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

To: Jay8088 who wrote (8265)	9/18/1998 10:15:00 AM
From: Steve Fancy	Respond to of 22640

Brazil forex mkts outflows slow to $207 mln Thurs Reuters, Friday, September 18, 1998 at 08:17 SAO PAULO, Sept 18 (Reuters) - Brazil lost $207 million through its foreign exchange markets on Thursday, as money coming in to pay for this week's privatizations offset dollar flight, making it the lowest outflow in more than three weeks. Belgium's Tractebel SA (BRU:TREB.T) is expected to bring in a total $400 million this week to make its first payment on Gerasul (SAO:GRSU6) utility, which it bought on Tuesday for $801 million. So far in September, $14.765 billion have fled Brazil as investors dump emerging markets investments. The huge dollar outflows have drained reserves and pressured Brazil's currency. A sharp hike last week in interest rates to 50 percent helped slow outflows which were averaging $1.5 billion a day last week, and have fallen to below $1 billion every day this week. Brazil registered a net outflow of $19 million from the commercial forex market on Thursday, according to the Central Bank, while net outflows from the floating forex market totaled $188 million, according to traders. Brazil can expect more inflows next week as Electricidade de Portugal SA (LIS:EDPP) brings in cash to pay for Thursday's purchase of Empresa Bandeirante de Energia Eletrica (SAO:EBEN4) utility. Copyright 1998, Reuters News Service

To: Jay8088 who wrote (8265)	9/18/1998 10:16:00 AM
From: Steve Fancy	Respond to of 22640

Brazil's Central Bank sets dlr buy/sell auction Reuters, Friday, September 18, 1998 at 08:43 SAO PAULO, Sept 18 (Reuters) - Brazil's Central Bank announced a dollar auction requiring buy and sell offers in the commercial foreign exchange market to lower its reais/dollar mini-band, dealers said. The current mini-band was set on Monday at between 1.1725 and 1.1825 reais per dollar. The Central Bank usually changes the mini-band five to seven times each month through buy/sell auctions. Before the auction Friday, the real was asked at 1.1802 per dollar and offered at 1.1804 per dollar, they added. Copyright 1998, Reuters News Service

To: Jay8088 who wrote (8265)	9/18/1998 10:17:00 AM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil's Central Bank lowers its reais mini-band Reuters, Friday, September 18, 1998 at 09:08 SAO PAULO, Sept 18 (Reuters) - Brazil's Central Bank lowered its mini-band on the real currency by buying dollars at 1.1730 and selling at 1.1840 reais per dollar in the commercial foreign exchange market, dealers said. The previous mini-band was set on Monday at between 1.1725 and 1.1825 reais per dollar. The adjustment places a 0.0110 reais spread in the mini-band, up from a 0.0100 reais spread previously. The move is in line with a slight policy shift announced late April in which the Central Bank said it would begin extending the mini-band's spread by 0.0010 reais per month. The bank said the measure was designed to add flexibility into Brazil's forex policy. Friday's auction was the fourth time this month the bank has nudged the mini-band lower and represents a 0.08 percent decline from the previous mini-band. The Central Bank usually changes the mini-band five to seven times each month. So far this month, the Central Bank has shifted the mini-band 0.34 percent lower. In the last six months, the Central Bank has lowered the mini-band between 0.60 percent and 0.63 percent each month. Copyright 1998, Reuters News Service

To: Jay8088 who wrote (8265)	9/18/1998 10:18:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil Bovespa jumps 3.02 pct on low dollar flight Reuters, Friday, September 18, 1998 at 09:32 SAO PAULO, Sept 18 (Reuters) - Brazilian shares surged more than 3 percent in the first 15 minutes of trading on optimism after dollar flight slowed further Thursday, traders said. "While there's still a net outflow of dollars it's getting smaller and that's reason for optimism," a trader said. Sao Paulo's key Bovespa (INDEX:$BVSP.X) index jumped 3.02 percent to 6,627 points in early trading. Brazil lost $207 million from its foreign exchange markets on Thursday as money comes into the country to pay for this week's privatizations, offsetting dollar flight. Last week an average $1.5 billion fled Brazil every day. A sharp hike in interest rates to 50 percent helped keep outflows well below $1 billion every day so far this week. Investors are keeping their eyes on Wall Street, which could end up putting a drag on Brazilian equities after it opens, traders said. Copyright 1998, Reuters News Service