The New Nation - Internet Edition

Markets keep rising as govts build confidence

AFP, Tokyo

Japan and Australia moved Tuesday to shore up consumer and investor confidence, as governments around the world took new steps to ease the global financial crisis -- and saw stocks soar in response.

The surge in markets was welcome news after weeks of turmoil that have seen trillions of dollars wiped off share values, but analysts warned that the crisis was far from over amid continuing fears of a global recession.

Australia launched a 7.25 billion US dollar economic stimulus package while Japan relaxed restrictions on companies buying back their own shares, looking to address the worst crisis in world finance since the Great Depression.

Australian Prime Minister Kevin Rudd said the stimulus package was intended to address concerns that the crisis was moving beyond dramatic losses in share values to pose a threat to his country's solid economic growth.

"The global financial crisis has entered into a new dangerous and damaging phase, one that goes to the real economy -- growth and jobs," Rudd said.

Japanese stocks rose 14 percent and Australian shares were up 3.7 percent, following big gains around the globe Monday in the wake of new measures by world leaders to unfreeze blocked credit flows and inject money into markets.

"We've seen phenomenal gains," said Adrian Leppinus of Cameron Securities in Australia. "There's been a mad rush for people to get back in."

The London stock market opened up 2.65 percent on Tuesday, Frankfurt's DAX was up 1.44 percent at the open and the CAC 40 on France was up 2.15 percent.

But markets around the world are still sharply down for the year, and analysys have cautioned that the situation remains uncertain, with wild fluctuations common in the recent months of turmoil.

In 2008, the Japan and Hong Kong stock markets are off about 38 percent, the US Dow Jones has shed 29 percent and London's FTSE 100 is down 31 percent. "The markets had been saying it was necessary to inject public funds into troubled financial institutions and countries have moved to do that," said Kazuhiro Takahashi, equity chief at Daiwa Securities SMBC in Japan.

But he added: "Even if sentiment recovers for now, it can worsen again because of concerns about the economy."

US President George W. Bush and Treasury Secretary Henry Paulson were to unveil details later Tuesday of a comprehensive rescue package that includes investing hundreds of billions of dollars in several troubled banks.

In its boldest move yet to fend off the crisis, the US Treasury is expected to announce a plan to invest 250 billion dollars in potentially thousands of American banks, including the nation's largest.

Bush on Monday promised "responsible, decisive action to restore credit and stability and return to vigorous growth."

Paulson meanwhile was to outline "a series of comprehensive actions to strengthen public confidence in our financial institutions and restore functioning of our credit markets," the Treasury Department said.

"We are designing a standardised program to purchase equity in a broad array of financial institutions," said Neel Kashkari, the US official in charge of the country's 700-billion-dollar bank bailout package.

Wall Street surged Monday on the latest developments, jumping more than 11 percent in the Dow's biggest points gain on record.

Markets were also cheered by trillion-dollar rescue packages in Europe, with governments working in concert to stem the crisis.

Britain pumped 37 billion pounds (47 billion euros) into three struggling banks, while Germany, France, Spain, and Austria Monday pledged a total of 1.03 trillion euros (1.4 trillion dollars) for troubled financial institutions.

The package announced by Germany alone included 400 billion euros in loan guarantees and 80 billion euros in fresh capital, while France said it would guarantee up to 320 billion euros of lending between banks.

ISIS Foods Bangladesh Ltd launchs its products in market

BUSINESS REPORTER

ISIS Foods Bangladesh Ltd launched its product officially in the country's market yesterday. The announcement of its product launching came from a press conference held at Spectra Convention Centre in Gulshan on Monday.

ISIS is a reputed brand of consumer food in Europe and has its presence in a number of European countries like Sweden, Spain, Denmark, Norway, Poland, Holland, Turkey, Czech Republic, etc. The products of ISIS, which is available in the market, are ISIS Mango Jam, ISIS Orange Jelly and ISIS Sweetener. 65 other products like ISIS Low GI rice, ISIS Tomato Ketchup, ISIS Biscuit, ISIS Ice-cream, and ISIS Fruit Juice will be introduced very soon in the market. ISIS Foods are producing No Sugar Added, Low Fat, Low Calorie and High Dietary Fiber food products but maintaining high quality on taste.

The press conference was graced with the presence of H.E. Einar Hebogard Jensen, Ambassador of Denmark, Niaz Rahim, Chairman of ISIS Foods Bangladesh Ltd. and Director of Rahimafrooz (Bangladesh) Ltd, Mr. Peter Dam, General Manager of ISIS Foods Bangladesh Ltd. and Khondoker Ershad Jahan, Head of Sales & Marketing of ISIS Foods Bangladesh Ltd.

US to pump $250b into banks

Reuters, London/Tokyo

The United States will announce plans on Tuesday to inject $250 billion into its banks, following similar, concerted measures in Europe to revive money markets and stave off global recession.

The Treasury is due to unveil its plan at 8:30 a.m. EDT with about half of the total figure likely to go to the top nine U.S. banks to get them lending to each other again, people familiar with the plan said.

Federal Reserve Chairman Ben Bernanke said in an article on the Wall Street Journal's website that the measures, which he did not detail, constituted a broad-based attempt to end the crisis which began with collapse of the U.S. housing market and now threatens industry and jobs worldwide.

"These steps will allow us to restore more normal market functioning and encourage private capital to further support the reinvigoration of financial markets," he wrote.

The Treasury will buy stakes in Bank of America Corp, Wells Fargo, Citigroup, JPMorgan Chase & Co, Goldman Sachs, Morgan Stanley and Bank of New York Mellon Corp, said two sources speaking on condition of anonymity.

Media reports said State Street Corp and Merrill Lynch would also receive a capital injection.

Japan joined the global push, saying it could inject public funds into regional banks to make sure small firms can get cash.

Similar plans in Europe helped restore some confidence among investors on Monday. London, Berlin and Paris offered direct capital injections for banks and to underwrite interbank lending to revive frozen money markets that threaten cash-strapped businesses as well as the banking system itself.

London, Berlin and Paris offered direct capital injections for banks and to underwrite lending between banks that has all but frozen, choking off funds that ultimately drive private business and industry.

Germany approved a rescue plan worth up to 500 billion euros ($679 billion) and France put up a total of 360 billion euros.

Britain, which has led the way with a twin blueprint of bank equity stakes and money market support, had already pledged 250 billion pounds to guarantee lending between banks and stumped up 37 billion pounds to buy into its troubled financial giants.

Governor Bangladesh opines ripples of financial shock less likely

BUSINESS REPORT

A Roundtable on the Impact of Financial Crisis in South Asia was held on the 10th October at the World bank Headquarters in Washington, DC in the sidelines of World Bank/ IME Annual Meeting Prof Joseph Stiglitz, Noble Laureate and former Chief Economist of the World Bank, Dr Ragu Rajan, the Former Chief Economist of IMF, Dr Salehuddin Ahmed, Govenor, Bangladesh Bank spoke.

Among others, the Govenor of the Reserve Bank of India and Pakistan also spoke. Prof Stiglitz said the present global financial crisis is due to inadequate regulation and poor supervision of the banks and investment firms in the USA. Dr Ragu Rajan emphasized on comprehensive package for overcoming the problem to boost up confidence of people.

Governor, Bangladesh Bank pointed out that the banks in Bangladesh are not very much exposed to the banks and investment firms in the USA and Europe. Therefore, the ripples of financial sheck into the financial systems will be less likely in the short run. Besides commercial banks in Bangladesh are taking appropriate measures so that their find kept in the banks abroad are not adversely affected.

The liquidity position of the commercial banks in Bangladesh is good and no commercial banks have come to the central bank for massive liquidity support or they did not request for support for insolvency, the Governor of Bangladesh Bank added.

However, if the global crisis is prolonged and depended in the developed countries the effect via real sector like export and import may have adverse impact on Bangladesh.

Moreover, if the Official Development Assistant (ODA) and bi-literal fund flow slowdown, pressures on government budget will be strong and may affect government's on-going poverty alleviation, social safety net, health and education program, the Governor observed.

House sales hit new 30-year low

BBC, London

The slump in the property market is becoming even worse, according to a survey from the Royal Institution of Chartered Surveyors (Rics).

Estate agents sold on average under one property per week each in September.

The number of properties being sold across the UK was the lowest since the Rics survey started in 1978 and was 52% lower than in September last year.

London was the region with fewest sales per estate agent, at an average of just eight in the previous three months.

And nationwide 91% of estate agents saw prices fall over the preceding three months.

"As it stands, only those with significant finances are in a position to access the market," said Rics spokesman Jeremy Leaf.

"The housing market continues to hold its breath and unless mortgage liquidity improves, the market is likely to remain a dormant beast for some time to come."

Lenders such as the Halifax and the Nationwide have reported that prices have fallen by 12% in the past year.

Despite this picture, Rics took some encouragement from a slight improvement in the number of new inquiries from would-be buyers, which it said was a "lead indicator" of activity. The proportion of surveyors reporting a rise in inquiries was at its best for 16 months, though they were still outnumbered by those reporting a fall.

Citibank organises seminar on bond market

BUSINESS REPORT

Citibank, NA Bangladesh, with its aim to support the evolution and growth of the nascent Bond Market of the country, organized a seminar in Dhaka titled as "Bank Market-infrastructure and Opportunities" on Monday.

The seminar concentrated on issues like prospect of bond as means of finance, regional outlook and growth pattern, legal environment for bond in Bangladesh. Ziaul Hasan Siddiqui, Deputy Governor of Bangladesh Bank inaugurated the seminar. Mamun Rashid, Managing Director and Citi Country Officer, Bangladesh and Adrian Nye, Director and regional Sales Head of Citi's Agency and Trust business and other prominent experts from the financial industry were present during the inaugural ceremony.

Siddiqui, in his inaugural speech stressed the importance of bonds as a key stimulator for the proper development of country's capital market.

This will open avenues for the issuer in the country to choose among more financial options to run their companies as he added.

He also emphasized the role of market intermediaries to popularize this instrument in Bangladesh financial market.

Mamun Rashid in his speech underscored the importance of prudent risk management in view of the global financial turmoil.

He said that we should not disconnect ourselves from globalization rather we should learn from the mistakes and ensure that we do not make those mistakes.

The seminar was well attended by over fifty participants form the leading financial institutions. Several CEOs of banks and financial institutions attended the inaugural ceremony of the seminar.

IFIC's foundation course for probationary officer's 2nd phase starts

Three weeks long 2nd phase "Foundation Course for Probationary Officer's (9th Batch)" of IFIC Bank Ltd. was inaugurated on October 12 at its Academy. Mosharraf Hossain, Managing Director of IFIC Bank Ltd. was present on the occasion and delivered his inaugural speech before the participants. The main objective of the course is to impart different operational aspects of Credit Risk Management and Foreign Exchange to the participants. Among other, Deputy Managing Director Mohammad Abdullah also attended the ceremony and delivered his speech. A total number of 51 probationary officers of the Bank working at various desks at the brandies and Head Office attended the course. It may be mentioned here that this was the 25th programme of IFIC Bank Academy in the year 2008.

Course Directors are Md. Abu Tayeb Senior Vice President and Incharge of Training & Research Division, A.K. Mojibur Rahman, Assistant Vice President and Omar Sharif, Senior Staff Officer.

Moazzem Hossain elected director of Southeast Bank Ltd

A H M Moazzem Hossain, Editor, Financial Express, a premier financial daily of the country has been elected Director of Southeast Bank Limited from the depositors. As recommended by the Board of Directors of the Bank, his appointment as Director from the Bank's depositors was also approved by Bangladesh Bank on October 8.

Moazzem Hossain, a B.A. (Hons) and M.A. in Economics from Dhaka University, started his career as a banker in Habib Bank Limited, Pakistan in 1969. He also worked as Economic Investigator, Ministry of Finance, Government of Pakistan in 1970. Later, he joined the Bangladesh Observer, a leading national daily in 1971 and continued there until 1987. He also worked in the New Nation, the United News of Bangladesh (UNB) as Executive Editor, the Daily Star as Economic Editor, and in The Telegraph as Deputy Editor. He was also associated with Press Institute of Bangladesh and Bangladesh Sangbad Sangstha. He was a member of the Board of Directors of Janata Bank a nationalized commercial bank of the Country, for 5 (five) years. He is also a Director of ICB Securities Trading Company Ltd. He attended a number of Seminars and Workshops abroad mostly at the invitation of the host countries. Because of his discipline in education and vast experience in the related field, it is expected that he will be able to contribute significantly to the qualitative improvement of the Bank in his capacity as the Director of Southeast Bank Limited from the depositors.

Nurul joins DCCI as Secretary

AHM Nurul Islam formerly a member of Bangladesh Civil Service (Administration) Cadre has recently joined Dhaka Chamber of Commerce & Industry (DCCI) as Secretary. He retired as Secretary in Charge, Prime Minister's Office, Government of the People's Republic of Bangladesh in 2004. Thereafter he has worked in the capacity of Adviser Government Policy & Procedure, Livelihood Security and Risk Reduction Sector in Action Aid Bangladesh an international NGO and Neeti Gobeshona Kendra a research and consulting firm.

In his professional career he was actively involved in the field and secretariat of Bangladesh government and involved in preparation of Bangladesh Poverty Reduction Strategy Paper (PRSP) and other important government documents.

He obtained postgraduate degree in Development Administration fram University of Birmingham, (UK), M.A. in Public Administration and B.A (Honours) in Political Science from University of Dhaka. Besides he has undergone various high profile training on law and administration within the country and abroad.

ACME introduces ZERO in container

The Acme laboratories Ltd. recently has launched Sucralose as ZERO tablet in container. ZERO (Sucralose) is made from sugar so it tastes like sugar, ZERO is a no calorie sweetener, ZERO can be used as sweetener in different foods like pudding, milk products, jelly, fruit juices, tea, coffee, desserts, hot and cold beverage etc. Each ZERO tablet contains sucralose 8mg equivalent to 1 teaspoonful of sugar in sweetness. Due to zero calorie sweetener, it is a nice preparation for the health conscious people. ZERO can be a unique choice for the diabetic patients. ZERO is suitable for use by everyone, including children and pregnant women. Food and Drug Administration (FDA) approve ZERO. ZERO provides a sugar like taste without a bitter after-taste. ZERO does not cause tooth decay. ZERO is currently available in tablet from in both container and blister strips. Each container contains 100 tablets and price is 100 tk per container.