The New Nation - Internet Edition

Russia orders seven oil companies to lower prices

AFP, Moscow

Russian authorities ordered seven leading oil companies to lower their rates on Thursday after President Dmitry Medvedev lashed out at "disgusting" prices for airplane fuel. The Federal Anti-Monopoly Service sent "a warning about the need to lower prices for petroleum products to market levels" to Lukoil, Gazprom Neft, Rosneft, TNK-BP Holding, Surgutneftegaz, Tatneft and Alyans, the service said in a statement without giving further details. The companies regularly top the list of Russia's biggest oil producers. Earlier, Medvedev called for strong measures to deal with high prices for airplane fuel, which have led to the cancellation of dozens of domestic flights in Russia. "As for aviation fuel prices, the situation is simply disgusting," he said in televised remarks, explaining that prices for airplane fuel had remained mostly unchanged even as crude oil has dropped from 140 dollars per barrel this summer to around 70 dollars.

Medvedev said he had ordered law-enforcement agencies to investigate and "in the event that criminal activity is proven, to press charges," adding: "This can no longer be tolerated."

Asia stock markets mixed after Wall Street rebound

AFP, Hong Kong

Asian stocks were modestly mixed Friday after Wall Street rebounded strongly overnight, with Japan's market recovering from its historic fall in the previous session.

Tokyo's Nikkei 225 stock average advanced 187.67 points, or 2.22 percent, to 8,646.12. The index was still far from recouping Thursday's 11.4 percent loss _ its biggest one-day percentage drop since the stock market crash of October 1987.

Compared to the gyrations this past week, Asian markets seemed to stabilize. Singapore and China shares rose, while Hong Kong's benchmark was flat. Australia's key index fell about 1 percent, while South Korea's was off 2 percent.

On Thursday, Asian shares plunged as weaker-than-expected U.S. retail sales data and a downbeat assessment from the U.S. Federal Reserve showed the world's largest economy, a major market for Asian exports, was heading into a recession.

"Within Asia, people are getting worried about a recession," said Daniel McCormack, a strategist for Macquarie Securities in Hong Kong.

"Today people are trying to work out which sector, which stocks, which companies are going to get hit and starting to position themselves accordingly."

Overnight in New York, a late wave of buying lifted the Dow Jones industrials 4.7 percent, or 400 points, to 8,979.26 in a yet another volatile session that saw the benchmark swing more than 800 points.

The Dow remains up 528 points, or 6.3 percent, for the week.Utilities, metal and communications issues led gains in Japan, with Nippon Telegraph and Telephone Corp. up nearly 7 percent and Tokyo Gas Co. rising 6.5 percent.

Oil prices rose. Light, sweet crude for November delivery was $3.11 higher a $72.96 a barrel in Asian trade. Oil prices are now half of their peak prices near $150 a barrel in July.

In currencies, the dollar gained slightly to 101.57 yen Friday morning in Asia from 101.30 yen late Thursday. The euro stood at $1.3472 from $1.3492.

Markets in Europe fell Thursday, with Britain's FTSE 100 index falling 5.4 percent to 3,861.39, while Germany's DAX sank 4.9 percent.

DBBL opens its 53rd Branch at Sonagazi, Feni

Dutch-Bangla Bank Limited has opened its 53rd Branch at Sonagazi (Chaklader Market) Thana Road), Feni on October 16 with Truly On-line Banking facilities from the very opening day of the branch. The Branch was inaugurated by Md. Yeasin Ali, Managing Director of the Bank. Ali also opened an ATM Booth at the Branch premises to facilitate round-the-clock banking services to the customers - like cash withdrawal, balance enquiry, mini-statement, payments of utility bills etc.

The opening ceremony started with a Milad-Mahfil seeking blessings of the Almighty Allah for successful operation of the Branch, prosperity of the business community, depositors of the bank and stakeholders. The distinguished guests of inaugural ceremony opined that, Dutch-Bangla Bank Limited is not only rendering present-day customers need banking services but also the Bank spends a significant portion of its annual profit for carrying out a wide range of philanthropic activities from which the society is at large benefited.

Among others, Additional Managing Director of the Bank AHM Nazmul Quadir, local elites, business personalities, bankers, educationists and local journalists were present at the inaugural ceremony. The respected guests, residents of the locality and owners of business houses/shops showed their spontaneous enthusiasm by opening account with the bank.

Banks borrow record $437.5 billion per day from Fed

Reuters, New York

Financial institutions ran to their lender of last resort for record amounts of cash in the latest week, under extreme pressure from the worst global financial crisis in a generation, Federal Reserve data showed on Thursday.

Banks and dealers' overall direct borrowings from the Fed averaged a record $437.53 billion per day in the week ended October 15, topping the previous week's $420.16 billion per day.

Some analysts are concerned that banks' dependence on Fed lending might become long term and difficult to change.

"The banking system is going to become addicted to this very cheap money. Unwinding it will be very difficult," said Howard Simons, strategist with Bianco Research in Chicago.

"We have effectively allowed the central banks to disintermediate the banking system. Why would I want to borrow from you if I could do it with the central bank, because they can always print it up and say 'here'tand they are in the business now of making sure I stay in business," Simons said.

Primary credit discount window borrowings averaged a record $99.66 billion per day in the latest week, up from $75.0 billion per day the previous week.

Primary dealer and other broker dealer borrowings were $133.87 billion as of October 15, versus $122.94 billion on October 8.

"Other credit extensions", mostly reflecting loans to insurer AIG, were $82.86 billion as of October 15, versus $70.30 billion as of October 8.

The Fed's lending to banks to enable them to purchase asset-backed commercial paper from money market mutual funds was $122.76 billion as of October 15, versus $139.48 billion on October 8.

NTT-DoCoMo becomes new shareholder of AKTEL

TM International (BD) Ltd. ("AKTEL"), one of the country's leading mobile telecommunications service providers hosted a reception to welcome its new shareholder, NTT DoCoMo Inc, one of the world's leading telecommunications company, and the largest mobile telecommunications company in Japan.

AKTEL started its journey in 1997, as a joint venture between Telekom Malaysia Bhd and AK Khan & Company Ltd. The AK Khan Group recently completed the sale of its entire shareholding of 30% in AKTEL to NTT DoCoMo.

Iqbal Mahmud, Secretary of Ministry of Post & Telecommunication of People's Republic of Bangladesh, H.E. Dato' Abdul Malek Bin Abdul Aziz, High Commissioner of Malaysia, H.E. Masayuki Inoue, Ambassador of Japan, Masatoshi Suzuki, Senior Executive Vice President, Member of Board of Directors and Managing Director of Global Business Division of NTT Docomo, Salahuddin Kasem Khan, Managing Director of AK Khan & Co. Ltd, President, Bangladesh Malaysia Chamber of Commerce & Industry and former Chairman of AKTEL and Bidyut Kumar Basu, Chief Commercial Officer of AKTEL, were present at this auspicious occasion. Chief commercial officer, Bidyut Kumar Basu, on behalf of AKTEL management, officially welcomed Docomo, who brings a new perspective to AKTEL to achieve market leadership.

AKTEL and the Bangladesh mobile industry will benefit greatly from the wealth of experience, knowledge and synergies brought by such major telco players as TMI and Docomo.

In his key speech Masatoshi Suzuki from NTT Docomo said that Bangladesh has a tremendous growth potential & also has a prospect of sustain economic and social development in future.

Forging a partnership with TMI group is an important step for NTT Docomo's international strength. Addressing the audience Mr. Iqbal Mahmud, Secretary of Ministry & Post Telecommunication of Bangladesh praised this historic moment and extended all necessary support to ensure successful growth of Bangladesh telecommunication sector.

"The alliance between TMI & NTT Docomo will greatly benefit people of Bangladesh in terms of employment opportunity and access to cutting edge technology" he added.

AKTEL also expressed its sincere thanks and gratitude to the AK Khan Group for their long standing contributions and support as shareholders.

NTT DOCOMO is the world's leading mobile communications company and the largest mobile communications company in Japan. DOCOMO serves over 53 million customers, including 44 million people subscribing to FOMA, launched as the world's first 3G mobile service based on W-CDMA in 2001. DOCOMO also offers a wide variety of leading-edge mobile multimedia services, including i-mode, the world's most popular mobile e-mail/Internet service, used by 48 million people. With the addition of credit card and other e-wallet functions, DOCOMO mobile phones have become highly versatile tools for daily life. With cutting edge technology and innovative services, Docomo is fast becoming a preferred lifestyle choice, continuously expanding its role in its users' lives, growing globally throughout Asia, Europe and North America. NTT DOCOMO is listed on the Tokyo (9437), London (NDCM) and New York (DCM) stock exchanges.

TMI is an emerging leader in Asian telecommunications with significant presence in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia. In addition, the Malaysian grown holding company has strategic mobile and non-mobile telecommunications operations and investments in India, Singapore, Iran, Pakistan and Thailand. The TMI Group, including its subsidiaries and associates, has approximately 50 million mobile subscribers in Asia, and is listed on Malaysia's stock exchange (Bursa Malaysia).

Malaysia and Japan have long been present in Bangladesh enterprise. This new partnership in mobile communications adds a new dimension of cooperation and business here, which will undoubtedly bring with it further investment and growth in Bangladesh telecommunications and other related sectors.

Social Investment Bank opens 25th Branch at Banani

Social Investment Bank limited (SIBL) has opened its 25th Branch at Banani, Dhaka on 16th October. Commerce and Education Adviser Dr. Hossain Zillur Rahman formally inaugurated the branch as Chief Guest. SIBL Chairman Abdul Awal Patwary was present as the special guest in the opening ceremony, which was presided over by Bank's Managing Director K. M. Ashaduzzaman.

SIBL Vice Chairmen Saidur Rahman, Dirctors Kamal Uddin Ahmed, Humayun Kabir Khan, Munshi Akhtaruzzaman, Nargis Mannan, Major (Rtd) Dr. Rezaul Haque. Rabban Ali, Managing Director also spoke the occasion. Directors, Shareholders, Industrialists, Businessmen and renowned personality of the locality were present at the occasion.

In his speech Zillur Rahman said, the difference between the SIBL and other traditional Bank is Shariah. As an Islamic Bank SIBL works for the good of the poor people. He appreciated the three-sector model of the Bank and urged the people to provide co-operation to implement the programmes of SIBL. He also lauded the state of the art information technology including on - line banking services of SIBL.

Abdul Awal Patwary the Chairman of SIBL said Cash Waqf is a unique product of SIBL, which may contribute for the development of mass people and SIBL is the pioneer that is implementing this programme.

K. M. Ashaduzzaman, Managing Director narrated the three-sector model of the Bank before the audience and hoped that through implementing these unique programmes SIBL can contribute to a great extent to the economy of the country.

He said from the beginning SIBL is providing electronic banking services to its clients. He promised to render most modern banking services being equipped with state-of-art automation technology.

StanChart announces $20m for eye care

Standard Chartered Bank today announced that Seeing is Believing, its global initiative to help tackle avoidable blindness, will invest US$20 million to fund the development of sustainable eye care services in less advantaged areas of 20 cities including Dhaka.

This new phase of the programme will give poor, marginalised populations access to complete services from cataract surgery, to preventative treatment and specialised medical interventions. The President of International Agency for Prevention of Blindness described the work proposed as a 'trail blazer' corporate social responsibility initiative in this area.

Dhaka is one of the 20 cities, and Bangladesh is one of first three countries to rollout Seeing is Believing: A New Vision (Dhaka Urban Comprehensive Eye Care Project). The Dhaka chapter aims to serve over 270,000 visually impaired people in Dhaka with Sightsavers International as their partner. The whole operation will be executed with the support of four partner hospitals: Islamia Eye Hospital, Bangladesh National Society for the Blind (BNSB), Ad-Din Hospital and Salauddin Specialised Hospital Ltd. The poor marginalized people living in the Dhaka city will be the main beneficiary of the services.

Initiated in 2003 and driven by the Bank's employees, Seeing is Believing is helping tackle avoidable blindness, 90 per cent of which is found in the developing world where the Bank's business is rooted.

The urban focus of the programme reflects the increasing incidence of avoidable blindness in cities, especially as urbanisation swells the numbers of people living in less advantaged urban areas where access to eye care is poor and awareness around eye health is low.

The services will be comprehensive, delivering community eye health education and awareness raising, together with a range of interventions, from spectacle provision, to surgery according to need.

The services will also be sustainable, designed to support marginalised and excluded populations both now and in the future.

In the design and implementation of the programme, the Bank is working with the International Association for the Prevention of Blindness, the World Health Organisation and leading eye care NGOs. With the support of these partners, 20 cities have been provisionally selected for investment through a systematic process identifying areas of real need.

As a demonstration of its commitment to the programme, the Bank commits to match every donation raised until the US$20million target is met and aims to raise the funds by 2013. The investment will extend from 2008 to 2015 when the programme is due to complete.

A launching ceremony of Seeing is Believing Phase IV: A new Vision (Dhaka Urban Comprehensive Eye Care Project) was held at the auditorium of Islamia Eye Hospital on 14th October, 2008 at 10 a.m. Program was formally launched by Mr. Md Anwarul Iqbal, BPM (Bar), PPM, Honorable Adviser, Ministry of local Government, Rural Development & Cooperative. Acting CEO and Managing Director, OCC, of Standard Chartered Bank Mr. Ahmed A Shah described the Banks long history of Eye Care in Bangladesh and its commitment to make this Five year project a success. Dr. Wahidul Islam, Country Director of Sight Savers International briefed the whole 5 year project. All the diplomats, Local and International NGOs and City elites were present at the program.

Bangladeshi company to invest about 161cr Tk in Ishwardi EPZ

M/s. Sunman Industrial" Corporation limited a Bangladeshi company will set up a Home Textile (weaving, dyeing) and related products manufacturing industry in the Ishwardi Export Processing Zone.

This100% local owned company will invest about Taka 161 crore in setting up their plant and will-produce textile products. The company will also create employment opportunity for 5412 Bangladeshi including 12 foreign nationals. This Industrial unit is a sister concern of Sunman Group.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s Sunman Industrial Corporation Ltd in BEPZA Complex, Dhaka. Prasanta Bhushan Barua, Member (Investment Promotion) of BEPZA and Major (Retd) Abdul Mannan, Managing Director of M/s. Sunman Industrial Corporation Ltd. signed the agreement on behalf of their respective organization.

Brig General Jamil Ahmed Khan, ndc, psc, Executive Chairman of BEPZA and other officials from respective organizations were present on the occasion.

US economy recession may be deepest as 1970s

Reuters, Washington

The U.S. economy is showing disturbing similarities to patterns seen in the painful recessions of the mid-1970s and early 1980s and it may be a year or more before it resumes anything near normal growth.

Factories are filling fewer orders, companies are cutting jobs and consumers are tightening budgets so dramatically that economists now think the economy will shrink for three straight quarters -- something that has not happened in 33 years.

"We now have a consistent series of reports telling us that the deteriorating job market, falling incomes, collapsing stock market, plummeting home values, and the credit crises have forced Americans to shut down spending," said Bernard Baumohl, chief economist with the Economic Outlook Group in Princeton, New Jersey.

"Everyone, it appears, is now hunkering down in preparation of a painful recession."

A Reuters survey of economists found most think the economy contracted in the recently ended third quarter and that growth will not resume until the second half of 2009. Even then, the recovery is likely to be subdued at best.

The poll, released on Thursday, was taken after governments across the Group of Seven rich nations nationalized swathes of the banking sector and after the world's major central banks slashed interest rates in unison in an unprecedented move.

Gary Stern, president of the Federal Reserve Bank of Minneapolis, said the current episode may be worse than the 1990-91 recession, when the economy contracted for two consecutive quarters and growth was tepid for about two years.

"In view of the scope and severity of the recent financial shock, the restraint on economic activity stemming from credit market headwinds could exceed the experience of the 1990s," he said on Thursday.

PSD completes Payments Professional Program

The Bangladesh Bank Payment Systems Division officers as well as officials from several other departments has recently completed certification course.

The program comprised of 36 hours lecture sessions conducted by Tim Mills from 18 August to 28 August, and 13 October to 15 October, in Hotel Purbani, Dhaka.

The program was a part of the overall initiative to introduce world class automated clearing house (ACH) in Bangladesh. Khandakar Muzharul Haque, Executive Director of Bangladesh Bank, distributed the certificates among the participants.

The ceremony was attended among others, by Chowdhury Mohidul Haque, General Manager of Department of Currency Management and Payments Systems, Dr. M. Golam Mustafa, General Manager of Department of Printing and Publications, Richard Moss, Project Manager of RPP and Randall Kahn, ACH Program Manager, This is the very first time this course has been taught anywhere in Asia.