Czech Republic - Factors To Watch on Jan 8

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NO ECONOMIC DATA DUE OUT ON FRIDAY

Central bank (CNB) releasses December forex reserves at 10 a.m. (0900 GMT).

- For real-time economic data releases and consensus forecasts, double click on the code in brackets:

[RTRS-LEN-CZ-ECI]

GOVERNMENT DEBT

The Finance Ministry is expected to release data on fourth quarter government debt levels and duration around 2 p.m. (1300 GMT).

[RTRS-LEN-CZ-GVD]

CROWN ON BACK FOOT

The Czech crown extended its retreat from record highs versus the euro in early Friday trade, to a 10-day low of 27.725 per euro .

- For previous updates on Czech currency moves click on [CZK/]

INFLATION SEEN BELOW TARGET

Inflation is likely to have remained below the bottom of the central bank's target tolerance band in December, boding well for expectations of flat interest rates near-term, a Reuters poll showed.

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- A full table with individual responses can be accessed through Reuters page .

GOVERNMENT APPOINTMENT THIS WEEK

Prime Minister Mirek Topolanek believes that the President could appoint the coalition government made up of his Civic Democrats, the Christian Democrats, and the Green Party as early as Tuesday, writes the daily Hospodarske Noviny. This will launch the 30-day period in which the new government must request a vote of confidence in parliament. The opposition Social Democrats have said they will not support the cabinet.

- For most recent stories on Czech politics, double click on [RTRS-LEN-CZ-POL].

President Vaclav Klaus told the weekly Tyden in an interview no agreement on a new government or early elections was possible without the consent of the two biggest parties, the Civic Democrats and Social Democrats. He criticised Topolanek's plan for a coalition government without Social Democrats for relying on support of defectors from the leftist camp and possibly raising concerns over political corruption.

RECORD SALES AT SKODA

Global sales of Volkswagen's Czech brand Skoda rose 11.7 percent to a record 550,000 vehicles. Volkswagen group vehicle sales advanced 9.3 percent to a record 5.73 million units in 2006 thanks to brisk growth around the world and across its brands.

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Skoda board member Martin Jahn was quoted as saying in the daily Hospodarske Noviny that the company planned to make roughly 580,000 vehicles this year.

Overview of past economic data and market forecasts 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: 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))

[PRAGUE/Reuters/Finance.cz]