The New Nation - Internet Edition

Staff Reporter

The poor are concerned with cost of living, and not with gross domestic programme (GDP), gross national income (GNI), inward remittances, export and import position and government's effort to clean politics from corruptions. But they get frightened when they do not get fertiliser and diesel in time, electricity remains off for hours together, government's subsidy in agriculture do not reach the genuine farmers and flood and natural catastrophe damage standing crops and prices of essentials increase beyond economics index.

Daily income of a day labourer being taka below 100, it is really hard for him to meet the rising expenses if he has a family of four. On Friday last, bean was selling at taka 80 per kilo at Khilgaon Taltola Market, tomato at taka 70, basil at taka 30 and calery at taka 40 only.

The same day at a roadside shop of South Goran, brinjal was selling at taka 36, purbal at taka at taka 30, potato at taka 22 and cucumber at taka 30 only.

The most surprising matter is that green pepper has been selling over taka 100 per kilo since the influx of the back-t0-back floods in August. "Never anyone had such bitter experience before of the selling of green pepper at such an exorbitant price, said Abdullah Akber (not real name), a resident of Shahjahanpur, Dhaka.

Meanwhile, river and sea shad price slightly shows an upward trend though it is still below the level of the price before ban on export to India in July. On Friday last at Khilgaon Taltola Market, a hilsha weighing 1000 grams was selling at taka 250 while climbing fish at taka 200, lancer fish (small size) at taka 350, barbal at taka 300, imported salmom at taka 130, sheat fish at taka 180, golsha at taka 210 and cultured pangas 50 only. However, a poor consumer has an opportunity to buy mola and kachki by bunch at taka 20 to 25 but he stares only at hilsha, sheat, salmon, carp, climbing fish, lancer, barbal and the like.

Though the opening of letters of credit for import of rice has increased, the coarse rice increases by taka one per kilo. It now sells at taka 24 to 26 per kilo. Miniket still sells at taka 32 to 33 and nazirail variety between taka 30 and 35 only. In contrast, the course flour price is elevated to taka 38 per kilo to the dismay of consumers.

Citi Bank NA will provide Off-Shore banking services in Chittagong Export Processing Zone to facilitate the investors.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and Citi Bank NA in BEPZA Complex, Dhaka on Thursday.

General Manager (Investment Promotion) AZM Azizur Rahman of BEPZA and Khawja Muhammad Masum Billah, Senior Vice President and Senior Country Operations Officer of Citi Bank NA signed the lease agreement of behalf of their respective organisations.

Citi Bank NA branch will be located side the zone area from which investors will get Off-Shore Banking Facilities including all other financial and commercial services easier and faster.

Brig. General Ashraf Abdullah Yussuf, Executive Chairman, Member (Engineering) Md. Farhad Uddin of BEPZA, Mamun Rashid, Managing Director and Citi Country Officer of Citi Bank N.A. and Abrar A. Anwar, Global Commercial Bank of Bangladesh, Manager (Investment Promotion) Md. Tanvir Hossain and Assistant Manager (Public Relation) Khadiza Parvin of BEPZA were also present in the signing ceremony.

AFP, United Nations

The UN special rapporteur on the Right to Food on Friday sought to drum up support for his proposal for a five-year UN moratorium on converting arable land for food to the production of biofuels.

"It's a crime against humanity" to use land destined for food output for production of biofuels, Jean Ziegler of Switzerland, told reporters here.

He spelled out his plan for a UN moratorium that "would prohibit for five years this substitution." He noted that with rapid advances in scientific research, "in five years it will be possible to make biofuels and biodiesel from agricultural wastes."

Addressing a General Assembly panel Thursday, Ziegler, who is based in Geneva said he was "gravely concerned that biofuels will bring (more) hunger in their wake."

"The sudden, ill-conceived dash to convert food-such as maize, wheat, sugar and palm oil - into fuels is a recipe for disaster," he noted. "There are serious risks of creating a battle between food and fuel that will leave the poor and hungry in developing countries at the mercy of rapidly rising prices for food, land and water."

AP, New York

Wall Street closed an erratic week with strong gains on Friday as strong earnings from Microsoft Corp. and an optimistic outlook from Countrywide Financial Corp. outweighed investor concerns about the economy.

The Dow Jones industrial average rose 134.78, or 0.99 percent, to 13,806.70. Broader stock indicators also gained. The Standard & Poor's 500 index rose 20.88, or 1.38 percent, to 1,535.28, and the technology-dominated Nasdaq composite index advanced 53.33, or 1.94 percent, to 2,804.19.

Housing market news over the week was glum; oil prices surged to record highs. And though corporate earnings have so far been mixed, investors have been heartened by good news for individual companies.

Friday's report from Countrywide that it expects to return to profitability soon, despite a big third-quarter loss, gave investors hope that the problems in the housing market are contained and that U.S. consumers still have spending power. Thursday night's strong report from Microsoft inspired strong buying throughout the technology sector.

"The market is higher for just two reasons - Countrywide and Microsoft," said Peter Boockvar, equity strategist at Miller Tabak. "You take those two stocks out of the equation and there is no reason for the market to be higher. Microsoft single-handedly is driving the Nasdaq."

Mixed profit reports and data showing economic weakness has made investors uncertain whether the market is overvalued. However, earnings will be pushed aside next week as the main focus of investor attention - and taking it place will be the Federal Reserve's rate-setting meeting on Tuesday and Wednesday.

For the week, the Dow rose 2.11 percent, the Nasdaq was up 2.90 percent, and the S&P 500 jumped 2.31 percent. The gains were welcome after all three indexes posted losses in the previous week.

High oil prices didn't dampen investors' spirits either. After spiking above $92 a barrel in Asian trading overnight, December crude futures rose $1.40 to settle at $91.86 a barrel on the New York Mercantile Exchange.

"Because oil prices are so high, our nation's oil bill has gone up. We're exporting dollars to pay for oil and our counterparties are reinvesting those dollars back in our markets - the so-called petrodollars finding their way back," said Tom McManus, investment strategist with Banc of America Securities.

The level of lead pollution in Dhaka is one of the highest in the world. Contributing to this is the improper disposal of used old batteries which is hazardous, says a press release. Even if the recycling has to be done in an environmentally friendly manner or can pollute and contaminate air that we breathe and water, that we drink. Improper recycling of used batteries leading to lead pollution causes Kidney damage, breathing complications, higher blood pressure, reproductive problems, anaemia, etc. Lead also interferes with normal body functions and nervous system and in extreme cases can cause convulsions, coma or death.

In light of these startling facts the Government has set up a Social Responsibility Ordinance No. 175-Actj2006 dated 6 July 2006 for the safe handling and recycle of used old batteries. In compliance with the ordinance RahimAfroz has set up a programme entitled "Creating Lead Free Environment". banglalink, a leading telecommunications provider in the country, has recently joined this initiative which is a drive to safely recycle used batteries. Rashid Khan, CEO, banglalink and Samir Asaf, Group CEO, RahimAfroz both signed on behalf of their respective companies. Also present for the signing were Ahmed Hamdi Nada, HOD PMO and Supply Chain, Muhammad Ziaur Rahman, Supply Chain & Logistics Manager, Taufiqul Karim Suhrid, Program Interface, Environment and Social Manager from banglalink and Sayeed Hasan, COO, RahimAfroz Batteries Ltd and Kazi Javed Islam, General Manager, Automotive Marketing & International Sales from RahimAfroz.

banglalink joining the initiative with RahimAfroz should stand as an example to other socially conscious aware and responsible individuals, organisation and companies to helping promote and create a safer green environment in the country. This is only one of the recent banglalink programmes for cleaning the environment, such as their ongoing beach cleaning initiative and the observance of International Coastal Cleanup Day earlier this year.

Reuters, New York

Oil prices shot to an all-time high above $92 a barrel on Friday as the tumbling dollar and Nigerian output disruptions helped extend a rally that has lifted prices nearly 30 percent since August.

Worries that supplies may come up short ahead of the Northern Hemisphere winter have fueled the rise, drawing a fresh wave of speculative money from investors. US crude settled up $1.40 at $91.86 a barrel, off the record $92.22 struck during electronic trading earlier.

Oil was closing in on its inflation-adjusted high of $101.70 seen over the course of April 1980, a year after the Iranian revolution and at the start of the Iran-Iraq war. London Brent gained $1.21 to $88.69 a barrel. "Fresh highs are now attracting fresh buying, especially following yesterday's violation of the futures highs just above the $90 level," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

A meeting of the Board of Directors of Islami Bank Bangldesh Limited was held on Thursday, 25 October, 2007 in the Board Room of the bank. Prof. Abu Nasser Muhammad Abduz Zaher, Chairman, Board of Directors of the bank presided over the meeting. Foreign and local directors including Yousif Abdullah Al-Rajhi, Representative of Al-Rajhi Company for Industry and Trade, KSA, Dr. Abdul Hameed Fouad Al-Khateeb, KSA Wasim Ahmed, Representative of Islamic Development Bank, KSA Ahmed Mohammed Thani and Representative of Kuwait Awqaf Public foundation, Kuwait were present in the meeting.

The meeting evaluated the performance of the bank and expressed it's satisfaction over the success & progress achieved so far and took some important business decisions.

AFP, New York

The dollar tumbled to a fresh record low against the euro on Friday as expectations mounted that the Federal Reserve would cut US borrowing costs again next week.

Traders said an expected interest rate cut by the Fed at a policy meeting scheduled for next Wednesday and uncertainty over US economic momentum combined to push the dollar to new lows.

The euro was swapping hands at 1.4391 dollars around 2100 GMT, up from 1.4320 dollars late Thursday.

In earlier trading, the euro had struck 1.4393 dollars, marking its highest level since the single currency's creation in 1999. The European currency has risen over 11 percent against the dollar in the past year. In late New York trade, the dollar was at 1.1639 Swiss francs, down from 1.1656 Swiss francs late Thursday.

The pound was at 2.0522 dollars, up from 2.0511, while the dollar fetched 114.24 yen, up from 114.14 yen a day earlier.

"The world angst over the depreciating US dollar is reaching new highs just as the currency is putting in new all time lows," said Andrew Busch, a currency strategist at BMO Capital Markets.

Worries about the slowing US economy, especially its housing market which has been mired in a downturn since early 2006, are weighing on the US currency.

Higher growth elsewhere and stronger interest rates overseas have also encouraged specualtors to sell off their dollar holdings in favor of currencies like the euro and the British pound.

Many economists expect the Fed to trim its key short-term federal funds interest rate by a quarter of a percentage point next week.

The central bank slashed borrowing costs by half a percentage point on September 18 to 4.75 percent in the face of the housing slump and a credit crunch that is shaking the financial sector.

Oil and gold prices have also surged strongly in recent weeks, putting further pressure on the US economy which imports a majority of its oil.

"With rising commodity prices and weak US indicators, the US economy's slowdown could prompt the beginning of a slowdown in the global economy next year," said Saburo Matsumoto, a chief foreign exchange strategist at Sumitomo Trust Bank.

AFP, Mumbai

Indian share prices are expected to remain volatile next week and will be affected by how hedge funds react to new rules limiting the anonymous purchase of shares by foreign investors, dealers said.

For the week to October 26, the Mumbai stock exchange's benchmark 30-share Sensex index surged 9.58 percent or 1,683.17 points to a record close of 19,243.17.

"The markets were volatile fearing a curb on capital flows but recovered as clarity emerged on the nature of regulation," said a dealer at brokerage Jamnadas Morarjee.

India's stock market regulator, the Securities and Exchange Board of India (SEBI) on Thursday announced new rules to phase out the anonymous buying of shares by foreign investors.

The new regulations primarily concerned participatory notes, which had allowed foreign investors, such as hedge funds, to buy Indian shares without revealing their identity.

The notes are to be phased out within 18 months in the regulator's bid to boost transparency.

The regulator examined the nature of foreign investors in India after the benchmark Sensex had risen 20 percent since the US Federal Reserve cut interest rates by 50 basis points to 4.75 percent on September 18.

Sebi said efforts were being made to clean up the investment environment while encouraging the entry of regulated foreign investors into India. It is believed that some hedge funds, who have pumped in money into Indian equities in recent weeks, may exit the market to avoid regulation. "The P-note fineprint is still being studied. The markets will react in coming days based on the stance which unregulated hedge funds take on making investments in India," said a dealer with a state development bank.

As of Friday's finish, the Sensex was 39.5 percent above last year's close of 13,786.91, led by record overseas fund flows of 17.18 billion dollars.