Business
US-Bangla resumes Dhaka-Bangkok flights September 1
Private carrier US-Bangla Airlines will resume its flights on the Dhaka-Bangkok-Dhaka on September 1.
Except for Mondays and Wednesdays, the airline will operate flights on this route, route five days a week, Md Kamrul Islam, general manager (public relations) of the US-Bangla, said Saturday.
The flights will leave Hazrat Shahjalal International Airport at 10:10am and will land at Bangkok's Suvarnabhumi International Airport at 1:40pm (local time).
Read: US-Bangla to operate international flights on four routes from Saturday
The return flights will leave Bangkok at 2:40pm (local time) on the same day and arrive in Dhaka at 4:20pm.
US-Bangla flights on the Dhaka-Bangkok-Dhaka route were grounded due to Covid-19.
Apart from operating flights on all domestic routes, US-Bangla now runs flights to Singapore, Chennai, Male, Guangzhou, Kuala Lumpur, Doha, Sharjah, Dubai, Muscat and Kolkata.
Read US-Bangla resumes Chattogram-Kolkata flights September 1
Jack scales up share in Bangladesh with 'high-quality machinery, competitive pricing'
Chinese sewing machine brand Jack Technology has become a "leading technology provider" in the Bangladesh readymade garment (RMG) industry with its "innovative machinery and total technology solutions."
In Bangladesh, the second largest garment exporter in the world, more local apparel manufacturers are now looking for the perfect solutions to intensify or maximise productivity.
So, the demand for state-of-the-art machinery and automation technology has increased, Jack said at a seminar organised by it in Dhaka Saturday.
The Chinese brand held the "Strategic Benchmarking" seminar for the local importers and marketing officials to improve its development strategy and expand brand influence.
In RMG, the right sewing machine can be the game changer with its impact on productivity, efficiency and quality. And Jack deals in machines that include automatic, energy-saving as well as labour-saving ones.
Jack Bangladesh has understood the needs of the country's apparel industry, which are automation, power saving, and high productivity. The Chinese brand has expanded its business here with its new line of machinery, automatic features, total technology solutions, competitive pricing; high-quality, and energy-saving machines.
Jack Technology was set up on August 7, 2003, in Taizhou, Zhejiang, China. It started the sewing machine business on July 18, 1995.
Read: RMG export growth to be affected by fuel price hike: BGMEA President
Since 2010, the company claimed to have had an absolute advantage in the lockstitch, overlock, and interlock sewing machine market.
RMG export growth to be affected by fuel price hike: BGMEA President
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed concern over the hike in fuel price saying it will have impact on export growth.
BGMEA President Faruque Hassan told UNB on Saturday that many garment industries will suffer losses and a number of them may face risk of shutting down.
“The export earning target set for this year unlikely to be achieved thanks to hike in fuel price. Garment owners will count loss for already received orders and many factories won’t be able to go for new production. As a result, the export target will not be achieved,” he said.
He said there is gas supply crisis in the factories and those are experiencing load shedding for 5-6 hours as per the government decision to save energy. In this situation, the increase in fuel price is a big challenge for the garment sector, he added.
Read: Bangladesh to stay safe, sustainable apparel sourcing destination: BGMEA
As prices of fuel have increased, transport fare and prices of goods will increase, said the BGMEA president adding the salary of the workers should also be increased and then there will be no other option other than closing down many factories.
In an abrupt move, the government increased the prices of diesel, octane and petrol by 42.5 percent, 51.7 percent and 51 percent respectively Friday night. Currently, diesel is being sold at Tk 114 per litre, octane at Tk 135 per litre and petrol at Tk 130 per litre.
Islami Bank recognised for digital services
The Bangladesh Bank has recognised the Islami Bank Bangladesh Limited (IBBL) for its digital services.
The IBBL operated a digital smart payment booth at Gabtoli cattle market under the "Smart Bangladesh Smart Haat" project of the Bangladesh Bank and Dhaka North City Corporation (DNCC).
Read: IBBL awarded as highest taxpayer
DNCC Mayor Atiqul Islam handed over a crest to AFM Kamaluddin, deputy managing director of the IBBL, Wednesday in Dhaka.
Md Khurshid Alam, executive director, Shah Zia Ul Haque, additional director of the Bangladesh Bank; Mohammad Manzurul Haque, senior vice-president of the IBBL, were also present.
How do we know when a recession has begun?
The U.S. economy has contracted for two straight quarters, intensifying fears that the nation is on the cusp of a recession — if not already in one — barely two years after the pandemic recession officially ended.
Six months of contraction is a long-held informal definition of a recession. Yet nothing is simple in the post-pandemic economy. Its direction has confounded Federal Reserve policymakers and many private economists since growth screeched to a halt in March 2020 as COVID-19 struck and 20 million Americans were suddenly thrown out of work.
One sector of the economy that has remained defiantly buoyant is the jobs market and on Friday, the Labor Department will release monthly employment data that most economists believe will show that hiring, too, has begun to cool.
That would be a sizeable shift in an era that may be remembered for having so many unfilled jobs that there were two available for every American who didn’t have one.
Even as the economy shrank over the first half of this year, employers added 2.7 million jobs — more than in most entire years before the pandemic struck. And the unemployment rate has sunk to 3.6%, near a half-century low. Robust hiring and exceedingly low unemployment aren’t consistent with a recession.
While most economists — and Fed Chair Jerome Powell — have said they don’t think the economy is in recession, many increasingly expect an economic downturn to begin later this year or next.
Either way, with inflation raging at its highest level in four decades, Americans’ purchasing power is eroding. The pain is being felt disproportionately by lower-income and Black and Hispanic households, many of whom are struggling to pay for higher-cost essentials like food, gas and rent. Compounding those pressures, the Fed is jacking up interest rates at the fastest pace since the early 1980s, thereby magnifying borrowing costs for homes and cars and credit card purchases.
Read: Inflation hits record 8.9% in euro area, but economy grows
As a result, regardless of whether a recession has officially begun, Americans have increasingly soured on the economy,
So how, exactly, do we know when an economy is in recession? Here are some answers to such questions:
WHO DECIDES WHEN A RECESSION HAS STARTED?
Recessions are officially declared by the obscure-sounding National Bureau of Economic Research, a group of economists whose Business Cycle Dating Committee defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.”
The committee considers trends in hiring as a key measure in determining recessions. It also assesses many other data points, including gauges of income, employment, inflation-adjusted spending, retail sales and factory output. It puts heavy weight on jobs and a gauge of inflation-adjusted income that excludes government support payments such as Social Security.
Yet the NBER typically doesn’t declare a recession until well after one has begun, sometimes for up to a year. Economists consider a half-point rise in the unemployment rate, averaged over several months, as the most historically reliable sign of a downturn.
DO TWO STRAIGHT QUARTERS OF ECONOMIC CONTRACTION EQUAL A RECESSION?
That’s a common rule of thumb, but it isn’t an official definition.
Still, in the past, it has been a useful measure. Michael Strain, an economist at the right-leaning American Enterprise Institute, notes that in each of the past 10 times that the economy shrank for two consecutive quarters, a recession has resulted.
Still, even Strain isn’t sure we’re in recession now. Like many economists, he notes that the underlying drivers of the economy — consumer spending, business investment, home purchases — all grew in the first quarter.
Overall gross domestic product — the broadest measure of the nation’s output — declined at a 1.6% annual rate from January through March because of one-off factors, including a sharp jump in imports and a post-holiday season drop in businesses’ inventories. Many economists expect that when GDP is revised later this year, the first quarter may even turn out to be positive.
“The basic story is that the economy is growing but still slowing, and that slowdown really accelerated in the second quarter,” Strain said.
DON’T A LOT OF PEOPLE THINK A RECESSION IS COMING?
Yes, because many people now feel more financially burdened. With wage gains trailing inflation for most people, higher prices for such essentials as gas, food, and rent have eroded Americans’ spending power,
This week, Walmart reported that higher gas and food costs have forced its shoppers to reduce their purchases of discretionary spending such as new clothing, a clear sign that consumer spending, a key driver of the economy, is weakening. The nation’s largest retailer, Walmart reduced its profit outlook and said it will have to discount more items like furniture and electronics.
Read: India's Mukesh Ambani kickstarts dynastic succession
And the Fed’s rate hikes have caused average mortgage rates to double from a year ago, to 5.5%, causing a sharp fall in home sales and construction.
Higher rates will also likely weigh on businesses’ willingness to invest in new buildings, machinery and other equipment. If companies reduce spending and investment, they’ll also start to slow hiring. Rising caution among companies about spending freely could lead eventually to layoffs. If the economy were to lose jobs and the public were to grow more fearful, consumers would further reduce spending.
The Fed’s rapid rate hikes have raised the likelihood of recession in the next two years to nearly 50%, Goldman Sachs economists have said. And Bank of America economists now forecast a “mild” recession later this year, while Deutsche Bank expects a recession early next year.
WHAT ARE SOME SIGNS OF AN IMPENDING RECESSION?
The clearest signal that a recession is under way, economists say, would be a steady rise in job losses and a surge in unemployment. In the past, an increase in the unemployment rate of three-tenths of a percentage point, on average over the previous three months, has meant that a recession will soon follow.
Many economists monitor the number of people who seek unemployment benefits each week, which indicates whether layoffs are worsening. Weekly applications for jobless aid, averaged over the past four weeks, have risen for eight straight weeks to nearly 250,000, the highest level since last November. While that is a potentially concerning sign, it is still a low level historically.
ANY OTHER SIGNALS TO WATCH FOR?
Many economists also monitor changes in the interest payments, or yields, on different bonds for a recession signal known as an “inverted yield curve.” This occurs when the yield on the 10-year Treasury falls below the yield on a short-term Treasury, such as the 3-month T-bill. That is unusual. Normally, longer-term bonds pay investors a richer yield in exchange for tying up their money for a longer period.
Inverted yield curves generally mean that investors foresee a recession that will compel the Fed to slash rates. Inverted curves often predate recessions. Still, it can take 18 to 24 months for a downturn to arrive after the yield curve inverts.
For the past two weeks, the yield on the two-year Treasury has exceeded the 10-year yield, suggesting that markets expect a recession soon. Many analysts say, though, that comparing the 3-month yield to the 10-year has a better recession-forecasting track record. Those rates are not inverted now.
WILL THE FED KEEP RAISING RATES EVEN AS THE ECONOMY SLOWS?
The economy’s flashing signals — slowing growth with strong hiring — have put the Fed in a tough spot. Chair Jerome Powell is aiming for a “soft landing,” in which the economy weakens enough to slow hiring and wage growth without causing a recession and brings inflation back to the Fed’s 2% target.
But Powell has acknowledged that such an outcome has grown more difficult to achieve. Russia’s invasion of Ukraine and China’s COVID-19 lockdowns have driven up prices for energy food, and many manufactured parts in the U.S.
Powell has also indicated that if necessary, the Fed will keep raising rates even amid a weak economy if that’s what’s needed to tame inflation.
“Is there a risk that we would go too far?” Powell asked last month. “Certainly there’s a risk, but I wouldn’t agree that’s the biggest risk to the economy. The biggest mistake to make…would be to fail to restore price stability.”
US stocks remain mixed amid earnings, economic updates
Stocks were mixed in morning trading on Wall Street Thursday as investors continued to review the latest updates on the economy and corporate earnings.
The S&P 500 fell 0.1% as of 10:16 a.m. Eastern. The Dow Jones Industrial Average fell 52 points, or 0.2%, to 32,760 and the Nasdaq rose 0.1%.
Oil prices edged lower and weighed on energy stocks. Exxon Mobil fell 1.8%. A mix of retailers and industrial companies made solid gains. Best Buy rose 1.9% and Deere rose 1.6%.
The yield on the 10-year Treasury fell to 2.69% from 2.74% late Wednesday.
Read: Asian stocks higher as US-China tensions rise
Stocks have meandered week, leaving major indexes mostly higher. August’s gain follows a standout July that was the S&P 500′s best month since late 2020. But markets remain volatile as investors try to determine the economy’s path ahead amid the highest inflation in four decades and efforts from central banks to fight higher prices.
Earnings remain in focus on Wall Street as investors look for more clues on how inflation is impacting various industries. Twinkie maker Hostess fell 5% after giving investors a disappointing profit forecast for the year. Bleach and consumer products maker Clorox fell 4.2% after also announcing a weak earnings forecast.
47 individuals, enterprises get Walton 'Branding Heroes Award'
Walton has honoured 47 individuals and enterprises with the "Branding Heroes Award" as recognition of their contribution to the company's sales growth through creative branding at the grassroots levels under digital campaigns.
Also read: Walton brings interactive display with 4K resolution
Twenty-one Walton and Marcel distributors and Walton Plazas were awarded for their contribution to the sales growth. Also, 26 employees were honoured in different categories for their outstanding performance in branding activities, sales, sales growth, collection, collection growth and receivable growth.
Walton Hi-Tech Managing Director and CEO Golam Murshed handed over the crests, certificates and crowns to the "Branding Heroes" awardees of Walton and Marcel brands in Dhaka Wednesday, according to a media statement.
Also read: Walton CEO asks co-workers to save electricity
IBBL organises orientation for RDS field officers
Islami Bank Bangladesh Limited (IBBL) recently organised an orientation programme in Dhaka for the new Rural Development Scheme (RDS) field officers.
Mohammed Monirul Moula, managing director and chief executive officer of the bank, was present at the programme as a chief guest. Muhammad Qaisar Ali, additional managing director, also spoke.
SM Rabiul Hassan, principal of Islami Bank Training and Research Academy, presided over the event.
Md Mostafizur Rahman Siddiquee, deputy managing director of IBBL; senior executive vice-presidents Md Mahboob Alam, KM Muniurl Alam Al-Mamoon; executive vice-presidents AKM Shahidul Hoque Khandaker, M Zubayer Azam Helali, Nazmus Sakib, and Md Rezaur Rahman also spoke at the programme.
HSBC to support female entrepreneurs in Bangladesh
HSBC will launch the ‘Female Entrepreneur Fund (FEF)’ in Bangladesh on Thursday in acknowledgment of the challenges that female-owned businesses face.
Female Entrepreneur Fund (FEF) will be launched as part of HSBC’s global commitment to supporting female entrepreneurs.
The aim of the programme is to promote financial inclusivity for women entrepreneurs in Bangladesh through the FEF initiative by supporting: financial literacy, networking, and financing, said HSBC, one of the world’s largest banking and financial services organisations.
Read HSBC Bangladesh gets 1st female head of retail banking
Of HSBC’s clientele base - female led corporates, NGOs that help and promote female entrepreneurship, female led startups and some selected non-customer groups and individuals will be eligible to participate in the programme.
Participants will benefit from access to HSBC’s extensive local and global networks, opportunity to learn and share knowledge among a cohort of female entrepreneurs, workshops and master classes designed for specific needs.
Kevin Green, Country Head of Wholesale Banking, HSBC Bangladesh said finance has a pivotal role to play as a catalyst for change.
Read HSBC, IBA award young talents of Bangladesh with future skills
“Through programmes such as the Female Entrepreneur Fund, we are taking strides to bring financial independence and inclusivity to the communities that we operate in. This initiative will help us to connect our customers and communities with opportunities for growth”.
After a successful launch in 11 markets, Bangladesh joins a number of markets in Asia to the coverage of the programme.
TCB to import 3.30 cr litres of soybean oil from two foreign companies without tender
Trading Corporation of Bangladesh (TCB) , the state marketing agency, will import 33 million (3.30 crore) litres of soybean oil from two companies, one from United Arab Emirates and another from Canada, through direct purchase method (DPM) without any tender process.
Cabinet Committee on Government Purchase (CCGP) in a meeting on Wednesday approved a proposal placed by the Commerce Ministry in this regard.
The committee also approved two separate proposals on fertiliser import which shows that the price of urea fertiliser has substantially decreased in the global market.
Finance Minister AHM Mustafa Kamal presided over the virtual meeting while members of the committee joined it.
Read: TCB to procure soyabean oil, lentil and sugar from business groups
According to the proposal, some 22 million (2.20 crore) litres of edible oil will be procured from Ferrani Polaska Spzoo Food Stuff Trading LLC, UAE (local agent: Shan Trading Ltd, Dhaka) while 11 million (1.10 crore) litres of oil from Canada INC, Canada (local agent: Haque Group, Dhaka).
The entire import will cost Tk 448.82 crore, with each litre costing $1.44 (equivalent to Tk 136) valuing each dollar Tk 94.45. The TCB will sell the edible oil in bottles, each having two litres of oil.
Besides, Bangladesh Chemical Industries Corporation (BCIC) under the Industries Ministry will procure 30,000 metric tons of bagged granular urea fertiliser from Karnaphuli Fertilizer Company Limited (Kafco) at a cost of Tk 157.32 crore, with each metric ton costing $557.87. Earlier, such price was $567.50 per metric ton.
The BCIC will import another 30,000 mt of bulk granular urea fertiliser from Saudi Arabia-based SABIC Agri-nutrients Company at a cost of Tk 158.15 crore, each metric ton costing $560.83. Earlier such price was 597.57 per metric ton.
Meanwhile, the Cabinet Committee on Economic Affairs approved two proposals in principle for import of fertiliser under state-to-state contracts.
Under these contracts, BCIC will import 3.6 lakh metric tons of urea fertiliser from Fertiglobe Distribution Ltd, UAE, Qatar under state to state agreement while Bangladesh Agriculture Development Corporation (BADC) will import one lakh (100,000) metric tons of MOP fertiliser from UAE-based Falco General Trading LLC.
However, the two proposals will require a final approval from the Cabinet Committee on Government Purchase to start the import by stretching prices.