Financial news

The production of the enterprises from sub-sector Production of Wine decreased in 2009, shows the industry report of SFB Capital Market JSC on the development of the sector in Bulgaria. Compared to 2008 the drop is 28.4%. The unfavorable trend of reduction of Bulgaria’s foreign trade in wine, which began in 2008, continued. The positive foreign trade balance keeps a downward trend. In 2009 Bulgaria reported a record low export of wine for the last seven years. The decrease from 2008 is by 38.5%. Sales of wine-producers on the domestic market in 2009 decrease by 26%. Unlike 2007, in 2008 the profitability of the enterprises in the sub-sector is negative. Liquidity is lower and the total indebtedness increased by one third. For more information and orders see: http://sfb.bia-bg.com

“Budget 2010 is the right budget. I hope to that EU will publish positive data for Bulgaria’s business climate,” Bulgarian Financial Minister Simeon Dyankov said in an interview. He added that April was the month when the real economic state would be felt, that is why he hoped the business climate data would be positive. Dyankov explained that raising the VAT was not a pro-crisis measure, but would be a very difficult measure for the business to handle. He added further that the Bulgarian export was growing each month, but the consumption in the country was low and the import was going down. “The fact that the import is lower is very good, because the foreign trade balance is improving,” Dyankov noted.

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

Concessions

Bulgaria's Ministry of Regional Development and Public Works and the governors of Bourgas, Varna and Dobrich will seek to concession off 52 beaches over a period of up to five years. Some of the procedures are already underway, with the remainder due to be staged in the coming days. The bulk of the beaches available for concession are relatively small and have been left without a concessionaire for years. More than 50 beaches fail to attract concessionaires each year thanks mostly to their long distance to the major resorts and the absence of enough tourists. In an effort to break the status quo, the government in end-March decided to cut bottom concession tariffs by 30% from the previous year.

Companies

Bulgaria may not participate in this year's world Expo 2010 in Shanghai, China because the state is unable to cover the expenses. Bulgaria's Ministry of the Economy, Energy and Tourism has already allocated BGN 1,3 M to the Plovdiv International Fair Association which is in charge of organizing Bulgaria's representation at Expo 2010. However, these funds fall short of the money that the Ministry has promised to secure – over BGN 4,685 M. This has triggered the Plovdiv International Fair Association to declare that if it does not receive the needed funds by 30 April, Bulgaria will not have its representation at the Shanghai world trade expo this year.

Bulgarian arms-repair factory in Targovishte Terem - Khan Krum SPLTD won a major contract for repair of 50 Serb tanks. The deal was signed by the management of the holding in Sofia and is worth BGN 500,000, announced the leader of the factory trade union Podkrepa Vitan Valchev. He said that the armored equipment is expected to be delivered to the factory by the end of the week. The period for performing the repair works is two months. According Vitan Valchev this is the first contract for the Targoviste-based armory this year. As a result of the lack of work, since March all 406 employees went 4-day working week and the social tensions began to rise.

Two more Bulgarian companies defied the downturn and managed to bottom out after the devastating 2009. Fertiliser maker Neochim and FairPlay Properties posted stronger sales for the first quarter of 2010, highlighting analysts’ expectations that exporters will put in a nice performance. FairPlay’s sales are mostly driven by Russian customers, which means it can be considered an exporter. The company notched up a 40% increase in third-quarter sales to BGN 5.6 million on an 11% reduction in the selling prices of flats in its benchmark Santa Marina holiday project in Sozopol, on the Southern Black Sea coast. The move also caused a fivefold slump in profit. By contrast, Neochim swung to a profit and pulled off a double increase in sales between January and March.

The bids for the Plovdiv-Burgas railway line rehabilitation on Tuesday. The names of the candidates allowed to continue in the tender were announced by Dzhoanna Dimitrova, director of Finance and Property Management Directorate. NRIC Executive Director engineer Milcho Lambrev, Deputy Transport Minister Ivaylo Moskovski and participants in the procedure attended the opening. The candidates for the three positions are Consortium LV-TCR-GBS, TSO Chemin du corps de gard and Consortium Salchev – Energoremont. The rehabilitation project costs EUR 187,365 million. 64% of funds are covered by the EU’s Cohesion Fund and 36% – by the national budget.

Europe

Member states reached political agreement on the future shape of the EU's new diplomatic service, with the parliament seen as the biggest remaining obstacle to a formal go-ahead. Announcing the breakthrough after lengthy negotiations, EU foreign policy chief Catherine Ashton said "Europe needs an External Action Service because it will help us to build a distinct 21st century European response." "[The service] will bring together in a joined-up way our response to the issues that we face in the world and promote comprehensive policies," she added. Most of the negotiations on Monday focussed on how to ensure that member state diplomats are fairly represented in the EAS.

America

DuPont Co., the third-biggest U.S. chemical maker, more than doubled first-quarter profit and raised its 2010 earnings forecast as farmers bought more genetically modified seeds and demand for electronics recovered. Net income increased to $1.13 billion, or $1.24 a share, from $488 million, or 54 cents, a year earlier, Wilmington, Delaware-based DuPont said today in statement. Chief Executive Officer Ellen Kullman, who shut plants and cut jobs last year as the recession eroded demand, is hiring back some contractors to keep pace with revenue that jumped 23 percent in the first quarter. Seed sales helped the agriculture segment lead company earnings, while units that make electronics materials and auto plastics returned to profit.

Asia

PetroChina Co., the nation’s biggest oil company, posted a 71 percent jump in first-quarter profit, beating estimates, as demand in the world’s fastest- growing major economy surged and crude prices rebounded. Net income rose to 32.5 billion yuan ($4.8 billion), or 0.18 yuan a share, from 18.97 billion yuan, or 0.10 yuan, a year earlier, PetroChina said in a statement to the Hong Kong stock exchange. That’s better than a median estimate of 30.9 billion yuan in a Bloomberg survey of six analysts. Revenue gained 75 percent. PetroChina increased first-quarter production by 6.4 percent to help supply the world’s biggest car market and factories meeting overseas orders for Chinese-made goods. The Beijing-based company also benefited from the more than doubling in oil prices from last year’s low in February.

Rzhana Mountain

The Rzhana Mountain is a small separate ridge of Western Balkan Mountains. The Iskar gorge separates it from the Vratsa mountain, and the rivers Gabrovnitsa and Milkovitsa – from Golema Planina (Big Mountain) and Mourgash. Once, in Roman times, the very important road connecting the Danubian Plain and the Sofia kettle passed through it. One of the most famous sights in the Balkan Mountains is situated here – the Osenovlaski monastery Saint Holy Mother, also known as the Seven Thrones Monastery because of the seven chapels of the monastery church. The story tells that seven boyars established seven settlements near the monastery. The legends connect the monastery with the name of Petar Delyan as well and his rebellion in 1040 against the Byzantine rule. The legend says that Petar Delyan ended his life here and was buried in the monastery church. Another story tells that the prominent Valchan Voyvoda lived in a nearby village. He left his herd and became a rebel. His band managed to seize huge wealth from the Ottomans and dug it somewhere in the Balkan. Even today nobody knows where the treasure lies.

On that day:  Uhlovitsa cave