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

To: djane who wrote (7612)	9/7/1998 10:49:00 AM
From: MGV	Read Replies (2) \| Respond to of 22640

Yes chiro but don't forget that it was Asia currency attacks that made the real vulnerable in the first place. If Asia rallies significantly enough to take the heat off Asian currencies, then the pressure is vented from Brazil as well. I don't think Asia will rally in a significant, prolonged manner, not until reform in Japan removes Yen pressure. Until that happens, the Yen is at risk of setting 1998 lows. Of course, a US rate cut would reduce that risk but, a US rate cut also would be perceived as a positive for Brazil. If you are saying that Asia will beat Brazil on a relative performance measure, I disagree with you. If you are saying that both Asia and Brazil have a lid on them until Japan and Brazil do what they need to do fiscally, I agree with you. Further, if Brazil attacks its fiscal deficit before Japan gets its house in order, there should be separation between Brazil and Asia.