Financial news

According to preliminary data, shampoos produced in Bulgaria in 2009 are less by 7% as to 2008, but the produced toothpaste is 1.2% more, shows the industry report of SFB Capital Market JSC on the development of the sector. Import of perfume and cosmetics decreased again in 2009. As compared to 2008 the reduction of the imported quantities is 4.8%. The trend of reduction in the exported quantities is broken. Compared to 2008 the increase is 12.1%. Analysis of preliminary data shows that 3.8% less shampoo and 19.8% less toothpaste were provided for sale in Bulgaria in 2009. For more information and orders see: http://sfb.bia-bg.com

The European Union (EU) has called on Bulgaria and Greece to set up a joint regional gas market that will include a cooperative transmission, storage and distribution system, said Petar Popchev, special energy security ambassador and national coordinator for the Nabucco gas pipeline. Speaking at an energy round table held by the European Parliament (EP) in Sofia, Popchev revealed that both parties are working to put this idea into practice but it is in a very early stage. The diplomat explained that a regional market would involve deliveries from a number of sources including Russia, Azerbaijan, Iraq, and North Africa. By 2030, Europe will need an additional 100-115 billion cubic metres of gas each year, the EU has estimated. At the moment, the annual consumption stands at approximately 500 billion cu m.

Against previous gloomy figures about a downturn in foreign direct investment (FDI) in Bulgaria and independent commentary on the country slipping badly in job creation, senior Government officials are insisting that FDI is increasing and that they are preparing to campaign for more. In May, official figures showed that FDI in Bulgaria in the first quarter of 2010 came in at minus 21.9 million euro, a major decrease compared to FDI in Q1 2009, which was 926 million euro. InvestBulgaria agency chief Borislav Stefanov said that the number of firms that had invested in Bulgaria in Q1 2010 in fact had increased. Equity capital into Bulgaria had increased steadily in the first three months, having been two million euro in January, 30 million in February and 80 million in March, according to Stefanov.

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

Companies

A company owned by the businessman Ivo Prokopiev has been unlawfully admitted to take part in the public procurement tender for the supply of limestone for desulfurisation at the Maritsa-Iztok 2 thermoelectric power plant (TPP). The company in question is Zavodski Stroezhi PLC of Pernik, 100% owned by Sofstroy PLC, according to data from the Commercial Register, and the latter is owned by Alfa Finance Holding. The public procurement order is for 2.5 million tons of limestone, and the damage caused to the State could be roughly BGN 50 mln, taking into account transport costs as well. n this case, Zavodski Stroezhi does not meet the mandatory condition for possessing a concession for limestone and was allowed to participate in the tender for obscure reasons. The company does not have any experience in supplying this kind of material since it does not trade in limestone. 

For a second consecutive year, the bulk of Bulgarian businesses will withhold dividend payouts in a bid to cushion against economic insecurity and higher risk as the crisis rumbles on. Just three banks including Corporate Commercial Bank (Corpbank), UniCredit Bulbank and Raiffeisenbank and only eight of the 40 most liquid companies on the Bulgarian Stock Exchange (BSE) will distribute dividend from 2009 profits, according to proposals that will be voted at upcoming general shareholders’ meetings. As in 2009, almost all banks operating on the Bulgarian market will add profits to capital to create crisis reserves in line with a recommendation by the Bulgarian National Bank (BNB). Investors in UniCredit Bulbank and Raiffeisenbank will return the monies in the form of capital hike.

In the period 14-20 June 2010 CEZ Distribution Bulgaria begins the construction of 15 energy projects in Western Bulgaria. Investment in these projects, totaling BGN 368 thousand, will lead to improving the quality of power supply in six towns - Sofia, Blagoevgrad, Lovech, Dupnitsa and the villages Belopoltsi and Peshterna. The projects cover activities such as supply of new housing, replacement and installation of new cables for medium and low voltage, recycling and placing of switchboards at the boundary of property, restoration and reconstruction of low voltage networks, reconstruction, repair and construction of power substations. In June CEZ Distribution Bulgaria starts the construction of 69 power objects and consequently the quality of power supply will be improved in over 30 localities in Western Bulgaria.

Bulgaria has formally invited Chinese companies to participate in the creation of a joint industrial zone at Bozhurishte near Sofia. The project for the Bozhurishte Industrial Zone was formally presented Sunday by Bulgarian Economy Minister, Traicho Traikov, who is on a visit to China for the Bulgarian Day at the Shanghai Expo, June 14. “Bulgaria has a great potential to attract Chinese investments in the fields of telecommunications, IT, green energy, and electric cars equipment,“ Traikov stated. “Bulgaria must use its chance to increase its competitiveness by attracting Chinese investments and industrial know-how,“ Traikov stated as cited by the Bulgarian Economy Ministry. In his words, Bulgaria could also attract Chinese investors in textile industry, infrastructure construction, food industry, agriculture, and tourism.

Commission for Protection of Competition imposed a fine of BGN 143,220 on THC Cosmetics Ltd. - Plovdiv for misconduct. The case was brought by Alen Mak Jsc, a pharmaceutical and cosmetic company with a long history. From the provided evidence, CPC found out that the respondent company produces and distributes in Bulgaria and Russia the baby shampoo "Adventure", which resembles the shampoo "Pa-Pa" of Alen Mak. After comparing the appearance of products, the Commission believes that the similarities are sufficient for deception of consumers about the product. Common elements in overall design of the shampoo leaves the impression that they both are produced by the same manufacturer.

BUSINESSEUROPE Madrid Declaration: LASTING GROWTH WILL ONLY BE ACHIEVED WITH GREATER STABILITY

Europe

The European automotive industry is facing a wave of consolidation as auto companies and their suppliers continue to face financial distress amid a slump in sales and a glut in the supply of cars, according to research from business advisory group Alix Partners. The industry "is facing a radical restructuring to overcome the current crisis. Today, 54% of European suppliers are in financial trouble. The industry continues to struggle with large excess capacities and a high debt ratio," the report said. "This situation offers unique growth opportunities for liquid investors, but means that time could be running out for weaker companies," it said. "Large numbers of financially distressed companies also mean outstanding opportunities for takeovers and growth," it said.

America

The U.S. Federal Trade Commission will investigate whether Apple Inc.'s business practices harm competition in the market for software used on mobile devices, people familiar with the situation said. For weeks, the FTC has been engaged in negotiations with the Department of Justice over which agency would review allegations by companies that say they're being shut-out of one of the most important emerging computing platforms. Adobe Systems Inc. has been engaged in a public feud with Apple over its decision to ban Adobe's Flash video technology from Apple devices. This week, Google Inc. complained Apple's new rules on developers could bar Google and other rivals from selling ads inside iPhone and iPad applications, such as games.

Asia

New data from China cemented the view that the country’s giant economy powered ahead in May — though a marked rise in inflation also raised the pressure on Beijing to slow the booming pace of growth. Consumer prices rose at their fastest rate in 19 months, at a pace of 3.1 percent from a year earlier, the report said. And inflation could accelerate if more Chinese workers are successful in their efforts to get higher wages. Industrial production and retail sales also grew forcefully, figures showed Friday, while data out on Thursday revealed imports and exports both topped analyst expectations by a wide margin. Property prices continued to soar in May. The strong economic data come despite debt concerns and fiscal austerity measures across Europe, China’s biggest trading partner.

Ibisha Island

The Convention on Wetlands, signed in Ramsar, Iran, in 1971, is an intergovernmental treaty which provides the framework for national action and international cooperation for the conservation and wise use of wetlands and their resources. Bulgaria was the eighth country to sign the convention. The Ibisha Island was included in the list in 2002, and has the current territory of 372 ha. The island is covered by tree, and is located in the Danube River, eastern from the town of Lom. The biggest part of the island is vegetated with the typical for the Danube islands bay forests of European alder /Alnus glutinosa/, White /Salix alba/ and Crack Willow /Salix fragilis/, White poplar /Populus alba/ and Black poplar /Populus nigra/. The international importance of the Ibisha Island is due to the Bulgaria’s largest mix of hundreds of Heron and Cormorant. Some 9 percent of the territory were protected in 1984 by being declared a preserved area. In 1997 BirdLife International declared the place ornithology important site.

On that day:  Plamen Konstantinov