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

To: Steve Fancy who wrote (8638)	9/30/1998 11:43:00 AM
From: Steve Fancy	Respond to of 22640

IMF says financial package would help Brazil Reuters, Wednesday, September 30, 1998 at 11:30 WASHINGTON, Sept 30 (Reuters) - International Monetary Fund Chief Economist Michael Mussa said on Wednesday that a substantial financial package was under discussion to help Brazilian authorities restore confidence on financial markets. Mussa also said that further depreciation of the Mexican peso against the U.S. dollar was not warranted and a fixed-peg currency board would not be a good move for Mexico in the current international financial environment. Mussa said the Brazilian government and the IMF were agreed on the need for vigorous action to reduce Brazil's fiscal deficit, and so restore investor confidence and bring interest rates down. Mussa said fiscal action might not be enough to restore confidence and a financial package being discussed with the IMF could be helpful. "The details are yet to be fully elaborated," Mussa told a news conference on the IMF's World Economic Outlook. "In the present adverse financial environment for virtually all emerging markets, relying exclusively on fiscal measures may not be enough to support the necessary restoration of confidence and the provision of a substantial package of external financial support could be helpful in supporting the efforts of the Brazilian authorities," he said. He said details of the Brazil package would be made public by IMF Director General Michel Camdessus later. Mussa repeated Camdessus' assurances that the IMF and the international community were ready to come to the support of Latin America if needed to avoid the further spread of contagion from the emerging markets crisis. Mussa said he was not aware of any discussions with Mexico on introducing a currency board arrangement, but noted that it would be a wise step in the current situation. "While such an arrangement could have certain benefits, the present environment might not be the ideal one for considering its immediate implementation," Mussa said. Mussa said the Mexican peso had depreciated significantly against the dollar since the beginning of the year and that has provided Mexico with some "breathing space" in adjusting to external financing pressures. But he said: "Further depreciation of the peso at this stage would not be clearly warranted." Mussa discouraged moving to a firmly-pegged exchange rate in an environment of international financial tension because it would impose added burdens on the conduct of economic policy. 898-8383, washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8638)	9/30/1998 11:46:00 AM
From: Steve Fancy	Respond to of 22640

Brazil Telcom Privatization To Proceed - Telcom Offcl Dow Jones Newswires The official stated that the sale of the mirror licenses might not reach the estimated goal of 6.6 billion reals as investors will exercise more caution due to current market conditions in Brazil. Guerriero would not give his own estimate of what the auction will achieve, but remained "very optimistic" that the auction will be successful. ANATEL's president confirmed that several U.S. companies have expressed their interest in the auction at a recent meeting in Brazil. The official said that AT&T and Sprint are among the U.S. companies who will probably bid for the Mirror licenses. "We developed this bidding process with the American companies in mind. These companies will be allowed to have complete freedom in pricing as well as targeting the market sector they choose. This fits perfectly with many of the U.S. companies" strategies'" Guerriero said. The official also said that he met with with the Federal Communications Commission, a meeting which he described as very positive and in which both agencies discussed increased cooperation in the future. Brazil successfully privatized its telecommunications sector earlier this year and will complete the auction of mirror licenses in November.

To: Steve Fancy who wrote (8638)	9/30/1998 11:48:00 AM
From: Steve Fancy	Respond to of 22640

Emerging Mkts ADRs: Lower With World Mkts;Unibanco Down 12% September 30, 1998 Dow Jones Newswires NEW YORK -- Emerging market shares trading as American depositary receipts are sliding with world stocks Wednesday, as investors express their disappointment over a cut in U.S. interest rates that they deem insufficient. As reported, U.S. monetary authorities cut the federal funds rate by a quarter point Tuesday, leaving the discount rate unchanged. Prior to the move, investors said they preferred a half-point cut. Traders said that activity is thin Wednesday, in light of the Jewish New Year holiday. The Dow Jones Industrial Average was setting the tone for ADRs, as it shed 44.55 points to 8035.97 at 1420 GMT. "It's a Jewish holiday, so the market is really quiet," a trader said. "Now we're following the Dow, and European markets which took profits overnight." Among Brazilian ADRs, bank Unibanco is underperforming, sliding 12% to $14 at 1450 GMT. Traders speculated that takeover rumors by another Brazilian bank - which have swirled for weeks - may be dying down, prompting profit-taking. Bellwether Telebras was down 2.6% to $71 3/8, while smaller capitalization shares barely traded. "There's no interest today in second-tier names," a trader said. Bucking the trend, Venezuela's CANTV is trading higher Wednesday, up 5% to $17 5/8, aided by improving sentiment over the country's prospects, traders said. -By Margarita Palatnik; 201-938-2226; margarita.palatnik@cor.dowjones.com

To: Steve Fancy who wrote (8638)	9/30/1998 11:53:00 AM
From: Steve Fancy	Read Replies (3) \| Respond to of 22640

CORRECTED-Brazil Aug jobless rate falls Reuters, Wednesday, September 30, 1998 at 11:46 In Brazil story "Brazil jobless rate falls to 7.8 pct in August" please read headline as "Brazil jobless rate falls to 8.48 pct in August". Please read first paragraph ...fell to 8.48 percent in August from 8.74 percent in July... and in the third paragraph ...stood at 6.42 percent... The IBGE corrected the rates to reflect data for the month rather than the week. A corrected version follows. RIO DE JANEIRO, Sept 30 (Reuters) - Brazilian unemployment fell to 8.48 percent in August from 8.74 percent in July, according to figures published Wednesday by the National Statistics Institute (IBGE). The IBGE research measures the economically active population in Brazil's six major metropolitan regions. August's jobless rate had increased when compared to the same month in 1997, when the rate stood at 6.42 percent, the IBGE said. The number of people working continued to grow in the sectors of civil construction and services while it followed a downward trend in the manufacturing and trade industries, it said. The rate of unemployment by sector in the month of August was 8.99 percent in manufacturing, 9.47 percent in civil construction, 8.10 percent in trade and 6.21 percent in services. Copyright 1998, Reuters News Service