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

To: Steve Fancy who wrote (8642)	9/30/1998 12:56:00 PM
From: Steve Fancy	Respond to of 22640

Brazil mulls debt backed by future privatizations Reuters, Wednesday, September 30, 1998 at 11:53 SAO PAULO, Sept 30 (Reuters) - Brazil is studying a program to launch debt overseas backed by future privatization revenues, said Jose Pio Borges, vice-president of Brazil's National Development Bank. BNDES is also in talks with some of the new owners of the 12 telephone companies that were carved out of Telebras (NYSE:TBR) and privatized in July to speed up some $4 billion in payments, Pio Borges said. He said he is in talks with Spanish and Portuguese companies that bought Telebras units, which could include Spain's Telefonica de Espana (MADRID:TEF) and Portugal Telecom (LIS:PTCO). "We are talking to some companies, Iberian companies, that showed interest in anticipating payment," Pio Borges said. He said "about $4 billion" in privatization payments could be made ahead of schedule. Brazil plans to raise $25 billion in the next two years, with $10 billion coming from foreign investors, he said. Pio Borges did not estimate how much money Brazil could raise with bonds backed by future privatization revenues. He said BNDES is in talks with banks over interest rates and has not set a date for their launching. "One more creative way for the government to have some kind of financing would be the issuance of securities tied to revenues that will come from the exterior in future privatizations," Pio Borges said. Regarding the anticipation of privatization revenues, Pio Borges said the new owners of Telebras units are interested in bringing the money into Brazil ahead of schedule in order to invest in high-yielding domestic debt and then turn it into cash to pay for their acquisitions on the set dates. "They capture funds more cheaply overseas and apply them in government debt for a higher return," Pio Borges said. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8642)	9/30/1998 12:58:00 PM
From: Steve Fancy	Respond to of 22640

LatAm markets slip as Japan renews crisis concerns Reuters, Wednesday, September 30, 1998 at 11:57 By Shasta Darlington SAO PAULO, Sept 30 (Reuters) - Latin American markets, still sulking over a smaller-than-expected U.S. rate cut, slumped on Wednesday as a sharp spill in Japanese stocks reminded traders that the global financial maelstrom has not yet ended. Latin American bourses extended losses after a steep sell-off in Japan reminded investors that the international financial crisis still poses a threat to a number of countries. "Japan remains a problem and concerns about exposure throughout the global financial system remain a problem," said Bill Meehan, chief market analyst at Cantor Fitzgerald in New York. A downgrade in the debt rating of Japan's largest securities house battered the Nikkei stock index to a 12-1/2 year low. Only Venezuelan stocks were immune to the general downdraft, rallying over six percent on the key IBC index <.IBC> as former coup leader Hugo Chavez slipped in opinion polls ahead of December presidential polls. Markets throughout Latin America also continued their slide Wednesday in the wake of the U.S. Federal Reserve's decision to lower its federal funds rate by a quarter of a percentage point, rather than the hoped-for 50 basis points. "It seems the Fed came up short with the quarter-point cut in rates," said a stock trader in Mexico. A decline on Wall Street helped fuel declines on regional bourses. The Dow Jones Industrial Average was down 1.02 percent at 7,997 points. In Argentina, the bourse opened higher, but quickly turned south Wednesday dragged by overseas weakness and renewed concern over Japan. "The situation in Japan is now affecting the market," fund manager Gabriel Ruiz at Banco Quilmes said. "The bolsa is going to fall in light volume." The MerVal <.MERV> index of most traded shares was off 1.74 percent at 390 points in morning trade following a 0.57 percent dip Tuesday. In Brazil, Sao Paulo's key stock index Bovespa (INDEX:$BVSP.X) was off 2.44 percent in early trade Wednesday at 6,701 points as investors liquidated their holdings eyeing weaker equity prices in Asian and European markets, brokers said. "Local bourses are doomed to follow overseas when there is no positive news on the domestic front," said one trader. In the debt market, Brazil's dollar denominated C bonds <BRAZILC=RR>, traded in New York, were down 0.875 point to 61.250 in morning trade. In Chile, Santiago's Select IPSA index <.IPSA> slipped 0.25 percent to 66.08 points. "Prices should keep adjusting downward" after the U.S. rate cut, a trader at a local brokerage said. Investors in Chile had already factored in the 25 basis-point cut and were hoping for something more aggressive, traders said. In Mexico, the bourse opened moderately lower on Wednesday in step with Wall Street disappointment over Tuesday's Fed cut and on nervousness over the overnight tumble by Japanese equities, dealers said. "It now looks like the Fed didn't do enough with its 25-basis-point cut, which was completely discounted, and that is now putting us under pressure," a desk trader said. The leading IPC share index <.MXX> was down 3.31 percent at 3558. "We're back to Japan again," the trader added. shasta.darlington@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8642)	9/30/1998 1:01:00 PM
From: Steve Fancy	Respond to of 22640

Brazil forex mkts seen losing $500 mln Wednesday Reuters, Wednesday, September 30, 1998 at 12:13 SAO PAULO, Sept 30 (Reuters) - Brazil is seen losing another $500 million from its foreign exchange markets on Wednesday in a sign that U.S. currency is leaving the country at a steady pace, dealers said. Local currency markets lost $455 million on Tuesday. Brazil has lost over $30 billion since the beginning of August as global investors stampeded out of emerging markets including Latin America, frightened by currency turmoil in Russia. Copyright 1998, Reuters News Service