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US airlines have reported mixed fortunes between July and September
as they battle to cope with the sluggish economy at home and abroad.
Delta - the world's biggest airline operator - reported a quarterly
loss bigger than a year ago and said it would cut capacity by 3 % next
year. US Airways also lost money, but less than expected, and saw
signs of a "soft but improving economic environment". Meanwhile
low-cost airline JetBlue bucked the trend and made a profit. It cited
lower fuel costs and cheaper fares luring passengers as reasons for
its $15 m (£9.1 m) profit in the period. Oil worries Delta - which
became the world's biggest carrier when it bought Northwest Airlines
in October 2008 - lost $161 m in the third quarter, compared with
$50 m a year earlier, despite sales rising by 32 % to $7.6 bn. US
Airways lost $80 m, compared with the $866 m it haemorrhaged between
July and September in 2008. Earlier in the week, American Airline's
parent company AMR reported heavy losses for the period - losing
$359 m including one-off costs, against a profit of $31 m a year
earlier. However, Continental and the parent company of AirTran
Airways both reported modest profits - citing sharply-lower fuel
bills. Gains in the oil price - currently at about $82 a barrel -
have prompted worries about the prospect of higher jet fuel costs in
the current quarter. United Airlines and Southwest Airlines are also
among those to have reported losses in recent days - saying they
could not charge so much for fares and that they were operating fewer
flights.
Spain jobless rate stays at 17.9 %
Spain's unemployment rate has remained at 17. 9 % in the third
quarter, the highest in the European Union. The number of jobless now
stands at 4.1 million, the country's statistics agency said. The
Spanish unemployment rate had risen for the previous eight quarters
after its construction and debt-fuelled economic boom ended
suddenly. Separately, a survey showed German business confidence rose
for a seventh consecutive month in October. The Ifo institute said its
monthly business climate index rose to 91.9 points in October from
91.3 in the previous month. That is the highest reading since
September 2008. Last week, the German government and leading economic
institutes revised their forecasts for this year and next upwards.
The new forecasts predict that Germany's economy will shrink by 5 %
this year, before rebounding to grow by 1.2 % next year.
quarter, the highest in the European Union. The number of jobless now
stands at 4.1 million, the country's statistics agency said. The
Spanish unemployment rate had risen for the previous eight quarters
after its construction and debt-fuelled economic boom ended
suddenly. Separately, a survey showed German business confidence rose
for a seventh consecutive month in October. The Ifo institute said its
monthly business climate index rose to 91.9 points in October from
91.3 in the previous month. That is the highest reading since
September 2008. Last week, the German government and leading economic
institutes revised their forecasts for this year and next upwards.
The new forecasts predict that Germany's economy will shrink by 5 %
this year, before rebounding to grow by 1.2 % next year.
China ready to launch Nasdaq-style index
China will launch trading on its long-awaited Nasdaq-style board on
Friday in the hope of harnessing the vast amount of liquidity
circulating in the economy for cash-strapped businesses, experts say.
ChiNext, based in the southern boomtown of Shenzhen, is expected to
give small and medium-sized companies (SMEs) access to financing and
encourage private equity firms and venture capitalists to back
start-ups, they said. "The launch of the growth enterprise board is
an important step towards implementing the national strategy on
promoting innovation," Shang Fulin, chairman of the China Securities
Regulatory Commission, said last week. The first 28 companies to list
on the board, ranging from software to medical equipment makers,
have raised 16 billion yuan (2.3 billion dollars) in their initial
public offerings -- more than double initial forecasts. "The launch
of ChiNext represents a milestone in the development of China's
financial markets and is an important part of the government's plans
to boost support for small and medium- sized firms," said Jing Ulrich,
managing director and chairman of China equities and commodities at
JP Morgan in Hong Kong. "The board will provide an additional source
of financing for younger companies while broadening the options
available to investors." Beijing has made listing rules for the second
board less stringent than for the main A and B share markets, paving
the way for SMEs to access much-needed cash. SMEs, the biggest
employers in China, struggle to obtain loans from commercial banks,
which prefer to lend money to large state-owned enterprises. ChiNext
was expected to initially weigh on A and B shares as investors
diverted funds to the new index, but analysts predicted the
phenomenon would be short-lived. "There will be a psychological impact
but it won' t be substantial," Ren Xianfang, a Beijing-based
economist at IHS Global Insight, told AFP. "Liquidity in China is
ample. We have so much liquidity looking for new investment
opportunities." The Chinese economy is awash with money after Beijing
unveiled a four-trillion-yuan stimulus package and loosened its grip
on bank lending to help ward off the effects of the global downturn.
Jackson Wong, vice president at Tanrich Securities, said the new
board would encourage private equity and venture capital firms to
fund start-ups as they "will have more ways to cash out" investments
once the company has listed. But there are fears the new board will
attract speculative traders, especially on the first day, and the
bourse has introduced rules to curb their activity by setting a limit
on share price movements for Friday. If the prices of start-up stocks
move up or down 80 percent during the first trading day, the bourse
will suspend trading until the final three minutes before the session
ends, the Shenzhen Stock Exchange has said. Two other debut-day
circuit-breakers are in place -- trading will be suspended for 30
minutes if shares in a company move up or down 20 percent from the
opening price, and then another 30 minutes for a 50- percent shift.
ChiNext has said the restrictions will help curb risks, maintain
market stability and protect investors. "The size of share offering
in the growth enterprise market is often not large; therefore, if
investors blindly follow the trend, buying and selling stocks, prices
are very vulnerable to wide swings," the exchange said. Despite the
hype, the second board was expected to have a limited impact on the
Nasdaq, analysts said, with companies looking for exposure to global
investors still likely to seek a US listing. "The growth enterprise
market is just starting and is subject to manipulation so the risks
are much higher than on the Nasdaq," IHS Global Insight's Ren said.
"For high-quality companies wanting to establish a global presence, I
think they will still look at the Nasdaq because they will have more
access to global capital."
Friday in the hope of harnessing the vast amount of liquidity
circulating in the economy for cash-strapped businesses, experts say.
ChiNext, based in the southern boomtown of Shenzhen, is expected to
give small and medium-sized companies (SMEs) access to financing and
encourage private equity firms and venture capitalists to back
start-ups, they said. "The launch of the growth enterprise board is
an important step towards implementing the national strategy on
promoting innovation," Shang Fulin, chairman of the China Securities
Regulatory Commission, said last week. The first 28 companies to list
on the board, ranging from software to medical equipment makers,
have raised 16 billion yuan (2.3 billion dollars) in their initial
public offerings -- more than double initial forecasts. "The launch
of ChiNext represents a milestone in the development of China's
financial markets and is an important part of the government's plans
to boost support for small and medium- sized firms," said Jing Ulrich,
managing director and chairman of China equities and commodities at
JP Morgan in Hong Kong. "The board will provide an additional source
of financing for younger companies while broadening the options
available to investors." Beijing has made listing rules for the second
board less stringent than for the main A and B share markets, paving
the way for SMEs to access much-needed cash. SMEs, the biggest
employers in China, struggle to obtain loans from commercial banks,
which prefer to lend money to large state-owned enterprises. ChiNext
was expected to initially weigh on A and B shares as investors
diverted funds to the new index, but analysts predicted the
phenomenon would be short-lived. "There will be a psychological impact
but it won' t be substantial," Ren Xianfang, a Beijing-based
economist at IHS Global Insight, told AFP. "Liquidity in China is
ample. We have so much liquidity looking for new investment
opportunities." The Chinese economy is awash with money after Beijing
unveiled a four-trillion-yuan stimulus package and loosened its grip
on bank lending to help ward off the effects of the global downturn.
Jackson Wong, vice president at Tanrich Securities, said the new
board would encourage private equity and venture capital firms to
fund start-ups as they "will have more ways to cash out" investments
once the company has listed. But there are fears the new board will
attract speculative traders, especially on the first day, and the
bourse has introduced rules to curb their activity by setting a limit
on share price movements for Friday. If the prices of start-up stocks
move up or down 80 percent during the first trading day, the bourse
will suspend trading until the final three minutes before the session
ends, the Shenzhen Stock Exchange has said. Two other debut-day
circuit-breakers are in place -- trading will be suspended for 30
minutes if shares in a company move up or down 20 percent from the
opening price, and then another 30 minutes for a 50- percent shift.
ChiNext has said the restrictions will help curb risks, maintain
market stability and protect investors. "The size of share offering
in the growth enterprise market is often not large; therefore, if
investors blindly follow the trend, buying and selling stocks, prices
are very vulnerable to wide swings," the exchange said. Despite the
hype, the second board was expected to have a limited impact on the
Nasdaq, analysts said, with companies looking for exposure to global
investors still likely to seek a US listing. "The growth enterprise
market is just starting and is subject to manipulation so the risks
are much higher than on the Nasdaq," IHS Global Insight's Ren said.
"For high-quality companies wanting to establish a global presence, I
think they will still look at the Nasdaq because they will have more
access to global capital."
Asian stocks continue losses
Asian markets fell for a second successive day on Thursday as another
tumble on Wall Street combined with profit-taking and below-forecast
growth figures from China. Beijing said gross domestic product grew
8.9 percent in the September quarter, which was the strongest
expansion for a year but weaker than the 9.1 percent expected by
analysts. Tokyo shed 0.64 percent, Hong Kong 0.48 percent and Seoul
1.42 percent. Shanghai was 0.62 percent off and Sydney eased 0.53
percent The losses also came after some regional markets earlier this
week touched highs not seen for more than a year. However,
commodities stocks were partially protected by crude holding above 80
dollars a barrel. TOKYO: Down 0.64 percent. The Nikkei-225 dropped
66.22 points to 10 , 267.17. HONG KONG: Down 0.48 percent. The Hang
Seng Index fell 107.59 points to 22 , 210.52. Profit-taking in
property developers also pushed the market down. SYDNEY: Down 0.53
percent. The S&P/ASX 200 lost 25.8 points to 4 ,812.8. SHANGHAI:
Down 0.62 percent. The Shanghai Composite Index, which covers both A
and B shares, was down 19.18 points to 3 , 051.41. The key index
rose 11 percent between September 30 and Tuesday. SEOUL: Down 1.42
percent. The KOSPI ended down 23.53 points at 1 , 630.33. TAIPEI:
Down 1.21 percent. The weighted index dropped 93.57 points to 7 ,
607.93. SINGAPORE: Down 0.39 percent. The Straits Times Index fell
10.58 points to 2 , 681.97. BANGKOK: Down 1.06 percent. The Stock
Exchange of Thailand fell 7.59 points to close at 708.76. KUALA
LUMPUR: Flat. The Kuala Lumpur Composite Index lost 0.04 points to 1
, 260.02. JAKARTA: Down 1.76 percent. The Jakarta Composite Index
lost 43.61 points to 2 , 433.18. MANILA: Down 1.07 percent. The
composite index lost 31.18 points to 2 , 888.72. MUMBAI: Down 1.29
percent. The 30- share Sensex fell 219.43 points to 16 , 789.74.
tumble on Wall Street combined with profit-taking and below-forecast
growth figures from China. Beijing said gross domestic product grew
8.9 percent in the September quarter, which was the strongest
expansion for a year but weaker than the 9.1 percent expected by
analysts. Tokyo shed 0.64 percent, Hong Kong 0.48 percent and Seoul
1.42 percent. Shanghai was 0.62 percent off and Sydney eased 0.53
percent The losses also came after some regional markets earlier this
week touched highs not seen for more than a year. However,
commodities stocks were partially protected by crude holding above 80
dollars a barrel. TOKYO: Down 0.64 percent. The Nikkei-225 dropped
66.22 points to 10 , 267.17. HONG KONG: Down 0.48 percent. The Hang
Seng Index fell 107.59 points to 22 , 210.52. Profit-taking in
property developers also pushed the market down. SYDNEY: Down 0.53
percent. The S&P/ASX 200 lost 25.8 points to 4 ,812.8. SHANGHAI:
Down 0.62 percent. The Shanghai Composite Index, which covers both A
and B shares, was down 19.18 points to 3 , 051.41. The key index
rose 11 percent between September 30 and Tuesday. SEOUL: Down 1.42
percent. The KOSPI ended down 23.53 points at 1 , 630.33. TAIPEI:
Down 1.21 percent. The weighted index dropped 93.57 points to 7 ,
607.93. SINGAPORE: Down 0.39 percent. The Straits Times Index fell
10.58 points to 2 , 681.97. BANGKOK: Down 1.06 percent. The Stock
Exchange of Thailand fell 7.59 points to close at 708.76. KUALA
LUMPUR: Flat. The Kuala Lumpur Composite Index lost 0.04 points to 1
, 260.02. JAKARTA: Down 1.76 percent. The Jakarta Composite Index
lost 43.61 points to 2 , 433.18. MANILA: Down 1.07 percent. The
composite index lost 31.18 points to 2 , 888.72. MUMBAI: Down 1.29
percent. The 30- share Sensex fell 219.43 points to 16 , 789.74.
Food festival starts today in BANGLADESH
A three-day British fusion food festival -- Taste of Britain Curry
Fest -- is set to start at Dhaka Sheraton Hotel today, which will
present the culinary success of British Bangladeshis in the UK.
Dhaka Sheraton Hotel and Curry Life, a British magazine on UK's
fusion food industry, are co- organising the festival. GM Quader,
civil aviation and tourism minister, is scheduled to inaugurate the
festival. "The festival will focus on the success of Bangladeshi
chefs in winning the appreciation of British people and the gradual
inclusion of our dishes in British cuisine," said Syed Belal Ahmed,
director of the festival. "The festival aims to create a fusion
between food from the east and the west." Ahmed was addressing a
press conference on the sixth British Fusion Food Festival.
"Presently, there are around 12,000 Bangladeshi restaurants in the UK.
Visitors to the festival will know how successfully Bangladeshi chefs
run the food business in Britain," said Ahmed. " The festival will
help enhance ties between Bangladesh and Britain." He also said there
are half a million Bangladeshis working in the culinary industry in
UK, while there is a dearth of skilled and efficient chefs
specialised in the eastern cuisine.
Fest -- is set to start at Dhaka Sheraton Hotel today, which will
present the culinary success of British Bangladeshis in the UK.
Dhaka Sheraton Hotel and Curry Life, a British magazine on UK's
fusion food industry, are co- organising the festival. GM Quader,
civil aviation and tourism minister, is scheduled to inaugurate the
festival. "The festival will focus on the success of Bangladeshi
chefs in winning the appreciation of British people and the gradual
inclusion of our dishes in British cuisine," said Syed Belal Ahmed,
director of the festival. "The festival aims to create a fusion
between food from the east and the west." Ahmed was addressing a
press conference on the sixth British Fusion Food Festival.
"Presently, there are around 12,000 Bangladeshi restaurants in the UK.
Visitors to the festival will know how successfully Bangladeshi chefs
run the food business in Britain," said Ahmed. " The festival will
help enhance ties between Bangladesh and Britain." He also said there
are half a million Bangladeshis working in the culinary industry in
UK, while there is a dearth of skilled and efficient chefs
specialised in the eastern cuisine.
Mutual funds lead bull-run
The Dhaka market saw a bull-run yesterday, as a verdict date
announcement on a mutual fund case triggered the investment sector
price jump. The High Court on Thursday announced that it would give
the verdict on the mutual fund case on November 4. With the bull-run,
the benchmark index of the premier bourse reached a new height of 3
,356 points, surpassing the previous highest of 3 ,326. 08 points on
October 20. The DSE General Index yesterday rose by 38.57 points, or
1.16 percent. The investment sector or mutual funds and non- banking
financial institutions (NBFIs) pulled the market up, operators said.
"On mutual fund verdict announcement, operators will be able to
announce dividends, pending for the last two years due to a legal
bar," said a DSE broker. All of the mutual funds gained more than 5
percent. The HC in August last year stayed the dividend declarations
by all mutual fund managers until disposal of a writ petition filed
with the HC challenging the modifications of mutual fund rules by
the Securities and Exchange Commission. The HC also stayed the stock
market regulator's ban on the issuance of bonus shares or rights
issues for closed-end mutual funds. The broader index of the Dhaka
Stock Exchange, DSE All Share Price Index, also gained 29.7 points,
or 1.06 percent to 2 , 813.77. Advancers beat losers 120 to 112
with four securities remained unchanged. A total of 6 ,99 , 37 ,958
shares and mutual fund units worth Tk 1 , 184.77 crore were traded on
the prime bourse. Titas Gas topped the turnover leaders with 15 , 21
,000 shares worth Tk 110.45 crore being traded. Grameen Mutual
Fund One, which advanced 20 percent, was the largest gainer, while
Al-Haj Textile, which declined 13.74 percent, was the biggest
loser. Chittagong stocks also posted rise yesterday. The CSE
Selective Categories Index gained 56.01 points, or 0.77 percent to 7
, 249.84. The CSE All Share Price Index increased 83.09 points, or
0.72 percent to 11 , 558.03. A total of 1 ,09 ,98 ,421 shares worth
Tk 114.98 crore changed hands on the Chittagong Stock Exchange. Of
the traded securities, 93 advanced, 74 declined and two remained
unchanged. AIMS 1 st Mutual Fund was the biggest gainer, rising 19.94
percent, while Niloy Cement was the largest loser, declining 19.44
percent. Bextex topped the turnover leaders with 11 ,78 , 800 shares
worth Tk 10.56 crore being traded on the port city bourse.
announcement on a mutual fund case triggered the investment sector
price jump. The High Court on Thursday announced that it would give
the verdict on the mutual fund case on November 4. With the bull-run,
the benchmark index of the premier bourse reached a new height of 3
,356 points, surpassing the previous highest of 3 ,326. 08 points on
October 20. The DSE General Index yesterday rose by 38.57 points, or
1.16 percent. The investment sector or mutual funds and non- banking
financial institutions (NBFIs) pulled the market up, operators said.
"On mutual fund verdict announcement, operators will be able to
announce dividends, pending for the last two years due to a legal
bar," said a DSE broker. All of the mutual funds gained more than 5
percent. The HC in August last year stayed the dividend declarations
by all mutual fund managers until disposal of a writ petition filed
with the HC challenging the modifications of mutual fund rules by
the Securities and Exchange Commission. The HC also stayed the stock
market regulator's ban on the issuance of bonus shares or rights
issues for closed-end mutual funds. The broader index of the Dhaka
Stock Exchange, DSE All Share Price Index, also gained 29.7 points,
or 1.06 percent to 2 , 813.77. Advancers beat losers 120 to 112
with four securities remained unchanged. A total of 6 ,99 , 37 ,958
shares and mutual fund units worth Tk 1 , 184.77 crore were traded on
the prime bourse. Titas Gas topped the turnover leaders with 15 , 21
,000 shares worth Tk 110.45 crore being traded. Grameen Mutual
Fund One, which advanced 20 percent, was the largest gainer, while
Al-Haj Textile, which declined 13.74 percent, was the biggest
loser. Chittagong stocks also posted rise yesterday. The CSE
Selective Categories Index gained 56.01 points, or 0.77 percent to 7
, 249.84. The CSE All Share Price Index increased 83.09 points, or
0.72 percent to 11 , 558.03. A total of 1 ,09 ,98 ,421 shares worth
Tk 114.98 crore changed hands on the Chittagong Stock Exchange. Of
the traded securities, 93 advanced, 74 declined and two remained
unchanged. AIMS 1 st Mutual Fund was the biggest gainer, rising 19.94
percent, while Niloy Cement was the largest loser, declining 19.44
percent. Bextex topped the turnover leaders with 11 ,78 , 800 shares
worth Tk 10.56 crore being traded on the port city bourse.
German delegation seeks shipbuilding partnership
A visiting German business delegation yesterday expressed its interest
in forming a sustainable, long-term partnership in shipbuilding and
other sectors in Bangladesh. "German companies operate with long-term
perspective, including transfer of technology and know-how and
involvement of local partners in value creation," said Peter Clasen,
head of the visiting delegation of OAV-German Asia-Pacific Business
Association. "Their approach (German companies) is not short-term
profit but a sustainable long-term partnership," he said. The
statement came at a seminar on shipbuilding industry at the country's
biggest shipbuilder Ananda Shipyard and Slipways Ltd ( ASSL) at
Meghnaghat on the outskirts of the capital. Citing cooperation
between Komrowski Group, a Hamburg-based trading and shipping company,
and Ananda Shipyard, Clasen said: "We wish further cooperation
between Bangladesh and Germany in shipbuilding and related
industries." The German delegation arrived in Dhaka yesterday on a
weeklong trip to explore business opportunities in shipbuilding,
energy, engineering and textiles in Bangladesh. Shipping Minister
Shajahan Khan and German Ambassador in Bangladesh Holger Michael were
present at the programme chaired by ASSL Chairman Abdullahel Bari.
Khan said his ministry had attached utmost attention to the
development of shipbuilding. " Bangladesh has demonstrated its skills
in building ships of international standards," he said. In the past
several years, two local shipbuilders ASSL and Western Marine
Shipyard Ltd bagged orders for making more than 40 vessels of about
$600 million mainly from European buyers. ASSL has handed a couple of
ships to its buyers in Denmark and Mozambique. Discussants at the
seminar observed that Bangladesh has the capacity to tap the global
shipbuilding market as it can provide skilled and semiskilled workers
at low-cost compared to other shipbuilding nations. Operators said
about 200 shipyards and workshops, employing about 100 ,000 skilled
and semiskilled workers, are in operation to meet demand of the
riverine country, offering a cheaper man-hour than any other
shipbuilding country. The industry estimates that ships built in
Bangladesh would be about 15-20 percent cost competitive compared
with the countries such as India, China, Korea and Singapore. "I would
like to convey my message through the German delegation to Europe and
to the maritime world that Bangladesh would play a potential role in
the global export shipbuilding market in coming years," said the
minister. "The government will extend all support enabling the sector
to thrive with quality and compete with other ship exporting
countries," Khan said. He urged the developed nations to transfer
technology to Bangladesh, which will develop the sector.
in forming a sustainable, long-term partnership in shipbuilding and
other sectors in Bangladesh. "German companies operate with long-term
perspective, including transfer of technology and know-how and
involvement of local partners in value creation," said Peter Clasen,
head of the visiting delegation of OAV-German Asia-Pacific Business
Association. "Their approach (German companies) is not short-term
profit but a sustainable long-term partnership," he said. The
statement came at a seminar on shipbuilding industry at the country's
biggest shipbuilder Ananda Shipyard and Slipways Ltd ( ASSL) at
Meghnaghat on the outskirts of the capital. Citing cooperation
between Komrowski Group, a Hamburg-based trading and shipping company,
and Ananda Shipyard, Clasen said: "We wish further cooperation
between Bangladesh and Germany in shipbuilding and related
industries." The German delegation arrived in Dhaka yesterday on a
weeklong trip to explore business opportunities in shipbuilding,
energy, engineering and textiles in Bangladesh. Shipping Minister
Shajahan Khan and German Ambassador in Bangladesh Holger Michael were
present at the programme chaired by ASSL Chairman Abdullahel Bari.
Khan said his ministry had attached utmost attention to the
development of shipbuilding. " Bangladesh has demonstrated its skills
in building ships of international standards," he said. In the past
several years, two local shipbuilders ASSL and Western Marine
Shipyard Ltd bagged orders for making more than 40 vessels of about
$600 million mainly from European buyers. ASSL has handed a couple of
ships to its buyers in Denmark and Mozambique. Discussants at the
seminar observed that Bangladesh has the capacity to tap the global
shipbuilding market as it can provide skilled and semiskilled workers
at low-cost compared to other shipbuilding nations. Operators said
about 200 shipyards and workshops, employing about 100 ,000 skilled
and semiskilled workers, are in operation to meet demand of the
riverine country, offering a cheaper man-hour than any other
shipbuilding country. The industry estimates that ships built in
Bangladesh would be about 15-20 percent cost competitive compared
with the countries such as India, China, Korea and Singapore. "I would
like to convey my message through the German delegation to Europe and
to the maritime world that Bangladesh would play a potential role in
the global export shipbuilding market in coming years," said the
minister. "The government will extend all support enabling the sector
to thrive with quality and compete with other ship exporting
countries," Khan said. He urged the developed nations to transfer
technology to Bangladesh, which will develop the sector.
Bangladesh ranks low in South Asia mobile use
Bangladesh's mobile penetration rate stood at 28 percent in 2008
lagging behind war-ravaged Afghanistan's 29 percent in South Asia,
according to a regional report. "Of course, the fact that Afghanistan
is ahead of Bangladesh in mobile penetration should cause all sorts
of palpitations in government offices in Dhaka," said the report
tilted 'Telecom Access Rankings in South Asia'. LIRNEasia posted the
report Saturday on its website based on statistics of UN
International Telecommunication Union. LIRNEasia is an ICT policy and
regulation think tank active across Asia Pacific. Bangladesh was one
of the earliest in South Asia to adopt mobile and is one of the most
densely populated countries in the world. "How the country was
overtaken by Afghanistan, a war-torn country with difficult terrain,
should cause serious re-examination of policies such as the Tk 800
SIM (subscriber identity module) tax," the report said. Pakistan's
surge to overtake Sri Lanka has petered out, leaving the Maldives
(143 active SIMs/100 people) as the undisputed leader in mobile
connectivity and Sri Lanka second with 52 SIMs per 100 people. Both
Pakistan (50 /100) and Bhutan (37 /100) are ahead of India (29 /100)
in mobile. "This shows that India cannot afford to let up the pace
of 10 million connections a month for some time. If it does, it
might be overtaken by Afghanistan (29 / 100) and even Bangladesh (28
/100) ," the report said. On the fixed side, assisted by CDMA (code
division multiple access) phones that are counted as fixed, Sri Lanka
is the leader (17 connections per 100 people), followed by the
Maldives (15 per 100). In the fixed ranking, Afghanistan is occupying
the cellar (0.37 /100 people) behind Bangladesh ( 0.84 /100) , while
Pakistan (2.5 /100) is behind Nepal (2.8 /100). India is the only
country showing negative growth (-2 percent) in fixed side over the
2003- 2008 period. From 2003 to 2008 , the number of active SIMs
has increased by over 12 times, while the number of fixed
connections has decreased marginally. The negative growth in India is
wiping out all the gains in the rest of South Asia.
lagging behind war-ravaged Afghanistan's 29 percent in South Asia,
according to a regional report. "Of course, the fact that Afghanistan
is ahead of Bangladesh in mobile penetration should cause all sorts
of palpitations in government offices in Dhaka," said the report
tilted 'Telecom Access Rankings in South Asia'. LIRNEasia posted the
report Saturday on its website based on statistics of UN
International Telecommunication Union. LIRNEasia is an ICT policy and
regulation think tank active across Asia Pacific. Bangladesh was one
of the earliest in South Asia to adopt mobile and is one of the most
densely populated countries in the world. "How the country was
overtaken by Afghanistan, a war-torn country with difficult terrain,
should cause serious re-examination of policies such as the Tk 800
SIM (subscriber identity module) tax," the report said. Pakistan's
surge to overtake Sri Lanka has petered out, leaving the Maldives
(143 active SIMs/100 people) as the undisputed leader in mobile
connectivity and Sri Lanka second with 52 SIMs per 100 people. Both
Pakistan (50 /100) and Bhutan (37 /100) are ahead of India (29 /100)
in mobile. "This shows that India cannot afford to let up the pace
of 10 million connections a month for some time. If it does, it
might be overtaken by Afghanistan (29 / 100) and even Bangladesh (28
/100) ," the report said. On the fixed side, assisted by CDMA (code
division multiple access) phones that are counted as fixed, Sri Lanka
is the leader (17 connections per 100 people), followed by the
Maldives (15 per 100). In the fixed ranking, Afghanistan is occupying
the cellar (0.37 /100 people) behind Bangladesh ( 0.84 /100) , while
Pakistan (2.5 /100) is behind Nepal (2.8 /100). India is the only
country showing negative growth (-2 percent) in fixed side over the
2003- 2008 period. From 2003 to 2008 , the number of active SIMs
has increased by over 12 times, while the number of fixed
connections has decreased marginally. The negative growth in India is
wiping out all the gains in the rest of South Asia.
ETP issue irks apparel buyers
A delay in setting up effluent treatment plants ( ETPs) is annoying
international apparel buyers as they have been putting pressure on
manufacturers over the years to make products following
internationally recognised compliances, industry insiders said.
Although most of the apparel factories are already following other
compliance issues like avoiding child labour in line with the demand
of the buyers, very few have set up ETPs until now, said an
international buyer requesting anonymity. "The progress in setting up
ETPs at the factories is very slow. It needs pace as the customers
are becoming more environment conscious," the buyer said. Meanwhile,
the government has made it mandatory to set up ETPs in industrial
units such as textile and dyeing factories that involve wet
processing. A previous government decision has directed the industrial
units to set up ETPs within June 30 this year, but many factories
failed to do so within the stipulated time. Recently, Bangladesh
Textile Mills Association ( BTMA) in a letter informed the
parliamentary standing committee on environment and forest ministry
that a total of 205 out of 1 ,300 members of the BTMA need to set up
ETPs. The BTMA also informed the standing committee that 64 factories
have already set up ETPs, 24 are constructing the plants, three are
importing machinery, six are making infrastructure and five have
opened letters of credit for importing machinery. The association in
the letter recommended that the government set up four central ETPs
in four zones -- Dhaka, Narsingdi, Savar and Joydevpur -- that the
industrial units can use. The BTMA also suggested allowing duty-free
import of chemicals used in the ETPs to reduce the costs of
production, according to the letter. BTMA President Abdul Hai Sarker
claimed that 70 percent factories have already set up ETPs. He said
it takes a lot of money and time to set up ETPs and many small
factories have no capacity to build the ETPs on their own. They need
collective efforts, he added. "So we are demanding central ETPs and
loans at a lower interest rate," Sarker said. Meanwhile, the central
bank on August 3 ordered all commercial banks to provide loans up to
Tk 1 crore at a 9 percent interest rate for setting up ETP.
President of Bangladesh Paribesh Andolon (a movement to protect
environment) Muzaffer Ahmed said the international buyers have been
putting pressure on the manufacturers for years to set up ETPs for
protecting the environment. He said it requires some local and
international technologies for setting up ETPs at the factories and
many small units have no capacity to set up such plants. This is true
that some new factories are starting their production with new
technologies and ETPs, he said. The small factories, which are
unable to set up ETPs, can relocate their units near a central ETP,
he added. Speaking at the 7 th Global Editors' Forum titled 'The
Politics of Climate Change and Energy Security' in Denmark on October
11 , State Minister for Environment Hasan Mahmud had said the
government will shut down the factories that will not set up ETPs.
international apparel buyers as they have been putting pressure on
manufacturers over the years to make products following
internationally recognised compliances, industry insiders said.
Although most of the apparel factories are already following other
compliance issues like avoiding child labour in line with the demand
of the buyers, very few have set up ETPs until now, said an
international buyer requesting anonymity. "The progress in setting up
ETPs at the factories is very slow. It needs pace as the customers
are becoming more environment conscious," the buyer said. Meanwhile,
the government has made it mandatory to set up ETPs in industrial
units such as textile and dyeing factories that involve wet
processing. A previous government decision has directed the industrial
units to set up ETPs within June 30 this year, but many factories
failed to do so within the stipulated time. Recently, Bangladesh
Textile Mills Association ( BTMA) in a letter informed the
parliamentary standing committee on environment and forest ministry
that a total of 205 out of 1 ,300 members of the BTMA need to set up
ETPs. The BTMA also informed the standing committee that 64 factories
have already set up ETPs, 24 are constructing the plants, three are
importing machinery, six are making infrastructure and five have
opened letters of credit for importing machinery. The association in
the letter recommended that the government set up four central ETPs
in four zones -- Dhaka, Narsingdi, Savar and Joydevpur -- that the
industrial units can use. The BTMA also suggested allowing duty-free
import of chemicals used in the ETPs to reduce the costs of
production, according to the letter. BTMA President Abdul Hai Sarker
claimed that 70 percent factories have already set up ETPs. He said
it takes a lot of money and time to set up ETPs and many small
factories have no capacity to build the ETPs on their own. They need
collective efforts, he added. "So we are demanding central ETPs and
loans at a lower interest rate," Sarker said. Meanwhile, the central
bank on August 3 ordered all commercial banks to provide loans up to
Tk 1 crore at a 9 percent interest rate for setting up ETP.
President of Bangladesh Paribesh Andolon (a movement to protect
environment) Muzaffer Ahmed said the international buyers have been
putting pressure on the manufacturers for years to set up ETPs for
protecting the environment. He said it requires some local and
international technologies for setting up ETPs at the factories and
many small units have no capacity to set up such plants. This is true
that some new factories are starting their production with new
technologies and ETPs, he said. The small factories, which are
unable to set up ETPs, can relocate their units near a central ETP,
he added. Speaking at the 7 th Global Editors' Forum titled 'The
Politics of Climate Change and Energy Security' in Denmark on October
11 , State Minister for Environment Hasan Mahmud had said the
government will shut down the factories that will not set up ETPs.
Landline maker set for automation
Telephone Shilpa Sangstha Limited (TSS), the state-run telephone
equipment manufacturer, is set to go under an automated production
system by December, eyeing production of more than a thousand
landline sets a day. "An automated system by the year-end will enable
our company to make telecom equipment," TSS Managing Director
Mohammad Ismail told The Daily Star. TSS is the prime supplier of
land phone sets and analog system equipment to Bangladesh
Telecommuni-cations Company Limited (BTCL), formerly Bangladesh
Telegraph and Telephone Board (BTTB). After being inactive for a long
time, TSS restored its production last week. In the late 1980 s, the
introduction of digital telephony by the government but the absence
of any initiative to raise capacity has led to such inactiveness of
the lone telephone equipment maker in the public sector. The last
caretaker government tried to find a strategic partner for the
company. But no local or foreign company suitably responded to this
move. Meanwhile, the latest move by the present government, in line
with its electoral pledge to make Bangladesh a digital one, will
breathe a new life. With the automation, TSS handset production
capacity is expected to rise to 1 ,000 units per day from the
existing 50. Presently, 14.61 lakh customers are using land phones.
BTCL enjoys a 8.72 lakh customer base, while private landline
operators hold the rest. Besides the automation move, a Tk 25 crore
project has been taken up for the TSS under which base stations will
be supplied to TeleTalk, the state-owned mobile operator. According
to TSS officials, this project may create a momentum in the company's
activation further. The parliamentary standing committee on the
telecommunication ministry earlier announced a plan to reinvigorate
the government entity. This body recommended manufacture of mobile
phone sets and low price laptop by the TSS in association with a
foreign company. TSS was established in 1967 as Telephone Industries
Corporation under a joint venture.
equipment manufacturer, is set to go under an automated production
system by December, eyeing production of more than a thousand
landline sets a day. "An automated system by the year-end will enable
our company to make telecom equipment," TSS Managing Director
Mohammad Ismail told The Daily Star. TSS is the prime supplier of
land phone sets and analog system equipment to Bangladesh
Telecommuni-cations Company Limited (BTCL), formerly Bangladesh
Telegraph and Telephone Board (BTTB). After being inactive for a long
time, TSS restored its production last week. In the late 1980 s, the
introduction of digital telephony by the government but the absence
of any initiative to raise capacity has led to such inactiveness of
the lone telephone equipment maker in the public sector. The last
caretaker government tried to find a strategic partner for the
company. But no local or foreign company suitably responded to this
move. Meanwhile, the latest move by the present government, in line
with its electoral pledge to make Bangladesh a digital one, will
breathe a new life. With the automation, TSS handset production
capacity is expected to rise to 1 ,000 units per day from the
existing 50. Presently, 14.61 lakh customers are using land phones.
BTCL enjoys a 8.72 lakh customer base, while private landline
operators hold the rest. Besides the automation move, a Tk 25 crore
project has been taken up for the TSS under which base stations will
be supplied to TeleTalk, the state-owned mobile operator. According
to TSS officials, this project may create a momentum in the company's
activation further. The parliamentary standing committee on the
telecommunication ministry earlier announced a plan to reinvigorate
the government entity. This body recommended manufacture of mobile
phone sets and low price laptop by the TSS in association with a
foreign company. TSS was established in 1967 as Telephone Industries
Corporation under a joint venture.
Grameen Foundation teams up with USAID
The US Agency for International Development ( USAID) and Grameen
Foundation announced a new private-public partnership to support
local currency financing to micro-finance institutions ( MFIs)
throughout the developing world, says a press release. Alonzo
Fulgham, acting administrator of USAID, and Alex Counts, chief
executive officer and president of Grameen Foundation, signed a
memorandum of understanding recently to formalise the collaboration.
The $162.5 million joint guarantee agreement will help MFIs around
the world gain greater access to financing and address some of the
effects of tightening credit markets.
Foundation announced a new private-public partnership to support
local currency financing to micro-finance institutions ( MFIs)
throughout the developing world, says a press release. Alonzo
Fulgham, acting administrator of USAID, and Alex Counts, chief
executive officer and president of Grameen Foundation, signed a
memorandum of understanding recently to formalise the collaboration.
The $162.5 million joint guarantee agreement will help MFIs around
the world gain greater access to financing and address some of the
effects of tightening credit markets.
Gas crisis forces Monno Fabrics into layoff
The gas supplying authority yesterday approved a solution for Monno
Fabrics to ease a severe gas pressure crisis that forced the leading
textile factory to suspend operations from October 22. Established in
1994 , Monno Fabrics was the largest customer of Titas Gas
Transmission and Distribution Company Ltd (TGTDCL) in Manikganj area,
said Moynul Islam, the company's vice- chairman. "We had contacted
relevant ministries and the Titas Gas office to increase gas
pressures in our factory, but no-one responded," he told The Daily
Star. "Ultimately, we suspended operations." Influenced by news of the
lay-off, shares of Monno Fabrics dropped 10.16 percent to Tk 108. 25
on the Dhaka Stock Exchange yesterday. Islam said although workers
were sitting idle because of "zero gas pressure", Monno Fabrics paid
them for the last six months as they expected the situation to
improve. TGTDCL Managing Director Aziz Khan told The Daily Star that
a proposal to solve Monno's problems with gas pressure reached him on
September 24 , and he sought clarifications on who will bear the
costs of the solution. With the clarifications now available, TGTDCL
was to pass a judgment in favour of Monno Fabrics, where a kilometre
of extra gas pipeline will be installed and the district regulatory
station will be modified, through which gas is supplied to the two
main factories in the area: Monno Fabrics and an unit of Akiz Group.
"We are approving Monno's proposal tonight ( last night)," said Khan.
"It is our responsibility to keep Monno Fabrics alive." Islam said if
TGTDCL ensures a continuous gas supply, it will take the factory a
month to reopen. He also said the company will have to follow a
"legal process" required to reopen a suspended factory. Low
gas-pressure has come as a huge setback to the manufacturing sector.
The boiler of the factory needs a supply of gas at a pressure of 15
pounds per square inch (PSI) while the generator requires 20 PSI --
which TGTDCL was unable to ensure. In March, TGTDCL attempted to
resolve the problem by installing pressure-related equipment -- low
differential regulator, but it did not work. The total investment by
Monno Fabrics has reached Tk 500 crore, Islam said. Prior to the
suspension, the total number of workers at the factory was 2 ,500.
The factory's production capacity was 15- lakh yards of fabric a
month, Islam said. Shares of Monno Fabrics have been falling over the
last four trading days. On October 20 , Monno Fabrics shares came
down by 4.29 percent to Tk 145 on the DSE, while the price declined
by 6.21 percent to Tk 136 on October 21 and by 11.40 percent to
Tk 120.50 on October 22.
Fabrics to ease a severe gas pressure crisis that forced the leading
textile factory to suspend operations from October 22. Established in
1994 , Monno Fabrics was the largest customer of Titas Gas
Transmission and Distribution Company Ltd (TGTDCL) in Manikganj area,
said Moynul Islam, the company's vice- chairman. "We had contacted
relevant ministries and the Titas Gas office to increase gas
pressures in our factory, but no-one responded," he told The Daily
Star. "Ultimately, we suspended operations." Influenced by news of the
lay-off, shares of Monno Fabrics dropped 10.16 percent to Tk 108. 25
on the Dhaka Stock Exchange yesterday. Islam said although workers
were sitting idle because of "zero gas pressure", Monno Fabrics paid
them for the last six months as they expected the situation to
improve. TGTDCL Managing Director Aziz Khan told The Daily Star that
a proposal to solve Monno's problems with gas pressure reached him on
September 24 , and he sought clarifications on who will bear the
costs of the solution. With the clarifications now available, TGTDCL
was to pass a judgment in favour of Monno Fabrics, where a kilometre
of extra gas pipeline will be installed and the district regulatory
station will be modified, through which gas is supplied to the two
main factories in the area: Monno Fabrics and an unit of Akiz Group.
"We are approving Monno's proposal tonight ( last night)," said Khan.
"It is our responsibility to keep Monno Fabrics alive." Islam said if
TGTDCL ensures a continuous gas supply, it will take the factory a
month to reopen. He also said the company will have to follow a
"legal process" required to reopen a suspended factory. Low
gas-pressure has come as a huge setback to the manufacturing sector.
The boiler of the factory needs a supply of gas at a pressure of 15
pounds per square inch (PSI) while the generator requires 20 PSI --
which TGTDCL was unable to ensure. In March, TGTDCL attempted to
resolve the problem by installing pressure-related equipment -- low
differential regulator, but it did not work. The total investment by
Monno Fabrics has reached Tk 500 crore, Islam said. Prior to the
suspension, the total number of workers at the factory was 2 ,500.
The factory's production capacity was 15- lakh yards of fabric a
month, Islam said. Shares of Monno Fabrics have been falling over the
last four trading days. On October 20 , Monno Fabrics shares came
down by 4.29 percent to Tk 145 on the DSE, while the price declined
by 6.21 percent to Tk 136 on October 21 and by 11.40 percent to
Tk 120.50 on October 22.
Oil slips from $82
World oil prices slid Thursday on profit-taking after soaring
overnight to 82 dollars per barrel, striking a one-year peak on the
back of sliding US energy reserves and the weak greenback, traders
said. New York's main contract, light sweet crude for December
delivery, fell 1.25 dollars to 80.12 dollars a barrel. The contract
had touched 82.00 dollars exactly on Wednesday -- a level last seen
in October 2008.
overnight to 82 dollars per barrel, striking a one-year peak on the
back of sliding US energy reserves and the weak greenback, traders
said. New York's main contract, light sweet crude for December
delivery, fell 1.25 dollars to 80.12 dollars a barrel. The contract
had touched 82.00 dollars exactly on Wednesday -- a level last seen
in October 2008.
Russia is out of recession
Russia is out of recession and its economy will grow by two percent
in the fourth quarter owing to a rise in oil prices, Finance Minister
Alexei Kudrin was quoted as saying on Saturday. "We now see that the
Russian economy is starting to grow... it is out of recession,"
Kudrin told the Interfax news agency. "In the fourth quarter, we
already expect growth above two percent, mainly due to rising oil
prices," he added. "As long as oil prices range between 70 and 80
dollars per barrel, there will be growth," the finance minister said,
claiming any drop off would be a result of market "speculation."
Kudrin said that is why the government had made its growth forecasts
based on oil prices remaining at 58 to 60 dollars -- oil accounts
for around 60 percent of Russia's total exports. The Russian
economy, which is also driven by exports of gas and other
commodities, was badly hit by the global financial crisis after
enjoying years of strong growth but officials have said the worst of
the crisis might be over.
in the fourth quarter owing to a rise in oil prices, Finance Minister
Alexei Kudrin was quoted as saying on Saturday. "We now see that the
Russian economy is starting to grow... it is out of recession,"
Kudrin told the Interfax news agency. "In the fourth quarter, we
already expect growth above two percent, mainly due to rising oil
prices," he added. "As long as oil prices range between 70 and 80
dollars per barrel, there will be growth," the finance minister said,
claiming any drop off would be a result of market "speculation."
Kudrin said that is why the government had made its growth forecasts
based on oil prices remaining at 58 to 60 dollars -- oil accounts
for around 60 percent of Russia's total exports. The Russian
economy, which is also driven by exports of gas and other
commodities, was badly hit by the global financial crisis after
enjoying years of strong growth but officials have said the worst of
the crisis might be over.
Japan Airlines to restructure under new state- backed agency
Ailing Japan Airlines will restructure itself under a state-backed
corporate turnaround firm while the government mulls a special law to
cut the carrier's high pension payouts, reports said Sunday. The
Japanese government, which will announce a turnaround plan for JAL by
the end of this week, will also consider an injection of public
funds after the plan is finalised, the Nikkei business daily reported
without citing sources. Local media reported that the state-backed
Enterprise Turnaround Initiative Corp. of Japan will be in charge of
breathing life back into the carrier. The government launched the
quasi-public agency earlier this month to help debt-laden companies
that are seen as having the potential to recover, designed to ensure
transparency in negotiating debt-relief measures among creditors.
corporate turnaround firm while the government mulls a special law to
cut the carrier's high pension payouts, reports said Sunday. The
Japanese government, which will announce a turnaround plan for JAL by
the end of this week, will also consider an injection of public
funds after the plan is finalised, the Nikkei business daily reported
without citing sources. Local media reported that the state-backed
Enterprise Turnaround Initiative Corp. of Japan will be in charge of
breathing life back into the carrier. The government launched the
quasi-public agency earlier this month to help debt-laden companies
that are seen as having the potential to recover, designed to ensure
transparency in negotiating debt-relief measures among creditors.
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