Read more about April’s business and international news
$600m facility for female entrepreneurs
IFC and Goldman Sachs 10,000 Women program launched a $600 million global facility to increase access to finance to as many as 100,000 women entrepreneurs in emerging markets. The Women Entrepreneurs Opportunity Facility is dedicated to financing women-owned small and medium businesses in developing countries. Its aim is to promote gender equality and ensure the social and economic welfare of women. Since its inception in 2010, the program has made 17 investments totaling more than $800 million in 17 countries. An estimated $300 billion credit gap exists for women-owned enterprises, according to IFC research.
GSP uncertainties continue
Bangladesh has made significant progress in compliance with standards and rules for garment factories. However, it is yet to get rid of criticisms and uncertainties over market access facilities. Representatives of buyers have raised some issues but declined to increase prices of apparel products to meet the costs of improvement in working conditions. The issue of GSP, suspended by US last year, will be discussed at TICFA meeting later this month. The European Union, the other major export destination, is still monitoring the situation. Union leaders and many media professionals will visit Bangladesh when it observes one-year of the Rana Plaza tragedy on April 24.
Dollar to outperform major currencies
US dollar is set to gain against the euro, yen and sterling over the next 12 months, according to analysts. The greenback will be driven by demand for US assets prompted by a shift in Federal Reserve policy. The poll of over 60 foreign exchange strategists, conducted by Reuters on March 3-5, showed the euro holding around $1.36 in a month’s time. It is expected to weaken over the next year – to $1.34 in three months, and $1.28 in 12. The yen was forecast to hold near 102 per U.S. dollar in a month, and then weaken to 104 in three months and 110 in a year.
Three opportunities for banks
Global Consumer Banking Survey 2014 identifies three key improvement areas for banks. First, it suggests making banking simple and clear because consumers are constantly flooded with information and struggle to understand choices, charges and changes so banks should be transparent and concise around fees, rates, services and other communications. Secondly, customers deserve help to make the right financial decisions since many of them want it for developing financial plans and goals and it leaves scope for growth in banks’ business. Third, the survey recommends a proactive attitude in solving problems as a vital part of bank-customer relationship.
Footwear brands eye $1b export market
Bangladeshi brands of footwear are entering new export markets every year. The export grew 25% last year to a value of US$419.32 million from $335.51 million the year before. The export is expected to cross a magic US$1-billion-mark in the next few years. Currently, footwear exporters are overcoming constraints of marketing, designing and finishing. Some big local companies are working with firms from Taiwan, China, Japan, Italy and other countries to upgrade technology and improve designs. Bangladeshi workers, too, were attaining efficiency in manufacturing footwear products of the global standard. The brands are being exported to the European Union, North America, Latin America, Africa and some Asian countries.
Start-up company to address aging
On a quest to treat age-related disease, a US scientist has formed a start-company. The San Diego-based Human Longevity Inc. will use genomics and stem cell therapies to find treatments that allow aging adults to stay healthy and functional for as long as possible. ‘We’re hoping to make numerous new discoveries in preventive medicine. We think this will have a huge impact on changing the cost of medicine,’ said Craig Venter. The company has $70 million in private backing and purchased gene sequencing systems. It plans to build the world’s largest database of human genetic variation. Cancer, diabetes and obesity, heart and liver diseases, and dementia are targeted for treatment.
Brazil business after football fever?
After the World Cup in June-July, Brazilians may have to fall back to the world of real life business. The most disruptive task will be trimming Brazil’s fiscal deficit, which investors and ratings agencies say has been too high. Once rated, one of the most dynamic emerging markets, Brazil is expected to grow at 1.68% this year. President Dilma Rousseff, or whoever wins the October election, will have to take painful steps to address the country’s growing financial imbalances. Tax hikes, and upward adjustments to bus fares and gasoline costs are likely. Obsessed with the football extravaganza, the people hardly talk about uncertainties in 2015.
Newsweek’s new survival path
Newsweek, which has re-launched its print edition, aims to generate 90% of its income from subscription revenue. Declining ad revenue in recent years forced many print magazines to shrink. Newsweek is no longer looking for multimillion reader base numbers but for a more premium and profitable user base, says IBT Media, a digital news company which bought the US magazine. Newsweek’s ceasing publication of the print edition in 2012 is now considered a mixed blessing for its future sustainability. It is also eying advertising money. Newsweek was first published on 17 February 1933.
