Oil down

Oil prices were lower in Asia Thursday as traders took stock of weak fundamentals in the market, analysts said. New York's main contract, light sweet crude for December delivery, shed 70 cents to 79.70 dollars a barrel in afternoon trade. Brent North Sea crude for December delivery slipped 68 cents to 78.21 dollars. Prices eased after breaking through the 80- dollar mark in New York on Wednesday, reflecting concerns over demand, analysts said.

Citi Foundation launches micro entrepreneurship awards

Citi Foundation, the philanthropic arm of Citigroup, yesterday launched the Citi Micro Entrepreneurship Awards for 2009. The awards are to recognise entrepreneurial skills and best practices of individual micro entrepreneurs in Bangladesh. This year awards will be given in four categories, mainly to the microcredit borrowers who have shown outstanding talent for coming out of poverty. One award will also go to the best micro-finance institution (MFI). Each winner will get Tk 3 ,50 ,000 as prize money. The categories are: best micro-entrepreneur in agriculture, best woman micro-entrepreneur, best micro-entrepreneur and best micro-finance institution. "We are advancing on economic and social fronts gradually, despite various obstacles. And micro- credit has a contribution to progress," said Wahiduddin Mahmud, chairperson of the Advisory Council for Citi Micro Entrepreneurship Awards 2009. Mahmud, also chairman of umbrella body for micro credit -- Palli Karma Sahayak Foundation ( PKSF), was speaking at a press conference to announce the competition, being launched for the fifth consecutive year since 2005. Mahmud, also professor of economics at the University of Dhaka, said micro-credit is expanding in Bangladesh in various forms, which in turn helps cater to the financial needs of low and mid-income people and medium-size firms. He said farmers are receiving micro-credit to increase crop production. "It is encouraging," he said. Citibank NA, Bangladesh and a local NGO Shakti Foundation for Disadvantaged Women will manage the awards jointly. The Daily Star, Bangla daily The Prothom Alo and Channel i are partners for the programme. "We aim to introduce the best micro entrepreneurs to the nation. We want to award the winners in March next year," said Mamun Rashid, country officer of Citibank NA, Bangladesh. Dr Siddiqur Rahman Chowdury, the award advisory council member, Abu Ahmed, professor of economics at University of Dhaka, Mustak Hassan Md Iftekhar, director general of NGO Affairs Bureau, and Dr Humaira Islam, founder executive director of Shakti Foundation for Disadvantaged Women, were also present.

BANGLADESHI minister seeks Japanese investment in textiles

Industries Minister Dilip Barua yesterday invited Japanese investors to invest in sectors such as textiles, leather goods, food processing and real estate. "We can ensure that all facilities will be provided to the Japanese companies," he said while exchanging views with a Japanese business delegation. The 23- member Japanese business delegation led by Kiyoshi Omori, who are here looking for business and investment prospects, called on the minister at his office yesterday. Mentioning the business agreement between Bangladesh and Japan, signed in 1998 , the minister said Japanese companies can invest, taking advantage of generous facilities for foreign investors. Japan can also help Bangladesh by transferring their technology here in building a Digital Bangladesh by 2021. "We will try our best to ensure security for the foreign investors and their capital in Bangladesh. Japanese companies can invest as Bangladesh might be the best location for future production due to low-cost and available labor force of the country," he said. Barua said the government would announce a new industrial policy to attract local and foreign investors in investing their capital and creating a more industry-friendly atmosphere in the country. "Bangladesh is a unique place for foreign investors as there is no political instability here now and an industry-friendly atmosphere is prevailing in the country. Foreign investors can invest their capital and earn profit easily," he said.

BANGLADESHI business confidence turns around Survey expects better growth in October- December period

Bangladesh's business community builds up confidence in a recovery hope in the global financial crisis, a study said yesterday. Business confidence was better in the third quarter this year, which is expected to be stronger in the fourth quarter (October- December). Prospects of new business opportunities that are rising gradually along with the recovery signs in the crisis-ridden global economies have helped build the business confidence in Bangladesh. Most of the firms are expected to post better profit in the fourth quarter, according to the survey. However, investment prospect remains same -- dull -- for the last quarter compared to the previous three months. Bangladesh Investment Climate Fund (BICF) and International Chamber of Commerce-Bangladesh (ICC-B) jointly conducted the survey among 778 different firms across the country through a face-to-face interview method. The responses were converted into a linear scale of 0-100. Of the 0-100 marks, over 50 means better, less than 50 means worse and 50 means unchanged. The survey said 91 percent firms expect better business in the fourth quarter. According to the survey styled 'Business Confidence Survey 2009 : Experience in July- September Quarter & Expectation for October- December Quarter', business confidence is expected to rise 65 percent in the fourth quarter, which was 51 percent in the previous quarter. The survey predicts 66 percent profitability in the last quarter, which was 52 percent in the July-September period. The anticipated employment generation for Q4 is 57 percent, which was 51 percent in the Q3. The investment index for Q3 and Q4 remains same at 52 percent. In the Q3 , the investment constraints what the survey identified for manufacturing and large- scale industry pushed down demands in the global market. Lack of business opportunity and funding were identified as investment constraints in Q3 for services sector and small and medium enterprises. However services sector and small firms were in a better position in the Q3 than large and medium manufacturing sectors. The businesses in these sectors are expected to perform better in the Q4 , anticipating a performance gain of 84-93 percent. Prof Wahiduddin Mahmud termed the growing business confidence as 'animal spirits' and said such psychological turnaround indicates something better in the future. "We, the business community, strongly feel that power generation and gas exploration should now be the top priorities of the government," said Mahbubur Rahman, president of ICC-B. However some businessmen differed on some findings of the survey. Referring to the negative export growth and reduction in import of capital machinery, Aftab Ul Islam, chairman of SME Foundation, said: "I don't think we will able to do something that we never saw before." Mustafa K Mujeri, director general of Bangladesh Institute of Development Studies, said: "It's time to adopt a comprehensive policy for developing confidence among the businessmen." James Crittle, head of BICF, said business environment must be improved. The government should take steps to boost confidence among businessmen. "Rising business confidence means rising investment that creates job opportunities," said Crittle at the programme at Dhaka Chamber of Commerce and Industry auditorium. Commerce Minister Faruk Khan also spoke at the event.

Booming shares boost China's super-rich

The sharp rebound in Chinese stocks has seen the total fortune of the nation's ultra-wealthy balloon by 141 billion dollars, Forbes magazine said Thursday as it released its annual China rich list. The net worth of the country's 400 richest people rose to a record 314 billion dollars in the year to November from 173 billion dollars a year ago, Forbes said in a report. The list consists of a record 79 dollar billionaires, as opposed to just 24 last year, after the Hong Kong and Shanghai bourses soared 56 percent and 69 percent respectively, the magazine said. "Chinese entrepreneurs went through lots of difficulties last year. Now wealth is coming back, " Forbes senior editor Russell Flannery told a news conference. "The gains in their personal fortunes were a sharp reversal to the losses sustained by billionaires in other parts of the world, (and) reflected the rise of China," he said. Flannery said the entry level for the list had increased from 200 to 300 million dollars. BYD car battery tycoon Wang Chuanfu came out on top with a fortune of 5.8 billion dollars -- far below the 50 billion dollars Forbes said was amassed by the richest man in the United States, Microsoft founder Bill Gates. Wang also topped the recently released Hurun Rich List for China. The rankings illustrate how fortunes have recovered from last year when China's super- wealthy were hit hard by the global credit crunch and financial crisis. There were fewer billionaires in China than in the United States -- where the number fell to 391 from 487 last year -- but the Asian giant was catching up fast, Flannery said. "Chinese people have less money than Americans. But the wealth accumulated by successful Chinese businesspeople is on the rise while that of US businesspeople is on the decline, indicating the wealth is migrating," he said. Last year's number one, Liu Yongxing, slipped to second spot despite increasing his fortune to 5.5 billion dollars -- up 2.5 billion dollars on 2008. Liu made his money through privately held agricultural company East Hope and stakes in China Minsheng Bank, Minsheng Insurance and Bright Dairy. Yang Huiyan, the wealthiest woman on the list, ranked fifth after seeing her fortune increase by 75 percent to 3.9 billion dollars -- but she is still well below her 2007 net worth of 16.2 billion dollars. The 28- year-old's fortune was tied up in Guangdong developer Country Gardens, run by her father Yeung Kwok Keung, who transferred shares to her, Forbes said. The highest ranking newcomer to the list was Liu Zhongtian, in eighth spot, whose aluminium products maker China Zhongwang raised 1.3 billion dollars in an initial public offering in April. Shanghai, the financial hub of China, was home to more super-rich people than any other city in the country, with 45. Beijing has 38 ultra-wealthy people and the southern boomtown of Shenzhen has 35. "China's wealth boom, after last year's bust, is still very much tied to its own robust growth," Flannery said in a report on the magazine's website. "But the best may still be yet to come. More than ever, there are new opportunities for Chinese entrepreneurs willing to seize them, and along with those opportunities, still more fortunes to be made."

US private sector shed 203 ,000 jobs in October

The US private sector shed 203 ,000 jobs in October, the seventh month in a row that employment declines were smaller than in the previous month, payrolls firm ADP said Wednesday. The ADP survey, a snapshot of nonfarm private employment that offers a clue on the direction of the US labor market, comes ahead of Friday's official October labor market data, expected to show the unemployment rate rising to 9.9 percent. The ADP survey added support to indications that job losses are slowing as the economy pulls out of steep recession that began in December 2007. "Despite recent indications that overall economic activity is stabilizing, employment, which usually trails overall economic activity, is likely to decline for at least a few more months," ADP said. The October ADP reading was slightly worse than the 198 ,000 job losses expected by most analysts.

British car sales surge 31.6 pc in October

Sales of new cars in Britain soared by 31.6 percent in October as a result of the state- backed old-for-new scheme, industry body the Society of Motor Manufacturers and Traders announced Thursday. New car sales rose 31.6 percent last month to 168 ,942 vehicles, compared with the same month of 2008 , the SMMT said in a statement. That was the fourth monthly increase in a row. "October has seen this year's biggest monthly increase in registrations with the successful scrappage scheme accounting for over 20 percent of them," said SMMT Chief Executive Paul Everitt in the release. "We have seen additional demand created by the extension of the scheme and customers wanting to avoid the VAT increase planned for January.

News GM plans 10 ,000 job cuts at Opel

General Motors said Wednesday it wanted to cut around 10 ,000 jobs at its European division Opel a day after the US car maker stunned the auto sector by scrapping plans to sell the German- based unit. GM wants to slash costs by 30 percent at Opel, which would mean the elimination of about 10 , 000 jobs from a workforce of 55 ,000 , GM vice president John Smith told European journalists during a telephone news conference. General Motors said Tuesday it was abandoning a project to sell Opel to Canadian auto parts manufacturer Magna International and state- owned Russian bank Sberbank, saying it would implement its own restructuring at the unit.

US, EU start 'clean energy economy' talks

The United States and the European Union opened high-level talks Wednesday aimed at boosting chances of switching "to a clean, sustainable energy economy," US Energy Secretary Steven Chu said. Cabinet ministers from both sides, in Washington for the first meeting of the US-EU Energy Council, discussed tackling energy security and markets, energy policies and regulation, energy technologies and research cooperation. Participants said their talks will promote technological efforts to cut sharply the carbon emissions blamed for climate change as a UN- backed climate summit in Copenhagen prepares to meet next month and set new emissions targets.