United News of Bangladesh

Finance Minister AHM Mustafa Kamal has said G-20 can play a major role in resolving the ongoing global economic crisis. He also expressed hope that Bangladesh will soon be included as a member of the G-20 alliance, the finance ministry said in a press release today. Kamal expressed the optimism at the G-20 meeting in Gujarat, India. The Bangladesh delegation led by the finance minister and the governor of Bangladesh Bank, Abdur Rauf Talukdar, is participating in the conference which is being held in Gandhinagar, Gujarat of India. Also read: Mustafa Kamal attending G20 Finance Ministers' Conference in Gandhinagar The finance minister said that G-20 is an international economic alliance consisting of 20 industrialized countries of the world. This alliance was formed to bring together important industrialized and developing countries of the world to discuss key issues of the global economy. “We need to be more aware of this and to resolve this crisis, we must be sincere.. the G-20 alliance can play a very important role,” Kamal said. Also read: Finance Minister briefs parliament on BFIU's activities He said that participating in the G-20 process is a unique opportunity for Bangladesh. Bangladesh will also participate as a “guest country” in the G-20 summit to be held on September 9, 10. Prime Minister Sheikh Hasina has also been invited to attend the summit of heads of state and governments. Also read: Budget not based on IMF conditions: Finance Minister  

China's exports tumbled 12.4% in June from a year earlier as demand weakened after central banks raised interest rates to curb inflation even as Chinese leaders struggled to keep a post-COVID recovery from faltering. Customs data released Thursday showed imports slid 6.8% to $214.7 billion. Exports edged up slightly from the month before, totaling $285.3 billion. The trade surplus was $70.6 billion, rising from $65.8 billion in May. Trade weakness adds to downward pressure on the world's second-largest economy. Global consumer demand has weakened after the Federal Reserve and central banks in Europe and Asia raised interest rates to bring inflation down from near multi-decade highs by reining in business and consumer activity. Also read: Overtaking US, India will become second largest economy in the world by 2075: Goldman Sachs In January-June, China's total trade including imports and exports fell nearly 5% from a year earlier. Exports slipped 3.2% and imports declined 6.7% as prices of commodities like oil fell and demand inside China also faltered. Exports to the United States tumbled 23.7% from a year earlier to $42.7 billion, a six-month low, while imports of American goods sank 4.1% to $14 billion. China's politically volatile trade surplus with the United States narrowed by 30.6% to $28.7 billion. Trade also has been dampened by tension with Washington and restrictions on access to U.S. processor chips and other technology in a feud with Beijing over security and Chinese industrial policy. Chinese factories assemble most of the world's smartphones and other electronics. Also read: Persistent inflation, rising interest rates will weigh on global economy, OECD predicts "With the global downturn in goods demand continuing to weigh on exports, we think exports will decline further for now before bottoming out toward the end of the year," Zichun Huang of Capital Economics said in a commentary. "But the good news is that the worst of the decline in foreign demand is probably already behind us." Imports from Russia were up 15.7% to $11.3 billion. China has been buying more Russian oil and gas to take advantage of price cuts. That has helped shore up the Kremlin's cash flow after the United States, Europe and Japan cut off most purchases to punish Moscow for President Vladimir Putin's invasion of Ukraine. Beijing can buy Russian oil and gas without triggering Western sanctions. China has also become Russia's biggest export market and an important source of manufactured goods. Exports to Russia surged 90.9% in June from the year before to $9.5 billion. Also read: Sri Lanka reduces interest rates for 1st time since bankruptcy as economy shows signs of rebounding The ruling Communist Party set this year's official economic growth target at "around 5%," up from last year's 3% expansion, which was the second-weakest since the 1970s. Some economists raised their growth forecasts to closer to 6% following unexpectedly strong trade figures in March. In April, the government announced steps to support struggling exporters, including by making more trade finance available and encouraging cross-border e-commerce. A five-month campaign launched late April also is meant to increase trade by improving logistics and cutting costs for exporters in 17 cities including Beijing and Shanghai.  

The three-day Global Sourcing Expo Sydney 2023 has begun at the International Convention Centre in Sydney, Australia. Some 22 companies from Bangladesh in the fields of apparel, textile, jute, home decor, and gifts are participating in the event under the initiatives of the Bangladesh High Commission in Canberra. Among them, eight exhibitors in readymade garments are funded by the Export Promotion Bureau of Bangladesh. Read: Trade in Rupee with India will start a new era of trade in different currencies: Experts Bangladesh High Commissioner to Australia, M. Allama Siddiki, and Chief Executive of the organizing firm, Marie Kinsella, inaugurated the exhibition of Bangladeshi products at the Global Sourcing Expo. The Consul General of Bangladesh in Sydney, Commercial Counsellor and other officers of the High Commission were present there. Australia’s global sourcing trade show is held twice a year with expos in Sydney and Melbourne. It brings together more than 350 manufacturers and suppliers from around the world. Read: Chinese company to invest US$ 76.41 million at BEPZA Economic Zone This international trade show provides a platform for businesses to showcase their products, explore new markets, and establish valuable connections. The expo provides enhanced opportunities for global exporters, manufacturers, and producers to reach their targeted trade-buying audience. Read: Deal signed to import 1.80 lakh tonnes of fertiliser from Russia Apparel scores top in Bangladesh-Australia bilateral trade. The ready-made garment (RMG) constitutes about 93% of total export to Australia. Bangladesh is the 32nd largest trade partner of Australia.  

Bangladesh will start trade with India in Rupees in order to reduce stress on the US dollar requirements from Tuesday . Experts and businesses opined that it will save $2 billion dollars at least annually, which Bangladesh may use for other purposes. Besides, a significant portion of the dollar will be saved from the informal sector, which was spent by travelers to India for different purposes, following another initiative of dual currency cards, they said. Former governor of Bangladesh Bank (BB) Dr Atiur Rahman told UNB that Bangladesh's trade in Indian Rupees will start in regional trade with an alternate currency which will also incorporate Bangladesh Taka subsequently. Read: Despite over 8% revenue collection growth, Tk 44000 crore shortfall in FY 2022-23 This will help take some pressure off the ACU payment settlement which takes place every two months, he said. However, this will be only a small step as there is a huge imbalance in Indo-Bangladesh trade, Dr Atiur said. “Bangladesh exports about $2 billion to India against India exporting nearly eight times of that amount. So, our designated banks can open accounts in Indian designated banks and put export proceeds in Rupees,” he opined. Read: Khurshed Alam elected chair of Finance Committee of the International Seabed Authority Similarly, Indian banks can open Taka accounts in Bangladesh banks to put their export proceeds in Taka to a limited extent. The rest of the payments will continue conventionally in dollars, he said. The dollar being the dominant currency, the trading in Indian Rupee will be only partial and experimental. “We will learn by doing. One should not be complacent about it, although this can be a new way of transactions in regional alternate currencies,” Dr Atiur added. Read: Bangladesh Bank working to normalise inflation and dollar crisis despite geopolitical challenges President of India-Bangladesh Chamber of Commerce and Industry (IBCCI) Abdul Matlub Ahmad told UNB that Bangladeshi traders incur an additional cost of 4-6 percent that will be saved if taka-rupee transactions are started.  

The three-day Bhutan Trade and Investment Fair is ending on Sunday. The Bhutan Embassy in Dhaka organised the fair as the first in Bangladesh, which was inaugurated by Commerce Minister Tipu Munshi at Gulshan Shooting Club in the capital on Friday. Read: Chinese company to invest US$ 76.41 million at BEPZA Economic Zone The event was attended by Bhutanese Heads of Missions, Business Chairpersons, Executives of top business organizations and other officials. Around 25 companies from Bhutan have participated in this fair. Even at the fair they showcased premium quality products made in Bhutan and produced in Bhutan. Read: Deal signed to import 1.80 lakh tonnes of fertiliser from Russia Tipu Munshi said that India, Japan, South Korea have already come forward to invest in Bangladesh’s economic zones. There is also a chance for Bhutan to come. “I will request Bhutan, come to Bangladesh, invest in economic zones,” the minister said.

Chinese Company Mingda (Bangladesh) New Material Co Ltd is going to invest USD $76.41 million at BEPZA Economic Zone for producing diversified products. The company signed an agreement with Bangladesh Export Processing Zones Authority (BEPZA) to this effect at BEPZA Complex, in Dhaka on Thursday. Ali Reza Mazid, Member (Investment Promotion) of BEPZA, and Huang Shangwen, Director of Mingda (Bangladesh) New Material Co. Ltd signed the agreement on behalf of their respective organizations. Also read: Chinese envoy lauds FAO’s role in Bangladesh’s agriculture development  BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman witnessed the signing ceremony. BEPZA Executive Chairman thanked Mingda (Bangladesh) for choosing Bangladesh as well as BEPZA EZ as their investment destination. He said that BEPZA mainly emphasized on three things to establish a factory in EPZ- diversified products, amount of investment, and employment. He urged Mingda (Bangladesh) to start the construction of the factory as early as possible and requested for the optimum use of land. Also read: Chinese company to invest $6 million in BEPZA Economic Zone Huang Shangwen, Director of Mingda (Bangladesh) said that they have some factories in China. Now they are going to set up factories in Bangladesh due to increasing wages of workers of China. Mingda (Bangladesh) will produce different Cotton products including Imitation Silk Cotton, Tile Cotton, Needle Punched Cotton; different types of Artificial/Manmade Fabric, Artificial Fabrics including Geotextile; different Hospital products and Bags & Packaging Items including Geo-bag, Non-woven bag etc. 2830 Bangladesh nationals will get employment opportunity in the factory. Also read: China says PM Hasina's remarks against sanctions reflect a ‘large part of int'l community's mind’ Among others, Member (Engineering) Mohammad Faruque Alam, Member (Finance) Nafisa Banu, Executive Director (Investment Promotion) Md. Tanvir Hossain, Executive Director (Enterprise Services) Md. Khorshid Alam and the Project Director of BEPZA EZ Mohammad Anamul Haque were present during the signing ceremony. Including Mingda (Bangladesh), BEPZA signed lease agreements with total of 21 companies of home and abroad to establish factories in BEPZA EZ and their total proposed investment exceeded over US$ 500 million. Also read: Bangladesh, China interested in contributing to regional connectivity under BRI  

Ford has planned a return to the 24 Hours of Le Mans with its iconic Mustang muscle car next year under a massive rebranding of Ford Performance aimed at bringing the automotive manufacturer “into the racing business.” The Friday unveil of the new Mustang Dark Horse-based race car follows Ford's announcement in February that it will return to Formula One in 2026 in partnership with reigning world champion Red Bull. The Mustang will enter the GT3 category next year with at least two cars in both IMSA and the World Endurance Championship, and is hopeful to earn an invitation to next year's 24 Hours of Le Mans. The IMSA entries will be a factory Ford Performance program run by Multimatic, and a customer program in WEC with Proton Competition. Ford CEO Jim Farley told The Associated Press the Mustang will be available to compete in various GT3 series across the globe to customer teams. But more important, Farley said, is the overall rebranding of Ford Performance — done by renowned motorsports designer Troy Lee — that is aimed at making Ford a lifestyle brand with a sporting mindset. Read: Tesla cars performing ‘dance of lights’ to 'Naatu Naatu' goes viral “It's kind of like the company finding its own, and rediscovering its icons, and doubling down on them,” Farley told the AP. “And then this motorsports activity is getting serious about connecting enthusiast customers with those rediscovered icons. It's a big switch for the company — this is really about building strong, iconic vehicles with enthusiasts at the center of our marketing." Ford last competed in sports car racing in 2019 as part of a three-year program with Chip Ganassi Racing. The team scored the class win at Le Mans in 2016 in a targeted performance aimed to celebrate the 50th anniversary of Ford snapping Ferrari’s six-year winning streak. Ford on Friday displayed a Mustang with a Lee-designed livery that showcased the cleaner, simplified look that will soon be featured on all its racing vehicles. The traditional blue oval with Ford Performance in white lettering underneath will now be branded simply FP. The new mark will be used across car liveries, merchandise and apparel, display assets, parts and accessories and in advertising. Read: Tesla says it sold a record 1.3 million vehicles last year Farley cited Porsche as an automaker that has successfully figured out how to sell cars to consumers and race cars in various series around the world while creating a culture of brand enthusiasts. He believes Ford's new direction will help the company sell street cars, race cars, boost interest in driving schools, and create a merchandise line that convinces consumers that a stalwart of American automakers is a hip, cool brand. “We're going to build a global motorsports business off road and on road,” Farley told the AP, adding that the design of the Mustang is “unapologetically American.” Read: Ford to cut 1,100 jobs in Spain after other European layoffs He lauded the work of Lee, who is considered the top helmet designer among race car drivers. “We're in the first inning of a nine inning game, and going to Le Mans is really important,” Farley said. “But for customer cars, getting the graphics right, designing race cars that win at all different levels, and then designing a racing brand for Ford Performance that gets rebranded and elevated is super important.” He said he's kept a close eye on how Porsche and Aston Martin have built their motorsports businesses and said Ford will be better. “We're going in the exact same direction. We just want to be better than them, that's all,” Farley said. “Second is the first loser.” Read: 1,265 vehicles imported from Japan and Singapore arrive at Ctg port Farley, an avid amateur racer himself, did not travel to Le Mans for the announcement. The race that begins Saturday features an entry from NASCAR and Ford is the reigning Cup Series champion with Joey Logano and Team Penske. The NASCAR “Garage 56” entry is a collaboration between Hendrick Motorsports, Chevrolet and Goodyear, and is being widely celebrated throughout the industry. Farley did not feel left out of the party in France — a sentiment NASCAR tried to avoid by inviting many of its partners to attend the race so that it wouldn't seem like a Chevrolet-only celebration. “They're going right and I'm going left — that NASCAR thing is a one-year deal, right? It's Garage 56 and they can have their NASCAR party, but that's a one-year party,” Farley said. "We won Le Mans outright four times, we won in the GT class, and we're coming back with Mustang and it's not a one-year deal. “So they can get all excited about Garage 56. I almost see that as a marketing exercise for NASCAR, but for me, that's a science project,” Farley continued. “I don't live in a world of science projects. I live in the world of building a vital company that everyone is excited about. To do that, we're not going to do a Garage 56 — I've got to beat Porsche and Aston Martin and Ferrari year after year after year.”  

A deal has been signed between the government and a Russian company to import 180,000 MT of muriate of potash (MOP) fertiliser from Russia in the fiscal year 2023–24. Bangladesh Agricultural Development Corporation (BADC) and Podintorg Director General Andrey Sergeyevich signed the agreement in the Russian capital Moscow on Thursday (1 June). Agriculture Secretary Wahida Akhtar, BADC Member Director Abdus Samad and Deputy Head of Agriculture Ministry Badiul Alam were present during the signing ceremony.  

Bangladesh has signed a new deal with Qatar to get an additional 1.5 million tons per annum (MTPA) of liquefied natural gas (LNG) for the next 15 years from 2026. Bangladesh’s state-owned Petrobangla signed the new agreement with Qatar’s state-owned Ras Laffan Liquefied Natural Gas Company Ltd., (Qatargas) at a function at Qatari capital Doha on Thursday. State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Qatar’s State Minister for Energy Saad Sherida al-Kaabi were present at the contract signing ceremony, said a press release of the Ministry of Power, Energy and Mineral Resources. Energy secretary Dr Khairuzzaman Majumder was also present on the occasion. Petrobangla chairman Zanendra Nath Sarker and Executive Vice President (Marketing) of Qatar Energy Trading LLC Abdulla Ahmad Ai-Hussaini signed the contract on behalf of their respective sides. Under the new deal, Qatar will supply an additional about 1.5 MTPA of LNG per year from 2026 to 2040. Of this, Bangladesh will get 12 LNG cargoes in 2026 and 24 cargoes in 2027. Currently, Bangladesh has been importing 1.82-2.5 million MTPA of LNG since 2018 under an existing deal signed in 2017. Addressing the function, Nasrul Hamid thanked Qatar for agreeing to supply additional LNG to Bangladesh. “The long-term contract of the LNG supply is a comforting achievement for Bangladesh at a moment when the entire world is facing unrest regarding the energy supply,” he said. Nasrul said that this energy partnership between Bangladesh and Qatar has added a new dimension to the existing friendship between the two countries. It was possible to sign this long-term LNG agreement quickly because of the diplomatic move from Prime Minister Sheikh Hasina, he added. He said that the supply of all kinds of energies will be ensured to maintain the economic pace. As Bangladesh is one of the fastest growing economies, the demands for power and gas have constantly been increasing in the country, he added. Qatar’s State Minister for Energy Saad Sherida al-Kaabi said that his country is proud to be the largest LNG supplier to Bangladesh. “Annual LNG supply of more than 3.5 million tons will contribute to the overall development of Bangladesh including its socio-economic status,”he added.  

Asian shares are mostly higher after President Joe Biden and House Speaker Kevin McCarthy reached a final agreement on a deal to raise the U.S. national debt ceiling. Tokyo, Sydney and Shanghai advanced while Hong Kong fell. Markets in Seoul were closed for a holiday. The agreement on the U.S. debt eased what had been a potentially huge threat to markets worldwide. Biden and McCarthy worked over the weekend to ensure enough support in Congress to pass the measure before a June 5 deadline and avert a disruptive federal default. "Markets are so far reacting cautiously. Buoyed, but cautious," Clifford Bennett, chief economist at ACY Securities, said in a commentary. "This agreement merely rolls the issue to potentially more politically friendly times post the Presidential election in two years. Nothing is certain in this regard, and it is possible resolution will be even more difficult then, than it has been on this occasion," Bennett said. Tokyo's Nikkei 225 index jumped about 2% in early trading but was trading up 1.3% at 31,325. by midday. The S&P/ASX 200 in Sydney jumped 1% to 7,228.60. The Shanghai Composite index edged 0.2% higher to 3,218.26. In Hong Kong, the Hang Seng slipped 0.3% to 18,696.34. U.S. markets will be closed for a holiday on Monday. Investors have another busy week of U.S. economic updates ahead, including data on consumer confidence and employment. On Friday, technology stocks powered solid gains for Wall Street after chipmaker Marvell Technology surged a record-setting 32.4% after the chipmaker said it expects AI revenue in fiscal 2024 to at least double from the prior year. That follows Thursday's report from fellow chipmaker Nvidia, which gave a big forecast for upcoming sales related to AI. The upbeat finish to the week for major U.S. indexes comes amid lingering anxiety over persistently high inflation and broadly weak corporate earnings. The S&P 500 rose 1.3% to close at 4,205.45. The Dow Jones Industrial Average gained 1% to 33,093.34. The tech-heavy Nasdaq notched the biggest gains, surging 2.2% to 12,975.69. The index rose 2.5% for the week as artificial intelligence became a big focus for investors. The revolutionary AI field has become a hot issue. Critics warn that it is a potential bubble, but supporters supporters say it could be the latest revolution to reshape the global economy. The nation's financial watchdog, the Consumer Finance Protection Bureau, said it's working to ensure that companies follow the law when they're using AI. Wall Street and the broader economy already had a full roster of concerns before the threat of the U.S. defaulting on its debt became sharply highlighted on the list. A key measure of inflation that is closely watched by the Federal Reserve ticked higher than economists expected in April. The persistent pressure from inflation complicates the Fed's fight against high prices. The central bank has been aggressively raising interest rates since 2022, but recently signaled it will likely forgo a rate hike when it meets in mid-June. The latest government report on inflation is raising concerns about the Fed's next move. The latest inflation data also highlighted the continued resilience of consumer spending, which has been a key bulwark, along with the strong jobs market, against a recession. The economy grew at a sluggish 1.3% annual rate from January through March and it is projected to accelerate to a 2% pace in the current April-June quarter. The impact from inflation and worries about a recession on the horizon have been hitting corporate profits and forecasts. The latest round of company earnings is nearing a close with the profits for companies in the S&P 500 contracting about 2%. Beauty products company Ulta Beauty fell 13.4% after trimming its forecast for profit margins. Discount retailer Big Lots fell 13.3% after reporting a much bigger loss last quarter than analysts expected. Investors rewarded several companies that reported strong financial results. Gap rose 12.4% after reporting a strong first-quarter profit. In other trading Monday, U.S. benchmark crude oil added 81 cents to $73.48 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 84 cents to $72.67 per barrel on Friday. The dollar slipped to 140.44 Japanese yen from 140.59 yen. The euro rose to $1.0734 from $1.0724.