China’s gold markets under strain as horde of new buyers hunts for stable investment. April has been a busy month for the Hualin International Jewelry Market in Guangzhou. A scrum of eager buyers has descended upon the venue, looking to join a new gold rush as prices soar and the precious metal takes on new life as a vehicle for investment. Standing out as one of the few bets considered safe in China at present – with stocks, property and banking having lost their lustre in an environment of heightened uncertainty – gold has not only attracted new buyers, but also provided opportunities for the country’s middle class and youth to cash out. The Guangzhou market, originally known for its bustling jade and jewellery trade, has been “flooded” with newly opened gold stores, with dozens emerging according to a store owner earlier this week. “The number of customers is also increasing day by day,” said the owner, who asked not to be identified by name. “Sometimes it feels like a crowded wet market.” “Today’s buy-back price is 554 yuan (US$77) per gram,” the merchant said. “Just now, a lady who got married last year sold me the gifts she received at her wedding, including necklaces, pendants and bracelets.” The retail price for gold from major brands, including Chow Tai Fook and Chow Sang Sang, had risen to over 730 yuan per gram as of Friday, a multi-year high. Previous monthly peaks were observed at around 630 yuan per gram in January and 600 yuan per gram in December. The People’s Bank of China, the country’s central bank, bought 160,000 ounces of bullion in March to bring its total reserves to 72.74 million ounces – its 17th consecutive monthly purchase according to official data – as the nation seeks to diversify its holdings away from US bonds amid frayed bilateral ties. Rapid price changes have made for a mercurial scene. “From the beginning of the year until now, there have been customers buying gold bars for tens of thousands, hundreds of thousands of yuan,” he said. “But since the current price is extremely high, consumers are becoming cautious. Most of the new customers are buying products with lower grams.” According to another merchant, many have begun to sell their stock.   Source: South China Morning Post

The global economy has so far shrugged off the Iranian strike on Israel. Important markets like oil had already priced in a possible attack, while gold and stock markets only moved slightly. Many investors are holding their breath after Iran's unprecedented drone and missile attack on Israel starting on April 13. The aerial strike was the first direct attack launched from Iranian territory and came the same day Iran's Revolutionary Guards forcefully detained an Israel-linked container ship near the Strait of Hormuz.  The Iranian attack had been largely anticipated after Israel destroyed part of the Iranian embassy complex in Damascus, Syria, on April 1. Still, experts are waiting to see if the conflict between the two countries escalates, even as the United Nations and the United States put pressure on Israel to show restraint. Most businesses don't like uncertainty and the possibility of wider open warfare has the region on edge.   Middle East oil and energy prices If the conflict grows and engulfs more of the Middle East, the biggest risk for the global economy is the response in the energy markets, especially oil prices. "A rise in oil prices would complicate efforts to bring inflation back to target in advanced economies but will only have a material impact on central bank decisions if higher energy prices bleed into core inflation," Neil Shearing, group chief economist at consultancy Capital Economics, wrote in a note to clients. So far, though, oil prices have not moved much since the attack. It seems that the market had already taken the current unstable situation into account and was not spooked over the weekend by the retaliatory strike. OPEC+ and its spare capacity In fact, Brent crude oil prices rose from $83 per barrel a month ago to over $90 per barrel last week where they have stayed, "spurred in part by concerns about supplies and geopolitical risks from conflict in the Middle East and Ukraine," wrote Shearing. The economist pointed out another reason for calm on the oil market is a push by some OPEC+ members to increase production quotas. "A rise in oil supply will obviously help to limit any rise in its price," whether because of increased tensions or supply chain problems like dangerous Red Sea shipping routes. Jorge Leon, a senior vice president at energy analyst Rystad Energy, agrees. Though OPEC+ has a complicated job to coordinate and manage the oil market, it is likely to unwind voluntary production cuts at a meeting in June, he wrote in a note on Monday. This could release six million barrels a day in spare capacity to limit price pressures, since it is in the group's interest to avoid a global energy crisis.  Inflation could impact growth If oil prices did go up and remained high it could fuel global inflation at a time when several countries are suffering from long-term high inflation. This "sticky inflation" is "something that could create a dilemma for central banks, as we also found out after Russia's invasion of Ukraine in 2022," argued Deutsche Bank analysts in a note to clients.   "On the one hand, there is the risk that a geopolitical shock hurts growth, bringing forward the timing of rate cuts," according to the bank. Investing in all that glitters As for stocks, when markets opened on Monday, many Asian equity indices like the Nikkei were lower. "But that partly reflects a catchup to the selloff that already took place on Friday after they'd closed, when headlines came through suggesting that an attack could happen," wrote the Deutsche Bank analysts. For their part European markets opened higher. Overall, the analysts don't see much change among key assets since Friday "with investors hopeful that any escalation will prove contained." One small sign of investors looking for a safer investment was the increase in the price of gold. On Monday, it was up 0.51% to just over $2,356 (€2,211) an ounce. It is still early and the conflict could widen and pull in other countries, lead to more US sanctions on Iran, or damage or destroy oil infrastructure. Some Western airlines temporarily suspended flights into the region, other have rerouted flights to avoid Middle Eastern airspace. If Iran or Houthi rebels continue to target Israel-linked ships in the important trade route through the Strait of Hormuz, "a risk of false targeting and collateral damage exists," according to Ambrey, a maritime risk management company. This or another aerial attack could further pull in the US, drive up global shipping costs and cause havoc for the world economy.    

Prime Minister Sheikh Hasina today asked all concerned to explore new markets for Bangladeshi garments with invention of newer items keeping pace with its ever-changing trend. "They, who are working with garments and their exports, will have to find new markets. Newer products will have to be produced keeping in mind that the choices vary with different countries," she said. The premier was addressing as the chief guest a function marking the National Textiles Day-2022 and inauguration of six textile educational institutes in six districts, joining from her official Ganabhaban residence here through a video conference.   The Ministry of Textiles and Jute organised the function at Bangabandhu International Conference Centre (BICC) in the capital city.   The prime minister said Bangladesh has to coordinate the fresh ideas with its old and historical tradition in textiles, for which, a university on fashion and design was established in the private sector to prepare skilled manpower.   "Fashion and design are very important and they are changing constantly. We have to keep pace with the ever-changing trend of garments and realise which design is high in demand," she said.   The newly inaugurated six textile institutes are: Sheikh Rehana Textile Engineering College in Gopalganj, Sheikh Russel Textile Institute, Jamalpur, Shahid Abdur Rob Serniabat Textile Institute, Gouronodi, Barishal, Shahid Kamaruzzaman Textile Institute, Naogaon, Begum Amina Mansur Textile Engineering Institute, Sirajganj and Bhola Textile Institute.   Textiles and Jute Minister Golam Dastagir Gazi (Birpratik), its Secretary Md. Abdur Rauf and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Acting President Shahidullah Azim also spoke at the function.

In a major achievement, Jammu and Kashmir has become the first region in the country to issue Quick Response (QR) labels for its 13 different GI and non-GI registered handicrafts. The QR code labels are a step towards providing global recognition of the traditional arts and crafts of the Himalayan region. The government has been aiming to make J-K products popular across the globe through special marketing strategies and schemes. As a result of this, the products are being sold like 'hotcakes' in the international markets due to their uniqueness, master craftsmanship and branding. Right after J-K's transition into a Union Territory in 2019, the government has been aiming to restore the pristine glory of handicrafts. Initially, nine products, Kani Shawl, Kashmir Pashmina, Kashmir Sozini Craft, Kashmir Papier-Macihe, Kashmir Walnut Wood Carving, Khatamband, Kashmiri Hand Knotted Carpets and Kashmir Saffron and Basmati were issued Geographical Indication (GI) tags to fight counter branding. Notably, the Pakistan-sponsored insurgency that broke out in the valley in 1990, had paralysed the handicrafts sector, as the gun-toting terrorists sent by Pakistan disrupted the daily chores which led to the closure of handicraft and handloom shops and units in J-K. The artisans and weavers had given up hope of returning to their traditional crafts. Tourism and exports being hit further worsened the situation. Some normalcy returned to J-K as elections were held, and a government came headed by National Conference leader Farooq Abdullah. In 2002, the Peoples Democratic Party led by Mufti Mohammad Sayeed entered into a coalition with the Congress Party and formed a government. In 2005, veteran Congress leader Ghulam Nabi Azad became the J-K Chief Minister.  In 2009, National Conference returned to power, and in 2014 PDP made a comeback in coalition with BJP. In 22 years, J-K got five chief ministers. Though all of them promised to promote handicrafts and languishing crafts they fell short of fulfilling their pledges. On August 5, 2019, the regime led by Prime Minister Narendra Modi announced its decision to abrogate J-K's special status and bifurcate it into two Union Territories. It was promised that this decision will lead to the end of Pakistan-sponsored terrorism once and for all. They have remained true to the words as terrorism in J-K is on its last legs. J-K's reorganisation led to all the centrally sponsored schemes reaching out to the people in the state. Several schemes were launched, under which craftsmen and artisans were provided with incentives. Many initiatives have been taken to improve the wage earnings of the craftsmen and create linkages with producer organizations to inculcate skills and aptitude in the trainees. As a result of this, young craftsmen and artisans have turned entrepreneurs and are working hard to popularize the brand J-K. The government has also roped in several corporations to explore the possibilities of tie-ups with the Jammu and Kashmir  Entrepreneurship Development Institute (JKEDI). The branding, quality certificates, and marketing of Jammu and Kashmir-based products have also been undertaken. Many youngsters and aspiring entrepreneurs have undertaken start-ups financially viable and revenue-generating units. Many traditional art forms that were at risk of turning extinct have been revived. The branding of handicraft and handloom items, organizing exhibitions and marketing events have helped the people associated with the industry to make a comeback. The GI tags and QR coding have turned J-K handicrafts into international products. They are part of the multiple steps taken by the government to promote local products for greater economic benefits to artisans, weavers and craftsmen. Recently J-K Lieutenant Governor Manoj Sinha launched QR-Code-based labels of 13 different GI and non-GI registered crafts of J-K. The QR-Code labels would help to authenticate the origin and quality of the crafts, improve the quality assurance in both national and international markets and benefit craftsmen, traders and exporters. It will also ensure product quality, and genuineness and boost global demand for products made in J-K. Steps that have been taken in the recent past have made the handicraft sector more productive and financially attractive. Product diversification, brand promotion and new marketing strategies are connecting buyers with artisans directly. As a result of these steps, the art and craft of Jammu and Kashmir are on the revival path. 

The cattle markets in the capital are buzzing with on rush of buyers and the bargain by the sellers keeping ahead the holy Eid-ul-Azha. While visiting the cattle markets (haats) in capital’s Aftab Nagar and Meradia numerous numbers of visitors and buyers were seen who came to buy or choose their animals of sacrifice. Some buyers were seen leaving the haat along with their purchased animals and others were eagerly asking the price. Not only that, hawkers were also seen selling bells, colorful garlands for the beasts. While talking to a buyer named Sabbir from city’s Kalabagan area, informed that he came to the haat along with 80 thousand taka to buy an ox. He came to the haat with other family members and determined to buy the animal of sacrifice on the day in and around of the budget. Mujibur, a resident of city’s Hatirpull area came to the haat along with his child. They were eagerly looking for the perfect beast. He was hopeful of buying an ox with his budget of 60 to 70 thousand taka. Most of the buyers have complained about excess price for the animals charged by the sellers. The sellers also have acknowledged the matter. They said excessive price for fodder items and maintaining cost forced them to sell the animals at higher prices. They also said that excess buying cost of sacrificial animals tends them to charge the higher prices. Watch towers were also seen in the cattle markets erected by the law enforcement agencies, besides there were stalls to detect the forged notes equipped with detected machine for ensuring the cattle traders for smooth transactions. AH          

UN Secretary-General Antonio Guterres on Thursday called for efforts to reintegrate the agricultural production of both Russia and Ukraine into world markets. "Any meaningful solution to global food insecurity requires reintegrating Ukraine's agricultural production and the food and fertilizer production of Russia and Belarus into world markets - despite the war," the UN chief told a Security Council meeting on conflict and food security. "We are working to find a package deal that will enable Ukraine to export food, not only by train but through the Black Sea, and will bring Russian food and fertilizer production to world markets, without restrictions," said the top UN official. Guterres said that this will require "the goodwill of all countries concerned." To meet urgent food security and nutrition needs in Niger, Mali, Chad and Burkina Faso, the secretary-general has announced to release 30 million U.S. dollars from the Central Emergency Response Fund (CERF). "This brings to almost 95 million dollars the funding channeled through CERF to the Sahel since the start of the year," he said. Investing in political solutions to end conflicts, prevent new ones, and build sustainable peace is crucial in addressing food insecurity, said the secretary-general. Furthermore, he called for attention to the interconnected risks of food insecurity, energy, and financing, which "require far greater coordination and leadership." Source: Xinhua/BSS AH

Toyota Motor Corp plans to make India a manufacturing hub for electric vehicle parts to meet demand there as well as for export to Japan and some ASEAN countries, a senior company executive told Reuters. The carmaker plans to start by producing e-drives or electric powertrain parts used by different electric vehicle types, including battery EVs, plug-in hybrids and other hybrid models, Vikram Gulati, executive vice president at Toyota  Kirloskar  NSE -4.67 % Motor said. "The aspiration is to make India the manufacturing hub for cleaner technologies. This is about creating the building blocks," Gulati said. He did not name the countries in ASEAN, or the Association of Southeast Asian Nations, that Toyota would export to. The move follows the company's recent announcement that it will invest 48 billion rupees ($621 million) in India to localise the supply chain for EVs, and is also part of its broader 2050 carbon-neutrality goals. It also comes as Prime Minister Narendra Modi's government is offering companies billions of dollars in incentives to build EVs and their parts locally. The bulk of the investment in India will be made by Toyota's local unit, Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP), a joint venture of Toyota Motor Corp, Aisin Seiki Co and Kirloskar Systems, the company said on Saturday. The world's biggest carmaker said in December it plans to invest $70 billion to electrify its automobiles by 2030, including developing battery EVs as it plays catch-up with global automakers investing billions of dollars in the shift to cleaner vehicles. In India, however, Toyota is more focussed on launching its hybrid models first, which it believes are better suited to the country's aim of reducing dependence on fossil fuels and carbon emissions. Gulati said this would also address varying consumer needs and enable "a faster transition towards an electrified future". Building out the supply chain early will help Toyota become competitive in terms of volume and price in India, Gulati said. Toyota expects this to enable a "faster and smoother" shift for the Indian auto industry to electric-vehicle technology, he added. Source: Economic Times  

Even after the two consecutive lockdown, Tata Starbucks, the Seattle-headquartered coffee chain giant that has partnered with the largest conglomerate in India, is  on track with its growth plans. "We have continued to grow over the last 12 to 18 months, and we are now at around 240 stores in 20 cities, with around 2,000 partners at the store level," says Sushant Dash, Tata Starbucks president. The company saw sales grow 128 per cent last quarter and delivery revenue -- earnings from home deliveries -- rise 17 per cent, he added. "We have continued to be very bullish and have actually looked at expansion with the same vigour. In fact, if I look at a 12-month period, we opened around 37 stores, which is the highest in 12 months since inception, and we have gone to nine new cities since August 2020," Dash says.These include Jaipur, Kanpur, Indore, Bhopal, Ludhiana, Kochi, Amritsar, Lucknow and Vapi. Major competitors in terms of cafe outlets for Starbucks are Cafe Coffee Day (572 cafes in 165 cities and 333 kiosks), Blue Tokai Coffee (39 outlets across India), Costa Coffee, Baristas Coffee Company and McDonald's McCafe.And major competitors in the packaged coffee segment are Blue Tokai Coffee, Davidoff Coffee, The Indian Bean and The Coffee Co. "Two things happened with Starbucks -- it took the advantage of falling retail real estate prices, and in addition its strong cash reserves led it to be better prepared for downturns,"says Anurag Katriar, trustee, National Restaurant Association of India. "Anyone looking at the long haul would see downturns as opportunities. In addition, hygiene and trust have become supremely important in our present world. Most people would go to a Starbucks versus an ABC cafe because of its consistent hygiene and quality standards," he adds. The coffee market in India is broadly divided into two categories: Packaged coffee and cafe chains.The packaged coffee market is growing at a compound annual growth rate of 10 per cent for the past five years in India.The Indian cafe chain market is expected to be worth Rs 4,450 crore (Rs 44.50 billion) by 2023. Starbucks has made an impact in terms of its cafes, but is limited to coffee-bean packaged products when it comes to packaged coffee -- a category in which, for example, it has very few offerings in the instant coffee segment.What helped the coffee chain drive revenue and traction with customers? One factor Dash pointed to was the Starbucks Mobile Order and Pay app launched last year. "That offered customers the option of pre-ordering and picking up their beverage from a nearby Starbucks store, reducing the time they spent in ordering lines and their interactions," he says. "We introduced things like contactless ordering so you can scan a QR code outside of all the stores. Using WhatsApp-based can-order pay solutions made that easier to transact." It also helped that Starbucks added ice-cream in takeaway tubs and one-litre bottles of beverages during the lockdown keeping in mind that consumers were home-bound."In effect, we were taking the Starbucks experience from the store to the home," Dash says. Starbucks also allowed for curbside delivery or for customers to walk to a nearby store and collect their orders.Then it deepened its engagement with aggregators in terms of delivery."We have launched our merchandise in e-commerce, so we are now available on Tata Cliq Luxury and on Flipkart," Dash says. Also lending support was smart marketing gimmicks. In India recently, in terms of sustainability, the company announced it would give customers a reusable mug free so that they come back and use that mug and help in reducing plastic usage. Of course, supplies of the mug ran out in a matter of hours but Dash admits that it led to one of the highest sales ever in a single day in terms of numbers. It gave away 45,000 mugs on October 2 this year.The other ace up Starbucks' sleeve has been its rewards and loyalty programme. Source: rediff.com That has also grown by almost 20 per cent for it year-on-year. Two years ago, it had 650,000 members. "Now, in India we are nearly reaching a million in terms of the total number, which is a phenomenal number. It is a win-win," Dash says. What Starbucks offers is upgrades, customisation, free drinks and snacks to regular spenders, and on their birthdays. For a beverage company, will it have to be the brick-and-mortar route or a combination of e-commerce and the omnichannel model to drive sales? "We cannot say anymore that it will be only brick-and-mortar or delivery. There are issues we need to work on to improve the experience in terms of delivery, but the experience people had 12 months back and what they have had over the last three months has changed drastically,&" Dash points out. The company started focusing on the basics, which were delivery time, whether products are at the right temperature when they arrive, and spillage. "So, if you order, let's say, right now, you will realise that our packaging has completely changed. I'm not saying that we are 100 per cent there; there is always scope for improvement, but our packaging from what it was 12 months back has drastically changed and is now almost spill-roof," says Dash. One challenge that persists? Of course, growth always comes with challenges and one of them is getting the right real estate, which then ties into making sure the customer gets the right experience, and which is always a balancing act when factoring growth in, Dash says, but adds, "We will continue to focus aggressively in terms of expansion to newer markets. You will see many more new markets opening up over the next three to six months." Source: REDIFF

Prime Minister Sheikh Hasina today (Thursday) stressed diversification of the exportable products, urging businessmen and officials concerned to expand production of export items and explore new global markets to strengthen the country's economy further through enhanced foreign earnings.    "Product diversification is inevitable to boost our export earnings . . ." she said while inaugurating the Bangabandhu Bangladesh-China Friendship Exhibition Center (BBCFEC) at Purbachal as the chief guest.    Joining virtually from her official residence Ganabhaban, the premier also underscored the necessity of attaining own efficiency in production to survive in the competitive economy.    She said, "Whenever you (businessmen and entrepreneurs) produce a product, you have to maintain high quality to meet the needs of different countries. . . Then you can survive in the market."    Sheikh Hasina opined all the industries of the country should be prepared from now on to address the upcoming challenges, saying, "The government will extend all cooperation, but your (businessmen) own initiatives have to be there".    She said product diversification in the country is possible as digital devices are being produced here. "I think digital devices would be the major export items in the coming days," she added.   Referring to her initiative of setting up 100 economic zones across the country, she said the government has taken steps to create opportunities for local or joint investment there.    She added ready-made garments are being given the highest importance as huge number of female workers is working in the sector.    But, at the same time the government is pulling the country ahead prioritizing other sectors also, she went on saying.    In addition to readymade garments and knitwear, the premier also urged the businessmen involved in manufacture and export textile, leather and leather industries, ceramic products, frozen, fresh and processed fish, vegetables, fruits, light engineering, furniture, pharmaceutical and pharmaceutical products and small and cottage industries to explore new markets.    With Commerce Minister Tipu Munshi in the chair, Export Promotion Bureau (EPB) Vice Chairman AHM Ahsan delivered the welcome address.    Chinese Ambassador to Bangladesh Li Jiming and Commerce Secretary Tapan Kanti Ghosh also spoke at the ceremony at BBCFEC.    A documentary on the development of Bangladesh and BBCFEC was screened at the function.    The exhibition centre will be the permanent venue for different product-based fairs throughout the year to act as a business hub in the country.    Export Promotion Bureau (EPB) undertook the BBCFEC Construction Project in Purbachal New City Project Area with co-financing of Bangladesh and China.    China State Construction Engineering Corporation (CSCEC) has built the exhibition centre on 26 acres of land.    BBCFEC has 33,000 square metres of floor space, including two exhibition halls covering 15,418 square meters each, which have the facilities to feature more than 800 stalls.    The modern exhibition centre has its own water treatment plant, CCTV control room, WiFi system for internet, a modern fountain, car parking, fire extinguishing system and remote-controlled entrance gate. The Prime Minister said Father of the Nation Bangabandhu Sheikh Mujibur Rahman had attached importance on private sector.   Following the footsteps of Bangabandhu, Awami League (AL) government after assuming office in 1996 opened various sectors for private investment to develop new entrepreneurs in the country.    She mentioned her government has established Bangladesh Economic Zones Authority (BEZA) for industrialization across the country while formed Bangladesh Investment Development Authority (BIDA) to ease business here by offering one-stop-service.    She added during the Covid-19 pandemic in the last one and a half year, her government has tried to keep the wheel of economy running and as part of the strategy, a few fairs was organised in limited scale alongside providing special cash incentives.    She continued, "The matter of hope is that the export sector has rebounded very quickly due to the government's timely incentive packages and policy support".    In the fiscal year 2020-21, the export revenue has increased by 14.12 percent compared to the previous financial year amounting to 45.37 billion, the premier said. Sheikh Hasina said setting up and removing of pavilion in the temporary trade fair venue is a money-and-time-consuming matter.    So, Bangabandhu Bangladesh China Friendship Exhibition Centre (BBCFEC) was established to provide a better option to the businessmen to showcase their products, she said.    "Now, they (businessmen) can organize fair in the BBCFEC round the year," the Prime Minister said.    On the other hand, BBCFEC becomes an income source of commerce ministry, she added.    She said through this exhibition center, it will be possible to organize export fair and sourcing fair all over the year to enter the international market with Bangladeshi products.    The head of the government asked ministry of commerce, EPB, exporters and business leaders to make the best use of the center by organizing export fairs, trade fairs, exporters' conferences, buyer-seller fairs and other trade promotion activities at BBCFEC.    She thanked the Government of China and its friendly people for their financial and technical assistance in the construction of the exhibition center.    She also hoped that China will play a role in fulfilling the Chinese President's pledge of strategic assistance by enriching exports through importing more goods and services from Bangladesh. Source: BSS AH

Within one week of difference the prices of gold have increased in the country’s markets. In this time price of 22 carat gold has been increased by 2,450 taka and will be sold at 76,458 taka per bhori. Bangladesh Jewelers Samity (Bajus) delivered the information to the mass media through a press release on Thursday. The new prices will be effective from tomorrow (Friday). According to the new price list of Bajus, 22 carat gold will be sold at 76,458 taka per bhori. Till Thursday the price was 74,008 taka. That means the price has increased by 2,450 taka per bhori. The price of 21 carat gold is fixed at 73,308 taka. The previous price was 70,858 taka. That means the price has increased by 2,450 taka per bhori. Similarly, price of 18 carat gold is fixed at 64,560 taka and the existing price is 62,110 taka per bhori. The price of this kind of gold has increased by 2,450 taka per bhori. Besides, price in the old method gold has been fixed at 54,238 taka. The existing price is 51,788 taka per bhori. The price has increased by 2,450 taka per bhori. AH