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Prime Minister Theresa May's top team of ministers are increasingly convinced of the need for a transition period as Britain leaves the European Union, finance minister Philip Hammond said on Sunday. Brexit minister David Davis and his negotiating team are due in Brussels today (Monday) for a first full round of Brexit talks. "Five weeks ago the idea of a transition period was quite a new concept, I think now you would find that pretty much everybody around the cabinet table accepts that there will be some kind of transition," Hammond told the BBC's Andrew Marr show.         — Reuters....

Published at: 2017-07-17 00:00:05

The number of LPG (liquefied petroleum gas) or auto-gas filling stations across the country is expected to increase tenfold to 120 by the end of 2017 boosted by favourable policy and mounting demand, industry insiders said. The country's lone LP gas operator licence-holder -- BM Energy (BD) Ltd -- has started work on installing some 100 new auto-gas filling stations across the country by the yearend, Chief Executive Officer of BM Energy (BD) Ltd Mohammed Nurul Alam told the FE Sunday. He said agreements have already been made with 25 franchise companies who will build at least 25 new auto-gas filling stations in different places across the country. "Our firm will also build six new LPG filling stations soon," he said. BM Energy, a joint venture (JV) privately-owned company of the Netherlands and Bangladesh, got the first and lone licence in Bangladesh in April under a new policy to install 400 LPG filling stations across the country. Under the terms of the licence, the JV company has the authority to import, produce, storage, transport and supply of LPG to households, commercial and industrial clients through engaging dealers or franchises. The firm will also be able to set up LPG terminals, auto-gas conversion plants and LPG bottling plants. It would also be able to export bottled LPG or LPG in bulk quantity after attaining no-objection certificate (NOC) from the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPMER). "Currently, we are the largest importer of LPG in Bangladesh and import around 10,000 tonnes of LPG per month," Mr Alam said.   BM Energy imports LPG from spot markets of different countries including Singapore, Vietnam, the Maldives, he added. The firm has a 6,500-tonne LPG storage capacity, which is 1,500 tonnes higher than the government's requirement for doing LPG business, Mr Alam said. The use of LPG as auto fuel started in Bangladesh in 2005 with a single LPG fuelling station installed by a privately- owned LPG firm and since then the total number of LPG fuelling stations reached 12, he added.   The use of LPG as an auto fuel is on the rise in Bangladesh due to its growing cost-effectiveness compared to petrol and octane, he said. The pump price of diesel is Tk 65 per litre while petrol and octane prices are Tk 86 per litre and Tk 89 per litre, respectively while CNG price is Tk 40 per cubic metre. LPG is now being sold at Tk 50 per litre at pumps. Country's petroleum product and CNG (compressed natural gas) sellers have welcomed the entrance of LPG as auto fuel in the country's market. "We will be happy to sell LPG from our pump stations after installing required machine and equipment once the use of fuel grows," convener of Bangladesh Petrol Pump and Tank-Lorry Owners-Workers Unity Council Nazmul Haque told the FE Sunday. He said, "Many of us have already shown interest to install auto gas filling stations," he said. The country currently has around 4,800 pump stations from where gasoil and gasoline are being sold to retailers. "It will be an added product in our selling portfolio," said general secretary of Bangladesh CNG Filling Station and Conversation Workshop Owners Association Farhan Noor, pointing to sell of LPG as auto gas. Currently, there are some 580 CNG refuelling stations across the country, he added. Bangladesh's LPG market is import-oriented as more than 90 per cent of total requirements is met through imports, Deputy Secretary of EMRD Akramuzzaman said. Demand for LPG in the country has seen a strong growth since 2016 due to prolonged suspension of piped natural gas connections and growth in the use of LPG as an auto fuel, he added. Bangladesh's LPG demand in 2016 was around 0.4 million tonnes, up 33 per cent from 0.3 million tonnes a year earlier, and the government forecasts LPG consumption to increase further to 0.5 million tonnes in 2017. State-owned LP Gas Ltd, a subsidiary of Bangladesh Petroleum Corporation (BPC), produces only 20,000 tonnes of LPG annually. More than half a dozen private companies including BM Energy, Laugfs Gas, Omera Petroleum, Totalgaz, Bashundhara, Jamuna Spacetech and Linde --import a combined 480,000 tonnes. Mr Akramuzzaman said there has been growing interest in securing government licences to install new LPG stations and conversion workshops as several players are willing to establish a strong foothold in the growing market. "We received applications for around 1,000 LPG re-fuelling stations," he said. Azizjst@yahoo.com....

Published at: 2017-07-17 00:00:05

The government formed a high-level committee to finalise the draft amendments to labour-and EPZ laws accommodating all labour-rights issues raised by western stakeholders, failing which Bangladesh's European GSP may also be at risk.            As per a recipe coming from last month's International Labour Conference (ILC), the government has to remake the laws within a timeframe set by the meet, officials said. Headed by the principal secretary of Prime Minister's Office (PMO), the committee will coordinate the functions of two separate technical committees working to prepare the drafts of the recast Bangladesh Labour Act and the Export Processing Zones (EPZ) law, they added. "The committee, led by PMO's principal secretary, is to ensure the amendments to the BLA and EPZ labour laws by the promised deadline made in the last ILC," Commerce Minister Tofail Ahmed told reporters Sunday after an inter-ministerial meeting. According to the commitment the draft of the amendments has to be sent to the ILO (International Labour Organisation) by August 31, he added. A Bangladesh delegation led by Law Minister Anisul Huq made commitments at the International Labour Conference held in Geneva last month that the country would address all the labour-rights-related concerns raised by the ILO. The government meeting decided to fulfill the commitments in time, he said, adding that the draft of amendments to the BLA and EPZ labour laws would be finalised within August and be adopted by November 30 next. The commerce minister presided over the meeting, attended by law minister Anisul Huq, state minister for labour Md Mujibul Haque, PMO principal secretary Kamal Abdul Naser Chowdhury and senior secretary Suraiya Begum, senior secretary for legislative and parliamentary affairs Mohammad Shahidul Haque, commerce secretary Shubhashish Bose, labour secretary Mikail Shipar, senior officials of Bangladesh Economic Zones Authority (BEZA) and Bangladesh Export Processing Zones Authority (BEPZA) and leaders from Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). A 'special paragraph' was adopted for Bangladesh in the 2015 ILC, recommending, among others, amendments of the labour law and the EPZ law to ensure freedom of association and collective bargaining in line with ILO convention.   It also suggested investigating all the alleged acts of anti-union discrimination without delay. Following the government's time-bound action plan and commitments to addressing the ILC's recommendations, the last ILC made the same recommendations without putting them in the 'special paragraph', according to officials. The European Union and other Sustainability Compact Partners in their last review meeting also pressed for addressing the ILC recommendations, in the wake of various developments in the country's main export industry.     And the EU warned Bangladesh of temporary withdrawal of generalized scheme of preferences (GSP) on the European market if the country failed to address the labour-rights-related issues.   Some labour rights issues and tragic workplace accidents had earlier led to suspension of GSP facility for Bangladesh on the US market. The sustainability deals and moves for streamlining the readymade garment sector were kicked off following those developments-and western coalitions of buyers and labour lobbies are active in this matter.             munni_fe@yahoo.com....

Published at: 2017-07-17 00:00:05

Though Bangladesh is one of the 29 countries included in the MSCI Frontier Market Index, the country’s share is nominal in the index. The index includes 116 constituents or listed companies, covering about 85 per cent of the free float-adjusted market capitalisation in each country. The index is created by Morgan Stanley Capital International (MSCI). The latest monthly review of the index showed that Argentina occupied highest 20.22 per cent weight of the index Kuwait (17.32 per cent), Vietnam (10.14 per cent), Nigeria (8.64 per cent) and Morocco (8.24 per cent).  The rest 24 countries including Bangladesh occupied 35.44 per cent of the index, combined.   ....

Published at: 2017-07-17 00:00:05

Asian stocks mostly rose on Monday, spurred by record high closes for the Dow and S&P 500 on bets that the Federal Reserve's policy will remain accommodative following lackluster US data, which sent the dollar reeling to a 10-month low. Chinese stocks fell over 2 per cent in early trade but recouped some of the losses after data showed the economy grew at a slightly faster than expected pace of 6.9 per cent in the second quarter thanks to robust industrial output and retail sales. The CSI 300 was 0.7 per cent lower, and the Shanghai Composite was down 1.1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2 per cent on Monday. Japanese markets were closed for a holiday. Australian shares were 0.3 per cent lower, while South Korea's KOSPI jumped 0.3 per cent. Wall Street closed higher on Friday, after data showed consumer prices were unchanged in June and retail sales fell for a second straight month, pointing to tame inflation and subdued expectations of strong economic growth in the second quarter. The chances of a rate hike in December fell to 43.1 per cent after the data came out from 55 per cent late Thursday, according to the CME Group's Fedwatch tool. The dollar index, which tracks the greenback against a basket of trade-weighted peers, hit a 10-month low early on Monday. It was trading flat at 95.156 after losing 0.6 per cent on Friday. "Friday’s US data led to more  USD selling," Stephen Innes, senior trader at OANDA, wrote in a note. "With less than a 50 per cent December rate hike probability priced in, and with no supportive Fed speak on the calendar before July 26th, the dollar could struggle." US 10-year Treasury yields, however, which fell to as low as 2.279, recovered to end at 2.3319 per cent on Friday. The dollar was also steady at 112.55 yen early on Monday, after closing down 0.6 per cent on Friday. The Bank of Japan is expected to keep its monetary policy settings unchanged when it meets on Wednesday and Thursday. The weakness in the dollar saw other currencies soar, with the Australian dollar hitting its highest level in over two years and the Canadian dollar touching a one-year high early on Monday. The Aussie was trading 0.2 per cent lower than its Friday close at $0.7813, following a 1.3 per cent surge, and the loonie was 0.1 per cent weaker at C$1.2654 to the dollar, retaining Friday's 0.6 per cent jump. The euro slipped slightly to $1.14615, but remained close to its highest in a year hit last week, after gaining 0.6 per cent on Friday. In commodities, oil inched higher, extending last week's gains on signs of lower US inventories and higher Chinese demand. US crude rose 0.25 per cent to $46.67 a barrel. Global benchmark Brent added 0.3 per cent to $49.07. The dollar's loss was gold's gain, with the precious metal rising on Friday. Spot gold was 0.2 per cent higher at $1,231.01 an ounce.   ....

Published at: 2017-07-17 00:00:05