United News of Bangladesh

Kevin Hassett, a top contender for President Donald Trump’s pick for Federal Reserve chair, said Sunday that while he would share the president’s views with Fed officials, the central bank could reject them when setting interest rates. In an interview on CBS News’ “Face the Nation,” Hassett said he would continue consulting with Trump if appointed, but when asked whether the president’s opinions would carry “equal weighting” with the Fed’s interest-rate committee, he replied, “No, he would have no weight.” “His opinion matters if it’s good, if it’s based on data,” Hassett said. “If you go to the committee and say, ‘the president made this argument and it’s sound,’ but they reject it, then they’ll vote differently.” Trump is reportedly finalizing interviews with candidates to replace current Fed Chair Jerome Powell, whose term ends next May. The president has emphasized that he wants a nominee who will sharply reduce the Fed’s key rate from around 3.6% to 1% or lower, a position few economists share. Trump’s public commentary has renewed concerns about the Fed’s political independence, traditionally respected by presidents of both parties. Luxury car sales slide in China as economic slowdown hurts European automakers Hassett stressed that the Fed’s independence would remain intact under his leadership. “In the end, it’s a committee that votes,” he said. “I’d be happy to talk to the president every day until both of us are dead because it’s so much fun.” Trump has also expressed interest in Kevin Warsh, former Fed governor, as a potential replacement for Powell, calling both Warsh and Hassett “great.” Source: AP 

The Bangladesh Private Cable System (BPCS) Consortium has signed an agreement with Nokia for the supply of Submarine Line Terminal Equipment (SLTE), marking a significant milestone in the country’s first private-sector submarine cable project linking Cox’s Bazar and Singapore. The agreement was signed on Sunday night at a ceremony held at a city hotel. On behalf of the BPCS Consortium, the agreement was signed by Aminul Hakim, Chief Executive Officer of Metacore Subcom Ltd; Arif Al Islam, Managing Director and CEO of Summit Communications Ltd; and Md Mashirur Rahman, CEO of CDNnet Communications Ltd. Representing Nokia were Prashant Malkani, Head of Sales Unit, Nokia India, and Suman Prasad, Senior Sales Account Director of Nokia. Also present at the event were EU Ambassador Michael Miller, Finnish diplomat in India Annti Herlevi, Japanese Embassy representatives Daisuke Sugawa and Mami Kobayashi, along with senior officials from Nokia. Consortium members said Bangladesh’s current bandwidth usage stands at around 9,000 Gbps, which is expected to rise to approximately 20,000 Gbps by mid-2027 and nearly 50,000 Gbps by 2030. To meet this growing demand, the three private submarine cables are becoming essential. Entrepreneurs have already invested around Tk 600 crore, with plans to spend an additional Tk 1,200–1,300 crore to launch a three-pair cable after June 2026. They noted that more than 60 percent of Bangladesh’s bandwidth currently comes via international terrestrial cables from India, resulting in a significant outflow of foreign currency. Once the Singapore–Cox’s Bazar three-pair cable becomes operational, dependence on India will be reduced, moving the country toward bandwidth self-sufficiency. Nokia’s SLTE technology will enable lower power consumption, reduced space requirements, improved network management, and enhanced cybersecurity at both cable landing stations, potentially lowering bandwidth costs and internet prices for consumers in the future.

Bangladesh's Readymade Garment (RMG) exports saw near-stagnant growth in the first five months of the current fiscal year, clocking in at US$ 16.13 billion for the July–November period of FY 2025–26, an increase of only 0.09 percent over the corresponding period last year. Data released by the Export Promotion Bureau (EPB) highlights mixed fortunes across key global markets, with a challenging environment in the largest export destination, the European Union (EU), and a notable decline in non-traditional markets. The slowdown in overall export growth is primarily attributed to a contraction in demand from the EU, which remains the single largest market for Bangladesh's apparel. European Union (EU): Exports to the EU, which holds a 48.57 percent share of total RMG earnings, reached US$ 7.83 billion. However, this figure represents a year-on-year negative growth of -1.03 percent, signaling softening demand from the major bloc. United States (USA): Maintaining its position as the second-largest market, the USA provided a crucial source of growth. Exports amounted to US$ 3.22 billion (19.98 percent share), registering a 3.06 percent year-on-year increase. UK and Canada: Both markets showed positive momentum, with the United Kingdom reporting US$ 1.85 billion (11.46 percent share) with a 3.00 percent growth, and Canada achieving US$ 554.47 million (3.44 percent share) with a robust 6.51 percent year-on-year rise. Concerns are rising over the performance in emerging destinations. Exports to non-traditional markets, critical for strategic diversification, collectively saw a decline of -3.19 percent over the five-month period. "The struggle in traditional markets, coupled with a decline in non-traditional territories, underscores the urgent need for a renewed focus on market diversification and enhancing value-addition in our products," a sector analyst noted. The Woven vs. Knit Divide: Even within the factories, the experience is varied. The Woven segment, which produces higher-value items like shirts and trousers, managed a slight growth of 1.44 percent. This means the tailors and cutting masters specializing in these products are relatively safer. The Knitwear segment (T-shirts, sweaters), however, saw a contraction of -1.00 percent. Since Knitwear often relies on high-volume, quick-turnaround orders, this decline suggests that casual consumer spending is tightening, leaving factory workers here facing greater instability. The marginal overall growth of 0.09 percent indicates a period of stagnation for the RMG sector, the country's economic backbone, as manufacturers navigate global headwinds and challenging price negotiations.  

Bangladesh’s stock market began the week on a bearish note on Sunday, with key indices falling on both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE), as prices declined for the majority of listed companies. On the DSE, the benchmark DSEX shed 30 points, while the Shariah-based DSES fell by 6 points and the blue-chip index DS30 dropped 11 points. Out of the traded issues, prices declined for 249 companies, advanced for 79 and remained unchanged for 63. Block market transactions amounted to Tk 16.50 crore involving shares of 29 companies, with Orion Infusion Limited accounting for the highest turnover at Tk 3.90 crore. The total turnover on the DSE stood at Tk 457 crore, down from Tk 463 crore in the previous session. Prime Finance First Mutual Fund topped the gainers’ list with a 10 percent rise, while Zeal Bangla Sugar Mills Ltd was the worst performer, losing nearly 10 percent. The CSE also witnessed a downturn as its overall index CASPI lost 25 points. Of the traded issues, prices fell for 80 companies, rose for 74 and remained unchanged for 19. The turnover on the CSE stood at Tk 12 crore, compared to Tk 13 crore in the previous session. SK Trims and Industries Ltd emerged as the top gainer on the CSE with a 10 percent rise, while Usmania Glass Sheet Factory Ltd ended as the top loser, shedding nearly 10 percent.

The country’s stock markets witnessed mixed movements in the first half of trading on Sunday, with key indices fluctuating at both the Dhaka Stock Exchange (DSE) and the Chattogram Stock Exchange (CSE). At the DSE, the benchmark index DSEX edged up by 1 point. The Shariah-based DSES, however, remained unchanged, while the blue-chip DS30 index shed 3 points. During the period, prices of 198 companies advanced against declines in 104 issues, while 81 securities remained unchanged. The turnover at the DSE crossed Tk 230 crore in the first half of the session. DSEX falls, CSE gains in Bangladesh capital market Meanwhile, the CSE saw a positive trend, with its overall index gaining 20 points. At the port city bourse, the share prices of 58 companies rose, while 28 declined and 14 remained unchanged. The total turnover at the CSE stood at over Tk 4 crore in the first half of trading.

Demand for foreign luxury vehicles in China is weakening as buyers increasingly turn to lower-priced domestic brands that offer generous discounts and advanced technology, dealing a blow to European automakers long dominant in the premium segment. A prolonged downturn in China’s property sector has dampened consumer confidence, curbing appetite for expensive purchases. At the same time, wealthy buyers are becoming more cautious about openly displaying affluence, analysts say. Government trade-in subsidies of up to 20,000 yuan for electric and plug-in hybrid vehicles have further pushed consumers toward cheaper models, most of which are produced by Chinese manufacturers. Coca-Cola names longtime executive as next CEO According to S&P Global Ratings, slowing economic growth is a major factor behind falling demand for premium cars such as Mercedes-Benz and BMW. After rising steadily for years, premium vehicles’ share of China’s auto market has begun to decline, dropping to 13% in the first nine months of 2025. Chinese automakers, led by companies such as BYD, have gained ground through rapid innovation and aggressive pricing, even in the higher-end segment. Their market share has climbed to nearly 70% this year, while German, Japanese and U.S. brands have lost momentum. European luxury brands have reported sharp sales declines in China, and the downturn has also driven down prices in the used luxury car market, reflecting broader caution among consumers facing an uncertain economic outlook. Source: AP 

Leaders in Bangladesh’s spinning industry on Thursday urged the government to take immediate measures to protect the sector from what they described as a “deepening crisis,” which has already forced nearly 40% of factories to shut down and rendered more than 100,000 workers jobless. "We have international quality, qualified manpower and capacity to ensure full support to the garment sector. If the government fails to take immediate action, we will take to the streets to restore," he said. The appeal came at a press conference in Dhaka, where Salma Group CEO Azhar Ali presented a set of proposals on behalf of workers, employees and officials associated with the spinning sector. Industry representatives said the spinning sector — a key backward linkage to Bangladesh’s apparel industry — has been struggling for years due to Covid-19 fallout, the Russia-Ukraine war, dollar shortages, and sharp hikes in fuel and energy prices. Rising production costs and declining competitiveness have pushed many factories to the brink of closure, they said. Speakers said that due to prolonged challenges, around 40% of spinning mills have halted production, while the remaining factories are operating at 50–60% capacity because of reduced access to imported raw materials and rising operational expenses. They warned that unless urgent steps are taken, more factories may be forced to suspend operations, affecting the livelihoods of several hundred thousand people directly and indirectly dependent on the sector. The sector placed five major proposals for the government’s immediate consideration: Restore and expand export incentives The government previously reduced the 5% export incentive for the garment sector to 1.5%. Leaders demanded reinstating the earlier rate and introducing a 10% cash incentive for exporters using locally produced yarn. They also called for a 10% safeguard duty on imported yarn to protect domestic producers.   After energy prices rose by up to 350% in three phases, production costs increased sharply. The sector demanded a 30% rebate on gas and electricity bills for all export-oriented factories for at least two years. Industry representatives said subsidized yarn from exporting countries is entering the domestic market at prices lower than local production costs. They urged the Ministry of Commerce to impose anti-dumping or safeguard duties. They cited the example of Indonesia’s KPPI, which recently announced safeguard duties on cotton yarn for three years (45 cents per kg in the first year, decreasing gradually). The spinning sector demanded reinstatement of the Bangladesh Bank’s Export Development Fund (EDF) facility — previously worth around $8 billion — for the next two years to support backward linkage industries. They also urged the government to require export-oriented industries to source at least 70% of raw materials domestically. Additionally, the sector sought an additional 5% incentive for recycled and sustainable yarns, along with 10-year loans at 5% interest for modernizing machinery. They asked for increasing import capacity for raw materials. Due to the depreciation of the taka, raw material import capacity has declined by around 40%, they said. The industry requested measures to increase import limits so factories can return to full production. Mohammad Shahinul Haque, speaking on behalf of workers and industry personnel, said the spinning sector is vital for Bangladesh’s export competitiveness and deserves urgent policy support. He said the sector is hopeful that the government will “take the matter seriously and act promptly to prevent further deterioration.”

Speakers and policy makers in a seminar on Thursday warned that Bangladesh's economic stability remains severely threatened without the immediate establishment of a credible bank resolution regime. The warning was issued from a seminar hosted by the Policy Research Institute of Bangladesh (PRI), with support from the Foreign, Commonwealth & Development Office (FCDO), titled "Bank Failures and Resolution Regime: Understanding the Challenges for Bangladesh". Lutfey Siddiqi, Special Envoy to the Chief Adviser for International Affairs, attended as the Chief Guest and stressed the critical need for change. He stated, "If the banking sector continues with business as usual, nothing will change. Ensuring good governance regardless of which political party forms the government is essential." Dr. Ashikur Rahman, Principal Economist at PRI, delivered a trigger presentation focusing on the necessary follow-up to legislative reform. He argued that simply "passing the Banking Resolution Ordinance is only half the job". The real challenge lies in making a serious investment in the "processes, systems, and institutional capacities" needed for the Bangladesh Bank and the financial sector to actually implement the resolution regime. "Without the ability to execute orderly resolutions, manage failing banks efficiently, and protect depositors while minimising systemic risks, the Ordinance will remain a promise on paper," Dr. Rahman cautioned. Dr. Zaidi Sattar, Chairman of PRI, chaired the event and highlighted the unique crisis facing the nation's financial sector. He noted that the recent rise of non-performing loans (NPLs) to nearly 35 percent is "unprecedented," exceeding levels seen even in countries affected by the global financial crisis. Dr. Sattar described the situation where many distressed banks are "too toxic to fail," as allowing them to collapse could cause severe economic contagion. The impact of this instability on external investment was underscored by Professor Dr. Mohammad Akhtar Hossain, Chief Economist at Bangladesh Bank. Dr. Akhtar pointed out that the already low Foreign Direct Investment (FDI)-to-GDP ratio is being hampered by the "combination of high NPLs and ongoing political uncertainty," making it extremely difficult to attract foreign capital. The seminar concluded with an open-floor discussion among participants—including policymakers, business leaders, and financial sector experts—who exchanged insights on priority reforms such as legislative updates, strengthened deposit protection, and enhanced crisis preparedness.

Nuvista Pharma PLC has partnered with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Olwel BD Ltd. to launch a Digital Hospital Pilot Project aimed at improving access to primary healthcare and mental health support for Ready-Made Garments (RMG) workers and their families across Bangladesh. Nuvista Pharma PLC’s Managing Director S M Rabbur Reza, Olwel BD Ltd Chairman Mojahedul Hoque Abul Hasanat & BGMEA Senior Vice President Inamul Haq Khan signed the MoU on Wednesday. Through this initiative, Nuvista Pharma will help strengthen access to timely gynecological, reproductive, and specialist healthcare services for workers—particularly women—by supporting a structured referral network and promoting evidence-based care pathways. This partnership reflects Nuvista’s long-standing mission to enhance community health and wellbeing through impactful, accessible healthcare solutions. S M Rabbur Reza, Managing Director, Nuvista Pharma PLC said, ‘We believe every worker deserves access to timely and quality healthcare. This collaboration allows us to reach RMG workers—especially women with essential services that support both their physical and mental wellbeing.’ Olwel BD Ltd. will operate the digital healthcare platform, providing 24/7 GP consultations, secure electronic health record (EHR) management, follow-up services, and factory-level demonstrations. Mojahedul Hoque Abul Hasanat, Chairman, Olwel BD Ltd. said, ‘Our mission is to make healthcare accessible anytime and from anywhere. By integrating our digital platform into RMG factories, we aim to remove barriers workers face when seeking care and create a more responsive health ecosystem.’ Chinese delegation meets BGMEA leaders to explore diversified investment opportunities BGMEA will coordinate factory participation, support HR and compliance teams and ensure effective communication with workers. Inamul Haq Khan, Senior Vice President BGMEA said, ‘This partnership reflects our commitment to strengthening worker welfare through innovative and impactful healthcare solutions. Bringing digital healthcare directly to workplaces will help reduce untreated health issues and improve overall wellbeing.’ The pilot will begin with 5,000 workers from selected factories and expand to include 10,000 workers within three months. All participants will receive digital healthcare support for one year. Future scale-up will depend on project performance and worker outcomes. Under the MoU, the three organizations will jointly monitor progress through quarterly reporting, ensuring data confidentiality, service quality and scalability. This collaboration marks an important milestone in strengthening workplace health systems within Bangladesh’s RMG industry. By combining Nuvista Pharma’s healthcare leadership, Olwel’s digital capabilities and BGMEA’s industry reach, the Digital Hospital Pilot aims to enhance worker wellbeing, reduce absenteeism, and set a new benchmark for accessible healthcare in factories nationwide.    

Bangladesh Bank, has purchased a significant amount of US dollars from local banks as part of its ongoing efforts to stabilise the foreign exchange market and support the flow of remittances and repatriate export earnings. On Thursday (December 11), the central bank acquired approximately $149 million from 16 banks through a ‘Multiple Price Auction’ system. Bangladesh Bank Executive Director and spokesperson, Arif Hossain Khan, confirmed the transaction.  "A total of $149 million dollars were purchased from 16 banks through the Multiple Price Auction. The dollar rate during this period was determined between Tk 122.25 and Tk 122.29 per dollar," he stated. With this latest acquisition, the total amount of foreign currency purchased by the central bank through the auction mechanism in the current Fiscal Year (FY) 2025-26 has reached $2.663 billion. Bangladesh Bank initiated the dollar purchasing process via auctions on July 13 and has since accumulated this substantial amount of foreign currency as part of the new policy.