Category: BUSINESS

Amazon tightens work policy, requiring five days in-office starting next year, up from three. CEO Andy Jassy cites improved collaboration as the reason. The company ends its four-month remote work program and plans to increase individual contributors relative to managers. Previous policy enforcement led to some employees being locked out of systems, suggesting potential strict implementation of the new mandate.READ FULL

India has relaxed its onion export rules, withdrawing the minimum export price of $550 per tonne and reducing export duty from 40% to 20%. This has led to a drop in onion prices in Bangladesh, with wholesale prices falling by Tk 4-5 per kg. Traders expect prices to decrease further by Tk 10-12 per kg. Bangladesh produced 39 lakh tonnes of onions last fiscal year but still needs to import 600,000-700,000 tonnes due to post-harvest losses. Some traders dispute the production figures, claiming actual production was 15-20% lower.READ FULL

The International Energy Agency reports global oil demand growth slowed significantly in the first half of 2024, primarily due to China’s economic challenges. The IEA has lowered its full-year forecast, projecting demand growth of 900,000 barrels per day. China’s shift towards alternative energy and weak consumer spending are key factors. Oil prices have weakened, prompting OPEC+ members to extend supply cuts. However, the IEA suggests that rising non-OPEC+ supply may still lead to a surplus, despite these measures.READ FULL

Chinese company Tianhui Button (BD) Limited will invest $4 million to establish a garment accessories manufacturing industry in Cumilla EPZ, Bangladesh. The facility will produce 700 million pieces of various buttons and leather accessories annually, creating jobs for 139 Bangladeshi nationals. An agreement was signed between BEPZA and Tianhui Button (BD) at BEPZA Complex in Dhaka. The signing ceremony was attended by BEPZA executives and company representatives, marking a significant foreign investment in Bangladesh’s garment industry.READ FULL

Boeing delivered nine 737 MAX jets to Chinese carriers in August, the highest since December 2018, before the model’s grounding. This marks a significant resumption of deliveries to China, which began in January 2024. Overall, Boeing delivered 32 MAX planes globally in August, bringing total deliveries across all models to 40. Through the first eight months of 2024, Boeing has delivered 258 jets, including 198 MAX planes, which is lower than the same period in 2023 due to production slowdowns following a January incident. READ FULL

The World Trade Organization’s annual public forum begins tomorrow in Geneva, focusing on “Re-globalization: Better Trade for a Better World.” The four-day event will explore how re-globalization can make trade more inclusive, with 139 sessions covering green policies, services trade, and digitalization. The forum will feature the launch of the World Trade Report, a lecture by Jason Furman, and discussions on various trade-related topics. Representatives from diverse sectors are attending, including Barkat Ullah Maruf from Bangladesh, who will moderate a panel on small-scale farming and green trade.READ FULL

Apple is set to unveil its iPhone 16 lineup on Monday, featuring new generative AI capabilities. The launch comes as Apple aims to boost sales after a recent slump. The new iPhones are expected to include “Apple Intelligence,” a suite of AI-powered features for tasks like image editing and translation. An upgraded Siri is also anticipated. This move follows similar AI-focused releases from competitors Google and Samsung, as major tech companies increasingly integrate AI into their smartphone offerings.READ FULL

Chinese Vice Commerce Minister Wang Shouwen met with US Under Secretary Marisa Lago in Tianjin, emphasizing that a modern China is an economic opportunity, not a threat, to the US. Wang expressed concerns over US trade restrictions and sanctions on Chinese companies. The meeting addressed various trade issues amid ongoing tensions between the two nations. Despite friction, preparations are underway for a potential phone call between Presidents Xi and Biden. The US recently announced tighter controls on advanced technology exports, further complicating trade relations.READ FULL

Federal Reserve Governor Christopher Waller signaled the likelihood of a series of interest rate cuts in the coming months, citing easing inflation and a cooling labor market. He expects the first cut at the upcoming September meeting, with more to follow. The comments came after a US jobs report showed slowing job creation. Waller emphasized that while the labor market has cooled, the economy isn’t necessarily heading for a recession. New York Fed President John Williams also supported reducing the restrictiveness of monetary policy.READ FULL

A Bangladeshi container ship, HR Farha, resumed its journey to Colombo after a brief delay due to engine trouble. The vessel, carrying 1197 TEUs, initially left Chattogram on September 3 but returned to Bangladesh waters when its speedometer fluctuated. Divers discovered a fishing net stuck at the bottom, which was cleared. The ship, operated by HR Lines Limited, is now expected to reach Colombo by September 10, a day later than originally planned. Most export cargo should still connect with mother vessels on time.READ FULL

Japanese 7-Eleven owner Seven & i Holdings rejected a $39 billion takeover bid from Canadian retail giant Alimentation Couche-Tard, stating it undervalues the company. The proposed deal would have been the largest foreign takeover of a Japanese firm, combining 7-Eleven with Circle K across Asia, North America, and Europe. Seven & i cited regulatory concerns and inadequate valuation. The company’s shares fell 1.9% in Tokyo following the announcement.READ FULL

Chinese President Xi Jinping pledged over $50 billion in financing for Africa over the next three years at the China-Africa forum in Beijing. The package includes $11 billion in assistance and $10 billion for Chinese firms’ investments. Xi promised to create at least one million jobs for Africa and deepen cooperation in various sectors. African leaders secured multiple deals for infrastructure, agriculture, and energy projects. UN Secretary-General Guterres praised the growing China-Africa ties, highlighting China’s development expertise and potential for driving renewable energy initiatives in Africa.READ FULL

The US Securities and Exchange Commission (SEC) has fined six major ratings agencies, including Moody’s, S&P, and Fitch, a total of $49 million for significant recordkeeping failures. The largest penalties were given to Moody’s and S&P ($20 million each) and Fitch ($8 million). Three smaller agencies also received fines. All firms acknowledged violating recordkeeping laws and have started improving their compliance policies. The SEC emphasized that cooperating with investigations can lead to tangible benefits for firms.READ FULL

Elon Musk’s $44 billion Twitter acquisition has resulted in significant losses for investors. Two years post-deal, X’s (formerly Twitter) value has dropped by 72%. Major investors, including Saudi Prince Alwaleed bin Talal and Larry Ellison, have collectively lost over $5 billion. Musk’s own stake has shrunk by $24 billion. Fidelity’s data shows its investment value falling from $316 million to $88 million since the takeover.READ FULL

Investit Asset Management has launched its first open-ended mutual fund, Investit Growth Fund, with an initial size of Tk 25 crore. The fund aims to provide superior risk-adjusted returns through investments in growth stocks. Investit will serve as both sponsor and asset manager, with Sandhani Life Insurance as trustee and BRAC Bank as custodian. The fund’s size may increase in the future. Mohammad Emran Hasan, CEO of Investit, expressed commitment to providing exceptional returns guided by integrity and research.READ FULL

The Dhaka Stock Exchange (DSE) saw a Tk 6,749 crore increase in market capitalization last week, reaching Tk 6,99,581 crore. This growth occurred despite many shares declining in price. The DSEX main index gained 104 points, closing at 5,804. The DSE Shariah and DSE-30 indices also rose. Out of 397 firms trading, 293 saw price increases, 86 experienced declines, and 18 remained unchanged. This indicates overall market growth despite mixed performance among individual stocks.READ FULL

Asian markets rose Friday following a record day on Wall Street, buoyed by strong US economic data. Investors are now focused on upcoming inflation figures and jobs reports, which will influence Federal Reserve interest rate decisions. Tokyo inflation data exceeded expectations, supporting the case for a Bank of Japan rate hike. Tech stocks in Asia recovered from Nvidia-related losses. Key indices in Hong Kong, Tokyo, and Shanghai showed gains, while the yen strengthened slightly against the dollar.READ FULL

Bangladesh Bank Governor Ahsan H Mansur announced that Nagad, a mobile financial service provider, has been taken over by the government. The central bank appointed an administrator amid allegations of irregularities. Nagad’s current board and CEO position have been abolished. The BB will conduct an audit and review Nagad’s digital bank license. The move aims to safeguard customers’ interests and transform Nagad into a transparent, compliant organization. Daily Star

China launched an anti-subsidy probe into EU dairy imports, a day after the EU announced plans for import duties on Chinese EVs. The investigation covers various dairy products and EU subsidy schemes. This move escalates trade tensions between China and the EU, following recent tariffs and investigations on both sides, including Chinese appeals to the WTO over EU’s EV tariffs. AFP

Gold prices in Bangladesh have hit a historic high of Tk 124,501 per bhori (11.664 grams), surpassing the previous record of Tk 122,985 set just a few days ago. The Bangladesh Jewellers Association (Bajus) has decided to implement the new rate effective immediately, citing an increase in pure gold prices in the local market. This sharp rise in gold prices is attributed to trends in the international market and volatility in domestic supply.

Ola Electric, India’s leading e-scooter maker, saw its valuation rise to $6.99 billion after launching new electric motorcycles. Shares jumped 20% as investors welcomed plans to reduce costs through in-house battery production. The company enters a competitive market dominated by established players. Ola’s stock has surged 75% since its August IPO, which raised $734 million, outperforming initial expectations despite earlier valuation adjustments due to market conditions.

Indian food safety authorities found that nearly 12% of tested spice samples failed to meet quality and safety standards. This comes after Hong Kong suspended sales of some MDH and Everest brand spice blends due to high pesticide levels. Other countries, including Britain, tightened controls on Indian spice imports. Out of 4,054 samples tested between May and early July, 474 failed to meet standards. The authorities are taking action against companies involved but did not provide brand-specific details. Reuters

Malaysia has revised its orangutan conservation plan, now allowing palm oil importers to “adopt” orangutans without removing them from their habitats. The plan aims to address concerns about deforestation linked to palm oil production. Commodities Minister Johari Abdul Ghani pledged to maintain at least 50% of Malaysia’s forest cover. Adoption funds will support NGOs and local government in monitoring and protecting orangutan habitats. The initiative follows the EU’s ban on importing commodities linked to deforestation, which Malaysia views as discriminatory. Reuters

Dhaka stocks rebounded from morning losses following the appointment of Khondoker Rashed Maqsood as chairman of the Bangladesh Securities and Exchange Commission (BSEC). This appointment ended a brief stalemate after the previously appointed M Masrur Reaz declined the position. By 11:20 AM, the DSEX index gained 0.58%, while the DSES and DS30 indices also rose. Trading volume reached Tk 378.46 crore, with 197 issues gaining, 148 falling, and 35 unchanged, indicating a positive market sentiment.

Khondoker Rashed Maqsood has been appointed as the new chairman of the Bangladesh Securities and Exchange Commission (BSEC) for a four-year term. This follows M Masrur Reaz’s declination of the post a day earlier. Maqsood, currently an adviser at the International Finance Corporation, has previously held leadership positions at Standard Bank, NRB Commercial Bank, and Citibank. The position became vacant after Shibli Rubayat-Ul Islam’s resignation on August 11, following the fall of the Awami League government.

Three firms in Bangladesh’s Bepza economic zone have begun operations, exporting $300,000 worth of products and creating 1,500 jobs. KPST Shoes, Fengqun Composite Material, and Kiaxi Lingerie have invested a total of $71.14 million. They produce items including shoe accessories, packaging materials, and lingerie. Eight more factories are under construction, with two starting production soon. Bepza has signed contracts with 30 companies for a total investment of $706 million, but further land allocation is constrained by water availability. Daily Star

The new NBR chairman, Abdur Rahman Khan, strongly opposes the practice of whitening black money, calling it unexpected and indecent. He believes it encourages corruption and discourages honest taxpayers. Khan suggested the interim government could scrap this scope if they choose. He promised action against money launderers and corrupt businesses, regardless of their size or influence. The NBR plans to form three task forces to review and make existing laws more business-friendly. Daily Star

M Masrur Reaz, an economist and founder of Policy Exchange Bangladesh, has been appointed chairman of the Bangladesh Securities and Exchange Commission for four years. He replaces Prof Shibli Rubayat-ul Islam, who resigned after the Awami League government’s fall. Reaz, a former World Bank economist, aims to clean up corruption in the stock market and improve governance. He has extensive experience in public policy advisory and global institutional engagement. Daily Star

The Bangladesh Financial Intelligence Unit (BFIU) has ordered all banks to freeze the accounts of former state minister for information and broadcasting, Mohammad A Arafat, and his wife Sharmin Mustary. This directive applies to both personal and business accounts, prohibiting any withdrawals. The anti-money laundering agency has confirmed this action, signaling a potential investigation into the couple’s financial activities.

The Centre for Policy Dialogue (CPD) reports that Tk 92,261 crore was embezzled in 24 major banking scams from 2008 to 2023 in Bangladesh. This amount equals 12% of the 2023-24 national budget or 2% of the 2022-23 GDP. The CPD highlighted the banking sector’s vulnerability, high loan defaults, and decline of previously good banks due to hostile takeovers. This report comes as a new interim government led by Muhammad Yunus takes over following Sheikh Hasina’s exit. Daily Star

Trade through Benapole land port, the largest in South Asia, has resumed after a four-day closure due to security concerns amid political unrest in Bangladesh. The estimated loss from the trade halt is around Tk 100 crore. Trade between India and Bangladesh, a key economic partnership, was disrupted but has now been restored through negotiations between various organizations and port officials. Daily Star

Bangladesh’s treasury bond yields have skyrocketed to nearly 12.8% in June 2024, driven by the central bank’s contractionary monetary policy and high inflation. The government’s borrowing from the banking sector has increased, but it has failed to meet its target due to a severe liquidity crisis. The high yields are attracting individual investors seeking low-risk, high-profit investments amid the ongoing economic crisis.  Dhaka Tribune

Bangladesh’s stock market indices rose for the second consecutive day following Sheikh Hasina’s government’s fall. The DSE’s main index, DSEX, increased by 1.2%, while blue-chip and shariah-based indices also saw gains. Despite more stocks declining than rising, large-cap companies drove the overall market up. The Chittagong Stock Exchange’s Caspi index similarly increased by 1.5%. This upward trend occurred despite political changes in the country. Daily Star

The US dollar price in Bangladesh’s kerb market has risen by about 5% in two weeks, reaching Tk 124-125 per dollar. This increase is attributed to recent violence and internet restrictions, which disrupted remittance inflows and reduced expatriate returns. The Money Changers’ Association claims its members are selling at Tk 119, but market insiders report higher rates. Banks maintain the previous rate of Tk 118. Remittance inflow has significantly decreased, with only $13.8 million received through formal channels in the week following July 21. Daily Star

Samsung Electronics reported its fastest growth since 2010, with Q2 operating profits soaring 1,462% to 10.44 trillion won ($7.5 billion). The surge is attributed to favorable memory chip market conditions and strong OLED panel sales. Demand for AI-related chips has significantly increased, with HBM sales up 50% from Q1. Despite an ongoing worker strike, Samsung maintains production levels. The company plans to expand capacity for AI chip production and expects strong performance through 2024, boosted by a potential collaboration with Nvidia. AFP

Bangladesh’s IT firms are facing significant productivity losses due to slow internet speeds following recent internet restrictions. Despite the restoration of broadband and mobile internet, speeds remain insufficient for operational needs, causing delays and client dissatisfaction. Industry leaders report productivity drops of about 50%, hampering software development, BPO services, and e-commerce. The Bangladesh Association of Software and Information Services (BASIS) warns that software and IT service exports could fall by 20-30% this year due to internet issues, affecting both local and export-oriented businesses. Daily Star