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

To: MGV who wrote (7148)	8/27/1998 1:19:00 AM
From: Jerry A. Laska	Read Replies (1) \| Respond to of 22640

Brazil hit by Russia fallout, Cardoso urges unity BRASILIA, Aug 26 (Reuters) - Brazilian President Fernando Henrique Cardoso called for national unity on Wednesday as Russia's deepening financial crisis took its toll on local share prices and added to concerns about Latin America's biggest economy. ''These are difficult times, Brazil has to unite around the national interest,'' said Cardoso, who is seeking reelection in Oct. 4 presidential elections. Cardoso was speaking a day after his main challenger, leftwinger Luiz Inacio Lula da Silva, accused the government of hiding the extent of Brazil's vulnerability to volatile capital flows and called for the resignation of its economic team. Without mentioning the opposition, Cardoso said ''there are politicians who make unfounded accusations at sensitive times.'' The president was speaking during a routine ceremony at the presidential palace. Shares on the Sao Paulo stock exchange closed down 3.93 percent Wednesday amid fears that investors stung by a debt-restructuring plan in Russia would flee other emerging markets. It was the sixth consecutive daily slump in Brazilian share prices which have now lost all the gains accumulated over the last two years. To fend off possible speculative attacks on the currency, the real, the Central Bank Monday unveiled measures to attract dollars and keep Brazil's foreign reserves at about $70 billion. During his speech Wednesday, Cardoso said Brazil's policy of encouraging foreign investment had its risks but the government was able to defend the local economy. ''We have the means to react calmly and firmly, but if we do not work together, it's going to be hard to face up to this crisis,'' the president said. Cardoso has a lead of about 20 percentage points over Lula according to recent opinion polls and is considered firm favorite to win October's elections. The president's popularity stems mostly from his success in killing Brazil's once rampant inflation. Economists fear that achievement might be undermined should investors lose confidence in Brazil and force a devaluation of the real. biz.yahoo.com