ePaper_2nd Edition_October 12, 2016

14
WEDNESDAY, OCTOBER 12, 2016
DT
Business
German investor cheer could hit growth buffers
• AFP, Frankfurt
Sentiment among investors in Germany
sharply improved this month
from its post-Brexit doldrums, data
showed yesterday, but analysts
warned against overconfidence.
The ZEW economic institute’s
headline investor confidence index
hit 6.2 points in October, an
increase of 5.7 points over September
and beating the 4 points
analysts surveyed by Factset had
predicted.
Sentiment had hovered at low
levels in August and September
after a sharp dip in July following
Britain’s June 23 vote to quit the
European Union.
Even with the October increase,
the barometer remains well below
its long-term average of 24.1 points.
The result was “very positive,
and points to a thoroughly robust
development of the business cycle,”
ZEW president Achim Wambach
said in a statement.
But Wambach warned of “a few
political and economic risks” that
could still weigh on the index, including
“dangers for the German
banking sector”.
German and global investors
have eyed Deutsche Bank, the
country’s biggest lender, with concern
in recent weeks as it negotiates
with the US Department of
Justice over a $14bn fine demand.
But other banks in Europe’s
largest economy are struggling too,
complaining of the crowded sector’s
intense competition and low
interest rates set by the European
Central Bank cutting into profits.
Easing fears
The latest ZEW reading follows
a battery of positive indicators,
including strong readings of exports,
industrial orders, and industrial
production in August and
a resurgent business confidence
index from the Munich-based Ifo
institute in September. That was
reflected in an increase in the ZEW
“current situation” sub-index to its
highest level since January.
Analysts warned that expectations
of the “golden autumn”
pointed to by Ifo should be treated
with care.
“The improvement in current economic
activity may have raised expectations
for future growth” among
investors, Berenberg bank’s Florian
Hense said, but “expectations remain
below the pre-Brexit vote averages.”
“Easing fears about the effects
of Brexit have more than offset
concerns about the wider implications
of Deutsche Bank’s troubles,”
analyst Jennifer McKeown of Capital
Economics said.
While “broadly encouraging ...
the index still points to a slowdown
in German GDP growth” based on
the ZEW’s past relationship to economic
activity, she added.
Beyond Germany, investors’
expectations for the economies of
eurozone neighbours also saw a
positive turn, gaining 6.9 points to
stand at 12.3.
ZEW questions analysts and
institutional investors about their
assessment of the current economic
situation and the outlook for the
coming months to compile its regular
survey. •
CORPORATE NEWS
Worst 4 days since
June push sterling
below $1.23
• Reuters
Sterling slid back below $1.23 yesterday
as senior officials and investors
pointed to the potential for
more falls for a market still in shock
after Friday’s 10% flash crash.
The past four days for the pound
are now its worst since the aftermath
of the vote to leave the European Union
in June and Bank of England policymaker
Michael Saunders warned
a “bumpy” Brexit could sharply reduce
British economic growth.
“Given the scale and persistence
of the UK’s current account deficit,
I would not be surprised if sterling
falls further, but I am fairly agnostic
as to whether any further depreciation
is likely,” Saunders said. •
Facebook launches intra-office
‘Workplace’ network
• AFP, London
Social network giant Facebook
recently launched new
global product Workplace,
a platform that it hopes will
replace intranet, mailbox and
other internal communication
tools used by businesses
worldwide.
The platform allows employees
to collaborate in real-time
and is intended to
compete with similar office
communication products including
Microsoft’s Yammer,
Salesforce’s Chatter and Slack.
The Silicon Valley company
developed the concept,
hitherto called “Facebook at
Work”, two years ago in its
London office and has since
tested the product on 1,000
companies worldwide.
It is the first Facebook
product launched outside
the United States.
“We combined the things
that already exist into a single
tool that will allow employees
to display a wall of information,
like on their private profiles,”
Julien Codorniou, director
of Workplace, told AFP.
Workplace was developed
outside of the Facebook ecosystem
and remains completely
separate from the social
network - even using grey
as the dominant colour, rather
than Facebook’s distinct blue.
It is accessible on a computer
or phone without a Facebook
account and employees
can access the platform using
their work email address.
The service will only enable
the transfer of intra-office
data, which will remain fully
owned by the business.
“We’ve brought the best of
Facebook to the workplace -
whether it’s basic infrastructure
such as News Feed, or
the ability to create and share
in Groups or via chat, or useful
features such as Live, Reactions,
Search and Trending
posts,” said the company.
“This means you can chat
with a colleague across the
world in real time, host a virtual
brainstorm in a Group, or follow
along with your CEO’s presentation
on Facebook Live.”
Subscribers will pay between
one to three euros ($1.1-
$3.3) per connected employee,
depending on the size of the
business, while NGOs and educational
establishments will
receive the service for free. •
Southeast Bank Limited has recently opened a booth for collecting municipal tax at Feni Pourashava.
Nizam Uddin Hajari, MP inaugurated the booth, said a press release. The bank’s managing director, Shahid
Hossain was present on the occasion