Todays E-PAPER (121-12-12)

ECONOMY & BUSINESS FRIDAY,
THE
BANGLADESHTODAY
10
SEPTEMBER 29, 2017
Apurva Jain, Managing Director and Head, Transaction Banking, Bangladesh, Standard Chartered
Bank receives the 'Best International Bank' and 'Best Digital Bank' awards on behalf of the Bank at
the Asiamoney Awards ceremony 2017 held in Beijing, China.
Photo: Courtesy
SCBB recognized as Best
Digital Bank at the inaugural
Asiamoney Award
Standard Chartered Bank Bangladesh( SCBB) has recently
won the 'Best International Bank' and 'Best Digital Bank'
awards at the Asiamoney Awards ceremony 2017 held in
Beijing, China, says a press release said .
Asiamoney recognized Standard Chartered Bangladesh
for being "a cut above the rest in the digital world" in the
'Best Digital Bank' category, and as "head and shoulders
above its foreign peers in Bangladesh" in the 'Best
International Bank" category, according to Asiamoney's
award commendations
Commenting on the win, Abrar A. Anwar, CEO of
Standard Chartered Bangladesh said, "We are delighted to
have received these awards, which recognize Standard
October
blip leaves
German
consumer
confidence
high
FRANKFURT AM MAIN :
Germans will be slightly less
confident about future
income and less keen on
splashing out in October, a
survey predicted Thursday,
even as belief in the
country's economic strength
remains high, reports BSS.
Consumer confidence fell
0.1 points to 10.8, as
measured by pollsters GfK's
forward-looking survey of
around 2,000 people.
"Germans see the
economy on a solid course
for growth into autumn," the
firm commented.
Unemployment remains
at record lows and economic
growth has beaten analysts'
expectations so far this year,
while surveys of business
leaders and investors are all
in the green.
People's expectations for
growth in their own income
fell back slightly this month.
But wage expectations
"remain at a very high level,"
GfK noted, with people
"assuming that they'll clock
up significant growth in
income in the future."
There was a similar
picture in the sub-index
measuring the public's
interest in large purchases,
with the barometer
unclouded by a slight fall.
Chartered's impact in the banking sector in Bangladesh,
and our endeavour to introduce innovative financial
solutions to cater to the evolving needs of our times. We
would like to profusely thank our clients and customers for
their continued support and confidence in us and our
regulators for their guidance. It has been our privilege to be
a partner in progress to Bangladesh for over 112 years, and
play a humble part in the amazing growth story of our
nation."
Asiamoney has been a leading publication covering
banking and the capital markets in Asia for nearly three
decades. 2017 marked the inaugural year of the Asiamoney
Awards.
Toshiba signs $18bn deal to
sell chip unit to Bain Capital
TOKYO: said on Thursday it had formally
signed a deal to sell its memory chip business
to a group led by US investor Bain Capital for
around $18 billion, reports BSS.
The sale to the consortium-which includes
US tech giants Apple and Dell as well as
South Korean chipmaker SK Hynix-is seen
as crucial to keeping the struggling Japanese
conglomerate afloat.
Thursday's signing caps a months-long saga
that saw heated courtroom battles, rival bids
and the near-delisting of one of Japan's bestknown
firms.
"Today we signed a deal to sell" all the shares
of its prized memory chip business to the
consortium with a price tag of two trillion
yen ($18 trillion), Toshiba said.
The Japanese firm had already said last week
it would sell the business to the Bain-led
group and aims to complete the sale by
March.
Toshiba is the world's number-two
chipmaker behind Samsung and the
division's products are found in many
smartphones and electronic gadgets.
The chip unit accounts for around a quarter
of Toshiba's total annual revenue and is the
crown jewel in a vast range of businesses
ranging from home appliances to nuclear
BEIJING : The Asian Infrastructure Investment
Bank (AIIB) has announced it will invest 150
million U.S. dollars in the International Finance
Corporation (IFC)'s Emerging Asia Fund to
address the infrastructure gap in Asia, reports
BSS.
The bank will become one of the fund's biggest
investors, according to a statement. The IFC, a
member of the World Bank Group, offers
investment and advisory services to help private
sector growth and poverty reduction in
developing countries. "To mobilize sufficient
funds to address the huge infrastructure needs
reactors.
Toshiba narrowly averted a delisting this
year, but it still faces the humiliating
prospect of being yanked from Japan's
premier stock exchange if the sale does not
raise enough money.
Selling the chip division is seen as key to
Toshiba's survival, as it battles to recover
from multi-billion-dollar losses at its US
nuclear operation Westinghouse Electric.
The Japanese industrial giant is still
recovering from the disastrous acquisition of
Westinghouse, which racked up billions of
dollars in losses before being placed in
bankruptcy protection.
Those huge losses came to light as the group
was still reeling from revelations that top
Toshiba executives had pressured
underlings to cover up weak results for years
after the 2008 global financial meltdown.
Its most recent results published in August
revealed a loss of $8.8 billion in the last fiscal
year, although it predicted it would swing
back into the black this year.
The losses were a major embarrassment for
a cornerstone of Japan Inc, which traces its
history back as far as 1875 when the
company started life as a telegraph factory in
what is now Tokyo's Ginza shopping district.
AIIB to invest in IFC fund
across Asia, multilateral development
institutions must collaborate with each other
and a range of other partners," said D.J.
Pandian, Vice President and Chief Investment
Officer of the AIIB. Pandian said the bank will
continue to work with other international
financial institutions to help the region's
development.
The AIIB also approved loans of 100 million
U.S. dollars for an electricity transmission project
in India, which will build five lines to optimize the
electricity system, improve the generation mix,
and better utilize renewable energy resources.
China's central state firms post
record growth in first eight months
BEIJING : - China's centrallyadministered
state-owned
enterprises (SOEs) saw the strongestever
growth both in revenue and
profits for January-August, the chief
of the state assets watchdog said
Thursday, reports BSS.
"In the first eight months, China's
central SOEs reported a 15.7 percent
increase in business revenue and a
17.3 percent growth in total profits,
both historical highs," said Xiao
Yaqing, chairman of the Stateowned
Assets Supervision and
Administration Commission.
Under the government's supplyside
structural reform, central SOEs
have also made considerable
progress in excess capacity cuts and
leverage control.
"From January to August, China's
central SOEs beat government-set
targets by reducing 16.14 million
tonnes of steel capacity and 55.1
million tonnes of coal capacity," Xiao
told a press conference.
He also revealed that by the end of
August, the average debt-to-asset
ratio of China's central SOEs
dropped to 66.5 percent, 0.2
percentage points lower than the
beginning of this year.
With government reform and
restructuring efforts gradually
paying off, Chinese central SOEs
have been increasingly efficient and
competitive over the last five years.
"By the end of 2016, total assets of
China's central SOEs reached 50.5
trillion yuan (about 7.62 trillion U.S.
dollars), an 80 percent jump from
the end of 2011," Xiao said.
China's cabinet said Wednesday
that more work should be done to
advance the restructuring of the
central SOEs, especially in
equipment manufacturing, coal,
electricity, communications and
chemical industries. Since 2013,
more than 30 central SOEs have
been restructured, including a
merger between two of China's top
bullet train makers and that between
two major steel makers.
Expats in
Vietnam
annually earn
88,000 USD:
HSBC
HANOI: The 2017 Expat
Explorer survey from the
Hong Kong and Shanghai
Banking Corporation
(HSBC) shows that expats
in Vietnam make an
average income of 88,096
U.S. dollars a year, and 36
percent of them said their
income has increased by a
quarter since they worked
in the country, reports
BSS.
Some 72 percent of
expats in Vietnam said
they have managed to save
more money, and over 67
percent agreed that their
disposable income have
improved compared with
the time they worked in
their home country, and
the two rates are higher
than the world's average.
However, only 18
percent of expats own real
estates in Vietnam, and the
rate is half of the world's
average.
Nearly half of expats in
Vietnam said they have
longer holidays and more
c o n v e n i e n t
accommodations, and
enjoy more services
relating to local human
resources such as housekeeping
and baby-sitting.
Up to 79 percent of
expats in the country
receive many benefits in
labor contracts, mostly
h e a l t h c a r e ,
accommodation, and airfare
allowances. This rate
is higher than the world's
average. Three most
common reasons for
foreigners to work in
Vietnam include seeking a
new challenge, improving
quality of life and following
their companies' transfer
requests.
In the previous HSBC
survey, Vietnam achieved
high points in terms of
benefits as part of
employment package,
work-life balance and
fulfillment in work.
Rupee
tumbles 16
paise against
dollar, hits
65.88
Mumbai : The rupee took
more blows today as it
slipped 16 paise to a fresh six
and a half month low of
65.88 against the dollar that
gained clout overseas on talk
of a US rate hike and the
prospect of monetary
stimulus pullout, reports
BSS.
The US Fed's policy
decision and commentary
led to foreign investors
heading to the exit door
here.
Month-end demand from
importers for the US
currency is at work, forex
dealers said. The dollar's
gains against other
currencies overseas put the
squeeze on the local unit.
Yesterday, the rupee
plunged 27 paise to end at
65.72.
Meanwhile,
the
benchmark Sensex fell
further by 44.27 points, or
0.14 per cent, to 31,115.54 in
the opening trade today.
Foreign
investment
to Vietnam
up 34 pct in
9 months
HANOI : Vietnam lured 25.4
billion U.S. dollars of foreign
investment in the first nine
months of 2017, up 34.3
percent year-on-year, the
country's Foreign
Investment Agency said on
Thursday, reports BSS.
Of the total, 14.5 billion
U.S. dollars was poured into
1,844 new projects, 6.75
billion U.S. dollars into 878
operational ones, and 4.16
billion U.S. dollars into
buying shares of companies
in Vietnam.
Dollar gains build in Asia
after Trump tax plan but
stocks mixed
HONG KONG : The dollar extended its
gains in Asia on Thursday as focus
turned back to the United States after
Donald Trump unveiled his marketfriendly
tax cut plan, reports BSS.
However, regional equities struggled to
track Wall Street higher despite a broad
move back to riskier assets-as North
Korea went on the backburner-with
Treasury yields rising and safe-haven
gold prices slipping.
After months of waiting Trump released
a tax reform blueprint that would slash
corporate rates, provide relief for firms
that repatriate cash from overseas and
reduce the number of tax brackets from
seven to three.
The tycoon described it as "the largest
tax cut, essentially, in the history of our
country", while House Speaker Paul
Ryan said it was "a once-in-a-lifetime
opportunity that is all about more jobs,
fairer taxes and bigger pay checks for
American families".
Trump's promise to reduce taxes, ramp
up infrastructure spending and slash
red tape helped drive a global market
rally in the months after his November
election win. But those gains fizzled as
his legislative agenda suffered a series
of blows and his White House has
become embroiled in a host of crises.
The bill is expected to face a tough
passage through Congress, with both
sides of the aisle likely to question its
affordability, while it received a mixed
review from economists, and business
and union leaders.
Still, the unveiling sparked a rally in the
dollar as dealers bet such tax cuts would
fuel inflation. The unit was already
healthy following an indication from
Federal Reserve boss Janet Yellen that
she was in favour of further hikes.
"In the space of two days we've now had
confirmation Janet Yellen is going
to keep hiking rates and President
Trump's 'Gang of 6' have delivered a tax
plan that might get through," said Greg
McKenna, chief market strategist at
AxiTrader.
The dollar was back above 113 yen in
Asia, having briefly broken the level for
the first time since July on Wednesday.
The gains in the dollar against the yen
helped Japan's exporters, leaving the
Nikkei 0.5 percent higher by the close.
There was little impact on Japanese
markets after Prime Minister Shinzo
Abe officially dissolved parliament,
kicking off campaigning for a national
election on October 22.
While Sydney and Singapore eked out
small gains, Hong Kong, Shanghai,
Taipei and Wellington were all lower.
In early European trade London rose
0.1 percent, Frankfurt gained 0.2
percent and Paris was flat.
Oil market investors are keeping tabs
on events in the Middle East after
Kurds overwhelmingly voted for
independence from Iraq, which has
sparked fears of a crackdown by
Baghdad and possible military
confrontation.
The vote led Iraq's leaders to threaten
to take over oil fields in the region,
while Turkey said it would cut off
exports. McKenna described the
situation as "something to watch
geopolitically and for oil traders as the
market tightens up".
Samsung Bangladesh
launches "Privilege Club"
Samsung Electronics Bangladesh, the
global leader in consumer electronics, has
recently launched 'Samsung Privilege Club'
to give its members best quality products
and after sales services. 'Samsung Privilege
Club' members can get minimum BDT
40,000 worth value by purchasing selected
products, says press release.
To be a member of 'Samsung Privilege
Club', customers need to purchase selected
models of TV, refrigerator, microwave oven
and washing machines and write PRIV
model code shop code
and send it to 6969 to get their unique
Privilege Club ID number. After getting
their Privilege Club ID they can avail 5%
cashback on next purchase with it and enjoy
other exclusive benefits from Samsung. The
members can also refer three of their
friends and family members to enjoy 5%
discount on any home appliances of the
company. The Privilege Club also includes
exclusive facilities like five years' service
warranty, free demonstration service from
inflation: IMF
WASHINGTON : Worker pay in rich
countries has stagnated as employers shift
to part-time and temporary labor while
unions declined, helping generate
persistently weak inflation, according to
new IMF research released Wednesday,
reports BSS.
The findings go to the center of the debate
in key central banks over how fast to remove
the stimulus put in place amid the Great
Recession, since low unemployment rates
have not led to higher inflation as in a
normal economic recovery.
"Recent labor market developments in
advanced economies point to a possible
disconnect between unemployment and
wages," the International Monetary Fund
economists found in their report.
Crunching data from across 29 advanced
the engineers at their doorstep, express
service within 24 hours to match their busy
lifestyle and EMI facilities.
Firoze Mohammad, Head of Consumer
Electronics of Samsung Electronics
Bangladesh said, "We are truly delighted to
launch 'Privilege Club' for the first time ever
in Bangladesh for our valued customers of
home appliances to give them best in class
experiences of our products. As a member
of 'Privilege Club', they will be able to get
exclusive benefits from us which we believe
will make their life much easier".
Samsung's new offer will be entitled for all
the customers across selected Samsung
Brand Shops, Samsung authorized
showrooms of Fair Electronics Limited,
Transcom Digital, Electra International,
Rangs and Singer till 31st December of this
year. For more details please visit
www.facebook.com/samsungbangladesh.
Interested customers can also call at
08000-300-300 (Toll free) or09612-300-
300 to know further information.
'Surface healing'
masks stagnant wages,
economies between 2000 and 2016, the
IMF study found median unemployment
rates fell steadily since 2013 even as labor
force participation rates increased.
But that decline in joblessness may
represent only a kind of "surface healing,"
the authors said.
The jobs recovery since the 2008 crash
appeared to coincide with fundamental
changes in company-worker relationships,
with employers across the developed world
increasingly relying on part-time positions
and short-term contracts-while employees'
ability to bargain for higher pay eroded.
True 'slack' in labor markets - As a result
of the changes, central banks should rethink
"the true degree of slack" in labor
markets as they begin to withdraw stimulus
and raise interest rates, the IMF said.