The CNB has signalled the possibility of the first government bond purchase programme as part of the central bank’s toolkit to maintain liquidity in the financial system. We assume that the reason for triggering CZGB purchases would be a sudden sell-off by foreign investors caused by global market stress or a further widening of the public finance amid shallow capacity of the CZGB market. Quantitative easing would thus lead to restructuring of CZGBs holders, a bull flattening of the yield curve and a weaker CZK in the medium term. However, the form that the purchases would take and the legislative framework remain uncertain. At the same time, the need to support liquidity and the CZGB market has eased considerably for now, following successful auctions by the MinFin over the last week.

The CNB has signalled the possibility of the first government bond purchase programme as part of the central bank’s toolkit to maintain liquidity in the financial system. We assume that the reason for triggering CZGB purchases would be a sudden sell-off by foreign investors caused by global market stress or a further widening of the public finance amid shallow capacity of the CZGB market. Quantitative easing would thus lead to restructuring of CZGBs holders, a bull flattening of the yield curve and a weaker CZK in the medium term. However, the form that the purchases would take and the legislative framework remain uncertain. At the same time, the need to support liquidity and the CZGB market has eased considerably for now, following successful auctions by the MinFin over the last week.

Avast shares lost 9.3%(CZK138) yesterday (28 January 2020). This was because Avast sells browser data. This was to be done through the Avast Jumpshot subsidiary. Customers gave their consent, and Jumshot processed the data and sold it to third parties. The data was anonymous, so it was not personal information such as email addresses or names.

Avast shares lost 9.3%(CZK138) yesterday (28 January 2020). This was because Avast sells browser data. This was to be done through the Avast Jumpshot subsidiary. Customers gave their consent, and Jumshot processed the data and sold it to third parties. The data was anonymous, so it was not personal information such as email addresses or names.

We believe this is not new information. This has been on the market since last year, when it was first discussed. In addition, according to the statement, Avast has taken action and since last December has completely abolished the use of data for any purpose other than security applications, including sharing with its subsidiary Jumpshot. This means that since December, browser data is not used / sold. From our point of view, the issue is resolved and will not be repeated.

Impact on forecasts, target price and recommendations: We do not think this report affects the fundamentals of the company, which in our view remain unchanged. Moreover, the impact on the company is rather limited. Jumpshot's revenue is around 5% of Avast's total revenue. We leave the target price and Buy recommendation intact.

In our opinion, the investors' reaction is exaggerated. However, given the potential reputational risks, negative sentiment could still persist.