Czech Republic - Factors To Watch on May 4

                                
 PRAGUE, May 4 (Reuters) - Here are news stories, press
reports and events to watch which may affect Czech financial
markets on Tuesday.
                                
 ALL TIMES GMT (Czech Republic: GMT + 2 hours)

=========================ECONOMIC DATA=========================
                                
 Real-time economic data releases....................<ECONCZ>
                                
 Previous stories on Czech data.............[CZ-RTRS-LEN-ECI]
                                
 Overview of economic data and forecasts..........<CZ/ECON15>
                                
 Updates on CEE currencies............................[CEE/]
 
==========================TOP NEWS============================
                                
 GOVT MAKES PLAN TO SAVE AIRLINE: The Czech government
approved on Monday a plan aimed to save the struggling Czech
Airlines, through focus on core business and reduction of the
fleet and network by up to 30 percent over the next three years.
                                
 Story: [ID:nLDE6421KZ] Related news: [RTRS-LEN-CZ-DRV]
                                
 
                                
 POWER PRICES RISE: Czech power rose across the curve on
Monday, tracking a rise in the bordering German market as carbon
prices strengthened and the Greek bail-out raised hopes for a
more stable economy.
                                
 Story: [ID:nLDE642119] Related news: [RTRS-LEN-CZ-DRV]
                                
 
                                
 RETAIL SALES LIKELY ROSE IN MARCH: Retail sales <CZRSLY=ECI>
are expected to eke out the first expansion after 17 consecutive
months of decline, thanks to a pick up in car and durable goods
sales, and a relatively low comparative base.
                                
 Story: [ID:nLDE6420YU] Related news: [RTRS-LEN-CZ-ECI]
                                
 
                                
 BUDGET GAP JUMPS IN APRIL: The Czech central state budget
gap jumped to 78.23 billion crowns ($4.09 billion) at the end of
April, nearly half of its full-year target, the Finance Ministry
said on Monday.
                                
 Story: [ID:nLDE6420VD] Related news: [RTRS-LEN-CZ-GVD]
                                
 
                                
 2010 BUDGET NEEDS CUTS: Czech Finance Minister Eduard Janota
said on Monday the government would need to find up to 16
billion crowns ($837.2 million) in further savings this year to
reach the 2010 budget deficit target of 5.3 percent of gross
domestic product.
                                
 Story: [ID:nPRG004085] Related news: [RTRS-LEN-CZ-DBT]
                                
 
                                
 PMI AT ITS HIGHEST IN MORE THAN 2 YRS: The Czech Purchasing
Managers' Index (PMI) rose to its highest mark since March 2008,
propelled by a record rise in new orders, while Hungary's PMI
dropped in April, surveys showed on Monday.
                                
 Instant View:[ID:nLDE6420CQ] Related news: [RTRS-LEN-CZ-PMI]
                                
 Story: [ID:nLDE6420CQ]
 ---------------------- MARKET SNAPSHOT ------------------------
 Index/Crown Currency  Latest    Prev    Pct change   Pct change
                                
                              close   on day       in 2010
 Czech Equities <.PX>   1282,6   1282,6    0,52       14,79
vs Euro   <EURCZK=>    25,541    25,546    0,02       2,95
vs Dollar    <CZK=>    19,384     19,388   0,02      -5,48
 U.S. Equities <.DJI>  11151,83  11008,61  1,3        6,94
 Pvs close or current levels vs prior domestic close at 1500 GMT

==========================PRESS DIGEST========================
                                
 ODS SUPPORT SHRINKS IN PRAGUE BUT THE RIGHT LEADS: The
leading rightist party Civic Democrats would win a backing of
23.5 percent of voters in the capital Prague, much less than the
48.3 percent it got in the previous general election four years
ago, a poll by the STEM and SC&C agencies showed. A newly formed
conservative party TOP09 would win 19.5 percent of the votes in
Prague, same as the leading leftist party the Social Democrats.
                                
 Pravo, page 1
                                
 
                                
 POSSIBLE COALITION: A new centrist party Public Affairs
(VV), which is likely to win enough votes in the May election to
qualify for parliamentary seats, may be willing to form a
coalition with the main leftist party the Social Democrats, VV's
leader Radek John said. But that would only be possible if Jiri
Paroubek was not the Social Democrats chairman.
                                
 Pravo, page 2
                                
 
                                
 NON PERFORMING LOANS: The volume of corporate non-performing
loans rose to 8.25 percent of overall loans in the first quarter
of 2010 from 7.85 percent in the last three months of 2009.
Household non-performing loans grew to 4.4 percent from 3.76
percent in the same period, Czech central bank data showed.
                                
 Hospodarske Noviny, page 19

                                
 Reuters has not verified the media reports, nor does it
vouch for their accuracy.
                                
 
                                
 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: Jan Lopatka on +420 224 190 474;
fax: +420 224 229 935
                                
 (Compiled by Jana Mlcochova)
                                
 E-mail: prague.newsroom@reuters.com