The New Nation - Internet Edition

Staff Reporter

In case of any attack on Iran by the USA over nuclear programme, the world's oil price will run upwards at a hurricane speed, jeopardizing the world economy because the oil crisis will help abnormally lifting of prices of every commodity world wide, observes opine. However, they say that it is unlikely as Iran is the second largest oil producer country after Saudi Arabia.

Iran produces 40 lakh barrels of oil per day and has a reserve of 112 billion barrels, 11 percent of the world's total reserve. Iran exports 25 lakh barrels of oil every day of which Greece is the largest importer, 24 percent. Turkey imports 22 pc, Belgium 14 pc, Italy 11 pc, Japan 10 pc, France 7 pc and China 4 pc. One estimate claims that China is going to be the largest oil consumer in the world very shortly and it may gear up the present price level.

In case of any invasion, Iran, will surely block the Strait of Hormuz which controls 80 percent of the world oil navigation, transmitting an warning to all concerned that the world economy will be in jeopardy. Iran has meanwhile built powerful Armed Forces and has also been able to recover the losses of the nine years Gulf War triggered by late Saddam Hussain, Ex. President of Iraq, hanged to death by the US backed Baghdad Government for murdering own people sometimes during the eighties. There is neither ethnic crisis nor religious conflict within the country. The whole nation will stand in one in their own interest and will vow to defend the territory till death. So, the USA will make a mistake if the hawks within the US Government provoke to take an imprudent decision.

The oil price is already hovering 100 dollar per barrel, which has forced the developing nations to cut development plans to meet the extra oil cost. There is no doubt that the oil price will sharply increase at an incredible rate if Iran is invaded for nothing and the countries like Bangladesh will be in great troubles. It is true that the USA will face a little problem because the country has a reserve of 23 billion barrels, just two pc, and produces 6 lakh barrels per day, interestingly far short of annual demand.

Saudi Arabia is the world's largest oil producer with 80 lakh barrels per day and has a reserve of about 260 billion barrels, 24 percent of the world's total reserve. The UAE has a reserve of 99 billion barrels, nine pc, Kuwait 95 b barrel, nearly nine pc, and Iraq 90 b barrel. Kuwait and Iraq each produces 20 lakh barrels.

Observers believe that the main reason behind invasion of Iraq was oil. The whole country is now under US control and losing oil benefits. However, the matter will not be easy so far Iran is concerned. Still, the peace loving people of the world there will be no more Gulf War.

AFP, New York

The dollar fell on Friday as a disappointing US payrolls survey highlighted soft economic conditions that boosts the risk of recession and further rate cuts by the Federal Reserve.

At 2200 GMT, the euro edged higher to 1.4765 dollars from 1.4746 dollars in New York late yesterday .

The dollar fell to 108.63 yen from 109.30 yen late Thursday.

The data from the US Labor Department on Friday showed that only 18,000 new jobs were created in December, well below the 70,000 rise expected by analysts.

Further bad news emerged with the news that the unemployment rate, taken from a separate survey of households, jumped to 5.0 percent in December, the highest rate since November 2005 and higher than the 4.8 expected by economists.

The markets interpreted the data as increasing the likelihood that the Fed would continue to cut interest rates this year in order to avoid a recession.

"This data raises the probability of the Fed lowering rates by 50 basis points at their next meeting on January 30," said Hilary Love at PNC Bank.

The dollar managed to claw back some losses against the euro, to the surprise of some analysts.

"I'm suprised that the euro hasn't managed 1.49 dollars this week," said John Kicklighter at Forex Capital Markets.

"We have seen unusual volatility thanks to the unusual liquidity conditions and traders putting trades back on their books for the new year."

Other data on Friday helped stem the selling tide, helping the US currency to move off its lows.

The non-manufacturing Institute of Supply Management (ISM) index fell to 53.9 in December from 54.1 in the previous month and a sliver above the market consensus for 53.8.

AFP, London

Europe's main stock markets closed sharply lower on Friday after disappointing data in the United States sparked concern about slowing growth and the prospect of recession in the world's biggest economy.

In London the FTSE 100 index lost 2.02 percent to finish at 6,348.50 points, in Paris the CAC 40 fell 1.79 percent to 5,446.79 while in Frankfurt the Dax lost 1.26 percent to end the day at 7,808.69.

"Any hopes of the FTSE finishing the week above the key 6,500 level have seemingly been dashed with some far-worse-than- expected payroll data out of the US," said Jimmy Yates, a dealer at CMC Markets.

"Once again as the week draws to a close the prospect of a global recession is going to be dominating the thoughts of many."

The DJ Euro Stoxx 50 index of eurozone shares fell 1.45 percent to 4,270.53 points.

The European single currency fell to 1.4773 dollars.

US stocks plunged yesterday after the Labor Department said the US economy gained 18,000 nonfarm jobs in December as the unemployment rate rose to 5.0 percent.

The reading overturned market expectations of a 70,000 jobs increase and a 4.8 percent jobless rate, up from 4.7 percent in November.

The report showed the weakest job creation since 2003.

The Dow Jones Industrial Average tumbled 1.96 percent to close at 12,800.18 and the tech-heavy Nasdaq composite shed 2.46 percent to 2,504.65.

The broad-market Standard & Poor's 500 index lost 2.46 percent at 1,411.63.

Some analysts said the surprisingly weak labour report could lead the Federal Reserve to lower interest rates again, after a combined one percentage point reduction since September.

Japanese share prices slumped 4.0 percent yesterday, hitting the lowest level in 17 months as investors fretted about the health of the US economy and a surge in crude oil prices, dealers said.

They said that a stronger yen also rattled the Tokyo market on its first trading session of 2008 because of the negative impact on exporter earnings.

Back in Europe, in Paris shares in Renault lost 7.58 percent to 86.45 euros, closing at their lowest close since last March after Nissan, of which Renault owns 44 percent, reported that December sales fell 2.4 percent.

“Safety is always our highest priority and we even go one step ahead offering time for regular maintenance reducing our flights which are our main source of earnings”, this is what the philosophy of better customer service practiced by United Airways BD Ltd, the new entrant in the aviation industry of Bangladesh, as quoted by their spokesman.

United Airways started its operation in the domestic route in Bangladesh with one dash 8-100 aircraft on the 10th of July 2007 and has carried approximately 35,000 passengers operating 1600 flights.

As a part of its of its commitment to safety, having completed its first six months of operation, Untied Airways will now conduct a heavy maintenance and will, therefore, have no operation on 6th and 7th of January 2008. The Airline will resume its regular operation on the 8th of January and will operate its daily there flights to Chittagong, two flights to Sylhet, one flight to Jessore and three weekly flights to Cox's Bazar.

United Airways will have their second aircraft inducted in the fleet before the end of this month and will announce 5 flights to Chittagong, 3 daily flights to Sylhet, 2 daily flights to Jessore, once daily to Cox's Bazar, Barisal and Rajshahi soon.

Standard Chartered Bank (SCB) recently opened Trade Support Centre (TSC) at Chittagong Export Processing Zone (CEPZ) in Chittagong. The offshore centre of Standard Chartered Bank will cater to the trade financing requirement of the EPZ business community and will play a positive role in the overall growth of the export sector of the country and would attract FDls. This initiative reflects SCB's continuous efforts in bringing the best banking services for business community.

Standard Chartered Bank the first bank in Bangladesh which has introduced Off Shore Banking facilities in Dhaka Export Processing Zone in 1994.

Brig. General Ashraf Abdullah Yussuf, afwc, psc, Executive Chairman, BEPZA formally inaugurated the support centre at CEPZ in CTG. Osman Morad, Chief Executive Officer of Standard Chartered Bank, Ahmed Ali Shah, Managing Director & Head of Client Relationships, Mahfuzur Rahman, Director & Head of Commodity Corporates and Faisal Rahman, Director & Head of Global Corporates of Standard Chartered Bank were also present at the inaugural ceremony with other senior officials of the bank.

Jamuna Bank Limited (JBL) has opened its 33rd branch at Jamgora, Ashulia, Dhaka. AI-Haj Nur Mohammed, Chairman of the Board of Directors of JBL inaugurated the Branch.

Md. Sirajul Islam Varosa, Vice Chairman of the Board of Directors of JBL, Md.Belal Hossain Director of JBL, Mohammed Lakiotullah, Managing Director, Md. Motior Rahman, Additional Managing Director, and Anwar Hossain, Company Secretary, were also present on the occasion. While Speaking the chairman specially emphasised on the role of private commercial banks in the economic development of Bangladesh. He further added that JBL has a wide vision to become a leading banking institution of the country. He indicated that the bank provides one-stop services in all of its branches with On-line banking facility.

Mohammed Lakiotullah, Managing Director, welcomed all the guests and mentioned that JBL is a fast growing people-oriented bank in Bangladesh. He hoped that the branch would surely serve its customers with utmost satisfaction by applying modern banking technology. He specially stressed on giving credit to small and medium enterprises with tailor-made services.

On the occasion of the new teachers' joining, an Introductory and View Exchange Programme took place in the Lalmatia Office of Just International School and College (JISC) on Tuesday last. Among others, SM Rasheduzzaman, Chairman of the School, Flt. Lt. (Rtd) M. Mizanur Rahman, Principal, Prof. M A Zaher, Director, Administration, Md. Raisuddin Ahmed, Director, Finance, MA Mannan, Assistant Manager, Bazlur Rahman Khan, Admin istrative Officer and the newly appointed teachers spoke in the meeting. The speakers put emphasis on the importance of school-based modern education. They also spoke in favour of moral value-oriented education. The Chairman explained the prevailing education-related situation in the country and said that it was not possible to drive out corruption and other vices from the society without value-oriented true education. He added, "The real education aims at developing body, mind and soul harmoniously." The new teachers shared their feelings and ideas in the meeting and expressed their full commitment to provide proper education with a view to building a bright future of the nation.