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ADB sets record with $1.42 billion net income allocation from ordinary capital resources in 2023
The Board of Governors of the Asian Development Bank (ADB) on Sunday approved the bank’s 2023 financial statements and a $1.42 billion net income allocation from its ordinary capital resources, the highest in ADB’s history.
The 2023 net income will be allocated as follows:
$1.005 billion to ADB’s ordinary reserve to support the bank’s capital growth and provide an earnings base to generate income;
$292.5 million to the Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries.
Derivative products will be launched in stock market by 2025: BSEC
$110 million to the Technical Assistance Special Fund, which provides technical assistance grants to borrowing members to help prepare projects and undertake technical or policy studies;
$15 million to the Asian Pacific Disaster Response Fund, which provides immediate post-disaster grants to developing member countries for restoring lifesaving services.
Allocable net income is defined as net income after appropriation of guarantee fees to the special reserve and certain adjustments reported in the cumulative revaluation adjustments account.
On May 3, donors and the Asian Development Bank (ADB) agreed to a replenishment of $5 billion for ADB’s Asian Development Fund (ADF) 14 and Technical Assistance Special Fund (TASF) 8.
The commitment was made during ADB’s 57th Annual Meeting.
The ADF is ADB’s largest source of grants for operations in its poorest and most vulnerable developing member countries and is replenished every 4 years.
ADF 14, marking the 13th replenishment since the fund’s establishment, will support grant operations during 2025ÂÂÂ-2028.
The ADF 14 replenishment is about 22% higher than the $4.1 billion available in ADF 13, and will provide eligible ADB members with the largest-ever volume of ADF grants.
AI offers tremendous potential to drive growth, developing countries will miss out if they’re unable to adapt: ADB President
TASF 8 will provide grants that help prepare projects, build capacity, and provide technical or policy advice.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
Established in 1966, it is owned by 68 members-49 from the region.
Profit drops at Warren Buffett's firm but thousands still want to hear from the investing guru
Warren Buffett's company reported a steep drop in earnings Saturday because the paper value of its investments fell and it sold off part of its massive Apple stake, but the tens of thousands of shareholders filling an Omaha arena to hear Buffett answer questions at the annual meeting later can take heart that Berkshire Hathaway's many businesses performed well.
Berkshire reported a $12.7 billion profit, or $8.825 per Class A share, in the quarter. That's roughly one-third of the $35.5 billion, or $24,377 per A share, that Berkshire reported a year ago.
But those figures were heavily swayed by a large drop in the paper value of Berkshire's investments. That's why Buffett encourages investors to pay more attention to the conglomerate's operating earnings that exclude the investment figures. By that measure, Berkshire's operating earnings jumped 39% to $11.222 billion from last year's $8.065 billion as its insurance companies led a strong performance.
The three analysts surveyed by FactSet Research had predicted operating earnings of $6,701.87 per Class A share.
Buffett did sell off nearly $6 billion in stocks during the quarter, including trimming about 13% of Berkshire's massive Apple stake. The investment in the iPhone maker is still the biggest one in the $364 billion portfolio at $135.4 billion, and Buffett said he expects Apple to remain the biggest investment for years — even up to when his successor takes over.
But the estimated value of Berkshire's Apple stake suggests that Buffett sold off more than 100 million shares. Buffett has said he invested in Apple's stock because of how devoted consumers are to the iPhone and other Apple products.
Apple CEO Tim Cook, who is at the Berkshire meeting, told CNBC that he still considers it a privilege to have Berkshire as a major shareholder, and he knew about the sales before Berkshire disclosed them Saturday.
Berkshire reported a $2.6 billion underwriting profit at its insurers, up from $911 million a year ago.
BNSF railroad's profits did disappoint and drop 8% to $1.143 billion, but most of its many other companies delivered solid results, including a 72% jump in operating profits at the utility unit that added $717 million to Berkshire's total.
Berkshire's revenue grew 5% to $89.87 billion in the quarter. The two analysts who reported estimates to FactSet predicted $87.044 billion revenue.
With no major acquisitions in sight, Berkshire's massive cash pile continued to grow to a record $188.993 billion in the quarter. Berkshire even spent $2.6 billion repurchasing shares during the first three months of the year, but its companies that include Geico insurance, BNSF railroad, several major utilities and an assortment of dozens of others keep generating mountains of cash.
“We’d love to spend it but we won’t spend it unless we’re doing something with very little risk that will make us a lot of money,” Buffett said.
THOUSANDS ATTEND WARREN BUFFETT’S ‘WOODSTOCK FOR CAPITALISTS’Tens of thousands filled the arena eager to vacuum up tidbits of wisdom from billionaire Warren Buffett, who famously dubbed the meeting ‘Woodstock for Capitalists.’
But a key ingredient is missing this year: It’s the first meeting since Vice Chairman Charlie Munger died.
The meeting opened with a video tribute to Munger recounting his life and highlighting some of his best known quotes from the meetings over the years that drew applause, including classic lines like “If people weren't so often wrong, we wouldn't be so rich.” The video also featured old interviews with Buffett and Munger talking about their epic friendship.
The video also featured several of the classic skits the investors made for meetings over the years with hoiliday stars like a “Desperate Housewives” spoof where one of the women introduced Munger as her boyfriend and another video where Jaimie Lee Curtis swooned over Munger.
As the video ended, everyone in the arena gave Munger a prolonged standing ovation to thank him for being what Buffett called "the architect of Berkshire Hathaway.
For decades, Munger shared the stage with Buffett every year for the marathon question and answer session that is the event's centerpiece. Munger routinely let Buffett take the lead with expansive responses that went on for several minutes. Then Munger himself would cut directly to the point. He is remembered for calling cryptocurrencies stupid, telling people to “marry the best person that will have you” and comparing many unproven internet businesses in 2000 to “turds.”
He and Buffett functioned as a classic comedy duo, with Buffett offering lengthy setups to Munger's witty one-liners. Together, they transformed Berkshire from a floundering textile mill into a massive conglomerate made up of a variety of interests, from insurance companies such as Geico to BNSF railroad to several major utilities and an assortment of other companies.
Munger often summed up the key Berkshire’s success as “trying to be consistently not stupid, instead of trying to be very intelligent.” He and Buffett also were known for sticking to businesses they understood well.
“Warren always did at least 80% of the talking. But Charlie was a great foil,” said Stansberry Research analyst Whitney Tilson, who was looking forward to his 27th consecutive meeting with a bit of a heavy heart because of Munger's absence.
MEETING THE NEXT GENERATION OF BERKSHIRE LEADERS
That absence, however, may well create space for shareholders to get to know better the two executives who directly oversee Berkshire's companies: Ajit Jain, who manages the insurance units, and Greg Abel, who handles everything else. Abel will one day replace the 93-year-old Buffett as CEO. Abel and Jain are sharing the main stage with Buffett for the first time this year in the spot Munger used to occupy.
The first time Buffett kicked a question to Abel, he mistakenly said “Charlie?” out of habit.
Morningstar analyst Greggory Warren said he hopes Abel will speak up more this year and let shareholders see some of the brilliance Berkshire executives talk about. Ever since Munger let it slip at the annual meeting three years ago that Abel would be the successor, Buffett has repeatedly reassured investors that he's confident in the pick.
Experts say the company has a solid culture built on integrity, trust, independence and an impressive management roster ready to take over.
“Greg's a rock star,” said Chris Bloomstran, president of Semper Augustus Investments Group. "The bench is deep. He won’t have the same humor at the meeting. But I think we all come here to get a reminder every year to be rational.”
It's our collective responsibility to fulfill dream of 'Sonar Bangla' envisioned by Bangabandhu: BGMEA chief
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President S.M. Mannan (Kochi) on Saturday said it is their collective responsibility to fulfil the dream of 'Sonar Bangla' envisioned by the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman.
He said under the visionary leadership of Prime Minister Sheikh Hasina, Bangladesh is progressing towards realizing this dream, with the garment industry playing a significant role.
The industry is committed to achieving the goal of $100 billion in garment exports by 2030, he said.
He said that every citizen of the country will get a better life, and everyone will enjoy the benefits of freedom – the present Board of BGMEA is working with this conviction.
The observations were made when the BGMEA Board led by President S.M. Mannan (Kochi) paid homage to the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman, at his mausoleum in Tungipara, Gopalganj on May 4.
Derivative products will be launched in stock market by 2025: BSEC
The Bangladesh Securities and Exchange Commission (BSEC) will launch derivatives products in the stock market by 2025.
BSEC Commissioner Abdul Halim said this while speaking as the chief guest at a workshop titled 'Financial Derivatives of Exchange Traded Platform-M' organized by Dhaka Stock Exchange (DSE).
The two-day workshops which was held at Brac-CDM in Gazipur, Dhaka ended on Saturday. President of DSE Brokers Association (DBA) President Saiful Islam also spoke in the program as a special guest.
The BSEC Commissioner said, “Our role should change according to the changes in the economy. He said I am hopeful that derivatives products will be launched by 2025. Meanwhile, CCBL (Central Counterparty Bangladesh Limited) will start its operations.”
Derivatives are financial contracts that derive their value from an underlying asset such as stocks, commodities, currencies, etc.
The workshop was held with the participation of top executives from the stock market regulatory body Bangladesh Securities and Exchange Commission (BSEC), CDBL, CCBL, merchant banks, and asset management companies.
Tk 22,776: CPD recommends min wage for tannery workers amid rising costs
The Center for Policy Dialogue (CPD) has suggested setting the minimum wage for tannery industry workers at Tk 22,776, a figure calculated based on the current food prices and inflation rates.
This recommendation was part of a media briefing titled "Challenges of Determining and Implementing Minimum Wages in the Tannery Industry," held at CPD’s office in Dhanmondi, Dhaka on Saturday, May 4.During the briefing, the think tank also advocated for a revision of the wage grading system to ensure fair compensation across the sector.
The research leading to these recommendations was spearheaded by Dr. Khondaker Golam Moazzem, Research Director at CPD, with Senior Researcher Tamim Ahmed presenting the keynote paper.
Key industry stakeholders, including Liaquat Ali Mollah, chairman of the Minimum Wages Board, and Md Shaheen Ahmed, President of the Tanners' Association, were present and contributed to the discussions.
CPD's proposed wage structure takes into account a total monthly expenditure of Tk 33,445, which includes Tk 20,564 for food and Tk 12,881 for non-food expenses. The proposed wage calculation also considers the income of other family members, reflecting a comprehensive approach to wage determination in the current economic context.
Furthermore, Dr. Moazzem highlighted the need for a simplified and unified grading system within the tannery industry, noting the limited opportunities for advancement due to the sector’s diverse job roles.
As there is no scope for promotion within the current system, it is proposed to introduce subgrades within some grades (A, B, and C within Grade 5), which would create opportunities for promotion and enhance worker motivation, stated CPD.
The CPD emphasized the significance of the tannery industry as a key economic sector in Bangladesh, following the garment industry in importance.
According to the Tanners' Association, the industry comprises approximately 200 active tanneries spread across 127 plots in the Savar area, contributing a substantial US $1.2 billion in leather product exports in 2023.
AI offers tremendous potential to drive growth, developing countries will miss out if they’re unable to adapt: ADB President
Asian Development Bank (ADB) President Masatsugu Asakawa on Saturday highlighted harnessing AI for inclusive growth and the need to adopt digital technology and ensure its careful and equitable use.
"Artificial Intelligence offers tremendous potential to drive growth and help address development challenges in areas like healthcare, agriculture, and climate change," he said, shedding light on priority for the future.
The ADB President added that developing countries will miss out if they are not able to adopt this technology.
There are also risks from AI, such as bias and lack of transparency, he said while speaking at the formal opening session of the 57th Annual Meeting at Concert Hall here.
Georgia's Prime Minister Irakli Kobakhidze, among others, was present. A colorful event showcasing the rich Georgian culture followed.
The ADB President said the organization is working hard to strengthen the capacity of the developing member countries to deploy responsible AI solutions that follow an ethical framework and drive inclusive growth.
"We believe that bridging the digital divide, and opening opportunities from AI, are key to a more prosperous future," he said.
Bangladesh secures $8.31 billion remittance in first 4 months of 2024
The ADB President said they have come together at a time when people of the region face challenges that demand close attention and coordination.
"The impacts of climate change are unrelenting, and the risks from conflict and crisis can quickly undermine their livelihoods, and even their survival," Asakawa said.
"Let us move forward together, as we build the bridge to a more prosperous, inclusive, resilient, and sustainable Asia and the Pacific," he said.
Beginning with the threat of climate change, he said this threat cannot be ignored, and their response cannot be delayed.
"2023 was the hottest year on record. We see its effects on people and risks to future development. Crops and food systems are increasingly vulnerable," Asakawa said.
He said the bridge to the future must be one that is inclusive. "No one should be denied the benefits of development because of barriers to obtaining financing."
Driving green globalization
"Our presence in this room demonstrates how deeply our world is connected. We should celebrate this. We should also develop these connections to build greener and more open economies," said the ADB President.
It might be easy to look back at the pandemic, or at current geopolitical tensions and conflicts, and conclude that globalization is dead. "I do not believe it."
"It is true that global trade and supply chains are vulnerable to shocks. But the answer cannot be protectionism and segmentation," Asakawa said, adding that free trade and free movement of capital have benefited the Asia-Pacific region for decades, and this must be the way forward.
IMF delegation holds meetings with energy officials, wants to know govt plan on settling dues
He laid emphasis on exploring how to deepen regional cooperation, in order to build resilience in supply chains, promote cross-border trade, bolster private sector investment, and strengthen financial and tax cooperation.
Trade-related activities account for up to 30% of global carbon emissions
"The uncomfortable truth is that with Asia’s strong growth, our contribution to greenhouse gas emissions is rising," Asakawa said.
He said now is the time to act to reduce global value chain-related emissions for a more sustainable future.
Supporting members with the greatest need
The ADB President stressed that their bridge to the future cannot leave behind those with the greatest need.
"The poorest and most vulnerable populations, including those in small island developing states, face the heaviest burdens from climate change, economic shocks, and conflict," he said.
The ADB chief said their financing must continue to include resources on concessional terms, including grants.
"The Asian Development Fund has been a crucial vehicle for this. And with a replenishment completed on Thursday, we will be able to deliver up to $5 billion to meet these needs," the ADB President said.
India lifts ban on onion export
India has lifted its ban on onion exports with immediate effect, said a notification from the country’s Directorate General of Foreign Trade on Saturday.
While the prohibition for onion export has now been removed, DGFT has set the Minimum Export Price (MEP) for onion at $550 per tonne, according to Indian media.
First consignment of Indian onion being handed over to dealers
This decision coincides with the upcoming phases of the Lok Sabha elections, particularly in the onion producing region of Maharastra.
In December last year, the Indian government restricted the export of onions till March 31, 2024.
First consignment of Indian onions arrives through Darshana port
After nearly five months of the export ban, on February 26, India decided to give an exemption for Bangladesh, as well as five other countries, from its ban export of onions, up to a certain amount.
Last month, the export ban was on onion was extended till further orders.
1650 MT onion to arrive from India tonight: State minister
To check the soaring price of onion, the government had imposed a minimum export price of $800 per tonne on October 28 till December 31, 2023. In August last year, India imposed a 40% duty on the export of onions to improve supplies of the staple vegetable in the domestic market until December 31, 2023.
RMG exports up by almost 5pc in FY 2023-24
The Export Promotion Bureau (EPB) has released the apparel export statistics for the period of July-April FY-2023-24.
During the mentioned period, the readymade garment (RMG) exports grew by 4.97% year-over-year to US$ 40.49 billion from US$ 38.58 billion during the same period of the fiscal year 2022-23, said BGMEA Director Mohiuddin Rubel.
The export of knitwear was US$ 22.88 billion, growth increased by 9.11% and woven garments were US$ 17.62 billion, growth increased by 0.03%, the business group’s leader said.
The single-month apparel export earnings that indicate export in April 2024 was US$ 3.29 billion which decreased by 1.01% growth compared to April 2023, he added.
Bangladesh secures $8.31 billion remittance in first 4 months of 2024
Bangladesh recorded a substantial increase in remittances, receiving $2.04 billion in April, marking a 21.3 percent rise compared to the same period last year.
According to Bangladesh Bank, from January to April this year, the country received a total of $8.31 billion from expatriates, spurred by various bank initiatives aimed at encouraging the flow of remittances.
The figures show a consistent upward trend with $2.11 billion received in January, $2.16 billion in February, $1.99 billion in March, and $2.04 billion in April. This influx has been a boon to the economy, particularly during the ongoing foreign exchange crisis.
Dr. Ahsan H. Mansur, a noted economist, told UNB that Bangladesh could further increase remittances through legal channels by offering more financial and non-financial incentives to expatriates. He highlighted the preference among remitters for using the hundi system, an illegal money transfer method, due to its higher exchange rates, which are Tk 5 to 7 more per US dollar compared to the official rates.
To counter this, Dr. Mansur proposed that the government could introduce various benefits for legal remitters, including health cards, insurance coverage, and pension schemes, to make formal channels more attractive and dissuade the use of illegal methods like hundi.
Debt rescheduling cycle fueling inflation: Dr Farashuddin
Former governor of Bangladesh Bank, Dr. Mohammed Farashuddin, highlighted significant issues plaguing Bangladesh’s economy including persistent high inflation, continued rescheduling of loans, and the government's reliance on printing currency to meet liquidity shortages.
Speaking at the 'Conversation with the Economic Reporters’ Forum' held in Paltan on Thursday, Dr. Farashuddin emphasized the detrimental cycle of liquidity being trapped in rescheduled loans which fails to support money circulation.
According to Dr. Farashuddin, this cycle has led to sustained inflation rates around 10 percent, a situation misunderstood at the policy level of the government. "It should be stopped to get relief from high inflation," he advised, pointing out the necessity for direct intervention.
Dr. Farashuddin criticized the weakening of regulations by Bangladesh Bank and questioned the silence of both the government and the International Monetary Fund (IMF) on issues of money laundering, which he described as "very harmful for the country."
He remarked on the ineffectiveness of current strategies to combat inflation, noting that, unlike other countries, Bangladesh has struggled to control inflation rates hovering near 10 percent for almost ten months.
"Inflation has been brought under control in all countries of the world. But we couldn't. We need to change our monitoring system to control inflation," he asserted, advocating for more direct supervision rather than reliance on passive monitoring methods.
Addressing social disparities, Dr. Farashuddin discussed the growth of the capitalist economy and its correlation with decreasing kindness and increasing inequality. He stressed the need for both economic and political actions to mitigate the widening gap between the rich and the poor.
On the topic of bank mergers, Dr. Farashuddin emphasized that such decisions should be consensual and not forced, reflecting standard practices worldwide. He said that the decision to merge BDBL, BASIC Bank, and Rajshahi Krishi Unnayan Bank (RAKUB) was unnecessary, because these banks have been set up for special needs.
Highlighting the issues of debt default and the high volume of short-term deposits leading to banking problems, he criticized the disproportionate response to loan defaulters of varying scales. "If the defaulters become too big, then it is a problem. Debts must be recovered by taking action against them," he stated, advocating for stronger enforcement measures.
In his closing remarks, Dr. Farashuddin addressed the issue of food inflation, blaming unscrupulous food officials and mill owners for exacerbating consumer prices. He recommended that the government take special measures to increase food stocks in government warehouses to bring relief to the country.
The event also featured comments from ERF President Refayet Ullah Mirdha and Secretary General Abul Kashem, further enriching the discussion on these pressing economic issues.