Financial news

Real GDP is estimated to have increased by 1.4 per cent in 2014 as a whole, before moderating to 0.8 per cent in 2015, the European Commission said in its Winter Economic Forecast. Economic growth is projected to slightly increase to 1.0 per cent at the end of the forecast horizon. After recovering in 2014, private consumption is expected to lose vigour in 2015-16 due to the expected weak growth in real disposable income. In 2015, household consumption is supported by lower fuel costs. Stabilisation of labour market conditions in 2014 will also be a supportive factor going forward, but the decline in the working-age population has already become a drag on household disposable income and consumption. In addition, fiscal tightening is likely to dampen the outlook for consumer spending in 2015, the Commission says. The public investment outlook is set to turn negative in 2015, as the programming period is coming to an end. With financial conditions remaining tight, firms are expected to freeze or postpone investment plans.

Parliament adopted on first reading a Pre-school and School Education Bill moved by Milena Damyanova of GERB and a group of MPs. The Bill introduces dual education and a possibility for state financing of private schools. The Pre-school and School Education Bill proposes a new structure of the school education system: lower primary level (1st-4th grade), upper primary level (5th-7th grade); lower secondary level (8th-10th grade) and upper secondary level (11th and 12th grade). The two secondary levels offer possibilities for a change of the choice, pre-university training and vocational training in the last two years, the authors of the Bill say in their reasoning. There will be a public council at each school, while the National Inspectorate of Education will make an independent external assessment of the quality of education in the schools and kindergartens. First to third-grade students will not be given marks but will receive only performance assessment.

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Companies

Energoremont-Holding has concluded a contract with Mine Maritsa-East for repair and restoration of running units for excavators. The company is selected for a contractor under three announcements for public orders, again by Mines Maritsa East. Total value of the contracts is assessed to BGN 13 million VAT excluded. Major shareholders in the enterprise are Milenia 77 LTD with 33.03%, Bulgarian Energy JSC with 32.08%, New Energy and Industrial Technologies JSC with 21.59% and Geopribor JSC with 10.80%.

There will be an energy exchange through which will undergo the whole amount of electricity, announced the Chairman of the Parliamentary Committee on Energy and MP Delian Dobrev and added that the  exchange in Bulgaria will work on the Romanian model. The amendments to the Energy Act (EA), which is currently under discussion, envisages full liberalization of the electricity market in Bulgaria by 2016. According to Dobrev, from the beginning of next year there will be no energy mix sold by the National Energy Company (NEK) but preferential prices and a fund to cover the cost of green energy.

Optix-Panagurishte invests BGN 15 million in a facility for thermal imaging technology that is to enter into exploitation this week. The enterprise’s construction has lasted for 13 months, as just in the new building more than BGN 1 million is invested. The greater part of the investment though is in European machines for CNC. More than 50% of the value of the precise Swiss equipment is funded under Operational program Competitiveness. Optical details, elements, lenses and eyepieces are produced in the new facility for thermal imaging technology. They will be applied in objects, designed to "see" in the infrared spectrum of light. The end products will be sold at the Asian military market, as well. To that purpose the company has founded some time ago Kenchana optronics- a joint venture between Optix and Malaysian Kenchana Defence. The new thermal imaging facility in Panagurishte is part of the company’s strategy for 2015 to start local Malaysian production of military systems with parts manufactured in Bulgaria.

Sopharma JSC reported a drop in sales by 43% in January 2015 compared to the same month of the previous year. The volatility of the ruble imposed price update on products for the Russian market, which is why the company has reduced its exports to Russia during the period. Sopharma JSC predicts that the downturn from the start of the year will be made up as early as the first quarter. Overall, export sales decreased by 61%, while domestic sales increased by 11%. In early January, the ruble was traded at a rate of 71.2704 RUB/EUR, after numerous and significant fluctuations ended the month at a level of 78.1810 RUB/EUR, a fall by nearly 10%.

Two startups shared a prize for the best startup during the annual awards of the Bulgarian Association of Information Technologies (BAIT). The first is Jumpido - a company founded by young entrepreneurs behind the eponymous educational software. It aims to attract children's attention to mathematics, taught through active entertainment, games and movement. The project began in 2013 and a little later received funding from venture capital fund LAUNCHub amounted to EUR 200 thousand. The second company, awarded this year by BAIT is Transmetrix. It was founded in 2013 as well, but creates a software system that allows cargo carriers to calculate the empty space in their handling equipment. The young company has attracted EUR 500 thousand funding as among investors is the LAUNCHub fund.

Europe

Telecom company BT Group PLC said it has agreed to acquire mobile operator EE from Deutsche Telekom AG and Orange SA for £12.5 billion ($18.98 billion). The deal puts the British fixed-line giant back into mobile services and further scrambles a fast-moving telecoms sector across Europe. BT plans to pay for EE through a combination of cash and BT shares. The U.K.-based telecommunications company plans to fund the cash component of the deal through new shares, which will aim to raise about £1 billion, and through the issuance of new debt. Following the BT purchase, Deutsche Telekom will hold a 12% stake in BT and will be entitled to appoint one nonexecutive member of the BT board of directors. Orange will hold a 4% stake in BT. EE is a leading mobile network operator in the U.K. with 31 million customers of which 24.5 million are direct mobile customers and 834,000 are fixed broadband customers. It has the largest 4G customer base of any operator in Europe.

America

Twitter plans to set up a research and design center in the Indian technology hub of Bangalore, its first such facility outside the US, as part of wider moves to accelerate growth in major emerging markets. The San Francisco-based social network bought Bangalore-based mobile start-up ZipDial for about $40 million last month, and plans to use ZipDial's team as the basis for its new R&D facility, according to people familiar with the matter. The move comes as Twitter tailors its service for countries such as India and Indonesia, which are set to be its two fastest-growing user markets this year, according to research group eMarketer. It also coincides with pressure on Dick Costolo, chief executive, to reverse a slowdown in the growth of Twitter's much-watched monthly active user numbers. Shares in Twitter, which reports fourth-quarter results on Thursday, have dropped by 42 per cent over the past year, partly due to investor concerns that it is not keeping pace with the advance of larger rival Facebook.

Asia

Sony expects its net loss for 2014 to be smaller than previously forecast, thanks largely to higher-than-expected sales of image sensors and PlayStation 4 game consoles. The technology and entertainment conglomerate will likely record a net loss of 170 billion yen ($1.4 billion) for 2014, according to preliminary results released Wednesday. The revision is a 26 percent reduction from the net loss of 230 billion yen it predicted last year.The company also predicted its third-quarter operating profit doubled year-over-year to 178.3 billion yen ($1.51 billion), while revenue is expected to have risen by 6 percent to 2.56 trillion yen for the three months ended December 31. The results represent the first official glimpse into the financial health of the company after a security breach forced Sony to shut down its computer network for several weeks and delay its quarterly results.

Ancient Theater in Plovdiv

Built in 2 century A.D. under Emperor Trajan, the theater was one of the most significant public edifices of Trimontium, remarkable for its architecture and splendor. The remains of the theater were found occasionally during fortifications, and the excavation, executed by the Plovdiv Museum of Archeology, lasted from 1968 until 1979. The seats are arranged in tiers in two rings of 14 rows each. The theater has a capacity of 7,000 seats. The names of the quarters of the city are cut into the benches of each sector and each spectacular knew his place in the respective sector. The stage has two levels and reveals the architectural and decorative opulence of the building. The high-quality materials and the artistic performance prove the huge significance of the theater. Included within the Ancient Plovdiv architectural reserve, today the theater is the most emblematic monument of the cultural and historical continuity of Trimontium during the centuries. Born again, it is a spiritual center of the city, where the contemporary culture meets the everlasting values of the past. The theater is open constantly. This Plovdiv’s symbol is still an art stage – various festivals are held here regularly.

On that day:  St. Photius