PRAGUE, July 1 (Reuters) - Here are news stories, press

reports and events to watch which may affect Czech financial

markets on Wednesday:

ALL TIMES GMT (Czech Republic: GMT + 2 hours)

=========================ECONOMIC DATA=========================

Purchasing Managers' Index (PMI) for June due out at 0730

GMT.

End-June budget balance data.

Real-time economic data releases....................

Previous stories on Czech data.............

Overview of economic data and forecasts..........

Updates on CEE currencies.............................

=========================EVENTS=================================

PRAGUE - Prime Minister Jan Fischer to meet Czech central

bank Governor Zdenek Tuma to discuss current economic issues.

News briefing at 1200 GMT.

Related news:

=======================MORNING NEWS=============================

ENERGY ASSETS DEAL: International Power PLC will

sell its Czech business to Czech-Slovak private equity group

J&T. The British group said the value of the transaction was

738.3 million pounds ($1.23 billion), including 157.5 million

pounds in debt.

Story: Related news:

=========================TOP NEWS===============================

CEE FX UP: Central Europe's currencies rallied on Tuesday,

despite mixed economic data from the region, as improving

economic sentiment on core markets boosted appetite for riskier

emerging market assets.

Story: Related news:

OUTPUT PLUGES: Czech industrial output continued to plunge

in May and new orders fell sharply, casting fresh doubt on hopes

the country's key sector could turn around soon.

Story: Related news:

CRISIS IN CEE: A break in the economic turmoil in emerging

Europe has let the International Monetary Fund wield more stick

on its demands for belt-tightening and shift away from the more

merciful line it took at the start of the crisis.

Story: Related news:

PKN ORLEN: Czech chemicals group Agrofert won over 77

million euros in damages from Polish oil firm PKN Orlen over a failed deal, Agrofert owner Andrej Babis said

on Tuesday.

Story: Related news:

===========================OTHER NEWS==========================

CZECH TELEFONICA: Telefonica O2 Czech Republic

board of directors agreed to raise base capital of its Slovak

subsidiary to 200 million euros from 49.79 million.

Related news:

---------------------- MARKET SNAPSHOT ------------------------

Index/Crown Currency Latest Prev Pct change Pct change

close on day in 2008

Czech Equities 0,000.0 0,898.2 +0.00 -100.00

vs Euro 25.930 26.440 +1.97 +2.20

vs Dollar 18.480 18.319 -0.49 -1.30

U.S. Equities 08,447 08,529 -0.97 -36.32

Pvs close or current levels vs prior domestic close at 1500

=========================PRESS DIGEST===========================

FLOOD DAMANGE: Damage from flooding which is estimated worth

at 5.6 billion Czech crowns ($305.3 million) will be covered

from loans, reserves and possibly a bond issue, Finance Minister

Eduard Janota said.

Pravo, page 2

PKN ORLEN: Poland's PKN Orlen chief executive

Jacek Krawiec denied the company ever had a plan to swap the

Benzina petrol station chain for oil drilling assets. He said

the company wants to expand the petrol station chain in the

Czech Republic.

Hospodarske Noviny, page 16

Reuters has not verified the media reports, nor does it

vouch for their accuracy.

For Instant Views of key economic data click on

For summary of economic data and forecasts

For diary of forthcoming Czech events

For calendar of east European economic indicators

TOP NEWS -- Emerging markets

TOP NEWS -- Convergence watch

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: Jan Lopatka on +420 224 190 474;

fax: +420 224 229 935

E-mail: prague.newsroom@reuters.com

(Compiled by Jana Mlcochova)

($1=18.34 Czech Crown) ($1=.6029 British Pound) Keywords: CZECH FACTORS/

(prague.newsroom@thomsonreuters.com; Reuters Messaging: jana.mlcochova.reuters.com@reuters.net; +420-224 190 479)

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