Financial news

Construction business marks slow recovery after the global financial and economic crisis. This shows a research of the National Register for New Construction and Reconstruction at the National Statistical Institute. Analysts state that this is mainly due to the rise of residential and industrial buildings in major cities. However, considering that currently there is a deficit of quality new construction, and this gives courage investors to start big projects. The data show that the stirring in this area was more visible for smaller sites that are mostly single-family houses. Official statistics show that last year the growth is almost 19 percent. It turns out that the trend continues in 2015. Only in the first quarter started construction increased by almost 6 percent compared to the first three months of 2014. However, the amount is far from the levels in 2007.

Global economy will continue growing at a good speed, but Europe and particularly Bulgaria face a lot of challenges, participants in the Coface risk management conference in Sofia commented. Coface expects that Bulgarian economy will grow 1.4% in 2015 mainly thanks to household demand. Global economy will grow 3% compared to 2.8% for last year. The euro area will report the lowest growth. One of the main factors for economic growth will be oil price. The oil price will affect oil importing countries well, but oil exporting countries such as Russia, Latin American countries, the Middle East and part of Africa will suffer losses. Bulgaria will profit from lower prices of products dependent on oil.

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

Companies

American International Group, Inc. (AIG) officially opened a new Shared Services Centre (SSC) in Sofia, Bulgaria, during a grand opening ceremony attended by Peter D. Hancock, President and Chief Executive Officer of AIG, and Meglena Kuneva, Deputy Prime Minister of the Republic of Bulgaria. The centre will support AIG's insurance operations in 17 countries across Europe with Claims, Policy Servicing, Accounts Receivable, and Travel Assistance services. AIG currently employs 350 people in Bulgaria, 98 percent of whom are university graduates, and all speak at least one other language. By the end of 2015, AIG plans to increase staff numbers in Bulgaria to approximately 500. American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions.

Shumen-based Heat supply will be declared bankrupt, after yesterday all creditors voted against the second recovery plan of the company proposed by the owner engineer Dimitar Dimitrov. It is imminent that the company’s bailiff will assume full control over the Thermal power plant and will schedule auctions for the sale of assets. Thus the company will be declared bankrupt. In the beginning of March Dimitar Dimitrov said that Heat Supply Shumen will start working till the next winter period. The company’s recovery plan envisaged decentralization of heating facility in Shumen. Plans were boiler gas in substations in blocks on Heat supply Shumen’s account to be constructed. Plan’s completion was assessed to no more than BGN 3-4 million. Heat Supply Shumen’s obligations to creditors are to the amount of BGN 23 million. Bulgargaz and National Revenue Agency are its biggest creditors.

After Polish shoe retailer CCC opened its first two stores in the end of March in Sofia and Ruse, now the Polish company plans expansion in even more Bulgarian cities. The company is one of the largest in Europe in production and retail trade with shoes. In the country CCC opened at first a store in the newest Sofia-based mall, called Sofia Ring Mall. Shortly after that a store in Mall Ruse was opened. The company’s aim is to open lots of stores in the fastest way possible in order to fully cover the market. Expansion will be focused on cities such as Burgas, Stara Zagora, Sofia and Varna, as by the end of the year 6 to 7 new stores are to be opened. The Polish retailer is one of the few huge brands that entered the country in the first quarter of the year. CCC’s price strategy is related to offering high-quality products at reasonable price. The company is capable to accomplish that goal as one fourth of its production takes place in its own factory. That is actually where its most popular line for shoes and bags from leather under the name of Lasocki are manufactured.

Kempinski, which manages the Sofia hotel Marinella (formerly Kempinski - Zografski) will leave and the control will switch to another brand. According to a report of the consultancy company Kohl & Partner Hotel & Tourism Consultancy International, the new owner Victoria Group VM of businessman Vetko Arabadziev and the international brand negotiate termination of the agreement for the management of the popular with its informal name The Japanese Hotel. The hotel management reported that they negotiate with the brands Hayat, Marriott, Rixos, Accor and others. The intention of the new owners to participate in the management of the hotel, which has so far been led by two managers from Germany. According to the consultants, the hotel will be renovated and will double its capacity. This means that the brand Kempinski will remain represented by only one hotel in Bulgaria - Grand Arena in Bansko.

Home furnishing retailer IKEA Bulgaria said it had launched an online store. The online store, launched on April 22, offers 7,000 items representing 80% of IKEA's standard assortment, IKEA Bulgaria said in a press release. It is also accessible via mobile devices. The IKEA franchise for the Bulgarian market is held by Greece’s Fourlis Group. It opened its first - and so far only - IKEA store in the capital city Sofia in September 2011. IKEA, founded in Sweden in 1943, currently operates 367 stores in 47 countries.

Europe

U.S. and British regulators fined Deutsche Bank $2.5 billion and its British subsidiary pleaded guilty to criminal wire fraud on Thursday as it became the eighth financial group to settle allegations of rigging interest rate benchmarks. The record penalty in a seven-year investigation that has shredded the banking industry's reputation takes the total fines imposed on some of the world's top financial institutions to more than $8.5 billion. Twenty-one traders and brokers face criminal charges. U.S. regulators fined Germany's largest bank $2.175 billion and British watchdogs imposed a 227 million pound ($341 million) penalty for its role in a scam to manipulate the London Interbank Offered Rate (Libor) and its Euribor cousin - together benchmarks for hundreds of trillions of dollars of financial products and loans worldwide.

America

Coca-Cola Co reported better than expected profit and revenue, helped by price increases in North America, as the beverage maker struggles to grow amid sluggish demand for soda. The world's largest beverage maker showed the first revenue rise in nine quarters and shares gained 1.3 percent to $41.30 in midday trading. U.S. sales of carbonated soft drinks have been declining for nearly a decade, with consumers shifting away from diet soda because of health concerns. Global Diet Coke sales volumes were down in the quarter, while Coke Zero, Sprite and other brands showed growth. Coke has called 2015 a transition year as it attempts to figure out how to increase soda sales. It kept its 2015 forecast unchanged Wednesday and said it will spend up to $3 billion this year buying back stock. The company has said it is targeting $3 billion in annual cost savings by 2019 and plans to reinvest part of that in marketing.

Asia

The People’s Bank of China may have tripled its gold stockpile since April 2009, when it last gave an official number, which Bloomberg Intelligence estimates to be 3,510 metric tons, second to United States 8,133.5 tons of gold. The figure, almost triple the 1,054 tons of gold reported in 2009, was calculated based on trade data, domestic output, and China Gold Association figures by Bloomberg Intelligence. China, which only reports its gold stockpiles every few years, made a similar move between 2008 and 2009, when it just about doubled the bullion stock. Including gold, China is estimated to have $3.8 trillion in currency reserves, which are also kept secret. The massive increase may be a move to make the yuan more competitive against the US dollar. The People’s Bank of China Governor Zhou Xiaochuan has made it an unspoken mission to turn the yuan into a global currency, and an IMF reserve currency.

Tuida Fortress

The ruins of the early-Byzatine fortress Tuida are spread over an area of 40,000 sq.m on the Hisarlaka hill in the Northeastern part of the town of Sliven (East Balkan Mountain). Later the fortress was known as Tsoida and Soida. It was constructed probably in the second half of 4th century. The archeologists have found here tools and ancient-Greek inscriptions proving the existence of a Zeus-dedicated sanctuary. A seal of King Boris Mihail was also found here. In 13th century the fortress was abandoned and never used again. Today, the visitors may see the fortified walls, the four circle towers with semicircle antechambers, two rectangular towers – gates, the foundations of an administrative building, a basilica, as well as fragments of mosaic and different tools and coins, protected in the Sliven Museum of History.

On that day:  Hisarlaka Fortress 'The Veil of Mother of God' Church