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  • Bulgaria's finance minister, Milen Velchev, has an impressive record. His country's economic fundamentals are far better than those of many in central and eastern Europe. But the population hasn't got the feel-good factor.
  • Nikolay Vassilev, Bulgaria's deputy prime minister and economy minister, rushes back into his office shortly after midnight on a Friday, having been locked in meetings all day. His dinner is a McDonald's hamburger and chips, forced down as he begins yet another meeting. Bulgaria makes very different demands to those Vassilev faced when he was a London-based investment banker. However, he remains enthusiastic.
  • Recently a headhunter approached a member of the fixed-income department of a leading international bank to try to recruit him for a rival. The candidate, intrigued by the sound of the job, decided to pursue the matter. But it soon turned out that the hiring bank was the very one he had walked out of just months before.
  • Source: www.breakingviews.com is Europe's leading financial commentary service
  • You've got to take your hat off to General Motors. At the end of last month the embattled US auto company raised about $47 billion. The banks stumped up $29.5 billion in syndicated loans, bond market investors handed over $13.5 billion, and a $4 billion convertible bond accounted for the rest. Proceeds from the bonds and convertibles were explicitly earmarked for sorting out GM's pension fund liabilities.
  • BUILDING THEIR STRATEGIES on prospects of a fast-growing economy, Greek banks are trying to take advantage of top-line growth to rationalize their cost structure. At the same time, expansion in southeastern Europe has taken priority over consolidation at home. Greek banks are walking a fine line. The realize the local market is too small to satisfy their growth ambitions, but are wary of the costs and risks of expansion.
  • ON THE POSITIVE side, the sale of DSK Bank to Hungarian bank OTP for e311 million means that the entire Bulgarian banking sector is in private hands and more than 80% of shares are owned by foreign investors. The government has also said it is committed to breaking up and selling off its electricity distribution sector in seven companies by the end of the year.
  • Something very odd is happening in the bond markets. At a time when risk aversion is at the forefront of investors' minds, they are piling into junk bonds in such volumes that they have squeezed yields down by around a third since October 2002.
  • At the Securities Industry Association's fourth annual market structure conference in June, representatives of Nasdaq, the ECNs and the NYSE sat under the glittering chandeliers of New York's Grand Hyatt slinging mud at each other.
  • There are several big bubbles driving the global economy and its financial markets. There are the twin bubbles of US household debt and house prices, driven by easy money. And there is the Japanese government bond bubble, fed by excess savings and cheap credit. But the next great bubble in the world is continental European (principally German) labour. This euro wage bubble is sustained by sticky prices and state subsidies.
  • M&A in financial services Amex and Threadneedle; US Trust and State Street; Lehman Brothers and Neuberger Berman Advisers: Credit Suisse First Boston, UBS, Goldman Sachs
  • SENIOR EXECUTIVES OF companies that have taken the plunge and invested in Bulgaria talk enthusiastically about their experience. They cite the stable political and economic climate, the high qualifications and low cost of managers and staff and the ready access to EU and Balkan markets as reasons for their success.