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

To: Steve Fancy who wrote (8749)	10/2/1998 1:01:00 PM
From: Steve Fancy	Respond to of 22640

ADR REPORT - Clinton helps ADRs, focus on Brazil Reuters, Friday, October 02, 1998 at 12:32 By Daniel Bases NEW YORK, Oct 2 (Reuters) - American Depository Receipts firmed on Friday after President Clinton proposed a new initiative to provide emergency funding to bolster economies vulnerable to the global financial crisis. "Clinton helped a little to firm up prices after the Dow opened higher but the big focus is on Brazil, and also the close races for some of the regional (Brazilian) governorships," said one trader who requested anonymity. The ING Barings Latin American index <.LAT> of leading area ADRs was up 1.67 points, or 1.59 percent, to 106.55. Latin America is seen as the front line in the battle against the spreading financial crisis that began in Asia, tumbled through Russia and began pounding against Latin America like a tropical storm. "I think the Latam ADRs are mixed to positive this morning because I think the perception that there is no panic, that things are being put under control and there has been a rebound recently, is holding firm," said another veteran ADR trader. Clinton said the U.S. should work with other top industrial nations and the International Monetary Fund to provide fresh money to battered nations around the world. Brazilians start the presidential election process on Sunday. The incumbent, President Fernando Henrique Cardoso, is expected to win the first round of voting, according to the latest polls. Traders seem more concerned about what Cardoso will do, rather than if he will be there to do it. "He'll get in there, but the question is, what kind of financial fix-it package is he going to propose, and how soon will it come," said another trader. Brazil's leading ADR, telecommunications company Telebras (NYSE:TBR), was up 2-5/16 to 65-3/8. The ADR representing all 12 divisions of Telebras (NYSE:TBH) was up 2-11/16 at 66-5/8. While Latin American markets rise, European ADRs are suffering through a volatile day, traders said. "Trading in the Euros is very nervous. You've got earnings fears, banking exposure certainly not helping. They get hit domestically and we absorb the selling over here," said one veteran trader. Among UK banks, Barclays Plc (NYSE:BCS) was off 3-3/4 to 58-3/8 and National Westminster Bank (NYSE:NW) was down 1-1/2 at 71-1/2. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8749)	10/2/1998 1:04:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil's forex markets seen losing $400 mln Friday Reuters, Friday, October 02, 1998 at 12:20 SAO PAULO, Oct 2 (Reuters) - Brazil was seen losing $400 million through its foreign exchange markets Friday, traders said. Just a day after Brazil registered its second-biggest net dollar inflow in history of $2.786 billion, the nation's forex markets were seen losing money again. "The expectation is that flows revert to registering deficits as in recent days," one trader said. A big interest rate hike to almost 50 percent slowed dollar flight to about $500 million a day at the end of September. Before that, some $1.5 billion was fleeing Brazil every day, draining reserves and putting pressure on the currency. Including Thursday's net inflows, a net $28 billion has left Brazil through forex markets since the beginning of August. Copyright 1998, Reuters News Service