Czech Republic - Factors To Watch on Oct 31

PRAGUE, Oct 31 (Reuters) - Here are news stories, press reports and events to watch which may affect Czech financial markets on Tuesday:

TALKS ON NEW GOVERNMENT

Outgoing Czech Prime Minister Mirek Topolanek and his rightist Civic Democrats began talks on Monday with other parties in parliament hoping to reach a deal to dissolve the lower house and hold fresh elections in 2007.

[nL30851871]

Political parties appear heading towards a compromise on an early election and the only question remaining is when to call them and who will form an interim government, writes the daily Mlada fronta Dnes (page 1).

- For most recent news on Czech politics, double click on the following codes:

[ID:nL29849588] [ID:nL28866559] [RTRS-LEN-CZ-POL]

MONEY SUPPLY

End-September money supply <CZM2Y=ECI> due out at 10 a.m. (0900 GMT).

- For real-time economic indicator releases and consensus market forecasts, double click on <ECONCZ>.

MICROSOFT

Software firm Microsoft <MSFT.O> holds a news conference with chief of Czech operations Michal Cupa on new investment in the Czech Republic at 1 p.m. (1200 GMT).

[RTRS-LEN-MSFT.O]

PENSION REFORM

Business forum on pension reform with Labour Minister Petr Necas at 1 p.m. (1200 GMT).

DERIVATIVES

Online broking house Patria Direct and Prague Stock Exchange organise a business conference on derivative products at 4 p.m. (1500 GMT).

CROWN AT THREE-WEEK HIGHS

The crown rose to near three-week highs versus the euro on Monday, as investors booked gains on high-yield, high-risk emerging market assets financed out of the low-yielding Czech currency.

[nL30880910]

- For regular updates on Czech currency moves, click on [CZK/].

REUTERS POLL: CPI SEEN TUMBLING

Annual inflation is expected to have eased to a near 1-1/2-year low in October as energy and fuel costs fell following a drop in world crude oil prices, a Reuters poll of analysts showed.

[nL30918482] [nL30177465] [POLL/CZ]

ZENTIVA EARNINGS

Soaring export sales helped Zentiva <ZNTVsp.PR> post a 4 percent rise in nine-month net profits, but its shares held flat as the Czech drug maker merely reiterated its full-year earnings outlook.

[nL30911632] [RTRS-LEN-CZ-ZNTVsp.PR]

MYLLYKOSKI BURIES CZECH PROJECT

Finland's Myllykoski has scrapped plans for a new paper mill in the Czech Republic and would shift the investment instead to Plattling, Germany.

[nL3027880] [RTRS-LEN-CZ-FIN]

RATES ON HOLD

The central bank (CNB) kept its benchmark interest rate steady, matching market expectations that it would pause in its tightening cycle after a quarter of a percentage point hike last month.

[nL26548848] [CNB/INT]

- For TABLE outlining the central bank's new quarterly economic forecasts, double click on [nPRA000994].

- For TABLE detailing analysts' interest rate forecasts before this week's meeting, click on [ID:nL20536892].

- For FACTBOX on monetary decisions in central Europe, click on [ID:nL23820301].

POLL: CROWN SEEN FIRMING

The Czech crown is likely to rally more than 2 percent to new all-time highs of 27.70 per euro <EURCZK=> over the next 12 months, extending a long-term trend fed by rising exports, a Reuters poll shows.

[ID:nL1863825] [ID:nL18826170] [CZK/POLL]

Individual forecasts can be accessed through the following page <CZ/ECON07>.

Overview of past economic data and market forecasts <CZ/ECON15> For Instant Views of key economic data click on [CZ/INSTANT] For summary of economic data and forecasts <CZ/ECON01> 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 <G7TODAY>

For real-time stock market index quotes click in brackets: Warsaw WIG20 <.WIG20> Budapest BUX <.BUX> Prague PX <.PX>

News editor of the day: Alan Crosby on +420 224 190 477; fax: +420 224 229 935

E-mail: prague.newsroom@reuters.com

Reuters Messaging: alan.crosby.reuters.com@reuters.net

((Compiled by Marek Petrus; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))