The New Nation - Internet Edition

US budget deficit soars to $438b

AFP, Washington

The US government's budget deficit ballooned in fiscal 2008 to 438 billion dollars (322 billion euros), or 3.1 percent of GDP, as the economic downturn began to bite, the Congressional Budget Office (CBO) said yesterday.

The estimate compares to the 162 billion dollar shortfall that represented 1.2 percent of GDP in fiscal 2007, said the CBO, which monitors federal spending on behalf of the Senate and House of Representatives. "That is about 31 billion dollars higher than the 407- billion-dollar deficit CBO projected this summer, primarily due to lower-than-projected revenues and higher-than-expected spending for defense and deposit insurance," it said. In its Monthly Budget Review, the CBO said corporate income taxes fell by around 65 billion dollars during fiscal 2008, which ended September 30, a reflection of "weakness in corporate earnings throughout the fiscal year".

Defense spending meanwhile leaped by 11 percent, the biggest jump since 2004, while the Federal Deposit Insurance Corporation paid out 23 billion dollars to cover insured deposits at failed financial institutions.

In July, the CBO's counterpart at the White House, the Office of Management and Budget, said the budget deficit would leap to a record 482 billion dollars, largely due to an emergency economic stimulus and a slowing economy.

Its forecast indicated that the next US president, who will take office in January following the November 4 election, will inherit some tough spending decisions from the very first day in the White House.

Shares rally after intervention

Most European and Asian shares have rallied after investors absorbed news of a co-ordinated interest rate cut.

Banking shares helped to push the UK's FTSE 100 index 1.3% higher by late morning while France's Cac 40 rose 2% and Germany's Dax added 0.5%.

The UK bank rescue package boosted financial shares, with HBOS up 30% and Royal Bank of Scotland adding 15%.

But Japan's Nikkei index closed lower after its prime minister urged more action to boost the country's economy.

The measures proposed by Taro Aso would be on top of a 2 trillion yen ($19.5bn; £11.5bn) stimulus plan already put forward.

More guarantees

As the turbulent week continued, in other developments:

Iceland suspended trading on its OMX Nordic Exchange until Monday, citing "unusual market conditions". Earlier, its largest bank, Kaupthing, became the third financial institution to be taken over by the country's government in the past week.

Ireland extended its guarantee of bank deposits to cover savings in Irish branches of five foreign-owned institutions Northern Ireland's Ulster Bank, British-owned First Active and HBOS, Belgium's IIB Bank and German-owned Postbank.

US Treasury Secretary Henry Paulson warned that some banks will still fail despite the $700bn (£406bn) rescue package to shore up the financial system.

Iceland's largest bank, Kaupthing, became the third financial institution to be taken over by the country's government in the past week.

Dexia shares jumped 25% after France, Belgium and Luxembourg announced they would provide state guarantees for its borrowings.

UK Chancellor Alistair Darling flew to the US to discuss the co-ordinated cutting of interest rates by six central banks.

After trading on Russian stock markets had been suspended following sharp share falls earlier this week, they were again halted - this time after stocks climbed too high after trade resumed.

'False dawns'

Seven central banks on Wednesday cut interest rates in an effort to steady the faltering global economy.

It came after the UK government's announcement of a package of measures aimed at rescuing the banking system.

This package makes available £400bn ($692bn) of fresh money.

There was "an air of cautious optimism" that such measures would have some impact on the financial crisis, said Richard Hunter, head of UK equities at Hargreaves Lansdown stockbrokers.

"Banking shares have been the main beneficiaries of the UK's rescue plan, and the interest rate cuts," he added.

"We've had a few false dawns over the past couple of months and it's too early to call a complete recovery, but there's hope that these measures will get some traction at some point."

More rate cuts

Japan's benchmark Nikkei lost 0.5% or 45.83 points to close at 9,157.5.

Shares had been ahead for most of trading after the Bank of Japan injected two trillion yen into the money markets in an effort to calm fears.

But Mr Aso's call for further action prompted a sell-off.

The Nikkei had suffered its biggest one-day drop in 21 years on Wednesday, with the index shedding nearly 10% of its value.

In Sydney, Australia's main share index fell 1.8%, but Hong Kong's Hang Seng index added 3.3% after its central bank announced a half a percentage point cut to its interest rate, taking it to 2%.

South Korea's stock market climbed after the central bank announced an interest rate cut of a quarter of a percentage point.

Myanmar ministers visit manufacturing facilities of Beximco Pharma

A high level delegation of the government of Myanmar visited the state-of-the-art manufacturing facilities of Beximco Pharmaceuticals Ltd at Tongi, a company statement said on October 8 last.

A high level delegation of the Myanmar government is currently visiting Bangladesh to discuss on bilateral issues and one of the priorities of this official visit is to expand trade between the two countries. As a part of this agenda a high level trade and business delegation visited Beximco Pharma manufacturing plant. BPL is the only pharmaceutical company of Bangladesh, which this delegation visited.

The delegation included U Soe Tha, Minister, Ministry of National Planning and Economic Development, Brig Gen Tin Nating Thein, Minister, Ministry of Commerce, U Win Myint, Chairman of the Union of Myanmar Federation of Chamber of Commerce and Industry and noted business leaders of Myanmar.

Beximco Pharma Chief Executive Officer Nazmul Hassan received the delegates at the premise of the manufacturing facility of BPL.

Hassan then delivered a presentation on the milestone achievements and future prospects of Bangladesh Pharma industry and briefed about the activities of BPL. After visiting the manufacturing facility of BPL the delegates expressed high satisfaction regarding the state-of-the-art facilities and quality control practices of Beximco Pharma and expressed their keen interest in importing more BPL products into Myanmar.

Beximco Pharmaceuticals Ltd is the leading edge pharmaceutical manufacturer and the pioneer pharmaceutical exporter of Bangladesh. BPL is highly acclaimed for its quality medicines at home and abroad. BPL is also the only pharmaceutical company of the country to receive 'National Export Trophy (Gold)' for record three times.

On this occasion Beximco Pharma CEO Nazmul Hassan said in its long operation of more than 25 years, Beximco Pharma had always been the leader and the flagship of Bangladesh pharmaceutical industry by setting new trends and exploring newer horizons of export opportunities.

Beximco pharma, as the first company of Bangladesh, started export operations in Myanmar in 1996.

Myanmar was one of the most important export markets for BPL and so far, BPL had registered about 94 products in Myanmar. BPL had a strategic plan to expand its business in Myanmar in coming years he added.

Founded in 1976 and based in Dhaka, Bangladesh, BPL manufactures and sells generic pharmaceutical formulation products, active pharmaceutical ingredients and intravenous fluids. The Company also manufactures and markets its own branded generics for almost all diseases.

The Company also undertakes contract manufacturing for multinational pharmaceutical companies. The Company operates from a 20-acre site in Dhaka and currently employs over 2,400 staff.

The Company's products are sold to retail outlets, medical institutions and other pharmaceutical manufacturers in Bangladesh, in regional markets such as Pakistan, Nepal, Bhutan, Cambodia and Myanmar and in other markets overseas, principally in East Africa and South East Asia, including Singapore.

Siemens to set up power substation for Ctg Port

BUSINESS REPORT

Siemens Bangladesh Limited (SBL) has signed a contract recently with Chittagong Port Authority (CPA) for setting-up a 1x12.5 MVA, 33/11 kV power sub-station.

The value of the contract is estimated at Tk 46.7 million.

The works under this contract includes supply, installation, testing and commissioning of 1x12.5 MVA, 33/11 kV Power Transformer, associated 33 kV & 11 kV GIS Switchgear and Power Cables for New Mooring Container Terminal (NCT), said a press release.

Commodore R. U. Ahmed, Chairman, CPA and Hubertus Boesten, CEO-Energy Sector, SBL, signed the contract on behalf of their respective organizations. CPA's Capt. Yahya Syed, Member-Engineering and Md. Khademul Bashar, Project Director-NCT and SBL's S M Shahabuddin (Raj), Director-Chittagong, Aminul Hoque, AGM-Chittagong and Asaduzzaman, Sr. Manager-Power Division were also present on the occasion.

Acclaimed worldwide for its quality products and state-of-the-art expertise, SIEMENS shares a long history of cooperation with the Port Authority; as such, this is the third project awarded to SBL by CPA in the last five years.

In 2003, SBL commendably completed construction of a 33/11 kV Substation along with the overhauling of 11/.415 kV Substation for CPA; and in 2004, SBL supplied 11kV GIS type NXPLUS C for the New Mooring Container Terminal Project. CPA's awarding of this contract to SBL bears testimony to the level of reliability, trust and professionalism that SIEMENS has earned, not only with CPA but the Power Sector of Bangladesh as a whole, over years of consistent quality performance.

The successful completion of this contract will be yet another milestone for SBL's pledge in the development of Bangladesh.

Power Transmission and Distribution (PTD) in Siemens Bangladesh is one of the largest players in the power sector of Bangladesh.

The presence of Siemens in the power sector of Bangladesh started in the mid 60s.

Iceland takes control of top bank

BBC London

Iceland's largest bank, Kaupthing, has become the third financial institution to be taken over by the country's government in the past week.

The country's Financial Supervisory Authority said the move was made to safeguard its domestic banking system.

All domestic deposits at the bank were fully guaranteed, it added.

On Wednesday, the UK Treasury arranged for ING Direct to take over the £2.5bn of deposits of 160,000 UK customers of Kaupthing's online arm, Kaupthing Edge.

The Swedish central bank had already agreed to provide a loan to the bank's Swedish arm.

The action by Iceland's financial regulator means control has now been seized of all three of the nation's major banks. Landsbanki and Glitnir were taken over earlier this week.

The country has struggled to cope with the global financial crisis.

"The action takent was a necessary first step in achieving the objectives of the Icelandic government and parliament to ensure the continued orderly operation of domestic banking and the safety of domestic deposits," Iceland's Financial Supervisory Authority said.

Pubali Bank holds seminar on foreign trade and exchange

BUSINESS REPORT

A seminar titled "Foreign Trade and Foreign Exchange" was held in the Pubali Bank Head Office, which was organised by Pubali Bank Training Institute recently.

Managing Director of Pubali Bank Ltd Helal Ahmed Chowdhury was present as the chief guest at the seminar.

In his speech, Helal Ahmed Chowdhury said that though foreign exchange business increased substantially from previous year, still there was a scope to draw more businesses in respect of potentiality of the foreign exchange business.

He called upon the officials to increase overall foreign exchange business in order to cope with the changes in the environment of the global banking sector.

The Managing Director emphasised on exploring and expanding foreign exchange business by maintaining regular contacts with the importers and exporters, and applying modern IT solutions in order to keep the pace of advancement of business in the present competitive scenario.

He advised all to work hard to increase remittance rendering best customer services.

He further advised all officials to be meticulous in compliance of instructions of Head Office, Bangladesh Bank, Securities and Exchange Commission and other regulatory bodies.

Principal of the Training Institute Badruddin Ahmed and faculty member DGM Sushil Kumar Paul were present at the seminar.

7 CDA engineers among 24 sued by ACC

Chittagong Correspondent

The Anti-Corruption Commission (ACC) here Wednesday recorded 15 cases accusing 24 persons including seven engineers of Chittagong Development Authority (CDA) of public funds plundering.

Deputy Assistant Director of the ACC in Chittagong Shamsuddin Ahmed filed the cases with Kotwali police station after primary investigation.

The accused are Superintendent Engineer Iqbal Hossain Majumder, Executive Engineer and Project Director of 'Oxygen-Kaptai' link road Kazi Hassan Bin Shams, Assistant Engineer Nurul Amin Bhuiyan, Assistant Engineer Mohammad Elias, Assistant Engineer Sayed Golam Sorwar, Sub Assistant Engineer Mohammad Jahangir Alam and Sub Assistant Engineer Mohammad Hamidul Haque.

Other accused are contractors. According to the anti-graft watchdog, the CDA started its construction work on a 6-kilometer link road of Oxygen-Kuwaish on Kaptai road at a cost of Taka 50 million through 15 tenders in November 2001. The project was scheduled to complete by June 2007.

During the period, CDA drew all the allocation but 45 percent of the works were yet to be completed. Moreover, the ACC also found many irregularities in the constructions.

ACC official Obadilluah quoting the FIR (first information report) said that the accused had eaten up over Taka 7.9 million from the project.

Brack Bank Mymensingh

branch opens

Our Correspondent

Mymensingh

Brack Bank, Mymensingh Branch was inaugurated by A.E.A. Muhaimen, Managing Director of Brack Bank Ltd on October 8 in Mymesingh.

Head of Retail Firoz Ahemd Khan, along with high officials of Brac Bank and manager of the branch Md Mahmudur Rahman were present on the occasion.

The bank renders online banking facilities and 24 hours ATM service to its customers. This is Brack Bank's first branch in greater Mymensingh.

Matin Uddin, Shameem Directors of Dhaka Bank

Alhaj Matin Uddin Ahmed Barabhuiya has been elected as the Independent Director of Dhaka Bank Limited at the 135th Board Meeting held on June 12.

Matin was the Managing Director of Shahjalal Islamic Bank Ltd and Al Arafah Islamic Bank Ltd. He was also Senior Vice President and In-charge of the Main Branch of Dhaka Bank Ltd. He is also associated with different socio-cultural activities.

Leading industrialist Shameem Hussain has been elected as the Director of Dhaka Bank Limited at the 13th Board Meeting held on September 9. Hussain is the Chairman of Dhaka Refilling and Service Centre Limited, and HP Chemicals Limited, and Managing Director of Zenith (Bangladesh) Rollers Ltd, Robistic Ltd and Polyweb Printing and Packages Ltd. He is the Director of Robin Printing and Package Ltd and also the sponsor of different socio-cultural activities.

Prime Islami Life Secretary returns home

Habibur Rahman, Company Secretary and SEVP of Prime Islami Life Insurance Ltd attended a weeklong management course held in London, UK during September 21-27 last organised by International Co-operative and Mutual Insurance Federation (ICMIF).

He returned home on September 28. He exchanged views with the executives or ICMIF regarding various aspects of life Insurance. This course was arranged through a scholarship program organized by ICMIF. Habibur Rahman is the only person to get this scholarship in Bangladesh. He successfully completed the course.

Lineup of events announced

New York, 8 October 2008 - The United Nations Millennium Campaign and Global Call to Action Against Poverty (GCAP) yesterday announced details of some of next week's events aimed at mobilizing more than one percent of the world's population -- over 67 million people - on October 17-19 to demand that world leaders deliver on their promises to eradicate extreme poverty and achieve the Millennium Development Goals by 2015.

"The global movement in support of the Millennium Development Goals is growing, and on October 17-19 more than one percent of the people on earth will send a clear message to their leaders that they will no longer stay seated while promises to end extreme poverty remain unfulfilled," said Salil Shetty, Director of the UN Millennium Campaign.

"It's incredible to see that in times of economic instability people are even more motivated to show their leaders that they want poverty eradication to remain at the top of the agenda. From the smallest villages to city streets, sports events and political lobbies, the sheer diversity of actions is staggering. We are showing the power of our growing movement in an unprecedented way this year," said Kumi Naidoo, Co-Chair of the Global Call to Action Against Poverty (GCAP).Amongst the tens of millions of people Standing Against Poverty are individuals with compelling stories to tell, such as activist and journalist Jenerali Ulimwengu, who has dedicated his life to exposing and fighting bad governance in Tanzania.

As the result of his hard-hitting reporting, his citizenship in Tanzania was temporarily revoked. During Stand Up and Take Action this year, Ulimwengu will spearhead demands for the government to fulfill the MDGs by ensuring that poor people have access to clean portable water, improving access to healthcare (particularly for women and children), putting in place pro-poor development policies and improving service delivery in all key sectors. Ulimwengu is available for interviews.

Also Standing Against Poverty and available for interviews is James Njoroge Gitau, who lives in the Kariobangi slums in Kenya, surviving on less than one dollar a day. Gitau has mobilized more than 100 schools and churches to Stand Against Poverty and is organizing a medical camp to care for sick people in his community. Gitau is calling on his government to put in place pro-poor policies, stop corruption and allocate resources for programs for the poor.In Madhya Pradesh, Bhopal, India, Yogesh Jain will once again Stand Against Poverty.

Last year, Mr. Jain mobilized more than 200,000 people to Stand Up in protest of the districts' lack of healthcare, clean drinking water and resources for education. As a result of the massive mobilization, government officials conducted surprise inspections which resulted in the allocation of funding for infrastructure repairs and the allotment of government land for school construction.

In Badarpur Khadar, a village 15 km from Delhi, India, with no electricity, water, sanitation or health facilities, members of the National Conference of Dalit Organizations will open a school in a tent on October 18, providing local children with the opportunity to attend school in their village for the first time. Organizers will Stand Up to demand better resources from the Indian government.

"Stand Up and Take Action" events include:Africa

In Lagos, Nigeria, 100,000 people are expected to gather on October 17-19 for a concert by Femi Kuti to commemorate the life of renowned Nigerian Musician Fela Kuti and demand that the government pay closer attention to the country's poor people by investing more petro dollars in education, healthcare and other pro-poor development programs.

In Pretoria, South Africa on October 17, an expected 5,000 campaigners led by the workers' trade union COSATU and the South Africa Council of Churches will march to Union Buildings, the official seat of government in South Africa, to demand guaranteed state social security schemes covering all children under eighteen. They will also call for the abolition of the value added tax on basic foodstuffs, the abolition of user fees on water, and the ratification of the UN Convention on Economic, Social and Cultural Rights.

In Harare, Zimbabwe, 5,000 people are expected to gather when Pastor G and Victor Kunonga perform at "Do the Right Thing" on October 18 to call on the government to improve service delivery in health, water and sanitation. Using the case of Chitungwiza, a heavily populated dormitory town of Harare with an estimated population of 1 million, the groups participating in the campaign are arguing that years of neglect of the water system and the government's failure to provide safe drinking water has led to outbreaks of cholera and other related diseases.

In Togo, caravans will travel around the country to towns and villages, with each visit focusing on a specific MDG. The tour will culminate at a beach where 5,000 people are expected to gather to Stand Up together on October 19.

In Nairobi, Kenya on October 18, several top artists including Sarah Mitaru, Jua Kali and Jaky Malley Ringtone will join hands to host a concert aimed at protesting rising costs and reminding world leaders that Africans will not accept a new slavery through retrogressive trade policies such as the Economic Partnership Agreements.

Asia

In Delhi, India, members of the National Conference of Dalit Organizations and Amnesty International, India will meet with Parliamentarians on October 17 to demand resources for the most vulnerable and socially excluded groups. Also in Delhi, celebrities and more than 10,000 people are expected to gather for a mass mobilization on Parliament Street.

In Daltonganj, Jharkhand, India more than 30,000 people from 600 villages and 18 districts are expected to gather on October 17 and 18 at a mass mobilization to demand poverty alleviation measures from the government and the achievement of the MDGs. The gathering, called Mahapanchayat, will be addressed by the Chief Minister of Jharkhand.

In Indonesia on October 17, Muslims will Stand Against Poverty at more than 400 mosques in a statement of solidarity to encourage the government to commit to more pro-poor policies.

In the Philippines, the National Anti-Poverty Commission and other civil society actors are expected to mobilize more than 10 million people at events including a National People's Day on October 18, which will offer medical services and a job fair. Also in the Philippines there will be a "Stand Up and Take Action" Rap Contest for community youth groups in metro Manila on October 17 and a bike run on October 19.

In Thailand, at least 180,000 people living below the national poverty line are expected to participate in poverty reduction clinics organized by the Ministry of Interior, which will encourage domestic and individual savings, health promotion, and empowerment of the poor.

In China, a Poverty and Migration Forum hosted in Beijing will include large numbers of people Standing Up.

In Singapore, bands including Vertical Rush and Jack and Rai will play at Youth Park on October 18 to express their demands to end world poverty and a new 2015 Countdown Clock will be launched to show leaders how much time -- person by person, second by second - is left to achieve the MDGs.

Europe

In Italy, 80,000 people are expected to take part in 10 simultaneous Stand Up events in 9 cities including Venice, Bologna, Florence, Milan and Rome on October 18. Nine huge chairs without seats will be installed simultaneously in 9 squares to signify that people will not remain seated until their government delivers more and better aid. On October 19, 300,000 supporters are expected to Stand Up at the Italian Premier League football match. Also on October 19, sea dolphins will Stand Against Poverty at the Oltremare Park in Riccione.

In Portugal, members of the Star Trackers group will parachute over Évora, a Unesco World heritage site, on October 17 to raise awareness of the MDGs and demand more and better aid.

In Scotland/ UK, the Glasgow City Council has passed a motion to recognize the International Day for the Eradication of Poverty and will call on all Glaswegians to "Stand Up and Take Action" against child poverty in Scotland. A march from Glasgow Cathedral to Glasgow's George Square aims to mobilize 3,000 people.

In Spain, thousands of people are expected to gather to march against poverty in Madrid on October 17 under the "Rebélate contra la Pobreza" initiative. Simultaneous anti-poverty mobilizations will occur on October 17 and 18 in more than 20 cities, including Palma de Mallorca, Sevilla, Zaragoza, Donosti, Bilbao, A Coruña, Badajoz, Cuenca and Valencia., In Germany, video messages from members of the World Future Council who received alternative Nobel prizes will be shown at the Sony Center in Berlin on October 17 to demand more and better aid. At the end, the pop group Culcha Candela will lead the Stand Up moment.

In Belgium, at the beginning of nine football matches on October 18-19, tens of thousands of fans will be asked to recite a pledge and Stand Against Poverty.

North America

In the United States and Canada, students will join campus programs and challenges to build political will to end extreme poverty by hosting teach-ins, Stand Up rallies, and other campus events.

Throughout the United States and Canada, faith groups are organizing Sabbaths, Sevas, and Sadaqas to rally believers of all faiths --Christians, Jews, Muslims, Hindus and others -- to learn about and take action on behalf of people living in extreme poverty and dying from preventable diseases.

Middle East/ Arab region

In Palestine, 500,000 pupils are expected to Stand Up in schools. Students in 15 university branches will organize media debates to demand a lending fund for poor students.

Latin America and Caribbean

In Santiago, Chile there will be a walk between Arms Square and Constitution Square on October 17 featuring a moving wall on which people can take action by writing messages. At the event, citizens will ask municipal candidates to sign a commitment against poverty.

In El Salvador, citizens will Stand Up at a Presidential Candidates Forum on October 17.

Global

Members of the Art of Living Foundation, one of the largest spiritual movements in the world, will mobilize to plant more than 100 million trees around the world.

Screenings of the independent film "The End of Poverty?" by Cinema Libre Productions will take place in about 15 locations worldwide including the Sao Paulo Film Festival, London, Sydney, Washington DC, and Brussels.