United News of Bangladesh

Business leaders from Bangladesh and Thailand on Wednesday stressed the importance of implementing a Free Trade Agreement (FTA) between the two countries to unlock regional trade opportunities. They also have emphasised the need to boost bilateral trade, investment, and economic cooperation to expand market access across Southeast and Asia-Pacific regions. Business leaders form the both country made the observation at a meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Thai-Bangladesh Business Council.  FBCCI Administrator Md Hafizur Rahman presided over the meeting, which was attended by Mr. Panom Thongprayon, Chargé d'affaires of the Royal Thai Embassy in Dhaka. Bangladesh holds 2nd spot in apparel export as Vietnam gains ground  Highlighting the trade potential between Bangladesh and Thailand, Hafizur Rahman said Thailand serves as a major commercial hub in the Asia-Pacific region, while Bangladesh offers a large pool of skilled and young workforce. “These advantages present strong opportunities to enhance the competitive capabilities of both countries,” he said. Rahman identified key sectors for investment cooperation including processed food, tourism, healthcare and pharmaceuticals, infrastructure, energy, and light engineering. He expressed hope that both the countries would move forward with the FTA initiative, which he believes would accelerate the import and export of goods and services and promote bilateral investment.  He further underscored the strategic importance of leveraging regional market access through an FTA in the Asia-Pacific landscape. Chargé d'affaires Panom Thongprayon expressed optimism that Bangladesh and Thailand would work closely to strengthen bilateral trade and mutual cooperation. He said such engagements will further deepen networking among business communities from both countries. President of the Thai-Bangladesh Chamber of Commerce and former President of the Dhaka Chamber of Commerce and Industry (DCCI) Shams Mahmud, Senior Vice President of the Thai-Bangladesh Chamber and former Vice President of FBCCI Md Munir Hossain, Secretary General of FBCCI Md Alamgir, Head of FBCCI’s International Affairs Wing Md Zafar Iqbal were present at the meeting among others. Bangladesh and Thailand are strengthening their trade relationship, with plans to launch formal free trade agreement (FTA) talks by the end of 2025.  Bilateral trade reached USD 1.13 billion in 2024, with Thailand holding the second-largest trading partner position for Bangladesh in South Asia. In 2024, Thailand's exports to Bangladesh were valued at USD 1.04 billion, while Bangladesh's exports to Thailand reached $84.77 million.  Both countries are actively working to expand trade and investment opportunities, particularly in the private sector, focusing on areas like infrastructure, food processing, and ICT.  Thailand exports items like refined petroleum, cement, and rice to Bangladesh, while Bangladesh's exports to Thailand include garments, natural gas, and seafood.   

Asian stock markets showed a mixed performance on Wednesday, reflecting investor caution as the Trump administration continues its aggressive push for revised trade agreements ahead of looming tariff deadlines. Japan’s Nikkei 225 edged up 0.2% to 39,764.02, and South Korea’s Kospi rose 0.5% to 3,132.02. Both Tokyo and Seoul are negotiating with Washington to avoid higher tariffs scheduled to take effect on August 1. Analysts say car and steel exports remain key sticking points in the talks. “Sector-specific exemptions are proving to be the toughest challenge,” noted Stephen Innes of SPI Asset Management. “Japan and Korea are lobbying hard for relief, but the U.S. appears unlikely to offer concessions,” he added. Chinese markets were mixed, with Hong Kong’s Hang Seng falling 0.7% to 23,970.39, while the Shanghai Composite gained 0.3% to 3,507.69. In other regional markets, Australia’s S&P/ASX 200 lost 0.4% to 8,559.30, and India’s BSE Sensex dipped 0.2% to 83,570.86. China bans European medical devices in retaliation against EU trade restrictions Oil prices declined, and the U.S. dollar strengthened against both the yen and euro. Mizuho Bank warned that the looming tariffs are overshadowing deeper concerns over targeted sectoral tariffs designed to isolate China from key global trade networks. “The real risk lies in underestimating China’s potential retaliation, especially if it perceives coordinated actions from the U.S. and its allies,” the bank said. On Wall Street, the S&P 500 slipped 0.1% Tuesday, following its steepest drop in nearly a month. The Dow fell 0.4%, while the Nasdaq posted a marginal gain, remaining close to record highs. Source: Agency 

Asian shares mostly declined on Monday as the Trump administration ramped up pressure on trade partners to finalize new agreements ahead of Wednesday’s tariff deadline. The United States is expected to start sending formal letters to trading partners warning that higher tariffs could take effect on August 1. Japan’s benchmark Nikkei 225 slipped 0.6% to close at 39,577.66, while Hong Kong’s Hang Seng index edged down 0.2% to 23,874.18. South Korea’s KOSPI index, however, rose 0.3% to 3,064.26. In mainland China, the Shanghai Composite Index dipped 0.1% to 3,473.79. Australia’s S&P/ASX 200 also shed 0.2% to end at 8,588.70. Oil prices retreated after OPEC+ agreed on Saturday to boost production by 548,000 barrels per day starting in August. The increase in output follows recent price volatility triggered by Israeli and U.S. attacks on Iran. U.S. benchmark crude dropped 73 cents to $66.27 per barrel, while Brent crude, the global benchmark, declined by 78 cents to $68.02 per barrel. Futures markets also reflected caution, with contracts for the S&P 500 down 0.4% and Dow Jones Industrial Average futures 0.3% lower. “We expect markets to be volatile into the 9-July deadline when the 90-day pause on President Trump’s reciprocal tariffs expires for non-China trading partners,” Nomura Group said in a market commentary. Asian shares mixed as Trump’s tariff deadline looms, while US stocks set records The report noted that the short-term market outlook depends on factors such as which countries are included in Trump’s tariff letters, the rates of the proposed tariffs, and when they would take effect. Nomura added that if the tariffs are implemented at a later date, it could leave room for last-minute trade negotiations and maintain some market optimism for possible resolutions or extensions. “With the July 9 tariff deadline fast approaching, all eyes are trained on Washington, scanning for signs of escalation or retreat. The path forward isn’t clear, but the terrain is littered with risk,” said Stephen Innes, managing partner at SPI Asset Management, in a commentary. Despite concerns over trade tensions, U.S. stock markets posted strong gains last week. On Thursday, a better-than-expected jobs report pushed major indexes higher, with the S&P 500 rising 0.8% to set a new all-time high — its fourth record in five days. The Dow Jones Industrial Average gained 344 points, or 0.8%, while the Nasdaq Composite climbed 1%. In currency trading on Monday, the U.S. dollar strengthened to 145.01 Japanese yen from 144.44 yen. The euro eased slightly to $1.1771 from $1.1779.

China announced on Sunday that European medical device companies will be barred from participating in government procurement if contract values exceed 45 million yuan ($6.28 million), escalating trade tensions with the European Union. The Finance Ministry said the restrictions, effective immediately, exclude European companies that have invested in China and manufacture their products locally. The move follows Beijing's decision on Friday to impose anti-dumping duties on European brandy, primarily targeting French cognac. Although some major brandy producers received exemptions, this marks the latest development in an ongoing series of trade disputes between China and the EU spanning multiple industries. Tensions have been rising since the EU imposed duties on Chinese-made electric vehicles (EVs), prompting China to initiate investigations into European pork and dairy imports. In June, the EU excluded Chinese companies from bidding on government contracts exceeding 5 million euros ($5.89 million). Brussels said the restrictions aimed to pressure Beijing into removing what it described as “significant and recurring legal and administrative barriers” preventing European firms from accessing China's procurement market. China reaffirms commitment to dialogue and cooperation following U.S. trade restrictions lift In response, China defended its latest actions, stating it was left with “no choice but to implement countermeasures.” “China has repeatedly conveyed its willingness to properly resolve differences with the EU through dialogue, consultation, and bilateral government procurement agreements,” said a spokesperson for China’s Ministry of Commerce. “Unfortunately, the EU has ignored China’s goodwill and sincerity and has persisted in imposing restrictive measures and constructing new protectionist barriers.” Source: Agency 

More than half of the world’s low-income countries are either already in or nearing a high risk of debt distress, the World Bank has warned, calling on global leaders to adopt “radical debt transparency” to avert future financial crises. In its latest report, Radical Debt Transparency, the Bank reveals that 54 percent of low-income countries face severe debt vulnerabilities, with many spending more on debt repayments than on essential sectors such as education, healthcare, and infrastructure combined. “Without urgent action, future debt crises will not only be the result of economic shocks, but also of undisclosed and misunderstood liabilities,” said Axel van Trotsenburg, World Bank Senior Managing Director, in a signed commentary accompanying the report. The report underscores that while past international efforts like the Heavily Indebted Poor Countries (HIPC) Initiative provided critical relief, today’s debt environment has grown significantly more complex.  An increasing share of sovereign borrowing now occurs off-budget, through opaque arrangements, collateral-backed loans, and deals with non-traditional lenders. Since 2020, the proportion of low-income countries publishing some form of debt data has risen from under 60 percent to more than 75 percent, the report notes. However, only one in four countries disclose loan-level data on new debt, raising concerns about the depth and consistency of current reporting standards. World Bank approves over $1 billion for projects in Lebanon, Syria and Iraq The World Bank is urging stronger national oversight and full public disclosure of lending terms.  It has also recommended leveraging technology to standardise debt-recording systems and enhance accountability, proposing the development of a joint digital platform for both borrowers and creditors. “Transparency is not a luxury—it’s a necessity,” said van Trotsenburg. “It rebuilds trust with investors and supports long-term growth and stability.” The report comes at a time when developing economies are grappling with shrinking access to affordable financing, further strained by global shocks such as commodity price volatility and climate-induced disasters. While the World Bank and International Monetary Fund have extended technical assistance and financial support to vulnerable nations, and the G20’s Common Framework offers a mechanism for debt resolution, experts believe these measures remain insufficient without more coordinated and comprehensive action. The report concludes by warning that debt crises—once largely reactive—must now be addressed proactively, with radical transparency serving as the first line of defence against yet another lost decade of development.  

Asian shares show mixed performances as Trump’s tariff deadline approaches; US markets hit new highs Asian equity markets ended Friday unevenly after U.S. stocks climbed to fresh record levels amid growing anticipation of President Donald Trump’s July 9 deadline for imposing tariffs. Japan’s benchmark Nikkei 225 dipped 0.6% to close at 39,762.20, reversing earlier gains, while South Korea’s KOSPI slipped 1.2% to 3,078.31. In Hong Kong, the Hang Seng lost 0.6%, settling at 23,914.44, whereas mainland China’s Shanghai Composite edged up 0.4% to 3,475.24. Australia’s S&P/ASX 200 ticked up 0.1% to 8,609.50, and India’s Sensex rose 0.1% to 83,288.73. “Asian markets crept into Friday like someone stepping into a dark alley, ever watchful—because although U.S. equities surged on a post-payroll rally, the vibe in Asia was much more cautious. The reason? That familiar jitters whenever Trump nears the tariff trigger,” wrote Stephen Innes, managing partner at SPI Asset Management. On Wall Street Thursday, a stronger-than-expected U.S. jobs report pushed the S&P 500 up 0.8%, marking its fourth all-time high in five trading days. The Dow Jones Industrial Average gained 344 points (0.8%), and the Nasdaq Composite climbed 1%. South Korean President says US trade deal uncertain as Trump’s deadline approaches Most of Trump’s proposed import levies remain on hold but are set to take effect next week unless he negotiates deals to suspend them. In commodities, U.S. crude oil dipped 19 cents to $68.81 per barrel, while Brent crude eased 30 cents to $68.50 per barrel. In currency markets, the U.S. dollar weakened to 144.48 Japanese yen from 144.92, and the euro inched up to $1.1771 from $1.1761. Source: Agency 

Bangladesh is set to make its highest Asian Clearing Union (ACU) import payment in three years, with around US$2.02 billion due for imports made during May and June. Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, told UNB that the ACU bills are scheduled to be cleared by July 8. The record payment is expected to reduce the country’s gross foreign exchange reserves to approximately $29.66 billion from the current $31.68 billion. Arif Hossain said while such payments do not affect the Net International Reserves (NIR) which currently stand at $20.69 billion. Net reserves are calculated after paying ACU and other external bills, he added. Indices up in first hour of trading, majority stocks gain at DSE and CSE Net reserves can change if the central bank sells dollars from reserves or if the government makes payments for foreign investments or projects, the central bank spokesperson said. According to Bangladesh Bank data, the bi-monthly ACU payments had remained below $1.3 billion throughout 2023. Payments started to rise from September-October 2024, culminating in the latest May-June bill of $2.02 billion—the highest since 2021. The final reserve figures will be confirmed after the ACU settlement and reconciliation of accounts next week, the central bank said. The ACU, headquartered in Tehran, facilitates payments for intra-regional trade among its member countries, including Bangladesh, India, Iran, Pakistan, Sri Lanka, Myanmar, Nepal, Bhutan, and the Maldives.

South Korean President Lee Jae Myung said Thursday that it is still uncertain whether Seoul and Washington will be able to wrap up their ongoing tariff negotiations before the deadline set by U.S. President Donald Trump next week, adding that both sides are still working to clarify their respective positions and find common ground. During his first news conference since taking office last month, Lee also reaffirmed his commitment to mending severely strained ties with North Korea but acknowledged that the deep-rooted distrust between the two Koreas will take significant time to overcome. Lee’s administration, only a month old, faces major challenges, including Trump’s tariff hikes and other “America First” policies, North Korea’s advancing nuclear arsenal, and domestic economic difficulties. The liberal leader came to power after winning a snap election triggered by the impeachment and removal of conservative President Yoon Suk Yeol, following Yoon’s controversial imposition of martial law last December. Asian markets mixed as Wall Street momentum stalls, Tesla drops Lee described the ongoing trade negotiations with the United States as “clearly not easy,” emphasizing that any agreement must be fair and beneficial to both countries. “It’s hard to say definitively whether we’ll reach a deal by July 8. We are putting in our best efforts,” Lee said. “What matters is achieving a truly reciprocal outcome that works for both sides, but so far, both parties are still defining their demands.” Trump’s 90-day suspension of global reciprocal tariffs is set to end on July 9, after which South Korean exports could face tariffs as high as 25%. In addition, Washington has been pushing for increased tariffs on specific South Korean goods, particularly automobiles and semiconductors, which are critical to South Korea’s export-driven economy. There are also growing concerns that Trump may demand that South Korea significantly raise its financial contributions to support the 28,000 U.S. troops stationed on the Korean Peninsula as a deterrent against North Korea. Lee has repeatedly called for patience in the tariff talks, warning that rushing into an early agreement could harm South Korea’s national interests. Reports suggest Trade Minister Yeo Han-koo is preparing for a possible visit to Washington for talks with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. On the North Korean issue, Lee said he intends to revive long-stalled inter-Korean dialogue, noting that North Korea’s deepening military cooperation with Russia is a growing security concern for the region. “I believe we need to improve relations with North Korea based on close coordination and consultation between South Korea and the United States,” Lee said. “But I understand this won’t be easy because of the serious level of mutual distrust and hostility.” Lee had previously faced criticism for allegedly favoring closer ties with North Korea and China over relations with the U.S. and Japan. However, since his election victory, he has repeatedly pledged to pursue pragmatic diplomacy — strengthening South Korea’s alliance with Washington while also seeking improved relations with North Korea, China, and Russia. Critics, however, argue that satisfying all sides will be extremely difficult. Since taking office, Lee’s administration has taken several trust-building steps toward North Korea, including halting propaganda broadcasts along the border and moving to ban activists from sending anti-Pyongyang leaflets by balloon across the border. North Korea has not publicly reacted to these overtures from both Trump and Lee. However, officials noted that North Korean propaganda broadcasts have recently stopped in South Korean border regions. Lee said he has been consulting with national security and intelligence officials about ways to restart dialogue with Pyongyang but did not disclose specific plans. Canada rescinds tech tax, trade talks with US resume: PM Carney Trump has also expressed willingness to resume diplomacy with North Korean leader Kim Jong Un, and Lee has pledged his support for Trump’s efforts. North Korea has refused to engage in talks with the U.S. and South Korea since the collapse of Trump-Kim nuclear negotiations in 2019. Pyongyang has since focused on deepening ties with Russia, supplying troops and weapons to assist Moscow’s war in Ukraine in exchange for economic and military aid.    

Asian shares were mixed on Wednesday, mirroring Wall Street’s lacklustre performance as tech-sector losses, including Tesla’s sharp fall, slowed the market’s recent rally. U.S. futures inched higher, and oil prices saw little movement. In Tokyo, the Nikkei pared early losses but still slipped 0.3% to 39,874.33 as concerns grew over stalled trade talks with the U.S. Market jitters intensified after President Donald Trump warned there would be no extension to his tariff pause beyond July 9. “The negotiating table just turned into a pressure cooker,” said Stephen Innes of SPI Asset Management, noting Trump’s threat of tariffs as high as 35% if Japan does not concede. Hong Kong’s Hang Seng rose 0.6% to 24,220.65, while the Shanghai Composite was nearly flat at 3,456.51. South Korea’s KOSPI lost 1.2% to 3,053.39 as June inflation climbed, and Australia’s S&P ASX 200 edged up 0.4% to 8,580.70. On Wall Street, the S&P 500 dipped 0.1% to 6,198.01, snapping a four-day winning streak. The Dow Jones rose 0.9% to 44,494.94, while the Nasdaq fell 0.8% to 20,202.89. Tesla slid 5.3%, weighed down by the escalating feud between CEO Elon Musk and Trump, which threatens government contracts and subsidies for Musk’s companies. Tesla has now lost over 25% of its value this year. Canada rescinds tech tax, trade talks with US resume: PM Carney Other AI-linked tech stocks also weakened, with Nvidia down 3%, dragging on the broader market. In contrast, casino operators rallied on stronger-than-expected gaming revenue from Macao. Las Vegas Sands jumped 8.9%, Wynn Resorts gained 8.8%, and MGM Resorts rose 7.3%. Automakers also performed well, with General Motors up 5.7% and Ford rising 4.6%. Despite Wall Street’s rebound from a spring sell-off, risks remain. Trump’s paused tariffs are set to resume in a week, potentially hurting economic growth and pushing inflation higher. Planned tax cuts could further increase U.S. debt, adding to inflation concerns. Meanwhile, Barclays strategists noted signs of “excess optimism” among investors, reminiscent of past speculative bubbles. Stocks gain ground and put S&P 500 and Nasdaq on a path for all-time highs In commodities, U.S. crude edged up to $65.46 a barrel, and Brent crude rose to $67.16. The dollar strengthened to 143.58 yen, while the euro slipped to $1.1798. Source: Agency 

Asian shares are mostly higher after U.S. stocks added to their records with the close of a second straight winning month. U.S. futures and oil prices were lower. Japan’s Nikkei 225 fell 1.4% to 39,910.83 despite positive results of the central bank's quarterly Tankan survey of large manufacturers, which showed a better than expected improvement in business sentiment. The Shanghai Composite index added 0.4% to 3,458.56 after China’s official manufacturing purchasing managers index, or PMI, rose to a three-month high of 49.7 in June while the PMI for services and other non-manufacturing businesses also rose to a three-month high of 50.5. Hong Kong's stock market was closed on Tuesday. South Korea’s KOSPI Composite Index rose 0.8% to 3,095.67 after the government reported that exports bounced back in June, helped by strong demand for semiconductors, ships and health products. Australia's S&P/ASX 200 edged up 0.1% to 8,545.10 The PSEi in Manila, Philippines, rose 0.4%. On Monday, Wall Street resumed its upward climb. The S&P 500 rose 0.5% to 6,204.95. It has staged a stunning recovery from its springtime sell-off of roughly 20%. The Dow Jones Industrial Average added 0.6% to 44,094.77, and the Nasdaq composite gained 0.5% to 20,369.73. Stocks got a boost after Canada said it would rescind a planned tax on U.S. technology firms and trade talks with the United States resumed. On Friday, U.S. President Donald Trump had said he was suspending those talks to retaliate for the tax, calling it “a direct and blatant attack on our country.” German minimum wage set to rise by about 14% over the next 18 months U.S. stocks have bounced back on hopes that Trump will reach deals with other countries to lower his painful high tariffs and avert trade wars that could stifle the economy and send inflation higher. Many of Trump’s announced tariffs have been postponed and are due to kick back into effect on July 9. The U.S. stock market recovery could raise the risk Trump will resume escalating tariffs, similar to what happened in 2018-2019, according to strategists at Deutsche Bank led by Parag Thatte and Binky Chadha. GMS’ stock jumped 11.7% after the supplier of specialty building products said it agreed to sell itself to a Home Depot subsidiary in a deal that would pay $110.00 per share in cash. That would give it a total value of roughly $5.5 billion, including debt. Less than two weeks ago, another company, QXO, said it was offering to buy GMS for $95.20 per share in cash. After the announcement of the Home Depot bid, QXO’s stock rose 3.9%, and Home Depot’s stock slipped 0.6%. Hewlett Packard Enterprise rallied 11.1% and Juniper Networks climbed 8.4% after saying they had reached an agreement with the U.S. Department of Justice that could clear the way for their merger go through, subject to court approval. HPE is trying to buy Juniper in a $14 billion deal. Bank stocks were also solid after the Federal Reserve said on Friday that they are financially strong enough to survive a downturn in the economy. JPMorgan Chase climbed 1%, and Citigroup gained 0.9%. In the bond market, Treasury yields fell ahead of several major economic reports later in the week. The highlight will be Thursday’s jobs report. It’s often the most anticipated economic data of each month, and it will come a day earlier than usual because of Friday’s Fourth of July holiday. In other dealings early Tuesday, benchmark U.S. crude oil lost 22 cents to $64.89 per barrel, while Brent crude, the international standard, fell 21 cents per barrel to $66.53. The U.S. dollar dipped to 143.69 Japanese yen from 144.04 yen. The euro rose to $1.1778 from $1.1787.