Bulgaria’s economy grew by 0.8 per cent in the third quarter of the year, according to preliminary data announced by the National Statistical Institute (NSI) on December 5, exceeding the 0.7 per cent flash estimate released by the statistics body last month. Compared to the same period of 2018, economic growth in the third quarter was 3.7 per cent. In real terms, gross domestic product (GDP) in Bulgaria in July-September was 31.76 billion leva, or 16.24 billion euro. NSI’s preliminary data showed domestic consumption grow by 0.9 per cent compared to April-June, slowing down from the 1.1 per cent growth rate recorded in the previous quarter. Year-on-year, domestic consumption was 4.9 per cent higher (down from the 5.5 per cent annual growth rate recorded in the second quarter). Gross fixed capital formation rose by 0.4 per cent in July-September, compared to 0.6 per cent growth registered in the second quarter. In annual terms, gross capital formation rose by 1.8 per cent compared to the same period of 2018 (an increase on the 1.5 per cent annual growth rate registered in the second quarter). Exports in the third quarter increased by 4.3 per cent, while imports were up 3.9 per cent, resulting in a trade surplus of 4.46 billion leva, or 14 per cent of GDP. Compared to the third quarter of last year, exports were up 1.3 per cent and imports rose by 1.2 per cent.

The Parliament adopted the framework of the state budget of the Republic of Bulgaria for 2020. The estimated revenues, grants and donations amount to BGN 28,054,682,700, the estimated expenses are BGN 14,356,374,300 and the budgetary relations (transfers) are BGN 12,238,541,500. For next year, a contribution to the general budget of the European Union is envisaged at the amount of BGN 1397.4 million, which is BGN 115.3 million more than 2019. The main budgetary relations between the municipalities and the central budget are in the total amount of BGN 4,202,545,500 or BGN 456.8 million more than last year. The envisaged transfers for the state social security are BGN 4,312,531,400 and for the National Health Insurance Fund - BGN 1,616,999,500. Budget 2020's priorities are education, healthcare, defense, retirement and income policies.

The initial concession fee of BGN 550 million, which the state should receive from the winner of the concession tender for Sofia Airport, will not go to the so-called Silver Fund for pension system support, as generally mandated by the Law on Sta State Fund for Guaranteeing the Stability of the State Pension System (SFGSSPS). This was decided by the deputies at the second, final, reading of the state budget bill. The idea for the scheme has been around for a long time and was enshrined last year - in the 2019 budget. The government's goal is to use that money to pay off BDZ's debts. However, no concession payment has been made yet - at present, the decision to select SofConnect association as winner is in the Supreme Administrative Court because of the appeals of other participants. The initial appeal in the CPC was left without result by the antitrust commission.

German bank Commerzbank is considering opening its IT Hub in Sofia. The intentions of the bank were discussed by the Minister of Economy Emil Karanikolov and Dr. Karsten Bitner, a member of the Board of Group Technology Foundations Commerzbank AG. During the meeting, the bank's investment plan was presented and, according to Dr. Bitner, 400 new jobs will be created for highly qualified IT specialists, with the tendency to increase to 600. Minister Karanikolov said that the intentions for Commerzbank's investment AG is yet another proof of the positive development of the IT sector in Bulgaria and contributes to the consolidation of the image of the country as an attractive and competitive investment destination. In mid-2019, there are over 62,200 people employed in the IT sector. In the second quarter of 2019, the turnover of enterprises in the ICT sector increased by 28.9% compared to the corresponding quarter of the previous year, the largest increase for a year and a half. In the previous quarter of 2019, the annual growth rate of turnover was 20.6%. Activities in the ICT sector are carried out by about 12,498 companies.

The Morningside Hill investment firm is beginning to provide venture capital to Bulgarian companies that have strong teams, a clear investment idea and address specific market needs. The Fund will invest in companies that already have a fully developed product that has been validated from local or global markets. In addition to financial support, the fund manager strives to help accelerate investment growth through access to an international partner network, external markets and expertise, as well as through strategic and managerial support. The Morningside Hill team has years of experience with almost all investment palette instruments such as private equity, publicly traded equities, government and corporate bonds, derivative instruments and investments in financially distressed companies. The Morningside Hill Fund is the third combined investment product financed jointly by public funds from the Fund of funds under Operational Program Innovation and Competitiveness 2014-2020, co-financed by European Structural and Investment Funds, and capital from private investors. The total amount of the Fund is EUR 28.6 million.

U.S. companies such as Lockheed Martin, Northrop Gruman, Oshkosh Defense, Textron and IBM are interested in joint production of weapons and military equipment with Bulgarian factories. As well as in tender biddings for new army equipment. This was made clear at the second Defense Industry and Cybersecurity Forum, organized by the American-Central European Business Association. Northrop Gruman is interested in selling Bushmaster guns to Bulgaria, and Oshkosh - MRAP armored combat vehicles and light tactical armored vehicles. Lockheed Martin, of which Bulgaria has already bought 8 F-16 fighter jets, is hoping for a deal for Sikorski helicopters as well, the company said. IBM is interested in selling cyber security products. In addition, with US financial assistance, they also rely on cybersecurity capabilities. Each of the companies is also looking for Bulgarian co-production partners. This will also be one of the preconditions for future deals for the army.

The Court of Justice of the European Union said that Bulgarian legislation, which requires each owner of a property in a building in co-ownership to contribute to the cost of heating supplied to the common parts of that building, did not breach EU law. The court’s ruling came after two separate cases were brought in front of it, concerning legal disputes between property owners and two of Bulgaria’s largest heating utilities in capital city Sofia and Plovdiv - Toplofikacia Sofia SPJSC and EVN Bulgaria District Heating SPJSC respectively. Property owners argued that, while their property was supplied by the district heating network pursuant to a contract for supply agreed between the association of co-owners and the utilities, they did not individually consent to receiving district heating and did not use it in their apartments. In its ruling, the ECJ said that the supply of heating to the internal installation and the common parts of a building in co-ownership, carried out following a decision adopted by the association of property owners of that building, was not a case of unsolicited supply.

Bulgarian drug maker Sopharma said that its sales revenue rose by an annual 8% in the January-November period of 2019, due to higher sales on foreign markets. Sopharma's domestic sales fell 1% year-on-year in the first eleven months of 2019, while sales abroad grew 14%, the company said in a bourse filing. In November alone, the company's sales jumped 24%. Exports were 27% higher on the year, while domestic sales grew 21%. The company did not disclose information about the volume of its sales or amount of sales revenue.

Kering SA has held exploratory talks with Moncler SpA about a potential deal for the Italian skiwear maker, people with knowledge of the matter said. Senior executives at Kering, the owner of Gucci and Saint Laurent, and Moncler have held preliminary discussions about a combination, according to the people, who asked not to be identified because the information is private. There’s no certainty the talks will lead to a transaction. Any takeover would require Kering Chief Executive Officer Francois-Henri Pinault to win over Moncler’s Remo Ruffini, whose investment vehicle owns 22.5% of the company, which has a market value of about 11 billion euros ($12 billion). Ruffini “maintains contacts and interacts with investors and other sector participants, including the Kering group, in order to explore strategic potential opportunities to further promote the successful development of Moncler,” the Italian company said in a statement Thursday. “At the moment, however, there is not any concrete hypothesis under consideration.” A representative for Kering declined to comment. Moncler surged as much as 12%, the biggest gain since the shares began trading about six years ago in Milan. Kering rose 1% in Paris, and other European luxury stocks gained.

America’s industrial heartbeat remained faint in November as a measure of manufacturing contracted for a fourth straight month against a backdrop of weaker orders and subdued production. U.S. stocks headed for their worst decline in more than a month. The Institute for Supply Management data on Monday showed the factory purchasing managers’ index unexpectedly declined to 48.1, near the expansion’s low point, from 48.3. The median forecast in a Bloomberg survey of economists called for an improvement to 49.2. Readings below 50 indicate activity is shrinking. The figures show the manufacturing sector, while no longer in freefall, lacks upward momentum in an environment of corporate investment cutbacks, subdued global demand and a still-simmering U.S.-China trade war. In addition, factory gauges in China and Germany suggested the worst may be over for the sector. A global PMI out Monday from JPMorgan and IHS Markit rose to 50.3 in November from 49.8, representing the first expansion since April, as orders reached the highest level in 2019. The gain was partly due to the U.S.

China’s exports are expected to have risen for the first time in four months in November, a Reuters poll showed, though a protracted trade row with the United States and slack global demand mean a sure-footed turnaround in shipments is some way off. Exports by the world’s second-largest economy likely rose 1.0% from a year earlier last month, according to a median estimate from a Reuters poll of 20 economists, improving from a 0.9% drop in October and marking the first pickup since a 3.3% rise in July. Imports are forecast to have dropped 1.8% from a year earlier in November, also a slower rate of decline from the 6.4% slump the month before, the poll showed. Beijing and Washington remain locked in weeks of negotiations to ink an interim “phase one” trade deal aimed at de-escalating the 17-month-long dispute that has led to tit-for-tat tariffs. U.S. President Donald Trump said on Wednesday that trade talks are “going well,” a day after spooking markets with a warning that the deal might have to wait until after the November 2020 U.S. presidential elections.