Business Industry Capital
Bulgaria
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BNB Exchange Rates
(21.11.2019) |
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EUR |
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1.95583 |
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GBP |
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2.28178 |
USD |
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1.76854 |
CHF |
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1.78175 |
EUR/USD |
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1.1059* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.11 |
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0 % |
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Financial news |
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The Bulgarian electricity trading market has joined the Single European Intraday Market, the Electricity System Operator (ESO) said. ESO Executive Director Angelin Tsachev and Independent Bulgarian Energy Exchange (IBEX) Executive Director Konstantin Konstantinov signed an agreement regulating the two companies' commitments arising from the accession of the Bulgarian electricity market to the Single European Intraday Market Coupling. The IBEX-operated intraday electricity trading market is joining the European market coupling across the Bulgarian-Romanian border. By the agreement, ESO and IBEX agree to cooperate in conducting implicit auctions for cross-border allocation of capacity and energy. ESO undertakes to coordinate interconnection exchanges for each delivery period with neighbouring transmission system operators. November 20, 2019 is the day of the first electricity supply within the market integration. Interconnection capacity is also available, allowing trade with all other market areas that are part of the Single European Intraday Market. Source: BTA
Citizens who have public obligations will not be able to carry over BGN 30,000 of cash abroad. This is foreseen by changes in the Currency Act, approved by the Council of Ministers. The control of this measure will be carried out by the customs authorities after they have received on an official basis information on the existence of public obligations. The funds, which are in the local person leaving the territory of the Republic of Bulgaria, are subject to declaration. Also, the obligation to declare should be fulfilled by the resident upon leaving the European Union, with only cash in excess of EUR 10,000 and above being subject to declaration. The restrictions in the Currency Act are also enshrined in European legislation. The amendments also envisage changes in sanctions for non-declaration of cash or precious metals and precious stones and articles. The new sanction would be one fifth of the value of the undeclared funds if the act does not constitute a crime. Source: Banker
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Companies |
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Bulgaria's government is proposing to parliament to ratify the guarantee agreement with the European Investment Bank (EIB), concerning the BGN 215 million loan which the lender is providing to Bulgarian Energy Holding (BEH). The ratification of the guarantee agreement is a precondition for the disbursement of the funds. The funds will be used to finance the construction of the gas interconnector Greece-Bulgaria, which is expected to cost some 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.
Sofia-based transport and logistics company Gopet Trans has extended its portfolio by launching an airfreight division on November 18. With this new service, the company now covers all transportation modes: land - road and rail, sea and air. Gopet Trans, which also offers warehousing and distribution services, is consolidating its market position as a one-stop shop for integrated transport and logistics solutions for local and international clients. The newly-launched Gopet Trans division along with its network of partners enables the logistics company to cover 193 countries and ship to and from more than 800 airports. Gopet Trans' airfreight service offers collection from point of origin, handling, customs operations, air shipment, clearance at the destination and delivery to door. Going forward, the company plans to further diversify its services and increase its business agility by continuous digitalisation. Gopet Trans, which has been active on the local market for about 25 years, offers road, intermodal, sea and logistics services to more than 5,000 clients in Bulgaria and abroad. It is also active in Greece, Romania, Poland and Spain, where it has offices. The group has 400 employees in its five offices and had a turnover of BGN 288 million in 2018.
Key assets of the company producing chutney and mayonnaise Olinesa are being auctioned for debt in 2015. These are a total of 9 properties, including the company's headquarters in Kostinbrod, a industrial unit and finished goods warehouses. 6 of the properties are agricultural land. According to experts, this will inevitably create problems for the company, which is one of the well-known names in the food industry. The basis for the possibility of these properties being announced for sale to the public is a ruling of the Supreme Court of Cassation of November 6, confirming the ruling of the Sofia Court of Appeals of August 2018. Both acts of magistrates annul the sale of properties by the owner-company Olinesa - Partners JSC of Olinesa Premium from December 8, 2015. Source: actualno.com
CEZ Bulgarian Investments B.V. will renovate five of the main buildings of Pirogov Hospital, including the main building, with own funds. Financing of energy efficiency activities, including renewal of energy supply, water supply and sewerage systems and construction of ventilation systems, is worth EUR 6.721 million, which is fully provided by CEZ Bulgarian Investments. The news came after the signing of the contract between Pirogov, represented by Prof. Assen Baltov and Martin Bartunek of CEZ Bulgarian Investments. The contract is for a period of 9 years and will be paid through energy savings, which is expected to be about BGN 600 thousand per year. In addition to the main building of Pirogov Hospital, the buildings of the internal clinic and cardiology, the urology clinic, the pediatric clinic and the low buildings on the side of Pencho Slaveikov Boulevard will be completely renovated. He added that the procurement for selection of contractor is currently underway, which should be completed by the end of this month, after which the real activities will start immediately.
Bulgarian machine engineering company Hydraulic Elements and Systems (HES) generated sales revenue of BGN 5.4 million in October, in line with its forecast made last month. HES reported accumulated sales of BGN 53.1 million in January-October, up by an annual 1.65%, and expects to generate a further BGN 5.4 million in November. If the company meets its November sales expectations, its annual sales growth will slow down to 0.38% in January-November. The company's gross profit amounted to some BGN 4.5 million in January-October. HES is part of blue-chip industrial group Stara Planina Hold.
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Bulgarian Industrial Association
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World
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Europe |
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Poland's right-wing prime minister called on the EU to plug tax loopholes he said were costing billions of euros every year, in a speech to parliament following his re-election. And he told deputies his Law and Justice (PiS) government wanted to ensure Poland's economic growth rate would outpace the eurozone by at least 2-3 percentage points in the coming years. Multinational corporations had "avoided paying taxes for years" and the tax havens "must be closed", Mateusz Morawiecki told deputies, as he set out his priorities for his second term. "The European Union loses 150 billion euros each year in CIT (corporate taxes) and doesn't see this elephant in the room," said Morawiecki. The "biggest and richest" global firms ought to pay taxes where they earn revenue, said the former banker. "The other elephant is 150 billion euros in lost VAT (sales tax)," he added, without explaining in detail where the money was being lost. Poland and other newer EU members are looking for ways to help make up the loss of Britain's contribution after Brexit, but they oppose cuts planned by the European Commission. Source: AFP
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America |
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Easing trade tensions and easier monetary policy will lift global growth from 2020 first quarter, according to Morgan Stanley economists, who say emerging markets will drive this, given US growth’s late-cycle stage. Downside risks include the potential for more tariffs and late-cycle challenges in the US like corporate credit risk and poll uncertainties. “Global growth should recover from 1Q20, reversing the downtrend of the past seven quarters as trade tensions and monetary policy are easing simultaneously for the first time since the downtrend began,” the economists led by Chetan Ahya wrote in a note. If the US government imposes additional tariffs on Chinese goods in December, global growth will decelerate further in the final quarter of this year and the recovery will be delayed until the third quarter of 2020, global newswires cited the authors as writing. Still, a mini-cycle recovery should kick in next year. Constant interruptions to the global cycle over the past decade have kept a lid on any overheating and helped avert a steep recession, they said.
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Asia |
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China has set up a $21 billion national investment fund to promote the transformation and upgrading of the country's manufacturing industry, the official Shanghai Securities News reported. The fund, with a registered capital of 147.2 billion yuan ($21 billion), will invest in both growth-stage and mature companies in areas such as new materials, next-generation information technology (IT) and power equipment, the newspaper said. The new fund will invest throughout the entire manufacturing industry value chain, the article said, citing Zhang Yuzhe, a researcher at the National Development and Reform Commission (NDRC). The fund was set up by 20 stockholders, with the Ministry of Finance holding a 15.29 percent stake as the biggest shareholder, according to a separate report by the official Xinhua News Agency. CRRC Corp, China's state-owned railway equipment maker, said in a statement on Monday that it plans to invest an initial 25 million yuan in the fund. Source: Associated Press
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Indexes of Stock Exchanges 20.11.2019 |
Dow Jones Industrial |
27 821.09 |
(-112.93) |
Nasdaq Composite |
8 526.73 |
(-43.93) |
Commodity exchanges 20.11.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 57.09 |
Heating oil ($US/gal.) | 1.8900 |
Natural gas ($US/mmbtu) | 2.5800 |
Unleaded gas ($US/gal.) | 1.6600 |
Gold ($US/Troy Oz.) | 1 470.60 |
Silver ($US/Troy Oz.) | 17.07 |
Platinum ($US/Troy Oz.) | 918.70 |
Hogs (cents/lb.) | 66.78 |
Live cattle (cents/lb.) | 125.48 |
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