Unemployment in Bulgaria was 4.7 per cent in February 2019, down from 5.4 per cent in February 2018 and unchanged from January, according to seasonally-adjusted figures released by European Union statistics agency Eurostat on April 1. Bulgaria’s unemployment rate in February 2019 represented about 157,000 people, down from about 182,000 the same month a year earlier, Eurostat said. February 2019 was the latest in a succession of months that Bulgaria’s unemployment rate was below the EU average, which was 6.5 per cent – the lowest across the 28 member states of the EU since the start of the monthly unemployment series in January 2000, the statistics agency said. In Bulgaria, youth unemployment in February 2019 was 12.4 per cent, down from 12.7 per cent in February 2018. This represented about 18,000 Bulgarian under-25s, compared with 20,000 a year earlier.

At the end of February, the Treasury reported a consolidated fiscal program surplus of 1.3% of the projected Gross Domestic Product for 2019. The Office's high scores are mainly due to a surplus in the national budget (EUR 1.2 billion) and to EU funds (BGN 230.6 million). On a cash basis at the end of February, the Consolidated Fiscal Program (CFP) balance was positive at the amount of BGN 1.5 billion (1.3% of the projected GDP), the agency said in a statement, according to preliminary data. Revenues and CFP aid received by February 2019 amounted to BGN 7.22 billion or 16.5% of the annual projections. Compared to the same period of the previous year, tax and non-tax revenues increased by BGN 576.5 million (9.3%), and the proceeds of aid (mainly grants under EU programs and funds) increased by BGN 430.9 million. The total amount of the tax revenues, including income from insurance contributions, amounts to BGN 5.58 billion, which represents 16.1% of the tax revenues planned for the year.

Automotive components manufacturer Magna Powertrain Plovdiv has a new owner - South Korea's Hanon Systems. The Bulgarian company is part of a global deal for a total of nine Canadian Magna plants, which was completed in late March. The transaction price is for USD 1.2 billion. Magna is selling its global business with fluid pressure control products, which is part of its drive systems division. It includes nine factories on three continents - Europe, North America and Asia, with a total of 4,100 employees. Adding them to the Hanon Group creates a global giant with a combined revenue of USD 6.9 billion in 2018. Hanon Systems is a global supplier for the automotive industry and works in the field of heat and power management systems. The company has 40 plants in Asia, North America and Europe and 16.5 thousand employees. Hanon Systems is the third foreign owner of Magna Powertrain Plovdiv. The Bulgarian company was founded by German Ixetic in 2007 and production started in 2009. In 2013 the group was acquired by Magna together with the Plovdiv plant. For the last reported year 2017, Magna Powertrain Plovdiv reported a turnover of BGN 232 million, and the number of employed last year reached almost 500 people.

Financial and insurance group Eurohold Bulgaria has submitted a binding offer for the assets of Czech energy group CEZ in Bulgaria. Eurohold Bulgaria will participate in the procedure for acquiring the assets on its own, and will use own funds, with additional support to be provided by leading Western European banks. Eurohold's intention to acquire the Czech energy group's assets in Bulgaria is part of its long term strategy to enter new business segments with high growth potential. In parallel, Eurohold is looking into the possibility to divest part of non-insurance assets in order to focus on segments with the highest growth potential.

Russia's Invest Development and Bulgaria's Rentapark have acquired stakes of 20% and 35%, respectively, in Bulgarian real estate developer Borovete I through increasing the company's capital by BGN 4.57 million to BGN 8.3 million. Rentapark has acquired 2,910 shares of BGN 1,000 in par value each, while Invest Development subscribed 1,660 shares. The subscription price was not announced. Bulgaria's Sv. Sv. Konstantin i Elena Holding, which was the sole owner of Varna-based Borovete I before the capital hike, controls 45% following the increase. Sv. Sv. Konstantin i Elena Holding announced in a bourse filing that it is no longer the sole owner of Borovete I, without disclosing further details. Before the capital increase, Borovete I's capital consisted entirely of a non-monetary contribution, namely a plot of land in Sv. Sv. Konstantin i Elena resort on the Black Sea coast. Borovete I's main activity is the developing of a project for construction of a hotel complex on the land plot. Rentapark is a wholly-owned unit of Bulgaria's Elprom.

Semiconductor Manufacturing International Corporation (SMIC) said that its unit SMIC Shanghai (Cayman) Corporation has agreed to sell several subsidiaries, including Bulgaria-based ones, to China's Jiangsu CAS-IGBT Technology Co. for USD 112.8 million. Besides Bulgaria-based SMIC Sofia and LFoundry Sofia, the transaction includes SMIC Shanghai (Cayman) Corporation's stake in SMIC Hong Kong International Limited, LFoundry, and Consorzio Delta Ti Research, the Cayman Islands-registered SMIC said in a filing to the Hong Kong Stock Exchange. The deal, which is subject to the fulfilment of several conditions, is expected to be closed on June 28. The price will be paid in three tranches - USD 60 million upon closing, USD 26.4 million on September 30, and USD 26.4 million on December 30. SMIC Sofia is a design service center developing an auto-related intellectual property platform. LFoundry Sofia specialises in CMOS Image Sensor development and production.

EUR 27.184 million are granted for the project "Rehabilitation, Modernization and Expansion of the Bulgarian Transmission System - Phase 2" of Bulgartransgaz EAD by decision of the Coordination Committee to the Connecting Europe Facility. The funds are for delivery, construction and commissioning of two sections, as well as for the related construction supervision activities. The rehabilitation of sections will ensure a more secure and reliable transmission of natural gas. The main objective of the project of common interest is to adapt the gas transmission network of Bulgartransgaz EAD to the infrastructure development plans in the region. This will provide a technical opportunity to transfer additional quantities of natural gas through the territory of the country through existing and new entry and exit points such as Greece-Bulgaria interconnectors, Bulgaria-Serbia, the concept of building a Balkan Gas Hub, as well as the plans for expansion of the Chiren UGS, the statement said.

European Commission President Jean-Claude Juncker has warned that while the EU has had a lot of patience with the UK over Brexit, patience runs out. Mr Juncker said he would like the UK to be able to reach an agreement in the coming hours and days that could be followed. "So far, we know what the British parliament says no to, but we don't know what it might say yes to," he said on Italian state TV yesterday. His comments come as Ireland is set to face increasing pressure this week over the issue of the Border in the case of a no-deal Brexit. Meanwhile, amid continuing turmoil in Westminster, British Prime Minister Theresa May's Conservative Party is said to be engaged in "sensible and pragmatic" preparations for a snap election. However, with more indicative votes to take place in the House of Commons as early as today, former UK prime minister John Major warned a general election would "solve nothing". He claimed the establishment of a cross-party government would be in the "national interest" and help resolve the Brexit crisis.

U.S. retail sales unexpectedly fell in February, the latest sign economic growth has shifted into low gear as stimulus from $1.5 trillion in tax cuts and increased government spending fades. The Commerce Department said on Monday retail sales dropped 0.2 percent as households cut back on purchases of furniture, clothing, food and electronics and appliances, as well as building materials and gardening equipment. Data for January was revised higher to show retail sales increasing 0.7 percent instead of gaining 0.2 percent as previously reported. Economists polled by Reuters had forecast retail sales rising 0.3 percent in February. Retail sales in February advanced 2.2 percent from a year ago. The surprise drop in sales in February could partly reflect delays in processing tax refunds in the middle of the month. Tax refunds have also been smaller on average compared to prior years following the revamping of the tax code in January 2018. Cold and wet weather could also have hurt sales. The February retail sales report was delayed by a 35-day partial shutdown of the federal government that ended on Jan. 25.

Japan’s business mood slumped to a two-year low in the March quarter, a central bank survey showed, underscoring concerns that Sino-U.S. trade tensions and softening global demand were taking a toll on the export-reliant economy. The gloom was most pronounced among big manufacturers, where sentiment soured at the fastest pace in more than six years, stoking fears that uncertainty over the global outlook could discourage companies from spending on wages and expenditure. Separately on Monday, a private business survey showed manufacturing activity in Japan contracted for a second straight month in March, with output down at the sharpest rate in nearly three years. The downbeat surveys bolstered the view that Prime Minister Shinzo Abe’s reflationary policy dubbed “Abenomics” is sputtering, keeping the Bank of Japan under pressure to maintain or even ramp up its massive stimulus program, analysts say. If external weakness spreads to relatively firm domestic demand, that would pressure Abe to forego the twice-delayed sales tax hike, scheduled for October as he focuses more on growth than fiscal reform.