Financial news

Government adopted at its meeting Order to establish and submit of deductions from profits of state enterprises and companies with state participation in the capital of financial 2014 to the state budget. In accordance with parameters provided in the State Budget Law for 2015, the percentage of deductions from profits is 60%. From the scope of the order are excluded hospitals, taking into account their specific and exclusive dependence on a limited number of sources of funding. The Order provides conditions for the implementation of the revenue part of the state budget for 2015 of non-tax dividend income.

Bulgaria posted the biggest rise in sales of commercial real estate in the EU last year, a new study has shown. According to the latest edition of Cushman & Wakefield's International Investment Atlas, commercial properties worth USD 286 mln were sold in Bulgaria last year, an increase of 226% over 2013. The recovery of the commercial property market in Bulgaria had accelerated in 2014 led by a rise in demand and occupancy rate in the segments of office and industrial properties, Forton CEO Michaela Lashova commented. This in turn led to a rise in investors’ interest in launching new projects as well as acquiring existing commercial properties that operate and generate revenues, she added.

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

Companies

Bulgarian investment company Holding Nov Vek will replace agribusiness company Zarneni Hrani Bulgaria in the blue-chip SOFIX index, the operator of the Sofia bourse said. Holding Nov Vek will become a SOFIX component as of March 23. The SOFIX index tracks the 15 most liquid shares on the BSE. Also starting March 23, cellulose producer Svilosa, fertilizer producer Neochim, Energo-Pro Sales, car battery manufacturer Elhim Iskra, and FairPlay Properties REIT will be removed from the BGBX 40 index and will be replaced by machine engineering company Hydraulic Elements and Systems, cable maker EMKA, Fund Estates REIT, hardboard maker Fazerles, and Holding Varna. BGBX 40 includes the 40 most traded shares on the Sofia bourse.

Bulgaria’s National Electric Company (NEK) spends the most on renewable energy and the least on electricity produced by the Kozloduy Nuclear Power Plant (NPP), according to Petar Iliev, Executive Director of NEK. Iliev appeared Wednesday at a hearing before the ad hoc parliamentary committee on establishing the current situation in the energy sector. Iliev made clear that 3% of NEK’s expenses went to the cheapest electricity generated by the Kozloduy NPP, while renewable energy plants accounted for a share of 26% of the company’s spending. He pointed out that the deficit at NEK increased further due to the obligation of the company to buy all the electricity produced by certain power plants, regardless of the fact that in some cases the output exceeded the quotas set by the energy watchdog. Iliev condemned the quotas as unrealistic, stressing that in some cases overproduction amounted to 74% and the surplus had to be bought at preferential tariffs.

Investment fund LAUNCHub is intensively looking for startups and promising companies in which to invest. Till 23rd of March each entrepreneur with a developed project in the digital area may apply for funding to the amount of EUR 200 thousand against minority stake. The seed funds searches for startups in the field of education, health, sports, trips, etc. After application is over, shareholders in the Fund will consider all projects and will choose which to participate in the second annual event - Long Weekend in April. There for a pewriod of three days entrepreneurs will work with specialists and mentors who will gie apllicants valuable advice on the development of their ideas. The final stage of the selection ends when the partners decide in which companies they will make investment. Deadline for absorption of funds for the startups under JEREMIE is due at the end of 2015. EUR 21 million totally was rendered under the funds for risk investment LAUNCHub (EUR 9 million) and Eleven (EUR 12 million).

Bulgarian construction company Andezit has cut its stake in diversified conglomerate Holding Varna to 40.3% from 45%, the holding company said on Tuesday. Andezit has sold 250,000 shares, equal to a 4.77% stake, in the holding company, Holding Varna said in a bourse filing.The value of the deal was not disclosed. Andezit currently owns 2,112,001 Holding Varna shares. Holding Varna, established in 1996, operates in tourism, cable TV and real estate, among others. Burgas-based Andezit was established in 1994. Its line of business is construction, production of concrete products and aggregates, trade with construction products and logistic services.

Bulgarian company Doverie Capital has sold its stake of 5.07% in medical products maker Momina Krepost, its parent company Doverie United Holding said. Doverie Capital has sold 85,770 Momina Krepost shares, Doverie United Holding said in a bourse filing, without disclosing the value of the deal, nor the buyer. In a separate development, Doverie Capital further decreased its stake in drug producer Medica to 62.58% from 65.07%, after selling on March 10 a total of 250,000 Medica shares, equal to a 2.48% stake in the company, Doverie United Holding said in another statement. Earlier this month Doverie Capital sold another sold 605,000 Medica shares, equal to a 6.01% stake in the pharmaceutical company. Earlier on Tuesday, insulation materials producer Hydroizomat also said it has sold its stake of 10.14% in Momina Krepost.

Europe

Swedish telecom giant Ericsson is set to cut 2,200 jobs in Sweden. Workers will be laid off at the company's offices in Stockholm, Katrineholm, Borås, Kumla, Göteborg, Linköping and Karlskrona. Sweden's capital Stockholm will be hit the worst, with 1,125 staff being let go. 200 jobs will go in Borås, 140 in Gothenburg, 130 in Kumla, 120 in Linköping and 85 in Karlskrona. The facility in Katrineholm will shut down completely. According to the company, negotiations with unions are underway and workers affected by the layoffs will receive notice in June. "This hits incredibly hard at all those who work at Ericsson and have loyally worked for the company's development. It also hits all the towns affected and especially Katrineholm," the chairman of Swedish union IF Metall, Anders Ferbe, said in a statement. "We have seen factory upon factory being dismantled in the telecom and pharmaceutical industries - which used to be the pride of Sweden. There is a risk that research and development will go down the same path if we don't act," he added.

America

Venezuela's central bank is in talks with Wall Street banks to create a gold swap that would allow it to monetize some $1.5 billion of the metal held as international reserves. The move would help the government of President Nicolas Maduro boost its hard currency position as the OPEC nation struggles with soaring consumer prices, chronic product shortages and a shrinking economy caused by low oil prices. Under the swap, the central bank would provide 1.4 million troy ounces in exchange for cash, said a central bank source. After four years, it would have right of first refusal to buy the gold back, added the source, who asked not to be identified. The ongoing talks involve at least two institutions, Bank of America and Credit Suisse. The banks and Venezuela's central bank did not immediately respond to requests for comment.

Asia

Every day, two quality-control supervisors monitor four robots tirelessly assembling remote-control devices for home appliances at a Midea Group factory in Foshan, in the southern Chinese province of Guangdong. The robots recently replaced 14 workers on the plant’s assembly line for remote controls. And soon, according to Midea’s home-air-conditioner division deputy general manager Wu Shoubao, more robots will arrive to replace the quality-control supervisors. Midea, a major appliance maker, is in the forefront of a full-blown charge by China’s manufacturing sector into robot-powered factory automation. Companies nationwide over the past five years have ramped up robotics in the face of labor woes, such as worker shortages and rising wages, and to cut their production costs. In the process, they’ve helped build a new market for Chinese robot manufacturers that are competing against multinational rivals.

Melnik

Melnik is located in a mountain region in the southwest foot of Pirin Mountain. It is surrounded by amazing sand pyramids, which are among the most interesting nature phenomena not only in Bulgaria, but on the Balkans as well. The area was settled in the Thracian Age. During that time the Thracian tribe called Medi lived there. Later, in the 5-6th century, the Slav tribes settled the area and gave the name of the town. In the middle of the 9th century, during the reign of Khan Presian, the town was integrated with the Bulgarian state and became an important strategic point. About 1209, Melnik experienced great progress, when it was a capital of the independent feudal principality of Despot Aleksius Slav. Later, in the time of the Bulgarian Revival, the town became economical and spiritual center with more than 25 000 inhabitants, about 1300 houses and more than 70 churches. The old houses of Melnik impress with their architecture, size, decorations and wine-cellars. Among the most famous houses are the Kordopulova House, the Pashova House, Veleva House, etc. Also interesting sights are the ruins of St. Nikola Monastery from the 13th century, the Slavova Fortress from the 13-14th century, the Roman bridge, the old sweating-bath, and the remains of several churches.

On that day:  NAO-Rozhen The Velyanova house in Bansko The church St. Stephan in Nessebar