• Public finances reform is not certain yet. Ten MPs of government coalition hesitate with their support, according to MF Dnes. Existence of this government is connected with voting on the reform.
• Number of employees in public sector should decline by at least 3% a year until 2010, according to yesterday’s government approved proposal. State budget should save
CZK 30bn. Volume of wage funds should increase by 1.5% p.a.
• German government approved economy growth estimate for this year to 2.3% from previous 1.7%. Next year, GDP should grow by 2.4%.
• US economy increased its pace moderately in the beginning of this year and consumer prices remained rather stable, according to Fed’s Beige Book. It is expected that Fed is going to leave interest rates unchanged at its May meeting.
• Records were broken at Prague bourse as well. Main index
PX reached 1,828 pts at the end of yesterday’s trading. Today, it moved up to 1,845 pts shortly after opening.
• Dow Jones Index passed 13,000 pts yesterday, for the first time in its history. News that aluminium producer
Alcoa company is considering sale of one its units contributed to this increase. DJI reached 13,090 pts at the end of trading.
• Czech National Bank board is discussing rates at today’s meeting. Financial markets do not expect rate change.