Business Industry Capital
Bulgaria
|
| | |
|
BNB Exchange Rates
(04.10.2019) |
|
EUR |
|
1.95583 |
|
GBP |
|
2.20276 |
USD |
|
1.78598 |
CHF |
|
1.78501 |
EUR/USD |
|
1.0951* |
ECB exchange rate |
Basic Interest Rate |
|
as of 01.10 |
|
0 % |
|
|
|
|
Financial news |
|
GDP of Bulgaria continued to grow in the second quarter of 2019, supported by net exports, according to the Monthly Survey of the Bulgarian Economy, prepared by the Ministry of Finance on Statistics until September 17. GDP growth reached 3.7 per cent on an annual basis (with seasonally unadjusted data) and slowed down from 4.8 per cent in the first quarter, with a near neutral contribution to domestic demand. Fixed capital investments increased by 1.3 per cent over the period from 0.6 per cent in the first quarter. The acceleration reflected higher public investment costs. At the same time, private and public consumption growth has been slower, Ministry of Finance said. Gross value added growth accelerated to 3.9 per cent year-on-year with the largest contribution from government and real estate operations. Value added in construction increased by 6.6 per cent after a reported decline in the first quarter. Source: 24 chasa
Romania and Bulgaria posted the highest annual increases in industrial producer prices among EU member states in August - of 4.7% and 4.5%, respectively, the bloc's statistical office said. On a monthly comparison basis, Bulgaria's industrial producer price index (PPI) rose by 0.7% in August - the highest month-on-month increase among EU28, while Romania's PPI lost 0.4%, Eurostat said in a statement. Elsewhere in Southeast Europe (SEE), Slovenia's industrial PPI rose 2.0% year-on-year in the review period and added 0.3% month-on-month, while Croatia's PPI decreased by 0.3% on the year and month-on-month. Greece's industrial PPI fell 1.9% year-on-year and by 1.3% month-on-month in August. On average, industrial PPI in the EU decreased by an annual 0.3% in August and was 0.4% lower on a monthly comparison basis.
|
Companies |
|
Germany's Industrie und Finanz Holding is planning to invest EUR 2.5 million in the construction of a new production facility in Bulgaria for its local unit Winterhalder, local media reported. The new facility will be located at the current production base of gaskets and insulation products maker Winterhalder Bulgaria - at the Radinovo industrial zone near the city of Plovdiv. Winterhalder Bulgaria booked revenue of BGN 5 million in 2018 and closed the year with a pre-tax profit of BGN 1 million, according to the report. The company forecasts that its revenue will grow to BGN 8 million in 2023. Winterhalder Bulgaria currently employs 35 people in the country. Source: Capital
The Commission for Protection of Competition (CPC) opened proceedings for the acquisition of energy companies of the Czech CEZ Group in Bulgaria by Eurohold Bulgaria. Eurohold will acquire CEZ Group companies in Bulgaria through the newly formed and European-based company Eastern European Electric Company B.V., which is 100% owned by Eurohold Bulgaria and was specifically created for the purpose of the deal with CEZ Group. Eastern European Electric Company B.V. will operate as a holding of Eurohold and concentrate the activities of all CEZ Group companies in Bulgaria after obtaining the necessary approval from the regulatory authorities. Eurohold Bulgaria submitted the necessary documents for the acquisition of CEZ's assets in the CPC on 13 August. Almost two months earlier, the two parties signed a EUR 335 million deal. The structure of CEZ in Bulgaria includes the electricity distribution company CEZ Distribution Bulgaria, the company for public electricity supply and licensed trader CEZ Electro Bulgaria, the licensed electricity trader CEZ Trade Bulgaria, the IT services company CEZ ICT, solar park Free Energy Project Oreshetz, biomass-fired power plant Bara Group and CEZ Bulgaria, which coordinates and manages the activities of all of them. Source: Banker
Bulgaria’s National Railway Infrastructure Company (NRIC) signed a contract worth close to BGN 185 million with the Plobur Consortium for the design and construction of signalling and telecommunications system on the railway line between the cities of Plovdiv and Bourgas. The consortium is made up of Bulgaria’s GP Group, Marmet, and Italian and Polish subsidiaries of Canada’s transportation industry giant Bombardier. The project is being co-funded with European Union funds, by the Cohesion Fund through the Operational Programme 2014-2020. It involves renovating signalling systems at 18 railway stations, the construction of a new ECTS (European Train Control System) and CCTV system, a new train protection system in the section between Manole and Bourgas – a length of 271km, monitoring of rolling stock parameters, telecommunication equipment in the Plovdiv-Bourgas section, which is 293 km long, passenger information devices and GSM-R train communication system.
Lithuanian retailer Maxima Grupe posted a net loss of EUR 1.95 million from operations in Bulgaria in the first half of 2019, relatively unchanged from the net loss of EUR 1.98 million booked in the same period of 2018. Maxima Groupe's revenue in Bulgaria grew to EUR 71.5 million in the January-June period of 2019 from EUR 62.1 million in the comparable period of 2018. Last month, Bulgaria's Commission for Protection of Competition said that it has opened proceedings concerning retailer Maxima Bulgaria's planned lease of the 11 stores of supermarket chain Triumf in the city of Plovdiv. The 11 stores are currently operated by local companies Markotsi, Vanichi 2008 and Top Tennis. Earlier this year, Maxima Grupe announced that it intends to invest EUR 600 million in modernising and expanding its network of stores through 2025. In Bulgaria, Maxima Grupe has over 70 T Market stores in 36 cities across the country, according to data from its Bulgarian unit - Maxima Bulgaria. The Bulgarian unit employs over 1,500 people. Source: Capital
Bulgaria's Prista Oil Holding has signed two contracts worth a total of BGN 3.25 million with the country's State Reserve and War-Time Stocks agency envisaging supply of motor oils and lubricants, the agency said. Both contracts were inked on September 24, the government agency said in two separate notices. Prista Oil Holding submitted the sole bid in the procedures for awarding each of the two contracts. Prista Oil Holding booked sales revenue of BGN 77.5 million in 2018.
|
Bulgarian Industrial Association
|
World
|
| |
|
Europe |
|
Italian prosecutors have opened an investigation into alleged tax evasion targeting U.S. streaming service Netflix. Prosecutors in Milan say Netflix should pay taxes in Italy despite the fact that is has no physical presence locally because of the digital infrastructure it uses to stream content to 1.4 million users in the country, the source said. Prosecutors argue that cables and computer servers used by Netflix amount to a physical presence in Italy. The source said the probe had been triggered by checks conducted by Italy’s tax police. Given the size of the alleged tax evasion prosecutors were obligated to open an investigation, the source said. No Netflix executive is under investigation because the probe is still at a preliminary stage, the source said. Milan prosecutors in the past have probed other U.S. tech giants such as Apple, Amazon and Facebook for dodging taxes, allowing Italy to net several billion euros in fines and tax payments. It was not immediately possible to obtain a comment from Netflix.
|
America |
|
The US has been given the go-ahead to impose tariffs on USD 7.5 bln of goods it imports from the EU. It is the latest chapter in a 15-year battle between the US and the EU over illegal subsidies for planemakers Airbus and rival Boeing. The World Trade Organization (WTO) ruling will mean tariffs on EU goods ranging from aircraft to cheese, olives and jumpers from 18 October. Brussels has threatened to retaliate similarly against US goods. US trade officials said the tariffs would be set at a 10% rate on aircraft and 25% on agricultural and other items. They have published a list of all the items that will be subject to the additional tariffs, most of which will apply to imports from France, Germany, Spain and the UK. The US said it had the authority to increase the tariffs "at any time" or change the products affected. Meanwhile, the two sides are waiting for the WTO to decide on what tariffs the EU can impose against the US in retaliation for US state aid given to Boeing. That ruling is expected next year. The European Commission, which has proposed tariffs on USD 20 bln of US goods, said it hopes to reach a settlement.
|
Asia |
|
Hong Kong may have lost as much as USD 4 billion in deposits to rival financial hub Singapore between June and August, Goldman Sachs estimated this week. The period during which these flows took place coincides with escalating anti-government protests and political unrest in the Chinese city. Goldman’s report did not make any mention of the protests. Modest net outflows from local currency deposits in Hong Kong and the net inflows of foreign currency deposits in Singapore in August could be the latest sign showing USD 3-4 billion left for the city state, the bank’s analysts said in a report on Monday. “That said, the HK banking system still has ample liquidity in Hong Kong dollar as well as in foreign currencies,” though “this set of data is unlikely to allay investor concerns around outflows from HK,” they said. Anti-government protests have gripped Hong Kong for four months with widespread violence this week as China, which resumed ruling the territory in 1997, celebrated the 70th anniversary of the People’s Republic. Hong Kong’s stockpile of deposits stood at HK$13.6 trillion (USD 1.73 trillion) in August, according to Refinitiv Datastream.
|
|
Indexes of Stock Exchanges 03.10.2019 |
Dow Jones Industrial |
26 201.04 |
(122.42) |
Nasdaq Composite |
7 872.26 |
(87.02) |
Commodity exchanges 03.10.2019 |
|
Commodity |
Price |
|
Light crude ($US/bbl.) | 52.73 |
Heating oil ($US/gal.) | 1.8900 |
Natural gas ($US/mmbtu) | 2.3500 |
Unleaded gas ($US/gal.) | 1.5600 |
Gold ($US/Troy Oz.) | 1 513.90 |
Silver ($US/Troy Oz.) | 17.64 |
Platinum ($US/Troy Oz.) | 891.10 |
Hogs (cents/lb.) | 68.10 |
Live cattle (cents/lb.) | 110.82 |
|
|
|
Archive Business Industry Capital |