Category: BUSINESS

Far East Knitting & Dyeing Industries Ltd reported a 3.7% increase in profit, reaching Tk 35.87 crore for the fiscal year ending June 30, 2024. The company’s earnings per share rose to Tk 1.64, with net operating cash flow per share at Tk 6.36. The board proposed a 14% cash dividend, its highest in a decade. Established in 1994, Far East Knitting has become a major player in Bangladesh’s textile sector, serving global brands. Its shares surged 12.2% to Tk 18.4 at the DSE.READ FULL

Bangladesh has imported another 231,000 chicken eggs from India through Benapole land port, bringing the total to 989,000 eggs in five shipments. This import is in response to rising domestic egg prices. The government extended the import deadline to November after initial delays. The eggs were imported at 5.70 taka each, with the final cost reaching 7.50 taka per egg after taxes. The imports aim to stabilize the local egg market.READ FULL

Lovello Ice-cream PLC reported a 15% profit increase to Tk 12.18 crore for the year ending June 2024. The company declared a 20% dividend (10% cash, 10% stock) from accumulated profits. Earnings per share reached Tk 1.43, with shares trading at Tk 97.8, up 3.82% at DSE.READ FULL

Estonia’s new non-resident ambassador to Bangladesh, Marje Luup, met with Foreign Affairs Adviser Md Touhid Hossain in Dhaka. Estonia expressed interest in collaborating with Bangladesh in the ICT sector, focusing on e-governance and cybersecurity. They also discussed potential student exchange programs in IT. Hossain briefed Luup on the interim government’s reform initiatives. Both sides expressed willingness to strengthen bilateral cooperation. The meeting marks a step towards enhancing technological and educational partnerships between the two countries.READ FULL

Dhaka Electric Supply Company Ltd (Desco), a state-run electricity distributor, reported a loss of Tk 505.7 crore for the fiscal year ending June 30, 2024. This marks the second consecutive year of losses for the company. Losses per share decreased slightly from Tk 13.61 to Tk 12.7. Desco cited increased distribution revenue and reduced foreign exchange losses for the marginal improvement. The board recommended no dividend due to negative retained earnings. Desco’s shares fell 5.06% on the Dhaka Stock Exchange following the announcement.READ FULL

Russia’s agriculture ministry has set a minimum price of $250 per ton for wheat exports at international tenders, aiming to curb high-volume exports and combat domestic inflation. Exporters were also advised to engage in direct deals with buyers. The move comes alongside an increased export duty of 1,872 roubles per ton. Russia slightly lowered its harvest estimate to 130 million tons, with domestic consumption projected at 85-87 million tons, leaving the remainder for export.READ FULL

Boeing announced plans to cut 10% of its workforce, eliminating 17,000 jobs globally, as it faces a large Q3 loss. The decision comes amid a monthlong strike by 33,000 workers and other challenges. The company is delaying the 777X delivery to 2026 and will cease 767 Freighter production in 2027. Boeing cited near-term challenges and the need for strategic decisions to remain competitive long-term.READ FULL

China announced plans to issue special bonds and deploy $325 billion in funds over the next three months to boost its struggling economy. Measures include increasing local government debt ceilings for infrastructure spending and supporting state-owned banks. Major banks will also cut interest rates on existing mortgages. These steps aim to address the property sector crisis, low consumption, and achieve a 5% growth target for the year.READ FULL

Germany has downgraded its economic forecast for 2024, now predicting a 0.2% contraction instead of the previously expected 0.3% growth. This marks a second consecutive year of economic decline, following a 0.3% contraction in 2023. The economy faces multiple challenges, including weak domestic and foreign demand, high interest rates, expensive energy costs due to the Ukraine war, and structural issues like an aging population and increased Chinese competition.READ FULL

The National Board of Revenue (NBR) has cut regulatory duty on sugar imports from 30% to 15%, aiming to reduce consumer prices. The reduction is expected to lower import costs by Tk 11.18 per kg for raw sugar and Tk 14.26 per kg for refined sugar. The move comes as retail sugar prices in Dhaka have risen 2% in the past month, currently ranging from Tk 125-135 per kg.READ FULL

Standard Chartered Bangladesh has partnered with DBL Lifestyles, offering exclusive discounts to its select cardholders on premium lifestyle brands. The agreement provides 15% discount on Adidas and 10% on Nike, Puma, and Levis products for VISA Signature credit, Platinum credit, and Priority Banking debit cardholders. The MoU signing ceremony at DBL’s Gulshan office was attended by top executives from both organizations, including Standard Chartered CEO Naser Ezaz Bijoy and DBL Group MD MA Jabbar.READ FULL

A recent survey by REC and KPMG shows Britain’s job market cooling, with starting pay growth hitting its lowest since February 2021. While permanent job placements continued their two-year decline, the drop was less severe than in August. The survey also revealed increasing candidate availability and falling vacancies. This trend might influence the Bank of England’s decision on interest rates at its November meeting.READ FULL

Oil prices dropped Monday after last week’s significant gains, with Brent crude falling 0.4% to $77.74 and WTI down 0.27% to $74.18 per barrel. Despite Middle East tensions following Iran’s missile attack on Israel, oversupply concerns and softer demand are affecting prices. OPEC+’s spare capacity could buffer potential supply disruptions, while China’s uncertain economic recovery continues to impact market sentiment.READ FULL

A study by the Centre for Policy Dialogue (CPD) estimates recent floods in eastern Bangladesh caused $1.20 billion in damage, affecting 11 districts. The agriculture and forestry sectors were hit hardest, followed by infrastructure and housing. Noakhali suffered the highest monetary losses. The damage represents 1.81% of the national budget for FY 2024-25 and 0.29% of FY24’s provisional GDP.READ FULL

China’s home sales increased during the National Day holiday following recent property stimulus measures. Over 50 cities introduced policies to boost the real estate market, with nearly 2,000 developments participating in promotions. House visits rose significantly, and sales increased in many areas. Major cities like Guangzhou, Shanghai, and Shenzhen eased restrictions on home purchases to revitalize the struggling property sector.READ FULL

Sri Lanka’s new government has approved a $14.7 billion foreign debt restructuring deal negotiated by the previous administration. The agreement includes a 27% principal reduction and 11% interest cut for private creditors. This restructuring, crucial for IMF support, covers $12.5 billion in international sovereign bonds and $2.2 billion owed to China Development Bank. The deal aims to help rebuild Sri Lanka’s economy following its 2022 crisis.READ FULL

Samsung Electronics announced job cuts in its Southeast Asian, Australian, and New Zealand operations to improve efficiency. While the company didn’t specify a target number, reports suggest up to 10% of the workforce in these markets could be affected. This comes despite Samsung’s strong Q2 performance, with operating profits soaring 1,462% year-on-year. The move contrasts with recent layoffs at other tech companies like Intel.READ FULL

Oil prices rose on Monday due to escalating Middle East tensions, with Brent crude reaching $72.49 and WTI at $68.61 per barrel. The increase follows Israel’s intensified attacks on Iranian-backed groups in Lebanon and Yemen, raising concerns about potential supply disruptions from key oil-producing regions. Despite last week’s price drop due to demand worries, the current geopolitical situation is supporting prices. However, analysts note that OPEC+ supply cuts ending in December and uncertainty about China’s fuel demand could impact future oil prices.READ FULL

China’s megacities Guangzhou, Shenzhen, and Shanghai have eased home buying restrictions to boost the struggling property market. Changes include removing buyer eligibility checks, lifting limits on home ownership, and lowering minimum down payments. The central bank has also asked financial institutions to reduce mortgage rates on existing loans. These measures are part of a broader effort to stimulate China’s economy, which has been impacted by a prolonged housing slump. Property developers’ stocks rallied in response to the announcements, with some seeing significant gains.READ FULL

China plans to issue special sovereign bonds worth 2 trillion yuan ($284.4 billion) as part of a new fiscal stimulus package. While this move, along with recent central bank easing measures, aims to boost economic growth, analysts suggest it may not be sufficient to significantly alter the country’s long-term economic prospects. The package, equating to 1.4% of last year’s GDP, falls short of the more substantial stimulus some economists had hoped for. Details on fund allocation remain limited.READ FULL

The European Union plans to vote on October 4 regarding potential tariffs of up to 45% on Chinese-made electric vehicles. This decision follows last-minute negotiations with Beijing to avoid new levies. The European Commission is considering proposing final tariffs of up to 35.3% on top of the existing 10% car import duty. For implementation, the proposal needs approval from a qualified majority of EU members. This move could significantly impact the electric vehicle market in Europe.READ FULL

Three online sellers on Walmart’s Flipkart have sued India’s antitrust watchdog over an investigation that found violations of competition laws. The sellers argue they were unfairly accused after providing data to assist the investigation. This follows a similar lawsuit by a former Amazon seller. These legal actions could delay the antitrust probe, which began in 2020 following complaints from brick-and-mortar retailers. Both Amazon and Flipkart deny any wrongdoing. The case highlights ongoing tensions in India’s e-commerce sector.READ FULL

Renata PLC reported a 14% revenue increase to Tk 3,771 crore and a 55% profit surge to Tk 362 crore in FY 2023-24. The company announced a 92% cash dividend, up from 62.5% last year. Export growth reached 4%, expanding to 50 countries. Renata achieved 12% growth in pharma, outpacing the industry’s 7%. Cost efficiency, new product procurement, and reduced finance costs contributed to the improved performance. The company remains the market leader in animal health with 9% growth.READ FULL

Gold prices hit record highs in September, reaching $2,685.58 an ounce, up 30% from the year’s start. This surge is attributed to several factors: a significant US interest rate cut, geopolitical tensions, and India’s reduction of gold import tax from 15% to 6%. The tax cut has sparked increased demand for gold jewelry, bars, and coins in India, the world’s second-largest consumer of gold jewelry. Gold’s status as a safe-haven investment during economic uncertainty has also contributed to its rising value.READ FULL

The US Federal Reserve’s preferred inflation measure, the PCE price index, decreased to 2.2% in August from 2.5% in July. This supports the Fed’s recent decision to begin cutting interest rates. The core PCE index, excluding food and energy, rose slightly to 2.7%. Economists view this data as showing progress on inflation, potentially allowing for continued rate cuts. Consumer spending increased by 0.1% in August, indicating a slowing momentum in spending. Future rate decisions will likely depend on labor market data.READ FULL

The IMF has approved a $7 billion loan for Pakistan to strengthen its struggling economy. This three-year program, Pakistan’s 24th IMF bailout since 1958, requires reforms to boost growth and resilience. Pakistan narrowly avoided default last year due to floods, political instability, and global economic challenges. The loan comes with conditions including widening the tax base and increasing household bills. Prime Minister Shehbaz Sharif stated this should be Pakistan’s last IMF program. The IMF acknowledged Pakistan’s progress but warned of persistent vulnerabilities and structural challenges.READ FULL

China’s central bank has adopted a more aggressive easing stance, but analysts say its measures don’t address the main issue: weak consumer demand. The bank’s liquidity injections and lower borrowing costs have lifted market sentiment, but experts believe fiscal policies are needed to boost consumer spending. Analysts expect authorities to follow with a fiscal package to complement monetary measures. The world’s second-largest economy faces deflationary pressures and risks missing its growth target due to property downturn and low consumer confidence.READ FULL

OPEC predicts oil demand will grow until 2050, reaching 120.1 million barrels per day, contradicting IEA forecasts of peak demand this decade. The cartel calls phasing out oil a “fantasy” and stresses the need for continued investment in fossil fuels. OPEC’s outlook sees oil retaining the largest share in the energy mix by 2050, with renewables growing but not displacing oil. This stance contrasts with global efforts to transition away from fossil fuels to combat climate change.READ FULL

Globe Pharmaceuticals Group alleges S Alam Group attempted a hostile takeover of their edible oil business, Globe Edible Oil Ltd (GEOL). The chairman claims he was forced to sign a sale agreement under threat. GEOL has filed a Tk 1,497 crore damages case against S Alam Group, Islami Bank Bangladesh, and others. The dispute stems from loan issues with Islami Bank, which Globe says stalled their project funding after S Alam took control of the bank. Globe invested Tk 1,200 crore from subsidiaries to complete the project.READ FULL

According to a recent report, 102 Bangladeshis have 367 bank accounts in 13 countries, with the highest number in Canada, Australia, and Singapore. The Bangladesh Financial Intelligence Unit (BFIU) and law enforcement agencies have traced the accounts, suspecting Bangladeshi citizens of money laundering. The report states that while some Bangladeshis have valid overseas businesses, the country has struggled to recover siphoned assets despite signing mutual legal assistance agreements with these countries.READ FULL

The US Commerce Department plans to propose banning Chinese software and hardware in connected and autonomous vehicles on American roads, citing national security concerns. The move aims to prevent data collection by Chinese companies and potential foreign manipulation of internet-connected vehicles. This follows recent tariff hikes on Chinese imports, including EVs and batteries. The proposed regulation would prohibit importing and selling vehicles from China with key communications or automated driving system components, escalating US restrictions on Chinese automotive technology.READ FULL

The Ministry of Commerce in Bangladesh has approved the export of 3,000 tons of ilish (hilsa fish) to India for the upcoming Durga Puja festival in October. This decision was announced in a press release on Saturday. The ministry did not disclose the price for the exported fish. This year’s export volume is lower compared to 2023, when 5,000 tons of ilish were exported for the same festival. Durga Puja is the largest festival for Bengali Sanatan Hindus, and ilish is a traditional delicacy during the celebration.READ FULL

Gold prices surged above $2,600 per ounce for the first time, driven by expectations of further U.S. interest rate cuts and ongoing Middle East tensions. The Federal Reserve’s aggressive easing cycle and geopolitical uncertainties have boosted gold’s appeal, leading to a 27% rise in 2024. However, analysts warn of a potential correction due to extreme positioning. The rally has dampened retail demand in China and India. Other precious metals also saw movement, with silver gaining, while platinum and palladium declined.READ FULL

Gold prices hit a new record high of $2,609.74 per ounce on Friday in Hong Kong. This surge comes two days after the Federal Reserve’s decision to cut interest rates for the first time since the pandemic began. The Fed also hinted at more potential rate cuts in the future. The prospect of lower interest rates has increased demand for gold, driving its price to unprecedented levels in the precious metals market.READ FULL

Singapore’s Financial Intelligence Unit has requested details about S Alam Group and its owners from Bangladesh’s Financial Intelligence Unit. This follows revelations about the group’s $1 billion business empire in Singapore, built without central bank approval. After losing control of six banks in Bangladesh, S Alam Group faces strict measures, including account freezes. The group has appealed for government support to recover losses caused by these restrictions.READ FULL

World Bank Vice President for South Asia Martin Raiser began a two-day visit to Dhaka today. He’s scheduled to meet with key officials of Bangladesh’s interim government, including Chief Adviser Prof Muhammad Yunus and Finance Adviser Salehuddin Ahmed. The visit comes as the new government seeks funds from multilateral lenders to stabilize the economy. The World Bank has pledged $3 billion this fiscal year to support reforms. Bangladesh has been a major recipient of World Bank support, with commitments totaling around $44 billion since independence.READ FULL