Category: BUSINESS

Tesla shareholders are voting on a record $56 billion pay package for CEO Elon Musk and a plan to move the company’s legal headquarters to Texas. Musk claims the votes are “currently passing by wide margins,” but a court previously blocked the pay deal, ruling it was unfair. The non-binding revote faces legal uncertainties. Business reporter.

Berger Paints Bangladesh Ltd has signed an agreement with Edison Real Estate Ltd, a subsidiary of Edison Group. Under the deal, Edison Real Estate will integrate Berger Paints’ products in its residential and commercial projects. Berger will provide a comprehensive range of paint and coating solutions for Edison’s initiatives. The partnership aims to enhance the aesthetic and functional value of Edison’s developments while utilizing Berger’s advanced and environment-friendly paint technologies. Photo: Edison Real Estate

Bangladesh’s telecom regulator conducted drives against illegal VoIP operators in Dhaka’s Nayapaltan and Khilgaon areas today. The enforcement team seized over 17,354 SIMs, 56 SIM boxes, routers, modems, and other VoIP equipment. Two individuals involved in the illegal VoIP business were arrested. Cases are being filed against the detainees under the Bangladesh Telecommunication Regulation Act for operating unauthorized VoIP services that bypass regular telephone networks.

Walton has launched an AI-based “AI Doctor” feature for its Smart fridges, developed by its Research and Innovation Centre. The AI system can automatically analyze fridge performance, detect issues, predict component failures, and notify the nearest service center for faster after-sales service. It was inaugurated by Walton officials at the company’s corporate office in Dhaka. Photo: Walton

The major index of the Dhaka Stock Exchange (DSE) fell significantly today, the first trading day after the national budget proposal, reflecting investors’ disappointment. The DSEX plunged 65 points or 1.25% to 5,171, the lowest in 38 months. The DSES and DS30 indices also dropped. Analysts cited the absence of positive measures in the budget and the proposed 15% capital gains tax above Tk 50 lakh as reasons behind the bearish trend. Turnover plunged 34% as buyers remained scarce amid the sell-off. File photo

An analysis by regulators, academics, and investors at the London School of Economics identified five key reasons why financial disasters are hard to avoid: 1) Riskier activities shifting to less regulated areas like investment funds; 2) Increased similarity among major banks; 3) Evolving business models challenging regulatory assumptions; 4) Fundamental weaknesses like debt bias and limited liability structures; 5) Political pressure for bailouts despite post-crisis reforms. The group concluded that old problems and new dangers create conditions ripe for future turbulence in the financial system.Photo: REUTERS

Textile and garment makers in Bangladesh have urged the government to reconsider some of their demands in the new national budget. Key demands include reducing source tax on exports, continuing cash incentives till 2032, withdrawing VAT on garment waste and yarn sales, introducing food rationing for garment workers, and addressing gas crisis affecting production. They welcomed proposed rebates on textile imports but sought lower duty on chillers. The demands aim to improve business conditions for the crucial export sectors.

Bangladesh’s garment exports to the USA, its largest export destination, declined by 14.44% year-on-year to $2.3 billion in the January-April period of 2023. The combined export of textile and garment to the USA also fell by 14.15% to $2.38 billion, as American buyers slowed down apparel imports amid high inflationary pressures on consumers. PHOTO COLLECTED

Bangladesh’s foreign currency reserves dropped by $50.78 million to $18.67 billion on June 5, raising concerns about reaching the government’s estimate of $32 billion by the end of 2024-25 fiscal year. Experts cite external factors, mismanagement, policy changes, and exchange rate disparities as reasons for the forex market volatility and the $24 billion decline since August 2021.

Bangladesh’s merchandise exports fell 16.06% year-on-year to $4.07 billion in May 2024, according to the Export Promotion Bureau. This was 23.75% below the monthly export target. In the July-May period, exports grew a marginal 2.01% to $51.54 billion. Garment exports, contributing over 84% of total exports, grew only 2.86% year-on-year to $43.85 billion in the first 11 months of the fiscal year, indicating challenges in economic recovery despite robust remittance growth.File photo/Star

Turkey’s annual inflation jumped above 75% in May, but officials expect it to have peaked and begin declining from June. The central bank raised interest rates to 50% to combat soaring prices. Finance Minister Simsek predicted inflation will likely fall below 50% by end of Q3 as the government implements austerity measures, after high prices contributed to electoral setbacks for President Erdogan’s party in March municipal elections.

Inflation in Bangladesh rose to 9.89 percent in May, driven by higher food prices, according to the latest figures from the Bangladesh Bureau of Statistics. Food inflation surged to 10.76 percent, up 54 basis points from April, while non-food inflation slipped to 9.19 percent. The average inflation rate in the 2022-23 fiscal year stood at 9.02 percent, significantly higher than the recent yearly average of 6 percent, reflecting the persistent inflationary pressures in the economy. Star file photo

The Bangladeshi government aims to initiate formal negotiations for signing a free trade agreement (FTA) with China, its largest trading partner, as the joint feasibility study is complete. Experts believe an FTA with China, complemented by investment, will greatly benefit Bangladesh. The Chinese ambassador highlighted that Bangladesh’s trade deficit with China is not concerning, and Chinese investment will create more job opportunities in the country. Photo: Facebook

Syed Mansur Mustafa has been appointed as the Managing Director of IFIC Bank. He was previously serving the bank concurrently as Deputy Managing Director and head of several key divisions. Mustafa joined IFIC Bank in 2015 after working at AB Bank and Trust Bank in various capacities. With 28 years of experience in banking, he has expertise in areas like branch management, credit risk, foreign trade, and treasury operations.

Shares at the Dhaka Stock Exchange (DSE) continued their downward trend for the third consecutive day on Sunday. Despite starting higher, the benchmark DSEX index fell 0.35% to close at 5,233.67. The Shariah-based DSES and blue-chip DS30 indices also declined. Turnover decreased by 6.67% to Tk 349 crore, with 219 issues losing ground, 124 advancing, and 48 remaining unchanged.