Amazon reports 96% fall in Q2 profit on robot deal

BBC, 27 July 2012

The online retailer Amazon has reported a 96% fall in profits to $7m (£4.5m) for the three months ending in June, down from $191m a year earlier.

The company blamed the fall on a $65m loss from its purchase of robot-maker Kiva systems earlier this year.

Sales rose 29% to $12.8bn, slightly lower than analyst predictions.

The company also blamed the strong dollar, which made its products more expensive in Europe and other key markets, for the drop in earnings.

Amazon also warned it would make a loss of between $50m and $350m in the current three month period.

Amazon agreed to buy Kiva Systems, which makes robot technology to automate warehouses, for $775m in March.

It hopes the technology will eventually boost its productivity and profitability.

Amazon’s shares rose 1.2% in after-hours trading following the release of the results.

Samsung Electronics’ 2Q Profit Jumps 48 Percent

AP, 27 July 2012

Samsung Electronics said its second quarter profit rose 48 percent over a year earlier as customers flocked to get Galaxy smartphones in the absence of competitors.

The South Korean firm said Friday its net profit reached 5.2 trillion won ($4.5 billion) in the April-June quarter on revenue of 47.6 trillion won.

The earnings figure was a 3 percent rise from the previous quarter but was lower than a market consensus of 5.6 trillion won.

Samsung said its operating profit reached 6.7 trillion won, matching its guidance earlier this month.

Samsung said its mobile business that makes the Galaxy S3 smartphone was responsible for more than 60 percent of its operating profit, helping the firm outdo rivals even at one of the most challenging times for the global tech industry.

British finance minister fighting for survival: press

AFP, 26 July 2012

British finance minister George Osborne must urgently form a plan to rectify the country’s recession-hit economy after it shrank alarmingly in the second quarter, the country’s press said on Thursday.
The under-pressure chancellor has to decide immediately whether to stick to his fiscal austerity drive or loosen the purse strings in order to stimulate the economy, which contracted by 0.7 per cent in the second quarter.
‘Osborne reeling as economy enters the disaster zone,’ said the Guardian, a proponent of public spending.
‘The economic model inherited by the coalition was severely rickety… but the promises from (prime minister David) Cameron and (deputy prime minister) Nick Clegg that they would ‘rebalance’ the economy have come to naught,’ said its editorial.
‘Economic conditions for Britain are unlikely drastically to improve any time soon; and Mr Osborne gives no indication of having a plan to face the coming squall,’ it added.
The worse than expected downturn came on the back off steep falls in the construction and manufacturing sectors.
The centre-right Times said the government had a ‘few months’ to decide whether to adjust its plans.
‘The task now is different and even more difficult than the one the coalition inherited two and a half years ago,’ argued its leading article.
‘It requires the Government to revisit all the assumptions that lie behind its economic policy and, casting aside short-term political considerations, to set out a plan that retains confidence in the
public finances but also finally offers a meaningful agenda for growth,’ it concluded.
The pro-Conservative Daily Telegraph splashed ‘Osborne under attack as recession deepens’ across its front page.
Commentator Iain Martin warned Osborne had six months to rectify the economy or face dire consequences.

Nissan’s profit down 15pc

AFP, 26 July 2012

Nissan on Thursday posted a 15 per cent drop in quarterly profit as a strong yen and weak European market dented earnings, but Japan’s second-biggest automaker said its full-year forecast was on track.
Nissan, part-owned by France’s Renault, has announced plans to release 10 new products globally over the year as it locks horns with global heavyweights General Motors, Toyota and Volkswagen.
But Japan’s automakers have been hit hard by the value of the yen, which remains near record highs reached last year against the dollar, making their vehicles relatively more expensive overseas and shrinking foreign income.
On Thursday, Nissan said its business in the debt-hit European market took a beating, with sales down 1.7 per cent.

MINIMUM PAID-UP CAPITAL REQUIREMENT BB extends time for 13 failed NBFIs

New Age, 27 July 2012

The non-bank financial institutions which failed to raise their minimum paid-up capital to Tk 100 crore by the June 30 deadline would face merger with other NBFIs if they fail to meet the requirement by December 31, said Bangladesh Bank officials.
The BB, however, gave different timeframes for different NBFIs to fulfil the requirement.
An official of BB told New Age that the central bank had extended the deadline for the 13 failed NBFIs after holding discussions with them one-to-one basis.
He said the BB would not issue any circular in this regard.
He said, ‘The December 31 deadline will not be applicable to all the 13 NBFIs. The BB has given some of them two to three months from the date of June 30 for fulfilling the requirement. We have considered new timeframe case-to-case basis.’
The central bank will take stern action against the NBFIs which will fail to increase their paid-up capital within the extended deadline.
‘In case of failure, they will have to be merged with other NBFIs,’ he said.
In July 2011, the BB had asked the NBFIs to raise their minimum paid-up capital to Tk 100 crore within June 30, 2012 to implement the Basel programme in this sector.
The NBFIs which failed to increase their paid-up capital by the deadline included Bangladesh Finance and Investment Company, Bangladesh Industrial Finance Company, FAS Finance and Investment, First Lease Finance and Investment, GSP Finance Company, Islamic Finance and Investment, MIDAS Financing, National Housing Finance and Investment, Hajj Finance Company and Reliance Finance.
BB officials could not confirm immediately the name of the three remaining failed NBFIs.
There are some 31 NBFIs operating in the country.
Asad Khan, president of the Bangladesh Leasing and Finance Companies Association, told New Age that they hoped that most of the failed NBFIs would be able to increase their paid-up capital within December.
He said the central bank had earlier suggested that the NBFIs which would fail to increase their paid-up capital within the BB deadline could go for floating initial public offering at the capital market to raise their capital.
Five NBFIs applied to the Securities and Exchange Commission for issuing their IPOs and they are waiting for the regulators’ approval, he said.
Under the circumstances, the fulfilment of the BB requirement will depend on the SEC decision, he said.
Asad Khan, also managing director of Prime Finance, said, ‘The BB is the highest authority in this regard. So, if it wishes, it can take stern action against any failed institution.’
Existing liquidity crisis in the financial sector and negative situation at the capital market have also hit the operation of the NBFIs, said another BB official.
He said the central bank would help the failed NBFIs so that they could increase their paid-up capital as early as possible.

Bulk power price Govt insists on 60pc increase

New Age, 27 July 2012

The government persistently keeps pressuring the Bangladesh Energy Regulatory Commission to increase the bulk power price by at least 60 per cent at one go to avoid any further hike at the fag end of its five-year tenure, said officials.
The government fears mass discontent due to further hike of the price of power in 2013, which might have an adverse impact on its prospects in the next general elections, said a BERC official.
BERC planned to raise the bulk price of electricity by around 30 per cent in response to a revised proposal submitted by the Power Development Board for enhancing the price by around 35 per cent, said the official.
He said they had to defer a press briefing, which was scheduled on Thursday afternoon, on increasing both the bulk and retail prices of electricity as a technical committee was ‘busy’ accommodating the government’s adjuration to raise the prices once only.
BERC’s chairman Syed Yusuf Hossain told New Age, ‘We thought that we would complete the calculation for formulating the new price chart in the scheduled time, but we need a few more clarifications on the PDB’s revised proposal.’
Apart from this, the BERC was thinking of increasing the number of slabs (each slab will have different prices of power) of electric bills for domestic consumers in order to rationalise billing, he said.
When asked about the government’s adjuration not to raise electricity prices in 2013, Yusuf said that they were aware of the issue.
‘We are working out the new price chart after considering all these issues, and it needs time,’ he said.
The BERC will announce the new electricity prices chart ‘as soon as possible’, the chairman added.
The BERC will raise the retail prices of electricity along with the bulk price by issuing an interim order as it is yet to hold a public hearing on the proposals of the power distribution agencies so that they can avoid losses.
He said that the BERC would restructure the slabs of electricity bills for domestic consumers, dividing them into six categories instead of three to four now under different power distribution agencies.
On June 6, the PDB proposed that the BERC allow it to increase the bulk price of electricity to Tk 6.03 a kilowatt-hour (unit) from Tk 4.02, and also give it Tk 3,684 crore in subsidy with effect from July 1.
Following the PDB’s proposal, the BERC asked the distribution agencies to submit their proposals for fixing retail rates of electricity in accordance with the 50 per cent hike in the bulk rate so that they can avoid losses.
The distribution agencies sought 50-57 per cent increase of the retail prices of power.
BERC’s technical committee, during the public hearing on the proposal on July 15, suggested that they raise the bulk price by 21.89 per cent with Tk 3,700 crore in subsidy.
After the public hearing, BERC asked PDB to revise its proposal by decreasing the power generation target of fuel-oil powered plants in fiscal year 2012-13 to bring about a balance between how much subsidy needs to be provided and how much the consumers can pay.
The PDB, in its revised proposal, cut down the electricity generation of fuel-oil powered plants to 47 per cent on average from the initially planned 80 per cent to reduce production cost.
According to the revised proposal, the cost of electricity generation will be decreased to Tk 6.42 a kilowatt-hour (unit) from Tk 6.87.
But, in that case, BERC will have to raise the electricity price further in 2013 to adjust the increasing generation cost with the sales price as PDB will have to increase power generation by the fuel-oil powered plants to meet the growing demand for electricity in the coming year, said a BERC official.
The BERC, from February 2011 to March 2012, has already increased the bulk power prices by 69.6 per cent on an average — from Tk 2.37 a unit to Tk 2.63 with effect from February, then to Tk 2.80 from August, then to Tk 3.27 from December 2011 and then to Tk 3.74 from February 2012, and then again to Tk 4.02 a unit from March.
After increasing the bulk power prices, the BERC has also increased retail prices by 33 per cent on an average — from Tk 4.0 a unit to Tk 5.32 in 14 months.
The average cost of electricity generation shot up to Tk 6.42 a unit from Tk 2.63 after fuel-oil powered plants of around 2,000 megawatt capacity started electricity generation from the end of 2010.

Garment owners to clear salaries, bonus of workers before Eid

Financial Express 27 July 2012

Garment manufacturers have agreed to clear salaries, festival bonus and other financial benefits of the workers before the upcoming Eid-ul Fitr to avoid any unrest of labours.

The apparel makers made the assurance during a meeting at the Home Ministry Thursday where high-ups of the labour and home ministries and representatives from workers’ groups in the garment industry were also present.

Home Minister Sahara Khatun presided over the meeting arranged by the Cabinet Committee on Law and Order to find way outs to avoid possible unrest in the RMG sector and traffic congestion before the biggest religious festival of Muslims.

The country’s highest foreign currency earners also assured the minister that they will take immediate measures so that no factory would be shut or no incident of worker termination take place during the happy occasion.

After emerging from the meeting, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shafiul Islam Mohiuddin told the reporters that all kinds of payments, including wage and festival bonus, will be paid within a stipulated time.

“We’ve already instructed all the factory owners regarding the matter to ensure smooth law and order situation in the apparel industrial hubs,” he said.

President of the country’s apex apparel body also sought intervention of the minister to keep the commercial banks open on the holidays as well as a day before the Eid festival.

International secretary of Jatiyo Sramik Federation Bangladesh Quamrul Ahsan, who took part in the meeting, told the FE that the manufacturers promised to clear the workers’ salary before August 15.

“Festival allowances and other financial benefits like overtime bills to be paid within August 18 to ensure peaceful Eid celebration by workers,” he added.

Sahara Khatun ordered the industrial police force to step up its vigilance at the apparel industrial parks to stem any possible incident of violence.

Director General of Industrial Police Abdus Salam said they have called upon the owners to stay at the factory office during Ramadan so that they can instantly communicate with them if there is any possibility of unrest.

The parliamentary committee also decided to open one or more control rooms comprising representatives of the police, transport workers, fire brigade, Titas Gas, power department and the Ministry of Labour to ensure smooth traffic movements on the highways.

State Minister for Home Shamsul Haque Tuku, Home senior secretary CQK Mustaq Ahmed, governing representatives of BGMEA and BKMEA, senior police and intelligence officials were also present at the meeting.

Govt to change vehicle age counting system

Financial Express, 27 July 2012

The government has initiated a step to change the existing vehicle age counting system to bring a uniform way so that old vehicles can be phased out from the city streets.

The Ministry of Communications (MoC) held a meeting in this connection last week with officials concerned to discuss changing the counting system and problems of the existing system.

Senior assistant secretary of the MoC Zinnath Rehana said the ministry has initiated the step, as in the present system age of a vehicle is counted as per the date sealed on its chassis.

The ministry received allegations that a section of unscrupulous businessmen import old cars by refurbishing the chassis date.

Besides, the Bangladesh Road Transport Authority (BRTA) counts car age according to the date of registration with the authority.

“The ministry wants to count the age of a car from the date of its registration with the BRTA. Besides the age would be deducted in case of registration of used cars,” Rehana added.

A high official of the BRTA said the authority is facing difficulty in phasing out old cars from the city due to duplication of the age counting.

“When policemen seize a vehicle on the ground of old age, sometimes the owner releases it on the excuse of registration dilemma,” the official added.

The BRTA has recently identified about 14,546 vehicles, including 1,250 buses, 8,125 trucks and 2,365 minibuses, which ply the city roads unauthorised.

The BRTA also identified that 80,615 private cars have no fitness certificate. The number of registered vehicles in the city is about 5,00,000 as per the calculation of the Dhaka City Corporation’s (DCC) traffic department.

Presently, the capital’s paved roads, 1,238 kilometres in length, have been facing mounting pressure of a large number of vehicles of various types, and cannot accommodate those which cross the city from other parts of the country, the BRTA official said.

Former caretaker government adviser Akber Ali Khan said the government can curb the growth in number of vehicles in a city, seriously affected by gridlock, by imposing additional levy on persons who have more than one car.

He said the ministries concerned can impose increased income tax as well as registration and fitness certificate fees on them.

EPB team visiting Africa to explore investment scopes

Financial Express, 27 July 2012

A delegation of Bangladesh Export Promotion Bureau (EPB) is now visiting a number of African countries to explore new areas of investment and export, officials said Thursday.

The delegation has already visited Liberia and Ghana, and is expected to visit Senegal and Cote d’Ivoire in the next couple of days to interact with the businesses of those countries.

The team, led by EPB vice-chairman Shubhashish Bose, Wednesday met leaders of the Ghana Chamber of Commerce and Industry (GCCI) to boost trade and investment between Bangladesh and the African country, the officials said.

“It is the first trip of the EPB to explore new export destinations and investment spots in the African continent,” a senior official at the Ministry of Commerce (MoC) told the FE.

Ghana has political stability and an ideal atmosphere for investment and export from Bangladesh.

The EPB delegation apprised the GCCI members that the African countries, especially Ghana, would be benefited, if their mutual trade increases with Bangladesh, a least developed country but seen as a gateway to Asia for its ideal location.

The delegation told the GCCI that Bangladesh, as the second largest garment exporter of the world, can meet the apparel demand of the African nation.

The EPB team members also informed the Ghanaian traders that besides garment products Bangladesh also exports leather products and other goods, fetching some $23 billion in aggregate a year.

The European Union, the US and Canada are traditional export destinations of Bangladesh.

“We call on Ghana to take advantage of all that we produce in Bangladesh, including pharmaceutical products, to boost cooperation between the two countries,” the EPB vice-chairman told the GCCI.

Following the interaction the GCCI advised the EPB to set up a consulate in Ghana.

“We hope you will do well by establishing a consulate here, as it would go a long way in fostering smooth trade between Bangladesh and Ghana,” said Prosper Adabla, GCCI first vice-president.

In Liberia the EPB delegation announced that Bangladeshi entrepreneurs are interested to invest in the African country.

“Both private and public sectors of Bangladesh are interested to invest some $3.0 million in Liberia, mainly in pharmaceutical sector,” the EPB vice-chairman told reporters in Monrovia Monday.

Mr Bose claimed that Bangladesh’s pharmaceutical products and its system of packaging are of world standard, and the products are exported to the developed countries.

He informed the traders in Monrovia that in 2010, the total size of the Bangladeshi pharma market was estimated at $1.2 billion, and it is now growing at a steady rate.

“Pharmaceutical sector is the second highest contributor to the public exchequer and the largest white collar labour-intensive employment sector of Bangladesh,” the MoC official quoted Bose as telling Assistant Minister for Industry of Liberia Sei W Gahn.

In response Mr Gahn expressed hope that the Bangladeshi high quality pharmaceutical products would be useful for the Liberian people.

JS body for removing syndicates in Milk Vita

Financial Express, 27 July 2012

A parliamentary watchdog Thursday observed that numbers of syndicates comprised of workers and officials of Bangladesh Milk Producers’ Cooperative Association popularly known as Milk Vita, have made hostage the sate-run cooperative for milk production which sells milk at a price higher than the price fixed by the cooperatives.

The parliamentary standing committee on the Ministry of Local Govern-ment, Rural Develo-pment and Cooperatives at a meeting asked the government to remove these syndicates to bring transparency to Milk Vita Cooperatives Union Ltd, which supplies the major portion of processed milk for the consumers.

“At least three syndicates are responsible for most irregularities in Milk Vita,” said London Rahmat Ali, chairman of the committee, adding, these groups have brought the cooperative on the verge of collapse.

Without mentioning the names of the gangs, he suggested termination of the employees and officials involved in the racket.

The ministry informed that it had formed a three-member committee by this time to investigate alleged irregularities in Milk Vita.

“We may launch investigation on our own if the ministry’s probe seems unsatisfactory,” Lawmaker Rahmat Ali told reporters at his office.

Recent price hike of pasteurized milk was criticised in the meeting. It asked the government to monitor the price to ensure fair price for the consumers, especially during the month of Ramadan.

State minister for local government Jahangir Kabir Nanak, committee members Abul Khayer Bhuiyan, Ashraf Ali Khan, Monowar Hossain and AKM Mostafizur Rahman, among others, attended the meeting.

It was decided in the meeting that it will follow up the investigation committee’s activities.

Some of the lawmakers attending the meeting alleged that supply of processed milk is inadequate in the capital and asked the authorities concerned to increase supply.