The New Nation - Internet Edition

Obama vows to confront economic crisis head on

AFP, Chicago

US President-elect Barack Obama said he would act "swiftly" as soon as he takes office to confront the economic crisis head on, during his first news conference since his historic election.

"We are facing the greatest economic challenge of our lifetime. We will have to act swiftly to resolve it," a sober Obama said, with members of his heavy-hitting team of economic advisors standing behind him.

"Immediately after I become president, I will confront this economic crisis head on by taking all necessary steps to ease the credit crisis, help hard-working families and restore growth and prosperity."

Obama however downplayed expectations of a swift rollout of cabinet-level officials, including secretary of the treasury and secretary of state, saying he would move with "deliberate haste" to get the decisions right.

He thanked President George W. Bush for his offer of a smooth transition of power and signalled he would not attempt to intervene in economic policy before his inauguration on January 20.

The press conference reflected a shift in tone towards Obama after the more informal intensity of the election campaign, as reporters stood when he entered the room hosting the press conference and addressed him as "Sir" or "Mr President-elect."

He said that "with certainty" he would back a stimulus package passed in the US Congress before or after his inauguration, and that he would put a high priority on initiatives to help the crippled US auto industry.

Obama also confirmed that he had been sent a letter from Iranian President Mahmoud Ahmadinejad following his victory over Republican John McCain on Tuesday.

"I am aware that the letter was sent," he said. "I will be reviewing the letter from President Ahmadinejad and we will respond appropriately."

However he said that Iran's development of nuclear weapons was "unacceptable" and the Islamic Republic must end its "support of terrorist organizations."

Obama said during his campaign that he would explore the possibility of direct talks with US foes like Iran, North Korea and Cuba as president.

Known for his gifted oratory on the campaign trail, Obama made an uncharacteristic gaffe at the press conference when asked if he had spoken with any former presidents to prepare for the job.

"In terms of speaking to former presidents, I've spoken to all of them that are living," Obama said. He then went on to name a dead president, Abraham Lincoln, as an inspiration, prefacing the remark with a reference to a former first lady's alleged occult activities.

"I didn't want to get into a Nancy Reagan thing about, you know, doing any seances. I have re-read some of Lincoln's writings, who's always an extraordinary inspiration."

Obama later called former president Ronald Reagan 87-year-old widow "to apologize for the careless and off-handed remark he made during today's press conference," Obama transition team spokeswoman Stephanie Cutter said.

The press conference, following Obama's meeting with his economic advisors, came on another brutal day for the US economy.

Official figures showed the US unemployment rate rose to its highest level since 1994 in October, 6.5 percent.

The Labor Department said 240,000 jobs had been cut in October, the 10th straight month of job losses, and new revisions meant that a whopping 651,000 workers have lost their livelihoods in the past three months alone.

But Obama's aides said there would be no further personnel announcements Friday, following the incoming president's selection Thursday of combative Illinois congressman Rahm Emanuel as his White House chief of staff.

Obama started his third day as president-elect with a parent-teacher meeting at his two daughters' school with his wife Michelle, a reminder that the next First Family will be the youngest in decades.

He held more meetings to plan his transition to the White House, and was getting his now-daily classified intelligence briefing from the CIA.

On Friday afternoon Obama called foreign heads of government from Egypt, Italy, Pakistan, Poland, Spain and Saudi Arabia, after speaking Thursday with leaders of Australia, Britain, Canada, France, Germany, Israel, Japan, Mexico and South Korea.

The global financial crisis, the Afghanistan war, climate change and the North Korean and Iranian nuclear crises dominated the conversations, according to accounts from the various capitals.

Most of the allied leaders are to attend an emergency summit of 20 nations on the economic crisis in Washington on November 15. The White House has said Obama will not be at the event.

Several people mentioned as potential Treasury secretary, including Lawrence Summers and former Federal Reserve chief Paul Volcker, were at the meeting on the economy, which also included vice president-elect Joseph Biden.

Regulators shut banks in Texas, California

AP, Washington

Regulators shut down Houston-based Franklin Bank and Security Pacific Bank in Los Angeles on Friday, bringing the number of failures of federally insured banks this year to 19.

The Federal Deposit Insurance Corp. was appointed receiver of Franklin Bank, which had $5.1 billion in assets and $3.7 billion in deposits as of Sept. 30, and of Security Pacific Bank, with $561.1 million in assets and $450.1 million in deposits as of Oct. 17.

The co-founder and chairman of parent Franklin Bank Corp., Lewis Ranieri, is credited with inventing mortgage-backed securities two decades ago, but apparently was unable to save his own company from getting ensnared in the home-loan bust.

The bank's failure is a bitter irony because it is the mortgage securitization business of which Ranieri is known as a pioneer - the repackaging of home loans as bonds that are sold to investors - that was at the heart of the mortgage and credit crises. Last spring, the audit committee of the company's board found in an investigation certain weaknesses in accounting, disclosure and other issues relating to residential real estate loans.

Parent company Franklin Bank Corp. just Sunday said it had received proposals for transactions to strengthen Franklin Bank's capital position and was keeping regulators informed of the talks' progress.

The FDIC said all of Franklin Bank's deposits will be assumed by Prosperity Bank of El Campo, Texas. Its 46 offices will reopen as branches of Prosperity Bank with their normal business hours, including those that open on Saturday. In addition to assuming Franklin Bank's deposits, Prosperity Bank also will acquire about $850 million of the failed bank's assets.

Lafarge Surma receives NBR award for highest VAT payment

Lafarge Surma Cement Limited has been awarded by the National Board of Revenue for being the highest VAT payer from Sunamganj district during the fiscal 2007-2008.

Finance and Planning Advisor of the Caretaker government A B Mirza Azizul Islam handed over a crest to the company at a function organized in Dhaka on Thursday to honour the highest VAT payers at district level.

It may be mentioned that Lafarge Surma Cement Limited started its full operation at its plant at Chhatak, Sunamgnaj early last year. It has paid Tk. 30 crore 15 lakh to the national exchequer as VAT during the last fiscal.

Lafarge Surma Cement factory at Chhatak is the only dry process fully integrated cement plant in the country. With limestone being brought from its captive mine in Meghalaya by a 17 kilometer over land long belt conveyor, it has been producing Supercrete brand of cement.

BRAC Bank opens SME Service Center in city

BUSINESS REPORT

BRAC Bank Limited has inaugurated the first ever SME Service Centre at Elephant Road in the city.

Fazle Hasan Abed, Founder Chairman of BRAC Bank Limited and Chairperson of BRAC formally inaugurated the First SME Service Centre on November 2 last.

Muhammad A (Rumee) Ali, Chairman, BRAC Bank, AEA Muhaimen, Managing Director and CEO; Syed Mahbubur Rahman, Deputy Managing Director; Tarique Amin Bhuiyan, Chief Information Officer; Firoz Ahmed Khan, Head of Retail Banking and Abedur Rahman Sikder, Head of Marketing and Corporate Affairs; other senior officials of BRAC Bank, local dignitaries, a large number of SME entrepreneurs and bank's customers were also present in the event.

The SME Center is a full-fledged service center for BRAC Bank SME customers; where loan information, processing, and loan related documentation & transaction and remittance delivery facility will be provided.

With this first SME service center BRAC Bank has more than 3,000 distribution points across the country.

CWCCI, Bright Bangladesh Forum sign MoU

Our Correspondent, Chittagong

Chittagong Women Chamber of Commerce and Industry (CWCCI) and Bright Bangladesh Forum signed a memorandum of understanding (MoU) on Thursday.

CWCCI President Manwara Hakim Ali and Bright Bangladesh Forum Executive Director Utpol Barua signed the MoU on behalf of their respective sides at the office of the women's small and medium entrepreneurs (SME) trade fair in the port city.

Under the MoU, a project on 'Empowerment of women through durable socio-economic development' will be implemented.

The CWCCI will impart training on 'Basic Beautification Course' to 15 new woman entrepreneurs at the business development and training centre under the MoU. The training programme would build the new entrepreneurs as efficient beauticians, which would ultimately help create an enormous scope of self-employment.

ActionAid Bangladesh has provided financial assistance for implementing the project.

Islami Bank holds Board of Directors meeting

BUSINESS REPORT

A meeting of the Board of Directors of Islami Bank Bangladesh Limited was held on Thursday at the Board Room of the Bank at Islami Bank Tower.

Prof. Abu Nasser Muhammad Abduz Zaher, Chairman, Board of Directors of the Bank presided over the meeting. Foreign and Local Directors including Yousif Abdullah Al-Rajhi, Representative of Al-Rajhi Company for Industry and Trade and Dr. Abdul Hameed Fouad Al-Khateeb of Saudi Arabia were present in the meeting.

The meeting evaluated the performance of the Bank and expressed it's satisfaction over the success & progress achieved so far and took some important business decisions.

Aims of Bangladesh to float provident mutual fund

BUSINESS REPORT

The Aims of Bangladesh Limited, an asset management company, is preparing to float a provident mutual fund, a new product at the country's capital market.

'We are preparing to bring in a provident mutual fund as the SEC recently through an amendment to its mutual fund rules allowed trust fund, and registered provident and pension funds to float mutual funds,' said Yawer Sayeed, managing director and chief executive officer of the Aims of Bangladesh.

He said the proposed mutual fund would be the BRAC provident mutual fund. BRAC is one of the leading non-governmental organisations in the country.

The SEC amendments broadened the scope of floating mutual funds, which are useful instruments of institutionalising the retail investors, he said.

Bringing more mutual funds at the market will widen the doors for retail investors to put money on stocks under the institutional frame, he added.

A senior official of the SEC said Thursday that the revised rules came into effect recently after gazette notification.

Sayeed said, 'Asset management companies play a significant role in developing the stock market, bringing mutual funds and providing other capital market related services.' 'Entering three more asset management company in the country's market this year is a good sign for the market,' he said.

The Aims of Bangladesh, which was registered in December 1998, is a sole private asset management company.

Privately-owned the Venture Investment Partners Bangladesh Ltd, LR Global Bangladesh Asset Management Company Ltd, and RAC Management Company Private Limited, and state-owned ICB Asset Management Company Ltd are the four other asset managers in the country.

The Venture Investment Partners Bangladesh got SEC approval on April 1 this year, while LR Global Bangladesh Asset Management Company got the approval on June 3 and RAC Management Company Private on September 16.

'We will bring two more mutual funds - BGIC Mutual Fund and IDLC Mutual Fund next year,' said Sayeed adding that 'The Aims of Bangladesh is also working to bring a mutual fund for the non-resident Bangladeshis.'

Currently, the Aims of Bangladesh manages the Aims First Guaranteed Mutual Fund, floated in 2000, and the Grameen Mutual Fund One, floated in 2005, and the Grameen Mutual Fund Two, floated in 2008.

The three closed-end mutual funds are listed with the Dhaka Stock Exchange and the Chittagong Stock Exchange.

The Aims of Bangladesh CEO said, 'Currently, we manage assets worth Tk 250 crore.'

The company also provide other capital market-related services including corporate advocacy, he added.

Individual tax filing deadline extended to Nov 12

Individuals have until November 12 for filing income tax returns under an extended deadline, the National Board of Revenue said.

The NBR has extended for a third time the date for submission of income tax return for the current tax year. The last date for submission of income tax return by the taxpayers of individual category was Thursday.

In a press release Thursday evening, it said the deadline had been extended on requests by different chambers, organisations and agencies.

The press release said the extension will also be applicable to the self-assessment taxpayers of the individual category.

"Over four lakh taxpayers submitted returns, from which the government netted Tk 700 crore up until Wednesday," Mohammad Abdul Mazid, the NBR chairman, said.

He said on Thursday only two lakh taxpayers submitted their income tax returns.

He hoped this year the government would earn more than the previous year's Tk 739 crore.

The annual Sept. 30 deadline is normally extended each year; this year the NBR initially stretched it by another month to Oct. 31 and then again to Nov. 6.

Last year the government extended the deadline twice up to Nov 30.

Mazid said income tax laws allow an individual some days over the official deadline to file returns, by appealing to the officials of the tax zone concerned.

He stressed, however, that the tax payer must show "valid cause."

BA to suspend flights from Dhaka next year

British Airways will suspend its Dhaka-London passenger flights from March because of non-profitability of the route.

'The decision to suspend flights between Dhaka and London has been a difficult one to make. However, the route is not making a profitable contribution to our business and we are unable to sustain it,' Amanda Amos, the airline's Area Commercial Manager for South Asia, said in a statement.

The airline, however, will continue cargo operations using connecting flights via the Middle East, said the release issued on Friday.

It added the customers who had booked British Airways flights after March 28, 2009 from Dhaka will be contacted by the airline about making alternative arrangements.

British Airways has been operating flights to and from Bangladesh since the mid-1970s, at present operating three flights a week between Dhaka and London.

GM, Ford investors brace for deep losses

Reuters, Detroit

General Motors Corp and Ford Motor Co posted more than $27 billion of net losses in the first half of 2008 - and that was before a deepening economic slowdown pushed industry sales beyond 15-year lows.

What either automaker will report for an encore in the third quarter could be overwhelmed by the potential merger of Chrysler LLC into GM or various other scenarios of some or all of the Auburn Hills, Michigan automaker being sold.

Both are expected to post dismal third-quarter results on Friday, capping off a disastrous week that started with reports that US auto sales plunged to the lowest annualized rate in a quarter century in the first month of the fourth quarter.

Analysts on average expect GM and Ford to post losses of roughly $2 billion each for the third quarter excluding one time items, according to Reuters Estimates.

Cash flow remains key to investors, who saw GM stock fall to a 58-year low and Ford stock to a more than quarter century low in October, as does US consumer confidence, which fell to a record low in October.

A deal to unite GM and Chrysler hit a wall after the Bush administration last week ruled out funding it, leaving any merger between the companies contingent on federal aid under the next administration, people familiar with the talks said.

October sales fell from bad to worse amid the financial sector failures that forced a $700 billion bailout plan in the United States and numerous props for banks in other countries.

'Auto companies just don't make money in a recession,' Morgan Stanley analyst Adam Jonas said in an October note to clients referencing the slowdown in European automaker results that is just as relevant for US companies.

While the talks between GM and Chrysler owner Cerberus Capital Management LP have taken most of the spotlight, Ford also has had discussions with policymakers about the challenges facing the industry and the automaker.

'We just want to make sure we continue that ongoing dialogue and make sure that whatever happens there is a degree of parity,' Mark Fields, Ford's president of the Americas, told reporters last week.

Ford earlier in 2008 said it would accelerate plans to bring European-designed cars to North America and convert some pickup truck plants to car production. It is expected to provide a business plan update on Friday.

Mercantile Bank, Trust Exchange sign deal

BUSINESS REPORT

Mercantile Bank Limited entered into a remittance arrangement with Trust Exchange UK Limited at function held in UK.

Dewan Mujibur Rahman, managing director and chief executive officer, and head of international division of Mercantile Bank, attended a seminar on community dialogue on remittance and finance recently with a view to increasing the inflow of remittance. Trust Exchange UK organised the seminar on its office premises in Cardiff of Wales, UK, said a press release.