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

To: djane who wrote (8056)	9/15/1998 2:38:00 PM
From: MGV	Read Replies (2) \| Respond to of 22640

DJ - Yes, I think Cardoso and the Brazilian Congress will win the structural reform. The support and words we are hearing from G-7, IMF, et al. are founded on the assurances from Cardoso that Brazil will do it. To bring his assurances to fruition I want to see a 1st round win and the mandate that will come with it. If Brazil does what I think it will do, it will be a huge endorsement for those who believe global free markets are the appropriate path to socio-economic and political advancement. It has all of the ingredients for a textbook success story: Country with inefficient government is punished by capital markets. Country founders but receives critical pyschological support from the strongest capitalist countries (see Soros' sharp metaphor of "circulatory system" in WSJ editorial). Inefficient government shapes its policy to conform to market incentives. Fiscal inefficiency and government waste is attacked. Country emerges with the fresh capital it needs to realize its economic potential in the 21st century. This case can be the poster child for the global free market paradigm. I wouldn't want to be shorting against it. That said, we are in a warm and fuzzy period with wonderful shows of support and verbal rallying. Words alone apparently were enough to correct an egregiously oversold position. Still, words will not be enough to keep the sentiment rosy.

To: djane who wrote (8056)	9/15/1998 3:06:00 PM
From: djane	Respond to of 22640

Privatization program totals US$35bn in 1998 Sep/15/98 at 11h25 am ET Sao Paulo, 15 - The National Development Bank (BNDES) announced today that with the sale today of the power generation company, Gerasul, for R$ 947.7m, the funds raised by the Brazilian privatization program now amounts to US$35bn. BNDES's deputy, Jos‚ Pio Borges, informed that the institution believes the figure should reach US$40bn by the end of the year -- an amount, which, if confirmed, is almost double that posted in 1997: US$27bn. (By J“ Galazi) Copyright c 1996 Agˆncia Estado. All Rights Reserved.