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

To: Steve Fancy who wrote (7544)	9/4/1998 6:27:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Malan calls for U.S. interest rate cut Reuters, Friday, September 04, 1998 at 18:02 WASHINGTON, Sept 4 (Reuters) - Brazil's Finance Minister Pedro Malan said on Friday the United States should lower official short-term interest rates to aid struggling economies around the globe. "In my opinion, the one idea that should be seriously considered at the next meeting of the U.S. Federal Open Market Committee should be reduction in U.S interest rates. That was my suggestion and that of other ministers," Malan said at the conclusion of a two-day meeting of Latin American finance ministers sponsored by the International Monetary Fund. Malan added that Brazil has no plans to devalue its currency, the real, and would not comment on future interest rate policy in Brazil. "There will be no change in Brazil's exchange rate policy," he said. Malan stressed that Mexico, Argentina, Chile and Brazil -- Latin America's four strongest economies -- agreed at the meeting that industrialized nations should assume their responsibilities in calming world markets. "We did not come for money. We do not need it. We need something else. The situation cannot be resolved only by developing countries. Industrialized nations need to assume their responsibility in calming this panic," he said. "We want a more favorable international climate and the responsibility is not only ours. There must be a greater coordination with industrialized countries," he added. Malan repeated his criticism of Moody's Investors Service's cut of Brazil's credit ratings on Thursday, which he termed unfounded and said it had added to continued nervousness among investors as the Brazilian stock markets continued to fall on Friday. 898-8383, washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (7544)	9/4/1998 6:30:00 PM
From: Steve Fancy	Read Replies (5) \| Respond to of 22640

Brazil's Cardoso Maintains No Emergency Package Needed Dow Jones Newswires BRASILIA -- Brazilian President Fernando Henrique Cardoso sees no reason for an emergency fiscal package and denies special measures were being contemplated, presidential spokesman Sergio Amaral said Friday. The statement follows what a trader described as "total panic" on the Sao Paulo Stock Exchange, known as Bovespa, which plunged by almost 14% in intra-day lows during Friday's trade. Cardoso was on his re-election campaign trail in the northern Amazon region all day Friday. The Bovespa plunge following a decline in U.S. stocks Friday, made worse by Moody's Investors Service downgrade of Brazil's foreign debt and its lowering of the financial strength rating of the country's three top private banks. The actions by Moody's don't warrant any comment by the president, Amaral said. "The president says he's not a stock analyst and that the current crisis affects only the market and not the government," the spokesman said. He said that, therefore, Cardoso won't make any statement on the matters. Amaral said Cardoso wants to reiterate stated policy that there will be no change in foreign exchange policy and that a devaluation of the real currency (BRL) is totally discarded. The spokesman also denied rumors that Cardoso will hold an emergency meeting with Finance Minister Pedro Malan on Saturday. -By William Vanvolsem; (5561) 244 3095; wvanvolsem@ap.org