Financial news

The average salary in Bulgaria increased by 6.6% in the first half of 2015 from 1.7% for the same period of the previous year, according to report of the Bulgarian National Bank (BNB) for the period between January and July. According to the data, there is a revival in the labor market, the number of employed increased by 0.5% yoy. Meanwhile, unemployment shrank to 10.2% from 12.2% in 2014. Moreover, the central bank reported an improvement in labor productivity to 2.2. BNB reported an improvement in economic activity in the country during the first six months of 2015, growth of gross domestic product (GDP) accelerated to 2.7 per cent against 1.6 per cent last year. The largest contribution to the positive result is the net exports. Meanwhile, during the period deflation in consumer prices was limited to 0.6% in June 2015 from 2.0% in the previous year.

Rating agency Standard&Poor's has affirmed Bulgaria's long- and short-term sovereign credit ratings to BB+/Bm respectively. In a statement, it has noted the country's financial sector continues to face important challenges, but has also pointed to the "efforts... to mitigate risks, including an asset quality review slated for 2016". It has also predicted 3% growth for the Bulgarian economy this year. Demand for Bulgarian exports has also been strong, with export volumes increasing by nearly 8% in the first three quarters of 2015. These factors have contributed to real GDP growth of 3% year on year in the first nine months of the year. We have accordingly revised up our estimate of real GDP growth to 3% in 2015, against our previous estimate of 1.5%." S&P has explained. However, the agency believes "the prospects for 2016-2018 are somewhat weaker" due to the beginning of a new EU budget cycle (with EU funding substantially contributing to growth).

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Companies

1074.5 MWh of electricity were traded in the first session of the energy market, which was held from 12.23 am to 13 am Friday. This is 0.9% of the winter consumption, which is an average of 120,000 MWh per day. The head of the Independent Bulgarian Energy Exchange Konstantin Konstantinov said that the relatively good liquidity of the stock market will occur in the trading of 5% of the electricity used in this country. He predicted that this would happen in the first days of live trading in mid-January. The first session was a test. For the first and last time 17 companies announced public offers with prices and quantities for each hour of the day. They ranged from BGN 30 to BGN 83 per MWh. These were not the prices at which they will offer during a real session. Trading volumes were 1133.6 MWh, the only seller was the state-owned Maritsa East 2. The plant reached BGN 74.56 for MWh.

Bulgarian National Bank will pay BGN 5 million next year for consulting services in connection with the forthcoming review of asset quality and stress tests of the banking system, became clear from the budget of the central bank in 2016. The paper does not specify in detail what kind of services are planned; moreover in October BNB selected as an advisor Deloitte Bulgaria. Price, suggested by the advisory company was BGN 1.57 million without VAT. BGN 3.4 million is additionally provided next year for salaries of employees of the National Bank. The increase is necessary due to the creation of a new unit for resolution of credit institutions. In addition there is a legal requirement that remuneration of the central bank’s stuff should not be lower than those of employees on comparable positions in commercial banks. In that way managers in BNB should be paid salaries of BGN 4342, while experts should get BGN 1748. Maintenance staff will retain their average monthly salary of BGN 916.The remuneration of the Governing Board will not change.

Hamburg-based copper producer Aurubis will carry out a 50-day large-scale shutdown due to maintenance works at its site in Pirdop. The shutdown, which will be conducted in April and May 2016, is expected to generate capital expenditure costs of EUR 44 million. The strain on earnings before taxes (EBT) will be around EUR 25 million. Aurubis' capital expenditures in Bulgaria rose to EUR 29.5 million in the 2014-2015 financial year from EUR 21.5 million a year earlier. The company's assets in the country fell to EUR 332.8 million from EUR 349.3 million a year earlier. In 2014, Aurubis Bulgaria’s output was 350,000 t of anode copper, 233,000 t of cathode copper and 1,200,000 t of sulfuric acid Aurubis Bulgaria imports 70% of its copper concentrate and exports 70% of its production. Aurubis Bulgaria is the country's largest exporter. It employs more than 830.

The fund Empower Capital and Georgi Stoimenov provided EUR 6 million, so that My Day’s factory will have a new future. Due to the bankruptcy of the Italian group Co.Da.P owner of the Bulgarian milk-processing company Codap and its obligations to local banks, assessed to EUR 50.1 million in the summer of 2015 the company was announced for sale by Unicredit Bulbank. Equity fund Empower Capital, which manages funds under the JEREMIE program, and Bulgarian investment company Uneeda Industries see the potential to refinance its obligations as against it they have an option to acquire nearly 50% stake in the newly formed company, named Cremio. The latter has already acquired commercial enterprise Codap. Empower Capital and Uneeda Industries grant mezzanine financing of EUR 6 million to Cremio so that the company acquires commercial enterprise from creditor banks (UniCredit Bulbank and UBB). Furthermore it repaid liabilities amounting to EUR 5.1 mln. The amount is shared equally between the two financial partners. The plan now includes doubling turnover in the next 3-4 years from the current BGN 35 million and increase in profit before tax, amortization, interest and depreciation (EBITDA) to 18-20%. In the last year the index is about 14%. One of the particulars of the new targets for the dairy company is to more aggressively increase its sales (by about 10% per year) both on the domestic and foreign markets.

Almost one third of the enterprises in Bulgaria - 30.3%, used social media to develop their business activity and enlarge their internet presence in 2015, Bulgaria’s National Statistical Institute announced. ost popular were social networks like Facebook, LinkedIn, Google+ etc., and 38.0% of the enterprises with 250 and more persons employed maintained a profile on a social network. Big companies were most active in the use of multimedia content sharing websites like VBox7, YouTube, Flickr, Picassa, SlideShare, etc. (14.2%) while among the small enterprises with 10 - 49 persons employed the relative share was only 6.2%. Main purposes for which the enterprises used social media were to develop the enterprise's image or market products (e.g. advertising or launching products, etc.) (68.3%), to obtain or respond to customer opinions, reviews, questions (55.9%) and to collaborate with business partners or other organisations (39.4%). Enterprises which involve customers in development or innovation of goods or services had the smallest relative share (17.4%).

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Europe

Brussels is to propose the creation of a standing European border force that could take control of the bloc’s external frontiers — even if a government objected. The move would arguably represent the biggest transfer of sovereignty since the creation of the single currency. Against the backdrop of a crisis that has seen 1.2m migrants reach Europe this year, the European Commission will unveil plans next week to replace the Frontex border agency with a permanent border force and coastguard — deployed with the final say of the commission, according to EU officials and documents seen by the Financial Times. The blueprint represents a last-ditch attempt to save the Schengen passport-free travel zone, by introducing the kind of common border policing repeatedly demanded by Paris and Berlin. Britain and Ireland have opt-outs from EU migration policy, and would not be obliged to take part in the scheme.

America

Chemical giants DuPont and Dow Chemical Co agreed to merge in an all-stock deal valuing the combined company at $130 billion in a win for activist investors that could spark further consolidation in the farm chemicals industry. The deal to combine two of the biggest and oldest U.S. chemical producers is a prelude to an eventual split-up of the combined company into three discrete businesses, Dow and DuPont said on Friday. But it is likely to face intense regulatory scrutiny, given an extensive overlap of their agriculture businesses. The proposed split would create businesses focused on agriculture, materials and specialty products. Excluding preferred shares, existing shareholders of Dow and DuPont will each own about 50 percent of the combined company, to be called DowDuPont. DuPont Chief Executive Ed Breen will be CEO of the new company, and Dow Chemical CEO Andrew Liveris will be executive chairman.

Asia

China is to receive a $300m loan from the Asian Development Bank (ADB) to help it combat dangerous pollution levels in Beijing city and its surrounding area. The ADB said that poor air quality had reached such a serious level that it was "jeopardising health and sustainable growth". The loan is intended to cut the region's coal use, among other pollution issues. China is the world's biggest polluter. The loan will target Beijing city and surrounding areas including Hebie and Tianjin. The region is home to more than 100 million people and accounts for 10% of China's gross domestic product, the ADB said. "Poor air quality has reached such a serious level that it is jeopardising health and sustainable growth in the capital region," said ADB's urban development specialist Satoshi Ishii. "[Our] assistance will help reduce emissions and strengthen the environment regulatory framework and capacity of environmental monitoring and enforcement.

Nevena Kokanova

The first lady of the Bulgarian cinema was born on December 12, 1938 in the town of Dupnitsa, south-western Bulgaria. Nevena Kokanova made her start in arts at the age of 18 at the Yambol Theatre without having any special education, and debuted in the cinema with the movie Godini za lyubov (Years for Love). Thus, one of the most impressive paths in the history of Bulgarian theatre and movies began. In the 1960s and 1970s Kokanova became a symbol of the national cinema, embodying personality, charming temper and unique womanliness. Kokanova played more than 50 parts, one of the most remembering being Irina in Tyutyun (Tobacco, 1962) and grievous and passionate Liza in Kradetsat na praskovi (The Peach Thief, 1964). The audience and the critics highly praised her acting as Ana in Karambol (Crack-Up, 1966), Gerda in Dah na bademi (Taste of Almonds, 1967), Neda in Otklonenie (Sidetracked, 1967), which Blaga Dimitrova wrote especially for her, and many others. In 1969 she featured in the movie of the famous Italian director Liliana Cavani – Galileo. Nevena Kokanova won prizes at the Varna festival, and the Golden Camera award of the Union of the Bulgarian Moviemakers. Nevena Kokanova passed away on June 3, 2000.

On that day:  The Dudekov house