Business Industry Capital
Bulgaria
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BNB Exchange Rates
(27.09.2019) |
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EUR |
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1.95583 |
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GBP |
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2.20985 |
USD |
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1.78811 |
CHF |
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1.80029 |
EUR/USD |
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1.0938* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.09 |
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0 % |
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Financial news |
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The digital economy in Bulgaria is growing at a fast pace amid European trends - more than 2.5 times faster than in the five major markets in the European Union. The average annual growth rate of value added in the ICT sector in the country over the last 10 years is over 25%. Over the last few years, Bulgaria has seen a 8.2% growth in the digital economy, while in the five largest EU markets it is 3.1%, according to an annual survey by the global consultancy McKinsey. According to Euler Hermes' annual EDI (Enabling Digitalization Index), Bulgaria ranks in 47th place among 115 countries. The EDI index measures the working and development conditions of digital companies as well as the opportunities for business digitalisation, taking into account various criteria such as regulation, knowledge, connectivity, infrastructure and scale.
The executive board of the International Monetary Fund (IMF) has selected Kristalina Georgieva, a Bulgarian national formerly CEO of the World Bank, to serve as IMF managing director and chair of the executive board. Georgieva, who succeeds Christine Lagarde, will head the IMF for a five-year period starting on October 1. Georgieva is the first person from an emerging market economy to lead the IMF since its inception in 1944. "As I noted in my statement to the Executive Board, our immediate priority is to help countries minimize the risk of crises and be ready to cope with downturns," Georgieva said in a separate statement published on IMF's website. "Yet, we should not lose sight of our long-term objective – to support sound monetary, fiscal and structural policies to build stronger economies and improve people’s lives. This means also dealing with issues like inequalities, climate risks and rapid technological change," Georgieva added. Georgieva's selection by the 24-member executive board representing the IMF’s 189 member countries brings to a conclusion the selection process initiated on July 26, 2019.
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Companies |
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German automotive components manufacturer VOSS Automotive has officially opened its first production plant in Bulgaria, following an investment of EUR 15 million, the country's economy ministry said. VOSS Automotive's project in Bulgaria has created 120 jobs for highly qualified personnel. Following VOSS Automotive's investment, the total value of plants opened in Bulgaria over the past year exceeds BGN 1 billion. Earlier this month, VOSS Automotive said that is has made a EUR 15 million investment in the first stage of the project located in Bahovitsa Industrial Park, near the city of Lovech in central Bulgaria. VOSS Automotive specialises in the production of fuel and coolant lines and fittings, quick connector systems, thermal management lines and fittings, and other components. Source: Capital
MEPs have excluded the Bulgarian Development Bank (BDB) from the scope of public enterprises with the new Public Enterprises Act adopted at second reading, BTA reported. The law is part of the commitments Bulgaria has made in the course of its accession to the euro area, and the Council of Ministers announced by the petitioner, the purpose is to modernize the management of state-owned companies in line with international best practices. However, with the approved texts, the requirements of the new regulation will not apply to companies operating as credit institutions and to their subsidiaries, such as the development bank. With the final texts adopted, the Agency for Privatization and Post-Privatization Control is renamed the Agency for Public Enterprises and Control, and the Bulgarian Investment Agency merges with it.
German company Bosch opens a training center for thermal engineering in its central building in Sofia on September 26. The company, which has been on the Bulgarian market for a quarter of a century, has started this innovative project to meet the challenges of the market. The new Bosch Learning Center features a wide range of products, including solutions for heating, cooling and water heating, as well as home appliances. The center is equipped with the most up-to-date range of Bosch condensed gas boilers and heat pumps. With the opening of the training center, Bosch aims to enhance skills and create skilled and professional service professionals. It also relies on cooperation with universities and dual training of young talents in condensing and heat pump technology. Source: mediapool.bg
Bulgaria has presented the possible tax breaks it can offer to the Korean automotive giant Hyundai if it decides to invest in a new automobile plant in this country. The board of directors will have to make a decision about it, said Bulgarian Prime Minister, who visited the Hyundai Motor Group's Powertrain R&D Center in Hwaseong on the first day of his visit to South Korea. According to him, the South Koreans are most interested in the perspectives for building an electric vehicles battery plant. Defence Minister Krassimir Karakachanov has discussed in Seoul the possibility for opening a plant in Bulgaria where the T-50 combat aircraft can be assembled, which was proposed by the Korean side. Source: 24 chasa
Bulgarian car battery maker Monbat said that its consolidated profit before taxes soared by 318.4% on the year to BGN 12.6 million in the first eight months of 2019. The company’s consolidated net sales revenue rose by 10.0% year-on-year to BGN 210.5 million in January-August. Monbat’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), excluding discontinued operations, increased by an annual 54.5% to BGN 24.1 million in the period under review. In August alone, Monbat posted a profit before taxes of BGN 1.6 million, up 57.3% year-on-year, backed by an 11.90% increase in revenue, to BGN 27.0 million. Source: investor.bg
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Bulgarian Industrial Association
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World
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Europe |
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The European Union is weighing an aggressive new approach to its trade dispute with the U.S., signaling a willingness to engage in the combative tactics embraced by President Donald Trump and risking a further deterioration in transatlantic relations. The EU is considering imposing tariffs on more than $4 billion of U.S. exports, citing as justification a 22-year-old World Trade Organization dispute over prohibited subsidies, according to people familiar with the strategy. This is despite the fact that the two sides reached a “mutually acceptable solution” to the claim in 2006. The tariffs would ostensibly be to retaliate against duties the U.S. is poised to impose on as much as $7 billion of EU exports because of illegal aid the bloc provided Airbus SE, said the people, who asked not to be identified because the plans are private. A decision on using the strategy hasn’t been agreed and at least one EU member state has pushed back against the idea, according to one of the people.
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America |
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Tobacco giants Altria and Philip Morris, which were once one company, have ended their discussions to reunite in a colossal merger that could have been worth more than $200 billion. Shares of Philip Morris, which sells cigarettes internationally and owns the iQOS e-cigarette brand, rose 6% following the announcement while Altria, which sells Marlboro and other tobacco brands in the United States, was down more than 1%. In related news, Juul said that Altria's senior vice president K.C. Crosthwaite would be leaving Altria to take over as CEO of Juul, the controversial vaping company that Altria bought a nearly 35% stake in last year for nearly $13 billion. Crosthwaite is replacing Juul co-founder Kevin Burns as CEO. Altria and Philip Morris had announced in late August that they were considering a merger. Altria and Philip Morris broke up in 2007. At that time, Altria also spun off food giant Kraft, which was since merged with Heinz.
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Asia |
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Japan and its private sector firms will invest $10 billion on liquefied natural gas (LNG) projects worldwide, the country’s industry minister said on Thursday, in a strategy to boost the global LNG market and reinforce the security of energy supply. The move, doubling a commitment by Japan two years ago to bolster energy supply chains, comes as the world’s biggest LNG buyer aims to reduce its reliance on energy from the Middle East as growing tensions in the region threaten the stability of global oil supply. “On top of Japan’s commitment two years ago of investing or financing more than $10 billion in energy supply chains, we are making a fresh commitment of additional and collective $10 billion funding from both public and private sectors,” said Isshu Sugawara, Minister of Economy, Trade and Industry (METI), speaking in Tokyo at the annual LNG Producer-Consumer Conference. As a part of Japan’s effort to broaden use of the super-chilled fuel, the country also plans to train 500 experts in LNG technology, he said. In its 2017 pledge to bolster energy supply chains Tokyo already promised to train 500 experts in areas such as LNG reception technology and environmental regulations.
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Indexes of Stock Exchanges 26.09.2019 |
Dow Jones Industrial |
26 891.12 |
(-79.59) |
Nasdaq Composite |
8 030.66 |
(-46.72) |
Commodity exchanges 26.09.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 56.09 |
Heating oil ($US/gal.) | 1.9400 |
Natural gas ($US/mmbtu) | 2.4500 |
Unleaded gas ($US/gal.) | 1.6100 |
Gold ($US/Troy Oz.) | 1 513.70 |
Silver ($US/Troy Oz.) | 17.91 |
Platinum ($US/Troy Oz.) | 932.90 |
Hogs (cents/lb.) | 70.38 |
Live cattle (cents/lb.) | 108.75 |
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