Czech Republic - Factors To Watch on Feb 16

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RETAIL SALES

Growth of retail sales slowed slightly more than expected at 4.4 percent year-on-year in December, but quickened to a record 6.4 percent for the whole of 2006, confirming a rebound in household spending.

- For INSTANT VIEW, double click on the code in brackets: [nL15284157]

[RTRS-LEN-CZ-ECI]

LONG BOND

The Finance Ministry added an auction of the longest dated government debt, the 30-year benchmark bond , to its first quarter debt issuance calendar.

[nL15783007] [RTRS-LEN-CZ-GVD]

ANALYSIS: RATE CUT MAY BE MULLED

A surprise drop in inflation could prompt policymakers to weigh an interest rate cut, but a renewed bull run by the crown would be needed to get them to actually pull the trigger on lower borrowing costs.

[nL15322872] [RTRS-LEN-CZ-PLCY]

POLL: CROWN SEEN SOFT NEAR-TERM

A deepening yield discount versus major currencies is likely to weigh on the Czech crown in the next 3 months, holding it back from extending its long-term appreciation trend, a Reuters poll showed.

[nL15774446] [CZK/POLL]

- FOR TABLE OF FORECASTS, DOUBLE CLICK ON [ID:nL15738148].

POLL: CEZ EARNINGS SEEN JUMPING

Power firm CEZ is expected to report a 66 percent rise in fourth-quarter operating profit due to higher electricity prices and acquisitions, analysts said.

[nL14852092] [RTRS-LEN-CZ-CEZPsp.PR]

CEZ STAKE SALE

Deputy Prime Minister Alexandr Vondra indicated that a small stake in CEZ -- which the government is considering offering through the stock market to be bought back by the company itself -- might not be sold if other state-held assets are privatised, writes the daily Hospodarske Noviny (page 12).

TELEFONICA IN SLOVAKIA

Telefonica O2 Slovakia, a unit of Telefonica O2 Czech Republic , has attracted 110,000 clients who activated their SIM cards within 12 days of the company's service launch.

[nL15805612] [RTRS-LEN-CZ-SPTTsp.PR]

RESEARCH ALERT-WOOD & CO SELLS PEGAS

Wood and Company has initiated coverage of artificial fabrics maker Pegas Nonwovens with a "sell" recommendation and a 6-month price target of 650 crowns.

[nL15750605] [RTRS-LEN-CZ-PGSNsp.PR]

LEFT NARROWS GAP

The leftist opposition Social Democrats narrowed a gap behind the ruling right-wing Civic Democrats, a poll showed.

[nL15792208]

- For most recent news on Czech politics, double click on the code in brackets: [RTRS-LEN-CZ-POL]

UNICREDIT BUY

UniCredit Group has taken a 30 percent stake in privately held Czech logistics firm C.S. Cargo and the company plans eventually to float part of its share capital.

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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)) ($1=21.57 Czech Crown)

[PRAGUE/Reuters/Finance.cz]