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Business Industry Capital
ISSN 1311-364X
Thursday, 29 August 2019, Issue 5027
  Bulgaria   Bulgarian Industrial Association   World   Discover Bulgaria BIC Capital Market Ltd. 

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       Bulgaria
 
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BNB Exchange Rates
(29.08.2019)
  EUR   1.95583  
GBP   2.15345
USD   1.76471
CHF   1.79896
EUR/USD   1.1083*
ECB exchange rate
Basic Interest Rate
  as of 01.08   0 %  


Bulgarian Stock Exchange - 28.08.2019
  Total turnover (BGN): 833 298.47  
Traded companies: 36
Premium 121 962.98
Standard 692 149.99
REIT 16 370.68
Structured 2 814.83
Biggest change
Allterco JSC - Sofia 6.21 %
Agria Group Holding JSC - Varna -4.76 %
BaSE - Shares: 473 264.00
BaSE - REIT: 155.70

Production and preserving of poultrymeat
BEIS rating
Top 10 companies by
Net sales
for 2017
(thous. BGN)
  
  1   Pilko SPLTD - Razgrad   155 805  
  2   Gradus 1 SPLTD - Stara Zagora   73 177  
  3   Multimes Grup LTD - Lyaskovetz   48 635  
  4   Brezovo JSC - Brezovo - Pd   37 144  
  5   Heron Trade LTD - Plovdiv   34 183  
  6   SVS-98 SPLTD - Novi Iskar   22 472  
  7   Seffora SPLTD - Lukovit   20 417  
  8   Maxi Chicken SPLTD - Kostinbrod   19 399  
  9   Alliance Agricole-ALAG LTD - Okop   17 539  
  10   Agroplacement 92 V JSC - Varna   17 219  
Make your own Bulgarian companies rating in BEIS

Certificated
Bulgarian companies

General meetings today
  Bravo Property Fund REIT REIT - Sofia
Bronze TM JSC - Dolna Oryahovitza
Infrarail JSC - Sofia
IQ.Software JSC - Sofia
Solarpro holding JSC - Sofia
Tosita JSC - Rousse
Vodokanalproject - Metalproect Engineering JSC - Sofia
 
Forthcoming General Meetings



Financial news

Bulgaria's gross external debt totalled EUR 34,034 million (57.5% of GDP) at the end of June 2019, increasing by EUR 144.5 million (0.4%) from a year earlier, the Bulgarian National Bank said. Long-term liabilities totalled EUR 25,712.2 million (75.5% of the gross debt, 43.5% of GDP) at end-June. Year on year, long-term liabilities decreased by EUR 224.2 million (0.9%). Short-term liabilities stood at EUR 8,321.8 million (24.5% of the gross debt, 14.1% of GDP). They grew by EUR 368.8 million (4.6%) from a year earlier. The General Government's gross external debt totalled EUR 5,451 million (9.2% of GDP) in end-June 2019, down by EUR 193.7 million (3.4%) from a year earlier. Gross external debt service in the first half of 2019 totalled EUR 3,096.9 million (5.2% of GDP), compared with EUR 3,116.2 million (5.6% of GDP) in January-June 2018.

Source: BTA

Bulgaria’s Cabinet approved spending BGN 70.7 million on the country’s autumn 2019 municipal elections, a record budget for an election in Bulgaria. Bulgaria’s mayoral and municipal elections will be held on October 27, with second rounds a week later in places where first-round victories do not result. The funds would be used for organisational and technical preparations for the elections. These would include printing of ballot papers, purchase and production of materials, logistical support for regional and municipal administrations and the Cabinet administration, pay for members of the municipal and section election commission, computerised processing of voting date and the issuing of election results. The funds also would be used for awareness campaign on citizens’ rights and how to vote, and among other items, organising polling stations at schools and other places. The funding would come from the sum provided in the national Budget and from restructuring national Budget spending for 2019.

Source: Sofia Globe

 
Companies

Bulgaria is issuing a state guarantee for a loan of up to BGN 215 million from the European Investment Bank, to be used to finance the construction of a gas interconnection with Greece, the government said in a statement after it approved the state guarantee agreement with the the European Investment Bank (EIB). The loan will be taken out by state-owned Bulgarian Energy Holding (BEH) and must be repaid within 25 years. The loan will have a three-year utilisation period. The total investment in the Gas Interconnector Greece-Bulgaria project is estimated at around EUR 240 million. In November 2018, the European Commission said that a state guarantee for the EIB loan will not be in breach of EU state aid rules. The gas link will connect the Greek gas transmission system in the area of Komotini to the Bulgarian gas transmission system in the area of Stara Zagora. The planned length of the gas pipeline is 182 km and the projected capacity will be up to 3 billion cu m per year in the direction from Greece to Bulgaria. Depending on interest from the market and the capacities of the neighbouring gas transmission systems, the capacity of the pipeline can be increased to up to 5 billion cu m per year, thus allowing for physical reverse flow from Bulgaria to Greece with the additional installation of a compressor station. The project is being implemented by the joint venture company ICGB, in which BEH and Greece-registered IGI Poseidon hold equal stakes. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.

Source: Banker

Bulgaria’s Commission for Personal Data Protection (CPDP) has fined DSK Bank SPJSC, the country’s second-largest lender by assets, BGN 1 mln for “illegal disclosure” of the personal data of its customers. In total, the data of 33,492 customers from 23,270 loan files, which also included personal data of an “unlimited” number of related parties – such as relatives, vendors and loan guarantors – were “accessed by third parties”, the watchdog said, without giving a total number of the people affected. The fine was imposed after a month-long check, which found that DSK Bank did not implement “appropriate technical and organisational measures and did not ensure the ability to guarantee the constant confidentiality” of its personal data administration systems. The data that was illegally accessed was extensive – names, personal identification numbers (known by their Bulgarian abbreviation EGN), current address, but also the scanned copies of ID cards kept on file by the bank, which include certain biometric data like height and eye colour, as well as full tax and income information, bank account numbers and information about property deeds.

Source: Sofia Globe

BGN 5,100,000 is the property sanction imposed by the Chairman of the Commission for Personal Data Protection (CPDP) Ventsislav Karadzhov to the National Revenue Agency (NRA) for the leakage of personal data of over 5 million Bulgarian citizens. Karadzhov acknowledged that the sanction was not large against the statutory ceiling of BGN 20 million for such a sanction, but the "responsible behavior" of the NRA was also taken into account in this case. Answering to a remark that this means the sanction is "BGN 1 per person", Karadzhov said that the sanction was not intended to punish the administrator itself, in the case the NRA, but to ensure that the violation was not repeated. The NRA is yet to announce whether it will appeal the sanction. After serving the sentence, the NRA has the right to appeal to the court within one week. The proceedings before the court are at two instances.

Source: Capital

The state-owned Sofia Tech Park JSC will combat the negative interest rates that melt its free money invested in a bank by investing its cash in government securities. The first step is the selection of an investment company, with the procedure already underway and could be finalized in September. With this, Sofia Tech Park demonstrates the difficulties faced by companies for which the management of cash in the context of negative returns has become a challenge. This is a consequence of the introduction of negative interest rates by the ECB, which has already put securities with negative yields at around USD 17 trillion in the world. With a slight delay from 2016, BNB also introduced negative interest rates on commercial banks' excess reserves, which in turn shifted the costs to their customers. Negative interest rates have been observed since the end of 2016 on large corporate deposits.

Source: Capital

The Bulgarian startup company ClaimCompass, which through online platform mediates passengers of airlines to receive compensation for delayed and canceled flights, has received funding of USD 1.3 million. The fresh capital is mainly provided by venture capital funds, as well as several business angels, and will be used to develop the technology for claims processing. The new capital is invested in the American company ClaimCompass Inc., which is the direct owner of the Bulgarian company. Among the funds that funded ClaimCompass for a total of USD 1.3 million include Rambleside, Telegraph Hill Ventures, Hustle Fund, Good News Ventures, Ramen Ventures and Global Edge Investments. The investment is in the form of convertible securities. In addition to developing the processing technology, the team will also invest new funds in the expansion of the customer base and improvements in the process of filing and tracking claims. ClaimCompass's total investment so far is USD 1.8 million.

Source: Capital

The Bulgarian Stock Exchange (BSE) operator said that its consolidated net profit rose to BGN 2.4 million in the first half of 2019 from BGN 1.9 million a year earlier. The revenue of the operator of the stock exchange increased to BGN 5.3 million in January-June from BGN 4.1 million in the comparable period of last year. On a non-consolidated basis, BSE more than tripled its net profit in the first six months of the year - to 1.5 million from just BGN 430,000 in the like period of 2018. Total operating expenses increased to BGN 2.6 million from BGN 2.0 million. Total regulated market turnover fell 45.17% to BGN 150.6 million. Financial service activities formed 49% of the total turnover in the first half of 2019. The consolidated assets of the BSE operator dropped by 18.25% to BGN 87.1 million, due to a decrease in receivables from clients, which amounted to BGN 12.1 million at the end of June, down from BGN 29.9 million at the end of 2018. The acquisition of the Independent Bulgarian Energy Exchange (IBEX) operator also contributed to the decrease. The BSE completed the acquisition of IBEX from state-owned Bulgarian Energy Holding (BEH) for BGN 5.2 million in February 2018. The transfer of ownership of IBEX was requested by the European Commission in December 2015 to prevent abuse of BEH's dominant position. Payables to suppliers and other creditors rose to BGN 70.5 million from BGN 92.2 million at the end of June 2018.

Source: SeeNews



       Bulgarian Industrial Association


 

       World

Europe

Google has faced a combined $9.5 billion in antitrust fines from the European Union over the past two years. Now, yet another EU antitrust case is brewing — this time over its jobs search tool “Google for Jobs.” In a speech, EU Competition Commissioner Margrethe Vestager drew parallels between Google for Jobs and the company’s comparison shopping service, which was the subject of a $2.7 billion EU fine against Google in 2017 for anti-competitive behavior. “We’re looking right now at whether the same thing may have happened with other parts of Google’s business – like the job search business known as Google for Jobs,” Vestager said. A European Commission spokesperson confirmed to CNBC a preliminary investigation into Google for Jobs is ongoing but declined to comment on timing or outcome. A preliminary investigation involves gathering information and could, or could not, lead to a formal antitrust probe. Formal EU antitrust investigations can take years to complete and can result in fines of up to 10% of a company’s annual revenue.

Source: CNBC

America

Nestlé Waters' proposal to take 1.1 million gallons per day from Ginnie Springs has drawn a backlash from conservationists who say the food giant wants to take publicly owned water and sell it back to the public. Conservationists fear that if Nestlé's plans go through, there will be considerably less water in Ginnie Springs, which sits in the Santa Fe River and serves as a home for several species of turtles that nest on the river's banks. Environmental groups say the river is too fragile to serve Nestlé's interests since it is already labeled as "in recovery" by the Suwannee River water management district after years of over pumping. Residents have also criticized the business practice that allows for taxpayer money to restore the spring, while allowing Nestlé to take water out. The Florida Water Resources Act declared that all the water in springs, rivers and lakes is the property of the state, not the landowners, but it never set a price on water. That means, Nestlé will be able to take the state's water, but not pay the state for it. The current permit holder, Seven Springs, has never drawn more than 260,000 gallons per day, but Nestlé has invested heavily in a new bottling plant so it can draw as much water as possible. Nestlé insists that that drawing 1.1 million gallons of water per day is only .05% of the total daily volume there.

Source: Guardian

Asia

Volvo’s electric car subsidiary Polestar opened its first production facility in China. At the new facility in Chengdu, China, the 441 kW Polestar 1 PHEV coupe is manufactured for China and export markets. Polestar is planning to produce 500 units per year over a production cycle of three years to start with. The first customer deliveries are to be made before the end of this year. The Polestar 1 is based on Volvo technology and also incorporates some design elements from the S90 saloon, for example. The two-litre petrol engine also comes from Volvo, but Polestar’s hybrid components go beyond the existing modular range. Following the construction of Polestar 1 in Chengdu, production of the Polestar 2, the brand’s first all-electric model, will start in Luqiao at the beginning of 2020. An SUV-like Polestar 3 is expected to follow, but no potential production plant has yet been named. At the latest by the end of 2022.

Source: Associated Press

 
Indexes of Stock Exchanges
28.08.2019
Dow Jones Industrial
26 036.10 (258.20)
Nasdaq Composite
7 856.88 (29.94)
Commodity exchanges
28.08.2019
  Commodity Price  
Light crude ($US/bbl.)55.58
Heating oil ($US/gal.)1.8500
Natural gas ($US/mmbtu)2.2200
Unleaded gas ($US/gal.)1.5700
Gold ($US/Troy Oz.)1 552.10
Silver ($US/Troy Oz.)18.37
Platinum ($US/Troy Oz.)910.80
Hogs (cents/lb.)63.50
Live cattle (cents/lb.)99.20

       Discover Bulgaria

29 August – commemoration of St. John the Baptist

On August 29, the Orthodox church commemorates the day on which St. John the Baptist died – the day, on which his head was cut off. This day is also known as Seknovenie (from seka – “cut” in Bulgarian), because on this day people believe that the day and night are cut by half – they become equal. On this day, waters and the weather start getting colder, therefore noone should bathe into rivers. Seknovenie is also considered a “bad day”, on which people should not work or start anything new. It is forbidden to eat red fruit (water melons, apples, tomatoes) and to drink red wine. It is written in the passional of the Saint that he was beheaded by the will of queen Irodiata, who was reproached by the Saint for marrying her husband’s brother. The disciples of St. John buried his body, leaving his head as a relic. Constantine the Great moved the relic to the town of Emesa. Later on, it was moved to Halcidon, Constantinople and Komana.


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