ČSSD chairman came under attack of his party members for his proposal to support Communist party in regions where ČSSD had not succeeded in the recent elections. Some of his critics called him to resign as chairman.
The Senate’s Economics Committee proposed to return the amendment including a controversial income tax passage that requires adding liabilities into the tax base. The amendment doesn’t distinguish between long-term and occasional dodgers.
President Havel met several economic authorities yesterday to discuss an appointment of new central bank governor and other new board member. Heretofore it seems that the highest probability to become the new governor is given to current vice governor Tůma.
The Czech koruna stayed in the tight range between 34.62 and 34.72 yesterday as the FX market is missing liquidity and new impulses. Against the dollar the Czech koruna stood at 40.33 from 40.42 late on Tuesday.
Bond reached another historical lows on Wednesday. After few bullish days the trend reversed again, with longest bonds losing most again. Corporates were not much traded, except the "old taxation" bonds, which were sent higher by a rumour that new tax law might be rejected in Senate. Thursday is the last trading day this week as Friday is a state holiday, however it's very hard to give a prediction for that day. Some correction might come, however this would be short-lived, as we still believe the trend remain very bearish.
Current benchmark prices: MoF 6.75/05 98.60-90 (-25 bps), MoF 6.30/07 93.50-80 (-40 bps), MoF 6.40/10 91.45-75 (-55 bps).
(David Marek)