Read more about August’s business and international news
Investment slows down, causing deposit-rate fall
The rates of interest offered by banks against fixed deposits have declined due to sluggish investments. Banks are not much willing to mobilise more funds given the slow credit demand. The rate of fixed deposit receipt dropped from 1% to 11.5% in May from the last year’s rates. Short-term deposit rate also fell. Deposit rate remained slow during the period marked by political turmoil surrounding the January 5 polls. Bankers say the rise in the amount of excess liquidity forced them to cut the FDR rates. The central bank has pressured the banks to cut lending rate.
How cities win mega events
Mega events, if planned and financed effectively, are considered transformative for cities that host them. For FIFA World Cup 2014, Rio has transformed everything from security to transportation to urban regeneration. Cities must correlate their development priorities for bidding on mega-events. Studies suggest cultural appeal, creativity and good old human ingenuity are the key to creating successful cities. Indicators are organised into three families that reflect the fundamentals of a well-balanced city: forward-looking tools such as education and technology; quality of life making cities healthy, happy, and sustainable; and the ability to pay the bills for it all.
Domestic cotton output increasing
Production of cotton, raw material of textiles industry,increased 12% to 144,616 bales in 2013-14 from 129,000 bales the year before. The cultivation area had been expanded to 41,498 hectares the previous year from 32,600 hectares five years ago when production was 50,175 bales. The domestic production of cotton meets hardly 5% of the national demand of more than 4.0 million bales a year. Cotton was not a profitable crop for Bangladeshi farmers but introduction of hybrid seeds and modern technology provided incentives to them. Two varieties of cotton grow in the country’s 32 districts.
Home buyback offers in China’s weak market
Homebuyers are offered an option to sell back their apartments in five years for 40% and even 120% above the purchase price. Property developers in two of China’s weakest housing markets are offering to buy back homes to boost sales as demand slows. Prices of new homes fell in half the 70 cities tracked. A more persistent and sharper downturn in the property sector is the biggest risk for China’s economy. China’s home sales slumped 10.2% recently amid tight credit and an economic slowdown, reversing last year’s 27% jump.
Baby boomers not better-off
Generations that started work in the 1990s earned more than those starting out in the 1970s, a UK study shows. The postwar baby boomers were believed to be the lucky one, benefiting from house price gains and generous pension deals. Workers aged 21 in 1995 were paid an average of 40% more in real terms in their first 18 years employment than those aged 21 in 1975. The people beginning their career in 1975 would have to work up to four years longer than those starting work in 1985 to accumulate the same earnings, and up to six years longer than those starting in 1995.
Pakistan’s textile exports rise
Exports of textile and clothing products from Pakistan increased by almost 6% to $12.626 billion in July-May 2014 from a year ago, thanks to a slight rise in export of value-added products. Only nine textile products recorded positive export growth among all textile and clothing categories. Export of low value-added products, such as cotton cloth was up by 4.46%, cotton carded 2.86%; other textile material 20.74% and made-up articles, excluding towels and bed-wear 12.39%. In the last few months, growth of textile and clothing stagnated at 7% owing to capacity issues.
Deal-making activity gets off in India
As companies and investors become optimistic about India’s economic prospects, deal-making activity is off to its best start in at least three years. Nearly $35 billion worth of mergers and acquisitions involving an Indian firm as either a target or a buyer were announced in the first half of this year, versus $21 billion and $26.5 billion in the same period in 2013 and 2012. Many deals that hung in the balance last year as India’s economy slowed have lately started to close. Companies hope India’s growth will pick up, thanks partly to assumption of office by the new government.
Complaint of sharing personal data against Facebook
A privacy watchdog filed a complaint with the Federal Trade Commission that Facebook used people’s personal data in research purposes without their consent. The social media networking company allegedly ‘failed to inform users that their personal information would be shared with researchers’. Facebook’s study on psychological experiment found that users who saw more positive content were more likely to write positive posts, and vice versa. The Electronic Privacy Information Center complained that Facebook ‘purposefully messed with people’s minds.’ In its response, Facebook said it has always asked its users for permission to use their data to improve the service.
Americans forfeit vacation time?
Four in 10 Americans stockpile vacation time, failing to take all the days they’re offered. Those stay-at-work Americans leave an average of 8.1 days unused. That’s 429 million unused days per year, according to 2014 Oxford Economics analysis. Those million-plus years are one big gift to corporate America but the gesture doesn’t do employers or their employees much good. All this obsessing over work – for devotion, job insecurity or false emblems of productivity – can get in the way of getting stuff done. Time off, experts say, makes you not just happier and healthier but more productive on the job.
Malaysian Airlines could go private
Privatisation has been suggested as an option to ensure survival of the loss-making Malaysian Airlines. Khazanah Nasional, the biggest shareholder of Malaysian Airlines (MAS), came up with the suggestion ahead of a proposed restructuring of the carrier. Khazanah Nasional owns 69.4% of Malaysian Airline System Bhd, the company that owns the MAS brand. At its annual general meeting recently, MAS officials reportedly emphasised a massive overhaul so that it could overcome losses made in past three years. In 2013, MAS’ losses rose to RM1.17 billion, nearly three times larger than its RM433 million loss recorded in 2012.
