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

To: Petrus who wrote (7907)	9/11/1998 4:17:00 PM
From: Steve Fancy	Respond to of 22640

Brazilian tax receipts up 55.9 pct in August Reuters, Friday, September 11, 1998 at 14:23 BRASILIA, Sept 11 (Reuters) - Brazilian federal tax receipts in August totaled 16.36 billion reais ($13.86 billion), up 55.9 percent from July's 10.491 billion reais, the Finance Ministry's Federal Tax Secretariat said Friday. August's receipts, which were swelled by income from the privatization of telephone company Telebras, were 64.3 percent higher than in the same month last year, the secretariat said in a statement. Copyright 1998, Reuters News Service

To: Petrus who wrote (7907)	9/11/1998 4:18:00 PM
From: Steve Fancy	Respond to of 22640

History of Brazil dollar outflows in September Reuters, Friday, September 11, 1998 at 15:31 BRASILIA, Sept 11 (Reuters) - Brazil's foreign currency reserves plummeted to $52 billion by Friday from around $70 billion at the beginning of August, the Central Bank said on the morning after it announced it was hiking interest rates to almost 50 percent. Dollars have fled the country at an average rate of $1.5 billion per day since the start of September as investors rattled by the economic crisis in Russia pulled out of emerging markets in droves. Local investors have also pulled out their dollars to seek shelter in the safe haven of dollar-denominated instruments such as U.S. Brady bonds. Following is a daily history of dollar outflows between September 1 and 10, which totaled $11.028 billion, virtually the same as the total of $12 billion for the month of August as a whole. Figures for the commercial foreign exchange market are provided by the Central Bank. Figures for the floating foreign exchange market are based on market estimates. Commercial mkt Floating mkt Total estimated outflows * Sept 10 1,444,514 815,000 2,259,514 * Sept 9 800,472 342,000 1,142,472 * Sept 8 632,580 253,000 885,580 * Sept 4 1,127,193 1,798,000 2,925,193 * Sept 3 694,158 635,000 1,329,158 * Sept 2 703,711 459,000 1,162,711 * Sept 1 653,481 670,000 1,323,481 * August 8,989,000 3,012,000 12,001,000 Copyright 1998, Reuters News Service

To: Petrus who wrote (7907)	9/11/1998 4:19:00 PM
From: Steve Fancy	Read Replies (3) \| Respond to of 22640

DKBR cuts Latam growth forecast, alters weightings Reuters, Friday, September 11, 1998 at 15:44 MEXICO CITY, Sept 11 (Reuters) - Dresdner Kleinwort Benson Research (DKBR) said on Friday it lowered its 1998 growth forecast for Latin America amid ongoing market turbulence and had altered its weighting of Brazil and Chile. In a research note to investors, DKBR said it was cutting its forecast for overall Latin America 1998 gross domestic product (GDP) growth to 2.6 percent from 3.1 percent, and to 1.3 percent from 3.6 percent for next year. DKBR lowered its 1998 GDP growth forecasts for Argentina, Brazil, Peru and Venezuela, while it left expectations for Chile, Colombia and Mexico unchanged. The firm also recommended that investors step up their weightings in Chile at the expense of Brazil. "We have cut sharply our GDP forecasts for LatAm. The storm of global deflation and contagion is now battering the region at gale force, and Brazil is directly in its path," DKBR researchers said. "We see the crisis worsening." It advised investors to reduce their weighting for Brazil to underweight from neutral in a Latin American portfolio, and to raise their exposure to Chile to neutral from underweight. It predicted GDP growth in Argentina would reach 5.1 percent this year instead of 5.5 percent forecast earlier. Brazil would achieve 1.2 percent GDP growth instead of 1.8 percent, Peru would achieve 2.3 percent after 3.0 percent predicted earlier. Venezuela would slip into recession, it estimated. DKBR cut its 1998 growth forecast to negative 0.8 percent after 0.6 percent predicted earlier. "A full-blown emerging markets crisis appears to be underway," DKBR said, adding the United States would not be spared if the storm hit Latin America. "If Latin America goes into the deep freeze because Brazil is forced to devalue, the United States will be significantly impacted," DKBR said. "Some 18 percent of U.S. exports go to LatAm. And U.S. banks have some $76 billion of cross-border exposure to the region," it added. However it said Mexico and Peru, countries with floating exchange rate regimes, at present had currencies closest to "fair value". "We see this as a huge advantage in present circumstances," DKBR said, adding this meant they were not vulnerable to the loss of credibility that accompanies a forced devaluation of a currency peg. mexicocity.newsroom@reuters.com)) Copyright 1998, Reuters News Service