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CPI grew sharply more than market expected.
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Consumer price index in Czech Republic increased by 5% in November. Market expected 4,5%. Mainly lifted by food inflation. For beginning of 2008 expectations are bit higher now (CPI 6%). Recently Czech National Bank - CNB- increased main interest rate benchmark to 3,5%. With last released CPI data we are again out of inflation targets followed by CNB. Inflation target is 3% with range +/- 1%. On the other side Czech currency Koruna is at strongest level against EUR, USD and therefore any other interest rate hike could hit dramatically Czech export.
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New Issues - Developer Group IPO VGP.
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Today we've received official announcement about new developer group VGP going IPO sometimes around 7th December this year. It is dual listing at Czech Stock Exchange and Brussels Stock Exchange (Euronext Brussels). VGP would like to gain 50 millions EUR. Company business is similar to already listed developer groups ORCO and ECM. But VGP is doing business mainly in industrial properties.
Well, is it right time to go IPO? ORCO and ECM lost a lot during this year mainly because of negative worldwide sentiment. Also last issue of securities (used car seller AAA) is consider as a unsuccessful.
W...
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