Business Industry Capital
Bulgaria
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BNB Exchange Rates
(21.01.2019) |
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EUR |
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1.95583 |
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GBP |
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2.21938 |
USD |
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1.71534 |
CHF |
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1.72609 |
EUR/USD |
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1.1402* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.01 |
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0 % |
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Financial news |
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Foreign direct investment (FDI) into Bulgaria, calculated according to the directional principle, fell by an annual 40.9% to EUR 795.4 million in the eleven months through November, the central bank, BNB, said. The FDI inflow was equal to 1.4% of BNB's forecast for the country's 2018 GDP. The largest net direct investment inflow in Bulgaria in the January-November period, of EUR 767.1 million, came from the Netherlands. Germany and Belgium followed with EUR 122 million and EUR 67.9 million, respectively. Real estate investments by non-residents in Bulgaria totalled EUR 7.1 million in January-November, compared to EUR 18.7 million during the same period of 2017. The largest inflow of real estate investment came from Russia, followed by Germany and Ukraine.
Bulgaria's current account surplus decreased to EUR 2.66 billion in the January-November period of 2018, from EUR 3.65 billion in the like period of 2017, the central bank said. The current account surplus in the January-November period was equivalent to 4.8% of the estimated 2018 gross domestic product (GDP), the Bulgarian National Bank said. In November 2018, Bulgaria current account was in surplus of EUR 58.6 million, compared to a deficit of EUR 26.1 million in November 2017. Source: investor.bg
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Companies |
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Germany-based eves_information technology, a provider of services for the automotive and telecommunications industry, plans to invest in Bulgaria, the Bulgarian economy ministry said. Eves_information technology plans to set up a European Competence Centre in Bulgaria, which should start operatons in the first quarter of 2019, the ministry said in a statement following a meeting between its representatives and the German company's management. The centre will employ 50 by the end of the year. Source: Monitor
The Commission for Protection of Competition (CPC) has initiated proceedings under the Competition Protection Act for merger control between Eurobank Bulgaria (Postbank) and Piraeus Bank Bulgaria. In early November 2018 it became clear that Eurobank Ergasias S.A. (Eurobank) has concluded the agreement for the acquisition of Piraeus Bank Bulgaria by its subsidiary Postbank. The transaction value is estimated at EUR 75 million. After finalizing the deal, Postbank will rank third in terms of loan portfolio, with an expected market share of 10%. As of September 2018, Piraeus Bank Bulgaria has assets of EUR 1.7 billion, a EUR 820 million loan portfolio and EUR 1.3 billion in deposits. The Bank operates in retail banking and mainly in corporate banking through a branch network of 70 branches and more than 900 employees. Upon completion of the deal, Postbank will have assets totaling more than EUR 5 billion, a capital of more than EUR 600 million after realizing the expected synergies, pre-provision earnings and a net profit of more than EUR 150 million and over EUR 70 million respectively. In order to successfully complete the acquisition of Piraeus Bank Bulgaria, approval should also be received by the BNB. Source: investor.bg
The plans of the Bulgarian government to build a transit gas pipeline as a continuation of the Russian Turkish Stream to the Serbian border are not approved by the United States and may result in sanctions against the gas carrier Bulgartransgaz. This is clear from a letter from US Ambassador to Germany Richard Grenel sent to BASF and Uniper, working on the Nord Stream project, at the end of last week. There is no direct threat to the Bulgarian company, but Grenel says the companies that support the construction of the two pipelines "are actively undermining the security of Ukraine and Europe," and their actions carry a "significant risk of sanctions". Foreign Minister Ekaterina Zaharieva, however, announced that the state is doing everything possible for the second Turkish flow pipeline to pass through Bulgaria, Serbia and Hungary. At the end of December 2018, Bulgartransgaz announced a tender for the construction of the new gas pipeline from Turkey to the Serbian border with the estimated value of BGN 2.73 billion. Source: Capital
Bulgartransgaz EAD launched three-dimensional seismic surveys on the lands of the municipalities of Vratsa and Krivodol in connection with the planned expansion of the gas storage near Chiren. The survey will cover 198 km2, including the lands of Vratsa, Krivodol and 7 villages in the region. The aim is to obtain seismic data for the geological and structural characterization of the underground reservoir necessary for the expansion of the natural gas extraction and storage capacity. Upon completion of the activities, the Polish contractor Geophysics Torun will inform the interested parties about the next measurements. The overall expansion of Chiren should end in 2024, according to the energy ministry's estimates. Until then, the construction of underground and above-ground facilities at the gas storage facility should be completed. Source: 24 chasa
The South African Automotive Leather Company (ALC) has completely ceased production of leather car upholstery in Bulgaria. Through its local company ALC Bulgaria the company has three plants in the country with about 1400 employees. The decision to close the business was taken by the owner of the ALC, Canadian Exco Technologies, and the workers were informed on Friday. The final step comes amid worsening financial performance over the past two years combined with a lack of workforce and price pressure from customers. In 2017, ALC Bulgaria reduced its revenues by 24% to BGN 122.7 million and the loss worsened from BGN 1.4 to BGN 8.6 million. There are still no announced results for 2018. At the same time, ALC Bulgaria has failed to negotiate a price adjustment with its largest customer to reflect production costs. The company works mainly for BMW, and in recent years has made upholstery mainly for Mini. Source: Capital
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Bulgarian Industrial Association
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World
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Europe |
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The French government has begun to develop a draft law on the taxation of multinational companies with a turnover of over EUR 750 million. Under the law can get Google, Amazon, Facebook and Apple. For the Internet giant was even coined a special acronym: GAFA. Economy Minister Bruno Le Mayor called the development of such a bill “a question of justice”. The proposal should be submitted to the Council of Ministers of France by the end of February. To apply the new tax will, from 1 January 2019. The economy Minister has estimated that the innovation will bring to the Treasury of France advanced about 500 million euros. To offer understanding in the European Union, “despite the fluctuations in some countries,” the Minister said. According to him, the issue of taxation of GAFA is “the main problem of the XXI century”. Paris, meanwhile, has developed another economic proposal. The Cabinet of France demanded to unite carmakers Renault and Nissan. Source: Associated Press
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America |
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The White House has canceled the planned delegation's trip to Davos, Switzerland, for the World Economic Forum, press secretary Sarah Sanders announced Thursday, the 27th day of the government shutdown. "Out of consideration for the 800,000 great American workers not receiving pay and to ensure his team can assist as needed, President Trump has canceled his Delegation's trip to the World Economic Forum in Davos, Switzerland," Sanders said in a statement. President Donald Trump previously canceled his own trip to Davos. The Trump-less trip would have been led by Treasury Secretary Steven Mnuchin. Secretary of State Mike Pompeo, Commerce Secretary Wilbur Ross, United States Trade Representative Robert Lighthizer and deputy chief of staff for policy coordination Chris Liddell were also scheduled to travel to Switzerland for the annual economic confab.
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Asia |
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China notched its slowest expansion since the 2009 financial crisis last quarter amid a debt cleanup and trade woes, while signs of stabilization in December suggest government efforts to cushion the deceleration are beginning to take hold. Gross domestic product rose 6.4 percent in the fourth quarter from a year earlier compared with 6.5 percent in the previous three-month period. In December, gauges of consumption and factory output accelerated, while investment held up. The world’s second-largest economy is on a long-term slowing trajectory as it shifts from the investment-led model of the past while carrying a heavy debt load. The government’s response with targeted stimulus measures is being tested by the standoff with U.S. President Donald Trump over trade at a time when the global expansion is already looking shakier. “Growth will improve from the second quarter onwards,” said Morgan Stanley’s Chief China Economist Robin Xing in an interview with Bloomberg Television. “The greater the downward pressure on growth, the stronger the policy response will be.”
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Indexes of Stock Exchanges 18.01.2019 |
Dow Jones Industrial |
24 706.35 |
(336.25) |
Nasdaq Composite |
7 157.23 |
(72.77) |
Commodity exchanges 18.01.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 53.90 |
Heating oil ($US/gal.) | 1.9200 |
Natural gas ($US/mmbtu) | 3.3500 |
Unleaded gas ($US/gal.) | 1.4500 |
Gold ($US/Troy Oz.) | 1 280.80 |
Silver ($US/Troy Oz.) | 15.32 |
Platinum ($US/Troy Oz.) | 801.90 |
Hogs (cents/lb.) | 66.28 |
Live cattle (cents/lb.) | 127.38 |
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