World stocks hit one-week high on trade hopes

World stocks hit their highest levels in over a week on Friday as expectations grew that the US and China would open new trade talks. The MSCI All-Country World index, which tracks shares in 47 countries, was up 0.4 per cent on the day by afternoon trade in Europe. Led by technology and auto stocks, the pan-European STOXX 600 index was up 0.2 per cent, set for its best weekly gains in seven weeks. Tech stocks rose 0.4 per cent after Apple gained on Wall Street following Europe’s close on Thursday. Wall Street was set to open higher on Friday, futures indicated. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.2 per cent. Australian shares were up 0.6 per cent, Seoul’s Kospi rose 1.4 per cent and Hong Kong’s Hang Seng gained 1 per cent. Japan’s Nikkei stock index was 1.2 percent higher, reports Reuters. Chinese shares fell, despite a short-lived bump from data that showed forecast-topping industrial output and retail sales data for August. China’s benchmark Shanghai Composite index was down 0.2 percent and the bluechip CSI300 index rose 0.2 per cent. After rising as high as 6.1442 to the dollar, the lira eased to 6.1025 on Friday. The euro hit a twoweek high, extending Thursday’s gains. The pound reached a six-week high of $1.3139, up 0.3 per cent and set for its second biggest weekly rise of 2018. The dollar eased 0.1 per cent against the yen to 111.89. US crude was 0.4 per cent higher at $68.82 a barrel as Hurricane Florence approached the US east coast. Brent crude rose 0.1 per cent to $78.23 per barrel. Spot gold gained nearly half a per cent to $1205.36 per ounce.

Source: https://thefinancialexpress.com.bd/stock/world-stocks-hit-one-week-high-on-trade-hopes-1536990086

Apparel benefitting from US-China trade war

Bangladesh’s garment sector is turning into a beneficiary of the US-China trade war as American retailers are placing more work orders, but other sectors, such as jute and leather goods, are yet to see an uptick in fortunes. Though China is by far the world’s biggest exporter of manufactured goods, some factory owners over the past decade began moving production to other developing countries such as Bangladesh, Cambodia and Vietnam, said a recent report of The Financial Times. Three out of every 10 buyers Hasanat now serves are from the US — a development of six months. The year-on-year growth of Viyellatex Group’s American buyers is 25 percent. The number will increase further if the Trump administration finally scraps the North American Free Trade Agreement. The value of last year’s global garment business also indicates a declining trend for China. Although China remained the largest apparel supplier globally, its share shrank to 34.9 percent from 36 percent. Bangladesh’s share increased to 6.5 percent from 6.4 percent through exports worth $29 billion, according to data from World Trade Organisation. The Trump administration has so far levied 25 percent tariffs on $50 billion of Chinese industrial goods and is considering imposing similar tariffs on another $200 billion of Chinese exports. China immediately retaliated with a 25-percent tariff on imports of soy beans, other agricultural products and automobiles.

Source: https://www.thedailystar.net/business/news/apparel-benefitting-us-china-trade-war-1634368

Steel corps gets Tk 89 crore to retain Bangladesh Honda’s 30pc share

The finance ministry has allocated Tk 89.67 crore to the state-owned Steel and Engineering Corporation for payment of installment for 30 per cent of shares in the Bangladesh Honda Private Limited, a Bangladesh-Japan joint venture company. The corporation required paying a total of Tk 204 crore for the shares owned by the corporation in BD Honda. The corporation would pay the first installment by Tk 89 crore released by the finance ministry last week. The industries ministry sought the fund to the finance ministry after Honda Ltd of Japan, owning 70 per cent of the shares of BD Honda, decided to run a full-fledged manufacturing plant in Munshinganj with around $60 million investment. Currently, BD Honda is assembling motorcycles at a rented factory in Sreepur, Gazipur which was set up with an investment of Tk 58 crore in 2013. The policy has set a target of producing five lakh motorcycles by 2021 and 10 lakh by 2027 and increase contribution of motorcycle industry to gross domestic product to 2.5 per cent from current 0.5 per cent. Motorbike sales soared nearly by 50 per cent year-on-year to 3.60 lakh units in 2017 because of the duty benefit. Only 1.43 lakh units of motorcycles were sold in 2015. The industries ministry officials also said that by 2025 BD Honda would employ 500 people and produce 10 lakh motorcycles eying export market.

Source: http://www.newagebd.net/article/50663/steel-corps-gets-tk-89-crore-to-retain-bangladesh-hondas-30pc-share