ounce last week, while oil bounced to a one-year peak, as the US
currency crumbled in value against the European single currency. A
fading US unit makes dollar-priced raw materials, like gold and oil,
cheaper for investors holding stronger currencies. "So far, dollar
weakness has helped lift a number of different assets: crude oil,
precious metals, copper and equities," said GFT Global Markets
analyst David Morrison. Nevertheless, commodity markets were boosted
this week by mounting hopes of a recovery in the world economy.
PRECIOUS METALS: The price of gold hit a record 1 , 070.80 dollars
per ounce on Wednesday, as the precious metal was boosted by the
weak dollar, before pulling lower on profit-taking. The latest
pinnacle was forged as the euro surged above 1.49 dollars for the
first time since August 2008. It subsequently rallied to a 14-
month high of 1.4968 on Thursday. In recent days and weeks, gold has
enjoyed a record-breaking run as the tumbling dollar has stimulated
demand. The glamorous yellow metal is used in jewellery, dentistry
and electronics. Gold, viewed as a safe-haven investment, has won
back favour in recent months as the global economy struggles out of
its worst slump in decades. In the wake of gold's stellar run, sister
metal silver hit a 14- month peak of 18.08 dollars an ounce.
Palladium reached the highest points since August 2008 , while
platinum scaled a level last seen in September last year. By late
Friday on the London Bullion Market, gold eased to 1 , 047.50
dollars an ounce from 1 , 051.50 dollars a week earlier. Silver
slipped to 17.31 dollars an ounce from 17.63 dollars. On the London
Platinum and Palladium Market, platinum climbed to 1 ,346 dollars an
ounce at the late fixing on Friday from 1 ,337 dollars. Palladium
firmed to 326 dollars an ounce from 323 dollars. OIL: The price of
oil struck a one year-high above 78 dollars thanks to the weak US
dollar and signs of a pick-up in energy demand, traders said. New
York's main contract, light sweet crude for November delivery, hit
78.17 dollars a barrel on Friday -- the highest level since October
14 , 2008. BASE METALS: Base metals prices steadied after winning a
boost earlier this week from the plunging dollar. So far this year,
prices have soared on solid demand from emerging economies despite
the global economic downturn. The worldwide financial crisis that
erupted in late 2007 and dragged most major economies into
recession sent prices of industrial, or base, metals tumbling in
2008. However, demand has returned, notably from China and India,
helping to boost prices, according to movers and shakers attending
the London Metal Exchange (LME) Week, an annual industry event that
ended on Friday. LME metals prices have soared in 2009 , with copper,
lead and zinc doubling since the start of January. The plight of the
battered world economy is closely intertwined with base metals
because the likes of aluminium, copper, lead and zinc are key
resources for modern industry. SUGAR: Sugar futures rose but held
below the 28- year high of 640.50 pounds per tonne that was struck
earlier this month on concerns over tight supplies. By Friday on
LIFFE, the price of a tonne of white sugar for delivery in March rose
to 605. 90 pounds from 573 pounds a week earlier. On NYBOT, the
price of unrefined sugar for March advanced to 23.11 US cents a
pound from 22.62 cents. GRAINS AND SOYA: Prices climbed as recent
freezing weather in key producer the United States threatened to
reduce harvests and cut supplies. The market also increased on the
back of the struggling US dollar. "Freezing temperatures covered
portions of the US midwest this past weekend," said Morgan Stanley
analyst Hussein Allidina. "In multiple states, temperatures dropped
below the 28 degrees Fahrenheit (-2.2 Celsius) -- a temperature at
which some yield loss is certain, particularly given the much delayed
crop. Wheat for December gained to 5.05 dollars a bushel from 4.68
dollars. COFFEE: Coffee futures gained ground. By Friday on LIFFE,
Robusta for delivery in January rose to 1 ,501 dollars a tonne from
1 , 484 dollars a week earlier.

Doha talks on agenda of WTO meet: Envoy

The Doha Round of trade liberalisation negotiations will be discussed
when ministers meet later this year at the World Trade Organisation,
Chilean envoy Mario Matus said Friday. "The review of WTO activities
including the Doha programme is one of the two points on the agenda
of the regular ministerial meeting of our organisation that will be
held in Geneva between November 30 and December 2 ," said Matus, who
is Chile's ambassador to the WTO. The regular ministerial meeting of
the WTO's 153- member states will also deal with the trade body's
contributions to "the recovery of the (world economy), growth, and
economic development." However, Matus added that the meeting "will
not take decisions" on the two issues. "There will simply be a resume
that should be adopted at the end of the two and a half days of
discussions," he said. "There will be reports linked to the themes
such as cotton, small economies, violations of WTO rules, electronic
commerce," said Matus. WTO Director General Pascal Lamy had said on
several occasions that the ministerial meeting would not be a
negotiating session on the Doha Round. The WTO is bound to call a full
ministerial meeting at least every two years. But this timetable has
slipped given the tortuous progress of the Doha talks on extending
free trade rules, which began in 2001 but which have been plagued by
disagreements between developed and developing countries.

Office Expo kicks off Oct 21

A three-day "Office Expo" will begin at Bangabandhu International
Conference Centre from October 21 , said a press release. The fair
styled Double-A First Bangladesh International Office Expo 2009 will
showcase products needed for an office. A total of 60 companies,
including furniture makers, software companies, automobile makers
and marketing firms from home and abroad, will take part in the fair
to be organised by Even Touch Bangladesh, an event management
company. Mizanur Rahman, chief executive officer of Even Touch,
announced the schedule of the show at a press conference in Dhaka
yesterday. Radio Today and the daily Ittefaq will be the media
partners of the fair.

US industry production jumps in Sept

US industrial production jumped in September for a third straight
month, the Federal Reserve reported Thursday in a further sign of a
reviving manufacturing sector. Output at the nation's factories, mines
and utilities rose 0.7 percent after an upwardly revised gain of
1.2 percent in August, the US central bank said in a report. It
marked the first period of sustained increase since 2007 , when the
United States plunged into recession.

Lobbyists influence financial reform

Get over it, America. Wall Street bankers make too much money. The
latest example: Goldman Sachs says it has set aside $16.7 billion so
far this year for compensation or about $530 ,000 per employee. Not
bad for a company that a year ago received $10 billion in federal
money as well as $12.9 billion from the government's bailout of
American International Group Inc. Maddening? Sure. But forcing Goldman
or any other Wall Street firm to pay employees less won't help a
single unemployed American find a job. It won't help a single
homeowner who can't afford his mortgage. It won't help a single
credit card user whose fees keep getting jacked up. If you want
something to really make you angry, though, consider this number:
$224 million. It's a lot less than $16.7 billion but it could pack
far more punch. That's the amount the financial industry spent in the
first half of this year to lobby Congress to water down regulations
aimed at preventing another financial meltdown. And more money is
expected to be on the way. "There is so much happening in the
financial sector to be upset about. The bonuses are the least of
it," said Barry Ritholtz, who writes the popular financial blog "The
Big Picture" and is the author of the new book "Bailout Nation." "
More importantly, we can't let the banks own Congress." The worry is
that the money used for lobbying could lead lawmakers to back down on
their promises for reform. The Obama administration and many members
of Congress have told the public repeatedly over the last year that a
regulatory overhaul was needed to protect us from another financial
disaster, and their constituents back home are counting on them.
Trillions of dollars in taxpayer funds have been pumped into the
financial system to stabilize markets and prevent big institutions
from failing. But the lobbyists' influence can already be seen. Some
potential powers have been stripped from the proposed Consumer
Financial Protection Agency, which would be a federal watchdog to
oversee areas such as mortgages and credit cards. One requirement
that was dropped would have forced banks to make standardized and
straightforward "plain vanilla" mortgages available to customers
along with other products. For instance, lenders would have had to
offer borrowers mortgages with 30- year fixed rates if they also were
going to sell adjustable-rate or interest-only loans. Lenders also
would have had to take additional measures to ensure that their
communications with customers are not deceptive. The House Financial
Services Committee is overseeing the creation of the consumer agency.
It also has made certain exemptions in a bill focused on tougher
oversight of derivatives. Derivatives are contracts between two or
more parties, the value of which is determined by fluctuations in
underlying assets like stocks, bonds, commodities and interest rates.
Companies use derivatives to hedge against risk, such as when airlines
cover themselves against surging fuel prices. But they are also a
means for financial speculation. A form of derivative known as a
credit-default swap was partly blamed for the crisis that hit Wall
Street last year. The House bill would impose restrictions on
derivatives, forcing companies for the first time to conduct what had
been private transactions on regulated exchanges. That's a positive.
But the bill also grants regulatory exemptions to companies that use
derivatives for commercial use, which weakens the transparency of
those transactions. Big industrial associations, including the
Business Roundtable and U.S. Chamber of Commerce, had lobbied for
those kinds of exemptions. The House Financial Services Committee is
one target of financial industry lobbyists, which have given more
than $6 million to its members in 2009. In fact, 27 of that House
committee's 71 members have received more than one-quarter of their
total political contributions from the financial industry, according
to a study by the Sunlight Foundation, a nonpartisan group that
promotes government openness. "It's wrong to draw any cause and effect
from that," said committee spokesman Steven Adamske, who pointed to
other actions taken by the committee this year in areas like
credit-card reform and predatory lending. But there is certainly lots
more lobbying money being put to work in Congress. The pace that the
financial, insurance and real estate industries spent on lobbying
during the first half of the year puts them on pace to meet last
year's record spending of nearly $460 million, according to the
Center for Responsive Politics, a political watchdog group. Employees
and political action committees in those same industries have
contributed more than $53 million this year to members of Congress
and the political parties. Lobbyists for financial industry have
defended their actions, saying it is within their constitutional
right to petition government leaders. That's certainly true. It's
also crucial for lawmakers not to falter when it comes to reforming a
financial system that broke last fall.

Asian stocks end upbeat week

Asian markets drifted lower Friday as investors took profits after a
week of gains driven by upbeat earnings news in the United States.
Hong Kong dropped 0.31 percent to end a three- day run as investors
took profits. Analysts said investors would be closely following US
earnings next week for further guidance as to the economic picture.
Sydney shed 0.48 percent while Seoul lost 1.12 percent. Shanghai
slipped 0.11 percent on concerns that the launch later this month of
a Nasdaq-style exchange will divert cash from the main board. TOKYO:
Up 0.18 percent. The Nikkei-225 index climbed 18.91 points to 10 ,
257.56. HONG KONG: Down 0.31 percent. The Hang Seng Index finished
down 69.18 points at 21 ,929.9. SYDNEY: Down 0.48 percent. The
S&P/ASX 200 closed down 23.5 points at 4 ,836.4 SHANGHAI: Down 0.11
percent. The Shanghai Composite Index, which covers both A and B
shares, was down 3.16 points to 2 , 976.63. SEOUL: Down 1.12
percent. The KOSPI lost 18.63 points to close at 1 , 640.36. TAIPEI:
Flat. The weighted index rose 4.70 points or 0.06 percent to 7 ,
715.10 SINGAPORE: Down 0.15 percent. The Straits Times Index fell
4.03 points to 2 , 708.12. BANGKOK: Up 3.52 percent. The Stock
Exchange of Thailand (SET) composite index rose 24.40 points to
close at 717.12. KUALA LUMPUR: Up 0.8 percent. The Kuala Lumpur
Composite Index gained 9.91 points to 1 , 256.77. JAKARTA: Flat. The
Jakarta Composite Index gained 0.42 points to 2 , 515.80 in thin
volume. MANILA: Down 0.68 percent. The composite index shed 19.97
points to 2 , 922.82. WELLINGTON: Up 0.50 percent. The NZX-50 index
closed 15.91 points higher at 3 , 207.20 MUMBAI: Up 0.74 percent.
The 30- share Sensex index rose 127.62 points to 17 , 322.82 to a
17- month high. Stock markets will be open for ceremonial one- hour
trading on Saturday to mark Divali, the festival of lights.

Mexico stands by power company closure

Mexico's conservative government stood by its decision to close a
state-run power company Friday, even after at least 150 ,000 people
marched in protest the previous day. Some 44 ,000 active workers and
22 ,000 retirees were affected by Sunday's surprise closure by
presidential decree of Luz y Fuerza, which served more than one fifth
of the country. Leaders of the company's powerful union, the Mexican
Union of Electricity Workers, met with government officials Friday in
a bid to reverse the shutdown. But the government said the meeting
would only discuss compensation for the workers. "There's no step
backwards," Labor Minister Javier Lozano told Televisa television,
adding that the decree "is not negotiable." Police took over the
company headquarters shortly before the decree was issued. The
government said it had to close the company because it had been
losing around 30 percent of electrical supply due to defects in the
system, at a cost of around 25 billion pesos (1.9 billion dollars)
per year.

Germany to rebound from slump in 2010

Germany is poised to rebound next year from its worst slump in over 60
years, the government said on Friday, sharply revising higher its
forecast for output in Europe's economic powerhouse. The economy
should grow 1.2 percent in 2010 , Economy Minister Karl-Theodor zu
Guttenberg told reporters -- a considerably more positive projection
than the 0.5 percent given six months ago. Unveiling twice-yearly
forecasts, zu Guttenberg also said Berlin was less pessimistic for
this year, with the economy set to slump by five percent, compared to
the dire projection of minus six percent given in April. "Germany has
the strength for a clear upswing," he said. The minister said an
anticipated revival in exports in 2010 would help put the country --
one of the world's top exporters -- back on its feet. The economy
reached its lowest point during the summer and is now climbing out of
the trough, he said, adding that the recent strength of the euro
against the dollar was "not a reason for concern" as far as exports
were concerned.

Bank of America posts $1 b loss

Despite early signs of a fledgling recovery in the US financial
sector, Bank of America Friday highlighted ongoing economic struggles
posting a net quarterly loss of 1.0 billion dollars. Amid hefty
write-downs and growing consumer loan problems, the total loss for
shareholders in the third quarter was even larger, at 2.24 billion
dollars, or 26 cents per share, five cents worse than expected by
most analysts. The news came just after three other major US banks
reported healthy third quarter results, suggesting the US financial
sector may be slowly recovering from its worst crisis in decades even
as the US economy has yet to emerge from recession. Citigroup, which
was drowning in losses in 2008 stemming from the collapse of the US
housing bubble and the worldwide financial squeeze, topped
expectations, posting a profit of 101 million dollars on Thursday.
While Goldman Sachs announced a profit of 3.19 billion dollars in the
third quarter, more than triple the amount from a year earlier. These
results came on the heels of JPMorgan Chase, which said on Wednesday
its quarterly profit had jumped to 3.6 billion dollars.

India's richest man wins govt praise for pay cut

India's government has praised a decision by India's richest
businessman Mukesh Ambani to take a 66 percent pay cut after it
called for firms to avoid "vulgar" executive salaries, a report said
Saturday. The government said the decision by the Reliance Industries
Ltd (RIL) chief and the world' s seventh richest man to accept a lower
remuneration package displayed "remarkable sensibility to the
prevailing thought process" in India. "What Mukesh Ambani has done is
laudable," Corporate Affairs Minister Salman Khurshid told reporters
Friday, according to the Press Trust of India. The two-thirds pay cut
means Ambani will now receive 150 million rupees a year (3.2
million dollars) in wages along with a share of the profits of
Reliance Industries Ltd, or RIL, the country's biggest private sector
company. Before the announcement, Ambani would have taken home 440
million rupees. RIL, which has interests from petrochemicals to
retail, said the pay cut reflected Ambani's " desire to set a personal
example of moderation in executive compensation."

Russia's Avtovaz workers protest mass layoffs

Several hundred people on Saturday took to the streets in Tolyatti,
home to Russia's largest carmaker Avtovaz, to protest against mass
layoffs at the ailing maker of the trademark Lada car. Saturday's
demonstration is the latest in a series of protests to shake the
company town of 700 ,000 people on the Volga River in central Russia
and comes as the carmaker is gearing up to lay off thousands of
workers. Protesters, including Avtovaz employees and their
supporters, carried placards with slogans such as "No to Avtovaz
bankruptcy" and "Those who will shut down Avtovaz will not be loved
by us."