Financial news

Bulgaria’s exports surged by 1.9% year-on-year in the first quarter of 2010 to BGN 13.4 billion as CIF (cost-insurance-freight) imports pulled off their first uptick since the start of the year, according to preliminary figures of the National Statistical Institute (NSI) published on Monday. FOB (free-on-board) exports rose for the fifth consecutive month, up around 15% year-on-year to BGN 2.18 billion in March. CIF imports picked up 1.25% over the year to BGN 2.95 billion. The fragile increase in imports could be attributed to the rising oil products and metal prices as Bulgaria is not a net fuel importer. Over the past couple of months, Bulgaria’s imports had been heading south under the weight of the economic tumult that squeezed consumption.

Bulgarians are getting prepared to loosen the belt and to start spending more money. In April, the number of people who are planning to buy house appliances or furniture increased, shows a research of the National Statistical Institute. The research marks a growth regarding plans for purchase of a car or making home repairs. However, intentions for buying a home or a villa are dropping down. In April, the results for general index 'consumers' trust' compared to January levels increased. Obviously, the symptoms for overcoming the crisis are at hand. In March, the trade turnover grew by 9.8% compared to the previous month. Wholesale trade marks the highest growth - 12%. In retail and car sales the increase is by 5.6% and 5.3% respectively, compared to the previous month.

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

Concessions

The French Veolia Water will buy Sofiyska Voda JSC and other assets of United Utilities. The French and the British water companies are in the process of final negotiations to finalize the transaction in the shortest possible time. Veolia water was chosen by the British United Utilities for an exclusive preferred buyer of shares in non-regulated water assets of the company in Central and Eastern Europe and the UK. Sofiyska Voda was established in October 2000 under a 25-year concession contract. Currently the company is a shareholding company with a 77.1% participation of United Utilities and the European Bank for Reconstruction and Development and 22, 9% of the Sofia Municipality.

Companies

Czech-owned power supplier CEZ is said to have invested BGN 17,1 M in boosting the country's electricity distribution network since the beginning of 2010. Representatives of the power utility announced Monday that the CEZ investment budget corresponds to the one approved by Bulgaria's State Energy and Water Regulatory Commission (SEWRC) which amounts to an average of BGN 71 M per year. CEZ has also informed that almost half of the investments made during the first 4 months of 2010 were for improving the energy supply network in Bulgaria.

A joint participation of Serbia and China in the construction of Belene NPP emerged as a possibility, said Minister of Energy of Serbia Shkundrich Peter, who is visiting Beijing. "If an agreement is reached to restore the two units at TPP Kostovats, conditions will be created on both sides to jointly participate in new energy projects," said Shkundrich after meeting with Chinese Minister of Commerce Gao Huchen. Belgrade recently announced it was ready to pour in $ 100 million in Belene.

A programme for the restructuring of the Bulgarian State Railway (BDZ) projects that the company will stop transporting parcels. This is one of the ideas of BDZ’s managers, transport syndicates warned. “Proceeds from the transportation of parcels now amount to BGN 1 mln, while some years ago these were double,” Petar Bunev, Chairman of the Union of Railwaymen in Bulgaria, told. According to this syndicate, some 3,500 BDZ employees have been sacked up to now and the company’s pay-roll has thus been reduced from 17,500 to 14,000 people. The programme on BDZ’s restructuring projects is for it to become a holding company. However, the law on transport should be amended in order to realise this idea, experts claimed.

UniCredit Bulbank, the Bulgarian unit of Italy's UniCredit SpA, is opening 22 offices in the stores of local home appliance and consumer electronics retailer Technopolis. The lender has installed 22 ATMs and 130 POS terminals at the premises of the hypermarkets. The new offices and the provision of banking services to the customers of Technopolis are in line with a contract for national partnership and bank servicing between the two companies. Under the agreement, UniCredit Bulbank will offer its full range of products and services in corporate and retail banking.

Enel Green Power, renewable energy arm of Italy's biggest utility Enel, put into operation its second wind farm in Bulgaria, doubling its installed wind capacity in the country, which already totals 42 MW. The new wind farm, located in the municipality of Shabla, consists of 7 turbines with a capacity of 3 MW each, for a total installed capacity of 21 MW. With an annual production of over 54.6 million kWh, the wind farm will be able to meet the energy needs of 19,000 households while avoiding the emission of around 45,000 tonnes of CO2 per year.

Europe

The British Airways cabin crew union, Unite, has announced fresh strike dates in its long-running dispute with the airline. Cabin crew will walk out for four separate five-day strikes in May and June. The first strike will begin on 18 May, ending on 22 May, with the three further strikes beginning on 24 May, 30 May and 5 June. Unite members rejected a fresh deal for cabin crew earlier this month. The union said there was a turnout of 71% of the cabin crew it represents, and 81% voted against BA's offer last week, which sought to resolve the dispute over pay and working conditions. Details of that deal were not given, but Unite said BA had failed to restore the travel perks it withdrew from staff involved in the previous strikes in March. Those stoppages grounded hundreds of flights and cost BA an estimated £45m.

America

President Barack Obama said that regulators would look for ways to prevent a repeat of Thursday's mysterious stock market meltdown, adding to expectations the U.S. government will make new regulations to curb runaway computer trading. More than a day after a nearly 1,000-point drop in the Dow, the government had not publicly pinpointed the reasons. Growing concern about the Greek debt crisis, exacerbated by a spike in the Japanese yen, may have caused computerized trading programs to dump U.S. stocks. Initial theories had focused on an individual trader erroneously entering an order, known as "fat finger" on Wall Street. "The regulatory authorities are evaluating this closely with a concern for protecting investors and preventing this from happening again," said Obama.

Asia

China’s inflation accelerated, bank lending exceeded estimates and property prices jumped by a record, increasing pressure on the government to raise interest rates and let the currency appreciate. Consumer prices rose 2.8 percent in April from a year earlier, the fastest pace in 18 months, and property prices jumped 12.8 percent, the statistics bureau said in statements today. New lending of 774 billion yuan ($113 billion), announced by the central bank, was more than any of 24 economists forecast. Asian stocks pared gains on concern that Chinese officials will move to cool the fastest-growing major economy, while yuan forwards rose. The jump in property prices in 70 cities was the biggest since data began in 2005, defying a government crackdown on speculation that intensified last month.

Public Holiday of Lovetch

On May 11 the town of Lovetch celebrates its public holiday. It is situated on the border between the Danubian Plain and the northern slopes of the Balkan Mountains, on the river terraces of Osam River. On the east, the town is surrounded by a plateau, 250 m high, with almost vertical slope to the East Industrial Zone. Lovetch is located 150 km away from the capital Sofia. The land here has been inhabited since high antiquity because of the favorable position between the mountain and the plain. The ancient town arose over the ruins of the Thracian town of Melta, which was probably the capital of a Thracian tribe and had very important role of a trade station for the Thracian tribes. Later, when the Romans colonized the Balkan Peninsula they established a Roman station and called the town Presidium. It had a very strategic role, being on one of the main Roman roads – Via Trajana, connecting the White Sea with the Danube River. Even today, the Roman road Varosh exists. During the Middle Ages Lovetch was of strategic importance. According to some researchers the Lovetch fortress was one of the last conquered by the Ottomans – in 1446, but even after that it kept significant rights – Ottomans were forbidden settling in the town, no children were called in the janissary army, and the town kept collecting the duties for the goods passing it. At the end of 16th century the town was deprived of these privileges. Because of its prosperity the town was called Altin (golden) – mentioned for the first time in 1520. In 1784 the town was siege and burned down by the Ottomans. Today Lovetch is an important commercial, educational and cultural center. The melody of the anthem Varvi Narode Vazrodeni (March ahead, o revived people) was composed in Lovetch. It was years that the town celebrated the so-called Lilac Holidays in May. This was the reason for the local community to choose in 1992 the date of May 11 – the day of the Cyril and Methodius brothers – for official holiday of Lovetch.

On that day:  St.s Cyril and Methodius Aleko Konstantinov – The Lucky