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

To: RockyBalboa who wrote (6682)	8/15/1998 12:26:00 AM
From: Steve Fancy	Respond to of 22640

Emerging mkt players anticipate G7 move on Russia Reuters, Friday, August 14, 1998 at 17:45 By Apu Sikri NEW YORK, Aug 14 (Reuters) - Emerging market debt prices were flat to slightly lower late Friday with Russia continuing to dominate market attention. The question that loomed large over the market was whether the Group of Seven nations will work out some sort of multilateral package for Russia to finance the outstanding stock of GKOs. Investors warned that current price levels on Russia's dollar bonds are reflecting an anticipation of some such bailout. If there is no such package, "the market is going to be very disappointed from these levels and will trade back to recent lows," said Michael Casey, portfolio manager at Federated Investors. "The real big question is as to what extent another package is going to finance every investor that wants to get out," said Emilio Lamar at Columbus Advisors. "Or (will it be used to) turn around the country," he said. The dilemma now facing Russia and its G7 partners is whether to dish out funds to pay out GKO holders or to forcibly restructure that debt - an action that could further alienate international investors. Furthermore, with an increasing erosion of confidence in the rouble, the central bank is having to spend additional amounts to defend the currency, analysts said. Already, Russian central bank foreign reserves are down to about $17 billion as of last Friday, analysts said. This week alone, the central bank would have spent anywhere between $500 million to $1 billion defending the currency, these analysts said. With that kind of money being spent to support the rouble, Russia likely won't have the money to pay out on GKOs, analysts said. Moreover, there are about $1 billion in coupon payments on the dollar bonds due around December. Traders said few people want to hold short positions on Russian bonds or other emerging market debt into the weekend, given that there is the possibility on some sort of statement from the G7 countries. But next week, if no resolution is reached among the major powers on how to deal with Russia's financial crisis, emerging market debt could slide back to the lows of earlier this week, traders said. This would be about ten points lower on Russia bonds and anywhere from three to seven points lower on the securities. The emerging debt market "is in terrible shape," said Hari Hariharan, portfolio manager at Santander New World Investments. People are "clutching to any piece of news" and prices are being driven "by the muscle of the marginal player," he said. In the market, Russia's benchmark PRINs were trading late Friday at 31-3/8 and Brazil's "C" bonds <BRAZILC=RR> were dealing at 69-3/4. apu.sikri@reuters.com )) Copyright 1998, Reuters News Service

To: RockyBalboa who wrote (6682)	8/15/1998 12:28:00 AM
From: Steve Fancy	Respond to of 22640

ADR REPORT - Emerging market highlights - Aug. 14 Reuters, Friday, August 14, 1998 at 17:57 EMERGING MARKET ADRS STRONGER AMID RUSSIA FEARS NEW YORK, Aug 14 (Reuters) - Emerging market American Depositary Receipts (ADRs) were mostly higher Friday as fears remained about Russia's financial stability. Dealers said the ADRs were underpinned by a strong overnight performance of the Hong Kong exchange and a rebound of almost 14 percent in Russia's battered RTS1-Interfax index <.RTS>. But news the Hong Kong government intervened to buy stocks raised doubts about the underlying strength of the rally. "We feel that it's always going to be market bearish" to have government intervention, a trader said. "It will be very interesting to see how the Hong Kong shares do Tuesday when they open" after a holiday Monday. He added that most Hong Kong blue-chip ADRs were trading at a discount to their underlying shares. Emerging market investors were keeping an eye on Russia's shaky financial situation and the prospects Moscow will devalue the ruble. Traders said Friday's stock rally had thin volume, showing many investors were staying on the sidelines. Traders said investors were buoyed somewhat by President Bill Clinton's telephone conversation with Russian President Boris Yeltsin. A senior U.S. official said Clinton urged Yeltsin to take "decisive steps" to bolster the economy. One dealer said a devaluation was likely and could propel stocks higher once it happened. "We're trying to look at the positive side of the situation," he said. "The bad news is already priced into the market." Latin American ADRs were higher in thin trade, overshadowed by Russia and idling New York markets. The ING Barings Latin American index of leading regional stocks <.LAT> up 0.52 point, or 0.39 percent, to 134.16 points. Here are some highlights among emerging market ADRs: * * * BRAZIL - Recently privatized telephone company Telebras SA (SAO:TEL_.P) (NYSE:TBR) was up 1/4 to 96-5/8, easing off highs. Telebras was among volume leaders on the New York Stock Exchange. * * * RUSSIA - Prospects for a devaluation helped oil ADRs. The companies are oriented toward exports and a weaker ruble would make Russian exports cheaper. AO Tatneft (NYSE:TNT) <TATN.RTS> rose 4/16 to 4-7/16. LUKoil <LKOH.RTS>, which trades over-the-counter, was up at 22-1/2 bid and 23-1/2 offer from a Thursday close of 21 bid and 22 offer. LUKoil had reached an intraday high of 25 before easing. Mobile telephone company Vimpel-Communications (NYSE:VIP) was up 1-10/16 to 28-1/16. * * * CHINA - Shandong Huaneng Power Development Co. Ltd. (NYSE:SH) rose 6/16, or 9.52 percent, to 4-5/16 in light trade. China Eastern Airlines Corp. Ltd. (NYSE:CEA) was up 9/16, or 9.28 percent, to 6-5/8. Both ADRs were among percentage-gain leaders on the New York Stock Exchange. Copyright 1998, Reuters News Service

To: RockyBalboa who wrote (6682)	8/15/1998 12:33:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil under fire for relaxing environmental law Reuters, Friday, August 14, 1998 at 18:46 (Adds Greenpeace comments paras 10, 11) By William Schomberg BRASILIA, Aug 14 (Reuters) - The Brazilian government has outraged environmentalists this week by relaxing a law introduced with fanfare six months ago to tackle pollution, illegal logging in the Amazon and an array of other environmental offenses. "This is a coup d'etat against Brazil's environment and a frontal attack on democracy," said Stephan Schwartzman, senior scientist at the Environmental Defense Fund in Washington. In February, President Fernando Henrique Cardoso signed a bill that introduced new fines of up to $50 million for environmental crimes. The bill was first sent to Congress seven years ago amid international concern over deforestation in the Amazon but was held up due to widespread opposition from business lobbies. "Given the immense responsibility that we have to humanity ... we are obliged to put into practice everything this law sets down," Cardoso told a gathering of diplomats and environmentalists after signing the bill into law. But a presidential decree published this week lets companies and individuals breaking the law avoid paying the fines on condition they sign agreements by the end of the year to take steps to clean up their operations. The fines may be waived for between 90 days and five years, with that grace period renewable for up to five more years. "With a stroke of a pen, Cardoso reversed Brazil's greatest environmental advance in the 1990s ..., declaring a 10-year moratorium on environmental law enforcement," Schwartzman said in a statement. "What this really does is give yet more time to companies to keep on breaking the law," said Adriana Ramos who monitors government policy for the independent Socio-Environmental Institute (ISA) in Brasilia. The head of Greenpeace in Brazil said companies needed only three years at most to correct any pollution problem. "This is a move that big industry, basically in steel and petrochemicals, has been pushing for because they don't want to invest in cleaner output," said Roberto Kishinami. Government officials denied the decree represented a moratorium and sought instead to give polluting firms a transition period to upgrade factories without being penalized. "It is clearly better to establish a timetable and a program for companies to make the necessary changes than to be in an all-or-nothing situation," said Vicente Gomes da Silva, the Environment Ministry's legal adviser. He said the government feared firms faced with fines might shut down -- adding to already record levels of unemployment -- or embark on lengthy court cases to avoid payment. But even a government-allied lawmaker involved in efforts to get the bill approved in Congress this year said the decree would delay the effective introduction of the legislation. "I agree that a transition period is necessary, but what is written in the decree unfortunately means the law will only be applied in five years time at the earliest," Luciano Pizzato, a member of the pro-business Liberal Front Party said. Environmental campaigners say the new degree lets polluters off the hook. Ramos said calculations from private industry groups showed as much as 20 percent of industrial output in developed Sao Paulo state was produced in breach of environmental laws. "There have been laws on pollution since the 1970s, yet even now the polluters say they want more time," she said. "Basically, anybody who has broken the law can now promise to change their ways and escape fines for up to 10 years." On Wednesday, the left-wing Workers Party (PT), the main opposition to Cardoso's government, and the small Green Party filed suit in Brazil's supreme court, arguing the decree flew in the face of the country's constitution. "It's absurd," said PT lawmaker Gilney Vianna, a long-time campaigner against deforestation in the Amazon. "It might be 20 percent in Sao Paulo but the vast majority of companies in the Amazon break environmental law and the government has just given them its approval." Copyright 1998, Reuters News Service

To: RockyBalboa who wrote (6682)	8/15/1998 5:14:00 AM
From: chirodoc	Read Replies (1) \| Respond to of 22640

lula is there every election saying the same thing each year people think he could be elected and he isnt look at him as pat buchanan of the brazilian left brazilians will never elect him, especially now that cardoso is playing politics brazilians do not in the end respect an uneducated working class boy--cardoso is a combination of maggie thatcher and ronald reagan--they like the reagan and hate the thatcher after cardoso is reelected you will see more fiscal conservatism in brazil--count on it--he is a dyed in the wool conservative i will buy a little bit of TBH every couple weeks as this could be a sustained correction, but no doubt in my mind that lula will lose and this will be a good longterm investment good luck curtis