Financial news

By an average of 7.8% would increase the minimum insurance income in 2016 of economic activity in which employers and trade unions have already reached agreements, announced the Bulgarian Industrial Association. Business representatives and trade unions in 39 industries employing 956 thousand people have agreed to an increase in specific sectors. However, the agreement covers less than half of economic activity and the number of workers. Those who disagree, have until September 10 to do so. If not, Labour Minister Ivaylo Kalfin will determine the rate of increase administratively. The practice is to apply the reached in the process of negotiations medium rate and Kalfin view that salaries in Bulgaria needs to grow and that is good for the economy. BIA reported that so far the largest increase is in the thresholds of the employed in the manufacture of grain mill and starch products - 18.1%. There, the average insurance income increased by more than BGN 100. There is also serious growth in postal and courier activities - 17.6%.

GDP growth in the second quarter outpaced the increase registered in the first three months. So in the second quarter of 2015 real GDP increased by 2.2% yoy, with growth of 2% in the first quarter. Final consumption increased by 2.1% yoy, while gross fixed capital formation increased less – by 1.4%. Net exports was negative (-1.2% of GDP), although due to the weak euro for the period it shrank compared to the first quarter, when net exports was -5.8% of GDP, according to the monthly economic analysis of Raiffeisenbank. The employment rate rose by 0.8 percentage points annually in the second quarter of 2015, reaching 48.7%. In turn, the unemployment rate fell 1.5 percentage points to for the period to 9.9%. "Both indicators reflect the positive dynamics of the GDP during the quarter and are expected to continue to gradually improve," said economic analyst Emil Kalchev. On the supply side in the second quarter production of the industry grew by 2.7% yoy. Unlike industry, construction fell by 6.7% yoy in the period for the second consecutive quarter.

REFA qualification course Module 1: 05-16 October 2015 Module 2: 27-30 October, 04-07 and 11-12 November 2015 Corporate organization and management and optimization of the production processes Second module: Production Data Management Topic: Production Management The Production Organization Production Planning and Control Workplace Analysis EU-guidelines on Work Safety, Health Protection and Safe Products http://refa.bia-bg.com/, tel. 981-45-67, Sofia

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Concessions

Bulgaria's government awarded three concessions and five permits for mineral mining on Wednesday. Stone Local Group was awarded a 35-year concession for the extraction of limestone from the Kamen Dol field in the northeastern part of the country, the government press service said in a press release. Concession fee payments for the whole term of the concession are expected to exceed BGN 777,770  whereas planned investment in the limestone field will exceed BGN 925,000. Another local company, Water Engineering 2000, obtained a 25-year limestone mining concession for the Byalata Skala field near the city of Pleven, in the northcentral part of the country. The proceeds from the concession payments are expected to amount to BGN 2.1 million and planned investments will exceed BGN 2 million. The government also granted a 25-year limestone and dolomites mining concession to AS-Stones for a field near Stara Zagora, in the southeastern Bulgaria. Total proceeds from concession payments are expected to exceed BGN 2.2 million and investments are seen at BGN 2.3 million.

Companies

Although the silent debate about the future fate of the seventh block of NPP Kozloduy the construction of the reactor is included in the regular report of KEVR to the Agency for the Cooperation of Energy Regulators and the European Commission (EC) last year. The document says that in the most optimistic possible option, the new reactor at the site of NPP Kozloduy is expected to come into operation after 2025. The reason for this are the long-ordination procedures that lie ahead, explain the experts. "This is supported by the European Commission forecast to 2050, in which more nuclear power in Bulgaria is foreseen after 2035", according to KEVR. The Commissioner added that the option of a seventh reactor at the site of NPP Kozloduy will be taken into account in the next update of the plan for development of the electricity network.

UK-based Palletways Group has announced an expansion to its pan-European operations by adding Bulgaria and Romania. This latest expansion means that Palletways now delivers to 20 European countries, according to the specialized website motortransport.co.uk. Palletways describes itself as Europe’s largest provider of express palletised distribution services. It currently handles more than 30,000 pallets across Europe every day and cross border volume growth is predicted to reach 50% this year. The group recently added Poland and the Baltic states to its operations and is looking to further develop its geographical footprint in Hungary, Switzerland and the Nordic countries.

CEZ Distribution Bulgaria AD has invested BGN 348,000 in Kyustendil in the first seven months of the year. Two overhead lines 20 kV were repaired 6 beacons to earth and short circuits were fitted, a planned maintenance of 304 transformer stations were implemented, etc. So far CEZ has repaired a total of 60 overhead power lines on the territory of Western Bulgaria, replaced the 25 medium voltage cables and 80 distribution boxes, installed 231 new switchgears. In total it has installed 36 pieces beacons to earth and short circuits with remote data transmission .

Dispute for unfair practices between manufacturers of windows joinery has been applied to the Commission for Protection of Competition (CPC). The proceedings are based on the appeal of Rollplast Group against rival Plast Market. Reference to the Commercial Register shows that both companies operate in the market for production, sale and installation of aluminum and PVC joinery. According to the claim of Rollplast, competitors used misleading and comparative advertising to promote their products, which is prohibited under the Law on Protection of Competition. In its complaint Rollplast also points out imitation products by Plast Market. CPC has already begun examination of the case.

Europe

Lego credited a cohort of ninjas and elves, as well favorable swings in foreign currencies, for a 31% jump in first-half net profit. The privately-held Danish toy maker company, which doesn’t release quarterly results, said net profit rose to 3.55 billion Danish kronor ($537.5 million) in the first half from 2.72 billion kronor in the same period a year ago. Revenue rose 23% rise to 14.14 billion kronor. Lego said the rise in earnings was fueled by strong sales of its Lego Ninjago and Lego Elves sets, but also the weakness of the Danish krone and the euro against most major currencies. The fluctuations have had “a significant impact on our results, with our Danish krone-reported sales figures increasing an additional 5% purely due to currency movements,” Lego said in a statement. Lego said the underlying revenue growth of 18% was encouraging because it compared with a strong first-half in 2014, during which products derived of the Lego Movie had boosted sales.

America

Citigroup Inc agreed to sell its consumer banking business in Hungary to Austria's Erste Group Bank AG as the third-biggest U.S. bank by assets continues to divest non-core operating businesses. The sale includes Citi's retail banking, consumer loans, and cards businesses and the transfer of consumer banking employees, the U.S. bank said on Wednesday. Citi did not disclose the financial terms of the deal but said the sale was not material. Reuters reported in June that Erste Group was on track to buy Citigroup's Hungarian retail portfolio. Citi has pared back internationally in recent years, pulling out of retail banking in long-established markets such as Japan.

Asia

China is imposing fresh controls to prevent too much money from leaving its shores, escalating its battle against a deepening slump in the world’s No. 2 economy. The country’s central bank said Tuesday that it will make it more expensive for investors to pressure the yuan to weaken against the U.S. dollar. A weaker currency generally prompts investors to look elsewhere to put their cash and would complicate the government’s efforts to generate spending and bolster economic growth. Some of the country’s largest lenders, including Bank of China Ltd. and China Citic Bank Corp. , are beefing up their internal checks on large foreign-exchange conversions by corporate clients, according to Chinese banking executives. Chinese companies can exchange yuan for foreign currencies only for approved business purposes, such as paying for imports or approved foreign investments.

Shushmanets Necropolis

In 1996 three Thracian tombs from the Shushmanets Necropolis were discovered near the town of Shipka thanks to the sponsorship of the Helvetia foundation, Switzerland. The tomb from the Griffins’ hill is the most preserved stone beehive tomb, used in V-IV century B.C. as a mausoleum. The two-leaved door has been broken during the plundering of the mold. The tomb was named Helvetia in honor of the Swiss foundation. The floor and the walls are plastered with a thick layer of nail float – boiled milk mixed with marble dust. It is constructed from big stone blocks held together through iron clutches. It includes a long corridor, a rectangular antechamber and a burial chamber. The antechamber and the chamber are covered by a two-slope roof and are plastered in fine whitewash coat, decoratively segmented into rectangular, imitating marble blocks. The two sacrifice furrows and the two buried horses of the Thracian ruler have been preserved at the entrance of the tomb. The Thracian vault Shushmanets consists of a burial chamber and an antechamber with half-cylindrical vault arch, propped up by a Dorian pillar. It is also plastered with nail float in red and white. The central part of the tomb is propped up by an Ionian pillar, serving as a construction element with seven semi-pillars in the vault arch part.

On that day:  Zlatitsa Happy Birthday to Vassil Naidenov