BUSINESS

Govt urged to bust market syndicate in Ramadan

Economists, business and consumer rights leaders on Monday demanded that the government should take proper steps to crack down syndicates to keep the prices of essential commodities within the purchasing capacity of consumers in the month of Ramadan.
At a dialogue with commerce minister GM Quader, they also suggested the government to strengthen Trading Corporation of Bangladesh for making it capable to intervene into the market to keep it stable.
Private satellite channel Desh TV and Prime Bank Ltd jointly organised the dialogue at the Senate Bhaban of Dhaka University.
GM Quader said that the ministry could not find any syndicates or cartels responsible for price manipulation as the ministry lacked capacity and legal back up.
‘As we could not detect any incident of syndication, we say that there is no syndicate. But, we are continuously monitoring the market and there is a provision in the competition law to detect and punish responsible for manipulating the prices through syndication,’ he said.
He, however, admitted that there was an environment in the market for cartels and syndicates.
The commerce minister said that the prices of essential commodities, which had already gone high ahead of Ramadan, would come down in the coming days as the government would make several interventions to keep the prices within the purchasing capacity of consumers.
‘We have already opened import of eggs for all and imposed restriction on export of green chilli, onion, garlic and aubergine to bring the soaring prices down in Ramadan,’ he said.
He said that though the consumers were suffering because of exorbitant prices of commodities ahead of Ramadan, they would start to get benefits of the government’s interventions in coming days.
Quazi Faruque, president of the Consumers Association of Bangladesh, said, ‘Consumers are helpless and no one listens to them.’
‘The prices of essential commodities have increased abnormally ahead of Ramadan. So, the government should take steps to bring down the prices to the level of consumers’ purchasing capacity,’ he said.
He also emphasised on forming a strong, powerful and independent commission soon to implement competition law to ensure a healthy competition in business practices by breaking cartels and syndicates.
Federation of Bangladesh Chambers of Commerce of Industry president AK Azad suggested strengthening monitoring system and consumers’ awareness to protect their rights.
Manusher Jonno Foundation executive director Shaheen Anam said that the prices had already increased by 40 per cent though the government declared that businessmen could not make profit more than 10 per cent.
Former adviser to the caretaker government M Hafizuddin Khan, Bangladesh Krishi Bank chairman Khondkar Ibrahim Khaled and Nijera Kori coordinator Khushi Kabir, spoke, among others.
TCB chairman Sarwar Jahan Talukder, Bangladesh Tariff Commission chairman Mozibur Rahman and National Consumer Rights Protection Directorate director general Abul Hossain Mia were present.
Desh TV managing director Asaduzzaman Noor moderated the programme.

Source: The New Age

Hawker Beechcraft in sale talks with Chinese firm

A Chinese aerospace firm is in exclusive talks to buy bankrupt US aircraft maker Hawker Beechcraft.

Superior Aviation Beijing has offered $1.8bn (£1.2bn) to buy the company and to fund its operations for the next six weeks.

However, the deal is not final and is subject to a legal and regulatory review in both the US and China.

If completed, the deal would exclude Hawker Beechcraft’s defence unit due to concerns about national security risks.

Hawker Beechcraft, which filed for Chapter 11 bankruptcy in May, is still subject to an auction process and may receive more bids for its assets.

The US private jet-maker is owned by Goldman Sach’s private equity arm and Onex Corp.

Source: BBC

Alcoa posts loss on low aluminium prices

US aluminium giant Alcoa has posted a $2m (£1.3m) second-quarter loss after aluminium prices slumped to near two-year lows.

The loss compared with a $322m profit in the same period a year ago. Revenue fell 9% to $6bn as aluminium prices fell 18% from last year, Alcoa said.

But the results were still better than analysts had expected, and the firm’s shares rose 2% in after-hours trading.

The aluminium industry has had to contend with a slowing global economy.

As some European countries have slid back into recession and as economic growth slows in the US and China, some have raised concerns about demand.

But Alcoa reaffirmed its forecast that global aluminium demand would grow 7% in 2012, on top of the 10% growth seen in 2011.

“Although aluminium prices are down, the fundamentals of the aluminium market remain sound with strong demand and tight supply, and Alcoa is successfully capitalising on accelerating demand in high-growth end markets such as aerospace and automotive,” said Klaus Kleinfeld, chairman and chief executive.

Alcoa is the first member of the Dow Jones Industrial Average to report quarterly earnings.

Its performance reflects broader economic trends as aluminium is used in a wide variety of products from cars to drinks cans.

Source: BBC

Norway government ends oil and gas strike

 

Norway’s government has used emergency powers to step in and force offshore oil and gas workers back to work, ending a 16-day strike.

Production was due to be shut down from Tuesday with companies set to lock out workers in a dispute over pensions.

“I had to make this decision to protect Norway’s vital interests,” Labour Minister Hanne Bjurstroem told Reuters.

She was speaking after a last-ditch effort was made to end the row between energy companies and trade unions.

The intervention means that the National Wages Board will facilitate “forced abritration” to end the row over retirement rights. It is unclear how long this process will take.

It means there will be no lockout of the 6,500 offshore energy workers and they will carry on working as normal.

“It wasn’t an easy choice, but I had to do it,” the labour minister said.

Leif Sande, the leader of the largest trade union Industri Energi, said workers would return to work immediately.

“It’s very sad. The strike is over,” he told journalists.

Norway’s three main unions have been on strike for 16 days. The dispute is over offshore workers’ demand for the right to retire early, at 62, with a full pension.

The row centres on the elimination of a pension add-on introduced in 1998 for workers who retire at 62, three years ahead of the general age for oil workers and five years ahead of Norway’s official retirement age.

The government possesses emergency powers giving it the right to force an end to a strike if it believes that safety is being compromised or national interests are being harmed.

Oil prices had risen on Monday, before the government’s intervention, as it looked like a shutdown was nearing.

In London, Brent crude jumped more than $2 to above $100 a barrel, before dropping back slightly.

Norway, the world’s fifth largest oil exporter, has already seen its oil production cut by 13% and its gas output by 4% since the strikes began on 24 June.

OLF, the Norwegian Oil Industry Association, estimates this has cost Norway 2.9bn kroner (£300m) in lost production.

Source: BBC