Fiat will make 1m car

Fiat has unveiled plans to increase annual car production in Italy to one million over the next three years. But it will still go ahead with plans to shut down the smallest of its five Italian factories based in Sicily. The announcements were made by Fiat chief executive Sergio Marchionne after a meeting with government and union officials in Rome. Fiat also said it would spend 8 bn euros (£7 bn; £$11 bn) in investments and research over the next two years. Two-thirds of that investment will be in Italy. Increased production The Turin-based carmaker produced nearly 650 , 000 vehicles in the country in 2009 , and the Italian government has been urging Fiat to increase production. Mr Marchionne said that within a company restructuring plan a Fiat factory in Turin would produce two Chrysler models by 2012. The Fiat chief has been running Chrysler since June. He also hinted that the production of the Fiat Panda could be transferred to its Pomigliano factory in Southern Italy. But he confirmed that the unit in Sicily's Termini Imerese would shut down at the end of 2011. Mr Marchionne said cars coming out of the plant cost up to 1 ,000 euros more than those from other factories due to the lack of infrastructure in the area. A demonstration by workers took place outside the meeting.

EU extend chinese shoe tariffs

The European Union has voted to extend tariffs on shoes from China and Vietnam in order to help European producers compete with cheaper imports. The tariffs, which were first introduced in 2006 , will last for a further 15 months. A number of countries in the EU were opposed to the extension. China is involved in a number of trade disputes, and on Monday lost an appeal to the World Trade Organization regarding US film and music imports. The organisation ruled in August that China's policy of allowing the goods to be imported only by state-run firms broke global trade rules. The tariffs on Chinese shoes will remain at 16. 5 %, and those on Vietnamese shoes will remain at 10 %. 'Inflated prices' The decision to extend the tariffs was not unanimous. UK Business Secretary Lord Mandelson said: "I am disappointed the EU has decided to extend these duties - they should have been allowed to end as originally agreed. "A small majority of member states did not oppose the measures even though they are no longer justified." He said that maintaining the duties "damages trade, harms the reputation of Europe and forces consumers to pay higher prices at a time when they can least afford it". He also called on the EU to "turn its back on protectionism". While the extension will benefit EU shoemakers, it has also proved unpopular among some retail groups in Europe. "This will be a signal to failing companies around Europe that the Commission will step in and protect them from foreign competition," said the British Retail Consortium. "Consumers will have to keep paying inflated footwear prices."

Dollar rise yen down

The dollar rose against the yen in Asian trade on Tuesday, supported by mounting expectations that the US central bank will be quicker than its Japanese counterpart to raise interest rates, dealers said. The dollar climbed to 91.35 yen in Tokyo afternoon trade from 91.15 in New York late Monday. The euro gained to 1.4288 dollars from 1.4281 and to 130.55 yen from 130.17. The dollar benefited from growing speculation that the Federal Reserve will raise interest rates next year earlier than predicted, dealers said. Investors generally prefer currencies offering the prospect of higher yields. In contrast, Japan's central bank has raised expectations that it will keep its key lending rate at the current level of 0.1 per cent for some time yet, declaring last week that it 'does not tolerate' deflation. But some analysts were sceptical about whether the dollar's rally would continue for much longer. 'We expect the dollar's recovery to stall any time now and anticipate another bout of weakness in the first quarter' of 2010, Dariusz Kowalczyk, chief investment strategist at SJS Markets in Hong Kong, wrote in a note. Investors were keeping an eye on final estimates of US and British gross domestic product for the third quarter due out later in the day.

Malaysia Airlines will buy 25 Airbus

National carrier Malaysia Airlines announced on Tuesday it will buy up to 25 A330-300s wide- body aircraft worth five billion dollars in a bid to serve its growing markets. The airline has signed a memorandum of understanding with Airbus for a firm order of 15 aircraft with options for a further 10, that will be funded via a rights issue planned to raise 2.67 billion ringgit (776.7 million dollars). The aircraft, to be delivered from 2011 to 2016, will serve its growing markets of South Asia, China, North Asia, Australia and Middle East. 'The purchase for the A330-300s will lower our fuel cost and reduce our engineering cost,' Malaysia Airlines managing director Tengku Azmil Zahruddin told reporters. 'It can carry more payload and has a longer range compared to our Boeing 777, which we are using now. (The new fleet) will give us a lower cost and enhance our revenue,' he said. The carrier said it expects to make annual savings of 300 million ringgit (87.3 million dollar) after the first 15 aircraft are received. According to Tengku Azmil, the A380 will serve key long haul destinations such as London and Sydney, the A330 for medium haul markets while the B737-800 will be used to strengthen the carrier's domestic and regional routes. Airbus senior vice president Thomas Friedberger said Malaysia Airlines will benefit from the more fuel-efficient aircraft with lower operating costs. On the fund raising, Tengku Azmil said it was ' timely' to do so as the capital market conditions are improving. The rights shares, to be priced at 1.60 ringgit each, will be offered on an one-for- one basis. 'We expect the listing of the rights issue to be in early March 2010,' he said. 'We are investing in the future. We are looking for funding for the replacement of our fleet. This is the best time to order the new aircraft as we are anticipating recovery,' he added. Analyst Khairi Mirza expressed optimism that the rights issue will be well-received. 'It will be well taken up. Airlines perform in a peculiar way. When the economy rebounds, the airlines will outperform the economy,' the analyst with Maybank Investment Bank told AFP. Malaysia Airlines' plan to woo investors comes as the aviation industry is facing a turbulent year with yields remaining under pressure. The carrier fell back into the red in the third quarter, blaming losses on its fuel-hedging positions. In the three months to September, the airline posted a net loss of 299.6 million ringgit com- pared with a net profit of 38.1 million ringgit a year earlier. Tengku Azmil also said Airbus will pay 'in excess of 330 million ringgit' for the delay in the delivery of the carrier's first A380 superjumbo aircraft by eight months to August 2011 instead of January 2011. Six of the aircraft were initially supposed to be delivered from January 2007.

Bangladeshi central bank fixed the service charges

Bangladesh Bank has fixed the rate of fees, charged by commercial banks to their clients for different services. In a circular on Tuesday, the central bank fixed fees of about 20 types of services, including letters of credit and saving deposits to protect the interest of depositors and investors. This is for the first time the central bank intervened into the matter as the service charges of 40 commercial banks of the country varied widely. In some cases, importers, exporters, depositors and remittance senders are forced to pay additional and higher than usual charges. Business bodies have long been demanding for rationalisation of charges. According to the central bank circular, the fixed charges will come into force from January 1 next year. The commercial banks are advised to acknowledge the central bank about their rates of service charges half yearly. They are also asked to post rate of service charges on the banks' websites. Following are rate of charges: Current account half yearly charge- Tk 500, Saving account half yearly charge-Tk 300, Balance certificate-Tk 200, Current account closer fees-Tk 300, Saving account closer fees-Tk 200, Three-month commission for opening of Site LCs- 0.40 per cent, Three-month commission for deferred LCs- 0.50 per cent, Three-month commission for 100 per cent cash LCs-0.25 per cent, There-month commission for back-to-back LCs-0.40 per cent. LCs advising, amendment and transfer charge Tk 750, Three-month commission for LCs acceptance 0.40 per cent, LCs confirmation charge-0.20 per cent, Export bill negotiation fees and export bill collection fees-0.15 per cent, Issuance of certificates for back-to-back LCs, CNF and export bills- Tk 500, BO account certificate.

Beijing city pass 4m cars

Mao Chunchun and her husband stand in the sprawling Yayuncun Auto Market on the outskirts of Beijing eyeing Hyundai sports utility vehicles on offer for as much as 250 ,000 yuan (36 ,600 dollars). The couple are hunting for their third car just as Beijing traffic hits a new milestone with four million registered vehicles, according to state media. The spiralling number of cars on the roads of China's sprawling capital are a sign both of the increasing affluence of the city's middle class -- and the challenge the government faces in terms of reducing toxic air pollution. "I am going to sell (one of my cars) and buy a new one," Mao, 26 , told AFP. "I can't own too many at the same time. Isn't it bad for the environment?" The number of registered vehicles in Beijing -- well known for its traffic jams and poor air quality -- topped four million this week, state Xinhua news agency reported late Friday, citing the municipal government. The four million mark means a quarter of the 16 million permanent residents in the city has a car. As a taxi driver for the past five years, Qiu Haitao is used to being stuck in traffic and doing battle with novice drivers. "From Monday to Friday it is like this," Qiu told AFP, pointing at dozens of cars blocking a major intersection. "There are more cars on the road and at the same time new drivers are increasing so there are more minor accidents." And the congestion will only get worse, with around 2 ,000 new cars sold daily in the increasingly wealthy city. "Compared with other metropolises in the world, the growth in the number of vehicles in Beijing is dramatic," Guo Jifu, researcher with the Beijing Municipal Communication Research Centre, told Xinhua news agency. It took Beijing 48 years for the number of vehicles on its streets to increase from 2 ,300 in 1949 to the first one million in 1997. It took six and a half years to register the second million, Xinhua said, and the pace of growth has continued to accelerate. Greenpeace China said the government needed to "urgently develop a comprehensive vision for a sustainable transportation future". "Cars are a dominant cause of the severe air pollution and traffic congestion in Beijing and other major cities in China," said Liu Shuang, the group's climate and energy campaigner. Last year, government vehicles and all private automobiles were banned from Beijing's roads for one day each week, depending on their licence plate number, in measures aimed at easing congestion and curbing emissions. But some drivers complain that the restrictions have only exacerbated the problem by encouraging people to buy another car. "Many rich people are buying a second car because of the rule," one unnamed driver told state media last week. "It is just very inconvenient not to drive on certain days of the week." Beijing's air is among the most polluted in the world, and the problem is getting worse amid high demand for private vehicles from its increasingly affluent residents, who shun taking the underground rail and buses. "It is more convenient than public transport and I can take my family for excursions," said Mao, who has two children. China's total car sales outstripped those of the United States for the first time in January to make the Asian giant the world's biggest auto market, helped by government efforts to stimulate domestic consumption. While people living in Beijing's outer suburbs with limited public transport need a car, many others buy a vehicle simply to show off to their friends, said Qiu. "Owning a car is a symbol of your social status," he said. "I like cars. If I had the money I would buy one."

Bangladeshi Jet Airways introduces direct flight to Dubai

Jet Airways introduces new flights to connect Dhaka to Mumbai from today, the Indian airline said in a statement. The new direct flights to Mumbai will initially operate six days a week, with no flights on Tuesdays. It will run daily flights from March 29. The airline currently flies daily from Dhaka to Delhi and Kolkata. Nikos Kardassis, acting chief executive officer of Jet Airways, said: "The launch of our new Mumbai-Dhaka service will connect Dhaka to the world, via Mumbai, and further enhance air connectivity on the busy India-Bangladesh route. " Jet Airways currently operates a fleet of 88 aircraft, which includes 10 Boeing 777-300 ER aircraft, 12 Airbus A 330-200 s, 52 next generation Boeing 737-700 /800 /900 aircraft and 14 modern ATR 72-500 turboprop aircraft.

Spice mobile brings 4 handset in Bangladesh

True Distributions Ltd introduced a series of Spice mobile handsets in Dhaka yesterday, looking to grab a share of the vibrant cellphone market. Kunal Ahooja, chief executive officer of Spice Mobiles Ltd, part of Indian multinational company Spice Corp, said the market share of Spice mobiles is increasing rapidly in India as the handsets have some "consumer-friendly special" features and devices. Speaking at the launch of the handsets at Radisson Water Garden Hotel, Ahooja said the company launched its mobiles in Nepal last year and Bangladesh is the third country for the Spice brand. Inspired by rising demand for its products, Spice Corp, a company worth $1.4 billion, plans to expand its operations in other neighbouring countries soon. Four types of Spice handsets have been launched: Spice M 5252 , Spice X-1 , Spice D88- GOLD and Spice S-940 with prices ranging between Tk 2 ,000 and Tk 10 ,000. Speaking as the chief guest at the launching ceremony, Md Mahboob Ahmed, secretary of Bangladesh Telecommunication Regulatory Commission (BTRC), said Bangladesh is a "very good market" for operators as teledensity in increasing here. In his speech, Mehboob Chowdhury, chairman of South Asian Mobile Forum, said: "A greater cooperation is needed among handset makers and operators in the region." Ghalib Ahmed Ansari, CEO of True Distributions, said: "We hope Spice will bring greater value for money to subscribers in Bangladesh."

Thailand hope 15m tourists in 2010

Thailand said Tuesday it expects a rise of up to ten percent in the number of tourists travelling to the kingdom next year, after political turmoil contributed to a drop in visitors in 2009. "There will be 15.0 to 15.5 million tourists," the tourism and sports ministry said in a statement on projections for 2010. It said the industry would campaign worldwide to promote Thailand as a holiday destination, with the priority of attracting more visitors from South and Southeast Asia, France and Britain. "The tourism industry will improve if there are no major political incidents or other kind of threats," the statement added.

Shanghai IPOs value will be triple in 2010

The value of initial public offerings in Shanghai is forecast to more than triple in 2010 , reflecting the strong rebound in the Chinese economy, global accounting firm Ernst and Young said. Chinese companies are expected to raise 380 billion yuan (55.7 billion dollars) on the Shanghai Stock Exchange next year, compared with an estimated 118 billion yuan this year, Ernst and Young said in a report Monday. That would place Shanghai ahead of Hong Kong, where companies are expected to raise a record 370 billion Hong Kong dollars (47.7 billion dollars) in 2010 compared with 246 billion Hong Kong dollars this year. "With the economy and the capital markets becoming more stable, coupled with a strong IPO pipeline and market liquidity, we forecast 2010 IPO activities in the Chinese mainland will continue to be strong," said Terence Ho, strategic growth markets leader for Ernst and Young.

Citigroup hacked by a hacker FBI said

The FBI is investigating a hacker attack on Citigroup Inc that led to the theft of tens of millions of dollars, The Wall Street Journal reported Tuesday. Citing anonymous government officials, the Journal reported that the hackers were connected to a Russian cyber gang. Two other computer systems, at least one of connected to a US government agency, were also attacked. Citigroup denied the report. "We had no breach of the system and there were no losses, no customer losses, no bank losses," said Joe Petro, managing director of Citigroup's Security and Investigative services. "Any allegation that the FBI is working a case at Citigroup involving tens of millions of losses is just not true." The Journal reported that the attack on Citigroup's Citibank subsidiary was detected over the summer, although it may have occurred up to one year earlier. The FBI, the National Security Agency, the Homeland Security Department and Citigroup worked together to investigate the attack.

Summit communications ltd NTTN licence

Summit Communications Ltd (SCL) was granted a licence for the Nationwide Telecommunication Transmission Network (NTTN) yesterday. SCL is an ancillary of Summit Group, known for its contributions in development of the power and port sectors. The licence gives SCL an opportunity to expand its mission to strengthen the telecommunications backbone of Bangladesh by contributing to the development of the fibre optic network across the country. It authorises SCL to develop, build, own, operate, maintain and provide fibre optic-based NTTN services to Access Network Service (ANS), Licensed Telecommunication Operators and other authorised users. BTRC Chairman Zia Ahmed said Summit's entry to the telecom industry would help the government ensure proper telecom services and implement its pledge to make a Digital Bangladesh. The Tk 3 crore licence fee paid by SCL comes with an obligation to provide 100 percent NTTN coverage to all the upazila headquarters in 10 years. Summit Group Chairman Muhammed Aziz Khan said historically Bangladesh could not participate in the industrial revolution and has fallen behind only to be an underdeveloped country. "The communication revolution, currently underway in the world, provides immense opportunity to rectify the historical wealth divide," he added.