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

To: Steve Fancy who wrote (8681)	10/1/1998 10:18:00 AM
From: dougjn	Read Replies (1) \| Respond to of 22640

What the Brazos really need to do is cut their G*D* budget deficit by at least half. No ifs, ands or buts. 8% of GDP just doesn't cut it. Cut spending and/or raise taxes. Nothing else will save them. That would. Doug

To: Steve Fancy who wrote (8681)	10/1/1998 10:18:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil dlr outflow fell to $156 mln on Wed-dealers Reuters, Thursday, October 01, 1998 at 09:14 SAO PAULO, Oct 1 (Reuters) - Brazil's dollar outflow from the foreign exchange markets dropped to $156 million on Wednesday on expectations of some foreign inflows and as players opted to remain quiet before Sunday's elections, dealers said. A meager $14 million fled the commercial market while $142 million left the floating market. Outflows on Tuesday totaled $455 million. Brazil has lost more than $30 billion from its currency markets since the beginning of August as global investors have pulled out their money on the back of a grave emerging market crisis. In the month of September alone, a net $18.876 billion left the Brazilian forex markets, one of the biggest monthly outflows in history. It was not clear how much money had entered the country on Wednesday, but dealers suspected some foreign companies had financed their purchases in recently privatized Brazilian companies. Dealers said the wave of dollar outflows was expected to continue today, although players were unlikely to take huge currency positions ahead of the general elections on Sunday. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8681)	10/1/1998 10:20:00 AM
From: Steve Fancy	Respond to of 22640

Brazil Bovespa (INDEX:$BVSP.X) seen off amid global declines Reuters, Thursday, October 01, 1998 at 09:14 SAO PAULO, Oct 1 (Reuters) - Brazilian shares were seen taking a big hit Thursday, as dismal performances in overseas markets fueled fears of a prolonged global financial crisis, traders said. "With the situation the way it is, no one expects a solution to the crisis in at least the next three to six months," a trader at Banco Marka said. "Brazil's market is looking pretty bad, and not just for today." On Wednesday, Sao Paulo's key Bovespa index tumbled 4.01 percent to close at 6,593 points, dragged down by declines on Wall Street and concerns over Japan. Tokyo shares hit a fresh 12-year low Thursday underlining the financial woes facing Japan, and putting pressure on global markets. Wall Street was set to open sharply lower and European bourses were tumbling. Decisions in France and Germany to maintain current interest rates rather than meet the U.S. rates cut contributed to declines their and are expected to further sour investors on emerging markets like Brazil, dealers said. "There's a lot of frustration in relation to interest rates," a trader at a local brokerage said. A cut in rates could make the high returns on Brazilian debt more attractive. Bluechip activity Wednesday: Telebras receipts (SAO:RCTB40) off 5.6 pct at 82.60 reais Petrobras (SAO:PETR4) off 3.18 pct at 121.99 reais Eletrobras (SAO:ELET6) off 1.87 pct at 26.20 reais Vale do Rio Doce (SAO:VALE5) up 4.04 pct at 18.00 reais Bovespa: * Wednesday: off 4.01 pct at 6,593 points * Week: off 1.7 pct * Month: up 1.8 pct * Year-to-date: off 35.3 pct SELIC (open): 4.06 pct Dollar/Real (open): 1.1853 per dollar YESTERDAY'S STORIES 1/8 1/4SUR 3/8 ***** SPOT REAL QUOTES <BRBY> BOVESPA STOCK INDEX (INDEX:$BVSP.X) ELECTRICAL ENERGY INDEX <.IEE> BRAZILIAN ADR PRICES <BR/ADR> BRAZILIAN BRADY BOND PRICES <2LDO> BRAZILIAN DOLLAR FLOW HISTORY <BRFLOW> Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8681)	10/1/1998 10:28:00 AM
From: Steve Fancy	Respond to of 22640

Portugal Telecom Sinks To Fresh Low As Sell-Off Extends Dow Jones Newswires LISBON -- Shares of telecommunications company Portugal Telecom SA sank to fresh lows in active trade early Thursday as investors continued to punish the company for its heavy investment in Brazil, carrying PT's shares to a 52-week low. "Telecom is one of the most liquid shares, and it is normal that with the rest of Europe falling sharply it should follow," a broker in Lisbon said. "The worries about Latin American turbulence just make it much worse." At 0937 GMT, PT's shares were off 457 escudos ($1=PTE170.24), or 7.4%, at PTE5,750 on volume of 1.7 million shares. Brokers had said there was support in the market for PT at PTE6,000, though that was swept away immediately at the start of trade, and now PTE5,500 is seen as the next level. At the same time, the Bolsa de Valores de Lisboa index of continually traded national shares (BVL-30) was off 267.42 points, or 6.8%, at 3673.85 points, falling below the year-end 1997 close of 3781.30 points for the first time. PT has suffered continuously after hitting record highs above PTE11,000 in July, mainly because of fears that its participation in the privatization of Brazilian telecommunications group Telebras SA overexposed the company to possible turbulence there. PT is currently negotiating with the Brazilian government to finance its purchase through Brazilian dollar-denominated bonds, which would help protect the investment costs while also providing the Latin American country with much-needed foreign cash. Brokers noted that Thursday's volume was boosted by share crosses, as investment funds and banks rearranged their portfolio holdings and squared positions. -By Erik T. Burns; 351-1-319-1863; eburns@ap.org -0- 01/10/98 09-52G

To: Steve Fancy who wrote (8681)	10/1/1998 10:30:00 AM
From: Steve Fancy	Respond to of 22640

Spain: Iberdrola Buys Brazil Bonds To Pay Telecom Purchases Dow Jones Newswires -- October 1, 1998 BILBAO, Spain -- Spanish conglomerate Grupo Iberdrola said it has subscribed to $266 million in Brazilian public debt to pay for what it owes the government for its recent telecommunications sector purchases. The dollar-denominated bonds, issued through the federal National Development Bank (BNDES), will pay annual interest of 13.97%, Iberdrola said in a statement. The issue allows Brazil to pay slightly less than market rates, while Iberdrola reduces the financing costs of its Brazilian purchases. Together with Telefonica SA (TEF), Iberdrola bought stakes in three Brazilian companies at the July 29 privatization of holding Telecomunicacoes Brasileiras SA (TBR), better known as Telebras. They have already paid 40% and have to pay the remaining 60% between 1999 and 2000. But the Brazilian government has been negotiating with the Iberian companies, including Portugal Telecom (PT), to move up the payments in an effort to boost capital inflows and reserves. Brazil has lost over $20 billion in reserves in the last two months as one of the main victims of the global financial crisis. The Brazilian Treasury is expected to announce Thursday accords for advance payments of $3.5 billion from the Telebras privatization, Brazil's Estado news agency reported. Grupo Iberdrola is the group organization of Spanish electricity supplier Iberdrola SA (E.IBR).