Financial news

The average wage in Bulgaria increased four times from BGN 225 to BGN 800 over the past 15 years. The energy sector boasts the highest average wage, at BGN 2260, which increased five times and a half in the period 2000-2015. According to employers in Bulgaria, the situation is paradoxical because the energy sector registers losses of at least BGN 700 mln a year. High wages are also paid in the spheres of real estate and finance. At the bottom of the ranking are sectors such as the processing industry and agriculture. There is a huge difference between the average income in Bulgaria’s capital and the other regions. Bojidar Danev, Executive Director of the Bulgarian Industrial Association (BIA), argued that it was only normal to witness migration towards the capital. “We keep creating the economic grounds for protests and clashes in society,” he suggested.

At the Riga summit on 21 May Slovakia, Hungary, Bulgaria and Romania signed a Joint Declaration backing the idea of building the Eastring gas pipeline, designed to link Central with Southeastern Europe. However the name Eastring doesn’t appear in the document. In an exclusive interview with EurActiv on 7 May, Mirek Topolánek, former Prime Minister of the Czech Republic, provided ample explanation of the project. Eastring is a proposed pipeline, a version of which is 832 kilometres long, and runs across Slovakia, Hungary and Romania, while another version is 1274 kilometres long, and reaches Bulgaria. One of its advantages is that Eastring uses the existing infrastructure of Eustream on Slovak territory, which was completely renovated after the 2009 gas crisis.It is designed to transport gas in both directions, with a capacity of 20 billion cubic metres a year (bcm/y) at the first stage and 40 bcm/y at the final stage. Potential gas sources for forward flows are Azerbaijan, Turkmenistan, Iraq, Cyprus and Russia, while for the reverse flow, it is gas from Western European hubs.

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Companies

Russian company Lukoil plans to process Iraqi oil in its refinery in Burgas, according to the company's president Vagit Alekperov. On Wednesday was officially opened processing plant at USD 1.5 billion. Meanwhile, Alekperov announced that the company has no plans to join OPEC, nor coordinate with the cartel. After visiting Burgas, Alekperov had a meeting with the Prime Minister of Iraq. Lukoil has offered the Iraqi government a new approach to development of the deposit Nasiriyah. The idea is the first phase of the project to begin utilization of the available quantities of oil in the deposit, and then to use the funds for construction of a plant for processing.

Kazakh companies are interested in joint ventures with Bulgarian partners in the pharmaceutical and food industries. This became clear after a meeting in Astana between Bulgarian Economy Minister Bozidar Lukarski and his Kazakh counterpart Erbolat Dosaev. According to Dosaev Bulgaria has traditions in these two sectors, which can be used through the creation of joint ventures with Kazakh capital and Bulgarian technology and equipment. "Bulgaria can be the gateway for Kazakhstan to the EU market," Minister Dosaev noted. He informed that soon there will be a trade agreement between Kazakhstan and the EU. Minister Lukarski, on his part, emphasized that Bulgaria is very attractive for investments due to the country"s 10% flat tax. Kazakhstan, however, provides tax exemption for 10 years following the start of businesses. The two ministers also agreed to lobby both at governments for opening a regular air route between Kazakhstan and Bulgaria.

A German company opened a large sewing factory in Bulgaria's northwesternmost province of Vidin, district governor Momchil Stankov revealed. The enterpise will start with 150 jobs, but in five years it plans to employ 600 people. The company will produce shirts for prestigious brands and has an has experience of 50 years in this type of production. This is the biggest investment in Vidin in recent years, added Momchil Stankov. Vidin had a big sewing factory - Vida Style, which has also made shirts for Europe's largest retail chains. By the end of 2015 Vidin will see two more large investments, according to Mr Stankov. He refused to give more details saying that the investors investors in question are currently examining the conditions and workforce opportunities in the region.

Bulgarian courier company Speedy will work for development of a network in Turkey. In few days’ time it will begin to offer services with a joint price between Bulgaria, Greece and Romania. Until now Speedy has been offering uniform prices for deliveries from and to Bulgaria and Romania. Now Greece will be added in, too. Another important new service is the company’s partnership with one of the largest pallet networks in Europe- Palletways. In that way from July Speedy’s offices will offer their customers direct transportation of pallet deliveries to each country in Europe. Terms for delivery from and to Greece will be up to 48 hours. The same is valid for packages to and from Bulgarian and Romanian regions-deliveries will be made no matter whether they are from Bucharest or Sofia or are out of the capital cities. The service is with the same price for Bulgaria, Greece and Romania and is available from the 1st of June. Through the contracted partnership Greek clients will have access to international delivery network of DPD in Europe.

The Bulgarian unit of Danish beer maker Carlsberg launched a BGN 5 million project to install new wastewater treatment equipment at its brewery in Blagoevgrad. The new equipment will be put into operation at the end of the summer season. Carlsberg Bulgaria product portfolio includes the Shumensko and Pirinsko brands, alongside the international beer brands Carlsberg, Tuborg, Budweiser Budvar and Erdinger, and the Somersby cider. Since the beginning of the year sales volume of the Pirinsko brand have increased 10%, making it the fastest growing beer brand together with Shumensko. Carlsberg operates two breweries in Bulgaria - in Blagoevgrad and in Shumen. The Danish brewer acquired a majority stake in the Shumen brewery in 2002 and, later that same year became the majority owner of the brewery in Blagoevgrad. The two breweries were merged into Carlsberg Bulgaria in 2004. They have a combined annual production capacity of 1.8 million hectolitres

Europe

The Russian economy is set to contract by 3.4 per cent this year but will rebound in 2016, posting 0.2 per cent growth, the International Monetary Fund said on Thursday. Ernesto Ramirez Rigo, the head of a two-week IMF mission to Russia, said the fund had revised upward its outlook for Russian economic growth and inflation on the back of improved economic data and the recent strengthening of the rouble. “The authorities’ measures and the anti-crisis package have helped to stabilise the situation and along with that has come a more stable currency. And obviously with that stability has come a stronger confidence.” The fund said it now expected Russian inflation to fall from its current level of about 16 per cent to 12.5 per cent by the end of the year. The improved forecast echoes brighter predictions for the Russian economy from both the Moscow authorities and independent economists.

America

As part of his quest for a mega merger, Fiat Chrysler Automobiles Chief Executive Sergio Marchionne sent an email to General Motors Co Chief Executive Officer Mary Barra in March suggesting combining the automakers but was rebuffed. Quoting two people with knowledge of the email, the Times said it detailed how global carmakers needed to consolidate to save money and suggested a merged GM and Fiat Chrysler would cut billions of dollars in costs and create an automotive giant. Marchionne, who leads the world's seventh-largest carmaker, was contemplating a super merger, possibly in the United States, to plug his company's weaknesses and cement his legacy before stepping down in early 2019. The New York Times said the idea of a merger did not interest Barra or any other G.M. executives. Instead, Mr. Marchionne's request for a meeting on the subject was flatly turned down.

Asia

Lenovo Group Ltd, the world's biggest PC maker by sales, said its annual net profit rose 1 percent to $829 million, slightly below analyst expectations, as intense competition in the Chinese smartphone market eroded margins. Analysts had forecast a net profit of $857 million. Revenue during the 2014/15 financial year rose 20 percent to $46.3 billion as Lenovo expanded its share of the shrinking PC market to one-fifth. In the fourth-quarter alone, revenue rose 21 percent to $11.3 billion. Lenovo said PC sales, by far the group's largest business, rose across all geographic regions but targeted Europe in particular as an area of potential growth. PC sales to businesses rose 3 percent year-on-year despite a 3 percent drop in the broader market, it added. Speaking to reporters in Hong Kong on Thursday, Yang acknowledged Lenovo's smartphone business was flagging on its home turf, a slowing market characterized by intense competition and razor-thin margins.

Chiflik

The resort village Chiflik is situated at the most upper course of the Beli Osam River, at the altitude of 750 m, at the foot of Middle Balkan, at the territory of Troyan Municipality. It raises some 160 km northeastern from Sofia, and 15 km southwestern from Troyan. The nature here is extraordinary beautiful, with alpine character. Some natural phenomena, part of the Central Balkan National Park are situated here. The winter here is mild, and the summer – cool, and the air – crystal clear. Close to the village of Chiflik, there is a thermal spring with hot water of 52°C, having quite valuable healing qualities. By structure, it resembles the mineral water of the springs in Gorna Bania, Bankia, Hissar, Momina Cheshma, and Varshets, and may be used for healing a number of diseases.

On that day:  National Museum of Military History