Foreign direct investment (FDI) of Bulgaria in January 2019 have decreased by EUR 427.5 million on an annual basis, preliminary data from the Bulgarian National Bank (BNB) show. For comparison a year earlier, they posted an increase of EUR 228.7 million. The equity capital was negative and amounted to EUR 556.8 million in January 2019. It was lower by EUR 515.6 million compared to a year earlier, down by EUR 41.2 million. The net flow of real estate investment of non-residents is negative at EUR 0.1 million, with a positive net flow of EUR 2 million in January 2018. In January 2019, the net flow under the Debt Instruments sub-item amounted to EUR 129,3 million, compared to EUR 249.6 million a year ago. The largest net direct investment flows in the country in January 2019 are from Ireland (EUR 69.9 million), Luxembourg (EUR 24 million) and the Netherlands (EUR 22.4 million). According to preliminary data, the net foreign direct investment flow in January 2019 was positive and amounted to EUR 20.7 million, compared to a positive figure of EUR 4.3 million a year ago.

International rating agency Fitch Ratings raised Bulgaria's long-term credit rating from stable to positive, the Finance Ministry reported. The Agency confirmed Bulgaria's long-term credit rating at BBB level in foreign and local currency, country rating A-, as well as the short-term foreign and local currency rating at F2. Budgetary outcomes are overaccomplished, further exacerbating Bulgaria's fiscal and debt position compared to other countries. The estimated budget surplus in 2018 on an accrual basis is projected to be higher than the previous forecast, which is the country's best performance over the past 20 years. From Fitch's point of view, Bulgaria's commitment to a prudent fiscal policy limits the risks to the country. The rating agency expects Gross Domestic Product (GDP) growth to pick up in 2019-2020 (3.3% on average) after a stronger-than-expected slowdown in 2018 to 3.1%. According to the agency, Bulgaria's external finance ratios continue to improve and outperform those of the BBB rating countries. At the end of 2018, the positive external position of the country strengthened, while countries with a similar rating were net debtors.

The new investment program InvestBG Equity will attract considerable private and institutional capital for investments in the expansion and internationalization of companies based in Bulgaria. This will be the first ever program in which the European Investment Fund (EIF) will jointly invest its resources with those managed by JEREMIE in a special way in favor of the Bulgarian business. The implementation of the new SME investment program by attracting additional venture capital from private equity funds investing in Bulgaria begins after the negotiations between the Ministry of Economy and the EIF were completed. The program is funded with recycled resource from the implementation of the JEREMIE initiative and EIF funds. The Ministry of Economy through the JEREMIE Holding Fund and the EIF will mobilize a joint EUR 110 million resource to finance the investment program.

Bulgarian diversified group Doverie United has completed the settlement of its deal to acquire 63.8865% interest in Moldova's Moldindconbank (MICB) through its wholly-owned unit Doverie-Invest. Doverie United Holding and Doverie-Invest's plans for the bank are focused on its modernisation, as well as the strengthening of the lender's excellent market position. At the end of 2018, Moldindconbank's assets amounted to some BGN 1.67 billion. Earlier this month, Doverie-Invest won a public tender for the acquisition of the 63.8865% stake, with a starting price of BGN 76.6 million. Doverie-Invest signed a preliminary agreement for the acquisition of the majority stake in MICB in February, giving the company the right to participate in the public tender. On January 23, Moldova's central bank said that it has approved the sale of MICB to Doverie. The central bank's prior consent was a condition for taking part in the auction. Moldova has been trying to sell the majority stake in MICB since April 2018, when it confiscated it from shareholders that operated in a non-transparent, coordinated way. In October, the board of Moldova's central bank decided to postpone for a further three months the sale of the stake. Doverie United Holding controls 22 companies active in various sectors of the economy, including construction, healthcare, retail trade, textiles and others. Doverie United Holding's largest shareholder is blue-chip drug maker Sopharma, which held a 33.24% stake in the company at the end of 2018.

Galaxy Investment Group was awarded for "Investment, Development and Property Management" in the "Company of the Year" awards. The official award ceremony brought together nearly 200 representatives of business and government institutions. Prizes were received by 20 organizations in different sectors of the economy. The "Company of the Year" prizes are awarded for merit related to the development of human capital; continuous improvement of the quality of the offered product / service; efficiency and transparency; successful management; competitiveness and innovation; client approach; successful business model; efficient communications; know-how; good market positioning; sustainable development; corporate social responsibility. The organizers of Bulgaria Business Review and Business Lady presented awards in the sectors of industry, construction and architecture, healthcare, banking, telecommunications, pharmacy, insurance, FMCG, media and advertising this year, as well as in categories such as Investments and Successful Management.

Bulgarian state-owned Sofia Tech Park said that it is seeking a BGN 5.1 million five-year loan in order to cover its capital expenditure and working capital needs. Out of the total, BGN 1.5 million should be provided in the form of an overdraft, which the company will use for working capital, Sofia Tech Park said in an invitation for offers. The loan should have an annual interest rate of no more than 3%.

Bulgarian diversified group Stara Planina Hold said that its consolidated sales revenue increased by an annual 2.25% to BGN 41.2 million in the first two months of the year, failing to meet the company's forecast for a 2.64% rise. Stara Planina Hold expects its January-March sales to be 1.66% lower year-on-year at BGN 61.6 million. The expected decrease in the group's sales can mainly be attributed to a forecast 8.58% drop in the first-quarter sales of its affiliate M+S Hydraulic, which is expected to bring in BGN 29.5 million. Stara Planina Hold's investment portfolio includes companies from the sectors of machine building, electrical engineering and perfumery and cosmetics.

France’s economic woes resurfaced at the end of the first quarter as business activity unexpectedly resumed a decline. IHS Markit’s measure of manufacturing and services dropped to 48.7 this month, falling once again below the 50 level that separates expansion from contraction. The figure was less than February’s reading of 50.4 and defied economists’ predictions for a small improvement. The euro erased gains to trade little changed at $1.1374 as of 9:17 a.m. in Paris. Demand for new orders fell and work from abroad fell at the fastest pace for nearly three years, with some survey respondents blaming disruption from the by the Yellow Vests protesters and the postponement of Algerian elections. Firms also became less confident in the outlook for business, Markit said. Earlier this month, the European Central Bank reacted to a softer outlook by delivering a fresh round of monetary stimulus in the forms of new loans for banks and slashing its growth forecast for 2019. Markit is due to release its readings for the German and euro-area economies later Friday.

President Donald Trump said Thursday kept up his criticism of the Federal Reserve, despite its move to a dovish policy path. The president said that if it wasn’t for the decisions of Federal Reserve Chairman Jerome Powell and his colleagues, the U.S. economy would have expanded above a 4% annual rate in 2018. “Frankly if we didn’t have somebody that would raise interest rates and do quantitative tightening, we would have been at over 4[%] instead of a 3.1[%],” Trump said, in an interview to air Friday morning on Fox Business Network’s “Mornings with Maria” show. The U.S. economy grew at a 2.9% rate in 2018, the Commerce Department reported, with the fourth quarter up 3.1% from year-ago levels. Asked if he thought he influenced the Fed’s dovish policy stance, Trump replied: “I don’t know. I hope I didn’t influence frankly, but it doesn’t matter.” He then quickly added, “I don’t care if I influenced or not.” On Wednesday, the Fed’s released its latest projections of the path of interest-rates that showed no interest rate hikes this year. That’s down from two rate hikes for 2019 seen by the central bankers only three months ago.

Indonesia threatened to ban imports of some goods from the European Union in retaliation for the bloc’s move to impose stricter limits on how palm oil can be used in green fuels. The world’s largest palm oil producer is considering such a step to protect the interest of almost 20 million people, whose livelihood is tied to the commodity, Indonesia’s Coordinating Minister for Maritime Affairs Luhut Pandjaitan told reporters in Jakarta on Wednesday. The minister hinted that jets manufactured by European companies could be among the target for boycott, saying the country would require about 2,500 aircraft in the next two decades. “There are a lot of European products that we need,” Pandjaitan said. “We have 269 million people in Indonesia. We have a big market.” Palm oil has emerged as a flashpoint in a potential trade war between the European Union and top producers Indonesia and Malaysia, which together account for about 85 percent of global supply. The European Commission last week restricted the types of biofuels from the vegetable oil that may be counted toward its renewable-energy goals. The proposed EU curbs have weighed on benchmark palm prices, which have fallen for five quarters in a row.