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

To: Steve Fancy who wrote (6767)	8/17/1998 4:20:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil Central Bank: Too Early To Evaluate Russia Measures Dow Jones Newswires SAO PAULO -- Brazilian Central Bank director of international affairs, Demosthenes de Pinho Neto, said Monday that it is too early to evaluate the measures taken by Russia to stabilize its economy, the Estado news agency reported. Through the central bank's press office, Pinho Neto said that to have a better picture of the Russian situation he would need more details about the restructuring of the country's debt. Russia on Monday cut the lower limit for the ruble (RUR) by 34% to RUR9.50 to the dollar from RUR6.30 to the dollar previously, producing a de-facto devaluation. It also announced a government bond restructuring, for which more details will be given Wednesday. Pinho Neto also highlighted that Brazil's domestic markets are calm, including the foreign exchange spot and futures trading.

To: Steve Fancy who wrote (6767)	8/17/1998 4:22:00 PM
From: Steve Fancy	Respond to of 22640

Ruble Devaluation Seen Impacting Brazil Hardest In LatAm By MARGARITA PALATNIK Dow Jones Newswires NEW YORK -- The transformation of a Russian ruble devaluation from long-running rumor to reality on Monday is expected to worsen the illiquidity plaguing Latin American markets and put greater pressure on the Brazilian economy, analysts said. Brazilian C-Bonds - one of the most liquid emerging market debt instruments and a barometer for Brazilian markets in times of turmoil - plunged early Monday on news that Russia effectively devalued the ruble by 34%. The weakness in Brazilian debt presaged a negative opening for the Sao Paulo Stock Exchange, which duly fell 2% at the start, highlighting a psychological link in investors' minds between the two giants. At 2010 GMT, C-bonds were down 3 5/8 to 65 3/4, while the exchange's benchmark Bovespa Index had slipped 1.5% to 8609. Although analysts agree that there isn't a direct material link between the Russian and Brazilian economies, they say market sentiment ties the two and note that in the who's next game of global markets, Brazil could be it. "They don't really compete in terms of export markets," said Deutsche Bank Latin America strategist Jane Heap. "But (the devaluation) will affect emerging market sentiment, which is already bruised." "Without a doubt, what's happening in Russia has a negative impact here," said ING Barings Brazilian economist Jose Carlos de Faria. "There are various channels of contagion with this; probably the most important immediate impact is on investment flow." According to Brazil's Stock Market Commission, foreign net portfolio investment in Brazil through the end of July was $2.01 billion, off its peak of $2.62 billion at end-April. Meanwhile, the Bovespa has shed 14% of its value year-to-date and 27% over the past 12 months.