• Airport Prague (Letiste Praha) is most probably going to be fully privatised and not rented, according to Deputy Minister of Transport Jiri Hodac. According to him, income from sale could reach CZK 60-70bn.
• Czech households are not excessively indebted, according to Financial Stability Report published by Czech National Bank. Compared with advanced EU countries, rate of indebtedness in relation to GDP remains around one third.
• In the same report it is said that real estate property prices increase is probably already creating a bubble, according to ratio of price of residential units to wages which is in Prague 2.5-3.0x higher than in Berlin or Vienna. In case of flat prices decline, developing companies could get into problems with loans repayment, according to CNB.
• There are no significant pro-inflation risks, particularly after recent interest rates hike, according to CNB board member Robert Holman. The question is whether this member of the board have ever seen some pro or counter-inflation risks.
• Consumer prices in France increased by 0.3% in May dragged by higher prices of energies and food. Year-on-year inflation reaches 1.1%.
• US budget deficit in May increased to USD 67.7bn. Deficit for current fiscal year, which started in October last year, is USD 148.5bn, which is by one third lower that in last fiscal year.
• Chinese economy growth is too fast and is not going to last, according to former Fed boss Alan Greenspan. This can be said about other third world countries, according to Greenspan, as share prices are derived from nirvana not reality.