Business Industry Capital
Bulgaria
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BNB Exchange Rates
(28.06.2019) |
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EUR |
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1.95583 |
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GBP |
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2.18704 |
USD |
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1.72017 |
CHF |
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1.75868 |
EUR/USD |
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1.1370* |
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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About 20.9 per cent of young people in Bulgaria – aged 20 to 34 – were neither in employment nor in education and training (NEET) in 2018, EU statistics agency Eurostat said. This was the third-highest percentage in the EU, after Italy and Greece. There was a considerable difference by gender. Among young Bulgarian women, the rate was 26.2 per cent, while among young Bulgarian men, it was 15.9 per cent, Eurostat said. The statistics agency said that in 2018, about one in six (16.5 per cent) of young people aged 20-34 were neither in employment nor in education and training in the EU. This corresponds to about 15 million young people. The share of people not in employment, education or training (the NEET rate) for those aged 20-34 varied considerably across the EU member states in 2018. The lowest NEET rates for people aged 20–34 in 2018 were in Sweden (eight per cent), the Netherlands (8.4 per cent), Luxembourg (9.9 per cent) and Malta (10.1 per cent).
Bulgaria's gross foreign debt edged up by an annual 1% to EUR 33.96 billion at the end of April, the central bank said. The gross foreign debt at the end of the fourth month of the year was equivalent to 57.4% of the projected 2019 gross domestic product (GDP), the Bulgarian National Bank said. Compared with the end of March, Bulgaria's external debt was 0.5% higher at the end of April.
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Companies |
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The Fund Manager of Financial Instruments in Bulgaria has signed contracts with First Investment Bank (Fibank), Microfund and SIS Credit. They are chosen as intermediaries in the implementation of the financial instrument "Microcredit with shared risk". The money for this financial instrument is provided by the Operational Program "Human Resources Development" 2014-2020 (OPHRD) co-financed by the European Structural and Investment Funds. FIBank will manage a public resource amounting to BGN 15 million, and the Bank is committed to providing additional BGN 4 825 000 of private capital. For the microfinance institution Microfund, the Fund of Funds provides BGN 3 million for management, which with the additional own private resource funding will reach BGN 3.23 million for the final recipients. SIS Credit, which will also manage BGN 2.5 million, will provide a total of BGN 2.84 million through private co-financing. It is expected for these resources to reach up to 850 start-ups and social enterprises.
The Bulgarian-American Credit Bank has created a special investment fund for risky investments in small and medium-sized enterprises that have growth potential, but for a number of reasons cannot meet the requirements for standard bank credit. Among these reasons, most often are the lack of collateral or the insufficient amount of net cash flows. The new IDS Fund has a start-up capital of BGN 1 million and will offer financing in the form of both direct loans and equity participation in the capital of the clients, as well as consultancy assistance and other expert support in their development. The target group of companies in which the IDS Fund has interest of investing includes fast-growing Bulgarian companies in the field of IT - e-shops, online trading companies, software companies, digital services companies, etc. in a period of growth that have the potential to win a leading market position, both in Bulgaria and in the region. The Fund will provide support in the form of debt financing instruments, guarantees, standard funding, acquisition of redemption shares, etc.
Tesla finally settles in Eastern Europe. The US electric vehicle manufacturer will build its first Suреrсhаrgеr station in Bulgaria in 2020. Its plans are known from the beginning of 2017, but so far there was no further information when it will become a fact. The charging station will be part of the corridor that Tesla builds, "from Norway to Turkey," in the words of Chief Executive Officer Elon Musk. So far, there are no Tesla charging stations in Bulgaria and neighboring countries, nor are service shops or shops. The company plans to build a number of charging stations on the Balkans, but has not yet announced when this will happen. At the end of last year there were 70 Tesla cars and a total of 785 electric cars in Bulgaria.
Bulgarian state-owned Electricity System Operator (ESO) said that it has signed a BGN 20 million four-year framework agreement with local Impuls Ko for construction, repair, reconstruction and rehabilitation of 60-110 kV power lines. The contract was signed on June 12. Six companies tabled bids in the public procurement procedure for awarding the contract. Earlier this year, ESO signed a BGN 3 million power line reconstruction deal with Impuls Ko, envisaging replacing 52 utility poles and adjacent equipment along a 23-kilometer 110 kV power line.
Bulgarian refrigerators and freezers producer Liebherr-Hausgerate Marica, part of Swiss-headquartered Liebherr Group, said that its net profit plunged to BGN 716,000 in 2018 from BGN 13 million the year before. Liebherr-Hausgerate Marica's sales of finished goods fell to BGN 402.7 million last year from BGN 412 million in 2017. The company manufactured 898,000 refrigerators and freezers in 2018. Expenses for materials fell to BGN 306.8 million in 2018 from BGN 321 million in 2017, while personnel costs rose to BGN 49.5 million from BGN 48.7 million. Amortisation and depreciation costs edged down to BGN 26.1 million last year from BGN 26.9 million in 2017. Expenses for hired services amounted to BGN 19.2 million in 2018, up from BGN 18.0 million the year before. Liebherr-Hausgerate Marica's assets fell to BGN 250.9 million at the end of 2018 from BGN 271.1 million a year earlier. Liebherr-Hausgerate Marica employed 1,903 people at the end of 2018.
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Bulgarian Industrial Association
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World
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Europe |
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The European Council prolonged economic sanctions targeting specific sectors of the Russian economy until 31 January 2020. This decision follows an update from Chancellor Merkel and President Macron to the European Council of 20-21 June 2019 on the state of implementation of the Minsk Agreements, to which the decision as to maintain the sanctions is linked. Following this update, the European Council called for an urgent resumption of negotiating efforts with a view to the implementation of the Minsk Agreements and for measures aimed at rebuilding confidence among the parties. In this context, EU leaders unanimously agreed to maintain the economic sanctions on Russia. The Council formalised this decision today by written procedure. The measures target the financial, energy and defence sectors, and the area of dual-use goods. They were originally introduced on 31 July 2014 for one year in response to Russia's actions destabilising the situation in Ukraine and strengthened in September 2014. The duration of the economic sanctions was linked by the European Council on 19 March 2015 to the complete implementation of the Minsk Agreements, which was foreseen to take place by 31 December 2015. Source: Associated Press
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America |
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Ford said it will cut 12,000 jobs in Europe by the end of next year to try to return the business to profit, part of a wave of cost reductions in an auto industry facing stagnant demand and huge investments to build low emission cars. The challenge of investing in electric, hybrid and autonomous vehicles while having to overhaul combustion engines to meet new clean-air rules, has forced Europe’s carmakers to slash fixed costs and streamline their model portfolios. Ford Europe has been losing money for years and pressure to restructure its operations increased after arch-rival General Motors G.M raised profits by selling its European Opel and Vauxhall brands to France’s Peugeot SA. Ford said it would close three plants in Russia, a plant in France and Wales, and cut shifts at factories in Valencia, Spain and Saarlouis, Germany. Following the sale of the Kechnec Transmission plant in Slovakia, to Magna, Ford’s manufacturing footprint will be reduced to 18 facilities by end-2020, from 24 today. About 12,000 jobs will be affected at Ford’s wholly owned facilities and consolidated joint ventures in Europe by the end of 2020, primarily through voluntary separation programs.
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Asia |
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China’s factory activity is expected to have pulled back for a second straight month in June, according to a Reuters poll of analysts, as domestic business conditions worsened and the protracted Sino-U.S. trade war hit demand. The official Purchasing Manager’s Index (PMI) for June is expected to have edged up to 49.5 from May’s reading of 49.4, according to the median forecast of 20 economists. However, that’s still below the 50-point mark that separates expansion from contraction on a monthly basis. A downbeat reading, along with somber indicators seen in May and April, would suggest economic growth is likely to slow this quarter and increase the prospect of further policy easing in the coming months. “We expect factory activity to remain weak in the short run as domestic and overseas demand faltered, which was set to continue denting investment and output,” said Tang Jianwei, a senior economist at Bank of Communications in Shanghai.
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Indexes of Stock Exchanges 27.06.2019 |
Dow Jones Industrial |
26 526.58 |
(-10.24) |
Nasdaq Composite |
7 967.76 |
(57.79) |
Commodity exchanges 27.06.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 59.14 |
Heating oil ($US/gal.) | 1.9500 |
Natural gas ($US/mmbtu) | 2.3200 |
Unleaded gas ($US/gal.) | 1.9000 |
Gold ($US/Troy Oz.) | 1 422.40 |
Silver ($US/Troy Oz.) | 15.26 |
Platinum ($US/Troy Oz.) | 816.50 |
Hogs (cents/lb.) | 77.18 |
Live cattle (cents/lb.) | 105.35 |
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June 28 1914 – Sofia Stock Exchange constituent assembly |
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On February 21, 1912, Parliament adopted the first Law on the stock exchanges, which was promulgated in the State Gazette on February 28 the same year. Sofia Stock exchange obtained official permit to start operating and started effective activity on June 28 1914, only a few days before the beginning of World War I. On May 25, 1915, the Stock Exchange Regulation was adopted by a Decree. All issuers of securities, such as banks, production and trading companies, were invited to register for participation in the stock trade. On December 18, 1917, the Sofia Stock Exchange issued a Regulation for the Internal Order of the stock exchange and decided three trading sessions to be conducted each week. On January 20, 1918 the stock exchange was officially opened. It was the sole stock market in Bulgaria until its nationalization on December 27, 1947 when it was transformed into a department of the Bulgarian National Bank and discontinued its activities until 1992. On April 8 1992, Sofia Stock Exchange (currently SFB Capital Market JSC) organized the first public trading session in Bulgaria’s new economic history. In 1997, the Bulgarian capital market integration process was completed and Bulgarian Stock Exchange – Sofia JSC officially started operating on October 21.
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