By Leos Rousek
TODAY'S CALENDAR
Local/GMT
0900/0700 Czech July business confidence
1130/0930 Hungary T-Bond auctions
1530/1330 Czech, Croatian fin mins meeting
N/A Czech govt on investment incentive
for South Korean Mobis
The Czech government is due to approve an investment incentive
for car parts makers Hyundai Mobis Co. Ltd. (012330.SE) which is
planning to open production facility in the north east of the
country.
Mobis, which supplies Hyundai Motor Co. Ltd. (H005380.SE) and
Kia Motors Corp. (000270.SE), is key for the expansion of the two
South Korean car makers' existing production plants in the Czech
Republic and Slovakia respectively.
According to Czech media reports, the car parts maker is likely
spend 90 million euros ($121 million) to open a production facility
near both Hyundai and Kia plants. Mobis officials couldn't be
reached immediately for comment.
Also in Prague, Czech and Croatian finance ministers are due to
meet to discuss the experience of the government in Zagreb on value
added tax declarations by businesses. The Czech government is
considering whether to increase its monitoring of VAT receipts as
it seeks to stem tax evasion.
Hungary's sovereign debt management agency AKK Zrt will auction
a total of 65 billion forints ($284 million) in four-, five- and
11-year Treasury bonds. Demand is expected to be strong due to the
Hungarian central bank's incentives for commercial banks to buy
more government debt.
The latest auction will be the first offering by the agency
since the central bank's announcement on Tuesday that it has ended
its two-year long easing cycle and plans not to touch its main
policy rate, currently at 2.10%, until the end of 2015.
FOREX
EUR/CZK
Latest 0250 GMT 27.444-70
Previous close 27.437-80
%Chg -0.01
EUR/HUF
Latest 0250 GMT 307.16-68
Previous close 307.06-74
% Chg +0.01
EUR/PLN
Latest 0250 GMT 4.1336-78
Previous 2150 close 4.1333-82
% Chg 0.00
FIXED INCOME
Hungary
Wed Tue
3 yrs 3.04% 3.06%
5 yrs 3.34% 3.36%
10yrs 4.15% 4.18%
Poland
Wed Tue
3 yrs 2.41% 2.47%
5 yrs 2.88% 2.94%
10yrs 3.28% 3.33%
Czech Republic
Wed Tue
3 yrs 0.23% 0.24%
5 yrs 0.52% 0.52%
10yrs 1.42% 1.43%
STOCKS
WIG 20
2,402.93-8.68-0.36%
BUX
18,004.51-100.35-0.55%
PX
951.28-1.58-0.17%
OTHER NEWS
POLAND: Poland's financial regulator, the KNF, is ordering
private equity firm Abris Capital Partners to sell a bank it owns
by the end of this year. The regulator alleges that the private
equity firm failed to properly "consult" the KNF when it appointed
a new chief executive officer at FM Bank PBP last year. In the
regulator's eyes, that's enough to force a sale.
HUNGARY: Hungary's central bank governor has said the
institution was done cutting interest rates, but analysts aren't so
sure.
The central bank on Tuesday lowered its benchmark rate by 0.2
percentage point to 2.10%, a deeper cut than expected and the
latest in a series of monthly cuts since August 2012, when the rate
was 7%. Gov. Gyorgy Matolcsy followed up by announcing there
wouldn't be any more cuts and the rate wouldn't change until at
least the end of 2015.
BULGARIA: Bulgaria's Prime Minister Plamen Oresharski late
Wednesday submitted his resignation to parliament, a move that will
lead to his entire cabinet stepping down after a tumultuous year
marked by public protests, a banking crisis and confrontations with
the European Union.
-Margit Feher in Budapest contributed to this article.
Write to Leos Rousek at leos.rousek@wsj.com
Go to http://blogs.wsj.com/emergingeurope for the new WSJ and
Dow Jones blog on Central and Eastern Europe, covering business,
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