United News of Bangladesh

Foxtron, an automaker partly owned by Taiwan iPhone manufacturer Hon Hai Technology Group, and Mitsubishi Motors of Japan said Wednesday they have agreed to develop an electric vehicle to be sold in Australia and New Zealand. Hon Hai, also known as Foxconn, is one of a growing number of technology companies that are leveraging their knowhow in electronics and communications to try to break into the EV market, snapping up links in the automotive supply chain, according to an AP report. Foxtron is a joint venture between Hon Hai and Taiwan's Yulon Motor Co Yulon makes Nissan vehicles under license. There was speculation earlier this year, when talks on a possible merger between Nissan and Honda Motor Corp. fell through, that Hon Hai might make a bid for Mitsubishi’s alliance partner Nissan Motor Co. The two companies said Wednesday that the EV developed by Foxtron will be produced by Yulon and introduced in Oceania in the second half of 2026. Foxtron and Mitsubishi Motors gave no financial details and said their memorandum of understanding would be followed by further talks. Japanese automakers like Mitsubishi have been stepping up efforts to compete in the EV segment as they contend with intense competition from their Chinese rivals. China launches a blitz of policies to help its economy, plans talks with the US on trade Mitsubishi has set a target for having all of its product lineup be EVs or hybrids by 2035. Foxtron showcased its Model B, a sleek EV hatchback, and its automotive electronics at the Consumer Electronics Show in Las Vegas in January. Foxconn lists 11 vehicle models on its website, including its Model T bus, Model V pickup truck, Model N van, its Model B, and its “luxury flagship” Model E sedan.

The Progressive Knit Alliance, led by Mohammad Hatem, has announced its 15-point election manifesto for the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) elections for 2025-27. The manifesto was released at a press conference held at a hotel in the capital on Wednesday. During unveiling the manifesto, Hatem, president of knitwear industry owners' organisation BKMEA, said that a war between India and Pakistan will not only have adverse effects on the two countries but also on neighbouring countries. Stock Market dives by 150 points; Is Indo-Pak tension to blame or something deeper? He said, "Just as the country concerned is affected when a war breaks out, so are the neighbouring countries. Bordering countries like ours will also be affected economically." He further said, "We have to import various raw materials including yarn and cloth. In a war situation, import and export will be disrupted, which will directly affect our industry. As a result, we will also face losses in various ways." In this situation, he called on the concerned countries to avoid tension and come to a peaceful solution. Sustainable, equitable economic transformation urged at a seminar The manifesto has called for effective steps to be taken through discussions with the National Board of Revenue (NBR) to ease import and export by removing customs complications. Among these, it has been promised to resolve the complexity of HS Code, remove all obstacles in the import of raw materials and export of goods, simplify the import availability and use method of composite units, remove the complexity of raw material supply from bonded to non-bonded companies and take steps to resolve the ongoing problems of the Bond Commissionerate. In addition, it has been said to force non-bonded companies to obtain bond licenses and thereby remove obstacles to exports. The manifesto calls for discussions with the NBR to stop VAT harassment of export-oriented industries. Taxation system.

The country’s stock market has suffered a major blow, with the Dhaka Stock Exchange (DSE) index dropping by a staggering 150 points in a single day.  Market insiders have largely attributed the fall to rising tensions between Pakistan and India, while others believe that rumours were deliberately spread to destabilise the market. On Wednesday ( May 7), within the first two hours of trading, the DSE’s benchmark index dropped by 120 points.  The downward trend continued throughout the day, with the session ending at a 149-point loss. Abu Ahmed, Chairman of the Investment Corporation of Bangladesh (ICB), a major financier of the capital market, said, “The impact of Indo-Pak tension is clearly visible in the market. This sharp fall is a result of that. If a formal war breaks out between the two countries, it will certainly affect Bangladesh’s market as well.” Dhaka urges ADB, partners to boost development efforts amid global challenges Citing the Russia-Ukraine conflict, he added, “During that war, Bangladesh’s stock market took a big hit. The floor price system was introduced at that time to stabilise the market. If our neighbouring countries go to war, the market will again face severe volatility.” An analysis of the Dhaka market shows that trading started with the index at 4,951 points and ended at 4,802 points—a loss of 3 percent in a single day. Not only the benchmark index but also the Shariah-based DSES index dropped by 41 points, and the blue-chip DS30 index fell by 40 points. Out of 399 companies that traded, the share prices of 385 declined, only 9 rose, and 5 remained unchanged. Across all categories—A, B and Z—most shares lost value.  Notably, among 219 A-category companies, which are generally dividend-paying firms, share prices fell for 215. Exports hit $40.2 billion in 10 months, up 10% y-on-y A similar picture was seen in the Chittagong Stock Exchange (CSE), where the overall index dropped by 270 points.  Among 270 traded companies, share prices fell for 187 and remained unchanged for 10. However, the DSE is not entirely convinced that Indo-Pak tension is the sole reason behind the market plunge.  DSE Director Minhaz Mannan Emon commented, “If the market crash were solely due to Indo-Pak tensions, the situation should have been worse in the Indian and Pakistani markets. But that has not happened. So, while it may be a contributing factor, it’s not the primary cause.” India’s stock market data show that the Sensex index fell by nearly 800 points and the Nifty by 150 points but quickly recovered most of the losses within minutes of opening.  Dhaka stocks edge up, Chattogram still in decline Sector-wise, stocks in media, consumer goods and pharmaceuticals declined, whereas the auto and banking sectors performed relatively well, helping to stabilise the market. In contrast, Bangladesh’s market failed to recover. Asked why Bangladesh’s market could not withstand the pressure, Saiful Islam, President of the DSE Brokers Association of Bangladesh (DBA), said, “The Indo-Pak tension is being used to create artificial panic. The market was already fragile, and this panic only accelerated the downturn.” A managing director of a leading brokerage house, speaking on condition of anonymity, said, “The commission is being run by incompetent people. Until that changes, the market will not improve. Investors have lost all confidence. The Indo-Pak issue is merely a trigger—the real problem lies in the market’s structure and weak administration.” Despite the falling index, trading volume on the DSE crossed Tk 500 crore. According to brokerage house officials, panic was evident from the start of the session, leading to a widespread sell-off and resulting in the market’s poor state.

China has announced a barrage of measures meant to counter the blow to its economy from U.S. President Donald Trump ’s trade war, as the two sides prepare for talks later this week. Beijing's central bank governor and other top financial officials outlined plans to cut interest rates and reduce bank reserve requirements to help free up more funding for lending. They also said the government would increase the amount of money available for factory upgrades and other innovation and for elder care and other service businesses. High tariffs imposed by Trump have begun to take a toll on China’s export-dependent economy, which was already under pressure from a prolonged downturn in the property sector. Late Tuesday, China and the U.S. announced plans for talks between Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng later this week in Geneva, Switzerland. The agreement to talk comes at a time when both sides have remained adamant, at least in public, about not compromising on the tariffs. The talks “could be the pivot point that either locks in fragile confidence or re-ignites the ‘trade war’ inferno,” Stephen Innes of SPI Asset Management said in a report. Both the U.S. and Chinese economies have been showing signs of strain, after a spurt of activity as companies and consumers rushed to beat tariff increases. The U.S. economy contracted by 0.3% in January-March. The Chinese economy grew at a 5.4% annual pact in the first quarter of the year, as factories ramped up production to fill a spike in orders. But economists question the validity of the statistics, and more recent reports show a deterioration in new export orders and business sentiment. Among the support announced by China on Wednesday: First automated driving zone in China aims to demonstrate ‘vehicle-road coordination’ People's Bank of China Gov. Pan Gongsheng said China's reverse repo rate, the rate on commercial banks’ deposits with the central bank, was reduced to 1.4% from 1.5%. The PBOC's lending rate to commercial banks was cut by 0.25 percentage points to 1.5%. The required reserve ratio, or portion of funds banks must hold in their reserves, was cut by 0.5%. Pan said that would free up 1 trillion yuan ($137.6 billion) in extra cash. The central bank also reduced interest rates on five-year housing loans. Financial markets have been reeling as the world's two largest economies remained embroiled in a standoff over Trump's tariffs of as high as 145% on imports of most Chinese products. China has retaliated with tariff hikes of up to 125% on U.S. goods and stopped buying most American farm products. The news of the extra boost for the economy and markets, plus the plans for China-U.S. trade talks, pushed share prices up more than 2% in Hong Kong and 0.5% in Shanghai early Wednesday. U.S. futures also advanced. Japan China and South Korea discuss trilateral cooperation The muted movements were to be expected, Tan Jing Yi of Mizuho Bank said in a commentary. “We do not expect reaction to be euphoric,” Tan said. “Point being, any trade resolution would likely take a long time and in the near term, there may be some piecemeal exemptions or tariff reductions on certain goods.”

The Bangladesh Jewellers Association (Bajus) has increased the gold price again, this time by Tk5972 per bhori, effective from tomorrow (Wednesday). As a result, the price of 22 carat gold will be Tk1,74,948 per bhori (11.664 grams). The association enjoys an effective monopoly over the supply of gold in the market. It is also able to increase the price arbitrarily as the government monitoring of the market is absent. People alleged that they are confused with the frequency of the increases' they think it is too much. They plan to buy gold for festivals and weddings. Although Bajus does not formally import gold, it raises gold price claiming increase gold rate in the global market. In the course of two days, Bajus increased gold price by Tk8282 per bhori. The association increased gold by Tk2310 per bhori on Tuesday again it increased by Tk5972 per bhori on Tuesday, which effective from Wednesday. This marks the 29th adjustment of gold prices in the country this year, with prices increasing 21 times and decreasing only 8 times. In 2024, gold prices were adjusted a total of 62 times, with 35 increases and 27 decreases. According to the new rates, the price of gold per bhori in the Bangladesh market will be: ·       22 Carat: Tk1,74,948 per bhori ·       21 Carat: Tk 1,67,005 per bhori ·       18 Carat: Tk 1,43,104 per bhori Traditional Method: Tk 1,18,459 per bhori

Bangladesh’s gross foreign exchange reserves on Tuesday (May 6) stood at $27.44 billion, according to Bangladesh Bank. By the more commonly used and accepted reserve calculation around the world, that excludes "encumbered reserves", the reserve figure is $22.06 billion, after paying different payments and energy bills. It has climbed back up past $22 billion after 7 months. The foreign exchange reserve is gaining stability gradually after the political changeover on August 5, 2024, as trust rebounds in the economy and banking system. In the first 10 months of the current fiscal year 2024-25 (July to April), the total inward remittance is $24.54 billion. In comparison, the remittance inflow during the corresponding period of the previous fiscal year (FY2023- 24) was $19.11 billion. This indicates a growth of 28.3 percent in remittance flow during this time. Analysts believe that this continued momentum in expatriate income, even after Eid-ul-Fitr, brings relief to the country's economy. March already saw a record $3.29 billion in remittances, the highest ever in a single month in the country's history. Dollar rate for remittance soars as banks compete for overdue payments Ahead of Eid-ul-Adha, Bangladesh expected another record of inward remittance. So the reserve and exchange rate of the dollar get stability. At the same time, local currency taka is strengthening gradually. Notably, every month of the current fiscal year (FY2024- 25) has seen remittances exceeding $2 billion, reflecting the trust of migrant workers in formal banking channels. According to Bangladesh Bank, the exchange rate of the US dollar is decreasing against the taka due to reduced pressure to pay import bills. Bankers believe the price may fall further in the coming days. In the last week of April, banks had to pay between Tk 122.50 and Tk 122.60 to purchase remittance. In contrast, even in the second week of April, banks were paying between Tk 123 and Tk 123.20 for the same. This indicates a decrease of Tk0.50 to Tk0.70 in the dollar's price within two weeks in April.

Bangladesh Bank is set to organise a four-day conference and product fair for women entrepreneurs from cottage, micro, small and medium enterprises (CMSMEs), beginning Thursday at the Bangla Academy premises in the capital. Organised by the central bank’s SME and Special Programmes Department, the event aims to create marketing opportunities for women-led businesses and promote their financial inclusion in the mainstream economy. “This initiative is part of our ongoing mission to encourage women’s participation in entrepreneurship and ensure inclusive access to financial services,” said Arif Hossain Khan, executive director and spokesperson of Bangladesh Bank. DBH Finance announces 17pc dividend amid profit growth Bangladesh Bank Governor Dr Ahsan H Mansur will inaugurate the event as the chief guest on Thursday morning. The fair will remain open to visitors from 10 am to 8 pm daily until May 11. Finance, Science and Technology Adviser Dr Salehuddin Ahmed will attend the closing ceremony as the chief guest. Around 70 entrepreneurs from 49 banks and financial institutions will showcase their products and services in this marketplace creation platform for all-women entrepreneurs.

DBH Finance PLC, a housing finance institution, has proposed a 17 per cent dividend for 2024. The company's Board of Directors, following a recent meeting, recommended a dividend payout comprising 15 per cent in cash and two per cent in stock. This proposal is subject to the approval of shareholders at the upcoming Annual General Meeting (AGM) scheduled for June 19. The financial results for 2024 indicate a positive trajectory for DBH Finance. The company reported a Net Profit After Tax of Tk 100.85 crore, marking a 2.45 per cent increase from the Tk. 98.44 crore recorded in 2023. Furthermore, the company witnessed a 15 per cent growth in loan disbursement and a 12 per cent expansion of its core deposit portfolio compared to the previous year. Dhaka urges ADB, partners to boost development efforts amid global challenges Key financial indicators also showed improvement. The Earnings Per Share (EPS) rose to Tk 5.07 from Tk 4.95, and the Net Asset Value (NAV) per share increased to Tk 47.25 from Tk 43.63 compared to the preceding year. As of December 2024, DBH Finance maintained a robust Capital Adequacy Ratio (CAR) of 30.46 per cent, and its Return on Equity (ROE) for the year stood at 11.15 per cent.

Bangladesh has urged the Asian Development Bank (ADB) and regional partners to boost development efforts in response to global economic, climate and digital challenges. The call came during the 58th Annual Meeting of the ADB, held in Milan, Italy on Monday, according to a Finance Ministry press release issued on Tuesday. Leading the Bangladesh delegation, Finance Adviser Dr Salehuddin Ahmed emphasised the need for urgent action on digital inclusion, climate resilience, regional integration, and sustainable financing. Economic Relations Division (ERD) Secretary Shahriar Kader Siddiky and other officials joined him at the meeting. Speaking before ADB President Masato Kanda and delegates, Salehuddin Ahmed said Bangladesh is undergoing a historic transformation marked by transparency, inclusive growth and sustainable development under the leadership of Nobel Laureate Professor Muhammad Yunus. “At this pivotal moment, ADB’s role as a trusted development partner is more important than ever—not just in financing, but in supporting systemic reform and long-term resilience,” he said. The Finance Adviser outlined four key areas for enhanced collaboration with the ADB, which are Expanding digital infrastructure, e-governance and financial access, and Increasing concessional finance for renewable energy, climate-smart agriculture, and coastal resilience. Bangladesh’s economy holds glimmers of hope amid IMF-ADB’s lower growth forecasts: Experts The others are promoting trade, energy connectivity and regional value chains and broadening access to concessional resources and innovative finance tools to support debt sustainability. Salehuddin Ahmed also warned of Bangladesh’s continued vulnerability to inflation, climate shocks and geopolitical risks, emphasising the need for bold, collective action. “This year’s theme, ‘Sharing Experiences, Building Tomorrow,’ is both timely and inspiring,” he said. In a separate meeting, the Bangladesh delegation held bilateral talks with the UK’s Foreign, Commonwealth & Development Office (FCDO). The UK, which has provided over USD 3.19 billion in development aid to Bangladesh since independence, reaffirmed its support for key priorities, including climate resilience, humanitarian aid and inclusive economic growth. The UK expressed interest in expanding cooperation in renewable energy, trade, digital governance and SME development. Weak grid investment slows Asia-Pacific energy transition: ADB Bangladesh, in turn, sought UK support in areas such as green investment, technical assistance, vocational training, river restoration and cybersecurity.

As Japan’s top trade envoy headed to Washington last week for another round of negotiations on tariffs, a separate bipartisan group under the banner of “Japan-China Friendship” concluded a diplomatic visit to Beijing. Just a week prior, the leader of Japan’s junior ruling coalition party had visited Beijing, where he delivered a letter from Prime Minister Shigeru Ishiba to Chinese President Xi Jinping. While the contents of the message remain undisclosed, the discussions reportedly touched on U.S. tariffs as well as other bilateral matters. Amid China’s outreach to U.S. allies in its trade standoff with Washington, Japan presents a particularly distinctive case. Its strong allegiance to the United States, paired with a complex and sometimes tense relationship with China—largely rooted in lingering historical grievances from 20th-century wartime events—make its position especially notable. “Japan and China are neighbors and have deep economic ties, with much that links them,” said Matthew Goodman, director of the Greenberg Center for Geoeconomics at the Council on Foreign Relations. “But at the same time, there are clear boundaries to how closely Japan is willing to align with China.” While Japan won’t walk away from its alliance with the United States, the linchpin of the Asian country’s diplomacy and security policies, “it’s also true that the tariffs and uncertainty that Trump has created for Japan is really shaking things up in Tokyo,” Goodman said. Last month, President Donald Trump announced a 24% tariff on Japanese goods in a sweeping plan to levy duties on about 90 countries. The White House has since paused the tariffs but a 10% baseline duty on all countries except China, allowing time for negotiations. Still, Trump’s 25% tax on aluminum, steel and auto exports have gone into effect for Japan. The tariff moves, as well as Trump’s “America First” agenda, have cast doubts among the Japanese if the United States is still a dependable ally, while China is rallying support from tariff-threatened countries — including Japan. In Beijing, Japan sees positive signs When Tetsuo Saito led Japan’s Komeito Party delegation to Beijing in late April, China hinted at difficulty in its tariff dispute with the United States, signaling its willingness to improve ties with Tokyo. An unnamed senior Chinese official said his country was “in trouble” when discussing Trump’s 145% tariff on Chinese products, according to Japanese reports. Saito’s visit was soon followed by that of the bipartisan delegation of Japan-China Friendship Parliamentarians’ Union. Zhao Leji, Beijing’s top legislator, told the delegation that China’s National People’s Congress would be “willing to carry out various forms of dialogue and exchanges.” Beijing did not lift a ban on Japan’s seafood imports as the Japanese delegates hoped, but it signaled positive signs on its assessment of the safety of the discharges of treated radioactive wastewater from the Fukushima Daiichi nuclear power plant. Beijing banned Japan’s seafood products in 2023, citing those concerns. Ties between Tokyo and Beijing have long been rocky. In the past several years, they squabbled not only over the seafood ban but also long-standing territorial disputes over the Senkaku, or Diaoyu, islands in the East China Sea, Beijing’s growing military assertiveness and violence against Japanese nationals in China — an issue complicated by the nations’ uneasy history. Tokyo’s closer ties with Washington during Joe Biden’s presidency also upset Beijing, which saw it as part of the U.S. strategy to contain China and has lectured Tokyo to “face squarely and reflect on the history of aggression.” An imperial power in Asia for centuries, China fell behind Japan in the 19th century when Japan began to embrace Western industrialization and grew into a formidable economic and military power. It invaded China in the 1930s and controlled the northeastern territory known as Manchuria. War atrocities, including the Nanking Massacre and the use of chemical and biological weapons and human medical experiments in Manchuria, have left deep scars in China. They have yet to be healed, though Japan’s conservative politicians today still attempt to deny the aggression. Ishiba, elected Japan’s prime minister in October, has a more neutral view on his country’s wartime history than the late Prime Minister Shinzo Abe and his two successors. Weeks after taking office, Ishiba held talks with Xi on the sidelines of a leaders’ summit. Warren Buffett will remain chairman at Berkshire Hathaway when Greg Abel takes over as CEO in 2026 Chinese scholars, however, see Tokyo’s recent engagements with Beijing as a pragmatic move to hedge against U.S. protectionism and not a long-term strategy for stability with China. The odds are low for Japan to move into China’s orbit, Goodman said. “They have for a long time had to manage an important but challenging relationship with China,” he said. “And that is, again, a long-standing problem for Japan, going back centuries or millennia.” Seeking tariff deals and stable ties in the US While Japan might welcome the friendlier tone from Beijing, it is trying to stabilize Japan-U.S. relations under Trump’s “America First” agenda, and it is hoping to settle the tariff dispute without confronting Washington, with an eye on preventing Beijing from exploiting any fallout in Japan-U.S. relations. Japan was among the first countries to hold tariff talks with Washington. During the first round in mid-April, Trump inserted himself into the discussions, a sign of the high stakes for the United States to reach a deal with Japan. The Trump administration reportedly pushed for Japan to buy more U.S.-made cars and open its market to U.S. beef, rice and potatoes. After the second round of negotiation in Washington last week, Ryosei Akazawa, the country’s chief tariff negotiator, said he pushed Japan’s request that the U.S. drop tariffs and was continuing efforts toward an agreement acceptable to both sides. He said Japan’s auto industry was already hurting from the 25% tariff and that he needed to be “thorough but fast.” Asked about China, Akazawa said only that his country keeps watching the U.S.-China tariff development “with great interest.” He noted Japan’s deep trade ties with China.