Financial news

Bulgaria’s Gross Domestic Product (GDP) has increased with 2.0% in the first quarter of 2015 compared to the same quarter of the previous year and with 0.9% compared to the fourth quarter of 2014 according to the seasonally adjusted data. According to the flash GDP estimates for the first quarter of 2015, the GDP at current prices amounted to BGN 17.141 billion.GVA in the first quarter of 2015 amounted to BGN 14.480 billion. In the structure of GDP by the expenditure approach the largest share has the final consumption (85.8%), which in nominal terms amounted to BGN 14.711 billion. In the first quarter of 2015 gross capital formation is BGN 3.430 billion and has a share of 20.0% in GDP. The external balance (exports minus imports) has a negative sign. In the structure of GDP by the expenditure approach the largest share has the final consumption (85.8%), which in nominal terms amounted to BGN 14.711 billion. In the first quarter of 2015 gross capital formation is BGN 3.430 billion and has a share of 20.0% in GDP. The external balance (exports minus imports) has a negative sign.

Bulgaria’s consumer price index in April 2015 compared to March 2015 was 100.7%, i.e. the monthly inflation was 0.7%. The inflation rate since the beginning of the year (April 2015 compared to December 2014) has been 0.9% and the annual inflation in April 2015 compared to April 2014 was 0.5%. The annual average inflation, measured by CPI, in the last 12 months (May 2014 - April 2015) compared to the previous 12 months (May 2013 - April 2014) was -0.8%.

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

Companies

HP has opened a 300-square metre Technology Lab in the Bulgarian capital of Sofia, part of the company's Technology Services Lab infrastructure. HP has invested BGN 10 mln in the Technology Lab located in Business Park Sofia. It is the largest investment of this kind the company made in Europe, Iravan Hira, general manager of Hewlett-Packard Bulgaria, said at the recent opening of the facility. The Technology Lab will provide support for local academic institutions such as the Technical University in Sofia, the St. Kliment Ohridski University, the New Bulgarian University, and the Sofia-based John Atanasov High School of Electronics. Students will be able to use HP's resources for learning purposes. HP has hired over 6,000 professionals in Sofia in the past nine years. The country offers the sixth lowest tax levels for a medium-sized company in the EU and the European Free Trade Association, according to PricewaterhouseCoopers.

Fructo has invested BGN 4.9 million in its enterprise in Sliven thanks to a completed project under the programme for development of rural regions. The company will get under the programme subsidy to the amount of 50% of the made investment. Part of the money will be used for construction of a new administrative building, which will be launched in a month’s time. The rest Fructo will use for purchase of a new line for manufacturing of fruit purees-mainly from peaches and apricots. The line will be put into operation in July. With it the Sliven-based enterprise will be able to manufacture 3000 tons of puree per season. Fructo supplies with fruit purees both Bulgarian and Romanian producers of juices. The company is the largest producer of peaches’ tutti-frutti in Bulgaria. In all parceling it represent 80% of Fructo’s products. Fructo Sliven maintains a small line for manufacturing of canned vegetables-about 5-6% of its total production. At present the company employs 110 people as in the summer season when produce is processed number of hired workers reaches 420 people.

Bosch group finalized deal for acquisition of expert in middleware ProSyst. Initially the Bulgarian-based company will keep its status of an independent company. It is planned in near future ProSyst to merge with Bosch Software Innovations GmbH, Bosch group’s software company. After buying the Bulgarian company, Bosch Software Innovations disposes with 660 employees in locations such as Berlin, Cologne, Immenstadt, Waiblingen, Chicago, Singapore, Shanghai and Sofia. The two companies will develop together software products and specific branch solutions that find application in company and Internet business models. The latter will be proposed all over the world. ProSyst’s software complements components for management of devices in developed by Bosch Software Innovations Bosch IoT Suite as it supports vast number of protocols.

A facility for the production of Spirulina through processing algal biomass is being built near Bulgaria’s southern city of Pazardzhik. In 3-4 months the company is to start producing the dietary supplement made from blue-green algae there. The food supplement is used a source of protein and other nutrients. The investment was made by the Magic Rose company under a project under operational program “Fisheries.” The total amount of the investment stood at nearly BGN 1.5 mln and the grant amounted to 60% of the actual investment cost. The company plans to produce around 40-50kg of dry mass ready for packaging in a closed-cycle installation. On Wednesday the company received advance payment of nearly BGN 450,000 under the project through which it had applied for EU funding.

The Bulgarian energy ministry said on Wednesday it has opened a tender for a contract worth up to BGN 333,300 for consultancy services on the construction of a gas link with Serbia. Bids for the EU-funded contract should be filed by June 8. Bulgaria and Serbia pledged to step up work on the gas link after in December Russia's Gazprom said it is abandoning the South Stream gas pipeline project planned to carry gas from Russia to central and southern Europe via Bulgaria, Serbia, Hungary and Slovenia. Bulgaria and Serbia signed a memorandum for the construction of the gas interconnector in 2012. Its parameters, however, need to be updated.

Europe

Deutsche Telekom has offered 900 million euros for the 49 percent stake the Slovak state is selling in fixed and mobile operator Slovak Telekom, two government sources said on Wednesday. The government cancelled a share listing last week, saying it received a better offer from a strategic investor than the 750 million euros it would raise through the initial public offering (IPO). It is expected to discuss the offer in the coming days. Deutsche already owns 51 percent of the company. The Slovak economy ministry declined to comment. Deutsche Telekom declined to comment on the Slovak Telekom stake specifically, but its chief executive Tim Hoettges said in a conference call after the firm's results on Wednesday that the company had previously stated that they would be interested increasing its stakes in its European businesses. He also said that Slovakia was an important part of its strategy, but it was too early to speculate about any outcome.

America

A flood of tax payments pushed government receipts to an all-time high in April and left the country with the largest monthly budget surplus in seven years. In its monthly budget report, the Treasury Department said Tuesday that the April surplus totaled $156.7 billion, up from a surplus of $106.9 billion a year earlier. It was the largest surplus since April 2008. Government receipts totaled $471.8 billion, the largest monthly total on record. Receipts for the first seven months of the budget came to $1.89 trillion, the biggest seven-month total ever. Tax receipts have climbed thanks to an improving economy, which has boosted individual and corporate tax payments. Through the first seven months of the budget year that began in October, the deficit totaled $282.8 billion, 7.7 percent below last year. The Congressional Budget Office is forecasting a full-year deficit of $486 billion, roughly on par with the previous year. From October through April, revenues totaled $1.89 trillion, up 8.9 percent from the same period last year.

Asia

Japanese car giants Toyota and Nissan are recalling a total of 6.5 million cars globally to replace potentially faulty airbag inflators made by Takata. Toyota said it was recalling just under five million cars, including the Corolla, Vitz and other models made between March 2003 and November 2007. Nissan is recalling about 1.56 million cars over the same issue. Both carmakers said the recall was for investigative purposes and no accidents or injuries have been reported. Toyota, the world's biggest carmaker, said the recall affected 35 of its models made around the world and that it would include 1.36 million cars in Japan. The move is the latest in the saga of potentially exploding airbags made by Japanese car parts maker Takata that has been linked to at least six deaths - all in Honda cars. After the recalls by Toyota and Nissan were announced, Honda - Japan's number three automaker - said it was also preparing to announce more car recalls related to the air bags. No details were given on the number of cars Honda would recall.

The Medieval Town of Cherven

The Medieval town of Cherven is the biggest medieval settlement having its own fortress, found in Bulgaria. It is located by the river of Cherni Lom in the region of Polomie. The first traces of man in this region date back to the old stone age. The antique era has also left its tracks. Thracians used to live here. Romans came to these lands in the first century. Later, Bulgarians built their fortresses and fortifications among the rocks. At that time (13-14th century), the Medieval town of Cherven was one of the most important military, administrative, economic, religious and cultural centers in Bulgaria. The first written monuments, mentioning the town, were written in old Bulgarian languages and are dated back to the 11th century. According to them, a king called Gega, also known as Odelyan, established on the territory of Bulgaria the towns Cherven, Nessebar, and Shtip. Cherven is a typical feudatory town, consisting of two parts – the Citadel and the actual town. The walls surrounding the town reach 3 m in thickness. The only completely preserved military tower in Bulgaria is located there. 11 churches have been found on the territory of the town, built in the style of the Tarnovo School of Architecture. Cherven was completely ruined during the Ottoman invasion in 1388, and never came to life again. It has been the object of systematic excavations since 1961.

On that day:  The Rogozen treasure