26-03-2018

ECONOMY & BUSINESS
MONDAY,
THE
BANGLADESHTODAY
MARCH 26, 2018
10
IPDC Finance Limited, the first financial institution of Bangladesh established in 1981, recently has
announced its completion of second successful year since the unveiling of its 5 years strategy paper
at the 13th Extraordinary General Meeting (EGM) & 36th Annual General Meeting (AGM) held at
Spectra Convention Centre, Gulshan-1, Dhaka-1212. The company has declared that the profit went
up by 10.7% to 335.4 million taka. With an upbeat outlook, IPDC declared a 20% stock dividend for
the year 2017, which was approved by the shareholders. Amongst others the meeting was also
attended by the Board of Directors who represented the majority shareholders BRAC, Aga Khan
Foundation, Government of Bangladesh and RSA Capital. Mominul Islam, Managing Director and
CEO; Samiul Hashim, Company Secretary and other senior officials of the Management Committee
of IPDC Finance Limited were also present at the meeting.
Dollar extends losses on
Fed move, Trump
revives trade war fears
The dollar extended losses
in Asia on Thursday after the
Federal Reserve stuck to its
target for interest rate hikes
this year, but fresh fears of a
trade war hit equity markets
as Donald Trump prepared
new sanctions on China,
reports BSS.
After one of the most anticipated
meetings in recent
months, the central bank lifted
borrowing costs, as
expected, to a decade high
but indicated just two more
over the rest of the year, confounding
forecasts of three
more.
Jerome Powell, in his first
news conference since taking
the helm, said the move was
in response to a strong economic
outlook that had been
helped by December's tax
cuts, while improving jobs
creation was lifting incomes
and confidence.
In response, the dollar sank
against most other units in
New York and while the Fed
also said it saw a more
aggressive path of hikes over
the next two years as the
economy continues to
strengthen, the US unit failed
to bounce back. It extended
the losses in Asia, with talk of
a monetary tightening trend
in Europe and Japan adding
to its weakness.
"The statement would suggest
it's open season on the
dollar and greenlights sellers
to re-engage as the Fed failed
to confirm any of the markets'
hawkish suspicions,"
said Stephen Innes, head of
Asia-Pacific trading at OAN-
DA.
The dovish short-term outlook
for US borrowing costs
provided optimism for Asian
investors initially before a
broad rally fizzled.
Tokyo ended one percent
higher after a three-day losing
streak and Seoul closed
up 0.4 percent.
But trading floors remain
edgy as it emerged Trump is
expected to hit China over
what Washington calls "theft"
of US intellectual property.
The move would further
strain tensions with Beijing
after the White House
unveiled controversial tariffs
on imports of steel and aluminium,
which sparked fury
from world leaders.
China vowed to respond
with "necessary measures to
Fed Chair: US not on 'cusp'
of accelerating inflation
New Federal Reserve Chairman Jerome Powell said
Wednesday the central bank sees no signs that prices are set
to rise sharply in the US economy, reports BSS.
In his first press conference as Fed chief, Powell said "there
is no sense in the data that we are on the cusp of an
acceleration of inflation."
There have been moderate increases in wages and price
inflation, but the Fed is "very alert" to any increases that
could result from the very low unemployment rate.
"It's not something we observe at the present," Powell said.
Asked about the rising trade frictions sparked by President
Donald Trump's aggressive actions, targeting China in
particular, Powell said central bankers now view the prospect
of a trade war as a growing threat to the economy.
"This is a new risk that had been probably a low profile risk
which has become more prominent risk to the outlook," he
said.
But officials did not get into specifics on whether the trade
hit would impact inflation or growth, he said.
resolutely defend its legitimate
rights and interests".
Oxford Economics chief
Asia economist Louis Kuijs,
said: "The key risk is that it
does not end with this modest
baseline scenario.
"More measures may follow,
and tit-for-tat responses
could lead to escalation. Collateral
damage in other
economies will be significant
and could further complicate
the trade friction."
Hong Kong fell 1.1 percent
and Shanghai shed 0.5 percent.
Earlier on Thursday
Hong Kong's de facto central
bank and the People's bank of
China announced measures
to tighten their monetary policy.
Singapore fell 0.3 percent
and Sydney gave up 0.2 percent
while Wellington and
Taipei were also lower.
In early European trade,
London fell 0.8 percent, Paris
shed 0.7 percent and Frankfurt
lost one percent.
On oil markets, both main
contracts extended Wednesday's
surge following an official
report showing US stockpiles
fell last week, confirming
an industry group's figures
and indicating a pick-up
in demand.
Adding to the buying sentiment
are brewing geopolitical
tensions with speculation
about Trump tearing up the
Iran nuclear deal mixed with
a drop in supplies from crisishit
Venezuela.
An upbeat assessment on
the supply-demand outlook
from the Russia-OPEC group
that has capped output also
provided hopes for further
price hikes.
"Oil is roaring higher and
there is nothing like a bit of
geopolitical tension combined
with a clear technical
break, and an unexpected
draw in inventories to push
prices," said Greg McKenna,
chief market strategist at Axi-
Trader.
Sensex turns
rangebound,
Nifty below
10,200
The BSE Sensex pared
initial gains to trade in a range
Thursday, amid global
volatility after the US Federal
Reserve's interest rate hike,
reports BSS.
The 30-share index was
trading at 33,152.99 at
1150hrs, with a gain of 16.81
points, or 0.05 per cent.
The broader Nifty index was
trading below the key 10,200-
level, at 10,176.70, up 21.05
points or 0.21 per cent.
Weakness was seen in
banking and realty stocks.
Major losers include SBI,
M&M, ICICI Bank, Tata Steel
and Adani Port, falling up to 2
per cent. While, gainers were
ONGC, Tata Motors, Reliance
Industries, Sun Pharma and
IndusInd Bank.
Asian markets witnessed
volatility after the US Federal
Reserve raised rates by 25
basis points to 1.75 per cent
yesterday, signalling two
more hikes for 2018.
Nikkei 225 index edged up
0.99 per cent, or 211.02
points, to close at 21,591.99,
while the broader Topix
swung between losses and
gains, to trade 0.65 per cent,
or 11.10 points, higher at
1,727.39.
Hong Kong stocks
sink on fresh
trade war worry
Hong Kong stocks sank
Thursday on fresh global
trade war fears after the US
said Donald Trump would
impose new sanctions on
China over what it called
intellectual property
violations, reports BSS.
The Hang Seng Index fell
1.09 percent, or 343.47 points,
to end at 31,071.05.
The benchmark Shanghai
Composite Index lost 0.53
percent, or 17.47 points, to
3,263.48 and the Shenzhen
Composite Index, which
tracks stocks on China's
second exchange, fell 0.48
percent, or 9.01 points, to
1,849.60.
EU unveils digital tax targeting
Facebook, Google
The EU unveiled Wednesday
proposals for a digital tax that targets
US tech giants, heaping more problems
on Facebook after revelations over
misused data of 50 million users
shocked the world, reports BSS.
The special tax is the latest measure
by the 28-nation European Union to
rein in Silicon Valley giants and could
further embitter the bad-tempered
trade row pitting the EU against US
President Donald Trump.
EU Economic Affairs Commissioner
Pierre Moscovici presented his
proposals in Brussels aimed at
recovering billions of euros from mainly
US multinationals that shift earnings
around Europe to pay lower tax rates.
"This current legal vacuum is creating
a serious shortfall in the public revenue
of our member states," France's
Moscovici told a press conference in
Brussels.
"We estimate this could generate at
least five billion euros a year if the tax is
imposed at three percent."
Moscovici insisted it was "not an anti-
GAFA tax nor an anti-US tax", referring
to the popular acronym for Google,
Apple, Facebook and Amazon.
The transatlantic blow has been
championed by French President
Emmanuel Macron and will be
discussed over dinner at an EU leaders
summit on Thursday.
The unprecedented tech tax follows
major anti-trust decisions by the EU
that have cost Apple and Google billions
and also caught out Amazon.
The EU tax would affect revenue from
digital advertising, paid subscriptions
and from "sale of data generated from
user-provided information", the
European Commission said.
The tax lands as EU agencies are also
set to tighten rules on data privacy,
targeting tech firms. The issue has come
to the forefront following revelations
that a firm working for Trump's US
presidential campaign harvested data
on 50 million users of Facebook.
The EU tax plan will target mainly US
companies with worldwide annual
turnover above 750 million euros ($924
million), such as Facebook, Google,
Twitter, Airbnb and Uber.
Spared are smaller European startups
that struggle to compete with them.
Brussels is seeking to choke taxavoidance
strategies used by the tech
giants that, although legal, deprive EU
governments of billions of euros in
revenue.
Under EU law, firms like Google and
Facebook can choose to book their
income in any member state,
prompting them to pick low-tax nations
like Ireland, the Netherlands or
Luxembourg.
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Islami Bank Bangladesh Limited organized a discussion meeting and doa remembering the martyrs
on 25th March 1971 and marking the Independence and National Day on March 25, 2018 Sunday at
Islami Bank Tower, Dhaka. Arastoo Khan, Chairman of the bank attended the program as chief
guest. Professor Dr. Mijanur Rahman, Vice Chancellor of Jagannath University addressed the program
as guest of honor. Presided over by Md. Mahbub ul Alam, Managing Director and CEO of the
Bank, the program was addressed by Md. Zillur Rahman, Chairman, Audit Committee, Helal Ahmed
Chowdhury, Chairman, Risk Management Committee, Shamim Mohammed Afzal, Md. Syful Islam,
FCA, FCMA, Md. Joynal Abedin, Professor Dr. Qazi Shahidul Alam, Syed Abu Asad and Dr. Tanveer
Ahmad, Directors and Abu Reza Md. Yeahia, Deputy Managing Director of the Bank. Additional
Managing Directors, Deputy Managing Directors, top executives and officials of the Bank attended
the program.
GD-456/18 (15x4)