The European Commission adopted its latest report on the Cooperation and Verification Mechanism about the actions undertaken by Bulgaria to fulfill its obligations in the judicial reform, the fights against corruption and organized crime. The EC considers that the progress made by Bulgaria under the Cooperation and Verification Mechanism is sufficient to meet Bulgaria’s commitments made at the time of its accession to the EU in 2007. Bulgaria will need to work consistently on translating commitments into concrete legislation and on continued implementation. The monitoring of the continued implementation of the reforms put in place by Bulgaria will need to be ensured by the high-level post-monitoring council recently agreed by the government, and that will feed into the future dialogue with the Commission in the framework of the comprehensive rule of law mechanism. However, before talking the final decision the Commission will also take duly into account the observations of the Council and the European Parliament. The EC decided to keep the CVM on Romania.

Pension expenditures in Bulgaria will exceed BGN 10 billion for the first time. The draft budget of the state social security provides for BGN 10.576 billion. For comparison in the 2019 budget, pension expenditures were BGN 9.988 billion, but expected implementation is BGN 9.847 billion. The forecast funds are BGN 729.1 million more, which is an increase of 7.4% compared to the expected execution of expenditures for this year. The most significant contribution to the increased budget is the planned modernization of pensions since July 1, 2020, with a record 6.7% hike. This will cost BGN 359.5 million. BGN 272.3 million will be necessary for the full year payment of the increase with 5.7% from July 1, 2019. The pension ceiling, which remains at BGN 1200 for next year, will cost BGN 74.8 million. For the right of people to choose to retire according to the old methodology are provided BGN 14 million. The natural increase in costs due to the higher amounts of new pensions compared to the terminated ones is estimated at BGN 22 million. The savings from another tightening of the conditions for retirement is estimated at BGN 13.5 million.

Headlights manufacturer odelo Bulgaria, part of Turkey's Bayraktarlar Group, has inaugurated a EUR 40 million plant in Trakia Economic Zone. Nearly 400 people are expected to be employed at the plant by 2023. The new plant will manufacture headlights for Mercedes-Benz vehicles, according to previous statements by the company. Earlier this year, odelo Bulgaria opened a research and development centre in Sofia, where 40 people will be employed. Odelo Bulgaria is a wholly-owned subsidiary of Turkey's Farba Otomotiv Aydinlatma Ve Plastik Fabrikalari, part of Bayraktarlar Group.

Bulgartransgaz has taken a loan of EUR 200 million from 4 banks for the down payment of the consortia that is building Balkan Stream. 9 banks took part in the procedure, but contracts were signed only with Citibank, ING Bank, UniCredit Bulbank and the International Bank for Economic Cooperation. The loan is secured by dollar deposits with these banks. Dollars currently carry more interest than the euro loan. In addition, payment to contractors is in euro. In this operation, the company will earn BGN 2 million in 6 months. There is an option to extend the period by another 6 months, which would bring another BGN 2 million. These EUR 200 million will provide the majority of the advance payment. To the Saudi Arcad consortium, which is already building the linear section of the pipeline, it is BGN 250 million and VAT 50 million. BGN 140 million and VAT 28 million are for the Ferroshtal Balkangas Consortium, which is building the two compressor stations. The payment period for the linear part of the pipeline is 120 months after commissioning, and for compressor stations - 2 years.

Discount chain Lidl Bulgaria, part of Germany's Lidl Stiftung & Co, has launched the construction of its 100th store in the country, which is expected to be completed in early 2020. Lidl Bulgaria is planning to open at least five new stores in 2020, most of which located in the larger cities on the country's Black Sea coast. Lidl has opened seven new stores in Bulgaria so far this year. The company also completed the renovation programme for its existing network, which included 60 stores. Lidl entered the Bulgarian market in 2010 and currently operates stores in 47 Bulgarian cities, employing 2,700 people. Lidl, part of Germany's Schwarz-Gruppe, is a global discount supermarket chain, based in Neckarsulm, Germany.

Panda Cooperation, which acquired all of the trademark rights of the Office 1 Superstore portfolio in February last year, plans to expand its business abroad. It is the sole proprietor and representative of the brands Office 1, Office 1 Superstore, Office 1 Superstore International and Office 1 e-shop worldwide after being purchased from their former US owner. The terms of the contracts are individual and depend mainly on the size, maturity and potential of the relevant market. The initial investment in equipment and inventory when opening an Office 1 Superstore site is EUR 1,000 per square meter. One year ago, Panda Cooperation invested EUR 7 million in a new warehouse and logistics facility in the village of Ravno Pole. Panda Cooperation is a group comprising Panda Coop and its subsidiaries Trans Co 04, United Stationary Group, Colop Bulgaria. According to the consolidated report, net sales revenue for 2018 is BGN 54.253 million (BGN 50.805 million for 2017) and after-tax profit - BGN 1.180 million (BGN 2.075 million in 2017).

Cosmetics producer Bulgarian Rose pocketed sales revenue of BGN 325,000 in September, exceeding its forecast for BGN 302,000 in monthly revenue. The company's accumulated sales in the first nine months of the year amounted to BGN 4.79 million. Bulgarian Rose generated revenue of BGN 4.45 million in the January-September period of 2018. Sales in October are projected at BGN 440,000, down from its October 2018 sales of BGN 600,000. Earlier this year, Bulgarian Rose terminated 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. Karlovo-based Bulgarian Rose, established in 1948, manufactures cosmetic products for face, body, and hair using rose oil and locally-grown herbs. Bulgarian Rose, part of blue-chip industrial group Stara Planina Hold, has stores in nine cities across Bulgaria.

The European Commission said next year’s draft budgets for France and Italy could be in breach of European Union fiscal rules and it asked for clarification by Wednesday in letters sent to the countries’ finance ministers. The EU executive has also issued budget warnings to Finland over its spending, and to Spain, Portugal and Belgium who have submitted incomplete budget plans because of recent elections. The EU’s move on Italy is seen as necessary, given Rome’s plans to spend more to boost growth, but it is unlikely to lead to a repeat of last year’s standoff, when Brussels forced Italy’s former eurosceptic government to amend its budget to avoid sanctions after a prolonged tussle that hit markets. The letter to Italy, dated Oct. 22 and signed by economic commissioners Valdis Dombrovskis and Pierre Moscovici, said a preliminary assessment of the 2020 draft budget showed that it fell short of EU fiscal recommendations to reduce expenditure. “Italy’s plan does not comply with the debt reduction benchmark in 2020,” the letter said, echoing the message Brussels delivered to Italy last year.

Harley-Davidson Inc beat expectations for profit and stuck to its full-year shipment forecast, allaying fears of another major hit from European import tariffs and a further slump in sales in its main U.S. market. Shares of the company rose 7% in premarket trading as it posted the first rise in international sales in a year during the third quarter and a 3.6% dip in U.S. retail motorcycle sales - the smallest decline in nearly three years. Profits continued to sink - by 24% - but the results offered some hope that one of the biggest names in motorcycles was finally beginning to arrest a slide in global sales that it has been fighting for years. Sales in the world’s biggest motorcycle markets in Asia, which Harley has targeted with smaller bikes that go against its traditional profile, rose 8.7% in the quarter and are up about 1.6% this year overall. The company plans to source half of its revenue from overseas by 2027 and international retail sales rose 2.7% to 23,619 motorcycle in the quarter.

China’s central bank used open-market operations to inject the largest amount of cash into the banking system since May, as upcoming corporate tax payments tighten liquidity conditions. The People’s Bank of China on Tuesday net injected 250 billion yuan ($35 billion) via seven-day reverse repurchase agreements, according to a statement. There were no facilities coming due Tuesday, and the central bank kept the rate steady at 2.55%. China’s 10-year bond yield was little changed at 3.22%. The central bank is acting to fine-tune interbank liquidity conditions while it keeps broader monetary-policy settings stable, seeking to keep credit growth appropriate while avoiding rapid debt build-up as the economy slows. The move comes before an Oct. 24 deadline for companies to pay tax, which typically increases the demand for cash and tightens liquidity. The PBOC injected a net 490 billion yuan in the four days through Oct. 25 last year, and acted last week to funnel 200 billion yuan in one-year funds into the system.