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A new law is expected to be formulated soon to safeguard patent rights of diverse indigenous products bearing Bangladesh’s culture, tradition and history from possible grab by foreign countries and multinational corporations.
   Sources in the industries ministry have informed New Age that the government is preparing the ‘Geographical Indications of Goods Registration and Protection Ordinance-2008’ to safeguard Bangladesh’s geography-specific commodities under the World Trade Organisation’s regime.
   However, the government has no dossier of the indigenous products which earned fame at home and abroad, the ministry officials admitted.
   Despite immense potential of home-grown goods and products, developing countries like Bangladesh are not in a position to take advantage of them in absence of huge investment to promote the items internationally. In some cases, foreign countries are claiming the patent rights and multinational companies are selling the products using their own labels.
   ‘Without such a law, the government cannot apply to TRIP [trade-related intellectual property rights] Council under the World Intellectual Property Organisation for protection of the patent rights of its goods and commodities,’ said a senior official of the industries ministry.
   Already, India has applied to the TRIP Council claiming patent rights of a variety of mangoes called Fazli and Nakshi Kantha [designed blanket] — both of which have originated in Bangladesh. Dhaka has not been able to lodge its claim in absence of a law, said the official.
   Some developed countries are using the fame of geography-specific items as their own brands, said the industries ministry official. Registration of patent rights with the TRIP Council gives a country protection from misuse by any other country or party.
   Neighbouring countries such as India and Pakistan and Asia’s business hub Singapore have already enacted their laws on geographical indications for protecting their indigenous commodities.
   Patentable goods, commodities and products with exclusive Bangladeshi origin encompass Jamdani Saree of Narayanganj, Tant Saree of Tangail, Fabrics of Tant [weaving], Shital Pati [bed sheet], Hilsha of Padma, Cham Cham [sweetmeat] of Porabari in Tangail, curd of Bogra, Rashamalai [sweetmeat] of Comilla, manda of Muktagachha, honey of Sunderban, orange of Chhatak, litchi of Dinajpur.
   When contacted, Farhad Mazhar, an environmentalist and founder of Naya Krishi Andolan [new agricultural movement], stressed the need for documentation of all home-grown commodities for claiming patent rights.
   ‘Without local documentation of the diverse items, a law will not be effective and the government will not be able to protect the patent rights,’ he said adding that Bangladesh could claim patent rights of some 450 varieties of rice only.
   Usually, matters of intellectual property rights, such as innovations and design and marketing of industrial products are covered by a number of existing laws.
   The industries ministry has asked officials of all the ministries to come up with their observations, views and suggestions on formulation of the law by July 30.

The financial loss faced by garment factories in Chittagong from acute power crisis was more than the loss caused by hartals and strikes before January 11 changeover in 2007, said first vice-president of the BGMEA, MA Salam, in Chittagong on Friday.
   Addressing a press meet in the afternoon, the leader of the Bangladesh Garment Manufac-turers and Exporters Association said the garment sector was hit hard when there were hartals and port deadlocks before January 11.
   ‘But we are again forced to face losses due to severe power crisis. Our garment factories here are being seriously affected as we do not get power supply for seven to eight hours daily on an average,’ he said, adding that the garment sector faced 30 per cent production loss due to the power crisis.
   ‘Sometimes, we lose our export orders’ he added.
   ‘Some of the garments factories were falling sick leaving the liabilities on the shoulder of the owners while the workers were thrown out of their jobs. Consequently, we fell concerned about labour unrest,’ he said.
   He demanded intervention of the government for ensuring supply of minimum 500MW regularly to overcome the crisis. He also pointed out the gas and water crises in Chittagong.
   ‘Those who set up industries here to run with gas, they face more trouble for lack of gas connection as their investment remained idle with no relief from bank liability,’ he said.
   Among other BGMEA leaders Mahbub Ali, Ershad Ullah, Khalilur Rahman and Hasanuzzan Chowdhury addressed the news briefing.

Prices of chicken in the Sylhet city markets and on its outskirts have increased by 40 to 60 per cent, while prices of egg hiked by more than 33 to 40 per cent in the past three weeks.
   The retailers claimed that they are to buy both the farm and local chickens at high prices, which forces them to charge higher rates.
   The wholesale poultry traders said supply shortage and increased costs of poultry feeds, medicines and young fowls have pushed up the prices of the essential goods.
   Numan Ahmed, former secretary of Dakshin Surma Poultry Feed Traders’ Association, said increasing demand for chickens from the limited income group people in the country alongside the price hike on the global market is also one of the major reasons behind the climbing chicken prices.
   ‘Lower prices of chicken meat compared with the red meats in the markets forced the general people of the country to buy chicken,’ he added.
   The farm chickens were sold at Tk 90 per kilogram only three weeks back, but they were selling at Tk 140 at different markets including Bandarbazar, Kadamtali, Kazirbazar, Bhartakhala, Ambarkhana, Kazitula, Rikabibazar and Madina Market in the city on Friday, sources in the market said.
   The non-farm chickens were seen to sell between Tk 190 and Tk 200 per piece, which was sold between Tk 120 and Tk 125 three weeks back.
   Prices of eggs also have increased by more than 33 per cent to 40 per cent per hali (each four) competing with the price hike of broiler chickens in the city markets, sources in the markets said.
   Each hali of farm and local poultry eggs sold at Tk 18 and Tk 20 respectively several weeks back, but they were selling at Tk 24 and Tk 28 in the city markets on Thursday.
   ‘We have nothing to do with the price hike as we have bought the eggs at high rate,’ Samuj Ali, a retailer at Bandarbazar, said.
   Talking to New Age, Azizur Rahman, a retired government employee, said the government should appoint specific officials to supervise the markets to check the unbridled price hike.

India’s annual rate of inflation has risen to 11.42 per cent on the back of rising prices of food, fuel and manufactured goods, government data released Friday showed.
   Inflation jumped to 11.42 for the week ended June 14,
   against 11.05 per cent for the previous week. The rise was marginally higher than
   analysts’ expectations, and keeps the rate at a more than 13-year high.
   The Reserve Bank of India on Tuesday hiked its short-term lending rate as well as the Cash Reserve Ratio, or the amount of cash banks must hold in reserve, to tame prices.
   The coalition government is under tremendous pressure to control prices, as it fears voter discontent ahead of national elections scheduled by May 2009 at the latest.
   Analysts said they expected further monetary tightening by the central bank.
   ‘We expect the RBI to remain aggressive in its monetary policy tightening in coming months,’ said Anubhuti Sahay, an economist with Standard Chartered Bank.
   Standard Chartered said the RBI may raise its short-term lending rate by a further 50 basis points — from the current 8.5 per cent — by the end of the year.
   ‘The pressure on inflation is likely to sustain in coming weeks,’ said Siddhartha Sanyal, an economist with brokerage Edelweiss Securities.
   Price rises have overshadowed better-than-expected growth of 9.0 per cent in the past fiscal year.
   Economists expect growth to slow this year to around 7.8 per cent on higher borrowing costs and tough global financial conditions.
   The prime minister has projected growth of more than eight per cent.

The traders of pottery and terracotta showpieces on the footpaths in Dhaka have demanded permanent venues in the capital city for expansion of their business.
   While visiting the pottery and terracotta showpieces shops on the footpath stretching from the south gate of the High Court and the Doel Chattaar, nearing to the Bangladesh Shishu Academy, New Age reporter came across several traders of earthen showpieces who expressed their long-cherished demand for a permanent venue in the capital city for the boom of their business.
   The traders said they had been selling pottery and terracotta showpieces on the footpath since late ’80s and now their present temporary venue under open sky became popular among the city dwellers and foreign tourists.
   M Obaidullah, president of the Dhaka Mohanagari Mrit Shilpa Bohumukhi Samabaya Samity told New Age, ‘We need several permanent venues, including the High Court premises, in the capital for doing the potential business which is at present worth around Tk 50 crore annually.’
   But he mentioned some hazards of running this business on the footpaths sprang across the capital, where they always feel insecurity. However, he expressed satisfaction as they were facing lesser number of problems now and doing business in an atmosphere free from extortion and unauthorised toll.
   ‘Pottery traders were prime target of the activists of student wings of major political parties. Very frequently, they collected tolls from us in the name of their various organisational programmes, including the birth and death anniversaries of Bangabandu and Ziaur Rahman,’ he said adding ‘During the political-government in power, a section of law-enforcers had also collected extortion from the traders.
   ‘Now the personnel of law enforcing agencies are not distributing us’, he added.
   Pottery trader Shoel Rahman said he had been doing this terracotta business for the past 15 years. Then the numbers of showpieces traders were very few and numbers of customers were also less, who usually came to buy flower tubs.
   But the situation has changed. Pottery and terracotta showpieces are now very popular among the city people and the tourists. The buyers opt for this venue now as this is the biggest market of pottery and terracotta items.’ he added.
   He informed some 55 shop-owners in Dhanmondi and Gulshan areas in the city sell earthen showpieces worth around Tk 4 to 5 lakhs each day depending on the weather, political situation, and new arrivals of pottery pieces.
   Another trader Abdul Khaleq informed that earlier they could sell only pottery items but now they sell lots of attractive terracotta showpieces such as wall hanging, sculpture, flower vase, ashtray and pots for stuffing coins.
   ‘Now it is a dull season for pottery business due to rainy season as the customers hesitate to come in this areas for buying showpieces’ he added.
   A buyer named Konka told New Age that they were facing problem in the rainy season as there was no shed at the venue and rains hamper their shopping sometimes.
   The traders said they place orders to the showpiece makers as per demand of the customers or for popular items. They collect clay products from the makers of Savar , Barisal, Faridpur, Patukhali, Bhola and different district units of the Bangladesh Small and Cottage Industries Corporation.
   Expensive terracotta products come from Rajbari, which are usually brought by the foreign tourists. Per feet terracotta deigns costs Tk200 to Tk500. Most of the items arrive in primitive form and painting and beautifications are done by the shopowners.
   The prices of attractive pottery items vary depending on designs or sizes although the smallest items start from Tk 15 per piece. Bangladeshi ceramic items are also available at the shops in the form of wall pots at a cost of Tk 40 and marvellous candle stands at Tk 100 per piece.
   They also have some eye-catching items, such as clay mugs and bells which are sold at Tk 95 each. There are animal figurines priced at Tk 400 to Tk 500 per piece.
   There are around 55 such shops on city footpaths which sell earthen, bamboo, cane, wood, ceramic, jute and cottage industries items.
   One can buy earthen ornament sets at the cost of Tk 50 each while woodworks and clay items are priced at Tk 180 per piece. The ceramics miniatures are all reasonably priced at Tk 15, while replicas of brides and grooms are priced at Tk 25.
   Animal figurines vary in price according to the size. Of the animal figures, the most striking are the ducks. Its largest size priced at Tk 450, while the monkeys are available at Tk 80 per piece.
   Although the traders have been doing their businesses at the venue opposite to the Curzon Hall of the Dhaka University for a long period of time, they do not have any permission from the Dhaka City Corporation. For this reason, they don’t have access to the banks for loan. So they are taking loans from different samabaya samity on high interest rate.
   The president of Mrit Shilpa Bahumukhu Samabaya Samity said if the government would provide necessary supports, including bank loan, to the pottery traders, they could expand the markets at home and abroad. The showpieces and terracotta business could earn more foreign currency and create huge employments in the country.

The future for global aviation is ‘really bleak’ unless the industry takes drastic measures including mergers and substantial fare increases, Malaysia Airlines said Friday.
   The national carrier’s managing director and CEO Idris Jala said that with oil prices at unprecedented levels more airlines would be forced out of business and the majority would sink into the red.
   ‘The prognosis for the industry is really bleak,’ he said in an open letter.
   ‘Change — and I mean drastic change — is absolutely vital for our survival. That, and a willingness to reinvent the way we operate, including through mergers and acquisitions,’ he said.
   Jala said the flying public must be prepared to face sharply higher prices for air travel ‘or be prepared to stomach even higher prices later when the number of participants becomes fewer and competition fizzles out’.
   ‘Put bluntly, if these adjustments don’t take place — and quickly — the airline industry will collapse and have a ripple effect throughout the entire world economy,’ he said.
   Malaysia Airlines has slashed staff and routes in a so-far-successful effort to reinvent itself and arrest a series of losses that threatened its viability.
   Jala said the carrier had ‘kept our head above water’ with a modest profit in the first quarter of this year, but that increases in surcharges were unavoidable — although it would hold off on domestic routes for now.
   ‘Fares may have to go up — no longer incrementally — but by as much as half, capacity cut by a quarter and costs cut even further by a tenth,’ he said of the global aviation industry.
   ‘These have to be done in the face of customer resistance, grounding aircraft, cutting staff and squeezing out virtually all but the most essential costs,’ he said.
   Jala said the industry faced a ‘perfect storm’ with the surging oil price, a slowing global economy, overcapacity and the rapid growth of budget carriers, which are shaving margins to the bone.
   But he said that if carriers were brave enough to introduce painful reforms, it would lay the ground for a more sustainable industry with enough operators still in business to keep fares fair.
   ‘The good times will return,’ he said.

New Zealand’s economy appeared headed for recession after official confirmation on Friday that growth went into reverse in the March quarter.
   The New Zealand economy shrank 0.3 per cent in the March quarter, largely due to the impact of a drought on agriculture and a slowdown in construction and household spending, Statistics New Zealand said.
   Many economists are expecting the June quarter to show a further contraction, fulfilling the definition of a technical recession as two consecutive quarters of decline.
   ‘The effects of the drought will continue to be a major drag on economic growth in the second quarter, including through restricting hydro-electricity generation,’ Westpac Bank chief economist Brendan O’Donovan said.
   ‘Combined with the ongoing housing market correction and weak domestic demand, we expect economic growth in the second quarter to be even weaker than Q1 — our initial estimate is a fall of 0.5 per cent.’
   There were plenty of other signs of a struggling economy this week, with news of a surprise trade deficit for May, a worse than expected current account deficit and profit downgrades by major retailers.
   Although average gross domestic product growth in the year to March came to 3.0 per cent, all the signs pointed to a sharp slowdown this year.
   Agricultural output shrank 5.6 per cent in the March quarter, Statistics New Zealand said.
   A 5.2 per cent fall in construction and 1.2 per cent drop in manufacturing drove a 1.9 per cent decline — the biggest since June 2000 — in goods-producing industries. Household consumption spending fell 0.4 per cent in the March quarter, the first decline since the June 2004 quarter, SNZ said.
   Finance Minister Michael Cullen said after eight years of strong growth, the New Zealand economy had been hit by slowing global growth, rising oil and food prices and higher credit costs because of the US credit crunch.

The number of people around the world with at least 1 million US dollars in assets passed 10 million for the first time last year, according to a new report. And their bank accounts are growing even faster.
   The combined wealth of the globe’s millionaires grew to nearly 41 trillion dollars last year, an increase of 9 per cent from a year before, Merrill Lynch & Co and consulting firm Capgemini Group said Tuesday. That means their average wealth was more than $4 million, the highest it’s ever been. Home values were not included in asset totals.
   ‘The growth of their wealth is outpacing the growth of their population, and that’s a trend that’s going to continue in coming years,’ said Ileana Van Der Linde, a principal with Capgemini.
   The ranks of the wealthy are growing fastest in the developing economies of India, China and Brazil. The number of millionaires in India grew by about 23 per cent.
   The United States still reigns supreme when it comes to fat wallets, though: One in every three millionaires in the world lives in America. In combined, Africa, the Middle East and Latin America account for just one in 10.
   All told, there were about 600,000 more millionaires in the world in 2007 than in 2006, for a total of about 10.1 million. That’s a 6 per cent increase from the previous year.
   Ten million may seem like a big number for such an elite club, but it still represents less than one-fifth of 1 per cent of the world’s 6.7 billion people.
   The rarefied group of the superrich — those with at least 30 million dollars in assets — got richer, too. There were 103,000 of them around the world last year, 9 per cent more than the year before, and their wealth grew by nearly 15 per cent.
   The 600,000 new millionaires were unsurprising to Brian Bethune, an economist with Global Insight, who said inflation and the expansion of the world economy accounts for the growth.
   Besides, $1 million isn’t what it used to be. One million dollars in 1996, the first year the report was issued, would have been worth about 1.3 million dollars last year, Van Der Linde said.
   Steady growth powered economies worldwide in the first half of 2007, but more mature markets were hammered in the second half by the US housing and credit crises. Emerging economies were largely unaffected, the report found.
   The downturn started catching up with emerging economies in the beginning of 2008, Van Der Linde said.
   Already, the report found, the millionaires club wasn’t expanding as fast as before. From 2005 to 2006, the group swelled by more than 8 per cent. The club has grown every year since the report was started.

Japan said Friday core inflation accelerated to the fastest pace in a decade on soaring oil costs while consumer spending tumbled, fanning jitters about the outlook for Asia’s largest economy.
   Japan was stuck in a deflationary spiral for years, but the return of inflation has also been met with concern as it is being driven entirely by rising import costs rather than a stronger domestic economy.
   Core inflation, which excludes volatile fresh food prices, hit a decade-high of 1.5 per cent in May, up from 0.9 per cent in April, the government said.
   The fear is that higher costs of commodities such as crude oil, steel and grains will cut into company profits and consumer spending.
   ‘The current inflation is a bad thing,’ said Kyohei Morita, chief economist for Japan at Barclays Capital. ‘Not only corporate margins, but also household purchasing power, are worsening,’ he said.
   Surging oil import costs continued to have a major impact on inflation. Excluding energy, core consumer prices slipped 0.1 per cent in May. Food prices jumped 2.4 per cent from a year earlier.
   ‘The rise in the price index is not favourable at all as it was not caused by increasing demand,’ said Hiroko Ota, minister for economic and fiscal policy.
   ‘The higher material costs, as well as higher oil prices, are undermining corporate performance and consumer sentiment.
   Spending by Japanese households fell 3.2 per cent in May from a year earlier, the government reported, while unemployment held steady at 4.0 per cent.
   On a brighter note, industrial output rose by 2.9 per cent in May from the previous month, the first increase in three months.
   Production is expected to slip 0.9 per cent in June but rise 2.2 per cent in July, according to a survey of manufacturers.
   ‘The domestic economy is proving resilient in the face of the squeeze on consumers’ real incomes and on corporate profitability from higher commodity prices,’ noted Macquarie Securities economist Richard Jerram.
   But other analysts were less optimistic.
   Although Japan’s gross domestic product grew briskly in the first quarter of 2008, the economy is likely to contract in the second quarter while the third will be barely positive, Barclays Capital’s Morita predicted.
   Japan’s corporate sector has been a key driver of the recovery in the world’s second-largest economy after a decade-long slump.
   But many firms are now looking to scale down capital investment on new equipment and factories to cope with weaker earnings, raising fears Japan’s economic recovery could stall temporarily.
   Bank of Japan for years battled to end deflation with an unprecedented policy of virtually free credit.
   Analysts, however, do not expect the Bank of Japan to raise its super-low interest rates from the current level of 0.5 per cent any time soon given the fragile health of the economy.
   The latest data ‘highlighted the dilemma the BoJ has been facing: inflationary pressures and weakening economic activities,’ UBS economists wrote in a note to clients, predicting no change in rates in the foreseeable future.
   Core consumer prices in Tokyo, a leading indicator released a month earlier than the figures for the whole of Japan, rose 1.3 per cent in June after a gain of 0.9 per cent in May, the government reported.

Thousands of new wind turbines could be built across Britain by 2020 as part of multi-billion pound plans to switch to more sustainable energy sources, British Prime Minister Gordon Brown said Thursday.
   Setting out the London government’s plans for greater investment in and reliance on renewables, Brown envisaged Britain’s coastal waters being turned ‘into the equivalent for wind power of what the Gulf of Arabia is for the oil industry’.
   This year, Britain would pass Denmark as the country with the world’s highest operating offshore wind capacity of more than 400 megawatts, he told a low carbon economy summit in London.
   ‘By 2020 we will have installed around 14 gigawatts — that is around 3,000 offshore wind turbines, meeting up to 50 per cent of our renewable electricity,’ he added, stating he wanted Britain to be a leader in ‘clean energy.’
   ‘The North Sea has now passed its peak of oil and gas supply — but it will now embark on a new transformation into the global centre of the offshore wind industry,’ he added.
   There will have to be more windfarms onshore too, despite criticism including from those who say they blight the landscape, he said.
   A government blueprint announced later set out plans for 7,000 new wind turbines — 4,000 onshore and 3,000 offshore — greater supports for ‘green’ energy and allowing renewables into the national power grid.
   Brown also renewed his commitment to greater use of wind, wave and nuclear power to move Britain away from its reliance on oil and fossil fuels, amid spiralling prices, in order to secure its future energy supplies and meet carbon reduction targets.
   Currently about eight per cent of Britain’s total energy supply comes from low carbon sources — two per cent from renewables and six per cent from nuclear.
   Britain has a European Union-imposed target to produce 15 per cent of its energy supply from renewables by 2020. Brown said to do so would require 100 billion pounds (126 billion euros, 198 billion dollars) of investment.
   The measures would see Britain generate up to a third of its energy supply from renewables to meet the target, Brown added.

South Korea’s current account balance stayed in the red for a sixth straight month in May due to rising prices of oil and other commodities, the central bank said Friday.
   The shortfall was 377.5 million dollars in May compared to a revised 1.58 billion dollar deficit in April.
   For the first five months to May, the accumulated deficit widened to 7.17 billion dollars compared with a 2.9 billion dollar shortfall a year earlier, the Bank of Korea said.
   The bank predicts the account will register a shortfall of three billion dollars this year, which would be the first annual deficit since 1997, although, the finance ministry predicts the deficit may reach 10 billion.
   South Korea, the world’s fifth-largest crude buyer, relies entirely on imports for its oil needs.
   A sustained deficit in the current account, which measures trade, services and investment flows, has put downward pressure on the local currency and hampered the bank’s efforts to fight inflation.
   The won has fallen 9.7 per cent against the dollar so far this year.
   In May the trade account posted a surplus of 612.5 million dollars, while the income account posted a surplus of 459.2 million.
   The service account deficit widened to 1.17 billion dollars from 979 million dollars in April.
   The capital account, which includes overseas borrowings, recorded a deficit of 1.25 billion dollars compared with a shortfall of 386.9 million dollars a month earlier.

The Rangpur Foundry Ltd has declared 16 per cent divided for the shareholders of the company.
   The dividend was declared at the 28th annual general meeting of the company held at the National Shooting Complex, Gulshan in the Dhaka city on Thursday.
   Lt Col (retd) Mahtabuddin Ahmed, chairman of the board of directors of the company, presided over the meeting attended by a large number of shareholders, said a press release.
   Ahsan Khan Chowdhury, managing director, Maj Gen (Retd) Amjad Khan Chowdhury, director, Sabiha Amjad, director, Sheban Kumar Naha, director, and Rathedra Nath Paul, executive director, were present in the meeting.

The Square Pharmaceuticals Ltd has recently gone into a strategic partnership with PC Pharma of Sri Lanka, a subsidiary of PCH Holding, a corporate group having an integrated chain of well diversified businesses in Sri Lanka.
   Under the strategic partnership, PC Pharma, which is the first of its kind in attaining the ISO 9001-2000 certification for pharmaceutical importation in Sri Lanka, would market a large range of Square’s products, said a press release.
   Apart from the regularly demanded pharmaceutical products, this partnership would also see the launch of molecules in such therapeutic categories as antidiabetic, neuropsychiatry, antibiotics, cardiac, respiratory, dermatology and ear and eye preparations coupled with forming a partnership with Square Cephalosporins Ltd, enabling to serve with the latest generations of cephalosporin products including injectables for the Sri Lankan market.

Korean company Pungkook Chittagong (Pvt) Co Limited will set up a bags, packs and luggage manufacturing industry in the Karnaphuli Export Processing Zone.
   This 100 per cent company will invest initially about Tk 315 crore in setting up their plant and will produce annually eight million pieces of all kinds of bag and carrying case.
   The company will also create employment opportunity for 2000 Bangladeshi, including four foreign nationals.
   An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the Pungkook Chittagong (Pvt) Co Limited in BEPZA Complex in the Dhaka city on Thursday.
   Prasanta Bhushan Barua, member (investment promotion) of BEPZA, and Sang Hyup Lee, managing director of Pungkook Chittagong (Pvt) Co Limited, signed the agreement on behalf of their respective organisation.

The value of total exports of goods in Hong Kong rose to 238.9 billion HK dollars (US$30.5b) in May, up 10.3 per cent over the same month last year, the Census and Statistics Department of Hong Kong said Thursday.
   Of the total, the value of re-exports grew 11.3 per cent to 230.8 billion HK dollars while the value of domestic exports fell 12 per cent to 8.1 billion HK dollars.
   Concurrently, the value of imports of goods rose 15.4 per cent over a year earlier to 266.4 billion HK dollars in May. A visible trade deficit of 27.5 billion HK dollars, equivalent to 10.3 per cent of the value of imports of goods, was recorded.
   For this year’s first five months as a whole, the value of total exports of goods rose 11.2 per cent over the same period last year, said the department.
   The department said the vibrant Chinese mainland market and other emerging markets, as well as the solid expansion of the European market, have offset the decline in exports to the U.S. market.

Diversifying risk exposure and concentrating more on small enterprises and retail businesses are among the future strategies of Prime Bank.
   The fast-growing bank also looks at service automation and compliance with the international banking standards as per the Basel II Framework, says the bank's chief executive.
   Customer-driven products, professional and efficient management and full ownership of the service are the key to the success of Prime Bank, one of the country's second generation private banks.
   The bank's products are meant to help customers in particular and the economy in general, said M Shahjahan Bhuiyan, managing director of the bank.
   'Before launching any product, we conduct customer survey and analyse how much it will be beneficial to them,' he said.
   The management renders the service through a very professional manner and it has a positive approach to help each of the existing and potential clients, he added.
   The most important thing is that the bank takes full ownership of the service, which means the officials continuously counsel clients what is good for them and help them even after providing the service, the managing director said.
   The bank has taken the policy to give the best service at the shortest possible time with dedicated workforce, he said.
   Through the process, customers become the brand ambassadors of the bank, he added.
   'As a matter of fact, a large number of potential customers approach the bank upon advice from existing clients,' he observed.
   Prime Bank, an AA rated bank, started its journey in 1995 with a vision to be the best bank in Bangladesh in terms of efficiency, profitability, capital adequacy, asset quality and sound management.
   It earned Tk 140 crore profit after tax and paid-up capital went up to Tk 227 crore at the end of 2007, with branch network growing to 62 up to June this year.
   It has taken a strategy to diversify its risk exposure and put more attention to small and medium enterprises and retail banking, the managing director said.
   'We will definitely look after our corporate clients but at the same time we will expand our business in the SME and retail areas,' he said.
   If the bank gives Tk 100 crore loan to one borrower and if the businessman fails, all the money would be lost but if 100 clients get Tk 1 crore each and out of that 4 or 5 customers fail, the bank would not be in any trouble, he explained.
   The future plan of the bank is to increase investment in the SME and retail sectors and have less concentration on large loans, he said.
   The bank has set a target to expand its investment to Tk 900 crore in 2008 from about Tk 450 crore in 2007 in SMEs and retail banking business, Shahjahan said. The target to increase overall investments is set at Tk 7,713 crore in 2008 from actual investment of Tk 5,761 crore in 2007.
   About the non-performing loans, he said it was one of the lowest among banks and stood at only 1.35 per cent at the end of December. 'The management is trying to bring it down below 1 per cent,' he added.
   The bank has introduced real online banking system at 27 branches and planned to bring the rest under automation by 2008. 'The bank is installing one of the best banking software called Temenos, which is used by Deutsche Bank, Lehman Borthers and CreditSussie,' the chief executive said.
   The bank has also introduced 14 ATM booths this year and it would expand its operation in other areas very soon, he added.
   In respect of corporate social responsibility, he said the bank has focussed on five key areas - nation building, enhancement of market place, promotion of workplace, support to the community and protection of environment.
   The bank strictly follows the corporate governance instructions of the two financial sector regulators - Bangladesh Bank and Securities and Exchange Commission.
   'We are preparing ourselves for the Basel II, which will be implemented from 2009 to 2012,' he said.

Britain’s economy stumbled badly during the first three months of 2008, recording the lowest quarterly expansion for three years amid the global credit crunch and a slowing property market.
   Gross domestic product expanded by just 0.3 per cent in the first quarter of 2008 compared with the final three months of 2007, according to the Office for National Statistics.
   GDP grew by 2.3 per cent during the first quarter when compared with the year-earlier period, it added. The services sector performed particularly badly.
   The figures were revised down from data published in May, when the ONS said GDP growth had stood at 0.4 and 2.5 per cent respectively.
   ‘The figures paint a pretty worrying picture,’ said Jonathan Loynes, chief European economist at consultancy Capital Economics.
   ‘With growth already so weak in the first quarter before the full effects of the credit crunch and housing downturn had been felt, the economy looks set to slow significantly further over coming quarters.’
   He added: ‘We now expect GDP growth to slow to just 0.5 per cent in 2009, with a very real chance of a technical recession.’ A recesssion is defined as two successive quarters of negative economic growth.
   The latest first-quarter estimates compared with analysts’ consensus forecasts for no change on both readings.
   Global Insight economist Howard Archer said that despite the weak data the Bank of England was likely to avoid cutting interest rates this year because it was also trying to tackle high inflation.
   ‘Any cut in interest rates now looks unlikely until 2009, unless the economy really falls off a cliff over the coming months,’ Archer said.
   ‘With consumer price inflation set to exceed 4.0 per cent later this year ... the Bank of England will tread extremely carefully on the interest rate path.’
   The BoE’s chief task is to keep annual British consumer price inflation close to a 2.0 per cent target.
   British inflation hit a 16-year high of 3.3 per cent in May, driven by soaring food and energy costs prices, according to recent official data.
   Earlier this month, the BoE held its key interest rate at 5.0 per cent amid heightened fears about rising inflation despite slower growth which has been hampered by the ongoing credit squeeze.
   However, Investec economist Philip Shaw said that doubts remained about whether the British economy would avoid a recession.
   ‘Today’s GDP figures open up the possibility that growth will continue to weaken ... and although we take the view that the economy will avoid a recession, our confidence is ebbing,’ Shaw said.
   He added: ‘Speculation over a recession, coupled with the likelihood of a further 1.0 per cent increase in inflation over the next three to four months, will make for a very uncomfortable summer.’

Four major airlines, including Air France-KLM and Cathay Pacific Airways, have agreed to pay US criminal fines totaling 504 million dollars for conspiring to fix air cargo prices, officials said Thursday.
   The US Justice Department said a subsidiary of Danish carrier SAS and Martinair Holland had also agreed to plead guilty to similar charges as part of an ongoing probe tied to a multi-year conspiracy.
   ‘This price-fixing conspiracy undermines our economy and harms the American people who, due to lack of true competition in this area, end up footing the bill,’ said Kevin O’Connor, an associate US attorney general.
   Air France-KLM will pay the largest fine among the four airlines charged, totaling 350 million dollars. Officials said the penalty was the second highest ever applied in a US criminal antitrust investigation.
   Justice Department officials said the airlines plotted to ‘suppress and eliminate’ competition by fixing cargo freight rates charged to customers for international air shipments.
   ‘As part of the conspiracy, several companies and their co-conspirators artificially raised the price to ship into and out of the United States consumer goods of all types,’ O’Connor said.
   Officials said the conspiracy affected billions of dollars of consumer and other goods shipped by the airlines, including produce, electronics and medicines, over several years.
   The plea agreements are subject to US court approval. All the carriers have agreed to cooperate with an ongoing investigation which is supported by the Federal Bureau of Investigation.
   ‘Air France is committed to compliance with all laws, including US antitrust laws. We have taken thorough steps across the organization to prevent recurrence, as Air France is committed to the highest standards of corporate governance,’ the chief executive of Air France-KLM, Jean-Cyril Spinetta, said in a statement.
   The carrier said it had set aside cash to pay its fine.
   Hong Kong-based Cathay Pacific agreed to pay a 60-million-dollar fine, while SAS will pay a 52-million-dollar penalty and Martinair will pay a 42-million-dollar sanction. Cathay Pacific chief executive Tony Tyler said the airline’s guilty plea ends the US probe of its cargo pricing.
   ‘The company has carefully considered all applicable factors and concluded that entering into this agreement at this time presents the best resolution to the investigation,’ Tyler said.
   The Justice Department has already charged other major airlines as part of its widening dragnet into the air cargo conspiracy.

The French economy is growing more slowly than previously signalled, official figures revealed on Friday, ending a worrying week of data and calling annual government forecasts further into question.
   The INSEE statistics institute revised down its estimate of first-quarter growth in gross domestic product to 0.5 per cent from 0.6 per cent. That meant that growth guaranteed for 2008, in the absence of any recession, was 1.2 per cent instead of 1.4 per cent.
   The final outcome depends on growth in the rest of the year, but the latest data pulls down the baseline on which the government is projecting growth for the year of 1.7-2.0 per cent.
   ‘As it prepares to assume the presidency of the European Union from July 1, France is moving closer and closer to recession,’ warned analyst Marc Touati of Global Equities.
   Economy minister Christine Lagarde was undaunted by the INSEE findings, replying ‘certainly not’ when asked by journalists if the administration would also trim its forecast.
   ‘We’re sticking to our projection, a range ... of 1.7-2.0 per cent.’
   ‘We’re on the job, we’re trying to reduce unemployment and put in place systems that, in a very restrictive international environment, will take advantage of French strengths.’
   INSEE on Thursday, citing its June household confidence index, pointed to a nation of consumers in ever-deepening gloom about living standards, financial prospects, savings and inflation.
   They are the most pessimistic about the outlook for 21 years, the survey data from the institute showed.
   Friday’s figures also revealed that French purchasing power, a critical factor in the attitude of French consumers toward their economy, was stagnant in the first quarter after rising 3.0 per cent in 2007.
   In addition, said Touati, ‘the prolonged deterioration in French industry’s production perspectives, the abysmal decline in household confidence, the further fall in housing starts and weaker activity in the services sector means that French growth could stagnate or even contract for one or two quarters this year.’
   At consultancy Xerfi analyst Alexander Law said household spending, traditionally the most reliable prop for the French economy, was running out of steam.
   Some consolation, he added, could be taken from corporate investment, which was up 1.3 per cent in the first quarter from 1.1 per cent in the final three months of 2007.
   French companies are enjoying the fruits of still strong demand in emerging market economies.
   But he cautioned that in light of tight credit conditions, reflecting bank losses in the US subprime mortgage collapse, French companies could have trouble financing future projects.
   Law said the trade sector could also help shore up momentum, although ‘a slowdown in international activity and the strength of the euro will hamper sales abroad.’

Canada must reduce barriers to foreign investment in its airline, uranium mining, banking, broadcasting and telecommunications sectors to be more competitive, a report said Thursday.
   As well, the government should increase takeover review thresholds to one billion dollars in enterprise value, the Competition Policy Review Panel said in its report to industry minister Jim Prentice.
   And the onus should be reversed to require the minister to demonstrate that an investment would be contrary to Canada’s national interest before disallowing a transaction, it said.
   ‘The panel believes that Canada needs to be more open to competition, as competition spurs the productivity enhancements that underpin our economic performance and ultimately our quality of life,’ said chair Lynton Ronald Wilson.
   ‘The freer flow of goods and services will import greater competition into domestic markets,’ he said.
   The panel was set up in July 2007 after a wave of takeovers of Canadian companies provoked an outcry from nationalists to review Canada’s investment, ownership and competition laws.
   Consolidations have since attenuated.
   But, said Wilson, the proposed measures would still yield ‘better products at lower prices, more jobs and higher earnings, stronger companies, and a stronger economy’ in a global marketplace.
   In its report, the panel urged the government to allow up to 49 per cent foreign ownership of Canadian airlines on a reciprocal basis; allow foreigners to process Canada’s uranium; allowing foreign firms to establish or acquire Canadian telecom companies with less than a 10 per cent 0market share; and remove a ‘de facto’ prohibition on bank mergers.
   For more than a decade, the government has blocked mergers of Canada’s five big banks.
   Issues related to state-owned enterprises and implications for national security were not subject to review by the panel, he noted.

Bank of America said Thursday it will cut about 7,500 jobs after it closes its acquisition of mortgage lender Countrywide Financial Corp.
   The job cuts amount to about 12.5 per cent of the combined companies’ mortgage, home equity and insurance businesses, after the purchase is completed next week.
   The Charlotte-based bank said the cuts will take place over the next two years in locations across the country ‘in instances where the two companies have significant overlap.’ The company will begin notifying affected employees in the third quarter.
   Bank of America expects to close the deal July 1, having received the go-ahead from Countrywide shareholders on Wednesday. The all-stock deal, valued in January at about $4 billion, is now worth around $2.8 billion, reflecting a decline in Bank of America’s stock price over the last six months.
   Earlier this month, the Federal Reserve cleared the way for the acquisition, which would give Bank of America control of 20 per cent to 25 per cent of the home loan market.
   Countrywide had been the nation’s largest mortgage originator before a spike in bad loans ravished its business. The deepening housing slump and lingering credit crisis have since fuelled deep losses.
   Countrywide lost about $1.6 billion in the last six months of 2007 and another $893 million in the first quarter of this year. It also faces numerous investigations and lawsuits related to its lending practices. This includes a pair of lawsuits brought Wednesday in California and Illinois.
   Both cases accuse Countrywide of systematically deceiving borrowers in order to get them to take on risky loans they couldn’t really afford, and name Chairman and CEO Angelo Mozilo as a defendant.
   The states both seek unspecified damages and for Countrywide to pay restitution to borrowers who lost their homes or loans.

Oil prices jumped to record high levels above 142 dollars a barrel on Friday, as the US currency weakened further and stock markets tumbled at the end of a volatile trading week for investors.
   New York light sweet crude struck a historic peak of 142.26 dollars a barrel and Brent North Sea crude reached an all-time high of 142.13 dollars in electronic deals.
   ‘Crude oil futures made fresh record highs, with higher oil prices fuelling inflationary fears and thus hurting stock markets, which in turn triggered a further rally in commodities as investors seek better returns,’ Sucden analyst Michael Davies said in London.
   Prices ‘continued to be buoyed by the dollar, as the greenback continues its free fall descent this week,’ he added.
   OPEC’s president on Thursday predicted that oil prices could reach 170 dollars this year owing to a weak dollar and geopolitical unrest.
   Crude futures crossed 140 dollars for the first time on Thursday following the price forecast made by OPEC’s chief, Algerian Energy Minister Chakib Khelil, in an interview with television news channel France 24.
   After achieving new peaks on Friday, New York’s main oil futures contract, light sweet crude for August, changed hands at 140.27 dollars, up 63 cents from Thursday’s close, as traders banked their profits.
   Brent North Sea crude for August delivery stood at 140.30 dollars a barrel, a rise of 47 cents.
   The cost of oil has doubled in a year, with consumers blaming the surge on insufficient output from the Organization of Petroleum Exporting Countries.
   However OPEC, which produces 40 per cent of the world’s oil, argues that speculators are responsible for pushing up crude in reaction to a falling dollar and tensions in oil-producing countries, such as Iran, Iraq and Nigeria.
   A weak US currency makes oil priced in dollars cheaper for foreign buyers, thus pushing up demand for the commodity.
   In a volatile trading week, crude prices had closed down 3.50 dollars on Wednesday after official data revealed an unexpected rise in stockpiles in the United States, the world’s biggest energy consumer.
   The US Department of Energy said that stockpiles of crude had risen for the first time in six weeks, by 800,000 barrels, in the week to June 20. Analysts had expected a drop of 1.1 million barrels.
   Oil prices had rallied at the start of the week after major energy producers ruled out further output despite consumer fears the world faces a tight supply situation.
   Saudi Arabia’s King Abdullah announced last Sunday that his country had increased output to 9.7 million barrels a day as he opened a summit on the soaring international price of crude in the Saudi city of Jeddah involving producers and consumers.
   However the market had already expected the formal announcement after the kingdom’s London embassy released a statement last week that outlined a plan to increase output by 200,000 barrels a day.
   Prices also shot higher on Monday after militants blew up a pipeline in Nigeria over the weekend, traders said.
   Militants had attacked a key Chevron oil supply pipeline in the latest operation targeting Nigeria’s oil industry.
   The US oil giant was forced to shut down activities after the attack in the volatile Niger Delta, halting output by 120,000 barrels per day.
   The Anglo-Dutch oil company Shell has also said it cannot promise to deliver 225,000 barrels per day for June and July following an unprecedented raid on its offshore Bonga oilfield.
   Unrest in the Niger Delta has cut total oil production in one of Africa’s biggest producers by a quarter over the past two years.

European stocks mostly fell on Friday as oil prices shot to record levels, but losses were less than falls on other global markets hit by soaring crude costs and a weak US economy.
   Concerns are growing among investors that rising energy costs will fuel inflation and lead to higher interest rates worldwide, putting the brakes on global economic growth.
   ‘Inflation risk has rapidly replaced credit risk as the predominant issue facing global financial markets,’ said Barclays Capital analyst Larry Kantor.
   ‘The effects of higher inflation are poised to work through the global economy in profound ways for the remainder of the year.’
   Oil prices rose to record high levels close to 142 dollars a barrel on Friday.
   In European stock market trade, the Paris CAC 40 index was down by 0.84 per cent at 4,389.10 points approaching the half-way mark.
   Frankfurt’s DAX 30 shed 0.75 per cent to 6,410.97 points, but in London the FTSE 100 was up by 0.19 per cent at 5,528.90 points.
   Traders said the FTSE was in positive territory owing to large gains being won by heavyweight energy companies on the back of surging crude prices.
   While higher crude costs hurt most companies, they benefit oil companies as their profits jump.
   Earlier in Asian trading, Tokyo closed down by 2.0 per cent, extending a losing streak to a seventh day, while Shanghai slumped 5.3 per cent.
   Seoul closed 1.9 per cent lower, Hong Kong shed 1.84 per cent and Sydney lost 1.4 per cent.
   ‘The fall in the US stock market overnight caused by surging crude oil prices and anxiety over outlook for the financial sector’ sparked the sell off in Asia, said Tsuyoshi Segawa, equity strategist at Shinko Securities.
   A weak dollar was also weighing on Japanese exporters, he said.
   Asian investors took their cue from Wall Street where the Dow Jones dropped more than three per cent on Thursday to its lowest finish since September 2006.
   Oil prices had topped 140 dollars for the first time on Thursday after the president of the OPEC producer cartel, Algerian Energy Minister Chakib Khelil, forecast that prices could soon surge as high as 170 dollars a barrel.
   ‘Market confidence has been hurt badly. So, further stock market weakness is possible over the next few trading sessions,’ said Mega Securities analyst Alex Huang.
   Meanwhile in China, concerns over new share offers also weighed on shares there as investors worried that liquidity pressure would further impact the already weak stock market.
   The securities regulator said late Thursday that it would assess an application for initial public offerings in Shanghai by Everbright Securities and China South Locomotive and Rolling Stock Corp on Monday.
   The dollar fell against the euro on Friday, despite a downbeat survey on economic confidence in the eurozone, ahead of next week’s expected interest rate rise from the European Central Bank.

The euro climbed against the dollar on Friday, despite a downbeat survey on eurozone economic confidence, ahead of next week’s expected interest rate rise from the European Central Bank.
   Traders were also on alert for signs in Washington of steps to shore up the weak dollar amid concern that it contributes to soaring oil prices, which were Friday trading close to 142 dollars per barrel.
   The European single currency rose to 1.5777 dollars in morning London trade from 1.5756 dollars in New York late on Thursday.
   The US unit fell to 106.29 yen from 106.73.
   The European Central Bank was forecast next Thursday to lift its key rate by 25 basis points to 4.25 per cent in a bid to keep a lid on inflation, dealers said.
   In contrast, the US Federal Reserve left its benchmark lending rates unchanged at 2.0 per cent this week amid inflation worries, pausing after slashing rates by 3.25 per cent since mid-2007.
   Prospects of a wider gap between US and eurozone interest rates have propelled the euro higher against the dollar in recent weeks and months.
   ‘We anticipate euro/dollar remaining under some steady upward pressure into next Thursday’s ECB meeting,’ said Commerzbank analyst Gavin Friend.
   He added: ‘The dollar has come under further selling pressure as markets adjust and pare back expectations of (US rate) hikes this year; believing the Fed is more talk than action.’
   The dollar did however find limited support from speculation that US authorities may consider market intervention to shore up the faltering currency amid a weak American economy and soaring oil prices, traders added.
   ‘The Fed is now coming to a point where it will start to be tested on its ability to back up its comments (in favour of a stronger currency) with action, which means possible currency intervention,’ said Hideaki Inoue, chief foreign exchange manager at Mitsubishi UFJ Trust and Banking Corp.
   Elsewhere, the euro shrugged off news that eurozone confidence slumped to a three-year low in June, according to a widely-watched EU survey released on Friday.
   The European Commission’s eurozone economic sentiment indicator, covering the combined economy of the 15 nations sharing the euro, dropped to 94.9 points in June from a revised 97.6 points the previous month.
   It was the lowest the indicator had fallen since May 2005, with the manufacturing sector noticeably weak. Economists had expected it to ease but only to 96.1 points.
   In morning London trading on Friday, the euro changed hands at 1.5777 dollars against 1.5756 late on Thursday, at 167.68 yen (168.18), 0.7945 pounds (0.7923) and 1.6067 Swiss francs (1.6131).
   The dollar stood at 106.29 yen (106.73) and 1.0184 Swiss francs (1.0236).
   The pound was at 1.9868 dollars (1.9883).
   On the London Bullion Market, the price of gold advanced to 923 dollars per ounce from 909.50 dollars late on Thursday.

Malaysia Airlines hiked fuel surcharges on its international routes Friday, after warning the aviation industry’s future was “really bleak” unless drastic measures were taken.
   The national carrier increased the surcharges by 25-80 percent on most routes, but said the move would only partially cover the increase in fuel costs and it would monitor prices closely for future revisions.
   ‘We are actively mitigating the high fuel price by adjusting our international fuel surcharge to recover some of the fuel costs and to match the competition,’ said managing director and CEO Idris Jala.
   Jala said that with oil prices at unprecedented levels, more airlines would be forced out of business and the majority would sink into the red.
   ‘The prognosis for the industry is really bleak,’ he said.
   ‘Change — and I mean drastic change — is absolutely vital for our survival. That, and a willingness to reinvent the way we operate, including through mergers and acquisitions,’ he said.
   Jala said the flying public must be prepared to face sharply higher prices for air travel ‘or be prepared to stomach even higher prices later when the number of participants become fewer and competition fizzles out.’
   ‘Put bluntly, if these adjustments don’t take place — and quickly — the airline industry will collapse and have a ripple effect throughout the entire world economy,’ he said.
   Malaysia Airlines has slashed staff and routes in a so-far-successful effort to reinvent itself and arrest a series of losses that threatened its viability.
   Jala said the carrier had ‘kept our head above water’ with a modest profit in the first quarter of this year, but that increases in surcharges were unavoidable — although it would hold off on domestic routes for now.
   ‘Fares may have to go up — no longer incrementally — but by as much as half, capacity cut by a quarter and costs cut even further by a tenth,’ he said of the global aviation industry.
   ‘These have to be done in the face of customer resistance, grounding aircraft, cutting staff and squeezing out virtually all but the most essential costs,’ he said.
   Jala said the industry faced a ‘perfect storm’ with the surging oil price, a slowing global economy, overcapacity and the rapid growth of budget carriers, which are shaving margins to the bone.
   But he said that if carriers were brave enough to introduce painful reforms, it would lay the ground for a more sustainable industry with enough operators still in business to keep fares fair.
   ‘The good times will return,’ he said.

The price of rice coming into Singapore is likely to fall in the next several months, say importers, who predict the drop will spell some relief for consumers battered by record-high prices.
   Buoyed by a surge in supply - based in part on an expected bumper crop from Thailand - the price of fragrant rice could tumble to US$1,000 a tonne by year-end, importers forecast.
   That is 18 per cent lower than its peak last month.
   This could translate into a roughly 80-cent drop for a 10kg bag of rice at the grocery store, said Jimmy Soh, owner of rice importer Chye Choon Foods.
   Experts say that, although fragrant rice prices may fall, they are unlikely to hit the lows of September last year when a tonne of the grain cost $600.
   Export bans and growing demand from countries like China will keep prices high, said Goh Chong Theng, general manager of agri-bank Rabobank International.
   With prices falling, Asian middlemen are now cutting back on imports, biding their time until later in the month when rice is expected to be cheaper. Recent reports show that importers in the Philippines are bidding for only a fraction of the supplies they did last month in anticipation of a further drop in prices.
   And Bangkok-based exporters report lacklustre trade as most buyers wait for prices to soften before making fresh deals.
   Singapore rice importers are also holding back, in stark contrast to last month when they upped shipments by about 20 per cent when faced with record-high prices of $1,200 a tonne.
   Some Singaporean importers buy by the week, but they charge customers - usually manufacturers, provision shops and supermarkets - a monthly average.
   While they are required by the Government to import a certain amount each month, waiting until prices fall allows them to drive down that average.
   ‘Some importers who anticipate bumper harvests and lower prices will wait to buy at a later time, but others will continue with their regular imports because they think the rising cost of production makes the situation unclear,’ said Andrew Tan, chairman of the Singapore General Rice Importers Association.
   In the meantime, the squeeze on global rice supplies seems to be easing up.
   For one, Thailand reports that its rice harvest, just under way, appears to be a bumper one.

Hong Kong share prices will likely drop further next week, as oil prices are expected to continue to rise, dealers said.
   For the week, the benchmark Hang Seng Index fell 3.3 per cent to 22,042.35 points. It is down 21 per cent since the start of the year.
   Francis Lun, at Fulbright Securities, told AFP there was little chance for a rebound in the market next week.
   ‘Everything will depend on oil prices. The oil price hikes this week have destroyed any glimmer of hope for next week,’ he said.
   He also said there was little prospect for the oil-producing countries to take drastic measures to reduce prices.
   As the global economy enters recession, Lun said he did not share the view of Lee Shau-kee, chairman of property firm Henderson Land, who earlier predicted the index would climb to 38,000 points in the run-up to the Beijing Olympics.
   ‘Normally I am a bullish person. But I have changed my mind,’ he said.
   Oil prices topped 140 US dollars a barrel, while Nymex crude futures hit an all-time intraday record high of 140.39 dollars in the electronic session following the close of floor trading on Friday.
   Stock prices for airlines, oil refineries and transportation firms were expected to drop further as oil becomes more expensive, he said.
   Lun expected the market to trade in the range of 20,000-22,000 points next week.
   Peter Lai, a director at DBS Vickers, was more upbeat about the coming weeks.

India to sell helicopters to Ecuador
India on Thursday made aviation history by concluding a USD 51 million deal with the South American Republic of Ecuador for the sale of seven ‘Dhruv’ Advanced Light Helicopters. The deal signed between Ecuador Aviation Authority and bluechip state-owned Hindustan Aeronautics Limited envisages the supply of seven helicopters in semi knock-down conditions to the Republic in a time-frame of 15 months to two years, defence ministry officials said. With this, India has joined a select group of nations with a capability to bid for international contracts for choppers. So far, the helicopter market has been dominated by US, European companies and Russia. The ALH ‘Dhruv’ has been making waves in international air shows world over from the past two years but international sales of the helicopter have eluded HAL. HAL came very near bagging its first international order when it bid for the Chilean armed forces contract two years ago, but was beaten to the closing line by the US competitors.
— PTI

China to replace Japan as Asia-Pacific’s largest online shopping market
China will replace Japan as the largest online shopping market in the Asia-Pacific region in 2010,with 480 million online shoppers spending 1.4 trillion US dollars, a MasterCard survey said on Thursday. The survey, which analyzes consumer behavior in relation to e-commerce across the region, found that online shopping growth in the region is expected to increase at an annual rate of 23.3 per cent by 2011 and this growth is likely to shift from consumers in Japan to new consumer populations in China and India. ‘The rising population of upper-middle-income urban elites is likely to boost the online shopping markets in China and India significantly. Domestic consumption spending in the two countries is poised to pick up strongly, underpinned by a rapid pace of urbanization, robust economic expansion and rising spending power of urban elites,’ said MasterCard.
— Xinhua