Thanks Mayer,
There are several relevant articles in todays edition
including one about Ericsson's plans and positive
views about the market.
Victor
Ericsson opens new plant in Sao Paulo
Sao Paulo, 03 - Ericsson, the Swedish-owned telecom, will open today its new
radiobase station plant in the state of Sao Paulo. The new plant will manage both the
analog and digital mobile telephone network. The Swedish multinational invested
US$15m in the building of its new unit. According to Ericsson, the plant should meet the
demand for cellular phones of a clientele expected to grow to 8.2m users until the end
of 1998 from the current 2.9m. The new plant will create 100 new direct jobs and
should produce 2,000 radiobase units a year.
Santander raises Brazilian market outlook to positive
Sao Paulo, 03 - A report issued by the Spanish-owned investment bank Santander
raised Brazilian short-term outlook to positive from stable. According to S‚rgio
Goldman, an analyst at the bank, this is due to three main factors, such as "the
diminishing Asian volatility, the resurgence of capital flows and the oil price boost".
According to Santander's report, some profit-taking is expected to occur, "given the
Ibovespa's 14.9% jump in US dollar terms in 1998", leading to a 5% to 8% market
correction. "Growth is much stronger than the market had expected," Goldman wrote.
According to the analyst, reserves -- which hit a record US$64bn -- the fall in interest
rates to 43% annually and projections of a new reduction, this time to 24%, scheduled
to occur in the next National Monetary Council (CMN) meeting, low inflation in the first
quarter and, finally, the ongoing privatizations are all seen by the bank as bringing back
"positive market sentiments".
The report concludes investors should "begin adding private sector stocks to their
portfolios as "the reduction of interest rates and the economic pickup expected in the
second quarter should maintain the momentum in private sector stocks". (By Paulo
Monteiro and Marcos Viesi)
Victor |
