24-03-2019

ECONOMY & BUSINESS
10
SUnDAy, MARCH 24, 2019
China's new Silk Road gets
bumpy as Xi visits Italy
Prof. Dr. Md. Salim Uddin, FCA, FCMA, Chairman, Executive Committee of Islami Bank
Bangladesh Limited and Chairman of Bangladesh House Building Finance Corporation addressing
a Conference on 'Digitization in the Insurance and Bima' organized by Insurance Development and
Regulatory Authority-IDRA as special guest in Chattogram recently.
Photo: Courtesy
Sudan summons Egypt envoy
over Red Sea oil bids
Sudan summoned Egypt's ambassador
to Khartoum on Thursday to protest
Cairo's "illegal" call for oil and gas
exploration bids in the Red Sea area of
Halayeb, claimed by both countries,
reports BSS.
Egypt's control of the Halayeb triangle,
which lies in a mineral-rich border
region, has for decades been a bone of
contention between Cairo and
Khartoum, despite an overall
improvement in ties since an October
summit.
On March 10, Egypt's state-owned
South Valley Egyptian Petroleum
Holding Company invited bids for 10 oil
and gas exploration blocks in what it said
were Egyptian territorial waters in the
Red Sea.
"The foreign ministry summoned the
Egyptian ambassador Hossam Eissa on
Thursday to protest against the tenders
invited by the Egyptian oil ministry for
areas under the sovereignty of Sudan,"
Sudan's foreign ministry said in a
statement.
"Sudan is asking Egypt to stop all
procedures concerning the tenders given
the situation about the Halayeb triangle."
Sudan has regularly protested at
Egypt's administration of Halayeb and
the Shalatin border region near the Red
Sea, saying they are part of its sovereign
territory since shortly after
independence in 1956.
On Wednesday, Sudan had warned
Egypt against its offer of exploration
blocks.
Sudanese minister of state for oil and
gas Saad el-Deen el-Bushra said the
move was "a direct intrusion" onto his
ministry's authority to grant exploration
licenses in the area.
On Thursday, the foreign ministry
summoned the Egyptian ambassador
and urged international companies
working in the area to not to submit bids
for the blocks. "The government of
Sudan can take measures to prevent any
company from operating in this area,"
the ministry warned.
It did however call on Cairo to resolve
the situation "through peaceful means"
to avoid damaging the improving ties
between the two countries.
Relations between Cairo and
Khartoum had turned sour in early 2017,
when Sudan's President Omar al-Bashir
accused Egypt of supporting rebels in
conflict zones, including Darfur in
western Sudan.
Sudan in May 2017 banned the import
of animal and other agricultural products
from its northern neighbour.
But in October, it lifted the ban as ties
improved following talks in Khartoum
between Bashir and his Egyptian
counterpart Abdel Fattah al-Sisi.
Egypt has this year repeatedly called
for stability in Sudan after protests
erupted on December 19 against Bashir's
three-decade rule.
Demonstrations and deadly clashes
erupted after a government decision to
triple the price of bread.
Bashir has remained defiant, imposing
a nationwide state of emergency on
February 22.
Chinese President Xi Jinping kicks off
a whistlestop European tour in Rome on
Friday amid growing Western unease
over Italy joining the ever-expanding
Asian giant's new Silk Road project,
reports BSS.
Prime Minister Giuseppe Conte is to
sign a memorandum of understanding
with Xi on Saturday for Italy to join the
$1 trillion Belt and Road Initiative, the
first G7 member to do so, despite
apparent divisions within the ruling
coalition.
Xi arrived in Rome on Thursday night
and is to meet his Italian counterpart
Sergio Mattarella on Friday during a trip
that will also take in parliament and the
Colosseum.
Around 1,000 extra police have been
deployed around Rome for the state visit
before Xi heads to Palermo, where his
singer wife Peng Liyuan reportedly
wants to see the Teatro Massimo opera
house.
In what some perceived as a snub,
Italy's far-right Deputy Prime Minister
Matteo Salvini said he would not attend
Saturday's state dinner for Xi at
Mattarella's Quirinal Palace.
Salvini has said Italy would be "noone's
colony" and urged caution about
using telecom giant Huawei's next
generation 5G mobile technology, while
coalition partner Luigi Di Maio is keener
for Chinese partnerships.
The United States has warned
European allies that Huawei could use
its 5G technology as a "backdoor" for
spying, while China has lashed out at
"immoral" attacks.
NATO member Italy's plan to join
China's ambitious maritime, rail and
road venture, which critics warn mainly
benefits Chinese firms, has raised
eyebrows among Western allies and
within Italy.
Rome is at risk of becoming "a sort of
Chinese Trojan horse in Europe," said
Mariastella Gelmini of former prime
minister Silvio Berlusconi's Forza Italia
party.
Debt-ridden Italy is technically in
recession and keen to have more
business with China.
"I think that any new thing needs to go
through a development process,"
China's Vice Minister of Foreign Affairs
Wang Chao told journalists of the
controversy in Italy.
White House official Garrett Marquis
last week tweeted that there was "no
need" for Italy to endorse "China's
infrastructure vanity project".
Deputy Prime Minister Di Maio of the
anti-establishment Five Star Movement
is to address a China-Italy business
forum on Friday.
Xi's visit comes a week after the
European Union released a 10-point
plan outlining a shift to more assertive
relations with Beijing, warning that
China was a "rival" to the bloc as well as
its biggest trading partner.
Conte is expected to reassure
European partners about the nonbinding
MoU at an EU summit in
Brussels on Thursday and Friday, before
heading back to Rome for the signing.
France on Thursday announced that
President Emmanuel Macron will hold
trade and climate talks on Tuesday with
Xi, German Chancellor Angela Merkel
and European Commission president
Jean-Claude Juncker.
As he arrived for the EU summit in
Brussels, Macron welcomed what he
called Europe's "awakening" to the
challenge posed by China.
But his office struck a more
conciliatory tone in announcing
Tuesday's talks, saying it was an
opportunity to explain Europe's strategy
and seek "points of convergence
between Europe and China".
The meeting comes ahead of a China-
EU summit in Brussels next month, as
the bloc struggles to forge Europe-wide
China policies.
"China has a big advantage by
planning 30 years in advance, while
Western countries plan for the following
year," said Giuliano Noci, China expert
at Milan Polytechnic business school.
"In this sense the Chinese will always
be at an advantage," Noci told AFP.
Supporters of the MoU said that it will
lead to China complying with European
Union standards, and cannot be
compared to debt-inducing deals
Beijing has signed with developing
countries.
The CEO of Italian tyre giant Pirelli,
which is 45-percent Chinese-owned,
said that any agreements must be
"balanced".
"We need to stabilise the rules of the
game, but interests are converging and
we can't lose this opportunity," Marco
Tronchetti told Corriere della Sera.
Despite apparent warming ties, Xi is
not expected to meet Pope Francis.
The Vatican has diplomatic relations
with Taiwan and not Beijing, so the
encounter would be unlikely despite an
agreement on appointing bishops in
China signed last year.
Xi heads to Monaco on Sunday and
then on to France to cap his European
tour.
Shahjalal Islami Bank awarded
Scholarship the brilliant students
Pound up but still
faces pressure after
Brexit delay deal
The pound rose Friday but
was struggling to claw back its
latest losses after the EU gave
Britain a Brexit deadline
extension, while equity
markets mostly rose on a
positive lead from Wall
Street, reports BSS.
At a summit in Brussels,
Prime Minister Theresa May
was given until April 12 to
push her divorce agreement
through a fractious
parliament next week. If she
manages to get it passed, the
exit date will be pushed back
until May 22.
However, a third defeat by
MPs would mean Britain
crashes out on April 12, unless
London agrees to take part in
European elections, a move
the prime minister previously
has ruled out.
The announcement puts
pressure on May to get her
deal through Westminster,
with French President
Emmanuel Macron warning:
"In the case of a negative
British vote then we'd be
heading to a no-deal."
The sterling has come
under pressure owing to the
uncertainty in the past few
days, falling to as low as
$1.3004 Thursday, though it
has recovered slightly and is
still maintaining its position.
However, OANDA senior
market analyst Jeffrey Halley
remained wary.
"The investor community
continues to price the pound
as if a no-deal Brexit is not
possible, looking for excuses
to buy rather than sell," he
said in a note.
"A close look at the text of
the EU announcement
suggests this is not a
guaranteed outcome."
The Bank of England on
Thursday expressed concern
that further "uncertainties"
over a "cliff-edge" no-deal
Brexit "could have a
significant effect on
spending" by businesses.
Equities were mostly up but
dealers were treading warily
as they weighed an indication
from the Federal Reserve that
borrowing costs will not rise
this year with concerns about
the slowing economy and
stuttering China-US trade
talks. Tokyo ended 0.1
percent higher and Shanghai
gained 0.1 percent while
Sydney added 0.5 percent,
Seoul gained 0.1 percent and
Wellington jumped one
percent.
Singapore, Taipei, Manila
and Bangkok were also well
up.
But Hong Kong fell 0.3
percent in the afternoon while
Mumbai and Jakarta were
lower.
The next possible marketmoving
catalyst could be next
week as top US officials head
to Beijing on March 28-29 for
a new round of trade talks,
followed by a trip to
Washington by China's top
negotiator in April.
While there is optimism a
deal will eventually be struck,
Donald Trump caused ripples
when he said Wednesday that
US tariffs on Chinese imports
could remain in place for a
"substantial period",
dampening hopes that an
agreement would see them
lifted soon.
Hun Sen denies Cambodia is Chinese
'colony' as work on $2 bn road begins
Cambodia broke ground Friday on a $2 billion Chinesefunded
expressway - the country's first - as strongman
premier Hun Sen denied his country was in danger of
becoming a colony of Beijing, reports BSS.
Once complete in 2023 the expressway will connect the
capital Phnom Penh to Sihanoukville, a southern resort and
seaport that has become a honeypot for Chinese gamblers
and investors.
The near 200-kilometre (124-mile) road is being
constructed by the China Road and Bridge Corporation and
is a part of China's ambitious Belt and Road project.
"This road will cost around $2 billion… this is a
tremendous project," Hun Sen said during a groundbreaking
ceremony in Kampong Speu province, adding the
expressway is "the first one" in Cambodia.
But he defended the Chinese investment.
Critics say "China is colonialising Cambodia… although
China wishes to control Cambodia, Cambodia will not let it
do so," Hun Sen said.
Chinese Vice Foreign Minister Kong Xuanyou, who
attended the ceremony, also brushed off concerns over
Beijing's influence.
"Some groups with ill-will have turned white-to-black,
colouring Chinese investment as a trap," he said through a
translator.
'Strong'
outlook for US
growth: IMF
The International Monetary
Fund on Thursday said the US
economic outlook remained
"strong," a day after the
Federal Reserve trimmed its
median growth forecasts for
the year, reports BSS.
"We believe the outlook for
the US economy is strong with
historically
low
unemployment, high levels of
business and consumer
confidence helped by the
fiscal expansion that's
underway," spokesman Gerry
Rice told reporters.
The Washington-based
crisis lender is due to publish
updated global growth
forecasts on April 9. And Rice
said the IMF would have more
to say on the US economy at
that time, in addition to
reports on trade and tariffs.
Last year, the United States
began a trade war with China,
and the world's two largest
economies have since
exchanged tariffs on more
than $360 billion in two-way
goods trade.
While the sums involved are
comparatively small, the IMF
and many economists warn
the trade war could have
larger ripple effects, denting
the global economy.
On Wednesday, the Federal
Reserve lowered its 2019 US
growth forecast to 2.1 percent,
down from a 2.3 percent
estimate in December, which
was also a downward revision.
However, Fed Chairman
Jerome Powell told reporters
the central bank's outlook was
still "a positive one."
The most recent IMF
forecast for the United States
calls for GDP growth of 2.5
percent. And Rice said the
multilateral institution also
approves of the Fed's current
monetary policy decisions.
The Fed's median estimate
now calls for no interest rate
increases at all this year, after
four increases in 2018, but
this is subject to revision.
Shahjalal Islami Bank Ltd(SJIBL)
awarded scholarship among the brilliant
and poor students of the country. In this
regard a scholarship award giving
ceremony has been organized recently at
Officers Club, Dhaka. The Governor of
Bangladesh Bank Fazle Kabir handed
over the scholarship cheque among the
students as Chief Guest. There are 500
students from different Colleges, Medical
Colleges and Universities received the
Scholarship for their bright result. Among
the 500 Scholarship nominated students
there are 160 male students for SSC and
140 female students for SSC level, 120
male students for HSC and 80 female
students for HSC level. The 500 students
will be given Tk. 4 crore 19 Lac as
Scholarship as monthly basis, a press
release said.
The Chairman of Shahjalal Islami Bank
US trade negotiators
to visit China on
March 28-29: Beijing
US Trade Representative
Robert Lighthizer and
Treasury Secretary Steven
Mnuchin will visit China on
March 28-29 for a fresh round
of talks aimed at resolving the
bruising trade war, the
Chinese commerce ministry
said Thursday, reports BSS.
After their visit, Chinese
Vice Premier Liu He will head
to the United States in April to
continue the negotiations,
ministry spokesman Gao
Feng said at a press briefing.
Washington and Beijing are
battling over the final shape of
a trade deal, with American
officials demanding profound
changes to Chinese industrial
policy. President Donald
Trump warned Wednesday
that US tariffs on Chinese
imports could remain in place
for a "substantial period,"
dampening hopes that an
agreement would see them
lifted soon.
Ltd Akkas Uddin Mollah presided over
the ceremony while The Chairman of
Shahjalal Islami Bank Foundation
Engineer Md. Towhidur Rahman and the
Managing Director of the Bank M.
Shahidul Islam delivered speech.
Among others the Directors Md.
Sanaullah Shahid, Abdul Halim,
Mohiuddin Ahmed, Mohammed Younus,
Fakir Akhtaruzzaman, Managing Director
M. Shahidul Islam, Additional Managing
Director Abdul Aziz, Deputy Managing
Directors M. Akhter Hossain, Mian
Quamrul Hasan Chowdhury and Imtiaz U.
Ahmed, Head Office executives and
scholarship students were present in the
Ceremony.
The Chief Guest Fazle Kabir said, it is a
praiseworthy and notable work that
Shahjalal Islami Bank Ltd. rendering its
activities towards the welfare of mankind
as a part of CSR activities besides the
financial activities of the Bank. It is also
praiseworthy to make an opportunity for
the brilliants to make easy the way of their
higher study.
The Chairman of the Bank Akkas Uddin
Mollah said, contribution of Shahjalal
Islami Bank is noteworthy to the economic
growth of the country and the bank is
rendering lots of social activities as its CSR
activities. The brilliants are contributing to
build up an enrich Nation along with the
national economic growth of the country.
The young brilliant students of our country
are acquiring dignity both in the home and
abroad by dint of their merits.
The Managing Director of the Bank M.
Shahidul Islm indicated in his speech that
Shahjalal Islami Bank Ltd. is working for
the development of the country since its
operation.
Apple's Tim Cook urges
China to continue to
open up its economy
Apple chief executive Tim
Cook on Saturday urged China
to keep opening up its
economy as local rivals bit into
the profits of the US tech giant
caught in the crosshairs of a
trade spat between Beijing
and Washington. "We have
seen China continue to change
and evolve… We encourage
China to continue to open up,"
he said during a speech at the
annual China Development
Forum in Beijing on Saturday,
reports BSS.
"We see that as essential not
only for China to reach its full
potential, but also for the
global economy to thrive."
Apple in January revealed
that it took a hit in the
"Greater China" region, where
revenue plunged almost 27
percent in the most recent
quarter. The dip had been
expected following the
company's revenue warning
in December, where Apple
admitted that iPhone sales
and overall earnings would be
below most forecasts, citing
economic weakness in China
and trade frictions between
Washington and Beijing.
Lower priced local rivals such
as Huawei, Xiaomi and Oppo
have also been nibbling at the
California tech giant's market
share in China.
Cook has been a critic of the
US-China trade war that has
spooked global markets. Last
year, he used the China
Development Forum as a
venue to urge leaders of China
and the US to let "calm heads
prevail" and to avoid an
escalation of tariffs. Most of
Apple's flagship products are
assembled in China, leaving
the California tech giant
acutely vulnerable to Trump's
tariffs.
During his speech on
Saturday, Cook called for
partnerships based on
"openness and trust" where
world players can work
together to solve some of the
biggest problems facing the
planet including poverty,
inequality and climate
change.