The New Nation - Internet Edition

Recession fears grip US consumers

BBC, Washington

Consumer spending in the US fell in September by the biggest amount in four years, the Commerce Department said.

Personal spending fell by 0.3% last month, despite a rise in incomes of 0.2%, official figures showed.

The drop in expenditure was the biggest since June 2004, and steeper than economists had predicted.

On Thursday, the Commerce Department issued figures showing the US economy shrank at an annualised rate of 0.3% between July and September.

Consumer spending accounts for two-thirds of total US economic activity.

A number of US retailers have reported falls in sales for September, including department store JC Penny, upmarket rival Saks, high street retailer American Eagle Outfitters and online retailer Target Corp.

Low cost retailers Wal-Mart and Costco also failed to meet Wall Street expectations of sales for the month.

A drop in spending had been expected, although not as steep as 0.3%.

BENIGN INFLATION

The spending report also showed that consumer inflation edged up 0.1% in September, or 0.2% excluding energy and food costs.

In a separate report, also released on Friday, the US Labour Department said wages and benefits of US workers rose 0.7% in the third quarter, the same increase recorded in the previous two quarters.

Concerns over inflation have abated somewhat prompting the Federal Reserve to seek ways to boost the economy, such as by lowering interest rates to increase borrowing.

On Wednesday, the US Federal Reserve cut its key interest rate from 1.5% to 1%, as widely expected. The relative lack of inflationary pressure in the US economy means the Fed will be able to make further cuts should it wish.

SHAKY CONFIDENCE

Earlier in the week, Conference Board figures showed US consumer confidence at a record low in October, amid falling global stock markets, rising property foreclosures and increasing job losses.

The board said the monthly consumer confidence index fell to 38, down from a revised 61.4 in September and below analysts' expectations of 52.

It was the lowest since the board began tracking consumer sentiment in 1967.

High speed to build vessels for European, Japanese companies

BUSINESS REPORT

Highspeed promoted the largest Japan-Bangladesh joint venture in collaboration with Mitsui Engineering and Shipbuilding Co Ltd in Bangladesh in the year 1979 in the field of Shipbuilding and Heavy Engineering, and completed many large infrastructure projects including petro-chemical industries, hydropower plant and many specialized ships including barge mounted power station in collaboration with Mitsui Engineering and Shipbuilding Co Ltd of Japan.

To date Highspeed built more than 100 specialised ships, such as fishing trawlers, oil tankers, dry cargo vessels, passenger ferries, coastal patrol boats, and thus contributed substantially to the national economy. Besides maritime involvement, Highspeed Engineering wing has successfully completed many plant engineering projects with several multinationals of Japan and Europe. To cite some examples, Highspeed completed lot of steel structural works, pipe lines, pressure vessels, installation of heavy machineries and equipments, civil construction, storage tanks of Zia Fertilizer, Jamuna Fertilizer, KAFCO, Chittagong Eastern Oil Refinery, Kaptai Hydro Power, Parbatipur Railway workshop works among many other similar large projects.

Highspeed promoted a large joint venture in the field of deep sea fishing industry. Completed for the first time five deep sea shrimp and white fish trawlers and thus exported huge marine food and earning foreign currency for the country and also a new "technology" was transferred to Bangladesh from Japan as Highspeed built Deep Sea Fishing Trawlers for the first time in Bangladesh in 1981.

Highspeed built the first two container terminals with Interbeton BV Holland in 1986 with the World Bank finance.

Highspeed successfully completed the construction of 8 Food Grain Carriers for FAO (UNDP) under Swiss Government Food Security Programme. This is the first time that Bangladeshi shipyard participated against so many nations of the world and earned great fame for the country as well as foreign currency for the country.

Highspeed Group owns and operates a large fleet of 25 oil tankers which carry more than a million tons of POL products annually for Bangladesh Petroleum Corporation.

The latest achievement of Highspeed Shipbuilding and Engineering Co. Ltd is the formation of the joint venture company with Mitsui OSK Line, the largest shipping line of the world, which is due to start functioning from January 1, 2009.

Employment--the Group employs over a thousand people including engineers, specialists, skilled workers, a team of marketing and accounting personnel with office network, warehouse and terminals in Bangladesh including Dhaka, Chittagong, Mongla (Khulna) and Sylhet.

The chairman of Highspeed Group is also the president of three major associations of water sector (Launch Owners Association, Bangladesh Shipbuilders Association and Bangladesh Cargo Owners Associations) which employ millions of workers. The members of three associations carry 70 per cent of dry cargo, 90 per cent of POL product and 40 percent of passengers of total Bangladesh capacity.

For the above notable achievements, Chairman of Highspeed Group KM Mahmoodur Rahman received the prestigious award from the Government of Bangladesh on October 16, 2008 on World Maritime Day for his outstanding contribution in maritime sector.

The Highspeed shipyard has now undertaken an ambitious expansion plan to construct and export foreign vessels as several enquiries are received by us almost everyday from Europe and Middle East. It has also signed MoU with a European company and also with a Japanese company for construction and delivery of several types of vessels. In this yard, Highspeed is capable of constructing vessels of up to 7500 DWT.

Oil prices up after record falls

BBC, London

Oil prices rose almost 3 percent on Friday - but falling demand pushed crude to its biggest monthly drop in October.

US crude ended the month down 32% as demand continued to slow in the United States and other big oil users.

Oil reached a record of $147 a barrel in July, but prices have since fallen by more than half.

Members of the Opec oil cartel have called for more production cuts to boost prices - last week the cartel cut output by 1.5m barrels a day.

Oil prices were helped on Friday by a share price rally on Wall Street, which eased some investors' concerns about demand in a slowing global economy.

SUPPLY CUTS

In New York, light sweet crude oil closed up $1.85 to $67.81 a barrel. Earlier in London, Brent crude rose $1.61 to $65.32 a barrel dollars.

The price rises came amid signs that Opec was reducing supplies - in line with their agreement.

Kuwait informed customers it was cutting crude supplies by 5% in November.

Earlier in the week, Nigeria and the United Arab Emirates told their customers they would receive less oil.

But the world's biggest exporter, Saudi Arabia, has yet to inform its customers of any fresh curbs.

Venezuela has said Opec should further cut oil output by another 1m barrels a day and set a minimum price target of $70 or $80 a barrel.

Selected unions to get Tk 210cr for stronger governance at grassroots

BSS, Dhaka

The local government ministry is releasing Taka 210 crore for 2,257 selected unions from next January across the country as expanded block grant (EBG) under its Local Government Support Project (LGSP), a campaign to promote participatory governance at grassroots.

"Since the introduction of the project two years ago, most of the UPs (Union parishad) saw their revenue earnings three to four times higher then the previous years expediting their development engaging the villagers in the planning and implementation process," Local Government ministry joint secretary Swapan Kumar Sarker, who oversees the project told BSS.

More importantly, he said, the LGSP to UPs, selected under certain criteria based on the performance of their elected bodies, has generated a sense of competitiveness among the elected body at the lowest tier of the local government body to engage the people at the grassroots in the UP activities and spend their funds with utmost transparency.

Jointly funded by the government and the World Bank, the Taka 1,421 crore project was introduced in 2006 after pilot experiments at several areas while it already covered nearly half of the country's 4,498 UPs and expected to cover all the UPs by 2011, when the project period will be ended.

The United Nations Development Programme (UNDP), UNCDF, European Union (EU), Swiss Development Corporation (SDC) and DANIDA are also supporting the project financing LGSP's "learning and innovation" component as grants.

The officials said, the local government ministry so far sanctioned Taka 210 crore for 2,257 gradually selected UPs across the country as expanded block grant (EBG) under the LGSP during the 2008-2009 fiscal.Besides, Government has also allocated Taka 15 crore as supplementary block grant (SBG), in addition to EBG, to 388 union parisads under the learning and innovation component of the project to strengthen UPs capacity to ensure effective and efficient service delivery in an accountable manner.

The initial list of union parishads were finalised based on the UPs performance of the previous year. The officials said, the project incorporate about 20 to 25 percent of the country's total 4,498 UPs annually to under LGSP with an aim to cover all the UPs by 2011, the five-year project period would be ended.

A total of Taka 98 crore and 17 lakh had been released as EBG to 1,060 union parishad during financial year 2007-08. An amount of Taka more than five crore and 32 lakh had also been released to 80 union parishad as SBG under LGSP-LIC.The officials said, the UPs have implemented different schemes like development of rural roads, culverts, bridges, embankments, cannels, ferry ghats, slow ease gate, water and sewerage facilities, schools and health centers, library and market management.

"But, the people now themselves take account what resources they have and what the union parishad is doing with what limitations," a LGSP official said referring to his experience at the field level while evaluating the project success.

He said, ordinary housewives and marginal farmers join the budget meetings alongside the local elite and affluent businessmen of the unions in the annual budget meetings as the project not only helped make UPs accountable or transparent.

1600 hectares of land to be brought under chili cultivation in Gaibandha

BSS, Gaibandha

Department of Agriculture Extension (DAE) has taken up a massive plan to cultivate chili in all seven upazilas of the district during the current season.

DAE sources said a total of 1,600 hectares of land would be brought under chili cultivation this year with a target of producing 2,400 metric tonnes of chili in the areas.

Of those, 730 hectares of land would be cultivated in Fanchhari upazila, 400 hectares in Shaghata upazila, 150 hectares in Sundarganj upazila, 150 hectares in Sadar upazila, 100 hectares in Gobindaganj upazila, 50 hectares in Sadullapur upazila and 20 hectares in Palashbari upazila.

Necessary steps have been taken to ensure supply of quality seeds, fertilizer and other agriculture inputs among the growers fair prices to boost chili production here, said DAE Deputy Director ANM Mizanur Rahman Amin.

Besides, the farmers who lost their standing crops in last floods have been encouraged to cultivate winter vegetables to recover the losses, he said.

Premier Bank holds 62nd board meeting

BUSINESS REPORT

The 62nd meeting of Board of Directors of the Premier Bank Limited was held on October 29 last at its Head Office, Banani, Dhaka.

BH Haroon, Vice Chairman of the Board of Directors of the Premier Bank Limited presided over the meeting.

Among other Directors, Abdus Salam Murshedy, Shafiqur Rahman, Shaila Shelly Khan, Md Lutfur Rahman, Masud Jaman, along with Managing Director of the bank Khondker Fazle Rashid, Observer from Bangladesh Bank Mohammad Abul Kashem and Company Secretary Syed Ahsan Habib were also present at the meeting.

The meeting also reviewed some important issues and their implementation in due course.

Social Investment Bank opens 26th branch at Eliotganj

BUSINESS REPORT

Social Investment Bank Limited (SIBL) has opened its 26th branch at Eliotganj, Comilla on October 30 last.

SIBL Chairman Abdul Awal Patwary formally inaugurated the branch as chief guest.

SIBL Vice Chairman Alhajj Nasiruddin and Md Saidur Rahman and Director Munshi Akhtaruzzaman were present as special guests at the opening ceremony which was presided over by the bank's Managing Director KM Ashaduzzaman.

SIBL Directors Kamal Uddin Ahmed and Md Anisul Haque also spoke the occasion. Directors, shareholders, industrialists, businessmen and renowned personalities of the locality were present at the occasion.

In his speech, Abdul Awal Patwary said the difference between the SIBL and other traditional banks is Shariah. As an Islamic bank SIBL works for the good of the poor people.

He explained 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.

The Managing Director of SIBL said Cash Waqf is a unique product of SIBL, which may contribute to the development of mass people and SIBL is the pioneer that is implementing this program.

KM 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-the-art automation technology.

Banglalink, CCOAB launch free voting for New7Wonders Campaign

To make internet facility available for the new7wonders campaign voters, Banglalink is sponsoring free voting from Cyber Cafés of Bangladesh. This program is being carried out with the help of Cyber Café Owners Association of Bangladesh. Under this program of Banglalink and CCOAB, vote will be generated from 250 Cyber Cafés though out the country everyday. In Each Cyber Café, there will be 01 computer dedicated for free voting. Provided by Banglalink, Cyber Cafés' will distribute leaflet, do branding in 250 Cyber Cafes with festoon & bunting and will inspire people to vote for Cox's Bazar.

Banglalink & Cyber Café Association of Bangladesh held a press conference on 1st November to announce their collaboration in the generation of votes for Cox's Bazar in the new7 wonders. Present as Chief Guest was the BPC Chairman, Shafique Alam Mehdi. Also present were Sharfuddin Ahmed Chowdhury, PR & Communication Manager, and Shamnoon Muheb Chowdhury, PR & Communication Executive, Marketing of Bangllaink, Mr. Johirul Hossain - President of CCOAB, Md. Murshadur Rahman - Vice president of CCOAB, Md. Mahtab Hussain - CCOAB, S M Zulfiquer Haider- General Secretary and others CCOAB members and other officials from Banglalink were present.

The collaboration with Cyber Café Association is one of the activities under Banglalink's campaign for Cox's Bazar in the New7Wonders Nature Campaign. A nation wide caravan activity is also taking place, where two well equipped caravans are roaming through out the country to generate votes. Another separate program of voting activities has also been initiated which through voting booths in 72 different educational institutions.

Banglalink is the proud partner of Bangladesh Parjatan Corporation and is the official nominee supporter for Cox's Bazar in new7wonders campaign and is running a vigorous campaign to ensure proper awareness about the new7wonders campaign as well as highly emphasising on generating votes. Banglalink is continuously and actively participating in tourism development under its CSR activities.

Nissan profits slump on high yen

Nissan has reported a 41% fall in half-year profits after it was hit by the high value of the yen and the "severe decline" in the US car market.

Japan's third-largest carmaker made a net profit of 126bn yen ($1.3bn; £803m) between April and September, down from 212bn yen a year earlier.

Despite seeing overall sales rise 4.7%, Nissan said those in the US fell 3.4%.

Its results came as fellow Japanese car firm Suzuki said it expects profits to fall 25% in the year to 30 March.

Blaming weaker sales in India and Europe, Suzuki said its annual net profits would probably fall to 60bn yen from its previous estimate of 80bn yen.

'PROFOUND EFFECT'

Looking ahead, Nissan warned that its profits for the financial year to the end of March may fall by more than two thirds.

It expects a net annual profit of 160bn yen, down from 484bn yen a year earlier, and well short of its previous 340bn yen forecast.

"The global financial and economic crisis has had a profound effect on every area of our industry, with the grip on credit and declining consumer confidence being the most damaging factors," said Nissan chief executive Carlos Ghosn.

He added that the firm was now taking "all necessary and responsible measures to protect the company and preserve our ability to rebound when conditions improve".

At the start of this week, Nissan said it would halt production of two models at its Sunderland plant in the North-East of England due to falling demand caused by the economic downturn.

It said no jobs were affected.

Energypac signs contract with Chint Electric

BUSINESS REPORT

A product launching and distribution agreement signing programme between Energypac Power Generation Ltd and renowned low voltage electrical product manufacturer Chint Electric was held on October 27 last at Bangladesh-China Friendship Conference Centre in the city.

Under the agreement Energypac Power Generation Ltd will be marketing and distributing all kinds of low voltage electric product of Chint. Shekh Humayun Rashid, CEO and Corporate Director, Engineer Nurul Akhter, Director, Rezwanul Kabeer, Director, Jashimuddin, Deputy General Manager of EPGL, Calvin Wu, Manager and Filex Feng of Chint Electric were present, among others, at the programme.