United News of Bangladesh

Asian stocks fell sharply on Thursday, led by steep losses in South Korea and Japan, as a sell-off in technology shares intensified following a decline on Wall Street over higher-than-expected US inflation. US stock futures also moved lower. South Korea's benchmark Kospi index plunged 8% to 5,527.12. It has fallen more than 16% over the past month and remains well below the record high of 9,000 it crossed in June amid optimism surrounding the global artificial intelligence boom. Samsung Electronics shares dropped 9.7%, while SK Hynix, a South Korean memory chipmaker, plunged 11.1%. Japan's Nikkei 225 index tumbled 5% to 64,334.68. SoftBank Group, an investor in OpenAI, fell 9.6%. Shares of chip equipment maker Tokyo Electron declined 7.5%, while memory chipmaker Kioxia Holdings lost 11.2%. Taiwan's Taiex index, another beneficiary of the AI boom, dropped 3.4%. Taiwan Semiconductor Manufacturing Co. (TSMC), the island's leading chipmaker, fell 1.8% ahead of its earnings report. Hong Kong's Hang Seng index declined 1.3% to 24,009.28, while the Shanghai Composite index fell 2% to 3,692.65. Australia's S&P/ASX 200 edged down 0.2% to 8,710.20. The losses followed a decline on Wall Street on Wednesday. The S&P 500 fell 1.1%, the Dow Jones Industrial Average slipped 0.1% and the technology-heavy Nasdaq Composite dropped 1.9% as AI-related shares came under pressure. Nvidia shares lost 3.2%, Broadcom fell 3.1% and Advanced Micro Devices (AMD) declined 5.7%. The US reported on Wednesday that its consumer price index rose 3.7% year-on-year in September, up from 3.4% in August and above economists' expectations. Stock markets have also been pressured by rising bond yields and volatility in the bond market. Yields on longer-term US Treasury bonds have climbed amid inflation concerns fuelled by the global energy shock linked to the Iran war and the continued increase in US government debt. The yield on the 10-year US Treasury eased to 5.10% after briefly rising above 5.32% on Wednesday. Earlier this month, it reached 5.35%, its highest level since 2002. Oil prices also declined as uncertainty over global supplies and continuing tensions in the Middle East weighed on the market. Brent crude, the international benchmark, fell 1.5% to $104.47 per barrel. However, the price remains significantly higher than the approximately $72 per barrel recorded before the Iran war began in late February. US benchmark crude dropped 1% to $94.17 per barrel.

Bangladesh Bank Governor Md. Mostaqur Rahman has stressed the need for strengthening the activities of the SAARCFINANCE Working Group and boosting bilateral trade and financial cooperation between Bangladesh and Bhutan. He made the observations during a courtesy meeting with Yangchen Chhophel, Governor of the Royal Monetary Authority of Bhutan (RMA), held on Wednesday on the sidelines of the IMF-World Bank Group Annual Meetings 2026 in Bangkok, Thailand. During the meeting, Governor Rahman highlighted the critical role of regional financial coordination and underscored how expanding trade ties between Bangladesh and Bhutan could foster mutual economic resilience across South Asia. Both central bank chiefs discussed various aspects of SAARCFINANCE operations, bilateral trade mechanisms, and avenues for mutual cooperation, describing the high-level dialogue as constructive and highly fruitful. According to a press release issued by Bangladesh Bank, the meeting was also attended by Bangladesh Bank Deputy Governor Dr. Md. Habibur Rahman and Royal Monetary Authority of Bhutan Deputy Governor Ugyen Choden.

Dr. Rüdiger Lotz, Ambassador of Germany to Bangladesh, has recently visited the factories of Akij Cement Company Limited and Akij Essentials Limited, two entities under country’s leading business conglomerate AKIJ Resource, in Narayanganj. He visited the two entities on Tuesday to explore opportunities for strengthening bilateral trade relations and expanding industrial cooperation between Bangladesh and Germany, said a release from Akij group. During the visit, the ambassador and his delegation toured the two manufacturing facilities and gained insights into their production processes, quality control systems and industrial operations. Chief Business Development Officer of AKIJ Resource Mohammad Towfique Hasan welcomed the Ambassador and his delegation to their manufacturing facilities.

Chinese investor KPST will invest US$7.01 million to set up its second manufacturing facility at the BEPZA Economic Zone-1 in Mirsharai, Chattogram, creating employment for 200 Bangladeshis. The company signed a land lease agreement with the Bangladesh Export Processing Zones Authority (BEPZA) at the BEPZA Complex in Dhaka on Wednesday to establish the new factory, KPST New Material (BD) Co., Ltd. Md Tanvir Hossain, Member (Investment Promotion) of BEPZA, and Zhang Youguo, Director of KPST New Material (BD) Co., Ltd., signed the agreement on behalf of their respective organisations. BEPZA Executive Chairman Major General Mohammad Moazzem Hossain and senior officials witnessed the signing ceremony. The company will establish the factory on 7,200 square metres of land in the economic zone. It will manufacture footwear accessories, bag and luggage components, paper products, printed materials and other related items. The facility will have an annual production capacity of 11 million pairs of footwear accessories, 24,000 cubic metres of foam, 200,000 cutting boards and 250,000 cutting dies and moulds, alongside other products.  

Bangladesh's exports to the United Kingdom could rise to USD 10 billion if its share of the UK import market increases from the current 0.49 percent to 1 percent, speakers said at a workshop today, urging exporters to diversify beyond ready-made garments (RMG), meet international standards and make better use of tariff preferences. The Export Promotion Bureau (EPB) organised the workshop, titled "Exporting to the UK: Opportunities Beyond RMG," in association with the Dhaka Chamber of Commerce & Industry (DCCI) and the British High Commission in Bangladesh at the DCCI Auditorium. Speakers said non-RMG products account for only about 6 percent of Bangladesh's merchandise exports to the UK, despite strong demand there for processed food, pharmaceuticals, footwear and furniture. DCCI President Taskeen Ahmed stressed improving product quality, standards compliance, certification, traceability, branding and market intelligence. He also highlighted the importance of utilising benefits under the UK's Developing Countries Trading Scheme (DCTS) and addressing tariff and non-tariff barriers to strengthen bilateral trade and investment. Acting British High Commissioner James Goldman noted the longstanding UK-Bangladesh partnership and said continued UK market access after Bangladesh's graduation from the LDC category would give businesses the certainty to plan, grow and invest. He encouraged more Bangladeshi firms to tap these opportunities. EPB Vice Chairman and Chief Executive (Additional Secretary) Mohammad Hasan Arif presented the keynote paper on export proliferation, diversification and higher-value, non-RMG exports. He called for addressing non-tariff barriers, meeting UK regulatory and product standards, and strengthening testing, certification and production capacity to boost competitiveness. Ellie Parker, Regional Trade for Development Adviser for South Asia, Central Asia and the South Caucasus at the British High Commission, led a technical session on the DCTS. It covered market access before and after LDC graduation, practical guidance on claiming preferential tariffs, and key considerations for exporters. An industry-government panel featuring representatives from customs, footwear and leather goods, seafood, agro-processing, packaging and other sectors discussed market opportunities, export preparation, use of DCTS preferences, export procedures, and common regulatory, technical and operational challenges. An interactive Q&A session followed. Participants underscored the need for stronger collaboration among government agencies, the private sector and development partners to diversify the export basket, improve compliance with international standards and maximise preferential market access, especially as Bangladesh prepares to graduate from the LDC category. DCCI Vice President Md. Salem Sulaiman, members of the DCCI Board of Directors, EPB officials, and representatives from the public and private sectors also attended the workshop.

Biman Bangladesh Airlines will consider increasing the number of flights between Bangladesh and Italy after adding new aircraft to its fleet, said Civil Aviation and Tourism Minister M Rashiduzzaman Millat on Wednesday. “Biman Bangladesh Airlines currently operates six flights a week between Bangladesh and Italy. Considering the convenience of the large number of expatriates living in Europe, plans will be made to increase the number of flights after new aircraft are added to the fleet,” he said. The minister made the remarks responding to a proposal made by Italian Ambassador to Bangladesh Antonio Alessandro during a meeting at Secretariat. During the meeting, they discussed strengthening bilateral cooperation in air connectivity, investment in the aviation sector, the development of maintenance, repair and overhaul (MRO) facilities, and tourism. They also emphasised expanding air connectivity between the two countries. Deputy Head of Mission at the Italian Embassy Federico Zamparelli was also present at the meeting, according to a PID handout. The meeting also discussed attracting Italian investment in Bangladesh’s aviation sector. Focusing on the potential for investment in establishing an aircraft maintenance, repair and overhaul (MRO) hub, the minister expressed Bangladesh’s interest in utilising the expertise and capabilities of Italian companies Edge, Atitech S.p.A. and Gilardoni. Besides, the possibility of establishing a special “red zone” for foreign tourists in Cox’s Bazar also came up for discussion, with the aim of ensuring their safety, comfort and an improved tourism experience. The growing number of Italian tourists visiting Bangladesh was another important issue discussed at the meeting. Both sides expressed interest in signing a memorandum of understanding (MoU) between the two countries to further strengthen cooperation by improving tourist attractions, connectivity and facilities for visitors.  

The U.S. and other wealthy nations need to urgently tackle mounting global debt levels that are weighing most heavily on low-income countries and straining the global financial system, the head of the International Monetary Fund said Wednesday. IMF Managing Director Kristalina Georgieva said Treasury Secretary Scott Bessent and other U.S. leaders recognize that the federal deficit and national debt are too high. But economic growth alone would not be enough to address the country’s more than $40 trillion in national debt, she said. Meanwhile, rising bond yields, reflecting higher premiums demanded by investors for taking on greater risk, have been disrupting financial markets. “We believe that growth, of course, helps, but it cannot deliver fast enough the necessary adjustments,” Georgieva said at the autumn meeting of the IMF and World Bank in Bangkok. “There is no magic,” she said, adding that other measures would be needed. “You have to go in a direction of tightening, bringing it down, bringing the deficit down.” ‘Fiscal consolidation’ faces challenges Rising debt levels and global inflation, partly resulting from high energy costs due to the Iran war, have pushed interest rates to multidecade highs, adding to the burdens of the world’s poorest nations. Efforts to bring debt under control with what Georgieva and other experts call “fiscal consolidation” have suffered setbacks from heavy spending during the COVID-19 pandemic and since. “Fiscal risks are rising, and a proper reaction is largely absent in many countries,” said Rodrigo Valdes, director of the IMF's Fiscal Affairs Department. “And in major advanced economies, the effect of fiscal indiscipline does not stop at the border. It travels to the rest of the world.” “Among the world’s poorest countries, interest payments have reached historic highs relative to revenue, and declining amounts of aid are creating gaps that some countries have been unable to finance,” the IMF's latest Fiscal Monitor said. That is forcing countries to make hard choices between supporting their most vulnerable people and meeting their debt repayment obligations. “The Global South is paying the price for rising interest rates in wealthier countries,” U.K. Foreign Secretary Ed Miliband said at an event on the sidelines of the IMF meetings. “We need a new deal on debt, a deal that supports countries to repay over longer time horizons and, crucially, refinancing with better rates to give developing countries precious fiscal space,” he said. Nations need help with job creation and investment The median developing country pays three times as much in interest as developed countries, said Alexander De Croo, former Belgian prime minister and administrator of the United Nations Development Programme (UNDP). On average, nearly 10% of government spending goes toward debt repayments. High fuel and fertilizer prices, the effects of the El Niño weather phenomenon and rising borrowing costs have left many low-income countries with little room to recover. “I mean, we don’t see really a light at the end of the tunnel,” De Croo told The Associated Press. Creating jobs is another top priority, particularly as the growing use of artificial intelligence threatens to make many traditional occupations obsolete. More than 1.2 billion young people are expected to enter the global workforce over the next decade or so, while forecasts suggest only 400 million net new jobs will be created. The UNDP this week announced its “Jobs for Prosperity” initiative to bring together governments, development banks — such as the World Bank — and private businesses to encourage investment in sectors such as tourism, healthcare and food processing. The initiative and related efforts will help countries attract investment by strengthening governance and policies and developing pipelines of “investible projects,” De Croo said. “These are things that are feasible. It’s been proven that you can do it in many places of the world,” he added. Separately, the IMF, Bank of Thailand and World Bank Group announced a “Bangkok Blueprint” on Wednesday to combat cybercrime, financial fraud and online scams. The announcement came a day after cyberattacks caused refrigeration systems to overheat at hundreds of stores in France.

The government plans to develop the Bangladesh Standards and Testing Institution (BSTI) into an internationally recognised standards body after Bangladesh graduates from the least developed country (LDC) category, Industries Minister Khandaker Abdul Muktadir said on Wednesday. "A BSTI multiplex is being built at a cost of Tk 800 crore, and a BSTI metrology laboratory is being set up at a cost of Tk 450 crore," the minister said while speaking at a programme organised by the BSTI on Bailey Road to mark World Standards Day. The minister said the government will build BSTI on a par with leading international standards organisations, and has already taken steps to increase its manpower. "The government's top priority is to ensure that people have no doubt or fear about the quality of products, especially food items. The government will ensure product quality at any cost," he said. Referring to recent media reports on the presence of the heavy metal lead in soybean oil, he said the BSTI conducted 193 different tests on the matter. "No test found any trace of heavy metal in soybean oil. I can assure you that soybean oil in Bangladesh meets the required standards and people can use it without any worry," he said. Muktadir said the government is also putting emphasis on the quality and accurate measurement of all products, not only food items but also fuel oil and LPG.

Asian shares mostly declined on Wednesday as investors traded cautiously, although continued demand for computer chips and artificial intelligence (AI) technology provided some support to global markets. Japan’s benchmark Nikkei 225 fell less than 0.1% to close at 67,744.29. Australia’s S&P/ASX 200 dropped 0.6% to 8,727.90, while South Korea’s Kospi declined 0.4% to 6,008.81 after recent volatile trading. Hong Kong’s Hang Seng Index slipped less than 0.1% to 24,342.52, while the Shanghai Composite fell nearly 0.9% to 3,767.23. On Wall Street, major US stock indexes ended Tuesday with little change, remaining close to their record levels. Investors assessed the latest corporate earnings reports, with several companies reporting better-than-expected profits, although gains in some stocks were offset by losses in others. The S&P 500 fell less than 0.1%, moving slightly further away from its record high set last week. The Dow Jones Industrial Average dropped 180.45 points, or 0.3%, to 51,670.10, while the Nasdaq Composite declined 41.52 points, or 0.2%, to 27,204.38. The S&P 500 lost 1.79 points to finish at 7,805.45. Goldman Sachs shares initially surged more than 4% after the bank reported third-quarter profits that significantly exceeded analysts’ expectations. However, the gains quickly disappeared, and the stock fluctuated between positive and negative territory before closing down 0.2%. Investors are closely watching corporate earnings as analysts expect profits at companies in the S&P 500 to grow nearly 30% in the third quarter compared with the same period a year earlier, according to FactSet. Companies may need to meet these high expectations to justify the strong gains in their share prices, despite concerns over persistent inflation, rising pressure from the bond market and conflicts in the Middle East. Investors have also raised concerns that share prices of chipmakers may have risen too far amid enthusiasm over AI technology. China’s memory chipmaker CXMT, which is making progress that could increase competition for major industry players, initially gained in Asian trading on Wednesday before giving up its gains. Shares of South Korea’s Samsung Electronics also rose early in the session before losing momentum, while SK Hynix shares declined. In the bond market, US Treasury yields eased after oil prices fell. The yield on the 10-year Treasury note slipped to 5.21% from 5.24% late Friday. The US bond market was closed on Monday for a public holiday. Yields declined after Brent crude prices fell 0.9% to $105.69 a barrel. Oil prices have fluctuated amid uncertainty over when conflicts in the Middle East will allow global energy supplies to return to normal. In energy trading on Wednesday, benchmark US crude rose 0.21% to $94.34 a barrel, while Brent crude, the international benchmark, gained 0.15% to $105.85 a barrel. In currency trading, the US dollar edged down to 158.25 Japanese yen from 158.32 yen. The euro rose to $1.1212 from $1.1203.  

State-owned Sonali Bank has extended a Tk 7,000 crore loan to private sector National Bank under a Bangladesh Bank guarantee to help the struggling lender clear customer dues and resume normal banking operations starting on Thursday. According to central bank sources, depositors had been unable to withdraw their funds from National Bank for an extended period, prompting four depositors to approach the court. Following the court's directive instructing the bank to return the depositors' money, the matter drew the attention of high-level government authorities, who subsequently directed Bangladesh Bank to take steps to normalise the bank's transactions. Following a meeting between Bangladesh Bank Governor Md Mostaqur Rahman, National Bank Chairman Prof Melita Mehzabein and acting Managing Director Zahidul Haque, the central bank decided to provide liquidity support. The directive was later endorsed during a meeting of National Bank's Board of Directors. Sonali Bank Managing Director Shawkat Ali Khan said the bank extended the loan to National Bank at a 10 percent interest rate backed by a Bangladesh Bank guarantee. Under the agreement, if National Bank fails to repay the loan on time, Bangladesh Bank will reimburse Sonali Bank within three days of the loan's maturity. Central bank data reveals that National Bank previously borrowed Tk 985 crore from various banks, which it failed to repay on time, leaving the liability with Bangladesh Bank. Currently, Bangladesh Bank's total claims on National Bank stand at Tk 10,568 crore. National Bank fell under severe financial distress following years of control by the Sikdar Group during the Awami League regime. Following the political changeover in 2024, the group lost control of the bank through central bank intervention. The bank is currently managed by members associated with the Multimode Group, Hosaf Group, and Armana Group, and has been incurring losses annually since 2022. According to Bangladesh Bank statistics, 56.44 percent of National Bank’s total disbursed loans are currently classified as non-performing, amounting to approximately Tk 24,000 crore. The bank faces a provision shortfall of nearly Tk 20,000 crore and recorded a net loss of Tk 1,706 crore in 2024.