Easy finance for palm oil import

Malaysia has offered Bangladesh easy finance for procuring palm oil with reduced cost of transportation to Bangladesh. In an interview with New Age, Malaysian minister for plantation industries and commodities, Tan Sri Bernard Dompok, said Bangladesh market has enormous potential for palm oil export from his country. 'We are ready to provide special finance to Bangladesh importers for procuring palm oil from Malaysia,' Dompok said who came to Dhaka to attend a fair of Malaysian palm oil and seminar on this product. He said that the finance-Palm Oil Credit Payment Arrangement- is designed mainly for the private sector importers but it needs guarantees from government. He said some Bangladeshi millers were importing palm oil from Indonesia at low cost transportation due to convenient shipping between ports in Bangladesh and Indonesia. 'We will take steps for shipping Malaysian palm oil to Bangladeshi refiners at lower cost,' he said. The minister said his country produces best quality palm oil so they could offer better products to Bangladesh market. In 2008, Bangladesh imported 217,264 tonnes of Malaysian palm oil, but from January to October this year, the volume declined to 56,726 tonnes worth $28 million. A good number of Bangladeshi importers are now importing palm oil from Indonesia on better deals in terms of price and transportation cost. According to Bangladesh Bank, the country's annual bill for import of crude, seeds and refined oil is around one billion dollars when the total supply to the consumers level worth $1.5 billion with some local productions. Palm oil, directly sourced from Malaysia and Indonesia or procured from the Singapore-based traders, meets around two-thirds of the country' s demands. 'Edible oil consumption in Bangladesh is increasing with economic growth. But current per capita annual consumption of oil in Bangladesh is still as low as only 8.6 kilogrammes compared to the world's average consumption of 22kg,' he said. While asked about future oil price, he said it would depend on market dynamics including demand and supply.' He does not believe that Bangladeshi oil millers can control the prices in local market as market is open for all wishful importers. The Malaysian minister invited Bangladeshi importers to source timbers and papers from Malaysia.

Bangladeshi RMG sector may be restructured

The country's industrial sectors including major export-earning readymade garments need to be restructured to improve their competitiveness in the coming days, a high-profile policy dialogue on Tuesday recommended. The gathering of economists and other researchers expressed serious concern at the density of population in Dhaka and elsewhere — a critical problem, which, they pointed out, had now been constraining industrialisation and farming opportunities. 'The garment sector should be restructured for higher competitiveness,' Wahiduddin Mahmud, a former caretaker government adviser, said with a cautionary note that low wage costs would not compensate for disadvantage in marketing skills and infrastructure deficiencies. Acknowledging the concerns, the finance minister, AMA Muhith, emphasised export diversification to sustain market challenges and development of rural compact townships to protect farmland and ensure industrialisation. At the roundtable on 'Operationalising pro- poor growth: research-policy link', the minister announced that the country would get rid of sick industries within the remaining period of the Awami League-led government. 'For the country's survival and for providing reasonable habitation, rural township needs to be implemented,' Muhith said, however asking how such compact township would be development without an authoritarian regime. The finance minister also expressed his frustration at the lack of depth and adequacy of initial public offers at the capital market and said the government would 'have to look into the area'. The economic affairs adviser to the prime minister, Masihur Rahman, said there was 'too much' dependence on debt financing. He added that agro-based exports such as fishes had been exposed to risks as the farmers were not covered by insurance. Bangladesh Institute of Development Studies and Economic Research Group jointly organised the roundtable discussion at Dhaka Sheraton Hotel to highlight the issues pertaining to economic development and poverty alleviation. Underlining the importance of adopting research-based policy, the director general of the institute, Mustafa K Mujeri, said, 'This is constrained by absence of skilled and capable professionals, institutions with mandates and resources and nature of linkages of researchers with policymakers.' Mark Rosenzweig, a professor Yale University, the USA, stressed the need for high-quality up- to-date data for proper research and development planning while Masihur Rahman said the Bangladesh Bureau of Statistics must be upgraded in order to raise capacity and ensure credibility of the institution. 'The Bangladesh government is one of the most research-guided governments in this part of the world,' said the finance minister still blaming the mindset of the policymakers to depend on funding agencies for supporting research projects. Business leaders and professors of Western universities present there called for linking research to demands from and the latest challenges to various sectors for he forward march of Bangladesh, which was widely considered as a development paradox in view of poor governance vis-à-vis social progress. 'The black-box of 'governance' needs to be unbundled in order to identify its growth- constraining aspects,' said professor Wahiduddin Mahmud, dwelling on the ways and means on how to break the shackles of economic stagnation and extreme poverty. The president of Bangladesh Knitwear Manufacturers and Exporters Association, AKM Fazlul Hoque, said some of the forecasts by researchers of aid agencies such as the World Bank and International Monetary Fund about prospects of textiles industry in Bangladesh proved to be wrong. The World Bank's Sadiq Ahmed mentioned that Bangladesh had not been able top take its advantage of having sea outlet and of its location as corridor between the South Asia and Southeast Asia.

Unemployment rate rise in Philippines

Unemployment in the Philippines rose to 7.1 percent in October, up from the 6.8 percent posted for the month last year, the government' s National Statistics Office said Tuesday. However this rate was down from the 7.6 percent posted in July, the last jobless figure released by the statistics office. Underemployment, defined as those working fewer than 40 hours a week, rose to 19.4 percent in October, down slightly from the rate posted in July. However, this was sharply up from the 17.5 percent posted in October 2008. The size of the labour force increased to 38.2 million, up from 37.8 million in April. Only 22 million of the total labour force were working full-time. No reason was given for the rise in unemployment but the country's economic growth has been sluggish in recent months, with the gross domestic product rising by only 0.8 percent in the three months to September.

First flight for Boeing Dreamliner

Boeing's new 787 Dreamliner passenger aircraft has successfully completed its first test flight in the US. The three-hour flight started from Everett, north of Seattle, and the plane landed at Boeing Field, just south of Seattle. The 787 project had been delayed by two-and-a- half years following a series of hitches, including design problems. Boeing has pegged its hopes to the Dreamliner, which promises to be one of the world's most fuel-efficient planes. The two test pilots carried out a number of basic system checks, including testing the landing gear and flaps. "The airplane responded just as we expected," said Randy Neville, one of the pilots. "It was a joy to fly." The take off and landing was watched by several hundred Boeing employees, industry guests and aircraft enthusiasts. BBC correspondent Rajesh Mirchandani, who was in Everett to witness the Dreamliner's first take off, said the plane had passed one "crucial milestone". "There were cheers as the sleek jet, painted in blue and white, lifted off from a cold, damp airfield," he said. "Afterwards some of the Boeing employees said they felt a sense of excitement and relief." The Dreamliner will now go into nine months of continuous testing, with six planes flying around the clock. 'Revolutionary project' The Dreamliner has attracted some 840 orders from all over the globe, although some have been cancelled because of the delays. Its popularity is partly thanks to its lightweight design. Made of carbon and titanium, it should reduce fuel consumption as well as save on maintenance costs. ANALYSIS By Jorn Madslien, Business reporter, BBC News Some 840 orders for the 787 Dreamliner makes the plane worth about $140 bn (£86 bn) for Boeing. But first, the aerospace giant must get the plane ready for delivery to airlines. Analysts warn that the maiden flight is just a step towards that goal, not a sign that everything is fine. The 787 is already 30 months behind schedule and there could be further delay as the aircraft begins test flights and seeks federal certification Boeing says it will deliver the plane to customers by the end of 2010. Analysts say that is a very optimistic timetable. The design aims to make the plane nimble and able to fly long distances without refuelling. Howard Wheeldon, a transport analyst with BGC Partners, told the BBC World Service that it was a revolutionary project which would reshape aviation. "This is an aircraft that changes the whole basis of flying, because of the equipment onboard," he said. "In terms of the cost of operation this is an 80 % composite material aircraft, with 35 tonnes of carbon-fibre reinforced plastic, so it is a light aircraft - which means it burns less fuel." Its arch-rival, Airbus, also has a lightweight craft in development. Its A350 plane will also be made primarily from carbon-composite materials. Airbus is also targeting a different market with its giant A380 , a craft that can carry far larger numbers of passengers although it is limited to flying to those airports that are equipped for the double-decker aircraft. Battle for the skies The 787 was first unveiled in July 2007 and is Boeing's first all-new jet since 1995. The newness of the Dreamliner design has meant a steep learning curve for Boeing and that, and the fact that the company ventured into wide- ranging outsourcing for the first time, has led to a raft of problems. Early delays to the 787 project were caused by shortages of parts and the difficulties of bringing together fuselage and wing structures from Japan, Italy and elsewhere in the US. Mr Wheeldon said: "There is a huge test programme - because everything is new. Essentially, it has to be proven, and proven again." Exactly how much profit Boeing can expect to make from the plane is uncertain. Analysts say the company has invested more than $10 bn in the project, and will have to give some sort of compensation to customers for late planes. How late the planes are, and how they will perform, will not be known until all the flight tests are completed. Boeing is not the only plane-maker hit by snags though. Earlier this month, Airbus's A400 M military transport plane finally took to the skies in Spain for its first test flight after a series of delays. Boeing has said it hopes to deliver the first plane by the end of 2010 to Japan's All Nippon Airlines.

US market's producer price rise

US producer prices rose more than expected in November, led by a big increase in the cost of petrol, official figures have shown. The Labor Department's Producer Price Index increased 1.8 % from October, on a seasonally adjusted basis, the biggest rise in three months. The cost of petrol increased by 14 % on the back of higher crude oil prices. The data will increase inflation concerns, but US interest rates are expected to remain on hold this week. Officials at the Federal Reserve, the US central bank, are due to make their latest rates decision on Wednesday, and are widely expected to keep rates on hold at between 0 % and 0.25 %. They have been at this level since December of last year, and the Fed said last month that it would keep rates at this historic low for an " extended period" to aid the continuing US economic recovery. Core US producer prices - which excludes the volatile cost of food and energy - also rose by more than expected last month. They grew 0.5 %, compared with market expectations of a more modest 0.2 % increase.

World's airlines will see huge loss in 2010

Airline industry body Iata has predicted that airlines will lose $5.6 bn (£3.5 bn) next year - an increase from the $3.8 bn it originally forecast. Iata also reiterated that losses this year would probably total $11 bn. Chief executive Giovanni Bisignani said 2009 had been an "annus horribilis" for the sector, but added that "the worst is likely behind us". He predicted that next year would see more passengers as well as increased air cargo volumes. Iata said that European airlines were expected to lose the most money next year, $2.5 bn between them, while North American airlines would be likely to lose a total of $2 bn. The biggest improvement is expected to come from carriers in the Asia-Pacific, while Latin American airlines are expected to be the only profitable regional group. Delta forecast Separately, US carrier Delta Airlines predicted it would make a $1.1 bn loss this year, but also forecast a better 2010. Delta president Ed Bastian told an annual investor conference that there was a "real tangible evidence that a recovery is under way". He added that the volume of tickets sold to corporate clients had risen by almost 15 % over the past couple weeks. While Iata is predicting that number of travellers will return to 2007 levels, it points out that revenues from passengers will be $30 bn less than then. The forecast for cargo demand next year has been increased as businesses start to replenish stocks. Iata now expects it to grow by 7 % to 37.7 million tonnes - up from a previous prediction of a 5 % increase. Mr Bisignani added that "consolidation is the great hope for the industry". "It has been confined with political borders... the industry cannot afford the mounting losses of the status quo. The next decade must facilitate consolidation," he said.

An anti-corruption plan taken by Greece Prime Minister

A plan to quell Greece's economic crisis will combat "systemic corruption" and "red tape", Greece's PM George Papandreou has told the BBC. He has held talks with opposition leaders to discuss his raft of spending cuts, focusing on tackling corruption. The planned reforms would include a 10 % cut in social security and government spending, as well as a 90 % tax on senior bankers' bonuses. Trade unions have called for nationwide strikes to protest against the reforms. But Mr Papandreou urged unity, saying all members of society would have to pull their weight if Greece was to avoid "sinking under all its debts". Greece has come under increasing pressure to take action over its deficit from the European Central Bank. The country's public debt stands at 300 bn euros ($442 bn; £269 bn). International ratings agency Fitch last week downgraded the country's credit rating - meaning it thought Greece was now a riskier place to invest. Cut corruption Systemic corruption and clientelism - paying money for political favours - had created a sense of the lack of the rule of law in Greece and accentuated issues such as tax evasion, the prime minister told the BBC. He says his plan will help reduce Greece's public deficit from the current 12 % to less than 3 % by 2013. "Bureaucracy costs 7 % of GDP and we hope to halve it by cutting corruption and red tape," he said. Although Mr Papandreou has a big enough parliamentary majority to force through such cuts, he wants to forge a cross-party political consensus. Combating corruption was high on the agenda at Tuesday's meeting with opposition leaders ranging from the conservatives to the Communists, which was chaired by the country's president. Speaking after the meeting, Mr Papandreou said he and the party leaders had been in agreement on several points, "despite our possible ideological differences", Associated Press reported. However, opposition leaders were less welcoming about the measures announced on Monday. "What is he asking us to support? His generalities? His delays?" said conservative leader Antonis Samaras, in comments reported by AP. The Communists, meanwhile, have already made it clear they do not think the financial crisis is a matter that requires national unity. Supporters of the left-wing PAME union on Tuesday attempted to blockade the entry to the finance ministry, with protestors lowering a massive banner from its roof which read "Rise up". The carefully choreographed demonstration was the start of what is likely to be a nationwide campaign of industrial unrest, says the BBC's Malcolm Brabant in Athens. 'Change or sink' On Monday Mr Papandreou had warned that Greece had "lost every trace of credibility" and needed to "change or sink". He announced cuts in defence spending, pay and hiring freezes for public sector workers, as well as the closure of a third of Greece's overseas tourism offices. He also called for reforms of the tax inspectorate, designed to remove corruption and end tax evasion. Many businesses regard the inspectors as all- powerful protection racketeers who threaten companies with audits and heavy fines unless they pay bribes, says our correspondent. Mr Papandreou says the inspectors will be monitored by a new finance police, designed to guarantee that companies and individuals pay fair amounts of tax. Markets had a mixed response to the raft of cuts. On Tuesday evening, the Athens Stock Exchange was down by around 2 %. Here is a selection of comments BBC News readers in Greece have sent to us in reaction to this story: If you ask me, not only do I see the glass as half- empty but there is no water at all. It seems that we Greeks live in our own universe believing that our current way and standard of living is our right and the rest of Europe is obliged to fund it. We spent most of the EU funds on useless investments, hiring more and more public sector workers, not caring about the future. Greece is one of the worst places to invest, we have a low quality educational system compared to the rest of the EU and is a place where anybody can do whatever they like believing that they are above the law. So how can I be optimistic about the future? Are spending cuts necessary? Yes. Are we Greeks willing to make sacrifices and change everything for a better future? No. Christos E, Volos, Greece These measures are absolutely necessary and in fact should have been implemented years ago by the last government. Even more imperative are the efforts at eradicating the endemic corruption that exists across all levels and in every institution. This is a plague! Finally, the Greek tax code and taxation collection system needs to be modernised and executed in a non-partisan way. Greek society is bedevilled by party politics and favouritism. No wonder the country is in dire straits. Kyriakos Anastassiadis, Voula, Greece Due to the high level of corruption, it has become normal practice for the public sector workforce to receive alternative compensation for services which should be normally covered via taxation. Cutting public sector funding will only help fuel these deep inefficiencies. Andreas Papadopolous, Athens, Greece I am a doctor, currently unemployed because I have a waiting period of three years before I start the last part of my residency. At my last post, a state hospital, I was working 13 24- hour shifts per month. Often more than 90 hours per week. I was receiving four euros for one hour of overtime. They still owe me some of that money. I am currently living with my wife and kid in my parents' home. My parents are facing the second year of a pension freeze. Is this whole mess our fault? We keep making sacrifices to achieve some EU goals. We now have to endure a further 10 % cut in social security spending. And then incoming EU funds are somehow lost before reaching ordinary hard-working folks like us. Any suggestions for a way out are welcome. Theodoros, Athens, Greece Every new government says that economic numbers are a little worse so as to have more grounds for improvement. Of course all measures are necessary, but I am still not convinced that the government strongly wants to fight corruption. Greece is poor, but many people live with good cars and pay for private schools and private healthcare. What is needed is a new national agreement on what kind of society we want. Theodore Karakasis, Thessaloniki, Greece I will be affected by the measures announced but, of course, I fully support them. Actually, I wish they were bolder. The majority of Greeks are prepared for sacrifices, have no doubt about it. The leftist parties have actually lost votes because of their silly attitude. One thing that should be stressed, though, is how this issue has been blown way out of proportion by the international media. Newly elected Greek governments do like to appear as saviours, while painting the previous government as the bad guys. That's what New Democracy did in 2004 , and the same is being done today. Greece was in far worse shape in 1990 and at the time there was no Eurozone. But the sky did not fall on our heads. I am frankly curious to see what has sparked this media campaign and, of course, hoping for the best, as always! Labros, Athens, Greece I know the moves are painful, but I fully agree with them. However, I feel that more must be done about tax evasion, probably the biggest problem. As well as the assumption by almost all Greeks that social security (pensions and health insurance) should not cost us much. Both must be dealt with, and while the tax part will only cost some people, the national insurance will cost everyone.

Petrol price running higher

UK inflation picked up pace in November, driven largely by higher petrol prices, official figures show. The consumer prices index (CPI) rose faster than expected to an annual rate of 1.9 %, compared with 1.5 % in October. November's rate was the highest since May this year. The inflation rate is forecast to rise further next year when the VAT discount ends. The retail prices index (RPI), which includes housing costs, rose to 0.3 % from a rate of -0.8 % in October. It is the first time the RPI index has been positive since January this year. Cheaper oil "By far the largest upward pressure affecting the change in the CPI annual rate came from transport," said the Office for National Statistics (ONS). "Within the transport category the largest upward effect came from fuels and lubricants," it added. "The large fall in 2008 was due to sharp falls in petrol and diesel prices, reflecting the falling price of crude oil in the latter half of 2008. " Average petrol prices rose by 2.9 p to 108.3 p a litre in November - compared with a record fall of 9.3 p this time last year. Petrol prices are dictated by the price of crude oil. This time last year prices were tumbling after reaching a record high in July 2008 , and they eventually reached a low in December. The Bank of England has a CPI target of 2 %. The Bank expects the index to rise above that in the new year after VAT reverts to 17.5 %. If CPI inflation rises above 3 % the Bank's governor, Mervyn King, must write to the chancellor to explain why. However, the Bank expects the inflation rate to slow later in the year. "November's consumer price figures will do little to ease recent concerns over the near-term inflation outlook" said Jonathan Loynes, economist at Capital Economics. "But we remain convinced that price pressures will remain subdued over the medium term." The ONS said that price rises in second-hand cars and clothes also pushed up inflation.