The Czech Republic has entered an election campaign, as Senate and regional elections are a mere month away. It is going, apparently, to be fought over "great" political issues: CSSD claims it "saved" the country and started economic revival, ODS criticizes "non-political" elements within the Czech politics (sic!) and the Coalition of Four promises to end the cohabitation of the ODS and CSSD. Whatever…
Temelin has been launched and protests at the Austrian border seem to lose ferocity. CEZ claims it wants to cut its wholesale prices by 20% and boost its market share to 75%. It may come handy, if it is merged with regional distribution companies, as the government privatization plan assumes…
No change on the forex market: the Czech koruna fluctuates around 35.40 CZK/EUR and just above 41 CZK/USD. Strong economic data from last week support the koruna so there is a chance of small appreciation during this week.
Bonds gained mildly on Friday, rising 15 - 30 bps.
(Ondrej Schneider)