The New Nation - Internet Edition

Deep economic crisis faces president-elect Obama

AFP, Washington

An economy in deep trouble, with rising unemployment, a financial sector in crisis, and a government budget deeply in the red, all face Barack Obama when he takes office in January.

The Democrat campaigned ahead of his Tuesday victory over Republican John McCain on the idea of eliminating tax breaks his predecessor George W. Bush handed wealthy Americans, providing relief to the middle-class and small businesses, and expanding health care to millions of uninsured people.

But the depth of America's economic troubles will challenge him to make good on all his promises.

Obama pledged in his campaign to create "five million new, high-wage jobs" by investing in renewable-energy industries, and "two million jobs by rebuilding our crumbling roads, schools and bridges."

He envisioned instituting a 60-billion-dollar stimulus package, in part to help the millions of home-owners struggling to pay their mortgages.

Some sort of new stimulus is needed for the flagging economy: if nothing is done, according to estimates by Moody's Economy.com, 7.3 million households will likely default on home mortgages by 2010, with up to 4.3 million families losing their homes. Obama has also proposed opening substantial credit facilities for state and local government agencies which have found their own revenue streams hit by the financial meltdown and the slower economy. Obama had planned to source some of those funds from the 700- billion- dollar bailout package approved by Congress in early October to salvage the financial system.

But already half of that has been spent by the Bush administration, mostly to fund the balance sheets of weak banks.

In September when the economic crisis took a sharp turn for the worse, Obama refined his economic plan, hammering home the notion that he was mainly focused on helping the middle class-seen as the primary victim of the economic downturn, hurt most by plummeting home prices and waves of job layoffs.

Jobs will be a key challenge, with a recession widely expected after gross domestic product contracted by 0.3 percent in the third quarter.

Layoffs have risen on a monthly basis this year, with unemployment hitting a five-year high of 6.1 percent in September. To avoid a prolonged recession, Obama has proposed to stimulate consumption, the engine of the US economy, by easing the tax burden for "95 percent of workers and their families." A 3,000-dollar tax credit for businesses that provide domestic jobs was also in the cards.

"When we grow the economy from the ground up, then everybody does better," Obama had told supporters in Ohio Sunday.

But Obama's approach came under attack during the campaign as "socialist," perhaps a warning of some of the resistance he might face once he takes office.

"Under a big government, more-tax agenda, what you thought was yours would really start belonging to somebody else, to everybody else," McCain's vice presidential candidate Sarah Palin told a rally ahead of the vote. Affirming his intent to finance new government expenditures rather than grow the already-massive debt, Obama said he wants to return tax levels to those of former president Bill Clinton's era for people making more than 250,000 dollars per year.

"The US has had the most unequal distribution of wealth" in the past 30 years, economist Max Wolff said, noting that the top 10 percent or people earn fully 30 percent of total income.

Economists saw it as a bit of a balancing act. "Obama has a traditional (Democratic) policy of stimulating expenditures, middle tax cuts and raising taxes for the wealthy. He wants a greater role for the government," Edwin Truman, a senior fellow at Peterson Institute for International Economics, said just before the election.

But "the problem is that we face a big recession and we have a big budget deficit, so the capacity to do anything in terms of spending and tax cuts is very limited," he said.

As president Obama will also face challenges in funding his health care plan. He said he wants to extend health care to the 46 million Americans (out of a total population of 300 million) currently without insurance coverage, in part by making employers provide the insurance or contribute to a public fund that offered it.

PRAN achieves highest VAT payer's award

BUSINESS REPORT

PRAN Agro Ltd, sister concern of PRAN-RFL Group, achieves district-wise highest Value Added Tax (VAT) payer award for the year of 2007-08.

Chief Executive of PRAN-RFL Group Maj Gen Amjad Khan Chowdhury (Retd) received the award yesterday at a function organised by National Board of Revenue (NBR).

Finance and Planning Advisor Dr. A. B. Mirza Md. Azizul Islam handed over the award as the chief guest while Mohammad Abdul Mazid, Chairman of NBR was in the chair. Government high officials, representatives from different business organizations and members of NBR were also present on the occasion. NBR arrange this kind of reward program for the first time since imposing VAT system in 1991.

PRAN Agro Ltd, is the largest food processing company of the country with its manufacturing unit at Natore. It is the first company of Bangladesh Bank's EEF project in Bangladesh. PRAN Agro Ltd started business form 1999 and now a days it is producing Jam-Jelly, Pickle, chutney, sauce-ketch up, Mustered oil, Powdered spice etc and those have already gained consumers confidence in home and abroad.

Meanwhile 67 highest VAT payers in three categories Manufacturing, Business and Service in each district were awarded on the occasion.

Those who are defaulters in Tax paying, In-come Tax cases, violate bank & government debts and loan defaulters were out of the award.

October turns worst for world bourses; Indian mkts lose $62b

PTI, New Delhi

October has proved to be the worst-ever month for world equity markets with investors losing an estimated 5.8 trillion dollars in the month, while Indian markets suffered a loss of nearly 62 billion dollars.

According to global index provider Standard and Poor's, the total loss registered by 52 global equity markets so far this year has been 16.22 trillion dollars amid increasing concerns for the global economy slipping into recession.

"What do you get when you add the underlying concern of the economy and the fear of a worldwide recession to a market already devastated by credit issues? You get the worst-ever month for global equity markets in modern history," Standard & Poor's Senior Index Analyst Howard Silverblatt said.

The data compiled by Standard and Poor's shows that Indian markets have plunged over 64 percent so far this year, while investors have lost a whopping over 270 billion dollars till October in 2008.

In October, Indian equity markets witnessed an erosion of 61.94 billion dollars, with stock prices plummeting nearly 29 percent in the month.

The benchmark index Sensex dropped to below 10,000 from over 13,000, in October.

Overall, world equity markets saw a fall of more than 42 percent in stock prices, leading to a loss of over 16.2 trillion dollars till October this year.

So far this year, in the B.R.I.C. (Brazil, Russia, India and China) region, Russia has been the worst-hit with stock prices dropping by over 65 percent, followed by India (64.70 percent), China (58.87 percent) and Brazil (53.22 percent).

China equities have suffered a loss of 397.47 billion dollars in market valuation, while Brazil and Russia have lost over 308.01 billion dollars and 328.60 billion dollars, respectively, so far this year.

Among the developed countries, equity valuation has plunged by 34 percent in the U.S., while the U.K. saw a drop of 45. 53 percent in the year so far.

U.S. equity markets registered a fall of 5.42 trillion dollars in their market valuations, while in the U.K. investor wealth has plummeted by 1.62 trillion dollars so far this year.

In October, U.S. markets saw stock valuations plummeting by as much as 2.66 trillion dollars and in the U.K. it was close to 464 billion dollars.

WTO head Lamy seeks second term in office

AFP, Geneva

The World Trade Organization confirmed yesterday that Director-General Pascal Lamy will seek a second term to lead the institution charged with forging a new global trade pact.

"I would hereby like to notify you of my decision to seek reappointment as Director-General of the World Trade Organization

for a further term upon the expiry of the current one on 31 August 2009," Lamy said in a letter to the chair of the WTO's General Council. Lamy, the former EU Trade Commissioner and veteran of the French Socialist Party, has headed the WTO since 2004 and has overseen many fruitless attempts to finally clinch a new deal, most recently at a ministerial gathering in Geneva in July.

The Doha round of trade liberalisation talks, launched in Qatar in November 2001 with the aim of boosting developing country economies, has foundered ever since and is currently deadlocked.

"During the last three years I believe that I have done my best" to conclude a deal and strengthen the global multilateral trading system, Lamy said in his letter to Australian ambassador and General Council chair Bruce Gosper.

"We have seen the Doha negotiations move closer to the finish line; we have seen the Aid for Trade agenda take a prominent place as a necessary complement to trade opening; we have welcomed five new members into the organisation," Lamy said.

"I stand ready to continue to serve the WTO for a second term and to make a contribution to reinforcing multilateralism and development," he added.

Earlier the 61-year-old Frenchman won the endorsement of Brazilian Foreign Affairs Minister and chief trade negotiator Celso Amorim, who had been touted in some quarters as a possible successor.

"I support Pascal Lamy's candidature for the new director- general, I told him today," he told journalists after a meeting with the WTO chief in Geneva.

"I encourage him. I think he's a great asset for the organisation, he's someone who has shown fairness, understanding, courage, but at the same time equilibrum, so he has the qualities to continue to steer" the organisation, said Amorim.

Standard Bank holds 136th meeting of Board of Directors

The 136th meeting of the Board of Directors of Standard Bank Ltd. was held on 2nd November, 2008 in the Board Room of Head Office of the Bank.

Chairman of the Board of Directors Kazi Akramuddin Ahmed presided over the meeting. It was attended by Directors Kamal Mostafa Chowdhury, Alhaj Mohammad Shamsul Alam, Alhaj Nurul Haque Sowdagor, Ferdous Ali Khan, Farzana Yousuf, Md. Ziaul Haque Khondker, Shaikh Mesba Uddin and S.S. Nizamuddin Ahmed. Amongst others Managing Director S.A. Farooqui, DMD Md. Nazmus Salehin and Board Secretary AFM Nizamul Islam Chowdhury were also present in the meeting.

The board took various important decisions regarding bank's investment policy in the field of trade, commerce and industries and approved proposals received from different branches in respect of financing of working capital for industries & other import, export and commercial trading businesses.

Bangladeshi co to invest $5m at Adamjee EPZ

M/s. Mottle Industries Limited a Bangladeshi company will set up a Garments Accessories Manufacturing industry in the Adamjee Export Processing Zone.

This100% local owned company will invest US $5 million to set up their plant and will produce Garments Accessories. The company will also create employment opportunity for 260 Bangladeshi including three foreign nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s Mottle Industries Limited in BEPZA Complex, Dhaka today on November 04. Prasanta Bhushan Barua, Member (Investment Promotion) of BEPZA and Saiful Islam, Managing Director of M/s. Mottle Industries Limited signed the agreement on behalf of their respective organization.

Officials of BEPZA and the company were present on the occasion.

Thai product festival begins tomorrow in city

Department of Export Promotion (DEP), Ministry of Commerce, Royal Thai Government will organize a month long retail promotion on Thai products and services at Bashundhara City Expo Center (Level-7), Block-B as from November 7 - December 6 to develop the image of Thailand among the Bangladeshis and to further strengthen bilateral trade between Thailand and Bangladesh.

There are about 45 companies are participating in the event comprising Gems & jewelry, Cosmetics and toiletries, Foodstuffs, Gift & decorative, Auto spare parts, Household & home appliances, Furniture, Electronics, Footwear and Garments, Health services and many more to satisfy the demand of the customers.

Mainly the participants are Bangladeshi who is representing the Thai products & services for last many years. Through this event the customers will be able to find out the desired authentic Thai products and some potential entrepreneurs will be able to be educated about the customers demand on Thai products. This fair is scheduled to open on 7 November 2008 till 6 December 2008, which is open for all.

Moreover, the attraction of the event is "Lucky Draw" which will be organized every week on Saturday at 6:00 p.m. and the winners will be awarded discount coupons and the Mega draw will be organized on last Saturday, which is the last day of the event to find out the fortunate buyers of the occasion. Some attractive prizes will be awarded in the mega draw such as Dhaka - Bangkok - Dhaka Return tickets supported by Thai Airways International and many more prizes of Thailand made.

Krishi Bank disburses Tk1134cr loan during last four months

BUSINESS REPORT

Bangladesh Krishi Bank disbursed loan of Tk. 1134 crore during last four months of the present financial year, which is Tk. 426 crore higher than the disbursement during the corresponding period of the last financial year.

During the same period the Bank recovered loans amounting to Tk. 449 crore which is higher by 8 crore compared to the corresponding period of the last FY.

It is worth mentioning that Krishi Bank geared up delivery of rural and agricultural loans on the context of the devastating cyclone Sidr, which policy is still continuing.

Dr. Siddiqi appointed BRAC Bank Director

Bangladesh Bank has appointed Dr. Hafiz G.A. Siddiqi, Vice Chancellor of North South University (NSU), as Director from the 'Depositors category' to BRAC Bank Limited.

Before joining NSU in 1993, Dr. Siddiqi taught at Ohio State University and Minnesota State University in the US for nine years. Prior to that, he served at the Institute of Business Administration (IBA) for twenty years in various capacities including Professor and Director.

An eminent Economist and the senior-most Business Professor of the country, Dr. Siddiqi, the CEONice Chancellor of NSU for over 10 years, has worked as a consultant to renowned national and international organizations, such as the World Bank, ADB, UN/ESCAP, etc. He is the author or editor of 14 books, and has published numerous articles. His latest book is "The Readymade Garment Industry of Bangladesh," published by UPL. He is the President of India based Association of Management Development Institutions in South Asia (AMDISA), SAARC affiliated association of top Business Schools in the region, and a Member of International Advisory Board of Quest University, the first private university in Canada, and also of the Board of Directors of MIDAS. He additionally serves in the Search Committee to select Vice Chancellors, Pro Vice Chancellors and Treasurers of public universities.

Bangladesh British Chamber delegation arrives on Nov 9

A 30-member delegation of Bangladesh British Chamber of Commerce (BBCC), UK, led by its chairman Shahgir Bakht Faruk, is arriving at Dhaka on November 9 on a nine day visit to Bangladesh.

The delegation comprises Saad Gazi, Senior Vice-Chairman of BBCC and Founder Chairman of Saad Gazi Foundation ATMW, Iqbal Ahmed OBE, President of BBCC Northeast Region and Chairman of Seamark International, Absar M Waess , Secretary General of BBCC, former chairman Moquim Ahmed, directors Monsob Ali, Jamal Uddin Mokoddus, Kabir Reza, Muhib Uddin Chowdhury, MA Rouf, Abdul Muhaimin Mia and Enamul Haque Chowdhury.

Junnun Mahmood Khan, President of Sylhet Chamber Commerce and Industry (SCCI), former president Ahmed Fatuk Misbah and Director Hiskul Guljar and others. Britain's famous tour operator Rodger David Charles is also among the delegation members.

Members of the delegation will attend a views exchange meeting on the proposed "Special Economic Zone at Sylhet" at Dhaka Regency Hotel on November 11.

Education and Commerce adviser Dr Hossain Zillur Rahman, Cultural Affairs Adviser Rasheda K Choudhury, Board of Investment (BoI) Chairman Kamal Uddin Ahmed, Bangladesh Telecommunication Regulatory Commission (BTRC) Cahirman Maj Gen (Retd) Manjurul Alam, National Board of Revenue (NBR) Chairman Md Abdul Mazid, Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) President Anisul Haq, Dhaka Chamber of Commerce and Industry (DCCI) president Hossain Khaled, Sylhet Chamber President Junnan Mahmood Khan will participate in the meeting.

During their visit up to November 17 the delegation members will have meetings with Chief Adviser Fakhruddin Ahmed and Army Chief Gen Moen U Ahmed, Foreign Affairs Adviser Dr Iftekhar Ahmed Chowdhury, advisers of different ministries, British High Commissioner to Bangladesh Stephen Evans, high officials and chamber leaders.

Western Marine participates in German Trade Show 2008

Western Marine Shipyard Limited (WMShL) will participate in the three-day German Trade Show beginning at Bangladesh China Friendship Conference Centre today (Thursday).

The Bangladesh German Chamber of Commerce and Industry (BGCCI) is organizing the first ever trade show to enhance trade and business ties between the two countries with the support of Embassy of the Federal Republic of Germany, Dhaka.

Commerce Advisor Hossain Zillur Rahman is expected to inaugurate the fair. German Ambassador in Dhaka Frank Meyke, Executive Chairman of Board of Investment Kamaluddin Ahmed and FBCCI President Annisul Huq are also expected to attend the inaugural programme as special guests.

The fair will bring manufacturers, Shipbuilders, traders, institutions, exporters, investors and service providers together to forge a better business relation between Bangladesh and Germany.

Around 65 exhibitors in 103 booths are expected to display their products and services at the fair. They will also display German technology at the fair as those have earned an excellent reputation in Bangladesh. The BGCCI will also organize a number of seminars on shipbuilding, leather, financial services and other potential sectors.

The purpose of the participation of WMShL in this event is to make its presence felt, grow awareness in the shipping community of Bangladesh and also amongst the overseas buyers who would be participating in this fair.

WMShL has recently acquired shipbuilding orders from Germany.

World oil prices lower on demand worries

AFP, Singapore

World oil prices were lower in Asian trade yesterday on renewed worries about energy demand in the face of weak global growth, analysts said.

New York's main contract, light sweet crude for December delivery dropped 1.13 dollars to 69.40 dollars a barrel from 70.53 dollars at the close of floor trading in the United States Tuesday.

Brent North Sea crude for December delivery eased 1.19 dollars to 65.25 dollars.

The drop in oil prices came ahead of the release later Wednesday of key US energy data, a gauge of oil consumption in the world's biggest economy. A Platts survey of analysts is expecting crude oil stocks to rise by 500,000 barrels last week and distillates reserves, including heating oil, to increase 1.4 million barrels.

"Worries over the international economic outlook have not disappeared," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.

Oil prices have eased sharply since reaching a record high of above 147 dollars in July. Analysts fear energy demand will drop off if the global economy continues to weaken. Meanwhile, local reports Tuesday said Algeria has slashed oil production by 71,000 barrels per day (bpd) to honor OPEC's decision to reduce global daily output by 1.5 million bpd.

"The energy ministry told Sonatrach (the state-owned energy company) to cut gross national production by 71,000 barrels per day (bpd) beginning November 1," a government source told the APS news agency.

Algeria produced as many as 1.45 million bpd before the energy ministry implemented the cuts.

The Organisation of the Petroleum Exporting Countries announced last month it would cut output starting November to halt the slide in oil prices.

OPEC pumps about 40 percent of the world's oil.