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

To: Steve Fancy who wrote (8333)	9/20/1998 9:07:00 PM
From: TokyoMex	Read Replies (1) \| Respond to of 22640

I suspect Nikkei will rally some 500 points today ,, however the actual bail out will not take place till 1999 ,, a buying opportunity at open as I still expect one more rally ,, going into feel good meeting between White House and Diet ,, Dow 8100 - 8200 is not out of the question ,, We will have Bill Clinton effect to content with at open ,,, and might see a late after noon rally .. As for Brazil,, a sweeping IMF as well as independent banks commitment is needed in tune of at least 10 - 12 billion dollars,,, I would think ,, further erosion in the Brazillian currency ,, I would be a seller of TBR at over 78 - 80 .. and a highly speculative buyer below 60 ,, under current circumstances,, it was a nice wild ride for a few days ,, but indeed when everything is said and done ,, TBR is a good company .. I will follow it closely with you ,, best of luck ,,

To: Steve Fancy who wrote (8333)	9/20/1998 11:24:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Cardoso Plans Budget Cuts If Re-Elected - Newspaper Dow Jones Newswires RIO DE JANEIRO (AP)-- Brazil's President Fernando Henriqe Cardoso has announced plans to adjust the country's 1999 budget to weather the world financial crisis, said a press report. "We have to make a strong and rapid adjustment to the budget to adjust to the new conditions," Cardoso told the O Jornal do Brasil newspaper this weekend. "No-one likes budget cuts but they are necessary. The quicker we adjust, the quicker interest rates will fall," he added. The cuts are planned should Cardoso be re-elected as expected at Brazil's presidential elections on Oct.4. No detag rates over the last month. The increases are aimed at stemming the exit of cash caused by nervous investors. The country has lost some $25 billion in reserves during the global crisis. Cardoso's announcement came after a meeting with the chairs of the Senate and Lower House, said O Jornal do Brasil. The president also announced plans to rapidly forge ahead (from Oct.20 onwards) with social security and tax reforms, said the daily. According to a series of opinion polls, Cardoso has a clear lead over nearest presidential rival Luiz Inacio 'Lula' da Silva.

To: Steve Fancy who wrote (8333)	9/20/1998 11:45:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Japan Bank Reform In Doubt As Parties Wrangle Over Pact By ANDREW TORCHIA Dow Jones Newswires TOKYO -- Two days after Japan's warring political parties announced an agreement on banking reform, the pact's future was thrown into doubt as the parties resumed wrangling over key provisions of it. Naoto Kan, head of the main opposition Democratic Party, said Sunday that the agreement might be scrapped and hinted that his party could press for early general elections as a result. "We must be ready for the possibility that the agreement will break down," Kan said in a speech at a party meeting, urging party members to step up preparations for elections. Yoshiro Mori, secretary-general of the ruling Liberal Democratic Party, conceded on national television that big areas of disagreement with opposition parties on banking reform remained. "It would be absurd to say that the situation has been resolved," Mori said. On Friday, after a month of talks, the LDP and the opposition announced a "basic agreement" on cleaning up Japan's mountain of bad bank debt. Insolvent banks would be liquidated or placed temporarily under state control, and a new body would use public money to buy up bad loans. The agreement had been anxiously awaited by Japan's crumbling financial markets, and came just in time for Prime Minister Keizo Obuchi to present U.S. President Bill Clinton with evidence that Japan is acting on its economic problems when the two men meet in New York this Tuesday. The apparent unraveling of the pact over the weekend could therefore deal another blow to the markets and complicate Obuchi's talks with Clinton. One Democratic Party lawmaker appeared to confirm Sunday that Friday's pact lacked substance, and was merely a failed attempt to create the appearance of consensus and help Japan save face in the international community. "We just wanted to give Mr. Obuchi a little help for his talks with President Clinton," said Yoshito Sengoku. On Friday, opposition parties announced the LDP had accepted their proposal for a temporary nationalization of troubled Long-Term Credit Bank of Japan, one of the country's largest banks. This would mean abandoning the LDP's original plan to use a Y13 trillion pool of public money to inject capital into LTCB before arranging a rescue merger for it. The LDP said nothing publicly to contradict the opposition on Friday, but on Sunday Mori and other LDP officials were once again leaving open the possibility of returning to their original plan. Mori described the opposition's idea for the nationalization of LTCB as merely an "option", and said it would still be legally possible for the Y13 trillion fund to be used for the bank. "We have not agreed on this issue," said Kansei Nakano, a top Democratic Party official. Another key part of the agreement, reform of the Finance Ministry, was also in doubt as the parties sparred over how long this would take. On Friday the opposition announced that the LDP had agreed to deprive the powerful ministry of its authority to set policy for the financial industry, transfering the authority to a new committee that will run the banking clean-up scheme. But while the opposition said this would occur by the summer of next year, LDP officials refused to accept that deadline on Sunday, saying they had only agreed to "reach a conclusion" on the issue by next summer. The two sides said on Friday that they aimed to pass legislation for Japan's banking clean-up in the current session of parliament, due to end in early October. But their disagreement on Sunday suggested this deadline might not be met. Lacking a majority in the upper house of parliament, the LDP needs at least some opposition votes to pass bills. It remained unclear Sunday whether the Democrats were prepared to act on their threat to try to force elections by deadlocking parliament. Lower house polls don't have to be held before October 2000, and smaller opposition parties are believed to be less prepared than the Democrats to face early elections. On the other hand, the LDP's public approval ratings are near record lows, and the Democrats' meeting on Sunday agreed that cooperation with opposition parties would be part of their election strategy. "The Democratic Party aims to replace the ruling Liberal Democratic Party by creating a new form of politics," Democratic Party secretary-general Tsutomu Hata told the meeting. -By Andrew Torchia; (813) 5255-2929; atorchia@ap.org