United News of Bangladesh

China's foreign trade rebounded in May as total imports and exports went up 9.6 percent year on year to 3.45 trillion yuan on top of April's 0.1-percent expansion, official data showed Thursday. In the first five months of 2022, the country's foreign trade volume gained 8.3 percent year on year to 16.04 trillion yuan, outpacing the 7.9-percent-growth in the January-April period, according to the General Administration of Customs. In U.S. dollar terms, total foreign trade came in at 2.51 trillion U.S. dollars in the five-month period, up 10.3 percent year on year. In the first five months, exports grew 11.4 percent year on year while imports rose 4.7 percent, leading to a trade surplus of 1.84 trillion yuan, customs data showed. Read: Bangladesh yet to reap full benefits of Chinese market facilities: Speakers During this period, China's trade with its top three trading partners -- the Association of Southeast Asian Nations, the European Union and the United States -- expanded by 8.1 percent, 7 percent and 10.1 percent from a year ago, respectively. From January to May, China's trade with Belt and Road countries jumped by 16.8 percent year on year to 5.11 trillion yuan. Private enterprises reported a faster growth as their imports and exports rose 11.8 percent to 7.86 trillion yuan in the first five months, accounting for 49 percent of the country's total, marking an increase of 1.5 percentage points from the same period last year.   In terms of types of goods, exports of mechanical and electrical products expanded by 7 percent to account for 57.2 percent of the total, while labor-intensive products increased 11.6 percent in the first five months, customs data showed. Read: Chinese investors can maximise profits by setting up industries in Bangladesh: Envoy

The European Union’s groundbreaking decision to ban nearly all oil from Russia to punish the country for its invasion of Ukraine is a blow to Moscow’s economy, but its effects may be blunted by rising energy prices and other countries willing to buy some of the petroleum, industry experts say. European Union leaders agreed late Monday to cut Russian oil imports by about 90% over the next six months, a dramatic move that was considered unthinkable just months ago. The 27-country bloc relies on Russia for 25% of its oil and 40% of its natural gas, and European countries that are even more heavily dependent on Russia had been especially reluctant to act. European heads of state hailed the decision as a watershed, but analysts were more circumspect. The EU ban applies to all Russian oil delivered by sea. At Hungary’s insistence, it contains a temporary exemption for oil delivered by the Russian Druzhba pipeline to certain landlocked countries in Central Europe. In addition to retaining some European markets, Russia could sell some of the oil previously bound to Europe to China, India and other customers in Asia, even though it will have to offer discounts, said Chris Weafer, CEO at consulting firm Macro-Advisory. “Now, for the moment, that’s not financially too painful for Russia because global prices are elevated. They’re much higher than last year,” he said. “So even Russia offering a discount means that it’s probably selling its oil for roughly what it sold for last year also.” He noted that “India has been a willing buyer” and “China’s certainly been keen to buy more oil because they’re both countries who are getting big discounts on global market prices.” Still, Moscow has traditionally viewed Europe as its main energy market, making Monday’s decision the most significant effort yet to punish Russia for its war in Ukraine. “The sanctions have one clear aim: to prompt Russia to end this war and withdraw its troops and to agree with Ukraine on a sensible and fair peace,” German Chancellor Olaf Scholz said. Ukraine estimated the ban could cost Russia tens of billions of dollars. Read: Budget to include scheme for whitening black money again “The oil embargo will speed up the countdown to the collapse of the Russian economy and war machine,” Foreign Minister Dmytro Kuleba said. Ukrainian President Volodymyr Zelenskyy said in a video address that Ukraine will be pressing for more sanctions, adding that “there should be no significant economic ties left between the free world and the terrorist state.” Simone Tagliapietra, an energy expert and research fellow at the Brussels-based think tank Bruegel, called the embargo “a major blow.” Matteo Villa, an analyst at the ISPI think tank in Milan, said Russia will take a pretty significant hit now but cautioned that the move could eventually backfire. “The risk is that the price of oil in general goes up because of the European sanctions. And if the price goes up a lot, the risk is that Russia starts to earn more, and Europe loses the bet,” he said. Like previous rounds of sanctions, the oil ban is unlikely to persuade the Kremlin to end the war. Moscow seized on the new sanctions to try to rally public support against the West, describing it as bent on destroying Russia. Dmitry Medvedev, the deputy head of Russia’s Security Council who served as the country’s president, said the oil ban aims to reduce the country’s export earnings and force the government to scale down social benefits. “They hate us all!” Medvedev said on his messaging app channel. “Those decisions stem from hatred against Russia and against all of its people.” Read: Experts: Iran disrupts internet; tower collapse deaths at 34 Russia has not shied away from withholding energy to get its way. Russian state energy giant Gazprom said it is cutting off natural gas to Dutch trader GasTerra and Denmark’s Oersted company and is also stopping shipments to Shell Energy Europe that were bound for Germany. Germany has other suppliers, and GasTerra and Oersted said they were prepared for a shutoff. Gazprom previously stopped the flow to Bulgaria, Poland and Finland. Meanwhile, the EU is urging other countries to avoid placing trade barriers on farm products as Russia’s war increases the risks of a global food crisis. Zelenskyy has said Russia has prevented the export of 22 million tons of Ukrainian grain, much of it meant for people across the Middle East and Africa. He accused Moscow of “deliberately creating this problem.” Russian oil delivered by sea accounts for two-thirds of the EU’s oil imports from Moscow. In addition to the EU cutoff of such imports, Germany and Poland have agreed to stop using oil from the northern branch of the Druzhba pipeline. Agreeing on sanctions against Russian natural gas is likely to prove much tougher because it represents a larger percentage of Europe’s energy mix. “The very loud and clear message that Moscow will hear is that it will be near impossible for the European Union to get any agreement on blocking gas because gas will not be as easily replicated from other sources in Europe as oil will be,” Weafer said.

Indian Commerce Minister Piyush Goyal on Wednesday said that India will continue to allow wheat export for countries which are in serious need and are friendly and also have the letter of credit. Goyal said this during the ongoing World Economic Forum meeting in Davos, reports NDTV.  “India wheat exports are less than 1 per cent of world's trade and our export regulation should not affect global markets. We continue to allow exports to vulnerable countries and neighbours,” the minister said. He said that though 7 per cent to 8 per cent of wheat production was expected during the year, due to the severe heat waves there was early harvest and and also production loss. Also Read: India open to exporting wheat to needy nations despite ban  “Given this situation, what we are producing is about enough for domestic consumption,” Mr Goyal added. He made it clear that India was never a traditional player in the international wheat market and export of wheat only began about two years ago. Speaking at Davos Summit, the Commerce Minister said that last year 7 lakh metric tonnes (LMT) of wheat was exported and majority was done within the last two months when the war between Russia and Ukraine erupted.  

More than three decades after it became the first American fast food restaurant to open in the Soviet Union, McDonald’s said Monday that it has started the process of selling its business in Russia, another symbol of the country’s increasing isolation over its war in Ukraine. The company, which has 850 restaurants in Russia that employ 62,000 people, pointed to the humanitarian crisis caused by the war, saying holding on to its business in Russia “is no longer tenable, nor is it consistent with McDonald’s values.” The Chicago-based fast food giant said in early March that it was temporarily closing its stores in Russia but would continue to pay its employees. Without naming a prospective Russian buyer, McDonald’s said Monday that it would seek one to hire its workers and pay them until the sale closes. CEO Chris Kempczinski said the “dedication and loyalty to McDonald’s” of employees and hundreds of Russian suppliers made it a difficult decision to leave. “However, we have a commitment to our global community and must remain steadfast in our values,” Kempczinski said in a statement, “and our commitment to our values means that we can no longer keep the arches shining there.” As it tries to sell its restaurants, McDonald’s said it plans to start removing golden arches and other symbols and signs with the company’s name. It said it will keep its trademarks in Russia. Also Read: McDonalds raising US workers pay in company-owned stores Western companies have wrestled with extricating themselves from Russia, enduring the hit to their bottom lines from pausing or closing operations in the face of sanctions. Others have stayed in Russia at least partially, with some facing blowback. French carmaker Renault said Monday that it would sell its majority stake in Russian car company Avtovaz and a factory in Moscow to the state — the first major nationalization of a foreign business since the war began. For McDonald’s, its first restaurant in Russia opened in the middle of Moscow more than three decades ago, shortly after the fall of the Berlin Wall. It was a powerful symbol of the easing of Cold War tensions between the United States and Soviet Union, which would collapse in 1991. Now, the company’s exit is proving symbolic of a new era, analysts say. “Its departure represents a new isolationism in Russia, which must now look inward for investment and consumer brand development,” said Neil Saunders, managing director of GlobalData, a corporate analytics company. He said McDonald’s owns most of its restaurants in Russia, but because it won’t license its brand, the sale price likely won’t be close to the value of the business before the invasion. Russia and Ukraine combined accounted for about 9% of McDonald’s revenue and 3% of operating income before the war, Saunders said. McDonald’s said it expects to record a charge against earnings of between $1.2 billion and $1.4 billion over leaving Russia. Its restaurants in Ukraine are closed, but the company said it is continuing to pay full salaries for its employees there. McDonald’s has more than 39,000 locations across more than 100 countries. Most are owned by franchisees — only about 5% are owned and operated by the company.    

Recent deep cuts to overseas aid budgets by governments, will have direct, and negative impacts on the ability of the world to reach the 2030 Sustainable Development Goals (SDGs), the UN chief said Friday. Secretary-General António Guterres expressed his concern over the fall in overseas development aid (ODA) following a meeting of the UN Chief Executives Board, which brought together the heads of 30 entities, to discuss ways of alleviating the crises holding back economic recovery from Covid, and boost the implementation of the SDGs. Read: Ensure quality to venture into global market in electronic goods He noted that the current "moment in history" had thrown up "cascading challenges" including a climate emergency, uneven economic recovery, and the triple crisis of food, energy and debt, all exacerbated by Russia's invasion of Ukraine. Guterres said a critical ingredient of the UN's ability to "rescue" the SDGs and provide lifesaving humanitarian assistance was "predictable and additional funding," underpinned by the commitment of nations to provide 0.7 percent of gross national income to overseas aid – a target adopted in a UN General Assembly resolution for advanced economies in 1970. He said several countries have met, "and in some cases" gone beyond the threshold. "However, there are recent indications that other states are making deep cuts of ODA in a reversal of their commitment." Read: Vulnerable nations threatened as Ukraine war shrinks food supplies, hikes prices "This will have direct negative impacts on the achievements of the SDGs. This is alarming and I urge member states to reconsider, given the dire consequences for the vulnerable among us in these turbulent times," said Guterres.He reiterated the UN's commitment to strengthened coordination in support of coherent national strategies for reaching the ambitious targets of the SDGs, agreed by 193 countries in 2015 – a universal call to action to end poverty, protect the planet and make peace and prosperity accessible to all. "At a time when global conflicts are at their highest levels since the creation of the United Nations, the evidence demonstrates that investing in development is the best way to prevent crises and maintain international peace, which remains the UN's central mission," said the UN chief.

Billionaire businessman Mukesh Ambani-owned oil-to-telecom conglomerate Reliance Industries has become the first Indian company to record a gross revenue of over 100 billion US dollars in a year. The company on Friday declared its quarter four earnings for the last financial year (April 2021 to March 2022), showing a gross revenue of over Rs 58,000 crore against Rs 57,700 (approx) in the previous quarter.  And for the entire fiscal, Reliance reported a gross revenue of Rs 7.92 lakh crores (102 billion US dollars) -- a feat the company attributed to the rise in earnings in its telecom, retail and refining businesses. "Despite the ongoing challenges of the pandemic and heightened geo-political uncertainties, Reliance has delivered a robust performance in FY2021-22,"  Ambani, the chairman and managing director of Reliance Industries, said in a statement.  "Over the past year, we added over 2.1 lk new employees across our businesses with our consumer & technology biz creating a large part of these new jobs. I am pleased to report that our Retail biz has crossed the 15,000-store benchmark," he said. Also Read: Reliance eyeing stake in Google-backed Indian unicorn? "I am confident that Reliance will create sustainable and affordable new energy solutions for India to help her meet growing energy needs, while ensuring that we achieve our ambitious target of Net Carbon Zero by 2035," Ambani added. One of the richest persons in Asia, Mukesh's current net worth is nearly USD 80 billion. His Reliance Group is now India's most valuable company by market capitalisation. UNB had earlier reported about Mukesh's rumoured plans to hand over three core business areas of Reliance Industries to his three children -- Akash, Isha and Anant -- and also about his aggressive fundraising spree to make his conglomerate debt-free amid the pandemic. The fundraising spree was aimed at reducing Reliance's dependence on the flagship oil sector to diversify into telecom and e-commerce. In 2020, Reliance raised USD 15.2 billion by selling stakes in its telecom unit Jio and another USD 7 billion through rights issue.    

Commerce Minister Tipu Munshi said the United States is a friend of Bangladesh and if Americans invest in Bangladesh's special economic zones, they will be benefited. The Minister said this while exchanging views with Peter D Haas, US Ambassador to Bangladesh, at the Secretariat on Thursday. The United States is a big market for garment exports for Bangladesh. For the sustainable development of the readymade garments sector, Bangladesh has upgraded its labor law to world standard, said the minister. "Safe and friendly working environments have been created in the factories. Building and electricity safety has been ensured," he added. There are 157 factories certified by Lead Green Garments Factory of the USA in Bangladesh. Of the top 10 green factories in the world, nine are in Bangladesh. Bangladesh is now the second-largest exporter of readymade garments in the world. Although the production cost of readymade garments in Bangladesh has increased, the buyers have not increased the price in comparison. It is necessary to ensure fair price of readymade garments in Bangladesh, Munshi added. Read: World Bank loan to bolster Bangladesh's economic growth Ambassador Haas said the USA is a development partner of Bangladesh. The development of Bangladesh is now visible. Bangladesh has already graduated from LDC and become a developing country. In the future, US economic and trade relations with Bangladesh will be further enhanced, he hopes. Commerce Minister said Bangladesh is making efforts to sign trade agreements with various countries like PTA or FTA to create trade facilities. Additional Secretary of the Ministry of Commerce (Exports) Md Hafizur Rahman, Additional Secretary (FTA) Nur Mohammad Mahbubul Haque, Additional Secretary (Export-2) Md Abdur Rahim Khan were present.

India's biggest initial public offering of the state-run insurance behemoth -- the Life Insurance Corporation of India (LIC) -- is all set to open next week, with the government deciding to sell 3.5% of its stake in the company. For anchor investors, the initial public offering will open on May 2. For retail investors, it will open on May 4 and close on May 9. The price band for the offering has been set at Indian rupees 902 to 949, UNB has learnt. The Securities and Exchange Board of India (SEBI), the country's stock markets regulator, approved the red herring prospectus on April 25. LIC has time and again bailed out the government by acting as its internal financier. READ: E-payments unicorn Paytm launches India's biggest-ever IPO Experts predict a stellar debut for LIC on the country's bourses just like that of private food delivery giant Zomato last year. The food aggregator was, in fact, India's first new-age technology unicorn to go public in 2021. Zomato, in fact, rode on the Covid outbreak that has prompted a trend of people moving to order food items online the world over. Such was the fantabulous listing that Zomato's market capitalization breached 12 billion US dollar mark in the first hour itself.

An unexpectedly sharp drop in subscribers has Netflix considering changes to its service that it has long resisted: Minimizing password sharing and creating a low-cost subscription supported by advertising. The looming changes announced late Tuesday are designed to help Netflix regain momentum it’s lost over the past year. Pandemic-driven lockdowns that drove binge-watching have lifted while deep-pocketed rivals such as Apple and Walt Disney began to chip away at its vast audience with their own streaming services. Netflix’s customer base fell by 200,000 subscribers during the January-March quarter, the first contraction it’s seen since the streaming service became available throughout most of the world outside of China six years ago. The drop stemmed in part from Netflix’s decision to withdraw from Russia to protest the war against Ukraine, resulting in a loss of 700,000 subscribers. Netflix projected a loss of another 2 million subscribers in the current April-June quarter. Also Read: Netflix shares drop 25 after service loses 200k subscribers The erosion, coming off a year of progressively slower growth, has rattled another key constituency for Netflix — its shareholders. After revealing its disappointing performance, Netflix shares plunged by more than 25% in extended trading. If the stock drop extends into Wednesday’s regular trading session, Netflix shares will have lost more than half of their value so far this year — wiping out about $150 billion in shareholder wealth in less than four months. Aptus Capital Advisors analyst David Wagner said it’s now clear that Netflix is grappling with an imposing challenge. “They are in no-(wo) man’s land,” Wagner wrote in a research note Tuesday. The Los Gatos, California, company estimated that about 100 million households worldwide are watching its service for free by using the account of a friend or another family member, including 30 million in the U.S. and Canada. “”Those are over 100 million households already are choosing to view Netflix,” Hastings said. “We’ve just got to get paid at some degree for them.” To prod more people to pay for their own accounts, Netflix indicated it will expand a trial program it has been running in three Latin American countries — Chile, Costa Rica and Peru. In this locations, subscribers can extend service to another household for a discounted price. In Costa Rica, for instance, Netflix plan prices range from $9 to $15 a month, but subscribers can openly share their service with another household for $3. Netflix offered no additional information about how a cheaper ad-supported service tier would work or how much it would cost. Another rival, Hulu, has long offered an ad-supported tier. While Netflix clearly believes these changes will help it build upon its current 221.6 million worldwide subscribers, the moves also risk alienating customers to the point they cancel the service. Also Read: Squid game season-2 on Netflix cast plot probable release date Netflix was previously stung by a customer backlash in 2011 when it unveiled plans to begin charging for its then-nascent streaming service, which has previously been bundled for free with its traditional DVD-by-mail service before its international expansion. In the months after that change, Netflix lost 800,000 subscribers, prompting a apology from Hastings for botching the execution of the spin-off. Tuesday’s announcement was a sobering comedown for a company that was buoyed two years ago when millions of consumers corralled at home were desperately seeking diversions — a void Netflix was happy to fill. Netflix added 36 million subscribers during 2020, by far the largest annual growth since its video streaming service’s debut in 2007. But Netflix CEO Reed Hastings now believes those outsized gains may have blinded management. “COVID created a lot of noise on how to read the situation,” he said in a video conference Tuesday. Netflix began heading in a new direction last year when its service added video games at no additional charge in an attempt to give people another reason to subscribe. Escalating inflation over the past year has also squeezed household budgets, leading more consumers to rein in their spending on discretionary items. Despite that pressure, Netflix recently raised its prices in the U.S., where it has its greatest household penetration — and where it’s had the most trouble finding more subscribers. In the most recent quarter, Netflix lost 640,000 subscribers in the U.S. and Canada, prompting management to point out that most of its future growth will come in international markets. Netflix ended March with 74.6 million subscribers in the U.S. and Canada.    

Bangladesh and the World Bank have signed a $250 million financing agreement to support the country’s reform efforts to sustain growth following the pandemic and to enhance resilience to future shocks, including climate change. The Bangladesh First Recovery and Resilience Development Policy Credit — the first in a series of two credits — will help Bangladesh build a stronger fiscal and financial sector to sustain growth, the World Bank said in a release. The credit is from the World Bank’s International Development Association (IDA), which provides concessional financing, has a 30-year term, including a five-year grace period. It will help streamline the bank recovery framework with all scheduled banks to update recovery plans annually. Read: Deal signed with World Bank for $250 million towards post-pandemic recovery The programme supports the legislative framework on payments, which will contribute to a more efficient financial system. The programme supports adjustments to the interest rates of public savings instruments such as the National Savings Certificate. Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan, said that Bangladesh has made a robust economic recovery from the pandemic. “This programme will further support the government’s policies to make the economy more resilient and competitive as Bangladesh strives to become an upper-middle income country by 2031.” The cancellation of 8,451 MW of investments in coal-fired electricity generation projects will accelerate the country’s transition to decarbonisation and a green economy. The revised National Building Code will help the country reduce greenhouse gas emissions by improving energy efficiency in buildings. Read: World Bank projects Ukraine's economy to shrink by 45 pct this year The programme will support the National Tariff Policy to modernise taxes and foster a globally competitive export industry. It will help to better leverage digital technologies and enable non-resident firms to submit VAT returns, according to the World Bank. The increased coverage of the electronic government (e-GP) system will improve efficiency of public procurement. It will also support the coverage, speed, and efficiency of social protection programmes to help the government rapidly respond to extreme climate events such as floods and cyclones. By using the government-to-person payment platform for cash transfers, the government can identify new and existing beneficiaries for emergency assistance while also capturing gender-disaggregated payment data.