Financial news

Bulgaria turned out second in construction in the EU at a monthly basis in June. This is what Eurostat’s data points out. There is 2.6% increase of construction production as compared to May, as for the entire EU average result if a 1% drop. The first place is held by Romania with a 3.5% increase, while the third place is taken by the UK with a growth by 2.5%. Construction in Germany shrinks the most by 4.5%. At an annual bases Bulgaria’s results are better than the average of the EU and the Eurozone, which both register decline. The top position is held by Slovakia- with more than 24% increase, followed by Netherlands (16%), Romania (13%) and Sweden (11%). The relatively good performance of Bulgaria is mainly due to EU funds and the construction of roads and other infrastructure.

Under Finance Ministry-sponsored changes to the Public Sector Internal Audit Act all companies where the local or central authorities have a stake of 50 per cent or more will have to put in place units for internal audit. Internal audit units will have to be set up too by state-run companies with an annual turnover of more than BGN 10 million. These changes aim to protect better the interests of the state. The aim is to improve the financial situation of these companies and to protect the interest of the state, says the statement. It is also envisaged to establish special audit committees in all ministries and municipalities that already have internal audit. .

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

Companies

The creation of new online stores in Bulgaria over the past six months, from February to July inclusive, grew by nearly 10 percent. This was announced by the hosting company, SuperHosting.BG, citing data types online platforms installed by its customers. In the most popular system for online commerce OpenCart growth in installations was 10.94% in the second most popular system Magento it is 10.1% and the third – Prestashop installed sites have increased by 8.5%. Height has the use of the platform for online stores such SAAS – Shopiko, which is owned by the hosting company. In it, the number of installations has increased by over 25%. Growth in the launch of new online stores in Bulgaria is good news because it shows the entrepreneurship of our compatriots to create a real operating business projects and models. The construction of the online store is now much easier and SaaS platforms Shopiko down as many bar in terms of price and technical knowledge required to start a business online. Technological products and clothing remain the most frequently purchase goods over the Internet in Bulgaria in recent months, it is clear from the study of the hosting company. The exported data it is consistent and the upward trend in the industry.

The long-term plans of Swedish home furnishing retailer IKEA include building a production facility and a logistics centre in Bulgaria. Increasing orders to current Bulgarian producers and seeking out new suppliers are the first steps in the company's plans for Bulgaria. "The expansion of our partnership with Bulgarian companies has received green light and we are already working actively," Henrik Elm, IKEA's Global Purchase manager said. The company's plans till 2020 are to double its sales globally. Bulgarian parterns of the company are doing well and thus now there is increased interest in production of sanitary ware for bathrooms and kitchens and porcelain products for which the company is still looking for suitable providers in Bulgaria. In July, IKEA opened an order and delivery centre in Bulgaria's third largest city of Varna, on the Black Sea coast. IKEA's franchise for the Bulgarian market is held by Greece’s Fourlis Group. It opened its first IKEA store in the capital city Sofia in September 2011. IKEA, founded in Sweden in 1943, currently operates 367 stores in 47 countries.

Start-up Novalogy, one of which co-founders is Bulgarian presented its product AYO at an exhibit for portable devices in California WWCongress 2015. AYO analyses customers’ habits, such as sleep and activity of the user, and on that basis it defines which their critical points in their lifestyle are. The very device is glasses, which are held only for 20 minutes daily. Smart glasses make light therapy, improve sleep, increases energy and help to facilitate coping with jet lag. The project is funded by crowdfunding campaign, as in just two days Novalogy collected searched for USD 50 thousand.

Hungarian OTP Bank, which is the owner of DSK Bank is said to acquire some of the Greek banks in Bulgaria, Romania or Serbia. This was announced at a briefing late last week by Laszlo Benchik, Deputy CEO of the banking group. The statement was made in Budapest after the presentation of financial results of OTP Group in the second quarter. If this happens, the financial group may expand its presence in Bulgaria, where it already owns DSK Bank - the second largest credit institution in the country.

Still another change in the ownership of the Austrian company BT Invest, which is the majority owner of Bulgartabac holding, occurred in January 2015. The Austrian trade register shows that at the beginning of the year Lichtenstein offshore company Livero Establishment has sold its stake of 50% by BT Invest another Liechtenstein - Stiga Anstalt. All this happened without the authorization requested by the Commission for Protection of Competition and without notifying the investors in the stock company. No offers at an organized tender for the shareholders of the Bulgarian company was handed out, which is what the Financial supervision commission requires. Bulgartabac holding is the third largest public company on BSE with a market capitalization of around BGN 280 million.

Europe

Plans to introduce a French law that bans supermarkets from destroying unsold food and obliges them to give it to charity is irritating retailers who say they already make a big effort to fight waste. Under the law, stores of more than 400 sq m would have until July 2016 to sign contracts with charities or food banks, and to start giving them unsold produce. It follows a media campaign run by a young centre-right politician, Arash Derambarsh, who says he was outraged by the sight of homeless people last winter scrambling in supermarket bins. A local councillor in the Paris suburb of Courbevoie, Derambarsh began his campaign by collecting the unsold food and handing it out to the needy. He then launched an online petition, which helped create momentum for the new law. While broadly welcoming the idea, charities are also wary about ending up with more food than they can handle. Jacques Bailet, president of the French Federation of Food Banks (FFBA), also says there is a risk charities will not be able to cope. The FFBA already collects 35% of its donations from supermarkets, and Bailet praises retailers for their co-operation. 7.1m tonnes of food wasted in France each year, according to the Ministry of Ecology, 67% is wasted by consumers themselves and another 15% by restaurants, while shops and distributors waste 11% of the total

America

Suja Life LLC said on Wednesday that it had sold minority stakes to Goldman Sachs Group Inc's merchant banking division and to Coca-Cola Co, which will distribute its organic juices and smoothies. Details of the investments were not disclosed. Reuters reported earlier this month that Coca-Cola was nearing a deal to acquire a minority stake in Suja, valuing the company at about $300 million. The deal illustrates Coca-Cola's determination to get into fast-growing beverage categories amid sluggishness in its soft drinks business in recent years, especially in the U.S. market. Coke said in a statement that its investment would expand its portfolio to "meet people's varying beverage needs." It also would better position the Atlanta-based company to compete against PepsiCo Inc's Naked Juice brands. Last year, Coca-Cola said it was buying a 16.7 percent stake in energy drink maker Monster Beverage Corp. It also invested in Honest Tea and Zico Coconut Water, eventually acquiring both companies. Suja, which was founded in 2012 by four entrepreneurs, makes juices and smoothies under cold pressure to kill harmful bacteria and preserve nutrients and taste.Investors in the San Diego-based company include Alliance Consumer Growth Partners and Evolution Media Partners, as well as actors Leonardo DiCaprio, Jared Leto and Sofia Vergara

Asia

Persistently low oil prices have already inflicted economic pain on oil-producing countries. But with crude sticking near six-year lows, the risk of political turmoil is starting to rise. There are several countries in which the risks are the greatest – Algeria, Iraq, Libya, Nigeria, and Venezuela – and RBC Capital Markets has labeled them the “Fragile Five.”. Saudi Arabia does not belong in the same category of troubled countries, but it is also not immune to oil prices at multiyear lows, despite its vast reserves of foreign exchange. Saudi Arabia could run a fiscal deficit that is equivalent to about 20 percent of GDP. To finance public spending, Saudi Arabia has returned to the bond markets for the first time in eight years, issuing 15 billion riyals (USD 4 billion) in July, only to be followed up by an additional bond offering of 20 billion riyals (USD 5.33 billion) in August. The government plans on taking on more debt in the coming months as well. Still, Saudi Arabia has a market share strategy that it is pursuing, and there are no signs that it will reconsider. That could spell trouble for much more fragile oil-producing countries around the world

21st of August-Celebration of the town of Samokov

Samokov is located in the Sofia region, at a distance of 60 km from Sofia and at 10 km from Borovets. The city is the administrative center of the Municipality of Samokov. There are many prominent Bulgarians who were born there, including Konstantin Fotinov. On the 21st of August, the Bulgarian Orthodox Church celebrates Saint Simeon of Samokov. The day is celebrated as a feast of Samokov. Holly martyr Simeon of Samokov with the secular name of Simeon Popovich became Metropolitan of Samokov in the fall of 1734 and joined the fight against the Turks in Samokov Diocese. Center of the plot is Monastery of Dolni Lozen, named St. Spas" and director and chief initiator is Bishop Simeon of Samokov, who is supported by senior clerics. Around July 20, 1737 he was arrested by the Turks. The metropolitan home was robbed and broken and the Orthodox prelate was chained and thrown into prison. Closed in the Turkish barracks and tortured then, he was brought under the gallows behind the church "St. Sofia" on August 21 and hanged.

On that day:  Angel Karaliichev