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

To: Steve Fancy who wrote (1795)	4/20/1998 10:10:00 PM
From: Steve Fancy	Respond to of 22640

BRAZIL CONGRESS WEEK-Holiday slims Congress agenda Reuters, Monday, April 20, 1998 at 20:04 By Joelle Diderich BRASILIA, April 20 (Reuters) - The Brazilian Congress faces a light agenda until midweek, with the funeral of former Communications Minister Sergio Motta set for Monday and a public holiday the following day. Many senior politicians were flying to Sao Paulo to attend the funeral of the formidable politician, who was President Fernando Henrique Cardoso's closest political ally and chief articulator in Congress. Motta died Sunday at the age of 57. Political analysts said his loss was a blow to Cardoso six months ahead of a general election. They predicted the government would be at a loss to replace the only man who appeared capable of rallying its fractious allies for key votes. "Sergio Motta will leave a huge gap in Brazil's political and administrative life. His function was extremely important," said Deputy Inocencio Oliveira, the lower house leader of the government-allied Liberal Front Party (PFL). In an interview with Globo News television, Oliveira recalled that Motta would meet with senior government allies on the eve of important votes to clear up any disagreements and secure their backing. "Sergio Motta was always concerned with calling and intervening so that voting should be as smooth as possible," Oliveira said. Most politicians declined to speculate on the powerful minister's replacement within the Social Democratic Party (PSDB), fearful of engaging in an unseemly positioning for power while Cardoso mourned the loss of a friend. The president has declared three days of mourning for Motta, a ceremonial gesture that should not alter the agenda in the Chamber of Deputies, a congressional spokesman said. The lower house of Congress has not scheduled any votes until Wednesday, as many deputies were expected to take advantage of the Tiradentes' Day public holiday on Tuesday to remain in their constituencies. Voting on key amendments to the government's social security bill has been postponed until April 28, when the government has a better chance of rallying the support it needs to kill two proposed amendments that threaten the spirit of the bill. The proposals would do away with provisions for minimum retirement ages and allow civil servants to continue retiring with pensions as high as their salaries. The Senate is due to vote on a controversial constitutional amendment that would eliminate the power of states to offer local tax incentives to attract investment. The reform has been stuck in Congress for two years amid strong opposition from state governors. joelle.diderich@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (1795)	4/20/1998 10:22:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

WEEKAHEAD - Latam shares seen in cautious advance Reuters, Monday, April 20, 1998 at 20:46 SAO PAULO, April 20 (Reuters) - Latin American stocks were generally expected to rise this week, with share prices buoyed by domestic fund buying, though fluctuations on Wall Street and local concerns could limit any advances, analysts said. In Argentina, stocks were seen climbing, albeit modestly, extending gains struck Friday on the back of high liquidity levels by local funds. "Rising liquidity and some delayed purchase decisions should give the market new support," the Tavelli brokerage said in a research note. Analysts said the market would take an important step this week if the Merval <.MERV> stock index could break key resistance at the 720-point level. Last week the Merval rose 4.9 percent to 693.22 points. Brazilian stocks were expected to edge up this week while investors weigh the political impact of the death of Sergio Motta, the powerful communications minister, and wait for further news on the country's telecommunications privatization plan. A close ally of President Fernando Henrique Cardoso, Motta died late Sunday of respiratory failure after being hospitalized for 12 days with a pulmonary infection worsened by a chronic lung disease. Analysts said Cardoso lost his most influential articulator in Congress. Motta's death came just six months before the national elections in which Cardoso plans to run for a second four-year term. "The great question is how difficult will be for Cardoso to live without him," a senior trader said. Another issue that is being closely watched by the market is the sale of the federal telecommunications holding company, Telebras (SAO:TEL_.P), the bolsa's benchmark issue. The federal government plans to privatize the Telebras system in June or July. "The bolsa lacks further enthusiasm about the privatization of Telebras to pick up steam," said Bruno Pena, equities desk manager at Banco Omega, Venezuelan stocks were seen picking as bargain hunters step in to buy blue-chip stocks, which are considered oversold. Already reeling because of the impact of low oil prices on the economy, Caracas equities were hit hard last week by news that Hugo Chavez, leader of a 1992 coup attempt, had taken the lead in public opinion polls for December's presidential elections. Investors fear that Chavez would reverse market-led economic policies if elected. The market's 15-share <.IBC> index shed 6.1 percent last month and has fallen about 25 percent this year in dollar terms. Brokers expected any buying interest to be focused on the most liquid stocks, such as benchmark Electricidad de Caracas (VEN:EDC) and telephone company CANTV (VEN:TDV.D) (NYSE:VNT), which have been hit particularly hard amid the weak investor confidence. In Chile, stocks were seen treading water as investors wait for brighter news on first-quarter earnings and government measures to make the bourse more attractive to foreign investors. "The market is very depressed. Institutional and retail investors are selling and there is no liquidity," said Eugenio Claro, a partner at brokerage Munita y Cruzat SA. "As long as authorities do not remove obstacles to foreign investment, the bourse is going to be down," he said, referring to the capital inflow controls that hinder arbitrage. Compounding the situation is the depreciating peso, which is thought to have eroded first-quarter earnings, traders said. The IPSA <.IPSA> leading index fell 4.49 percent last week to end on Friday at 99.41 points. fatima.santos@reuters.com)) Copyright 1998, Reuters News Service