Business Industry Capital
Bulgaria
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BNB Exchange Rates
(21.05.2019) |
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EUR |
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1.95583 |
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GBP |
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2.23217 |
USD |
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1.75144 |
CHF |
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1.73651 |
EUR/USD |
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1.1167* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.05 |
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0 % |
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Financial news |
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Foreign direct investment in Bulgaria in the first three months of the year recorded an outflow of EUR 254.4 million, the equivalent of 0.4 per cent of the gross domestic product (GDP), statistics from the Bulgarian National Bank (BNB) showed. In the first quarter of 2018, FDI recorded an outflow of EUR 52.6 million, but the BNB originally reported an inflow of EUR 179.1 million, which was revised downward later. Investment in equity, including in the real estate sector, showed an outflow of EUR 562.8 million (compared to an outflow of EUR 184.5 million in the first three months of 2018) and re-invested earnings recorded an outflow of EUR 72.5 million (versus an inflow of EUR 65.2 million a year earlier). Receipts from real estate investments by foreign companies totalled EUR 2.2 million, compared to EUR 7.1 million during the same period of 2018. The central bank data showed EUR 380.9 million in investment inflows, recorded as the change in the net liabilities of Bulgarian companies towards their foreign investor owners, compared to EUR 66.7 million recorded in Q1 2018. Such financial flows include financial loans, suppliers’ credits and debt securities, BNB said.
Bulgaria's current account was in surplus of EUR 654.3 million in the first three months of 2019, compared with a surplus of EUR 5.7 million a year earlier, the central bank said on Monday. The current account surplus in January-March was equivalent to 1.1% of the central bank's forecast for Bulgaria's gross domestic product (GDP) in 2019, the Bulgarian National Bank (BNB) said in a monthly balance of payments report.
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Companies |
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The German company Kostal opened in Pazardzhik a plant for production of automotive parts with 1200 new jobs. The ambition of the investor is to make the number of employees 4000 in all production facilities in Pazardzhik out of the 17,000 employees of the company in the world by 2020. Kostal Bulgaria Automotive operates in Bulgaria since 2016 and produces electronic and mechatronic components for the automotive industry. Components for more than 5 million vehicles worldwide are produced in Bulgaria. The ceremony was attended by the Deputy Prime Minister Tomislav Donchev, the Minister of Finance Vladislav Goranov, the President (2012-2017) Rosen Plevneliev, the Mayor of Pazardzhik Todor Popov.
Food processing company Bella Bulgaria has acquired Hungarian peer Marathon Foods for BGN 12 million. With this investment Bella Bulgaria targets active presence in food deliveries to the markets of Western Europe, which is in line with the company's capacity expansion plans. By acquiring Marathon Foods, Bella Bulgaria's partner network expands by including brands such as McDonald’s, BurgerKing, Aldi, FamilyFrost, O’Cool, Tesco, Iceland, Spar, Auchan. The deal will also widen Bella Bulgaria's product portfolio. Earlier this year, Bella Bulgaria announced that it intends to invest BGN 15 million in capacity expansion in 2019. Bella Bulgaria has nine factories with a combined output of 350 tonnes of food per day. The company has affiliates in Romania and Greece and intends to set up one in Serbia this year. Source: Capital
With the launch of the new 2500-ton innovative Hybrex press for the production of special aluminum profiles, manufactured by the leader in the production of such equipment the German SMS, , the first stage of the investment program launched in late 2016 was completed, Alcomet JSC announced. ‘The new machine will enable the company to increase the production capacity to 35,000 tons per year in the medium term, and the company aim is to get into the automotive industry together with the existing equipment,’ said the managers of the biggest Bulgarian producer of aluminum rolled and pressed products. Over the past 30 years, Alcomet has successfully developed as one of the largest rolled aluminum producers in the Balkans and has gained prominence as a partner in both international and domestic markets. The modern technological equipment of the three main workshops - foundry, roller and press, and the application of modern aluminum and aluminum alloy processing methods allow the production of a wide range of rolled and pressed products in accordance with European standards. Source: Banker
Transport Group Bulgaria has completed the first stage of an investment project in the village of Tsaratsovo, Plovdiv, worth more than BGN 3 million. These funds are invested in the construction of a new base for the transport companies under Transport Group’s cap and the purchase of 11 new high ecological class trucks. Transport Group Bulgaria manages a total of 13 companies. All of them are registered in Bulgaria as subsidiaries of Belgian companies. Some of the companies also have branches in Portugal and Spain. The Belgian contractor trucks carry out specialized shipments with containers and tarpaulins to England and Ireland, while others transport fresh meat to Europe. There are a total of 380 employees in the companies of Transport Group Bulgaria, 150 of them employed in Bulgaria. The amount of assets managed by the company is worth BGN 25.583 million and the total profit for 2018 is BGN 625 thousand. In 2018, Gert Bernard founded J & V Logistics with the idea to increase its business Bulgarian market and buy 3 new EURO-6 trucks for it. Source: Capital
The German railway company Deutsche Bahnhof is the new owner of the railway carriage repair factory in Karlovo Vagono - Remonten Zavod. The deal was prepared for several months and finalized a week ago. The new owner intends to resume the production of freight wagons as well as their repair and also to extend the activity of repair and maintenance of locomotives. It is expected that the company will start work in September by initially employing 70 workers, and in the next 18 months, a total of 300 jobs will be opened. The reconstruction of the wagon repair factory, one of the main enterprises in the region, is expected to boost the development of the regional economy, said the mayor of the municipality Dr. Kabaivanov. Vagono - Remonten Zavod was declared insolvent at the request of the owners and the creditors on July 9, 2015. Source: Marica
The production at the Aurubis Bulgaria copper production plant in Pirdop decreased for the six months until the end of March compared to the achieved volumes a year earlier. This shows the report of the German group Aurubis for the first half of the financial year 2018/19. The main reason for the decline was the unplanned shutdown of production at the end of last year. Similar factors have affected other plants in the same segment of the group, which has lowered their total revenue and operating profit for the period. The reduction in Aurubis Bulgaria's production was visible in the first quarter of the financial year, but Aurubis's report showed that volumes were smaller during the rest of the period. Processed concentrate and produced sulfuric acid decreased by a two-digit rate on an annual basis, but the production of copper cathodes (high purity copper) declined by only 3%. Unplanned stopovers in the first quarter have resulted in limiting the processing of concentrates in the Hamburg and Pirdop plants. In the second quarter, the quantities were also smaller due to different maintenance activities. Source: Capital
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Bulgarian Industrial Association
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World
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Europe |
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Greece’s Independent Public Revenues Authority has issued a circular with regards to the new decreased Value Added Tax that goes into effect as of Monday, May 20, 2019. The circular analytically describes the sectors affected by the decreased V.A.T. It affects hundreds of food items, catering services but also hotels and social facilities. Supermarkets and other food selling or offering businesses have to adjust their price lists and cash registers as of Monday. However, big supermarkets have been reportedly belated in adjusting their prices with owners assuring that consumers may not see the decreased prices on the shelves but the reduction will take place at the cash register. “By next Thursday, the procedure will be completed,” the director of a big supermarket said.
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America |
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Alphabet Inc’s Google has suspended business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing, a source familiar with the matter told Reuters on Sunday, in a blow to the Chinese technology company that the U.S. government has sought to blacklist around the world. Holders of current Huawei smartphones with Google apps, however, will continue to be able to use and download app updates provided by Google, a Google spokesperson said, confirming earlier reporting by Reuters. “We are complying with the order and reviewing the implications,” the Google spokesperson said. The suspension could hobble Huawei’s smartphone business outside China as the tech giant will immediately lose access to updates to Google’s Android operating system. Future versions of Huawei smartphones that run on Android will also lose access to popular services, including the Google Play Store and Gmail and YouTube apps.
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Asia |
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Japan's economy unexpectedly grew in the three months to March, shrugging off forecasts for a contraction in the world's third largest economy. The economy grew at an annualised 2.1% in the period, preliminary gross domestic product (GDP) data showed. That beat analyst expectations for a 0.2% contraction, as imports fell faster than exports. The data were closely watched for any signals a planned sales tax rise could be delayed. The surprise expansion in the official GDP figure was fuelled mostly by imports falling faster than exports. Imports slid 4.6% - the biggest fall in a decade, according to Reuters - while exports dropped more than a 2.4%. "The surprising resilience of the economy at the start of the year means that GDP growth will be stronger this year than we had anticipated," senior Japan economist at Capital Economics Marcel Thieliant said. Mr Thieliant also said that following the better-than-expected growth figures Japan "will press ahead with the sales tax hike scheduled for 1 October".
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Indexes of Stock Exchanges 20.05.2019 |
Dow Jones Industrial |
25 679.90 |
(-84.10) |
Nasdaq Composite |
7 702.38 |
(-113.91) |
Commodity exchanges 20.05.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 63.50 |
Heating oil ($US/gal.) | 2.0800 |
Natural gas ($US/mmbtu) | 2.6600 |
Unleaded gas ($US/gal.) | 1.9900 |
Gold ($US/Troy Oz.) | 1 275.40 |
Silver ($US/Troy Oz.) | 14.42 |
Platinum ($US/Troy Oz.) | 818.20 |
Hogs (cents/lb.) | 93.00 |
Live cattle (cents/lb.) | 108.52 |
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