The ECB's assessment results are consistent with the results of the asset quality review and the stress tests carried out by the BNB in 2016 and show the sustainability of the Bulgarian banking sector in its entirety. This is said in a central bank statement that its board has discussed and approved the results of the ECB's audit. They are expected to be published tomorrow after the end of the working day. The communication commits itself to follow-up on the further strengthening of the banks' capital position in strict accordance with the mandate of the BNB and the relevant regulatory framework. This is necessary and anticipated, as it was clearly stated at the start of the ERM II and the Banking Union entry process that its finalization depends on the outcome of the ECB's overall assessment. It was also explicitly stated by both the Eurogroup and the ECB that the starting date of close cooperation (the alliance mechanism for non-euro area countries) "will depend on the progress made in implementing the possible measures that were necessary as a result of the overall assessment".

Bulgaria is in the 40th place for most innovative economies in the World Intellectual Property Organization (WIPO) ranking among 129 countries. Before our country are Slovakia, Lithuania and Poland, followed by Greece, Vietnam, Thailand and Croatia. Switzerland holds this year's leading position in the ranking of the most innovative economies in the world, followed by Sweden, the United States, the Netherlands and the UK. The ranking is based on 80 indicators ranging from traditional measures such as R&D investment and international patents and trademark applications to newer features such as mobile phone applications and high-tech exports. The report outlines two main issues that could slow innovation. On the one hand, government spending on R&D, especially in high-income countries, which are pushing technological development forward, are growing slowly or not at all. Second, increased protectionism is a risk to global innovation networks and the spread of innovation, according to the report.

Phillips Electric Car has shown interest in building an assembly center for electric cars, motopeds and buses designed for the European market. This was made clear during a meeting between Economy Minister Emil Karanikolov and Bang Seung-ho, President of the Phillips Group. The Dutch company has also shown interest in the eventual construction of an electric battery manufacturing center or a contract with local producers in the area. Karanikolov has assured Seung-ho that "the ministry will stand behind the idea of the company and their project on the territory of Bulgaria, which in turn will connect the production of Phillips Electric Car to Europe". According to the Minister, Bulgaria offers very good conditions for foreign investment. If the meetings are successful enough for the company, projects in other areas would also be conidered, such as energy.

Cosmetics producer Bulgarian Rose has decided to terminate its deal with Beijing Fangcaoziyan Cosmetics Trading Co. for exports of cosmetic products and rose oil due to the Chinese company's systemic failure to adhere to the agreement. The orders by Beijing Fangcaoziyan Cosmetics Trading Co. were lower than the agreed upon volume. Bulgarian Rose will continue to look for opportunities to export its output to the Chinese market. The deal between the two companies was signed in July 2018, as the China-CEE 16+1 summit was taking place in Sofia at the time. The value of exports is expected to reach BGN 40 million in the long run. Karlovo-based Bulgarian Rose, established in 1948, manufactures cosmetic products for face, body, and hair using rose oil and locally-grown herbs. Bulgarian Rose has stores in nine cities across Bulgaria.

The Sofia City Council approved amendments to the regulation plan of Mladost 3 district, which allowed the construction of the second stage of the Grand Canyon residential complex of the Turkish company Garanti Koza. It will appear in the place of the former retailer Asko Denitza. Three buildings with hundreds of dwellings will be built and they will be 80 m, 46 m and 12 m respectively. The request for permission of the site was submitted last year but was postponed several times by various commissions in the SMC. In June, on a proposal from the Transport Committee, it was recorded that before the construction of the new buildings, Garanty Koza had to make a crossroad between the nearby boulevards Andrei Lyapchev, Andrei Sakharov and Budnina Street. Yesterday, with 31 votes in favor, 9 against and 1 abstention, the SCC legalized the new condition and allowed the chief architect Zdravko Zdravkov to issue a building permit to the Turkish company. The investment is BGN 120 million.

Moody's Investors Service has completed a periodic review of the ratings of Raiffeisenbank Bulgaria, which did not involve a rating committee. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the lender's ratings, and a comparison of the financial and operating profile to similarly rated peers, Moody's said in a statement. The publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. "Raiffeisenbank (Bulgaria) EAD's (RBB) Baa2 deposit rating is driven by (1) its ba2 standalone Baseline Credit Assessment (BCA); (2) one notch of affiliate support uplift from Moody's assessment of a high likelihood of support from its Austrian parent, Raiffeisen Bank International AG (deposits: A3 stable, BCA: baa3); and (3) two notches of rating uplift from the application of Moody's Advanced Loss Given Failure (LGF) analysis. RBB's ba2 standalone BCA captures the bank's improved asset quality and its solid capitalisation. The BCA also reflects recent strong loan growth that leaves part of the bank's loan book unseasoned, and Moody's expectation that strong competition will continue to put pressure on margins and profitability. "

Power utility CEZ Electro Bulgaria, part of Czech energy group CEZ, said that its net profit rose to BGN 6.2 million in the first half of 2019 from BGN 4.6 million in the same period of 2018. CEZ Electro's revenue grew to BGN 277.8 million in the January-June period of 2019 from BGN 266.2 million in the comparable period of last year, the company said in an interim financial statement. The company's expenses increased to BGN 270.9 million in the first six months of the year from BGN 261.0 million in the like period of 2018. Last month, financial and insurance group Eurohold Bulgaria signed a deal to acquire the Bulgarian assets of Czech energy group CEZ, including a majority stake in CEZ Electro Bulgaria, for EUR 335 million. The deal is still subject to regulatory approval.

A downbeat picture of the U.K. retail sector emerged in the latest survey from the Confederation of British Industry. Almost 50% of retailers complained of poor sales for the time of year in the three months through July, the highest figure since the financial crisis a decade ago. A gauge of sales volumes was negative for a third month, with 42% saying they sold less a year earlier. While the reading was depressed by strong sales in July 2018, when a heatwave and the soccer World Cup prompted people to splurge, retailers hold out little hope of an improvement in August. The figures published Thursday add to signs that consumers, whose spending has driven the economy during the Brexit crisis, are turning more cautious. They come a day after Prime Minister Boris Johnson took office, vowing to take Britain out of the European Union on Oct. 31 -- with or without a deal to cushion the blow. The CBI said it was “hugely concerning” that its sales index, the net balance between firms saying sales rose and those reporting a decline, was now negative for the longest stretch since 2011.

U.S. private equity firm Advent International has agreed to pay 4 billion pounds to buy Cobham, the British defence and aerospace group known for its pioneering air-to-air refuelling technology. In the latest of a series of buyouts in Europe, with private equity firms seeking new targets for their bumper cash balances, Advent is offering 165 pence in cash for each Cobham share representing a 50% premium to the three-month average price. Shares in Cobham, whose technology is found on F-35 fighters and Airbus jets, jumped 35% to just above the offer price, the highest they have been since March 2016. The deal will be part funded by around 2.5 billion pounds in debt. Cobham, which employs 10,000 people and also makes electronic warfare systems and communications for military vehicles, was shaken by a string of profit warnings in 2016 and 2017, forcing it to raise cash from shareholders. Chief Executive David Lockwood embarked on a turnaround strategy two and half years ago, focused on improving the company’s financial and operating performance.

Nissan Motor Co unveiled its biggest restructuring plan in a decade, axing nearly a tenth of its workforce and flagging possible plant closures to rein in costs that ballooned when Carlos Ghosn was CEO. The cuts followed a collapse in Nissan’s quarterly profit, highlighting how a crisis - brought about by sluggish sales and rising costs - is deepening at Japan’s No. 2 automaker in the wake of a financial misconduct scandal over Ghosn. Ghosn has denied the charges. The dismal quarter will pile pressure on Chief Executive Hiroto Saikawa, who has been tasked with shoring up the automaker’s performance at a time when the industry is struggling worldwide. China’s slowing economy, further depressed by a trade war with the United States, has hit demand, even as American consumer confidence has faltered. Tougher emission regulation has taken as toll on diesel-car sales in Europe, and an increase in electric vehicle sales and ride-sharing has worsened a drop in sales at the world’s biggest car makers. Ford Motor Co, the second-largest U.S. automaker, is also cutting 12,000 jobs and closing plants, while Daimler, Aston Martin and supplier Continental warned on profits this week.