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

To: Steve Fancy who wrote (8420)	9/22/1998 8:38:00 PM
From: md1derful	Read Replies (1) \| Respond to of 22640

SF: Hey, hurricane coming...no,not tbr to 100, Georges, to our doorsteps...get those batteries and candles and most importantly close all tbr option positions!!! Looks like landfall Fri...I don't mind the power outages, but if I can't have my SI, I become irrational, not easy to deal with....

To: Steve Fancy who wrote (8420)	9/22/1998 10:42:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Bovespa closes up 1.71 pct amid aid talk Reuters, Tuesday, September 22, 1998 at 16:47 SAO PAULO, Sept 22 (Reuters) - Brazilian shares inched up 1.71 percent on Tuesday amid speculation that international agencies were preparing a package to prevent Brazil from succumbing to a financial crisis, traders said. "The market rose on talk of a $30 to $50 billion aid package," said a trader from BancoCidade. "While no proof came out about that amount, it does seem the government has something in the works." Sao Paulo's Bovespa (INDEX:$BVSP.X) index rose to 6560 points in a sign that the market may have stabilized at between 5000 and 6000 points after losing more than half its value in six weeks. Deputy U.S. Treasury Secretary Lawrence Summers said on Tuesday afternoon that Washington was watching developments in Brazil but added that no specific package was imminent. U.S.-based economists, however, said Tuesday that Brazil had nailed down the broad outlines of an agreement with multilateral lending agencies, but the government was unlikely to announce any agreement until after Oct. 4 elections. Telephone stocks were among the most actively traded though volume was low for a second session at 373.7 million reais. Investors are still weighing the relative advantages of each of the 12 companies that replaced Telebras shares on Monday. The companies that were privatized on July 29 began trading on Monday. Telebras receipts (SAO:RCTB40), which group all 12 companies in one security, were still the benchmark stock, rising 1.56 percent to close at 84.80 reais. Telesp Participacoes preferred (SAO:TLPP4) fell 3.45 percent to close off at 28 reais. One of the biggest gainers was Tele Centro Sul preferred (SAO:TCSP4), which surged 10.58 percent to 11.08 reais. Tele Norte Leste preferred (SAO:TNLP4), which has been spurred by the market because its new owners lacked experience operating a telecom, fell 6.67 percent to 14 reais. Among blue-chip stocks, preferred shares of the state-owned oil company Petrobras (SAO:PETR4) closed up 2.59 percent at 119 reais, while preferred shares of energy company Eletrobras (SAO:ELET6) ended up 7.93 percent at 24.50 reais. Preferred shares of iron ore miner Cia Vale do Rio Doce (SAO:VALE5) bucked the trend, closing off 2.7 percent at 18 reais. shasta.darlington@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8420)	9/22/1998 10:45:00 PM
From: Steve Fancy	Respond to of 22640

Brazil real weakens 0.17 pct on dollar flight Tues Reuters, Tuesday, September 22, 1998 at 17:17 SAO PAULO, Sept 22 (Reuters) - Brazil's currency weakened 0.17 percent on Tuesday as more dollars left the country, even after the Central Bank was seen selling dollars in a bid to stabilize the real, traders said. The real closed at 1.1835 to the dollar as another $700 million were seen fleeing Brazil's foreign exchange markets, traders said, draining reserves and putting pressure on the currency. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8420)	9/22/1998 10:47:00 PM
From: Steve Fancy	Respond to of 22640

Emerging debt gains on expectations of int'l loans Reuters, Tuesday, September 22, 1998 at 17:34 NEW YORK, Sept 22 (Reuters) - Emerging bonds gained ground Tuesday on low volume as the feeling sank in among traders that, while economic recession is likely in Latin America, the international community will not abide sovereign defaults. Rumors of specific bailout loan packages from international lenders were unsubstantiated Tuesday, but market watchers said aid to Brazil and other countries that may be headed for recession would likely appear before the countries default. Whether it would come from the Group of Seven leading industrial nations, or the International Monetary Fund, "the money is out there waiting," one emerging debt trader said. "Bond investors don't care if a country's economy shrinks by five percent, as long as it makes its coupon payments. With no new bad news out there, prices are looking very attractive to investors and we think this market should keep going up little by little." Though prices increased Tuesday, trading volume remained low, indicating caution on the part of investors, at least until Brazil's October 4 presidential election, said Dan Peirce, head of emerging markets research at BancBoston Securities Inc. If, as expected, incumbent Fernando Henrique Cardoso wins reelection, analysts anticipate the government will introduce measures to tighten the country's yawning budget deficit, which stands at over seven percent of gross domestic product. "A loan package won't necessarily get them out of that bind," Peirce cautioned. "Until we get past the election in Brazil and see some stern fiscal measures in the wake of that election, people are going be uncertain, whether or not there is international support." Benchmark Brazil C bonds <BRAZILC=RR> were up 5/8 to bid 62, Argentina PAR bonds <ARGPAR=RR> were up 4 to bid 66-5/8 and Mexico PAR bonds <MEXPAR=RR> were up 2-1/2 to bid 73-1/2. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8420)	9/22/1998 10:49:00 PM
From: Steve Fancy	Respond to of 22640

No slowdown in Latam FDI despite crises--study Reuters, Tuesday, September 22, 1998 at 17:43 LONDON, Sept 22 (Reuters) - The surge of foreign direct investment (FDI) into Latin America -- investments in bricks and mortar rather than short-term paper assets -- shows no sign of slowing, despite recurring market turbulence, a study showed on Tuesday. FDI to Latin America increased fivefold during the 1990s compared with the previous decade, according to the study, published jointly by the Inter-American Development Bank (IDB) and the Institute for European-Latin American Relations (IRELA). Even within the 1990s, the trend has been rising and an estimated $45 billion of funds to the region as whole in 1997 was more than double that of 1995, the study showed. FDI "has continued to flow to the region even when conditions have not always seemed favourable," the IDB said in a statement on the release of a book on the study. "This was confirmed by the scant impact on FDI flows of the Mexican crisis at the end of 1994, as well as the apparently limited consequences of the Asian crisis." Analysts contributing to the book said that all the signs showed that interest in FDI in the region was still strong in recent months, despite the spread of the past year's Asian crisis to the stock and bond markets of Brazil, Mexico and elsewhere. "FDI decisions are driven by long-term considerations," Peter West, economist at BBV Securities, told a news conference. "As long as the medium-term prospects for the region continue to be good, I don't see how a short-term cyclical downturn in growth like this is going to have a major impact. "If Latin America is able to survive this dramatic market turbulence at the moment, then it's going to look a lot more attractive as a location for FDI than some other parts of the worlds." The study showed the record levels of FDI attracted by Latin America and the Caribbean together over the last five years places the region as the second most popular target for investors among developing regions, behind south and southeast Asia. The $45 billion absorbed last year was more than 45 percent of total capital flows, compared with 38 percent and 20 percent in 1990 and 1980, respectively, it showed. FDI accounted for about 90 percent of the whole regions's cumulative current account deficit between 1995 and 1997, the analysts said. 7239, mike.dolan@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8420)	9/22/1998 10:51:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Summers-Brazil hit by contagion, has made progress Reuters, Tuesday, September 22, 1998 at 21:25 WASHINGTON, Sept 22 (Reuters) - U.S. Deputy Treasury Secretary Lawrence Summers said on Tuesday that Brazil had made progress on its economy and he said contagion was behind its latest financial problems. "Brazil has made enormous progress in the last few years and they have been hit by contagion, not really driven by things in its own economy," he told CNN's Moneyline. "Certainly that's the situation that the IMF and the G7 are watching very closely and in touch, we want to see the right response in terms of Brazil's charting its own economic course forward." Summers did not respond directly to CNN's question, which asked him to comment on what it described as an IMF report that "the IMF has worked out with Brazil a (loan) facility, estimates -- at least reports of estimates -- run anywhere from $15 to $25 billion." International monetary sources said on Tuesday that Brazil, Latin America's largest economy, had not asked for financial help from the International Monetary Fund, although the two sides were in discussion on policy issues. Financial markets have however speculated about the release of a multi-billion rescue package, including money from the IMF. Many analysts in Washington have said that Brazil is unlikely to request IMF cash before its Oct. 4 presidential election because to do so would be an admission of defeat for President Fernando Henrique Cardoso, who is the firm candidate to win. A request for IMF cash would mean accelerating already announced programs to curb spending and rein in the budget deficit, and that would go down poorly before an election. washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service