Daily News Flash: 29th April 2020

Contents
GLOBAL NEWS......................................................................................................................................... 1
THE FED'S FOUR RADICAL MOVES TO SAVE THE ECONOMY .................................................................... 1
ASIA SHARES HIT SEVEN-WEEK HIGH, OIL RALLIES AS ECONOMIES SLOWLY RE-OPEN ........................... 1
WALL STREET DOWN ON FLIGHT FROM TECHS; MOVE TO VALUE LIMITS LOSS ON DOW, S&P 500 ....... 1
BRENT SETTLES HIGHER ON HOPES OF EASING LOCKDOWNS, U.S. CRUDE FALLS AMID STORAGE
SHORTAGE................................................................................................................................................. 1
MACRO ECONOMY ................................................................................................................................. 2
CPA STORE RENT WAIVER FOR ALL IMPORT CONTAINERS IF RELEASED BY MAY 4 ................................. 2
MOODY’S KEEPS OUTLOOK FOR BANGLADESH BANKS’ NEGATIVE .......................................................... 2
REVENUE COLLECTIONS STABLE UNTIL MAR ............................................................................................ 2
BANK ........................................................................................................................................................... 2
BANKS WANT A CREDIT RISK GUARANTEE SCHEME TO PROTECT LOANS UNDER STIMULUS ................. 2
FINANCIAL INSTITUTIONS .................................................................................................................. 3
DBH’S PROFIT STREAK HELD BACK FOR LOWER FLAT SALES .................................................................... 3
INSURANCE ............................................................................................................................................... 3
GUARDIAN LIFE OFFERS COVID-19 INSURANCE PACKAGE FOR BANKERS ................................................ 3
PHARMACEUTICALS & CHEMICALS ............................................................................................... 3
EXPLORE ALTERNATIVE OVERSEAS MKT FOR ESSENTIALS, PHARMA PRODUCTS .................................... 3
TEXTILE ..................................................................................................................................................... 3
SAFETY GUIDELINES WIDELY FLOUTED AT RMG FACTORIES .................................................................... 3
RMG WORKERS TO GET 60% SALARY FOR APRIL ...................................................................................... 4
CAPITAL MARKET.................................................................................................................................. 4
DBA SEEKS STIMULUS FOR STOCKS INTERMEDIARIES .............................................................................. 4
BROKERS’ ASSOCIATION REQUESTS ALLOWING UNDISCLOSED MONEY INTO CAPITAL MARKET ........... 4
GLOBAL NEWS

THE FED'S FOUR RADICAL MOVES TO SAVE THE ECONOMY

 As policymakers from America's central bank prepare to meet - virtually - this week, they will be
looking to see if the extraordinary steps they have taken to confront the world's most severe
economic crisis since the Great Depression are working.
 Since March, the Federal Reserve has pledged to pump more than $4tn (£3.2tn) into the
financial system, slashing interest rates, relaxing banking rules, and dramatically expanding its
lending.
 The Fed's moves, which have increased its balance sheet by more than $2.2tn so far, have been
replicated to some degree by many other central banks, including the Bank of England.
Source: https://www.bbc.com/news/business-52390840

ASIA SHARES HIT SEVEN-WEEK HIGH, OIL RALLIES AS ECONOMIES SLOWLY RE-OPEN
 Asian shares climbed to a near two-month peak on Wednesday as investors took heart from
easing coronavirus lockdowns in some parts of the world, better-than-expected corporate
earnings and a welcome rebound in oil prices.
 Futures pointed to a strong start for Europe and Wall Street with E-Minis for the S&P 500 ESc1
up more than 1% helped by forecast beating revenues from Alphabet Inc’s Google (GOOGL.O).
 Eurostoxx 50 futures STXEc1 added 0.4% while futures for Germany’s Dax index FDXc1 and
those for London’s FTSE FFIc1 were each 0.7% higher.
Source: https://www.reuters.com/article/us-global-markets/asia-shares-hit-seven-week-high-oil-rallies-as-economies-slowly-
re-open-idUSKCN22B00K

WALL STREET DOWN ON FLIGHT FROM TECHS; MOVE TO VALUE LIMITS LOSS ON DOW, S&P 500
 Wall Street’s major indexes lost ground on Tuesday as investors moved out of market-leading
growth stocks, though a rotation into cyclical value stocks indicated hopes of economic revival
as states began to relax restrictions enacted to fight the deadly COVID-19 pandemic.
 While technology stocks pulled all three major U.S. stock indexes into the red, they all remained
within 20% of their February all-time highs.
 “The stock market today is about money coming out of tech and going into economically
sensitive value stocks, where prices have suffered the most,” said Tim Ghriskey, chief
investment strategist at Inverness Counsel in New York. “The sense that states are opening up
and the economy is beginning to grow again is causing this rotation.”
Source: https://www.reuters.com/article/us-usa-stocks/wall-street-down-on-flight-from-techs-move-to-value-limits-loss-on-
dow-sp-500-idUSKCN22A1I6

BRENT SETTLES HIGHER ON HOPES OF EASING LOCKDOWNS, U.S. CRUDE FALLS AMID STORAGE
SHORTAGE
 U.S. crude prices settled about 3% lower on Tuesday after data showing domestic stockpiles
didn’t rise as high as had been expected given tightening storage, despite pledges to cut
production from May 1.
 Markets were supported on hopes demand would recover after some authorities announced
the easing of coronavirus-related restrictions. At least 16 U.S. states looked set to restart
business, but Britain said it was too dangerous to relax the lockdown for fear of a second
outbreak.
 “Demand destruction has leveled off in the U.S., but production cuts have just begun in
earnest,” said Phil Flynn, senior analyst at Price Futures Group.”

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Source: https://www.reuters.com/article/us-global-oil/brent-settles-higher-on-hopes-of-easing-lockdowns-u-s-crude-falls-
amid-storage-shortage-idUSKCN22A04R

MACRO ECONOMY

CPA STORE RENT WAIVER FOR ALL IMPORT CONTAINERS IF RELEASED BY MAY 4
 The Chittagong Port Authority has offered full store rent waiver for all types of import
containers if importers take delivery of the containers from the port yards by May 4.
 The waiver will be applicable for all the containers that landed on the port on March 27 and
afterwards, said the CPA in a notification issued on Tuesday.
 Officials said that commercial importers could not take delivery of their containers as the
Chattogram Customs House could not conduct customs assessment of commercial products
between March 26 and April 21 as it conducted customs assessment in limited scale.
Source: https://www.newagebd.net/article/105324/cpa-store-rent-waiver-for-all-import-containers-if-released-by-may-4
Source: https://today.thefinancialexpress.com.bd/last-page/waiver-of-ctg-port-store-rent-for-all-importers-1588096565

MOODY’S KEEPS OUTLOOK FOR BANGLADESH BANKS’ NEGATIVE

 The outlook for the Bangladeshi banking system remains negative on business disruptions due
to the coronavirus outbreak as it will weaken the banks’ operating environment and weigh on
asset quality, according to the latest report of the Moody’s Investors Service.
 Moody’s in its report titled ‘Banking System Outlook Update’ said that Bangladesh economy was
facing disruptions to both domestic and export demand caused by the pandemic, which would
result in a further deterioration in the banks’ credit profiles.
 Nonperforming loans will increase across multiple sectors, including readymade garment,
textile, retail, manufacturing and trade services, the report predicted.
Source: https://www.newagebd.net/article/105325/moodys-keeps-outlook-for-bangladesh-banks-negative

REVENUE COLLECTIONS STABLE UNTIL MAR

 Revenue collection soared 8 per cent in the first nine months of the fiscal year, paced by the
increased collection of advance corporate tax and higher receipts of indirect tax value-added tax
(VAT).
 The tax authority logged in Tk 165,007 crore between July last year and March this year, showed
the preliminary data of the National Board of Revenue (NBR). Yet, the gap between collection
and target widened further as receipts from all three areas fell short of targets for the period.
 The NBR sat on a shortfall of Tk 56,000 crore until March from its target of Tk 221,145 crore and
the task of narrowing down the gap is likely to widen as the near-collapse of economic activities
for the global coronavirus pandemic will hit overall collection.
Source: https://www.thedailystar.net/business/news/revenue-collections-stable-until-mar-1897762

BANK

BANKS WANT A CREDIT RISK GUARANTEE SCHEME TO PROTECT LOANS UNDER STIMULUS
 Banks have requested the government to consider establishment of a credit risk guarantee
scheme for them to protect the loans and advances given under the recent stimulus packages to
fight the Covid-19 pandemic.
 the financial health of the banks is now most crucial to the recovery of the economy from the
impact of coronavirus pandemic as there is no alternative source to support and inject money to
the economy.

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  At the end, both BAB and ABB chairmen thanked the prime minister, finance minister, and BB
governor for their timely involvement and support during this difficult times.
Source: https://tbsnews.net/economy/banking/banks-want-credit-risk-guarantee-scheme-protect-loans-under-stimulus-74980
Source: https://today.thefinancialexpress.com.bd/first-page/bankers-for-credit-risk-guarantee-against-stimulus-packages-
1588095703

FINANCIAL INSTITUTIONS

DBH’S PROFIT STREAK HELD BACK FOR LOWER FLAT SALES

 Delta Brac Housing Finance Corporation, or DBH, one of the leading listed non-bank financial
institutions, logged in higher profits last year though its interest income dropped.
 In 2019, the housing financier's profits rose 2.77 per cent year-on-year to Tk 107.69 crore.
However, profit-before-tax dropped 3.59 per cent to Tk 155.59 crore. The company's home loan
book expanded at a meagre pace of 1.54 per cent to Tk 4,452 crore during the year.
 The price of raw materials, particularly the price of rod and cement, went up during the year, as
a result of which the price level of apartments increased further, DBH said in its annual report.
Source: https://www.thedailystar.net/business/news/dbhs-profit-streak-held-back-lower-flat-sales-1897726

INSURANCE

GUARDIAN LIFE OFFERS COVID-19 INSURANCE PACKAGE FOR BANKERS

 Guardian Life Insurance Limited has introduced an insurance package called "Corona Safety Net"
for the bankers considering the high risk of exposure due to the coronavirus while performing
duties during general holidays.
 "The plan will provide an instant one-off payout of Tk5 lakh to Tk10 lakh in case of an insured
bank employee being diagnosed as a Covid-19 positive patient. In addition, hospitalisation
benefit for the virus treatment up to Tk5 lakh will be provided.
 "In case of death of an insured bank employee due to the coronavirus, Tk25 ;akh to Tk50 lakh
will be paid to the family as death Benefit.
Source: https://tbsnews.net/economy/banking/guardian-life-offers-covid-19-insurance-package-bankers-75025

PHARMACEUTICALS & CHEMICALS

EXPLORE ALTERNATIVE OVERSEAS MKT FOR ESSENTIALS, PHARMA PRODUCTS

 The government has asked key importers to explore alternative overseas market for essentials
and pharmaceutical products to ensure smooth supply of the same amid prolonged COVID-19
pandemic.
 It also said there is need for resumption of transport services at local level to carry essential
goods to and from warehouses.
 The ministry of commerce (MoC) said this at a meeting with the country's key importers held at
its conference room recently with Commerce Minister Tipu Munshiin the chair.
Source: https://today.thefinancialexpress.com.bd/trade-market/explore-alternative-overseas-mkt-for-essentials-pharma-
products-1588089067

TEXTILE

SAFETY GUIDELINES WIDELY FLOUTED AT RMG FACTORIES

 Two garment workers have tested positive for coronavirus. They worked at factories in Ashulia
and Jashore.

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  A large number of garment factories are not maintaining social distancing as per the health
safety guidelines on the working floor and factory entrances, increasing the risks of coronavirus
infections.
 At the same time, it is very tough for the workers to maintain the distance at their residences as
most of them live in a ten by eight feet room shared by three to four people.
Source: https://tbsnews.net/economy/rmg/safety-guidelines-widely-flouted-rmg-factories-74998

RMG WORKERS TO GET 60% SALARY FOR APRIL

 The readymade garment workers will get 60 percent of their salary for April, instead of the full
amount. They could not work for the first 25 days of this month as nearly all factories were
closed due to the deadly Covid-19 pandemic.
 Those who resumed work from April 26 will get 60 percent of their wages for the previous 25
days, and full wages for the last five days of this month. Besides, factory owners will not lay off
workers before Eid.
 The decisions were made on Tuesday in a tripartite advisory council meeting chaired by State
Minister for Labour and Employment Monnujan Sufian.
Source: https://tbsnews.net/economy/rmg/rmg-workers-get-60-salary-april-74995

CAPITAL MARKET

DBA SEEKS STIMULUS FOR STOCKS INTERMEDIARIES

 The DSE Brokers Association (DBA) on Tuesday urged the government to provide stock market
intermediaries with incentives, including concessional loans, for continuing their business
operations smoothly during the ongoing coronavirus pandemic.
 The association, a platform of brokers of the Dhaka Stock Exchange, also urged the government
to slash advanced income tax levied on brokerage houses to 0.015 per cent from 0.05 per cent.
 It said that the loan would be repaid after January 2021 at 3 per cent interest rate and in total
24 instalments.
Source: https://www.newagebd.net/article/105326/dba-seeks-stimulus-for-stocks-intermediaries

BROKERS’ ASSOCIATION REQUESTS ALLOWING UNDISCLOSED MONEY INTO CAPITAL MARKET

 The association of Dhaka Stock Exchange (DSE) members, in its letter to the Finance Minister on
Tuesday, said if the government allows undisclosed money into the market then it would help
money flow into the capital market.
 It recommends a policy to channelise half of the invested undisclosed money into stocks and the
remaining half into exchange-traded bonds.
 The utilization of the money that has already gone beyond the country's formal accounts can
serve the economy if a three year lock-in period is imposed, a board member of the DBA told
The Business Standard.
Source: https://tbsnews.net/economy/stock/brokers-association-requests-allowing-undisclosed-money-capital-market-75004

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