Business Industry Capital
Bulgaria
|
| | |
|
BNB Exchange Rates
(07.01.2019) |
|
EUR |
|
1.95583 |
|
GBP |
|
2.17343 |
USD |
|
1.71519 |
CHF |
|
1.73759 |
EUR/USD |
|
1.1403* |
ECB exchange rate |
Basic Interest Rate |
|
as of 01.01 |
|
0 % |
|
|
|
|
Financial news |
|
Real GDP growth reached 2.7% yoy in the third quarter of 2018 - again lower than expected, Raiffeisenbank (Bulgaria) EAD commented on NSI data. From GDP components, consumption increased by 7.5% and investment by 3%. Exports declined by 3.2% in real terms and imports increased by 3.8%, below the levels of growth from the previous two quarters of the year. On the supply side, services grew by 2.2 percentage points in the third quarter, followed by agriculture (0.6 percentage points) and industry (0.5 percentage points).
Twelve percent of companies in Bulgaria complain about late payments, according to Eurostat statistics for 2017. This indicator puts Bulgaria in the middle of the ranking, with most firms in the same difficulty in Italy (20%), while in Romania the rate of delayed payments is only 4%. A quarter or the managers who have started companies in Bulgaria or 25% do not have difficulty. 41% of the companies in the UK do not have difficulty, and in Romania the percentage reaches 28%. At the other pole is Italy, where every tenth company is OK, at the expense of the other nine, and Greece, where the share of companies without difficulty is 8%. The other Bulgarian entrepreneurs complain most of the periods when they do not have enough work and clients (21%), administrative burden (9%). A smaller share has severe financial crisis (5%) or complains about lack of access to finance (4%). Source: Trud
|
Companies |
|
Bulgarian express delivery company Speedy has completed the acquisition of 100% of software developer OMG Mobile for EUR 2 million. Speedy agreed in December to acquire OMG Mobile, which has been developing software for the delivery company since 2012. Speedy will pay the EUR 2 million within five years, however, 75% of the total price is conditional upon OMG Mobile keeping its key developers within that period. In 2015-2017 OMG Mobile developed software solutions servicing Speedy's operations in Bulgaria, Romania and Greece. Last year, Speedy acquired 100% in local peer Rapido Express and Logistics. Source: Capital
Hungary's OTP Bank has increased the capital of its Bulgarian subsidiary DSK Bank by BGN 1.17 billion to ensure DSK's capital adequacy following acquisition of local peer Societe Generale Expressbank. DSK Bank's capital was hiked to BGN 1.33 billion, with OTP Bank having subscribed for all 117,349,800 new DSK Bank shares of BGN 10 in par value each, according to documents entered into Bulgaria's commercial register last week. In August, OTP agreed to acquire the Albanian and Bulgarian units of French banking group Societe Generale. In Bulgaria, OTP is acquiring - through DSK - 99.74% of Societe Generale Expressbank and its units Societe Generale Factoring, Sogelease Bulgaria and Regional Urban Development Fund, as well as direct control over insurer Sogelife Bulgaria. DSK Bank, a wholly-owned subsidiary of OTP Bank, was Bulgaria's second largest lender by assets at the end of November, while Societe Generale Expressbank was the seventh biggest, according to the latest available data from BNB.
Glavbolgarstroy (GBS) won three road orders for about BGN 500 mln between the Christmas and New Year holidays in 2018. They are for the construction of 17 km of the new Europe highway, the construction of a new 6 km from the South arc of the ring road in Sofia and the Zheleznitsa tunnel on Struma highway. Currently, only one of the contracts is signed with API, and for the other two it is due. GBS said that if they were invited to sign the contract for tunnel Zheleznitsa, they would definitely refuse. The company has a chance to win another multi-million order - for a stretch of the Hemus highway between the Boaza junction and the Pleven/Lovech crossroad. GBS are among the companies that have concluded a framework agreement with Avtomagistrali EAD, which already has a contract for the construction of the highway with state funding. Source: mediapool.bg
The trustees of Commercial Commercial Bank (CCB) lost a claim in the amount of BGN 40 million at first instance in Sofia City Court. Defendant in the case is Shipyard Ruse AD, declared insolvent at their request. The bankruptcy's claim is for the company to recover the money received from CCB as a cash contribution to its capital. In order to reject the claim, the court refers to the Treaty on the Functioning of the EU and the European Convention on Human Rights. In fact, the decision is a blow to the "Peevsky - Tsonev - Hamid" corrections in the Bankruptcy Act of Bulgaria, which are also the subject of a case in the Constitutional Court. Shipyard Ruse AD owes more than BGN 60 million to CCB, and the amount of the claim is provided as a loan to another company. It allocates them in turn to the accounts of other three, which record new shares to increase the capital. Source: Banker
Sofiiski Imoti signed a contract with Kalistratov Group for the construction of the a municipal aquapark with mineral pools and water slides in the broad center of Sofia on January 4. It will be located in the new part of Vazrazhdane Park, with the implementation period of 342 days. For the realization of the project, the company has requested BGN 9.54 million without VAT. The funds are provided by the municipal company itself and through a loan from the Urban Development Fund to the Operational Program "Regions in Growth". The time limit for the implementation of the project will start not from the conclusion of the contract but from the issuance of a special letter of invitation by the contracting authority, with which the contractor will be informed about the available financing. After the finish of the project the facilities will remain property of the municipal and will be managed by Sofiiski Imoti. Source: Capital
|
Bulgarian Industrial Association
|
World
|
| |
|
Europe |
|
German unemployment fell to a record low, extending its five-year decline, as companies signaled confidence in Europe’s largest economy. Joblessness decreased by a seasonally adjusted 14,000 in December to 2.26 million, more than economists predicted, supporting the Bundesbank’s outlook that growth momentum remains strong despite growing threats of protectionism and a disorderly Brexit. The jobless rate remained at 5 percent. “The labour market continued to develop well, even though the economic upswing has lost some momentum,” said labor-agency head Detlef Scheele. “Companies’ demand for new workers remains at a very high level.” The report suggests that domestic demand will support economic growth and that a contraction in the third quarter was a temporary setback caused by a decline in car production in response to new emissions tests. Germany’s Bundesbank says the unemployment rate could fall to 4.5 per cent by 2020 and remain on a downward trajectory thereafter. Unemployment dropped by 9,000 in west Germany and by 5,000 in the eastern part.
|
America |
|
The Coca-Cola Company has completed an acquisition of Costa from its parent company Whitbread. Valued at $4.9bn, the deal was first announced on 31 August last year. It was completed after obtaining regulatory approvals in the EU and China. The Coca-Cola Company CEO James Quincey said: “We see great opportunities for value creation through the combination of Costa’s capabilities and Coca-Cola’s marketing expertise and global reach. “Our vision is to use the strong Costa platform to expand our portfolio in the growing coffee category.” Established in 1971 in London, Costa is one of the major coffee brands with operations in more than 30 countries. It operates 4,000 retail outlets, a coffee vending operation, at-home formats and a roastery. Whitbread CEO Alison Brittain said: “We wish our friends and colleagues at Costa all the very best for their future success. Completion of the deal is expected to give The Coca-Cola Company a significant footprint in the global coffee business. Source: Associated Press
|
Asia |
|
Consumption is expected to remain the largest contributor to China’s economic growth in 2019, a Ministry of Commerce (MOC) official said. Deputy Director of the Department of Market Operation and Consumption Promotion at the MOC Wang Bin said at a recent meeting that consumption is expected to contribute to 65 per cent of economic growth in 2019, with an expected nine-per cent increase in total retail sales of consumer goods. China’s consumer market will continue its steady development and maintain a stable and positive outlook regardless of the negative factors and pressure, Wang added. The three-day New Year holiday saw a robust start of China’s consumption market in 2019, with the retail sales of 60 Beijing-based business service companies hitting 3.01 billion yuan (about USD438.6 million) during the period, up 6.3 per cent year on year, official data showed. Meanwhile, consumption in Shanghai during the three days reached 13.5 billion yuan, up 10.6 per cent from the previous year.
|
|
Indexes of Stock Exchanges 04.01.2019 |
Dow Jones Industrial |
23 433.16 |
(746.94) |
Nasdaq Composite |
6 738.86 |
(275.35) |
Commodity exchanges 04.01.2019 |
|
Commodity |
Price |
|
Light crude ($US/bbl.) | 48.73 |
Heating oil ($US/gal.) | 1.7900 |
Natural gas ($US/mmbtu) | 2.9800 |
Unleaded gas ($US/gal.) | 1.3700 |
Gold ($US/Troy Oz.) | 1 293.00 |
Silver ($US/Troy Oz.) | 15.86 |
Platinum ($US/Troy Oz.) | 834.20 |
Hogs (cents/lb.) | 61.95 |
Live cattle (cents/lb.) | 121.92 |
|
|
|
St. John The Baptist Feast |
|
On January 7, the Bulgarian orthodox church celebrates the day of St. John the Baptist – the last prophet of the Old Testament and Baptist of Jesus Christ. The feast is also called “Ivanovden”. John the Baptist is also called “The Precursor”, for he was walking before Jesus and prepared the people for his birth. His sermon calling for repentance and baptism, for cleaning of all sins as a preparation for the coming of Jesus gives him a special place among all Evangelists. He was fighting for high morality and justice, and was sentenced by the ruler Irod Antipa. Later on, he was beheaded following the ruler’s order. In Bulgarian national tradition, Ivanovden is connected with the purifying power of the water, sanctified the previous day. The period of the so-called “dirty days” is over and everyone turns their sights forward waiting for the prophecies for good health, rich harvest and happy life to come true. On this day, everyone called Joan, Joanna, Ivan, Ivana, John, Ivaylo, Jean, Jeaneta, Yovko, Yovcho, Johan, celebrate their name day.
|
|
Archive Business Industry Capital |