1. Koruna Extends Gains Against Euro, Climbs to Highest Since 2008
(http://www.businessweek.com/news/2010-07-28/koruna-extends-gains-against-euro-climbs-to-highest-since-2008.html)

High-level overview of article:
The Czech koruna extended its rally to the strongest level against the euro since November 2008, boosted by automatic purchase orders from investors who previously bet on the koruna weakening. It’s been the world’s best performer in July, having gained 3.7 percent against the euro.

Our take:
We expected this to occur but a little more gradually than in one month. It should continue to climb but at a much slower rate for the rest of the year.


2. Loss of interest from investors
(http://www.praguepost.com/business/5202-loss-of-interest-from-investors.html)

High-level overview of article:
Foreign direct investment (FDI), one of the key economic indicators for the Czech Republic, plummeted more than 50 percent last year, but analysts have been quick to defend the buoyancy of the Czech economy and banking system and say that the decline is short-term and expected.

Our take:
Movements from the peak or the trough always seem extreme. The starting point has to be compared.


3. ČNB raises estimate of 2010 GDP growth to 1.6%
(http://www.financninoviny.cz/english/zpravy/cnb-raises-estimate-of-czech-2010-gdp-growth-to-1-6-pct/512045)

High-level overview of article:
The Czech National Bank (CNB) raised its estimate of Czech economic growth in 2010 to 1.6 percent in its latest forecast from the previous 1.4 percent, CNB governor Miroslav Singer said at a press conference today.

Our take:
Slowly but surely.


4. Four largest banks in ČR raise profit to CZK 21bn in H1
(http://praguemonitor.com/2010/08/06/four-largest-banks-%C4%8Dr-raise-profit-czk-21bn-h1)

High-level overview of article:
The four largest banks in the Czech Republic made aggregate net profit of Kc21bn in the first half of 2010, a year-on-year growth of 9.2 percent, the banks’ first-half results have shown.

Our take:
Banks: ‘We were mistaken for gouging everyone during the crisis under the guise of expected loan defaults, but oh well.. by the way, profits up again.’


5. Analysts: Unemployment in ČR grows to 8.7% in July
(http://praguemonitor.com/2010/08/06/analysts-unemployment-%C4%8Dr-grows-87-july)

High-level overview of article:
Unemployment in the Czech Republic grew to 8.7 percent in July from 8.5 percent a month earlier mainly owing to arrival of new school leavers on the labour market, analysts have told CTK in a poll.

Our take:
Still below the much feared 10%. Definitely will not be getting there.


6. Housing construction fell sharply. Number of new dwellings fell by a third
(http://ekonomika.ihned.cz/c1-45490070-bytova-vystavba-rapidne-propadla-pocet-nove-zahajenych-bytu-klesl-o-tretinu)

High-level overview of article:
Domestic construction industry continues to decrease. Construction output compared to the same month the previous year in June fell 4.7 percent against the previous month by 0.4 percent. Said yesterday that the Czech Statistical Office.

Most housing construction dropped a home, opened the year 31.8 percent fewer buildings. Particularly striking is the decline in housing construction in residential buildings by 45.9 percent, the decline in family homes is “only” 19.2 percent.

Our take:
We are on the down side of the wave. Expect a good crunch as demand over-strips dwindling supply.