ECONOMY & BUSINESS BANGLADESHTODAY 10 THE WEDNESDAy, JANUARy <strong>16</strong>, 2<strong>01</strong>9 Deputy Minister for water resources AKM Enamul Haque Shamim and State minister Zahid Faruque visited the head office of Bangladesh Water Development Board recently. Photo: Courtesy Asian markets resume rally as pound holds ground ahead of vote Asian markets on Tuesday rebounded from the previous day's sharp losses, with Hong Kong and Shanghai lifted by Chinese plans to slash taxes to boost the economy, while the pound extended gains ahead of a crunch Brexit vote. China's disappointing trade data on Monday sent shivers through trading floors as it showed the long-running US tariffs row is beginning to bite. But dealers got back on the horse, resuming last week's rally that was fuelled by optimism that Beijing and Washington will eventually resolve their differences and the Federal Reserve will pause in raising interest rates. Tuesday's gains were helped by a bump in financials after Wall Street giant Citibank said it provided a positive outlook for its trading environment ahead of the corporate earnings season, while energy firms were supported by rising oil prices. Hong Kong climbed two percent, Shanghai ended up 1.4 percent, with investors also cheered by news of a range of tax cuts to support the stuttering economy. Officials said they had implemented tax and fee reductions worth about 1.3 trillion yuan ($192 billion) in 2<strong>01</strong>8 and that "larger-scale reductions" were expected this year to aid small businesses and manufacturing. They are the latest in a series of piecemeal stimulus measures in recent weeks, including tax cuts for small businesses and easing financial pressures on banks in order to boost lending. "Investors have gained confidence as more stimulus moves have emerged and are expected to be intensively rolled out after the (Lunar New Year holidays)," said Zhang Gang, a strategist with Central China Securities. The latest announcement comes a day after a disappointing batch of trade data and a slew of other figures showing the world's number two economy struggling. Next week sees the release of 2<strong>01</strong>8 growth figures that are expected to be the weakest in almost three decades. "Tax reduction is almost the only way to boost personal consumption and private businesses," which are the main worries in the current slowdown, Wang Jian, a Shanghai-based economist at Shenwan Hongyuan Group said. Tokyo gained one percent while Seoul, Singapore, Taipei and Mumbai were each more than one percent higher. Sydney, Wellington and Jakarta were also well up. Still, uncertainty is keeping traders' feet on the ground, with the US shutdown - now in its fourth week - beginning to fuel concerns and showing no sign of ending soon. The pound continued to rise against the dollar and briefly broke above the $1.29 mark for the first time since late November ahead of the vote by MPs on Prime Minister Theresa May's controversial Brexit deal. While the plan is expected to be rejected, experts say the margin of loss will be key. A massive defeat for the government would mean her deal is dead in the water and the pound could dive to a two-year low of around $1.22. However, a smaller loss could provide some wiggle room for May to hammer out a more palatable agreement with her EU counterparts. For their part, more than 100 members of the European parliament promised to back a delay to the Article 50 deadline of March 29 for Britain to formally leave the EU and try to avert an economically damaging no-deal split. May on Monday delivered a lastditch plea to lawmakers to back her deal, saying they "have a duty to implement the result of the referendum". But with her defeat widely expected, opposition Labour leader Jeremy Corbyn has said he will call for a vote of no confidence in the government, which could lead to another general election, fuelling more uncertainty. In early European trade London rose 0.7 percent, Paris gained one percent and Frankfurt was up 1.2 percent. Demand for oil is strong, says Saudi energy minister Saudi Arabia's Energy Minister Khalid Al-Falih: The global economy is strong enough, I'm not too concerned. If a slowdown happens, it will be mild, shallow and short Khalid Al-Falih: On the supply side, we are vigilant to take appropriate response if there is an impact on demand ABU DHABI: Saudi Arabia's Energy Minister Khalid Al-Falih said that oil demand remains strong and that he sees no impact from US-China trade tensions. "The global economy is strong enough, I'm not too concerned. If a slowdown happens, it will be mild, shallow and short," he told reporters in Abu Dhabi on Monday. "The fundamentals of oil demand are sufficiently strong and the oil market will not be impacted. On the supply side, we are vigilant to take appropriate response if there is an impact on demand." Al-Falih said earlier that the oil market was "on the right track" and there was no need for an extraordinary OPEC meeting before its next planned gathering in April. Carmakers shift into reverse China's auto industry is experiencing negative growth for first time in 28 years China's auto industry is experiencing negative growth for the first time in 28 years, The Paper reported. In 2<strong>01</strong>8, China produced and sold 27.81 million and 28.08 million units, respectively, a decrease of 4.2% and 2.8% from a year earlier, data released by China Association of Automobile Manufacturers (CAAM) on Monday showed. CAAM attributed the drop to the elimination of the preferential purchase tax policy, as well as downward pressure on the economy and declining consumer confidence. China's development environment this year is more complicated and challenging amid the increasing downward pressure on the economy, and the government's work will be arduous, said Premier Li Keqiang in the State Council executive meeting on Monday, Yicai.com reported. China must deepen its reforms and open up more to stimulate the economy and rely on a vigorous market to cope with downward pressure and keep growth in a reasonable range, Li pointed out. The government must take measures to stabilize economic growth, promote supply-side reform, adjust the economic structure, improve people's livelihood and prevent risks, Li emphasized. Meanwhile, the government must further optimize the business environment for companies, achieve new growth momentum, expand the domestic market, and promote the coordinated development of industries and regions, he said. German economy likely saw 'slight rebound' in the fourth quarter: statistics body German carmakers are struggling to get ready for tough new EU emissions tests, which caused production bottlenecks across the vital sector. The German economy, Europe's largest, likely recovered slightly in the fourth quarter of 2<strong>01</strong>8, avoiding a technical recession after negative growth in the third quarter, national statistics body Destatis said Tuesday. "There were signs of a slight rebound at the end of the year," Destatis expert Albert Braakmann told reporters. The office will release its preliminary fourth quarter growth figure on February 14. German output shrank by 0.2 percent from July to September, dragged down by problems in the crucial car sector. Uncertainty about Brexit and weaker Chinese growth as a result of US-led trade tensions have further rattled nerves in export-reliant Germany. But many economists have been quick to stress that Germany's underlying fundamentals remain strong, powered by healthy domestic demand. "Even if it happens a technical recession should not leave any marks on the labor market but should be the very final wake-up call to step up investments and structural reforms," said ING Diba bank analyst Carsten Brzeski. IFIL launches three new products China-N. Korea trade battered by UN sanctions China's trade with North Korea plummeted last year, data showed Monday, as harsh UN sanctions batter the nucleararmed country's economy. Beijing is a key ally of the isolated state and its main source of trade and aid - but in 2<strong>01</strong>7 it backed United Nations measures to punish Pyongyang over its nuclear and ballistic missile activities. The sanctions on trade in North Korea's most valuable commodities sent bilateral trade plunging 52.4 percent last year compared to 2<strong>01</strong>7. China's imports from its neighbour dropped 88 percent in 2<strong>01</strong>8 year-on-year to 1.42 billion yuan ($210 million), while its exports slumped 33.3 percent to 14.7 billion yuan ($2.18 billion), according to customs administration spokesman Li Kuiwen. "For trade between China and North Korea, we are strictly implementing the resolutions of the (UN) Security Council," Li told reporters. The trade sanctions seek to cut off the North's access to hard currency by banning its main exports - coal and other mineral resources, fisheries and textile products. They have pummelled the country's economy, which contracted 3.5 percent in 2<strong>01</strong>7 - its worst showing in two decades - South Korea's central bank said last year. The North's mining industry slumped 11 percent in 2<strong>01</strong>7, the Bank of Korea said, after growing 8.4 percent in 20<strong>16</strong>. Manufacturing output also fell 6.9 percent that year - down from 4.8 percent growth - while agriculture and fisheries slipped 1.3 percent, after also expanding in 20<strong>16</strong>. China and Russia have both said the UN should consider relaxing sanctions on Pyongyang, while Washington is demanding the North give up its nuclear arsenal before any relief from sanctions is granted. Dubai Parks and Resorts reports 22pc growth in visits Dubai Parks and Resorts, the region's largest integrated theme park destination, attracted almost 2.8 million visits during 2<strong>01</strong>8 Numbers were bolstered by the integration of an annual pass program, increased occupancy of the Lapita Hotel and increased footfall from international tourists LONDON: The Dubai theme park operator DXB Entertainments said its destination had seen a 22 percent rise in visits last year, although the news failed to impress investors, with shares in the company falling on Monday. The company said that Dubai Parks and Resorts, the region's largest integrated theme park destination, attracted almost 2.8 million visits during 2<strong>01</strong>8. Islamic Finance and Investment Limited (IFIL) formally launched its three new products to facilitate customer and provide better financial service, a press release said. A. Z. M. Saleh, Managing Director and CEO of IFIL, launched the products at a ceremony held at the National Press Club on Tuesday .The new products are one deposit product- Mudaraba Asan Deposit Scheme and two investment products-Raha (Comfort) and Sila Ul Istihlaq (Commodity). Among others, IFIL Vice Chairman Anis Salahuddin Ahmad, Executive Committee Chairman Anwar Hossain Chowdhury, Director Liaquat Hossain Moghul, Deputy Managing Director Muhammad Ruknuzzaman, senior executives of IFIL, journalists from electronic and print media attended the ceremony. Explaining the key features of the new products, A. Z. M. Saleh said 'Mudaraba Asaan Deposit Scheme' is introduced to encourage core deposit from the low end to high end individual clients. This product is very flexible unlike the other deposit schemes. The client can deposit any amount at anytime in this scheme and the profit shall be counted daily basis. Saleh said 'Raha-HPSM/Bai Muajjal (Comfort)', an investment facility, will support the opening and retirement of Letter of Credit amount to purchase and acquisition of raw materials, capital machineries, commercial vehicles, heavy equipment, etc. of the clients against L/C opened and maintained with other banks. Under 'Silaa Ul Istihlak-Bai Murabaha (Commodity)', the clients will purchase and have acquisition of commodity items for trade, Saleh said adding that it is not exactly like the Bai Muajjal facility and not for working capital (purchasing of raw materials).The product is offered to purchase commodity items to resale in the market to fulfill the seasonal demand of the market, he said. China's US trade surplus hit record in 2<strong>01</strong>8 but tariffs bite Rumee A Hossain, Chairman, Executive Committee of the Board, Bank Asia inaugurates 49th Foundation Training Course for Management Trainees at Bank Asia Institute for Training & Development (BAITD) in Lalmatia, Dhaka today. Md. Arfan Ali, President & Managing Director, K S Nazmul Hasan, Head of People Management Division (HRD), Head of Training Md. Azharul Islam, Ms. Krishna Saha, AVP & Head of Lalmatia Branch (CC) and Sujit Kumer Sen, AVP, BAITD were present in the program. Photo: Courtesy China's trade surplus with the United States hit a record high last year but the country's imports and exports fell in December as the long-running trade war begins to bite in the world's number two economy, data showed Monday. The surplus with the US is a major source of anger within the Trump administration, which imposed tariffs on hundreds of billions of dollars worth of Chinese goods last year and has warned of more to come. Despite the levies, exports to the United States grew 11.3 percent last year while imports rose 0.7 percent, expanding the surplus to a record $323.3 billion from $275.8 billion in 2<strong>01</strong>7, customs data show. However, in a sign that the White House's measures are having an impact, China's exports to the US sank last month. The figures come after a US delegation held three days of talks in Beijing last week in the first face-to-face meeting since Donald Trump and Chinese leader Xi Jinping in December pledged a 90-day truce to resolve the crisis. Trump wants Beijing to buy more American goods to narrow the yawning trade gap and allow foreign players better access and protection in the Chinese market. China traditionally imports vast quantities of American soybeans in the second half of the year, long making it the most valuable import from the US. But the buying fell off last year after China imposed a 25 percent retaliatory tariff on the commodity in the summer. Total imports of soybeans fell 7.9 percent last year to 88 million tonnes, customs data showed, with December imports down 40.1 percent from a year earlier. "The overall development of China- US trade in 2<strong>01</strong>8 was still relatively normal, but the trade surplus did expand slightly," said Li Kuiwen, spokesman for the customs administration. The country's commerce minister told state media on Friday that China will work to straighten out trade frictions with the US this year. China's exports to the world fell 4.4 percent in December from a year earlier, while imports dropped 7.6 percent, reflecting sluggish demand at home and abroad. "With global growth set to cool further this year, exports will remain weak even if China can clinch a trade deal that rows back Trump's tariffs," said Julian Evans-Pritchard of Capital Economics.
MISCELLANEOUS WednesdAY, JAnuARY <strong>16</strong>, 2<strong>01</strong>9 11 College student 'commits suicide' in Rajshahi RAJSHAHI : A college student reportedly committed suicide by hanging himself from a ceiling fan at his residence at Rajpara in the city on Monday, reports UNB. The deceased was identified as Ishtiaque Omi, 20, a Class XII student of Rajshahi Cantonment Board School and College and son of Masud Ahmed, hailing from Srirampur area in Nachole upazila of Chapainawabganj district. There had been an altercation between Omi and his father at noon over some family affairs, said Hafizur Rahman, officer-in-charge of Rajpara Police Station. Later, Omi went to his room. As there was no response from the room till 5 pm, his family member broke the door and found the body hanging from the room. On information, police recovered the body and sent it to Rajshahi Medical College Hospital for an autopsy. Iqvmv-Rt Zt- 23/19 GD-88/19 (20 x 4) GD-86/19 (18 x 4)
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