Obama's new banking plan

President Barack Obama has said Wall Street must repay $117 bn (£72 bn) to taxpayers and criticised banks for "massive profits and obscene bonuses". The tax is to recoup money US taxpayers are expected to lose from bailing out the banks during the financial crisis. "My commitment is to recover every single dime the American people are owed," the president said. The move follows populist anger at banks, seen as being responsible for causing the recent economic crisis. Average American "My determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at the very firms who owe their continued existence to the American people," the president said. He said the aim was not to punish Wall Street firms but to stop abuses and excesses from happening again. " It's one more thing dragging on the sector, but it's spread over 10 years, so it's not so consequential. It's petty theft from bank balance sheets " Robert Albertson, chief strategist at Sandler O' Neill The BBC's Michelle Fleury said the president had made clear "in strong language" that the banks must repay the taxpayer, through what is being dubbed a "financial crisis responsibility fee". "It may go some way to quelling the anger of the average American," our correspondent said. The tax would apply only to financial firms with assets of more than $50 bn. There are reckoned to be about 50 of these institutions - although many did not accept any taxpayer assistance and many others have already paid back what the government lent to them. BBC Business editor Robert Peston said that the cost may be passed on to the banks' customers. "The cost of borrowing might go up for companies who borrow from these banks," he said. He said there might also potentially be a "one- off" squeeze on the US economy. 'Drag on sector' In the US, analysts said the fact that the fees levied on banks would be spread out over a decade would diminish their impact. "It throws some sand into the gears," said Robert Albertson, chief strategist at Sandler O'Neill in New York. "It's one more thing dragging on the sector, but it's spread over 10 years, so it's not so consequential. It's petty theft from bank balance sheets." White House economic adviser Lawrence Summers said the proposed fee was structured to give financial firms incentives to avoid excessive leverage. The levy comes ahead of the latest reporting season on Wall Street, with banks expected to report record bonuses. The tax will claw back some of the losses from a $700 bn taxpayer bail-out of American banks known as the Troubled Asset Relief Program ( Tarp). It was drawn up in the midst of the financial crisis in 2008 , following the collapse of US investment bank Lehman Brothers and multi- billion dollar rescue of insurance giant American International Group (AIG). It helped stem the crisis by injecting public capital into the biggest US banks and restoring confidence in the banking system.

US retail sales fall sharply

Sales at US retailers saw an unexpected fall in December, casting uncertainty over the recovery of the US economy. Retail sales fell by 0.3 % compared with November, figures from the US Commerce Department said. Sales of electrical goods and cars saw some of the biggest falls, though core sales - which exclude cars, fuel and building materials - still fell. Concerns over job security are expected to continue to restrict spending, with unemployment still at 10 %. Many economists expect unemployment to keep rising until the middle of the year. December's figures end a tough year for US retailers, with total sales for 2009 down 6.2 % on the previous year. But sales were expected to have been stronger, given the string of retailers reporting positive results for the festive season. Job worries The weaker-than-expected retail figures will add to concerns over the strength of the recovery in the US economy. In December, the US unexpectedly cut a further 85 ,000 jobs after seeing some job creation in November. Economists are still predicting a recovery in 2010 , but warn that it will be slow. "I don't think that portends a new downturn in the economy, but it does serve as a warning that the recovery is going to take some time to put in place here," commented Chris Rupkey, chief financial economist at the Bank of Tokyo- Mitsubishi in New York.

Intel backs in profit

Chip maker Intel has seen fourth quarter profit soar as the personal computer market started shrugging off the effects of the recession. Computer orders were up sharply during the quarter, which was good news for Intel, which dominates the personal computer microchip. Sales climbed 29 % to $10.6 bn (£6.5 bn), beating analysts' outlook of $10.2 bn. Investors look to the chip maker's earnings as a barometer of business and consumer demand in the US economy. 'Positive' Intel is the first major technology company to report its results. Its net income in the three months to 26 December was $2.3 bn , compared with net income of $234 m a year before. "It's definitely positive for the overall tech market," said David Kanter, analyst at Real World Technologies. "Intel to a large extent tells you the health of the PC and computer market and that drives a tremendous amount of other activity including analogue semiconductors, and other people who fit into that ecosystem that are slightly less integral and more of a complement to the PC chip." Chip makers are coming out of the industry's worst downturn in decades and are expected to benefit from increased technology spend by large firms in 2010.

Australian unemployment rate fall

Australian unemployment has fallen to an eight- month low, boosting confidence in the economy. The rate of unemployment fell to 5.5 % in December from 5.6 % in November, the Australian Bureau of Statistics said. The figures came as a surprise to many economists, who had expected a big rise. The fall was driven by a jump in the number of people in part-time work. During the month, 27 , 900 part-time jobs and 7 ,300 full-time jobs were found. "Today's figures provide further evidence of how Australia has outperformed virtually every other advanced economy during the global recession," said Deputy Prime Minister Julia Gillard. Last year, the Australian government warned that the unemployment rate could go as high as 8.5 %. Australia's mining sector is helping to create jobs, with increasing demand from China for iron ore fuelling growth.

Next gereration car

Touch navigational screens, Internet, communications systems: Automakers are ramping up an array of connectivity gizmos to lure consumers into buying next-generation vehicles. Some of the whistles and bells on display at the annual North American Internation Auto Show underway in Detroit were purely cosmetic. GM's Cadillac presented a prototype of its new XTS sedan that sported a dashboard minus buttons or dials. The black screen illuminates once the engine starts and the door handles light up for a few seconds when the car stops. But most of the innovations put a premium on connectivity. Paul Haelterman, vice president of research firm CSM Worldwide, predicted that five years from now 45 percent of the new vehicles sold in North America would be connected to the Internet, and nearly all of the luxury models. "Having the car connected with the exterior world is a necessity, " said Henning Schlieker, a technology marketing executive at BMW North America, told AFP. The German luxury car maker already has begun to equip all its BMW 5 Series, 6 Series and 7 Series cars sold in the United States with BMW Assist, a feature launched a year and a half ago. The BMW Assist allows drivers to locate gasoline stations and their current prices, check weather forecasts and traffic conditions, access navigational tools such as Google Maps and Mapquest, and keep tabs on financial data. The Cadillac XTS offers two separate back-seat screens, each outfitted with its own Internet connection and DVD reader. Ford is launching its MyFord Touch system, which will be introduced first in the upscale Lincoln nameplate under the name "MyLincoln Touch" and then integrated into the Ford Focus in 2012.

Kuwait take 4 year development plan

Kuwait's parliament gave its initial approval on Thursday to a four-year 129- billion-dollar (89- billion-euro) economic development plan. The plan, the first since 1986 , includes such mega projects as parts of a new business hub called Silk City and estimated to cost 77 billion dollars, a major container harbour and a 25- kilometre ( 16- mile) causeway. It also includes a railway and metro system, new cities and additional spending on infrastructure, particularly in the health and education sectors. The ultimate goal of the plan, which extends from the current fiscal year to 2013 /2014 , is to turn Kuwait into a regional trade and financial centre, said deputy premier for economic affairs Sheikh Ahmad Fahad al-Sabah.

Chittagong Port will handle more capacity

Chittagong Port is capable of handling additional load if it opens up to India and other neighbouring countries, said officials yesterday. But they suggested widening hinterland and developing infrastructure for goods transportation in and out of the port. If the port is opened to the neighbouring countries, with its existing resources, it will be able to bear the additional pressure these countries may generate, said the officials of Chittagong Port Authority (CPA). "CPA is ready to develop infrastructure and other facilities, if the government gives the green light to the port to open up to India and Nepal and Bhutan as well, " said Nazrul Islam, the acting chairman of CPA. The port's storage capacity stands at 31 ,000 TEUs (twenty equivalent units). Around 11 lakh TEU containers were handled last year. With 8.5 percent annual growth, the port's two- thirds capacity is now being utilised, the officials said, pointing also to underutilisation of berths. If the three neighbours use the port, additional load is unlikely to cross 1 lakh TEUs, the officials added. Meanwhile, a feasibility study carried out for the proposed deep-sea port, due in 2020 , shows that the use of the port by seven northeast Indian states (collectively known as Seven Sisters) along with Nepal, Bhutan and Kunming province of China could generate an additional container handling of around 1 lakh TEUs a year. In a recent letter, the CPA informed the parliamentary standing committee on finance ministry that the port with its existing resources can support additional load from the Seven Sisters up to 2015. Bangladesh's annual handling of containers may rise up to 20 lakh TEUs by 2015 and 25 lakh TEUs by 2020 , according to the CPA. "With installation of equipment, development of back-up facilities at NCT and implementation of proposed Karnaphuli Container Terminal (KCT), the port's handling capacity may rise to 40 lakh TEUs by that time," said CPA Secretary Syed Farhaduddin Ahmed. In this context the CPA official said the Inland Container Terminal (ICT) at Pangaon near Dhaka, construction of which is now progressing fast, will contribute a lot to container transportation through waterway and ease pressure on roads. Acting Chairman Nazrul Islam has also hoped that implementation of the projects such as NCT back- up facility and capital dredging of the Karnaphuli river will significantly raise the port capacity.

Bangladesh Biman will two aircraft next year

Two new Boeing aircraft will join Biman fleet next year, as most of the planes of the national carrier are more than 15 years old and reaching the end of their economic life. A meeting of the cabinet committee on economic affairs yesterday approved a proposal for giving Biman Bangladesh Airlines the sovereign guarantee to take loans from local banks for purchasing the airliners. Finance Minister AMA Muhith chaired the meeting. In line with an agreement with US-based Boeing Company, an aircraft will join Biman fleet in November 2011 , while another plane will be added in December the same year, Civil Aviation and Tourism Secretary Shafique Alam Mehedi told The Daily Star yesterday. A syndicate of nine local banks will give Biman a loan of $ 114.75 million for purchasing the two aircraft from Boeing. This is for the first time after the country's independence that local banks are giving such a big amount of loan to a government entity in foreign currency. The national flag carrier is taking the loan from the local banks' syndicate led by Eastern Bank Ltd at a low interest rate of 4.57 percent. The civil aviation and tourism ministry had earlier sought approval of the cabinet committee on economic affairs for waiving the conditions of Public Procurement Act for the pre-delivery payment to Boeing. The ministry also sought waiver of the suppliers' credit rules for taking commercial loans in foreign currency. Biman signed the agreement with Boeing in 2008 to purchase 10 aircraft for $1.31 billion to strengthen its fleet. In line with the agreement, Biman has already paid Boeing $11.96 million for buying the planes. Boeing is supposed to supply the two aircraft in 2011 for $424 million. The syndicate of the local banks also includes BRAC Bank, National Bank, IFIC Bank, The City Bank, AB Bank, Prime Bank, Premier Bank and Citibank NA. Biman has eight aircraft in its fleet -- four DC- s, two Airbus and two F-28 s. Of those, two have been taken on lease.

Bangladeshi Sona Masjid land port

The government earned Tk 89.46 crore in revenue through Sonamasjid land port, the country's second largest one, in the first six months of the current fiscal ( 2009-2010) against the target of Tk 170.89 crore. Less imports and other problems caused such decline in the revenue income. "We experienced a drop in imports during July- December," said Fazlul Haque, assistant commissioner of Sonamasjid Customs. However, the port surpassed the 2008-09 revenue target by earning Tk 230. 80 crore. Sonamasjid, which started as a LC station in 1991 , was upgraded to a full-fledged land port in 2006 under private management. Panama Port Link Limited is the company that has been assigned for its handling for a span of 25 years. Meanwhile, some businessmen alleged that following pre-inspection of the imported items and price fixing by India, the port customs officials force the importers to bear the burden of extra tariff, which ultimately harmed their business interest. "Now, many importers opted for using Hili land port of Dinajpur to do business", a trader said. Recently, in protest of extortion by Sramik Samonnoy Committee, a workers organisation, clearing and forwarding agents at Sonamasjid enforced a three-day strike. There are allegations that these workers used to slap tolls on each of the trucks laden with goods imported from India. Pointing their fingers at internal conflicts among owners of the private leasing company, some businessmen said such feud disrupted the import- export trade. A businessman preferring anonymity said a local Awami League leader now controls the port activities which also led to their loss of interest in trading through Sonamasjid. Ruhul Amin, former president of Sonamasjid land port C&F agents association, said earlier 200-250 trucks from the neighbouring country entered Sonamasjid every day on an average, but now the number of trucks does not cross 70. Shamiul Haque Liton, the incumbent president, suggesting addressing the problems the land port now faces in the interest of tapping Bangladesh's bright prospect of border trade with India.

Kuwait and France in neuclear deal

Kuwait and France signed on Thursday a cooperation agreement for the peaceful use of nuclear energy, officials said. The oil-rich emirate had announced plans to set up a civilian nuclear project mainly to produce power and also established a national committee for the peaceful use of nuclear energy. "This is the first step of cooperation and to share experience in the nuclear field," the head of France's Atomic Energy Commission, Bernard Bigot, told reporters during a visit to parliament. "It is to help Kuwait (develop) nuclear energy ... and to assist it to decide for its future needs," Bigot said. The secretary general of Kuwait's national committee on nuclear energy Ahmad Bishara said the agreement "does not stipulate the building of a nuclear power plant at this stage." But he added that Kuwait has "the will, the resources and the need" to do so. The 20- year agreement allows the "supply of nuclear material, equipment and facilities" and is subject to international treaties.

Indian market down a bit

India's wholesale inflation rose sharply in December, data showed Thursday, bolstering market expectations of monetary tightening by the central bank when it meets later this month. The wholesale price index, India's main gauge of inflationary trends, jumped to 7.31 percent year on year in December due to particularly big rises in the cost of potatoes and sugar, provisional data from the commerce ministry showed. The latest reading follows a string of impressive data that has shown the Indian economy bouncing back rapidly from a slowdown brought on by the global financial crisis and recessions in developed countries. The wholesale inflation rate had climbed by a larger-than-expected 4.78 percent in November from a year earlier after rising by 1.34 percent in October. Analysts say that when the Reserve Bank of India meets on January 29 it will likely drain some of the liquidity that was pumped into the financial system last year to encourage lending. "Although the key risk to inflation is from shortages of rice, sugar and pulses, it (the headline rate) would feed in to general inflationary expectations sooner or later," said Rupa Rege Nitsure, chief economist at Bank of Baroda.

Wall street lead asian share

Renewed optimism over an improving global economic picture helped most Asian shares rise Thursday following a stronger lead from Wall Street, but fears lingered over China's monetary policy. Hong Kong ended the day 31.65 points off at 21 , 716.95. Tokyo closed up 1.61 percent as troubled carrier Japan Airlines (JAL) pulled out of a tailspin after several days of heavy losses. Seoul closed 0.86 percent higher, with the KOSPI up 14.36 points at 1 , 685.77. Singapore closed 0.73 percent, or 21.14 points, higher at 2 , 909.52. Taipei closed up 93.42 points, or 1.14 percent, at 8 , 289.98. Indonesia gained 0.47 percent, or 12.31 points, to 2 , 645.18. Kuala Lumpur rose 5.20 points, or 0.40 percent, to close at 1 , 294.71. Bangkok added 0.36 percent, or 2.68 points, to close at 749.42. Manila closed 0.81 percent, or 25.21 points, higher at 3 , 121.91. Wellington ended flat, with rises in Sydney supporting an otherwise lacklustre market. Mumbai rose 0.43 percent, or 75.07 points, to 17 , 584.87. India's largest private firm Reliance Industries rose 2.99 percent to 1 , 120.85 while engineering giant Bharat Heavy Electricals Ltd rose 1.89 percent to 2 , 376.15. The country's largest software exporter TCS fell 0.77 percent to 782.2 a day before it releases third-quarter earnings.