Czech foreign trade deficit reached CZK 11 billion in October. The deficit is higher than our forecast (CZK 8.5 bn) but slightly lower than market consensus (11.7 bn). The surplus reached in September was revised from CZK 1.8 bn to CZK 2.5 bn. In October 2000, the deficit was more CZK 5.0 bn higher. The 12-months trade deficit thus decline to CZK 123.3 bn.
Industry and Transport Union challenged Czech National Bank to interest rates reduction yesterday. Lower interest rates should compensate a negative influence of the strengthening Czech currency against the euro and thus it can help to keep a competitiveness of the domestic producers.
The German economy, Europe's largest, contracted for the first time in more than two years in the third quarter, pushing it to the brink of recession. Gross domestic product shrank 0.1 percent compared with the previous three months, after stalling in the second quarter, the Federal Statistics Office said. The U.S., Japan and Germany -- the world's three biggest economies -- are all shrinking for the first time since the final quarter of 1974. However, year-to year comparison still keeps above the zero level growth. It reached an increase by 0.3% in the third quarter after an increase by 0.6% in the second quarter.
Russia and Norway suggested a possibility to join OPEC attempt to reduce oil production quotas. An aim of the OPEC is to give back oil price in its price target (22-28 USD/barrel). Norway announced a possibility to reduce its daily production by 100 - 200 thousand barrels. In case of Russia, officials said that the reduction could reach 100 - 150 thousand barrels. Oil price immediately responded to these statements and rose above the 20 USD/barrel (BRENT).
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