Business Industry Capital
Bulgaria
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BNB Exchange Rates
(13.06.2019) |
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EUR |
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1.95583 |
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GBP |
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2.20239 |
USD |
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1.72731 |
CHF |
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1.73821 |
EUR/USD |
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1.1323* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.06 |
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0 % |
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Financial news |
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The Council of Ministers decided not to include new investment projects to be financed by state loans and/or by issuing state guarantees in the draft of the State Budget Law of the Republic of Bulgaria for 2020. The reason for this is that no new project proposals have been submitted by the ministries under the Ordinance on the conditions to be met by investment projects financed by government loans and the projects applying for financing with a state guarantee and the procedure for their consideration. This decision will ensure consistency in the implementation of measures to improve the budgetary position against the backdrop of ongoing fiscal consolidation and to meet the fiscal targets foreseen in the Medium-term budget forecast for 2020-2022. The Government also decided in the draft of the State Budget Law for the next year, to provide for the possibility of issuing a State guarantee under an agreement between the International Bank for Reconstruction and Development and the Bank Deposit Guarantee Fund to provide access to the Fund to a conditional financing facility of up to EUR 350 million. Source: 24 chasa
Over BGN 3 billion or almost 84% of the financial resource under Operational Program Transport and Transport Infrastructure 2014-2020 has been negotiated. This was stated by the head of the Managing Authority of the program Galina Vassileva. "33% of the budget is paid ... This year poses a challenge to ensure a more dynamic and accelerated implementation of the projects in order to ensure their maximum effectiveness", Vassileva noted. A version of the future Transport Connectivity Program 2021-2027 is already being developed. The projects that will fall within its scope will be determined on the basis of a comprehensive analysis and assessment of their readiness and their contribution to the development of the country's transport infrastructure. Source: Banker
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Companies |
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Bulgaria's Financial Supervision Commission said that it has identified five local investment intermediaries as other systemically important institutions (O-SIIs). The five brokerages identified are Trading 212, Deltastock, Euro-Finance, Elana Trading, and First Financial Brokerage House, the financial regulator said in a statement. O-SIIs are subject to an annual review by the FSC, and also might be asked to keep an additional capital buffer equal to 2% of their total risk exposures. The results of the review can then be forwarded to the European Commission, European Banking Authority and European Systemic Risk Board. The additional buffers aim to address the potential negative effects that these institutions may have on the domestic financial system. The O-SIIs were selected in accordance with the European Banking Authority's guidance.
The Irish company Immedis plans to open 200 new jobs in Varna by the end of 2020. At present, there are nearly 100 specialists in the Varna office of the company, and the reason for the rapid expansion is a financial injection of EUR 25 million from the Scottish Equity Partners (SEP) investment fund, which Immedis expects to receive in the coming months. Thanks to the forthcoming investment, the technology company is expected to take on one of the world's leading markets for tax and payroll services. Immedis was founded in 2016 as a part of the Irish financial technology group Taxback, which employs over 750 people in Varna alone. The Irish company develops and manages specialized software for administering the remuneration of employees of multinational companies. As a result of the development, the company plans to increase its staff in Bulgaria and Ireland to 400 people in the next 18 months and the recruitment campaign in Varna is already active. The company offers opportunities for work and professional development in the field of tax legislation, information technology, programming, marketing, finance and sales. Source: Banker
The Defense Ministry has signed two framework agreements with the state-owned Terem Holding to repair Russian helicopters. The total value of the deal is BGN 38.7 million. The ministry announced that Terem Letetz subsidiary will fulfill 93% of the construction works under the two contracts. The larger contract, amounting to BGN 27.8 million, provides for the capital repair of four Mi-24 helicopters and the other one concerns the capital repair of another four helicopters Mi-17. For both contracts, according to the signed framework agreement, the term for the execution of the contract is 48 months (4 years). There is a requirement, however, within eight months that the contractor is ready with at least one machine per contract. Three bidders submitted bids for the Mi-24 repair contract, while the smallerrepair contract for Mi-17 attracted the interest of four companies. Source: economic.bg
Bulgaria's Financial Supervision Commission said that it has asked local diversified group Holding Nov Vek to provide further information and documents regarding its request for approval of a prospectus for listing a bond issue on a regulated market in the European Union. The financial regulator did not provide further details in its statement. This is the second time the FSC has asked Holding Nov Vek to fix its prospectus, after it did so in April. Holding Nov Vek placed an eight-year EUR 15 million bond issue in 2015. The issue consists of 15,000 bonds with a nominal value of EUR 1000 each. The bonds carry an annual coupon of 4.5% with interest payments due twice per year. Holding Nov Vek listed the issue on the Bulgarian Stock Exchange in 2016.
Bulgarian drug trader Phoenix Pharma, part of Germany's Phoenix Group, has signed a BGN 9.6 million deal for supply of pharmaceutical products to the National Oncology Hospital, the state-owned hospital said. The deal was signed on May 10, the Sofia-based hospital said. A total of 16 companies submitted offers in the public procurement procedure for awarding the contract. Besides wholesale, Phoenix Pharma's activities also include pre-wholesale, as well as development of pharmacy software. The company has four distribution centres in Bulgaria - in the cities of Sofia, Plovdiv, Burgas and Veliko Tarnovo.
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Bulgarian Industrial Association
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World
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Europe |
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US private equity giant KKR wants to take the owner of Business Insider private in a deal that values the European publishing company at nearly $8 billion. KKR offered investors in Axel Springer EUR 63 per share in a deal that has support from the company's largest shareholder, Friede Springer, and CEO Mathias Döpfner. The offer values the Berlin-based company at EUR 6.8 billion (USD 7.7 billion). The price is a 12.5% premium over Tuesday's close and an increase of nearly 40% from late May, when talks between the companies were first reported. Axel Springer, which owns a range of publications, including top German tabloid newspaper Bild and the website Business Insider, has been under intense pressure from investors in recent months. The publisher said Wednesday that it expects revenue for the current financial year to decline "in the low single-digit percentage range." It also expects profit to fall. Axel Spring said tougher economic conditions and the introduction of a digital tax in France forced the company to change its forecast. Springer, the widow of founder Axel Springer and owner of 42% of the company, said in a statement that partnering with KKR would allow for new investments.
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America |
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US consumer price inflation was expected to have increased at a pace of 1.9% in May, slower than in April and below the Federal Reserve’s 2% target. A higher reading of inflation would have the opposite effect and dim expectations for a rate cut, which market players are betting could happen in July and then again later in the year. Economists expect the consumer price index to rise by 0.1%, according to Dow Jones. That compares with a gain of 0.3% in April. On a year-over-year basis, that would be a rise of 1.9%, versus 2% in April. Core CPI, which excludes food and energy, is expected to rise by 0.2%, or an annual rate of 2.1%, in line with April’s core reading. The Fed’s preferred measure of inflation is the personal consumption expenditures index, which was 1.5% in April. The Fed meets next week, then again at the end of July. Hill said in the fed funds futures market, expectations are just 12% for a quarter-point rate cut in June, but the market has priced in an 82 percent chance of a quarter-point cut in July.
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Asia |
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Nintendo Co. is shifting some production of its Switch videogame console to Southeast Asia from China to limit the impact of possible U.S. tariffs on Chinese-made electronics, said people who work on Nintendo’s supply chain. Kyoto-based Nintendo has traditionally relied on the Chinese factories of contract assembly companies to make its videogame hardware. That includes the Switch console, introduced in 2017. In March that Nintendo planned to update the Switch this year with two new models. One is set to look similar to the current model with beefed-up components, while the other is expected to be a less-expensive model with a new look. People involved in the supply chain said production in Southeast Asia has started for the Switch, including the current type and the two new models, suggesting Nintendo is getting ready to introduce them soon. They didn’t give specific volume figures but said Nintendo wanted to have enough units to sell in the U.S., the largest market for videogame consoles, when the new products go on the market. Source: Wall Street Journal
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Indexes of Stock Exchanges 12.06.2019 |
Dow Jones Industrial |
26 004.83 |
(-43.68) |
Nasdaq Composite |
7 792.72 |
(-29.85) |
Commodity exchanges 12.06.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 51.35 |
Heating oil ($US/gal.) | 1.7900 |
Natural gas ($US/mmbtu) | 2.3600 |
Unleaded gas ($US/gal.) | 1.6900 |
Gold ($US/Troy Oz.) | 1 338.50 |
Silver ($US/Troy Oz.) | 14.76 |
Platinum ($US/Troy Oz.) | 811.70 |
Hogs (cents/lb.) | 82.52 |
Live cattle (cents/lb.) | 105.20 |
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St. Toma Island |
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The St. Toma island is situated in the Black Sea gulf of Alepu, very close to the shore. It is named after St. Toma, because there was a small chapel bearing the name of the saint built on the territory of the island. Its area is 10 decares and is known to be the only place in Bulgaria, where wild cactuses grow. They were planted here some 60 years ago and have amazingly adapted to local conditions. The cactuses themselves are home to many birds. The island is also known for its many snakes, that’s why many call it the Snake Island. A part of the island is the Oil Cape, which is the farthest eastern part of the Strandja mountain and the third biggest cape in the Bulgarian Black Sea coastal area. Its steep slopes make it extremely hard to access. In the past, it had a bad fame of being a place, where many ships crushed. Since most of them were loaded with olive oil, the place was called the Oil Cape, and during the Turkish Yoke – Zeytun Borun (the same meaning in Turkish). Legends say that at that time, secret tunnels connected the Oil Cape and the fortress of Valchan Voyvoda. According to these legends, many pirate treasures were buried on the island.
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