Business Industry Capital
Bulgaria
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BNB Exchange Rates
(26.03.2019) |
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EUR |
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1.95583 |
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GBP |
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2.28383 |
USD |
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1.72700 |
CHF |
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1.74053 |
EUR/USD |
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1.1325* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.03 |
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0 % |
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Financial news |
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While the prospects for Bulgaria's economic growth remain good, downside risks have recently risen mainly due to the weakening in trading‑partner growth and global trade, the International Monetary Fund said. "With sound macroeconomic policies in Bulgaria, Directors emphasized the need to implement broad‑based structural reforms to boost potential growth, accelerate EU income convergence, and address unfavorable demographic dynamics," the IMF said in a statement as its executive board concluded the Article IV consultation with Bulgaria. In order to bolster its prospects, Bulgaria should focus on key issues such as improving the efficiency of public spending, the quality of public institutions, and the governance framework. Also, the country should focus on developing effective labor market policies and stimulating a deeper collaboration between educational institutions and business, which could help mitigate labor shortages and skill mismatches. The IMF also encouraged the authorities to maintain the reform momentum through effective implementation, in order to support inclusive and sustainable growth over the medium term. Source: Capital
Bulgaria's current and capital account in January was positive and amounted to EUR 161.8 million. This is an increase in the results, as a year earlier our country reported a deficit of EUR 123.2 million. According to the preliminary data of the Bulgarian National Bank (BNB), in the first month of this year, the current account balance was up by EUR 88.7 million, while a year earlier it was down by EUR 139.4 million. The trade balance for January 2019 was negative at EUR 64.5 million, with a deficit of EUR 205.5 million a year earlier. In the first month of this year, the bulk of Bulgarian exports amounted to EUR 2,336 billion, with exports growing by 8.4% (EUR 180.2 million) a year earlier. By comparison, exports in January 2018 increased by 13.9% on an annual basis. In January, goods were imported for EUR 2,400 billion, with an annual growth of 1,7% (EUR 39.2 million). Imports last January rose by 20% on an annual basis. Source: investor.bg
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Companies |
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The Czech newspaper Lidove News’ website announced that a third potential buyer of the Bulgarian business of CEZ has appeared. The media says that this is the Eurohold financial group, referring to three independent sources. A few hours after disclosure, Eurohold Bulgaria announced in a press release that the company "does not comment on rumors or speculative information, especially when it concerns third parties." The company adds that they are a public company and, as such, strictly observe the legal provisions and rules for the disclosure and dissemination of corporate information." Any published speculative unconfirmed information could affect the stock price of the holding and harm the interests of shareholders, including minority shareholders, and this could also be considered a violation of the laws governing the business of public companies. Eurohold and its subsidiaries have always publicly announced their acquisitions using all existing media channels and informing all stakeholders at the same time.
The bTV owner, Central European Media Enterprises (CME), has officially launched a process of exploring and evaluating potential strategic alternatives including eventual sale of part or whole of the company. In addition to the ability to sell the company, including its Bulgarian assets, options for CME may include merging with another strategic partner, recapitalization or continuation of the company's long-term business plan. According to information published on the stock exchange in the Czech Republic, the largest shareholder in CME - AT&T, fully supports the plan for reviewing strategic alternatives. CME also says that it may eventually not change the structure after completing the strategic alternatives overview. The owner of bTV has not set a timeline for this process and does not intend to provide updates or additional comments unless it considers that further disclosure is appropriate or necessary. Source: Banker
Bulgarian fertilisers trader Fert Bul said that its management is seeking the approval of the company's sole owner to acquire local peer Ferticom for an undisclosed price. Fert Bul's owner will vote on the proposal at a meeting scheduled for April 30. Fert Bul generated revenue of BGN 67.6 million in 2017, ending the year with a net profit of BGN 1.6 million, its latest available financial statement shows. Ferticom booked revenue of BGN 15.3 million in 2017 and posted a net loss of BGN 70,000. As at May 17, 2018, when the Ferticom's last shareholders meeting was held, the company was majority owned by a private investor, who held a 90% stake.
An investment of BGN 410 million has so far made Kronospan Bulgaria the largest foreign investor in the whole Veliko Tarnovo region. The company also changed the local labor market because it gave nearly 30 per cent higher wages than the average for the region. So far, the company has fulfilled its 90% investment program in relation to the enterprise in Veliko Tarnovo. There is a phased introduction of the installations and facilities in the base located in Dulga Laka. Investment in environmental installations and facilities is expected to exceed BGN 40 million. The electrostatic gas wet filter is already in the start-up phase and will soon be put into operation. Kronospan will buy and install at its own expense a monitoring station for fine dust matter in the Cholakovtsi quarter. This has already been agreed with the Municipality of Veliko Tarnovo, RIEW, Regional Laboratory - Veliko Tarnovo and is part of the company's measures for publicity and information of the citizens. Source: Borba - Veliko Tarnovo
Bulgaria’s prosecutor’s office said on March 25 that it has issued orders to block the operation of Russian ride-sharing service Maxim in Bulgaria for a period of six months. The Supreme Administrative Prosecutor’s Office said that it ordered an investigation in May 2018 following reports that the company carried out unregulated taxi services. The checks were carried out by Bulgaria’s car administration agency, police and revenue agency officials. The prosecutor’s office said that it forwarded the findings of its investigation to the Commission on Protection of Competition (CPC). The anti-trust regulator said earlier this month that it opened its own probe into Maxim’s operations. Maxim has been operating in Bulgaria since 2014, offering ride-sharing services through a smartphone app, a business model identical to the better-known Uber, which made an attempt to enter the Bulgarian market but left after less than a year.
Bulgarian battery maker Monbat said that its consolidated profit before taxes soared 190.5% to BGN 4 million in the first two months of 2019. Monbat’s earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 60.7% to BGN 7.2 million in the January-February period. Consolidated revenue came in at BGN 57.6 million in the review period, 30.7% higher than a year earlier. In February alone, Monbat posted a pre-tax profit of BGN 1.9 million, as its revenue increased 64.3% to BGN 28.7 million. Monbat's consolidated net profit shrank to BGN 2.8 million in 2018 from BGN 31.2 million in 2017, as its revenue dropped 9.5% to BGN 298.1 million.
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Bulgarian Industrial Association
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World
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Europe |
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Brussels says it has completed its preparations for a no-deal Brexit and warned that it is “increasingly likely” that the UK will crash out. In a statement released on Monday the European Commission said “preparedness and contingency work”, which it has been conducting since December 2017, was now finished. The announcement comes days after EU leaders agreed to a request by Theresa May to extend the UK’s Brexit date – though not by as long as she had asked for. Article 50 has now been extended until April 12, meaning the UK will crash out without a deal if it does not pass the withdrawal agreement by then, secure a further extension, or unilaterally cancel the Brexit process. If MPs approve the withdrawal agreement this week the EU has also granted an additional extension to May 22 – just before the European Parliament elections. A further, long extension could also be provided until at least the end of the year – but only if the UK signals that it wants to participate in the elections and does so before April 12. Source: Associated Press
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America |
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The US logged its biggest monthly fiscal gap ever last month. The budget widened to $234 billion in February, the Treasury Department announced on Friday, compared with a monthly shortfall of $215.2 billion a year earlier. Last month's budget gap helped push the US government's budget deficit up 39% to $544 billion for the first five months of the fiscal year as federal spending ballooned and revenue mostly stayed the same. The widening budget gap comes as President Donald Trump's $1.5 trillion tax cut package has weighed on tax receipts and raised concerns about the country's rising debt, which stands at more than $22 trillion. Federal Reserve Chairman Jerome Powell warned earlier this week that "deficits matter," saying the country's fiscal stance need to be addressed. This month's budget report was delayed by a week due to the 35-day partial government shutdown, which ended in January. The federal government spending on health programs and defense rose 9% to $1.8 trillion for October to February period, while revenues from taxes and elsewhere fell less than 1% to $1.28 trillion.
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Asia |
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Two rival camps contesting Thailand's first election since the military coup in 2014 have both said they are trying to form a coalition government. Early results give the pro-military Palang Pracha Rath Party (PPRP) a larger share of the popular vote. At the same time, the main opposition Pheu Thai party currently has the biggest number of seats in parliament. But there are growing complaints about irregularities during Sunday's poll and a vote count marred by confusion. The Electoral Commission (EC) is also facing strong criticism for its decision to delay publishing the full results without providing any explanation. Thailand's complicated electoral system allocates some parliamentary seats according to the number of votes received. Critics say electoral law changes introduced by the military in 2017 are primarily designed to keep pro-military forces in power. On Monday, the EC announced that Pheu Thai party, which is linked to former Prime Minister Thaksin Shinawatra, had won 138 seats in the 500-strong lower chamber of parliament.
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Indexes of Stock Exchanges 25.03.2019 |
Dow Jones Industrial |
25 516.83 |
(14.51) |
Nasdaq Composite |
7 637.54 |
(-5.13) |
Commodity exchanges 25.03.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 59.27 |
Heating oil ($US/gal.) | 1.9800 |
Natural gas ($US/mmbtu) | 2.7700 |
Unleaded gas ($US/gal.) | 1.8900 |
Gold ($US/Troy Oz.) | 1 317.70 |
Silver ($US/Troy Oz.) | 15.50 |
Platinum ($US/Troy Oz.) | 852.60 |
Hogs (cents/lb.) | 95.55 |
Live cattle (cents/lb.) | 121.12 |
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The capturing of Edirne fortress |
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On March 24, 1913 the Second Bulgarian Army, supported by two Serbian divisions, began the attack for seizing the impregnable fortress of Edirne. The town was fortified by the Ottoman Empire under the management of German engineers on the eve of the Balkan War (1912-1913). The defense line consisted of three fortified positions. The first was 9-11 km away from the town, and the second and the third – 1-3 km. The positions had 24 stone forts, stationary big-calibre battery, trenches, wire entanglements and land mines. Its garrison numbered 65 000 Ottomans and officers, 524 guns and 20 heavy machine-guns. Against them the Bulgarian forces set 120 000 Bulgarian and 40 000 Serbian soldiers. They had 1300 guns. The plan of the military headquarters was the attack to begin at night. The assault continued to March 26, 1913 and the fortress was seized. 14 Ottoman generals, 2 000 officers, 50 000 soldiers and 413 guns were captured. The Bulgarians lost less than 2 000 soldiers in the attack.
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