Financial news

According to the preliminary data of Bulgaria’s National Statistical Institute, in February 2015 the index of production in sector ‘Construction’ calculated on the base of seasonally adjusted data was 0.3% above the level of the previous month. In February 2015 working day adjusted data showed a decrease by 1.8% in the construction production, compared to the same month of 2014. In February 2015 the construction production, calculated from the seasonally adjusted data, was above the level of the previous month. Index of production of civil engineering increased by 1.8%, while the production of building construction decreased by 1.2%.

According to the preliminary seasonally adjusted data, in February 2015 the turnover in ‘Retail trade, except of motor vehicles and motorcycles’ at constant prices increased by 0.5% compared to the previous month. In February 2015 the working day adjusted turnover in ‘Retail trade, except of motor vehicles and motorcycles’ grew by 4.2% in comparison with the same month of the previous year. In February 2015 compared to the previous month the turnover increased in the ‘Retail sale of automotive fuel’ by 5.4%, in the ‘Retail sale via mail order houses or via Internet’ by 3.6%, in the ‘Dispensing chemist; retail sale of medical and orthopaedic goods, cosmetic and toilet articles’ by 2.0%, in the ‘Retail sale of computers, peripheral units and software; telecommunications equipment’ by 1.6%. A decrease was registered in the ‘Retail sale of textiles, clothing, footwear and leather goods’ - 1.0%, in the ‘Retail sale in non-specialised stores’- 0.6%, in the ‘Retail sale of food, beverages and tobacco’ - 0.4%.

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

Privatization

Privatization and Post-Privatization Control Agency will soon not have the right to seize property of the privatized company and that of the buyers who have not fulfilled their commitments under contracts for privatization. This will happen after the promulgation of amendments to the Law on Privatization and Post-Privatization Control Act (PPCA), which were adopted at second reading in the Economic Committee on Wednesday. Until now the Agency had the right to form mortgage and attachment of property of a privatized company, if the buyer had not fulfilled his obligations. Because of the threat of criminal proceedings by the European Commission, the Government of Bulgaria offered to repeal the entire text of the law concerning the imposition of interim measures. Concerns of the agency are that they will be deprived of the possibility to impose sanctions for dishonest buyers of state property. The Agency haw imposed 460 mortgages that will become illegal.

Companies

A recovery and development plan for Bulgarian state-owned railway holding company BDZ until 2022 envisages investments of at least BGN 210 million in new rolling stock. The company's recovery plan, which it presented before the transport ministry and the trade unions, envisages investments in the purchase of 15 railcars, information systems development, repayment of the company's debts, and assets disposal. Under an optimistic scenario, the company's investments may reach BGN 430 million, which would allow for the purchase of 30 electric railcars and 16 railbuses. The plan outlines several options for the repayment of the company's debts, one of which envisages that the state back the company with some BGN 300 million, the statement said, without elaborating. Another option is the sale of BDZ's cargo unit, in which case the company would need some BGN 137 million in support from the state.

Bulgaria’s National Electricity Company (NEK) inked an agreement on changes to the long-term contracts with TPP AES Maritsa Iztok 1 and TPP Kontur Global Maritsa Iztok 3. The papers were signed by Executive Director of the NEK Petar Iliev; Chief Commercial Officer of AES Bulgaria Ivan Tsankov; and Garry Levesley, Chief Executive Officer of TPP Kontur Global Maritsa Iztok 3. The signing ceremony was attended by f Bulgarian Prime Minister Boyko Borisov and Minister of Energy Temenuzhka Petkova. “We agreed on cutting the price of available electricity, which NEK is obliged to purchase during the entire period of the contracts. The total decrease, which we managed to agree on, is 30% for both contracts,” Bulgarian Minister of Energy Temenuzhka Petkova said.

Bulgarian brewery Zagorka will turn into a plant for production of cider. The company launches a new initiative-production of cider. Zagorka has invested in a new production line which is operative already and is bottling the first bottles with the sweet alcoholic drink. Cider is a preferred drink on the local market, as most popular brands for now are two brands of Zagorka’s major competitors Kamenitza and Carlsberg. These are Carling and Sommersby respectively. The Stara-Zagora based company will start industrial bottling under the brand Strongbow. The Bulgarian brewery will produce the cider for the entire Balkan Peninsula. In that way from March Bulgaria’s neighbourly countries will drink Bulgarian cider. Owner of the brewery Heineken expands on the markets of Central and Eastern Europe with its cider drink. The Bulgarian company will start with three different flavours of the drink-apple, apple with with elderflower and apple with berries.

Steel panel radiators manufacturer Korado Bulgaria will invest EUR 4.0 million in a new production line for bathroom radiators at its plant in Strazhitsa, in northern Bulgaria. The new production line is expected to be launched by the end of the year. With it the company will complete the second stage of a BGN 25 million investment plan to expand its output capacity and product range. The new investment of the company will be funded with equity capital. The aim of Korado’s investment programme is Strazhitsa’s plant to turn into one of the strongest manufacturing facilities in production of radiators worldwide. Intention is Bulgarian company to enter top 10 of world producers of radiators. In November Korado Bulgaria opened a EUR 3.0 million production line with an annual capacity of 650,000 radiators at its Strazhitsa plant. Korado's Czech mother holds 98.2% in the company. It operates two plants in the Czech Republic.

Europe

Hundreds of flights to and from France have been cancelled as air traffic controllers begin industrial action. The SNCTA union - France's largest - called the two-day strike in a dispute over working conditions. Later on Wednesday, the DGAC civil aviation authority asked airlines to halve scheduled flights on Thursday. Short-haul flights have been the worst affected but France's largest airline, Air France, said long-haul flights were still operating. The airline added that 60% of medium-haul flights from and to Paris' main airport, Charles de Gaulle, would still operate, but that it would ground two out of three flights at Paris' second-largest airport, Orly. "Disruption is expected over the whole country," the DGAC said in a statement. Travellers have been advised to contact their airline. France's civil aviation agency said part of the dispute involves plans to raise the retirement age for controllers from 57 to 59 years.

America

China’s two largest insurance companies are making their first investment in U.S. commercial real estate, buying a majority stake in a $500 million project in Boston, according to a person briefed on the transaction. The investment by China Life Insurance Group Co. and Ping An Insurance Co., along with New York developer Tishman Speyer Properties, marks the latest sign that Chinese insurance companies are becoming a force in global real-estate investment. The Boston development includes a 13-story office building and a nine-story condominium tower with 100 units. The project in the city’s popular Seaport District will take up most of Pier 4, which was known for Anthony’s Pier 4, a popular restaurant that was closed two years ago as plans for redeveloping the site progressed. Rob Speyer, co-chief executive of Tishman Speyer, confirmed China Life and Ping An’s participation in the deal, but declined to disclose the size of their stakes.

Asia

Samsung Electronics said Monday it expects its quarterly earnings to decline yet again as it continues to grapple with tough competition in its core smartphone business. The South Korean electronics giant estimates its operating profit for the three-month period ending March 31 will be 5.9 trillion won ($5.4 billion), a decrease of 30 percent from the year-ago period and basically unchanged from the previous quarter. Samsung also estimates that its sales for the quarter likely fell about 12 percent year over year, to 47 trillion won ($43.2 billion). The company's profit estimate -- released today ahead of full earnings later this month -- beat the 5.5 trillion won analyst average compiled by Bloomberg. The guidance comes on the heels of a disappointing fourth quarter, which saw the company's operating profit decline 36 percent and the loss of its worldwide smartphone sales crown to Apple.

Temple St. Prophet Iliya – Gradevo village

The Temple St. Prophet Iliya, situated in the village of Gradevo (Southwestern Bulgaria, Simitli municipality), was constructed in 1849. The church is a stone pseudo-basilica with a nave and two aisles, with a narthex and a balcony over it. There are carvings and dragons over the southern and the western vaults. The interior has been decorated during the years by four icon-painters following the Bulgarian National Revival tradition. 36 wall-paintings from the end of the 20th century are well preserved in the altar. They were made by unknown artist and survived the earthquake in 1904. The iconostasis was made in a precious way. The carvings on the portals and frames are gilt. Eight interesting scenes from the Six Days are painted into oval medallions. The three carved crucifixes with dragon figures are put over the portals. The eight king icons were painted in 1849 by unknown artist.

On that day:  The medieval fortress Hotalich