Czech Republic - Factors To Watch on July 3

...ALL TIMES GMT (Czech Republic: GMT + 2 hours) 
 
 ======================== ECONOMIC DATA ======================== 
 
    * No economic data are due out. Next scheduled release is 
the May foreign trade balance on July 9 . 
 
    * The Purchasing Managers' Index (PMI) picked up in June to 
reach the second-highest point in the survey's six-year history, 
recovering from a six-month low in May. 
    Overview: [nL02209334] 
    * The central state budget showed a 27.3 billion crown 
($1.29 billion) surplus for the month of June, lifting the 
year-to-date balance back into the black. 
    Overview: [nL02684274] 
 
    Real-time economic data releases................... 
    Previous stories on Czech data............[CZ-RTRS-LEN-ECI] 
    Overview of economic data and forecasts......... 
 
 ========================= TOP STORY =========================== 
 
    INFLATION SEEN INCHING HIGHER 
    Inflation probably rose in June to remain half a percentage 
point above the central bank's projection, according to a 
Reuters poll, a result that will bolster expectations of an 
interest rate hike later this month. 
    Related story: [nL02337062] 
    Related news: [POLL/CZ] 
    Table of forecasts: [nL02411644] 
 
 ==================== ELSEWHERE IN THE NEWS ==================== 
 
    ENERGY BOURSE 
    Prague Energy Exchange (EBP) holds a news conference with 
Chairman Petr Koblic on the opening of trading at 0800. 
    Related news: [RTRS-LEN-CZ-ELG] 
     
    T-BILL SALE 
    The Finance Ministry offers a tranche of 13-week Treasury 
bills in an auction. 
    Auction details and results:  
 
    RESEARCH ALERT: ING UPS PEGAS TARGET 
    ING Wholesale Banking has raised its 12-month target price 
for shares in Czech artificial fabrics maker Pegas Nonwovens 
 to 960 crowns from 890 crowns, while keeping a "buy" 
rating on the stock. 
    Story: [nL02235316] Related news: [RTRS-LEN-CZ-PGSNsp.PR] 
     
    CEZ POSTPONES INVESTMENT 
    Power utility CEZ  has postponed its plans to 
invest 2.5 billion crowns ($118.2 million) into the construction 
of up to 39 windmill power plants of 2 MW each due to objections 
from local residents, writes the daily Hospodarske Noviny. 
    The windmill park, which should have become CEZ's largest, 
was scheduled for completion in 2011. CEZ said it believed local 
residents would eventually change their minds. 
    Related news: [RTRS-LEN-CZ-CEZPsp.PR] 
     
    BUSH ON SHIELD 
    U.S. President George W. Bush insisted on Monday that 
components of a planned U.S. anti-missile shield should be based 
in eastern Europe, despite Russia's opposition to such a move. 
    Story: [nWAT007828] 
    Russian President Vladimir Putin made a new counter-proposal 
to President George W. Bush on Monday for reshaping a planned 
U.S. missile shield that has strained relations between their 
countries. 
    Story: [nN02367661] Related news: [RTRS-LEN-CZ-US-DIP] 
     
    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] 
     
 
 (Reuters has not verified any of the newspaper reports that may 
be quoted above and does not vouch for their accuracy.) 
 
 
 For Instant Views of key economic data click on    [CZ/INSTANT] 
 For summary of economic data and forecasts           
 For diary of forthcoming Czech events                [CZ/DIARY] 
 For calendar of east European economic indicators  [CONV/DIARY] 
 TOP NEWS -- Emerging markets                         [TOP/EMRG] 
 TOP NEWS -- Convergence watch                        [TOP/EAST] 
 
 For an economic indicator diary for the euro zone, the United 
 States and other Group of Seven countries see          
 
 For real-time stock market index quotes click in brackets: 
 Warsaw WIG20   Budapest BUX   Prague PX  
 
    News editor of the day: Jan Lopatka on +420 224 190 477; 
fax: +420 224 229 935 
    E-mail: prague.newsroom@reuters.com 
    Reuters Messaging: jan.lopatka.reuters.com@reuters.net 
 
  
 ($1=21.15 Czech Crown) 
  Keywords: CZECH FACTORS/