Czech Republic - Factors To Watch on Feb 19

...

NO ECONOMIC DATA DUE OUT

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

[RTRS-LEN-CZ-ECI]

POLL: TELEFONICA EARNINGS TO RISE

Telefonica O2 Czech Republic is seen posting a 33 percent rise in net profit for 2006 on falling depreciation and one-off costs while mobile and data growth offset declines in the fixed-line business.

[nL16459564] [RTRS-LEN-CZ-SPTTsp.PR]

TRADE IDEA: BET ON CURVE FLATTENING

Investors could benefit from positioning for a possible flattening of the Czech debt yield curve driven by an upward correction of front-end rates as inflation picks up, the Royal Bank of Scotland said.

[nL16905561] [RTRS-LEN-CZ-GVD]

The Czech crown held in a tight range versus the euro on Friday, as a record-high yield discount versus major currencies stopped it tracking the modestly firming tone of its central European peers.

[nL1626374]

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

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].

SKODA TO PRODUCE INEXPENSIVE CAR

Skoda Auto, a unit of Volkswagen , is considering producing a small inexpensive vehicle for European and developing markets such as China, India and Russia, writes the daily Hospodarske Noviny (page 1), quoting the carmaker's chief Detlef Wittig. He said the car could cost 7,000 to 8,000 euros.

[RTRS-LEN-CZ-VOWG.DE]

MERKEL URGES MOVEMENT ON EU TREATY

German Chancellor Angela Merkel urged sceptical countries to get behind a revival of the EU's stalled constitution, saying rules governing the 27-nation bloc left it weak and incapable of action.

[nL16228713] [RTRS-LEN-CZ-EU]

GERMANY CHIDES U.S. MOVE ON ANTI-MISSILE SHIELD

German Foreign Minister Frank-Walter Steinmeier criticised the United States on Sunday in a rare public rebuke for failing to inform Russia of an offer to build an anti-missile base on Polish soil.

[nL18138926]

Poland will reply within two weeks to a U.S. offer to build an anti-missile base on Polish soil, new Defence Minister Aleksander Szczyglo said on Sunday.

[nL18188692]

- For news on the anti-missile shield base to be built in Poland and the Czech Republic, double click on [RTRS-LEN-DIP-CZ-US]

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

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]