Czech Republic - Factors To Watch on Oct 18

(Updates with government calling news conference earlier)

PRAGUE, Oct 18 (Reuters) - Here are news stories, press reports and events to watch which may affect Czech financial markets on Wednesday:

RETAIL SALES

August retail sales are due out at 9 a.m. (0700 GMT), to be watched for signs of a mild slowdown in healthy consumer spending growth.

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

BOND AUCTION

The finance ministry offers a tranche of the 3-year government bond <CZ3YT=RR> in an auction to be conducted by the central bank.

- For auction details and results, double click on <CNB08>.

BUDGET COMMITTEE

The budget committee of the lower house of parliament is due to discuss the 2007 budget draft at a session starting at 9 a.m. (0700 GMT).

- For FACTBOX on budget forecasts and process, double click on [ID:nL16534799].

POLITICAL TALKS

President Vaclav Klaus meets Social Democrats (CSSD) leaders at 10 a.m. (0800 GMT) as part of a series of talks with all five parliamentary parties to help the president decide whom to pick as the next prime minister.

Klaus also speaks at 5:30 p.m. (1530 GMT) in a live interview on the public Czech Radio.

- For most recent news on Czech politics, double click on the following link: [RTRS-LEN-CZ-POL]

CABINET MEETING

The outgoing rightist cabinet meets in a regular weekly session at a government chateau in the Prague district Kolodeje. It called a news conference for 12:00 p.m. (1000 GMT), one hour earlier than originally expected.

Local media report the cabinet may discuss the sale of military jet maker Aero Vodochody. Oakfield, a unit of investment group Penta, bid 2.91 billion crowns ($128.8 million) for the company and receivables due to the state.

[RTRS-LEN-CZ-MRG]

- For most recent news report on the sale, double click on [ID:nL27379169].

The daily Hospodarske Noviny reports the sale to Penta is most likely at the moment.

NEW IPO?

Car-parts maker Motorpal, based in the town of Jihlava in the eastern part of the country, is planning an initial public offering for the second half of next year, writes the business daily Hospodarske Noviny (page 15).

FINMIN AIDES ACCUSED OF CORRUPTION

The SNK European Democrats (SNK ED), a small right-of-centre party, has accused unnamed aides to Finance Minister Vlastimil Tlusty of corruption in connection with the payment of contributions for its Prague municipal representatives, writes the daily Hospodarske Noviny (page 1).

The Finance Ministry rejects the claim and Tlusty denies any wrongdoing.

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)) ($1=22.59 Czech Crown)