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Dhaka stocks closed downbeat on Monday for the second day in the week as investors sold off their holdings unnerved with the recent downtrend at the market, said market operators.
   The general index of the Dhaka Stock Exchange lost 29.74 points or 0.98 per cent to close at 2990.56 while its blue chips index, DSE20, shed 41.81 points or 1.61 per cent to finish at 2556.39.
   A merchant bank official said bearish market trend in recent weeks drove the investors to take cautious move. Mutual funds suffered further losses over media reports that the Securities and Exchange Commission was unlikely to rescind its decision on closed-end mutual funds to bar them to increase their sizes through issuing bonus or right shares, he said. There was a speculation at the market that the regulatory body might rescind its decision on the issue, he added.
   A group of retail investors on Sunday formed a human chain in front of the DSE building in protest against the SEC decision baring closed-end mutual funds to increase their sizes. Earlier on June 29, a group of retail investors staged a half-an-hour demonstration in front of the DSE building being upset with the fall in share prices following the SEC decision on closed-end mutual funds. In the previous day, a group of retail investors at a meeting held in the Dhaka city also protested at the SEC’s latest decision on the closed-end mutual funds.
   The share prices of the mutual funds suffered heavy losses last week due to the SEC decision and retail investors were worst losers as they bought shares at higher prices, the demonstrating investors said.
   On June 26, the SEC at a meeting decided in principle to amend its mutual fund rules to bar closed-end mutual funds from increasing their size.
   Dhaka stocks ended last week downbeat as investors remained unnerved due to the SEC decision on closed-end mutual funds. Market lost steams also in previous two weeks due to selling pressure from investors frustrated with the DSE’s market cooling measures.
   Of the total 229 issues traded at the DSE, 75 posted gains, 145 declined and nine remained unchanged.
   Turnover at the DSE decreased to Tk 255.04 crore from the Sunday’s Tk 312.8 crore.
   ACI topped the turnover leaders with a total transaction of Tk 15.18 crore.
   Square Pharmaceuticals, LankaBangla Finance, Beximco Pharmaceuticals, Aims 1st Mutual Fund, Apex Adelchi Footwear, Fareast Life Insurance, Keya Cosmetics, BRAC Bank and Beximco were the top 10 turnover leaders.
   Normal trading of the shares of the Titas Gas Transmission and Distribution Company Ltd resumed on Monday. A total of 55,650 shares worth Tk 2.39 crore of the state-owned enterprise were traded at the DSE.
   The trading of the shares of Titas Gas remains closed on Sunday to allow the market to distribute shares that were traded since its debut on July 2.

The Bangladesh Bank has paid $591 million to the Asian Clearing Union to settle its transactions with other member countries.
   Bangladesh makes payments every two months to settle trade balances with Bhutan, India, Iran, Myanmar, Nepal, Pakistan and Sri Lanka, said a BB official.
   The total transactions in May, channelled through the ACU, amounted to $1,683.10 million, showing a decrease of 5.87 per cent from April 2008, according to the ACU’s website.
   However, in comparison with the corresponding figure of the previous year, there is an increase of 15.38 per cent. The credit positions of the three largest creditors — the Central Bank of the Islamic Republic of Iran, Reserve Bank of India, and State Bank of Pakistan — were $1,082.36, $528.29, and $37.07 million respectively, accounting for 64.31, 31.39, and 2.20 per cent of the total transactions.
   The debit positions of the three largest debtors — the Reserve Bank of India, Bangladesh Bank and Central Bank of Sri Lanka — were $976.54, $291.85 and $224.67 million respectively, representing 58.02, 17.34, and 13.35 per cent of the total transactions.
   The Asian Clearing Union, at a board meeting held last month, decided to introduce the euro as an alternative currency from January next year to ease import payment settlement, said Salehuddin Ahmed. The eight-member ACU is now only using the US dollar as the settlement currency.
   The new system will widen the avenue of the payment system among the members and increase regional trade and cooperation, said the governor to the press after attending the meeting.
   ‘Some members of the union are facing problems in settlement by dollars and they requested the other members to adopt the euro as the second currency for opening letters of credit,’ he said.
   Adoption of the euro as an alternative currency will benefit especially countries like Iran and Myanmar, on which the US has imposed embargo.
   It is expected that after adoption of the euro, local importers can open euro-denominated letters of credit with the banks of Myanmar and Iran, the governor hoped.

Local spinners have expressed concern as the government has recently taken the decision of easing the ways for importing yarns from India through Benapole land port, saying that it will affect the country’s spinning industry.
   Leaders of Bangladesh Textile Mills Association at a press conference, held in Dhaka on Monday, alleged that a vested quarter had influenced the government to make the decision which, they said, would disturb local spinners capable of feeding local market.
   Knitwear manufacturers repeatedly demanded procedural simplification in case of yarn import through Benapole amid its rising and unduly high prices charged by local spinners.
   Responding to the demand of export-oriented knitwear industry, customs authority allowed import of Indian yarns through Benapole land port few months back. In the past week, they also eased some regulations, including mandatory weight and testing of each yarn consignment.
   ‘Easing the regulations will encourage brining of extra quantity of Indian yarns into the country as happened earlier,’ association president Abdul Hai Sarker said.
   Leader of the primary textile manufacturing sector entrepreneurs apprehended that random import of Indian yarns would seriously affect local spinners who had increased their capacity to feed the export-oriented knitwear industry.
   He also demanded that the government should review the decision taking into account interest of the local industry.
   BTMA claims that more than 300 spinning units operating in the country produce 0.6 million tonnes of yarns per year despite having the capacity of 0.9 million tonnes.
   BTMA leaders also regretted that the Energy Regulatory Commission had asked all the industries to take mandatory licences for their captive power generating units by paying Tk 0.5 million each unit.
   As the government couldn’t provide enough electricity, industries had installed generators, Sarker said, adding that industries should get rid of unnecessary regulations and extra cost of doing business.
   ‘Due to low pressure of gas, generators and boilers in many textile units go out of order, resulting in reduction in the production significantly.’
   The leader said though the government agreed to hand over the management of the National Institute of Textile Training, Research and Design to the BTMA, it had been trapped in bureaucratic tangles.
   BTMA, however, praised the government move for imposing restriction on exporting cotton waste. But the association president demanded that inquiry committee should be formed to investigate on how the traders siphoned off tens of millions of dollars by under-invoicing on exports of waste cotton to the neighbouring country.

Mushroom cultivation is growing in the country though its consumption among the common is still limited.
   Farmers said strengthening marketing chain and high level campaign are necessary to encourage the consumption of this fully ‘halal’ vegetable among the common people.
   Although there is a good demand for mushroom at the hotels and restaurants for local and foreign dishes, the vegetable has not been included in the common people’s dish.
   Patients suffering from tumour, diabetics, high blood pressure and some glamour-aware people consume mushroom for its nutritional and medicinal value.
   Some destitute people also grow and consume mushroom because of government and NGO’s initiative.
   Sheikh Md Ruhul Amin, project director of mushroom development project under the Department of Agricultural Extension, said they were trying to increase its demand at the consumer level. ‘Now there is no problem of its production in our country. If demand increases, productions will automatically increase,’ he said.
   According to a survey of the mushroom development project, about 20 to 25 tonnes of mushroom are produced every day in the country.
   Ruhul Amin said only two years before the production range was about only 7 to 8 tonnes per day.
   The project officials said farmers produce the amount to meet the local consumption.
   They said the production is increasing day by day because of increasing demand every where.
   Nirod Chandra Sarkar, mushroom expert of the project, said according to their estimation about 50 lakh people know and consume mushroom and the number is increasing every day.
   Besides the poor, he said, mushroom is witnessing industry based production these days. Good number of people is taking training from the training centre of the project at Savar, he added.
   Mushroom cultivation in Bangladesh began in 1979 with assistance from Japanese organisation JOCDV. Later, the Japan International Cooperation Agency came up with its assistance in 1987. Mushroom cultivation slowed down in 1990 following withdrawal of JAICA’s support.
   In 2003, the government introduced a Mushroom Development Project under Agriculture Extension Department for making mushroom popular among the people.
   Researches are being conducted under the project in addition to providing training in mushroom cultivation.
   This project has activities in Dinajpur, Jessore, Barisal, Chittagong, Sylhet, Comilla, Khulna, Mymensingh, Bandarban, Rangamati, Chapainawabganj and Rangpur for motivating people to cultivate mushroom.
   Beside the development centre, many NGOs and volunteer organisations also have chosen mushroom production as a way to generate income for the poor people.
   Mushroom expert Nirod Chandra said a total of 73 verities of mushroom were found in the country and among these 7 to 8 are being produced at the mass level.
   He said Oyster, milky and button these are some common verities which are producing at the mass level to meet the local demand.
   Rejaul Hasan Jamali, a mushroom cultivator, said, ‘I took short training in mushroom cultivation from the spawn pouch and started to grow it at my home on a small scale.’
   Because of its high business potential, Jamali wants to cultivate mushroom on a commercial basis in future.
   ‘I am trying to contact with buyers in foreign countries and I have plans to grow it according to buyer’s demand and technical support, so that I can sell my production directly,’ he added.
   Mushroom production and its demand have increased but its formal marketing has not yet started.
   Hotels, restaurants and some kitchen market and chain shops like Agora, Meena Bazar, Nandan in Dhaka are selling mushroom.
   The mushroom producers have built an organisation named ‘mushroom hut’ under the banner of Mushroom Foundation Co-operative Society.
   Growers said mushroom seed or spawn is produced through tissue culture, which is bought by farmers at a cost of Tk 6-10.
   To get the harvest from the seed, it has to be kept in a wet place and needs to be sprayed with water three times a day. Mushroom can be collected for over two months from each span, which will weigh about 200 grams. The farmers begin to harvest within next 8-10 days from the day of cultivation.
   A buyer can buy mushroom in three forms — fresh, dry and powder. Generally, mushroom remains fresh for a day. But refrigerated mushroom stays fresh for two three days. A kilogram of fresh mushroom sells at Tk 100-250, dry one at Tk 1000-1200 while the powder sells at Tk 1200-1500.
   According to the sources there are 350 labs in the country where spawns are made and sold to the cultivators.

The country’s export earnings in July–May of the last fiscal year amounted to $12.64 billion, with a growth of 15.33 per cent over that in the same period of the previous fiscal.
   Readymade garment, the major export item, showed a steady growth while raw jute, agricultural products and tea also achieved encouraging growths.
   Export earning from jute goods, handicrafts, among other major products, however, declined, said the Export Promotion Bureau monthly report released on Monday.
   The export earning target for the just ended fiscal was set at $14.5 billion, projecting a 16 per cent growth.
   According to the EPB report, July–May export proceeds from readymade garments stood at $9,576 million.
   Export earnings, in the period, from knitwear grew by 21.2 per cent to $4.93 billion crossing the target by 0.6 per cent.
   Raw jute earned $157 million with 14 per cent growth, earning from ceramic products grew by 24 per cent to $35 million, textile fabrics, 69 per cent to $59 million while tea earned $14 million which is 147 per cent more than its earning in the same period a year ago.
   In July-May of FY-07 export proceeds from woven wear segment grew by 10.6 per cent, over the corresponding period, to $4.63 billion although the product segment missed its target, set for the period, by 4.4 per cent.
   A number of items also posted less-than-expected growth rates in the period. Of them, export earnings from frozen foods rose by 4 per cent to $482 million, finished leather 7 per cent to $262 million, home textile 12 per cent to $264 million and terry towel 5 per cent to $103 million.
   Jute goods, with earnings worth $293 million, handicrafts with $5 million and computer services including software with a $21 million, in the period, faced negative growths at the rates between 2 and 30 per cent.
   The EPB report shows that the overall export in May 2008 grew by 22 per cent to $1.27 billion from that in May 2007. But, the amount fell 6 per cent short of the export earning target for the month.
   In July-May, the average export volume of primary products increased by 8 per cent and manufactured goods by 15 per cent from that in the same period of the previous fiscal year.
   The average prices of primary products increased by less then 12 per cent but that of manufactured products declined slightly by 0.01 per cent, meaning that real earnings from exports were on the decline as manufactured products contribute nearly 90 per cent to exports.

The 4-day Bangladesh Single Country Trade Fair in Malaysia has fetched huge spot order.
   The participating service and manufacturing companies have achieved order worth about 10 million US dollar, according to a message received here today.
   Among the participating commercial banks, National Bank Limited has accorded permission from the Central Bank of Malaysia to open an exchange house. Initially NBL will open four braches at different places of Malaysia.
   Pubali Bank has finalised remittance agreement with three leading exchange houses in Kuala Lumpur. NCC Bank managing director Nurul Amin said that they have also finalised remittance deal with three renowned exchange companies of Malaysia. AB Bank Limited has also fixed similar agreement with several remittance companies in Malaysia.

South Korea’s central bank and finance ministry warned Monday they will take ‘strong measures’ to stabilise the foreign exchange rate of the won.
   The nation’s currency has fallen more than 10 per cent against the dollar so far this year, making imports more expensive and putting upward pressure on inflation.
   ‘We will take a close look at supply and demand and foreign exchange movements in the local currency market, and if the imbalance is deemed too excessive, we will take strong necessary measures,’ the ministry and the Bank of Korea said in a joint statement.
   South Korea, Asia’s fourth largest economy, imports virtually all its oil needs and has been hit especially hard by soaring crude prices. Annual inflation rose to 5.5 per cent in June, close to a 10-year high.
   On Sunday the government announced a series of energy-saving measures, including banning official vehicles from the road every other day.
   Choi Jong-Ku, head of the ministry’s international finance bureau, acknowledged the government has used foreign exchange reserves to stabilise the won.
   ‘We will continue to use our reserves if necessary,’ he said.
   The reserves, the world’s sixth largest, shrank to 258.1 billion dollars at the end of June from 262.2 billion dollars at the end of last year.
   ‘The most important thing at this moment is price stability,’ Choi said, dismissing concern the reserves would be excessively depleted.
   Ahn Byung-Chan, a central bank director-general, said the portion of foreign exchange reserves invested overseas could be ‘easily liquidated’ if necessary.
   Analysts say government intervention may not dampen the strong appetite for the dollar.
   ‘Our government is also trying to curb inflation but there isn’t much for them to do given an external factor like oil prices,’ SK Securities analyst Won Jong-Hyucke said.
   He said foreign investors were unloading investments in emerging markets, betting growing inflation risks will further hurt sentiment.
   Foreign exchange authorities have sold a sizeable quantity of dollars to prop up the won in recent weeks but the impact has been short-lived.
   The won rose to 1,036.50 against the dollar in early trade Monday but finished at 1,042.90 won.

The Asian Development Bank, one of the country’s biggest sources of foreign loans, is considering to lend $924 million to the Philippines for 2009 and 2010 to fund projects that will help combat the effects of rising food prices and boost the overall economy.
   The ADB said its country assistance program for the Philippines in the next two years should focus on addressing pressing issues, including threats of worsening poverty.
   The bank said the sharp rise in prices of food and other commodities was making poverty reduction difficult.
   ‘We are currently working with indicative planning figures of $624 million and $300 million for 2009 and 2010, respectively, and are prepared to make appropriate use of ADB’s modalities ranging from technical assistance and sector loans, to program loans and multi-tranche financing facilities,’ ADB said in a letter to the National Economic and Development Authority.
   The multilateral lending agency said in the letter that the Philippines has maintained a good credit standing as far as meeting its obligations with the ADB was concerned and that it was willing to further support the country’s development efforts.
   For 2008, the ADB earlier approved a $250-million loan for the Development Policy Support Program II, wherein the borrowed money provided budgetary support to the national government. The loan was not meant for a specific project, but gave the government flexibility in deciding what expenditure requirement to fund.
   Another $300-million loan was approved by the ADB for this year to fund the Governance and Justice Reform Program, which will include skills training for employees of government agencies in the judiciary and programs enhancing the agencies’ technological capacity.
   For 2008, the ADB said its loans were aimed at developing the justice system and governance in the Philippines and meeting the country’s needs for additional fiscal muscle. For the next two years, the bank said it was considering providing loans that will fund poverty-reduction programs.
   But the bank said it was considering amending its lending strategy for the Philippines. While the ADB had an old practice of deciding what projects and programs to be covered by its loans, the bank now wants the Philippine government to have a bigger role in the coverage of the loans.
   The move is aimed at making sure that future loans from the ADB will fund projects and programs consistent with the government’s medium-term development program.

Foreigners still see good valuations in Malaysian properties and other assets despite the current political uncertainties.
   When the ruling coalition Barisan National lost its two-thirds majority in Parliament in March, there was initial fear that foreign investors would reduce their investments in the country.
   But this has been proven wrong given the high level of foreign interest and investments since the election results.
   In fact, many sectors are benefiting from foreign investments and the number has grown steadily over the years.
   According to the Malaysian Industrial Development Authority, the country’s foreign direct investment inflows this year is expected to surpass last year’s 33.4 billion ringgit ($10.22b).
   Outgoing Mida director-general R Karunakaran was quoted as saying that the first four months of 2008 saw 23.9 billion ringgit ($7.31b) investments approved, of which 16.6 billion ringgit ($5.08b) was FDIs.
   He said the amount (23.9b ringgit) did not include newly announced projects by Ibiden Co Ltd, Q-Cell, SunPower Corp and Honeywell International Inc.
   The combined investment by the three foreign companies is expected to hit 9 billion ringgit ($2.75b), bringing total FDIs to over 20 billion ringgit ($6.12b).
   Sectors benefiting from foreign investment
   Foreign investments are flowing into a host of sectors from high-end manufacturing, property development, information technology, banking and biotechnology, among others.
   Japanese printed circuit-board maker Ibiden said it would invest 1.2 billion ringgit in the first phase of its printed wiring board plant at Penang Science Park.
   Germany’s Q-Cells AG, the world’s largest independent solar cell manufacturer had picked Malaysia to be its first manufacturing plant in Asia for photovoltaic products with an investment of over RM1bil for Phase 1.
   US-based company SunPower plans to build an 2.2 billion ringgit solar cell fabrication plant in Malaysia in two phases, with the first phase comprising 14 solar cell production lines.
   While another US-based company Honeywell International Corp, via its business group Honeywell Aerospace plans to invest 115.2 million ringgit in a 220,000 sq ft avionics manufacturing plant in Penang.
   Malacca chief minister Ali Rustam said the state had secured foreign investments worth 6.5 billion ringgit this year, which is about half the amount received over the last seven years.
   Ali said Malacca had attracted foreign biotechnology and manufacturing companies.
   ‘From 2000 to 2007, we attracted 15.6 billion ringgit of foreign direct investment,’ he said, adding that Malacca’s yearly foreign investment target was 3 billion ringgit.
   Vivo Bio Malaysia Sdn Bhd, a subsidiary of India’s Vivo Bio Tech Ltd, plans to invest 450 million ringgit by year-end to build a research and manufacturing plant in Malacca for treatment of diseases.
   Meanwhile, the Prime Minister’s Department senator Amirsham A Aziz said current total investment projects recorded in Iskandar Malaysia was about 33 billion ringgit, representing 70 per cent of total targeted investment of 47 billion ringgit.
   He said so far, the total number of investors for Iskandar was 160, Sabah Development Corridor (34) and Sarawak Corridor of Renewable Energy (31) respectively.
   The number of investors for the Northern Corridor Economic Region and East Coast Economic Region is yet unclear.
   Malaysia also attracted a fair number of foreign investors from the Gulf Cooperation Council countries comprising Saudi Arabia, Bahrain, Qatar, Kuwait, Oman and the United Arab Emirates.
   Currently, six foreign companies from UAE, Kuwait, Saudi Arabia and Lebanon have invested in Iskandar Malaysia, while some had ventured into Islamic banking and properties.
   They are Kuwait Finance House, Aldar Properties PJSC, Mubadala Development Company, Millennium Development Company, Damac and Limitless Dubai.
   Kuwait Finance House Bhd, a wholly-owned subsidiary of Kuwait Finance House, GCC’s second-largest Islamic lender by market value, plans to expand its capital base here by another $100 million (325.48m ringgit) this year.
   KFH Malaysia managing director Datuk K Salman Younis said the bank would still commit to invest in Malaysia despite the tougher operating conditions and political uncertainty.
   Other GCC companies such as Middle East lender Al Rajhi Bank Malaysia is waiting for its international Islamic banking licence, while Abu Dhabi Commercial Bank recently acquired a 25 per cent stake in RHB Capital Bhd.
   The acquisition was to enable ADCB to use RHB Cap as a springboard into Asean countries such as Thailand, Brunei and Vietnam for its Islamic banking operations, while RHB Cap could capture ADCB’s network for sukuk issuance in Abu Dhabi.
   It is interesting to note that in a recently released Global Competitiveness Report 2007-2008, Malaysia’s competitiveness had moved up to 19th position from 23rd in 2007.
   Also, Kearney’s 2007 Global Services Location Index indicated that Malaysia was among the top three best destinations in the world for outsourcing activities.
   Judging by some of the foreign investments, Malaysia remained a favoured destination to do business but of course, the number can be improved and the sky is the limit.

China is the world’s biggest producer and consumer of steel, fuelled by its export-driven manufacturing sector and booming construction and automobile industries.
   Despite the size of the industry itself, many of China’s steel companies are dirty and inefficient, and lack the size to achieve global competitiveness or the market power to negotiate from strength with the leading iron-ore suppliers.
   That may be set to change as a result of the Chinese government’s ongoing efforts to close inefficient and polluting steel producers through tougher environmental standards and curbs on steel exports to conserve energy, and government-led moves to force consolidation in the industry.
   Recently, two state-owned companies - Iron & Steel Group and Handan Iron & Steel Group - merged to form Hebei Iron and Steel Group, China’s largest and the world’s fifth-largest steel producer.
   The announcement of the government-orchestrated deal came shortly after news that a grouping of steel producers, led by Baosteel Group (now the second-largest steel company in China), had signed a deal with Rio Tinto to supply ore at a record 96.5 per cent price increase for this year. This followed an earlier deal in February with Brazil’s Companhia Vale do Rio Doce SA that increased prices of Brazilian ore by up to 65 per cent.
   Yet despite the massive price increases, the system of signing one-year term contracts has actually protected China’s steel producers from paying higher spot-market prices as global demand for iron ore has soared over the last six years.
   The future of this system of term contracts is now under pressure, as the leading iron ore suppliers, Rio Tinto and BHP Billiton and Companhia Vale do Rio Doce, are now trying to move away from term prices to a market-driven supply index that reflects spot demand and prices, and the eventual creation of iron ore swaps markets and a futures market.
   This is opposed by the China Iron and Steel Association, which sees the current contract system as being mutually beneficial to suppliers and producers. The Chinese government will be hoping that consolidation in the industry will lead to bigger producers that can strike potentially better deals with the three global iron-ore suppliers, which control 70 per cent of seaborne iron-ore supply between them.
   The stakes are high - the rising cost of iron ore will not only increase the price of China’s manufactured exports and add inflationary pressures to its construction boom, but will increase prices paid by consumers around the world, including those here in Thailand, for such necessities as housing and cars - adding further inflationary pressures to the global economy.

China’s tourism market has become a magnet for international investment, raising about 150 billion yuan ($21.8b) annually over the past few years, a senior tourist official said here on Monday.
    ‘Some high-end international tourism products have made their way into the Chinese market, such as port calls by luxury liners and booming business for limousine and yacht rentals,’ said Wang Zhifa, National Tourist Administration deputy director.
   Despite this, Wang, who was here to attend an industry forum in the capital of southwest Yunnan Province, said the country still faced great hurdles even though it was poised to become the world’s largest tourist destination by 2015.
   He said the industry still lacked large companies to take a leadership position in comprehensive tourist development. He added public service in tourism, from tourist consultation to toilets in scenic spots, had been substantially improved.
   Wang said the NTA had given project approval to five-star hotels on a monthly basis, and more project applications were on the waiting list. Tianjin, for example, had a total of 45 five-star hotel projects planned between now and 2010. This would draw investment of up to 83.8 billion yuan.
   Last year, the country welcomed 54.7 million inbound overnight tourists, the fourth most in the world.

Taiwan’s consumer price index in June rose 4.97 per cent from a year earlier, the highest growth in eight months on rising food and energy prices, the government said Monday.
   The June CPI toppled May’s 3.71 per cent, the Directorate General of Budget, Accounting and Statistics said, adding it was the highest inflation rate since October’s 5.33 per cent.
   In June, food prices rose 11.89 per cent and public transport fares gained 6.4 per cent from a year earlier, the agency said.
   On a seasonally adjusted basis, the June CPI rose 1.24 per cent from May, it said.
   In June, the core inflation index, which excludes food and energy prices, added 3.70 per cent from a year earlier, while the wholesale price index rose 9.86 per cent year-on-year, the government said.
   In the six months to June, the CPI rose 3.89 per cent from a year earlier, while the core price index was up 3.07 per cent and the WPI was up 8.35 per cent.

The Stock Exchange of Thailand signed a deal with the Lao central bank Monday to provide training to help the communist country open a stock market, officials said.
   ‘SET has a lot of experience and information, and we are pleased to share that with Lao authorities to set up and develop Lao’s Stock Market,’ SET chairman Pakorn Malakul Na Ayudhya told reporters.
   The SET will provide personnel training as well as legal and regulatory advice for the Laos market.
   Laos, one of Asia’s poorest countries, plans to open its bourse later this year, said the country’s central bank governor Phouphet Khamphounvong.
   Three companies are expected to trade on the Laos bourse, including the state-owned power firm, a telecom, and the Bank of Lao.
   Laos last year signed a deal with South Korea’s stock exchange to develop an electronic quotation system by 2010.
   That deal allows the Korean market to own 51 per cent of the Lao market, a stake worth around 10 million dollars, Phouphet said.

From air conditioning using snow to green vehicles and humanoid robots — this year’s Group of Eight summit is getting the full flavour of high-tech Japan and its efforts to save the planet.
   Japan sees the three-day meeting, which kicked off in this northern mountain resort on Monday, as a golden opportunity to showcase its state-of-the-art technology and efforts to curb global warming.
   A railway company was demonstrating an environmentally friendly vehicle capable of moving both on roads and railways, while Japanese automakers were offering rides in their latest hybrid and fuel-cell vehicles.
   Police officers were also zipping around standing on two-wheeled scooters.
   At the main media centre near the summit venue in Toyako, the government is showing off Japan’s latest green products, such as a zero-emissions house, to thousands of visiting journalists from all over the world.
   Visitors can also visualise global warming with five bulky globes in colours ranging from green to red that indicates how warm the Earth would be in 2100.
   ‘I hope this showcase will help bring us together in addressing global environmental issues, working towards the realisation of a low-carbon society,’ prime minister Yasuo Fukuda said.
   Fukuda was welcomed by Honda Motor’s humanoid robot Asimo as he visited the showcase ahead of the summit, which draws leaders from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
   ‘Welcome to the Environmental Showcase. Please follow me,’ the robot told Fukuda as it plodded along, followed by the prime minister.
   The three-billion-yen ($28m) media centre also has an ecologically friendly design, using snow preserved under the floor since winter for natural air conditioning during the summer summit.
   The building’s walls are covered with plants, wooden boards and solar panels, with artificial mist being produced outside to cool the summer heat.
   ‘Energy saving technology as well as ideas of making use of nature is our invisible treasures,’ said Ryosuke Kuwana, a foreign ministry official in charge of the showcase.
   ‘The G8 is a good opportunity for Japan to show them up to the world and we hope the world will use them as part of efforts to fight global warming,’ he said.
   Resource-scarce Japan, which soared to the rank of the world’s second largest economy through rapid industrialisation, made a push into energy-saving technology in the 1970s in the wake of the oil crises.
   Japan has since launched an energy-saving campaign, resulting in world-beating products such as hybrid cars running on both gasoline and electricity.
   Japan’s leadership in climate change was tested in 1997 when it hosted the UN conference that gave birth to the Kyoto Protocol calling on developed nations to reduce greenhouse gas emissions.
   Ahead of this week’s summit, Japan unveiled a plan to cut greenhouse gas emissions by 60 to 80 per cent by 2050 from current levels, but did not make any pledge for the medium term.
   Japan is also far behind in meeting its obligations under the Kyoto Protocol as its economy gradually recovers from recession in the 1990s. And, when the G8 summit is over and the hordes of journalists and world leaders have gone home, the costly showcase will be dismantled.

Cutting back on the amount of food that Britons buy but throw away uneaten could help cut rising global prices and reduce greenhouse gas
   emissions, a government-commissioned report said
   Monday.
   The Cabinet Office study said British consumers spend an average 420 pounds ($826) per household each year on food that goes into the bin — the equivalent to 4.1 million tonnes or 10 billion pounds.
   ‘Eliminating household food waste would deliver major benefits, including a reduction in greenhouse gas emissions equivalent to taking one in five cars off UK roads,’ it added.
   Researchers estimated that 60 per cent of the food thrown away could generate enough renewable energy to power all the homes in the Scottish cities of Glasgow and Edinburgh, where more than one million people live, it said.
   Helping to reduce food costs would also aid low-income households, the poorest 10 per cent of which spent 15 per cent of their income on food in 2005-6, compared to about nine per cent by the average British household.
   Internationally, a world response to tackling high food prices could ease the pressure on the developing world, where many people can spend as much as 50 to 80 per cent of their income on food.
   The advice comes as
   prime minister Gordon Brown attends the G8 summit in
   Japan, where spiralling food prices and the downturn in the world economy are high on the agenda.
   Brown commissioned the study of food policy last September. Separate research on the impact of biofuels on food production and supply and prices is to be published later Monday.
   Other recommendations included increasing world food output, particularly of cereals and meat, plus cutting waste in the developing world, where up to 40 per cent of food harvested can be lost due to storage and distribution problems.
   It also called for cuts in emissions from agriculture through changes in fertiliser use and animal feed, and initiatives to encourage British consumers to eat healthier, more environmentally-sustainable food.
   About 18 per cent of Britain’s greenhouse gas emissions are related to food consumption and production, particularly through packaging, the report said.
   In a statement, Brown said Britain could not act alone, and pushed for an international effort to tackle higher prices and helping developing countries ‘reach their potential’ in food production.

General Motors Corp is planning to cut thousands of white-collar jobs and is considering whether it should sell or stop production of more of its brands, The Wall Street Journal said, citing people familiar with the matter.
   Both moves are part of a broader re-evaluation of the company’s strategy and of its ability to meet an internal projection of returning to profitability in 2010, the people told the paper.
   The job cuts are likely to be approved when GM’s board of directors meets in early August, the people said. The reductions would be in addition to earlier announced cuts.
   Management may also present the board with options for raising additional cash, they told the paper.
   The board may also hear management’s latest thoughts on whether GM should trim the number of brands it offers in the United States, the people told the paper.
   All but the Cadillac and Chevrolet brands, which GM considers core to its business, are undergoing close scrutiny, some other people told the paper.
   In the past few years, as GM has run up massive losses, some board members and some executives have on occasion raised questions about its plethora of brands, only to be rebuffed by Chief Executive Rick Wagoner, the paper said, citing people familiar with the matter.
   GM has put its Hummer brand up for sale to prospective buyers thought to include Mahindra & Mahindra, but the SUV brand is expected to fetch far less than $1 billion in any sale.
   The company, hit by rising oil and raw material prices, the credit crunch and the housing downturn, will need to raise as much as $15 billion in cash to shore up liquidity and bankruptcy is ‘not impossible’ if the U.S. auto market continues to slump, Merrill Lynch had said last week.
   US auto sales plunged in June to a 15-year low
   Although GM clung on to its top spot in the American market, some analysts have raised concerns over the financial state of the firm, whose shares fell to a 54-year low earlier this month.
   GM could not be immediately reached for comment.

Germany plans soon to adopt measures aimed at relieving a shortage of qualified workers in certain sectors by attracting foreign candidates, an official spokesman said Monday.
   Although the ministry spokesman did not provide details, the confirmation came after a newspaper said Saturday that authorities were mulling an ‘index of worker needs.’
   The report said officials could poll 7,000 companies each month to determine what kinds of skills were needed in the coming six months and adapt the granting of work vias accordingly.
   A spokesman for the Labour Ministry ‘neither denied, nor confirmed’ the report but acknowledged that the search for a ‘control system to identify needs’ was ‘the reflective framework within which we are proceeding.’
   Government spokesman Thomas Steg said the subject had been discussed intensively, in particular between the social democrat labour minister and his conservative counterpart at the interior ministry.
   A proposition was expected to be presented to the full cabinet on either July 16 or 23, Steg added.
   Certain sectors of the biggest European economy, notably high-tech firms, are handicapped by a serious shortage of engineers, programmers and qualified technicians.
   Measures taken by the government to date have been judged too restrictive by the business sector and have not noticeably improved the situation.

Toyota Motor Corp plans to install solar panels on some Prius hybrids in its next remodeling, responding to growing demand for ‘green’ cars amid record-high oil prices, a source briefed on the matter said on Monday.
   The panels, supplied by Kyocera Corp would be able to power part of the air-conditioning on high-end versions of the gasoline-electric Prius, the source said.
   ‘It’s more of a symbolic gesture,’ said the source, who asked not to be identified. ‘It’s very difficult to power much more than that with solar energy.’
   Toyota is due to launch the third-generation Prius next year.
   Big automakers are racing to come up with alternative solutions to using fossil fuels to appear ecologically conscious and to lure consumers looking to save money at the pump.
   But solar power is not seen as a viable solution to power cars. Solar panels are expensive due to rising silicon prices and storing energy is difficult, the source said. It was unknown how much the solar panels on the new Prius cars would cost, or how many solar-mounted versions Toyota would build.
   A Toyota spokesman declined to comment, saying the company does not talk about future product plans.
   Mazda Motor Corp briefly offered a solar panel option on two car models, the Eunos 800 and Sentia, in the early 1990s to ventilate the sedans while parked on hot summer days. The expensive option was unpopular and discontinued after a few years.
   Kentaro Endo, a director at Japan’s Ministry of Economy, Trade and Industry who specializes in renewable energy, said the application of solar energy was severely limited in vehicles.
   ‘Even if you laid solar panels out on the entire roof of a house, you only generate enough energy to run two hair dryers,’ he said.
   ‘It’s an interesting idea, but it would be very difficult to power a whole car, even with technological advances.’
   Toyota has struggled to keep up with demand for the Prius as soaring gasoline prices put consumers off of gas-guzzling sport utility vehicles and pickup trucks. Rival Honda Motor Co will also step up its hybrid push with a new, low-cost model early next year, followed by several other gasoline-electric cars.
   Automakers have teamed up with battery makers to develop and produce lithium-ion batteries to store more energy in smaller packages to extend cruising distances.
   Toyota has partnered with Matsushita Electric Industrial Co while Nissan Motor Co has a joint venture with the NEC Corp group. Mitsubishi Motors Corp is working with GS Yuasa Corp.
   The Prius, the world’s first mass-produced gasoline-electric hybrid car, first went on sale in Japan in late 1997 and in other markets in 2000. Cumulative sales have topped 1 million units worldwide.
   Toyota has a goal of selling at least 1 million hybrid cars a year in the early part of the next decade by offering the fuel-saving system on more vehicles.
   Toyota shares ended 1.4 per cent higher at 4,990 yen as the dollar rose against the yen. Kyocera lost 0.1 per cent to 9,740 yen, while the Nikkei average gained 0.9 per cent.

The total assets of overseas-funded banks in the Chinese mainland stood at some 193 billion dollars by the end of March, up 55 per cent year on year, the China Banking Association said Sunday.
   The assets of overseas-funded banks accounted for 2.44 per cent of the total assets of the banks in China, it said.
   Yang Zaiping, CBA’s vice chairman, told a seminar over the reform of the country’s banking sector that the figure remains small despite a fast expansion of businesses by overseas-funded banks over the past years.
   According to the association, the balance of loans among overseas-funded banks stood at 105.8 billion U.S. dollars by the end of March, an increase of 61 per cent over the same period of last year.
   Their total deposits were 68.6 billion U.S. dollars, up 84 per cent.
   By the end of March, Chinese branches operated by 57 overseas-funded banks, as well as 25 overseas-funded corporate banks, were approved to provide Renminbi services. Fifty overseas-funded banks were allowed to engage in transaction of financial derivatives.
   Since foreign institutional investors were first allowed to invest in Chinese banks starting in 1996, 33 overseas banks have acquired stakes in 25 Chinese banks with a total investment of 21.3 billion U.S. dollars by the end of last year, according to the CBA.

The Citi Foundation, the philanthropic arm of Citigroup, for the fourth consecutive time on Monday launched the Citi Microentrepreneurship Awards programme in Bangladesh to recognise and honor leadership, entrepreneurial skills and best practices of individual microentrepreneurs in Bangladesh.
   The programme was announced at a press conference at the National Press Club attended by a high-level advisory council chaired by Dr Wahiduddin Mahmud, where all important partners and stakeholders were present, said a press release.
   This year the awards will be presented in four categories - ‘Best Innovative Micro Business of the Year’, ‘Best Woman Microentrepreneur of the Year’, ‘Best Microentrepreneur of the Year’ and ‘Best Microfinance Institution (MFI) of the Year’ — at the end of the selection process.

China Oilfield Services, a subsidiary of energy giant China National Offshore Oil Corporation, said Monday it had offered to buy all the shares in Norwegian oil firm Awilco Offshore.
   If accepted by shareholders the deal would be worth 19.5 billion Hong Kong dollars (US$2.5b), CNOOC said in a statement to the Hong Kong Stock Exchange.
   ‘The business currently operated by Awilco has high growth potential, the pursuit of which is in line with the growth and globalisation strategy of China Oilfield,’ the mainland firm said in the statement.
   The offer represents an 18.7 per cent premium over the closing price of Awilco shares when they traded on the Norwegian stock exchange on Friday, the statement said. Awilco’s major shareholders, who own around 40 per cent of the company, had agreed to the sale and the board was recommending that shareholders accept it, the statement said.
   The deal is the latest attempt by China to feed its rapidly increasing demand for energy using overseas acquisitions and partnerships. It has extensive oil interests in Africa, most notably in Sudan and Angola.
   CNOOC, China’s third largest oil company, has been linked to potential stakes in both Canadian-based Talisman Energy and Australian oil and gas company Santos, reports earlier this year said.
   China Oilfield has been looking to take stakes in overseas rivals to boost its operating capacity. It previously failed in an attempt to buy a stake in Russia’s STU.
   Awilco, based in Oslo, operates five jack-up rigs and two accommodation units in Norway, Vietnam, Saudi Arabia and the Mediterranean, giving China Oilfield access to several international markets, according to the statement.
   Oil firms have shied away from acquisitions in recent months, waiting for a correction in skyhigh oil prices.

The dollar rose against major currencies Monday after US president George W Bush, speaking over the week end ahead of a Group of Eight summit in Japan, said his administration backed a ‘strong’ dollar.
   The European single currency fell to 1.5648 dollars in early London trade from 1.5700 dollars late on Friday.
   Against the yen, the dollar gained to 107.54 yen from 106.73. The Group of Eight rich nations opened a summit Monday aimed at battling skyrocketing oil and food prices, as pressure mounted on them to live up to their pledges to help Africa.
   US president George W Bush and other world leaders gathered in the secluded Japanese spa resort of Toyako for a three-day session, with seven African leaders joining them on the first day to take up the plight of the continent.
   ‘Invariably, with such a quiet start to the week (in terms of economic data), the G8 leaders summit will be watched,’ said Calyon economist Daragh Maher.
   ‘Inflation is likely to be the dominant economic theme, but it is hard to see what kind of concrete solutions can be provided given the still elevated level of energy prices.
   ‘There will of course be opportunity for the US administration to reassert its support for a strong dollar, as President Bush has done over the weekend,’ added Maher.
   Bush on Sunday reaffirmed that the United States ‘believes in a strong dollar,’ saying the US economy’s fundamental strength would ultimately support the flagging currency.
   Osamu Takashima, chief currency analyst at Bank of Tokyo-Mitsubishi UFJ, said even though Bush was only reflecting the official US position, ‘it bears importance that he repeated the policy on a summit occasion.’
   ‘We believe nothing surprising will come out from the summit.
   ‘We know it would be historical, but it is unlikely that the leaders would say (in a summit statement) they are united to prevent a weak dollar. Nonetheless we have to be careful,’ Takashima said.
   There is also caution in the market as senior monetary officials are to speak later this week, including congressional testimony by Federal Reserve chairman Ben Bernanke on Thursday, he added.
   In morning London trading on Monday, the euro changed hands at 1.5648 dollars against 1.5700 late on Friday, at 168.28 yen (167.62), 0.7938 pounds (0.7924) and 1.6137 Swiss francs (1.6083). The dollar stood at 107.54 yen (106.73) and 1.0310 Swiss francs (1.0239).
   The pound was at 1.9715 dollars (1.9827).
   On the London Bullion Market, the price of gold dropped to 922.23 dollars per ounce from 931.25 dollars late on Friday.

Oil prices fell on Monday after a long US holiday weekend as traders eyed the stronger dollar and easing tensions over key crude producer Iran.
   Brent North Sea oil for August delivery slid 1.50 dollars to 142.92 dollars a barrel in electronic deals. However it remained close to the record high 146.69 that was struck last Thursday.
   New York’s main oil contract, light sweet crude for August delivery, dived 2.82 dollars to 142.47 dollars on Monday. The contract had punched a life-time high of 145.85 on July 3.
   American investors were set to play catch-up with their counterparts in London on Monday, dealers said. US floor trading was shut last Friday but electronic trade continued amid the Independence Day holiday.
   ‘Oil futures were lower, with New York catching up with Brent as traders in America were coming back to work after a long holiday weekend,’ said Sucden analyst Andrey Kryuchenkov.
   ‘The greenback was stronger (on Monday), extending gains from the end of last week and helping to put more pressure on oil prices,’ he added.
   The strengthening US currency dampens demand for dollar-priced crude which becomes more expensive for buyers using weaker currencies.
   The dollar rallied against major currencies on Monday after US President George W. Bush, speaking over the weekend ahead of a Group of Eight (G8) summit in Japan, said his administration backed a ‘strong’ dollar.
   Oil blazed a record-breaking trail last week, driven by geopolitical tensions over Iran, a weaker US dollar and tightening global supplies, traders said.
   Sky-high oil prices — which ramp up the cost of petrol, jet fuel, and domestic electricity and gas — have triggered fears about higher inflation and slower economic growth. They have also sparked protests around the world.
   The G8 rich nations — Britain, Canada, France, Germany, Italy, Japan, Russia and the United States — opened a summit Monday aimed at battling rocketing oil and food prices that threaten to derail the global economy.
   Over the weekend meanwhile, Iran offered to negotiate on its nuclear drive but without a freeze on uranium enrichment, in its first comments since responding to an international package aimed at ending the standoff.
   EU foreign policy chief Javier Solana said Monday he hoped to meet later this month with Iran’s top nuclear negotiator, after Tehran gave its response to a package of incentives to halt uranium enrichment.
   ‘Following the news that Iran may be prepared to compromise on its nuclear development programme, oil prices are a little softer,’ said analysts at the John Hall Associates energy consultancy in London.
   ‘However, the region accounts for a sizeable portion of global production so until more definite news of a compromise is forthcoming then prices will continue to attract a premium.’
   Iran, the world’s number four crude producer, is locked in a standoff with the West over its nuclear energy programme. The country claims it is for generating electricity while Western nations fear the development of nuclear weapons.

RAKUB needs Tk 400cr to expand farm lending: BB
Bangladesh Bank has requested the finance ministry to inject more funds into Rajshahi Krishi Unnayan Bank, a state-owned specialised bank for northern region, to help it expand farm lending in the coming season. Sources in the central bank said the RAKUB would need an additional amount of Tk 400 crore to overcome its liquidity shortfall caused by poor recovery of accumulated bad loans given mainly to farmers. The central bank in a letter last week requested the finance ministry to support the specialised agricultural development bank to raise its authorised and paid-up capital. ‘Additional funds should be injected into the RAKUB to keep the normal flow of agricultural credit in the northern region and to solve the capital inadequacy of the bank,’ a high official of the finance ministry said, acknowledging the request made by the central in this regard. The bank needs to increase its authorised capital to Tk 400 crore from the existing Tk 220 crore and paid-up capital to Tk 400 crore from Tk 180 crore now, the central bank feels. The bank’s capital shortfall stood at more than Tk 200 crore. ‘To strengthen the capital base, the RAKUB needs to be restructured,’ the central bank letter stated. According to the central bank’s latest audit report in December 31, 2007, the RAKUB’s risk weighted assets were Tk 2640.97 crore, while its required capital was Tk 264.10 crore. The bank operates in the region through a network of 364 branches.
— New Age