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.
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.
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.
Mercantile Bank awards scholarships
Mercantile Bank Limited (MBL) awarded scholarships to the meritorious children of the MBL families at a programme in the capital on Saturday. Chairman of the bank A.K.M. Shaheed Reza distributed cheques and certificates among the students as chief guest, chaired by Kazi Masihur Rahman, MD & CEO of the bank. In the same programme, the bank also awarded cash prizes and appreciation letters to 22 of its officers for obtaining Certified Documentary Credit Specialist (CDCS) and Certified Anti-Money Laundering Specialist (CAMS) certifications.
FBCCI takes steps for capacity- building
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has taken several initiatives for capacity- building and making its activities diversified and organised. FBCCI will also work closely with ‘Jacobs, Cordova & Associates’, a USA-based consulting firm, for policy planning, policy design, regulatory impact assessment, and sectoral scan. Besides, FBCCI has decided to work more actively as representative of the private sector of the country to achieve Sustainable Development Goals (SDGs) successfully. FBCCI leaders discussed with regional trade bodies and business community on various macroeconomic aspects of the country, domestic and regional connectivity, ease of doing business, cost of doing business, demand driven human resource development, and sectoral scans of district-level trade and investment.
BD important in South, SE Asia: Indonesian envoy
Bangladesh is a very important state in terms of economic and social aspects for which existing greater communication between
Bangladesh and Indonesia is very much logical and expected. To boost bilateral trade and enhance export potentials, Bangladesh and Indonesia are going to sign a trade agreement on priority basis, she told the meeting. Besides, the Indonesian embassy is working to launch direct air and shipping lines on a priority basis which will help grow the people-to-people and business-to-business relations. She invited the businesses and entrepreneurs of Bangladesh to participate in the 33rd Trade Expo in Indonesia, the biggest ever trade show in Southeast Asia, to be held on October 24-28. Alam mentioned that Bangladesh imported goods worth US $1,107.1 million from Indonesia in fiscal year 2016-17. Bangladesh’s export to the Southeast Asia’s biggest economy was $ 46.39 million in the FY ’17.
Go for rooftop solar panels to raise power output
Factories should make the best use of their rooftops by installing solar panels to get power for their own consumption and for the national grid. The Forum at the National Press Club in Dhaka for Energy Reporters Bangladesh (FERB) and the Solar Module Manufacturers Association of Bangladesh (SMMAB) jointly organised the programme. Bangladesh has pledged to have 100 percent renewable energy by 2050. The goal number seven of the sustainable development goals calls for ensuring access to affordable and clean energy by 2030. Technologically proven that solar home systems can supply power to the grid. The entrepreneur added the price of solar panels has gone down by 30 percent to 40 percent in the last five years and it would fall further. Net metering reduces dependence on the grid power and cuts electricity bill of customers by way of lowering the use of electricity from the grid. Introducing a number of incentives for promoting rooftop solar panels, providing such panel users with cuts in income tax, value-added tax and exemptions from property tax was proposed.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX|| 5,500.61506 ||↓29.20||↓0.53%|
|DJIA||26,154.67||↑ 8.68 ||↑0.03%|
|Nikkei 225||23,094.67||↑273.35 ||↑1.20%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$68.99||↑0.40||↑0.58%|
|Crude Oil (Brent)||$78.09||↓0.09||↓0.12%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8483|
|GBP 1||BDT 109.5730|
|EUR 1||BDT 97.4736|
|INR 1||BDT 1.1669|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.