18-02-2020

ECONOMY & BUSINESS
TUEsDAY, FEbrUArY 18 2020
10
Dried out: trade war cuts
Us whiskey sales to EU
A meeting of the board of Directors of Islami bank bangladesh Limited was held recently at Islami
bank Tower. Presided over by Professor Md. Nazmul Hassan, Ph.D, Chairman of the bank, the meeting
was attended by Yousif Abdullah Al-rajhi and Md. shahabuddin, Vice Chairmen, Dr. Arif
suleman, foreign director and representative of Islamic Development bank, other Directors, Md.
Mahbub ul Alam, Managing Director & CEO and JQM Habibullah, FCs, Deputy Managing Director &
Company secretary of the bank.
Photo: Courtesy
LUb's annual dealer's confce held
Europeans have developed a taste
for American whiskey over the past
decade but trade disputes have slashed
US exports of the booze, an American
trade group said Wednesday, reports
BSS.
Washington and Brussels are in the
midst of a multifaceted trade feud that
included punitive US tariffs on steel
and aluminum imports and the EU
retaliating in June 2018 by slapping a
25 percent tax on some US goods,
notably bourbon.
That took a chunk out of US whiskey
exports to Europe last year, which fell
by 27 percent, the Distilled Spirits
Council of the United States (DISCUS)
said.
US spirit exports worldwide fell by
14 percent in 2019, according to the
council.
Renewed interest in Kentucky
bourbon and Tennessee whiskey -
which unlike Scotch whisky is made
from corn - drove a 55 percent increase
in spirits over the past 10 years.
"These great American Whiskey
products that have been the toast of
the global cocktail scene are struggling
under the weight of the EU tariffs,"
DISCUS President Chris Swonger said
in a statement.
Amid another trade dispute over
European subsidies to Airbus, the US
in October imposed 25 percent tariffs
on single-malt whisky from Scotland,
and wine from France and Spain.
US officials say they are considering
raising their tariffs to as much as 100
percent, and could widen the penalty
list to add popular items such as
cognac. DISCUS expects a decision on
that by the end of this week.
The trade group is hopeful the truce
in the trade war with China and a
revised trade agreement with Canada
and Mexico "will create new
momentum for negotiations with the
EU that will result in the immediate
removal of retaliatory tariffs," said
Christine LoCascio head of public
policy for DISCUS.
Sales of spirits remained healthy in
the US in 2019, increasing by 5.3
percent to reach $29 billion.
Bourbons and whiskeys from the
southern US drove the growth along
with increased sales of rye, single malt
scotch, tequila, mezcal and pre-mixed
cocktails.
The sector continued to gain market
share against wine and beer and now
accounts for 37.8 percent of the total
alcohol market in the United States.
German court halts site preparation
for Tesla factory
A German court has temporarily
halted the site preparation for Tesla
Inc.'s first electric car factory in
Europe.
The Higher Administrative Court for
Berlin-Brandenburg ordered Tesla to
stop clearing trees on the wooded site
near Berlin until it considers an
environmental group's appeal. In a
statement Sunday, the court said it
had to issue the injunction because
otherwise Tesla might have completed
the work over the next three days.
A lower court in Germany ruled last
week that Tesla could clear the trees
for its factory. But the environmental
group Green League Brandenburg
appealed, citing the potential for the
factory to pollute the area's drinking
water and other issues. In its
statement, the higher court said there
is no reason to assume that the Green
League's appeal won't succeed.
German officials celebrated in
November when Palo Alto, Californiabased
Tesla decided to build its first
European factory in the country. Tesla
said the new plant will build batteries
and vehicles, starting with the
upcoming Model Y SUV. The company
had hoped to complete the factory in
the middle of next year.
Last month, German officials said
187 pounds of World War II
ammunition had been found at the site
as Tesla began clearing it.
Annual Dealer Conference of
National LUB, a product of Max
Group's sister concern Lub House
Industries Limited, was held on
Thursday. More than two hundred
dealers from the country participated
in the conference held at a hotel in the
capital, a press release said.
Executive Director and CEO,
Industrial Division of MAX Group Kazi
Yaminur Rashid Turjo attended the
conference as the chief guest.
Turjo said MAX Group is a well
The local multinational
electronics brand Walton
initiated 'TV Exchange
Mela' with the aim of
allowing the domestic
customers buy the local
brand's LED, Smart LED
or Smart Voice Control TV
at discounted rate through
exchanging used or faulty
televisions of any brand,
says a press release.
As per the offer,
customers can replace
their old televisions of any
brands with Walton's new
TV at special discounts,
ranging from Tk 2000 to
Tk 9,000. Customers are
enjoying the TV exchange
offer of Walton from
February 10, 2020.
Apart from this benefit,
the local television
customers may get
cashback up to Tk 8,000
by purchasing and
registering any models of
Walton TV under the local
brand's ongoing television
campaign titled 'Saddhor
Modde Srestho TV (Best
TV in best prices).' Now,
the season-2 of the
campaign has been going
on and will be continued
till February 29, 2020.
Walton TV's Marketing
Coordinator Sheikh
Tofazzal Hossain Sohel
said, "By submitting any
brand's used or faulty CRT,
LCD and LED TV to
Walton outlet, customers
could purchase any model
of Smart Voice Control TV
at discounted price,
including 813 millimeter
(mm) or 32-inch TV at Tk
21,500 instead of its
regular market price of Tk
24,990; 991mm or 39-inch
TV at Tk 25,900 against
the regular price of Tk
29,900 and 1.39 meter or
reputed group of companies in
Bangladesh and its concern LUB
House Industries Limited is doing
business for more than 18 years with
well reputation and marketing its
product National LUB maintaining the
highest quality.
He also said that dealers across the
country are the strength of National
LUBs business and we are definitely
working for the benefit of dealers and
will do whatever it takes for the dealers.
"We believe that we are not just doing
55-inch 4K resolution's TV
at Tk 90,900 instead of the
regular price of Tk 99,900.
Under the TV Exchange
Mela, customers are
offered Tk 19,500 worth
Walton's 32-inch Smart
TV at discounted price Tk
16,900; Tk 27,900 worth
39-inch Smart TV at Tk
19,500 and Tk 31,900
worth 43-inch Smart TV at
Tk 28,400.
Besides, customers could
replace their used or faulty
televisions with Walton
brand's 508 mm or 20-
inch LED TV at discounted
price Tk 8,900; 610 mm or
24-inch LED TV at Tk
9,900; 32-inch LED TV at
Tk 13,600; 39-inch LED
TV at Tk 20,490 and 43-
inch LED TV at Tk 23,990.
Apart from the TV
Exchange Mela, customer
may get Walton's 24-inch
LED TV at Tk 8,990; 32-
inch LED at Tk 11,990;
Smart LED TV at 15,990
and Smart Voice Control
TV at Tk 18,990; 39-inch
LED TV at 15,990 and
Smart LED at Tk 23,990;
43-inch LED at 19,990 and
Smart LED TV at 27,990.
Walton TV's Chief
Executive Officer Engineer
Mostafa Nahid Hossain
said, this year Walton set a
target of selling one million
units of TV. To achieve the
target, new models of TV
with
advanced
technologies and features
were released, along with
providing TV Exchange,
attractive cashback like
extra benefits. Their own
invented unique, faster
and user-friendly
operating system titled
'Rezvi Operating System
(ROS) has been used.
Walton is manufacturing
environment and
environment friendly
televisions maintaining
international standards.
Thus, Walton TV is being
business but working for the welfare of
the people of the country. So, we hope
for getting cooperation from our
dealers as always," he added.
Dealers said in their speeches that
they are getting good responses from
consumers after using National LUB
Products and maintaining the best
quality of all types of vehicles, its
market is growing bigger day by day.
The programme was ended with
raffle draws and pleasant cultural
events.
Walton initiates TV Exchange Mela
exported to Germany of
the Europe through
achieving several
standards' certificates like
Consumer Electronics
Certification (CE);
Restriction of Hazardous
Substances (RoHS) and
Registration, Evaluation,
Authorisation and
Restriction of Chemicals
(REACH).
Now, Walton TV
customers are enjoying
maximum 36 months
installment facility, six
months replacement
warranty, along with
maximum 4 years
guaranty on TV panels as
well as 5-year service
warranty on Walton TV.
The local brand is
delivering swift post sales
services through 73 service
centers across the country
under the ISO standard
service
system.
management
Md sirajul Hoque, Deputy Managing Director of social Islami bank Limited (sIbL) and Anjon Chandra
Paul, Deputy Commissioner of Laxmipur, distributing agricultural loan cheques at 4 percent interest
rate among soybean cultivators of Komolnagar recently.
Photo: Courtesy
EU sees growth
steady at 1.2pc
but warns of
coronavirus
The European
Commission on Thursday
maintained its eurozone
growth forecast at 1.2
percent for 2020 and 2021,
but warned Brexit and the
new coronavirus outbreak
could yet hit the economy,
reports BSS.
For the broader EU,
including countries outside
the single currency, it
forecast growth of 1.4
percent this year, down
from the previous
prediction of 1.5.
"The outbreak of the
'2019-nCoV' coronavirus,
with its implications for
public health, economic
activity and trade,
especially in China, is a
new downside risk," the
Commission said.
"The baseline
assumption is that the
outbreak peaks in the first
quarter, with relatively
limited global spillovers.
The longer it lasts,
however, the higher the
likelihood of knock-on
effects."
The commission said the
departure of the EU's
second biggest economy
was also a worry. The UK
will leave the single market
at the end of the year after
an 11-month post-Brexit
transition.
Negotiations are due to
start soon on Britain's
future trading relationship,
but for now the result is not
known.
"Given that the future
relations between the EU
and the UK are not yet
clear, projections for 2021
are based on a purely
technical assumption of
status quo in terms of their
trading relations," the
commission said.
"This is for forecasting
purposes only and reflects
no anticipation or
prediction with regard to
the outcome of the
negotiations between the
EU and the UK on their
future relationship."
Dubai's property giant Emaar
reports slight profit increase
Dubai-based construction giant Emaar
Properties reported on Wednesday a slight
increase in its 2019 net profits, despite
falling real estate prices, reports BSS.
The one percent increase, although
minimal, comes amid falling prices in
Dubai's key real estate market, where
companies - including leading private
developer Damac Properties - have been
struggling to make a profit.
Emaar posted a net profit of $1.69 billion
for 2019, up one percent on the previous
year, it said in a statement.
However, the company recorded a
revenue of $6.69 billion last year, about a
four percent decrease from 2018.
Emaar, which developed the world's
tallest building, Burj Khalifa, and is the
largest listed firm on the Dubai Financial
Market, is also involved in the
entertainment, hotel and mall businesses.
"Emaar's performance in 2019 was
resilient, maintaining growth within a
challenging market," Emaar chairman
General Motors says it's pulling out of
Australia, New Zealand and Thailand as part of
a strategy to exit markets that don't produce
adequate returns on investments, reports
UNB.
The company said in a statement Sunday
that it will wind down sales, engineering and
design operations for its historic Holden brand
in Australia and New Zealand in 2021.
It also plans to sell its Rayong factory in
Thailand to China's Great Wall Motors and
withdraw the Chevrolet brand from Thailand
by the end of this year.
GM has 828 employees in Australia and New
Zealand and another 1,500 in Thailand, the
company said.
CEO Mary Barra says the company wants to
focus on markets where it can drive strong
returns. She says GM will support its
employees and customers in the transition.
The company said it will scale back
operations in all three countries to selling niche
Mohamed Alabbar said in the statement.
Dubai is known for its beachfront
skyscrapers and man-made islands, but it
has been stuck in a five-year property
downturn, with analysts saying there will be
no relief in the near term.
Damac Properties announced on Tuesday
its first annual loss in a decade.
The company reported a loss of $10
million for 2019 compared with a net profit
of $313 million in the previous year, as
revenues dropped by 28.2 percent to $1.2
billion, a statement said.
The government in 2018 introduced a raft
of rescue measures, including easy visa
terms for expatriate buyers and permanent
residency permits for big investors. In
September, a top-level committee was
established to rebalance the market.
Real estate prices in Dubai have been on
the decline since 2014 due to oversupply by
builders, who are anticipating a pick up in
sales ahead of the international trade fair
Expo 2020.
GM plans to pull out of
Australia, New Zealand
and Thailand
specialty vehicles. It also will make the same
move in Japan, Russia and Europe, where "we
don't have significant scale."
"We are pursuing a niche presence by selling
profitable high-end imported vehicles
supported by a lean GM structure,"
International Operations Senior Vice President
Julian Blissett said in the statement.
GM said it will honor all warranties in the
markets, and it will continue to provide service
and parts. Local operations also will handle
recalls and any safety-related issues, the
company said.
The Detroit automaker expects to take $1.1
billion worth of cash and noncash charges this
year as it cuts operations in the three countries.
GM has a long history in Australia with the
Holden brand, where cars were designed and
sold in the U.S. and other markets. The 2008
and 2009 Pontiac G8 muscle car, for instance,
was designed as a Holden Commodore and
built in Australia.