Czech Republic - Factors To Watch on June 29

...ALL TIMES GMT (Czech Republic: GMT + 2 hours) 
 
 ======================== ECONOMIC DATA ======================== 
 
    * First quarter foreign debt and May money supply figures 
are due for release at 0800. No consensus forecasts are 
available. 
 
    Real-time economic data releases................... 
    Previous stories on Czech data............[CZ-RTRS-LEN-ECI] 
    Overview of economic data and forecasts......... 
 
 ========================= TOP STORY =========================== 
 
    RATES STAY ON HOLD, HIKE IN OFFING 
    The central bank (CNB) left interest rates unchanged on 
Thursday, taking a breather after a quarter of a percentage 
point rise in May to contain budding inflation pressures in the 
strong economy. 
    Governor Zdenek Tuma said the CNB had no reason to "panic" 
and hike at every monthly meeting despite a weaker crown 
currency and robust economic growth. However, he re-affirmed 
market views that credit costs would head higher in the coming 
months. 
    Related story: [ID:nL28398864] 
    HIGHLIGHTS of Tuma's comments: [ID:nL28546436] 
    Profiles of CNB board members: [ID:nL28883806] 
    Board members recent remarks on policy: [ID:nL28700042] 
    Related news: [RTRS-LEN-CZ-INT] 
    FACTBOX on east European rate-setting meetings: [nL22203868] 
 
 ==================== ELSEWHERE IN THE NEWS ==================== 
 
    CEZ SAID TO SUE COAL COMPANY 
    Power utility CEZ  is expected to file a lawsuit 
against closely-held Mostecka Uhelna (MUS) coal company on 
Friday for failing to honor a long-term contract for coal 
deliveries, writes the daily Hospodarske Noviny. 
    It reports the coal company has refused to sign a long-term 
agreement for coal deliveries until 2055 with the power utility, 
putting CEZ's plans to build a power plant worth 70 billion czech 
crowns ($3.29 billion) into jeopardy. The firms had signed a 
preliminary agreement for the deliveries two years ago. 
    Related news: [RTRS-LEN-CZ-CEZPsp.PR] 
     
    S&P WARNS ON REFORMS 
    Political unwillingness or inability to tackle structural 
reforms and further consolidate public finances could limit 
improvements in credit quality of the four largest Central and 
Eastern European countries, including the Czech Republic, said 
Standard and Poor's Ratings Services. 
    Story: [nWLA0838] 
    Related news: [RTRS-LEN-CZ-AAA] 
     
    UNIPETROL SHUTDOWN COSTS 
    Outages planned at downstream oil group Unipetrol 
  this year will bite into the company's 
results by more than last year's 800 million crowns ($37.61 
million), Chief Executive Francois Vleugels said. 
    Story: [nL28849133] 
    Related news: [RTRS-LEN-CZ-UNPEsp.PR] 
     
    INVESTORS LIKE CZECH REPUBLIC 
    The Czech Republic ended up 10th on the list of countries 
that are most attractive for interest, an Ernst & Young survey 
among 800 top managers from around the world showed, according 
to the daily Hospodarske Noviny. Seven percent considered the 
Czech Republic the best place to invest. China placed first. 
    Related news: [RTRS-LEN-CZ] 
     
     
 
 (Reuters has not verified any of the newspaper reports that may 
be quoted above and does not vouch for their accuracy.) 
 
 
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 For summary of economic data and forecasts           
 For diary of forthcoming Czech events                [CZ/DIARY] 
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 ($1=21.27 Czech Crown) 
  Keywords: CZECH FACTORS/