Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (1763)	4/17/1998 5:50:00 PM
From: DMaA	Respond to of 22640

Are you an economist in real life? Have a good weekend.

To: Steve Fancy who wrote (1763)	4/17/1998 6:04:00 PM
From: Steve Fancy	Respond to of 22640

FOCUS - Brazil reserves soar past pre-crisis level Reuters, Friday, April 17, 1998 at 17:33 By John Miller SAO PAULO, April 17 (Reuters) - Brazil's hard currency reserves soared past pre-Asian crisis levels in March on a deluge of short-term dollar flows, but economists said reserves would flatten out in coming months. The Central Bank reported Friday that reserves rose to $67.7 billion in March, up a whopping $10 billion from February. While April should post a steady gain in reserves, they should level off in May as short-term inflows decline, economists said. "This month we believe will end with reserves at about $73 billion, but then we should not see such incredible inflows," said Carlos Kawall, chief economist at Citibank in Brazil. Kawall expected Brazil to close 1998 with reserves of about $70 billion. The world investment community pays attention to Brazil's foreign reserves because they reflect confidence in the government's ability to maintain its strong forex policy. Brazil's reserves stood at about $61 billion in September, the month before a number of Asian currencies came under speculative attack, rocking emerging markets worldwide. Reserves sank to just $51 billion in a matter of days in late October and early November as the Central Bank tore through its dollars to support the local currency. The nation also jacked up interest rates to 43 percent annually from 20.7 percent during the crisis to back its embattled currency. Since then, rates have fallen steadily, but they are still very high, especially when the country is expected to post inflation of under 4.0 percent this year. In fact, economists said most of Brazil's dollar gain in March represented a gush of funds entering the country to take advantage of high rates, which were an annual 28 percent at the time. Rates have already fallen to 23.25 percent, which should cause short-term flows to dwindle in coming months, economists said. Cesar Hubner, economist at investment bank Fonte Cindam, said the quality of foreign reserves would begin to improve as foreign direct investment grows and short-term speculative capital tapers off. Altamir Lopes, head of the economics department at the Central Bank, echoed Hubner's thoughts at a Brasilia news conference following the release of March reserves. "We are improving the quality of capital which is financing our current account deficit," Lopes said. He said foreign direct investment in the January-to-March period was already financing 43.7 percent of Brazil's current account deficit. The Central Bank said on Friday that the current account deficit widened slightly to 4.09 percent of gross domestic product in the 12 months to March, from a revised 4.07 percent of GDP in the year to February. Lopes said Brazil's current account gap, however, was on the mend and should end 1998 at a much lower level than the 4.20 percent of GDP gap in 1997, mainly due to a lower trade deficit. Economists agree. Citibank's Kawall sees the current account gap ending the year at 3.76 percent of GDP. A Reuter survey of economists forecasts a 3.83 percent of GDP current account gap in 1998. That survey is available by clicking on <BRAAN>. john.miller@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (1763)	4/17/1998 6:07:00 PM
From: Steve Fancy	Respond to of 22640

Brazil alters Amazon cellular sale bid specs-paper Reuters, Friday, April 17, 1998 at 17:14 SAO PAULO, April 17 (Reuters) - The Brazilian government is drawing up new bid specifications for the sell-off of the Band B cellular phone license in the Amazon region after it was failing to attract bidders, a local daily reported Friday. The National Telecommunications Agency (ANATEL) was planning to allow consortia that have already won other Band B concessions to participate in the privatization auction for Area No.8, Gazeta Mercantil newspaper said. ANATEL was also preparing to reduce the minimum bid price of 200 million reais to lure investors, the paper reported. ANATEL officials were not immediately available to comment on the report. Area No.8 was attracting no bidders due to the vast area it covers and the sparse population in the region, analysts have said. Americel (SAO:AMC), which has already won the Area No.7 concession, and Inepar (SAO:INE), which won Area No.5, have lately been expressing their interests in bidding for No.8, Gazeta quoted ANATEL officials as saying. No.8 covers Brazil's northern states of Amazonas, Amapa, Roraima, Para and Maranhao. A revised bid specification may be released by May 27, Gazeta said. Copyright 1998, Reuters News Service ================================= Slump in March Brazil FDI a one-off, cenbank says By Joelle Diderich BRASILIA, April 17 (Reuters) - Foreign direct investment in Brazil slumped in March, but the drop was due to a one-off financial deal, and a spate of privatizations should attract foreign capital in the next few months, the Central Bank said on Friday. biz.yahoo.com

To: Steve Fancy who wrote (1763)	4/17/1998 6:13:00 PM
From: Steve Fancy	Respond to of 22640

ADR REPORT - Emerging market highlights - April 17 Reuters, Friday, April 17, 1998 at 15:21 BRAZIL'S TELEBRAS FOLLOWS LOCAL MARKET LOWER NEW YORK, April 17 (Reuters) - Brazilian telecommunications behemoth Telebras SA (SAO:TEL_.P) (NYSE:TBR) was trading lower in a mild afternoon session, following the local stock market's trend downward, traders said Friday. Telebras was 1-3/16 lower at 126-9/16 on the New York Stock Exchange as stocks on the Brazilian market were lower amid speculative trading ahead of the options expiry on Monday. In addition, investors were apparently wary about the behemoth holding its weight in the market in light of its pre-privatization break-up. One dealer said investors were no longer fazed by the declining health of the country's communications minister. Sergio Motta had reportedly stabilized after suffering from a high fever and respiratory trouble. "I don't think the market cares much about it now," he said.