Financial news

Bulgaria’s Producer Price Index on Domestic Market in January 2015 decreased by 0.9% compared to the previous month, shows the data of Bulgaria’s National Statistical Institute. The domestic prices fell in the manufacturing by 1.9% and in the mining and quarrying industry by 0.8% while in the electricity, gas, steam and air conditioning supply the prices rose by 0.6%. In the manufacturing, compared to the previous month the prices went down in the manufacture of basic metals by 2.3% and in the repair and installation of machinery and equipment by 1.1%, while a price increase was reported in the manufacturing of computer, electronic and optical products and in the manufacture of other transport equipment by 0.3%. Producer Price Index on Domestic Market in January 2015 decreased by 1.9% compared to the same month of 2014. The domestic prices fell in the manufacturing by 5.3% and in the mining and quarrying industry by 3.0%, while prices increases were registered in the electricity, gas, steam and air conditioning supply by 4.1%. In the manufacturing compared to January 2014, a price decrease was reported in the manufacture of basic metals by 3.1% and in the manufacture of food products by 1.6%.

Bulgaria's gross external debt at the end of 2014 was at EUR 39.55 billion (94.3% of the GDP), which is EUR 2.63 billion (7.1%) higher compared to the end of 2013, the Bulgarian National Bank announced by BNB. This growth is due to the increase in public debt. The gross external debt of the government in late December surpassed EUR 6 billion (14.4% of GDP), which was an EUR 2.621 billion (76.8%) increase. The current EUR 8 billion debt which the National Assembly approved last week is going to further deteriorate Bulgaria’s debt situation, which is nevertheless still one of the least indebted European countries.

	Mineral Fuels, Tailoring Products, Canning, Perfumery and Cosmetics, Furniture, Meat Products, Wine, Wood-processing Industry

Companies

Bulgaria's parliament scrapped preferential prices for new renewable energy installations as the country is struggling to cut deficits in the energy sector and keep a lid on consumers' utility bills. Wind power farms and photovoltaic parks mushroomed in 2011, after Bulgaria introduced generous subsidies for renewable energy, guaranteed for 20 years and committed to buy all the energy produced by them. But the incentives have weighed on the power costs in Bulgaria, which has met its 2020 target for a 16% share of renewable energy at the end of 2013. The granted incentives will still be valid for already operational wind and solar energy plants. The amendments of the energy law, approved by the parliament, also envisioned that the public power provider NEK will not be obliged to buy power at preferential prices from heating power plants that cannot prove energy efficiency. The renewable energy boom, incentives for co-generating power plants and high costs under long-term power purchase agreements, have soared NEK's deficit to BGN 3.3 billion, the energy ministry has said.

Several Bulgarian state institutions, including transport and competition regulators, but also the country’s National Revenue Agency (NRA), were preparing checks into the operations of taxi and car-sharing services firm Uber in the country’s capital city Sofia. Tsvetlin Tsvetanov, head of the car administration agency of the transport ministry, said that joint checks by the NRA, Interior Ministry and his agency would target all unregulated car transport services, which includes the one offered by Uber. The company launched its UberX ride-sharing service in Sofia in December 2014. The service connects any driver with an acceptable car (as opposed to Uber’s taxi services, where the company hires the driver) to prospective customers. Taxi companies have lodged complaints that Uber’s ride-sharing service was illegal because it did not acquire the necessary state transportation licences and did not subject its drivers to the same hiring requirements as taxi companies, which are mandated by law and include a psychological evaluation for all drivers.

US-based fashion brand Tommy Hilfiger will shortly open two stores in Bulgaria, its first ones in the country, in partnership with Greece's SARKK Group. The brand's first store, with a total area of 160 sq m, will open doors on February 27 in The Mall, while on March 5 it will open a store in Serdika Center, both in the capital Sofia. SARKK Group, Tommy Hilfiger's exclusive distributor for Bulgaria, Greece, Romania, Macedonia and Cyprus, has already set up a Bulgarian unit to enter the Bulgarian market. The company declined to disclose its future plans for development in the country. Tommy Hilfiger is already present in Bulgaria in department stores, but does not operate its own-branded store. Tommy Hilfiger was set up in 1985. It manufactures men's and women's clothing and accessories, among others. The brand is present in more than 90 countries worldwide.

Factory for production of skiing in Chepelare established itself as a world leader in the industry after it released more than 800,000 pairs each of two consecutive years. For six years the plant in the Rhodope town with 5200 inhabitants has been owned by the Finnish giant Amer Sports Group. The plant holds the record among the other shops in the world and produces twice more sports equipment than the other producer of ski of the company - in Austria, says manager Yordan Lambrev. After the purchase in 2008 Finns announced that in the Rhodope town will be made 1/5 of the skis in the world. Before becoming part of Amer Sports, the Chepelare-based plant produced 4 times less. Bulgarian ski are being sold from Australia to Canada. Studies of Amer Sports Group indicate that in Chepelare are produced most Alpine and runners compared to other plants of various corporations in China, Germany, Austria, France, Spain, Czech Republic, Ukraine, Finland and Japan.

Italian Bolton Alimenari and Bulgarian company Solid Co BG are leading battle with any legal means and before several institutions for which is the real owner of Rio mare brand in Bulgaria and who may produce and distribute canned tuna fish. While these disputes are on there are two different products of the same name and logo at the market and until recently packed similarly. In September 2014 Commission for protection of competition fined the Varna based company with BGN 100 thousand because in the same year Solid Co BG started offering cans under the name of Rio mare under its own design, which practically imitates packages of the original producer Bolton Alimenari. Bolton is an Italian company that creates the brand Rio mare. On the market on Bulgaria the company has been selling the popular canned fish since 1998. The official distributor is EOS-LD, which makes expenses for the advertising of the Italian product, as well. In 2006 though the brand is registered for Bulgaria in the patent department by the Bulgarian producer Kartel Trade, a company transferred later to Solid Co BG.

Europe

Swedish gross domestic product expanded 1.1 percent in the fourth quarter, more than twice the 0.5 percent pace estimated, the statistics office said on Friday. The news sent the krona up as much as 1 percent against the euro and 1.2 percent versus the dollar. The central bank is now in a “dilemma,” said Magnus Alvesson, head of economic research at Swedbank AB. “On the one hand, the Swedish economy is strengthening, and on the other hand the krona is strengthening, which pushes down inflation pressure in Sweden.” The central bank cut its main rate below zero this month for the first time in its history, and commenced bond purchases as part of a package of measures designed to end a deflationary cycle. Governor Stefan Ingves said the bank is prepared to do “a lot more” should it be needed.

America

SolarCity has created a fund expected to finance $750 million in residential solar projects with an investment from Google. The new fund will cover the upfront cost of solar panel installations for thousands of homeowners in 14 states and the District of Columbia, and make it possible for them to pay less for solar power than they pay for electricity generated by fossil fuels. "We're happy to support SolarCity's mission to help families reduce their carbon footprint and energy costs," said Sidd Mundra, Renewable Energy Principal at Google. "It's good for the environment, good for families and also makes good business sense." Google has committed $300 million to the new fund—its largest renewable energy investment to date. The new fund is the largest of its kind ever created for residential solar power, and the second such collaboration between the two companies.

Asia

Japanese factories churned out more machinery and electronic devices in January as export shipments rose, but lower energy costs due to cheaper crude oil failed to provide a boost to consumer spending. Weak retail sales and a cooling of already slow inflation underscored the fragility of the recovery of the world's third-largest economy. It also raised the potential for further monetary stimulus from the central bank. Core inflation, excluding volatile food prices, was 2.2 percent, compared with 2.5 percent the month before and the lowest in 10 months. Excluding energy costs and food, the consumer price index rose 2.1 percent, level with the previous two months. The inflation rate is overstated by a 3 percentage point increase in the national sales tax, to 8 percent from 5 percent, last April. The tax hike snatched the wind from the sails of the recovery Prime Minister Shinzo Abe has sought to nurture by massive monetary and fiscal stimulus.

The Samara Flag

The history of the flag is connected with the heroic struggle of Slavic peoples against Osman yoke in the Balkans. In the summer of 1875 an anti-Turkish rebellion broke out in Bosnia and Herzegovina, in April of the next year Bulgaria followed suit, and two months later Serbia and Montenegro started the war with Turkey. These events received a live response in orthodox Russia. Thousands of Russian volunteers went to the Balkans to support the Slavs in their fight for independence. The members of the Samara Duma came up with an idea to create a flag in order to present it to the Slavs fighting against Turks. A prominent public leader, member of the Duma, Pyotr Vladimirovich Alabin and his wife Varvara Vasilyevna took an active part in that. The artist Nickolai Efstafyevich Simakov made the sketch of an extraordinary gift. On one side of the red, white and blue canvas on a black cross, decorated with golden ornament, he showed the first Slavic teachers Kiril and Mephody. On the other side, he showed the icon of the Iverskaya God Mother, which gave the name to the nunnery later founded in Samara. It were the nuns who for free embroidered the flag.
The Samara flag has become a historic relic for Bulgarians. The flag was given the highest military award “For Courage” and is currently treasured in Bulgaria’s National Museum of Military History.

On that day:  Arbanasi monastery the Assumption of Virgin Mary