SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?


To: Steve Fancy who wrote (8816)10/5/1998 8:46:00 AM
From: DMaA  Respond to of 22640
 
Ok Mr. Cardoso you got your mandate. Now let's see some action. Like this afternoon.



To: Steve Fancy who wrote (8816)10/5/1998 8:56:00 AM
From: jayray  Read Replies (1) | Respond to of 22640
 
Brazil shares seen little boosted after elections
Reuters Story - October 05, 1998 08:29

SAO PAULO, Oct 5 (Reuters) - Brazilian shares on Monday were seen getting a little lift from Sunday's election results, where President Fernando Henrique Cardoso appeared to have won an historic re-election, brokers said.

"Election results may give a little boost to the market today, but nothing explosive. Cardoso's victory was pretty much factored in on Friday's rise," said Roque Ribeiro, fund manager at Banco Marka in Rio de Janeiro.

Sao Paulo's key Bovespa index had surged 7.53 percent to close at 6,410 points on Friday as the government was seen buying stocks to boost the market ahead of the vote.

Cardoso had won 50.42 percent of the ballots versus 34.86 percent for left-wing opponent Luiz Inacio Lula da Silva with 52.64 percent of the 106 million ballots counted in Sunday's general elections.

Cardoso's apparent victory would soothe foreign and local investors worried about the economic fate of Latin America's largest economy, brokers said.

However, players were quickly shifting their focus to a possible announcement of an international aid package for Brazil and hints on fiscal obligations the government must come up with to secure such aid.

Brazilian Finance Minister Pedro Malan was quoted by a leading newspaper on Monday saying fiscal stabilization measures would be announced in "a few days".

"Without any developments on the packages, we'll simply have to follow trends in overseas markets," said one trader.

For that reason, Brazilian shares were seen vulnerable to overnight falls posted in Asian bourses, especially in Japan, brokers said. In Tokyo, the blue-chip Nikkei average dipped below the 13,000-point threshold for the first time since January 1986 as investors were disappointed the Group of Seven failed to offer concrete solutions to world financial woes.

Blue-chip activity Friday:
Telebras receipts up 10.98 pct at 82.90 reais
Petrobras up 5.41 pct at 117 reais
Eletrobras up 6.22 pct at 23.90 reais
Vale do Rio Doce up 10.12 pct at 18.50 reais
Bovespa:
* Friday: off 7.53 pct at 6,410 points
* Week: off 4.4 pct
* Month: off 2.7 pct
* Year-to-date: off 37.1 pct
SELIC (open): 4.08 pct
Dollar/Real (open): 1.1860 per dollar



To: Steve Fancy who wrote (8816)10/5/1998 9:42:00 AM
From: md1derful  Respond to of 22640
 
SF: Ok you were up late last night, no excuse WAKE UP...hey, when do we get our babies???



To: Steve Fancy who wrote (8816)10/5/1998 10:56:00 AM
From: Steve Fancy  Respond to of 22640
 
Brazil Weakens Real Mini-Band Vs Dlr By
0.10 Centavo

Dow Jones Newswires

SAO PAULO -- Brazil's Central Bank on Monday weakened the real
slightly against the dollar, by adjusting the mini-band in which the two
currencies trade.

The Central Bank regularly weakens the real with an adjustment every two
to five working days. The last time it did so was last Wednesday

The new band will value the dollar at 1.1770-1.1880 reals (BBR), up
0.10 centavos from the BBR1.1760-1.1870 previously, according to a
Central Bank computer transmission.

The Central Bank will now buy dollars at BRL1.1770 per dollar and sell
them at BRL1.1880 per dollar.

The adjustment was carried out via the usual practice of an electronic
auction called by the Central Bank.

Traders consider the move a "mini-devaluation" within a larger band that is
seldom modified.

The change was made by shifting the "mini-band" at which the real and
dollar trade within the BRL1.12-1.22 per dollar "wide band." The
wide-band was last modified by the Central Bank on Jan. 20, after being
at 1.05-1.14 for nearly a year.



To: Steve Fancy who wrote (8816)10/5/1998 10:57:00 AM
From: Steve Fancy  Respond to of 22640
 
France Strauss-Kahn: Sees Brazil Deal In Coming Days

Dow Jones Newswires

WASHINGTON -- French Finance Minister Dominique Strauss-Kahn
Monday said the Group of Seven leading nations has given a strong signal
that its determined to deal with the world's problems and that movements
in markets have been erratic and irrational.

At a press conference, Strauss-Kahn said the communique issued
Saturday by finance ministers and central bankers from the G-7 should
indicate to markets that there's no reason for further declines.

He also said the issue of aid to Brazil "will be correctly resolved in coming
days, and the markets will take note."

Strauss-Kahn said Brazil's exchange rate regime seems to be working
well, but indicated that the speed of depreciation of its currency, the real,
may not be enough.



To: Steve Fancy who wrote (8816)10/5/1998 10:58:00 AM
From: Steve Fancy  Respond to of 22640
 
IDB's Iglesias:No Formal Request From Brazil For Funds

By JAMES T. AREDDY; JAREDDY@AP.ORG; 852.2802.7002
Dow Jones Newswires

WASHINGTON -- The Inter-American Development Bank said the
organization stands ready to offer financing to Brazil, but no formal
requests have been made, the bank's president, Enrique Iglesias.

"We still haven't made any specific decisions because the requests have
only been in informal consultations," he said at a breakfast seminar on the
sidelines of the Washington meetings of the International Monetary Fund
and World Bank.

Igelsias said that in the past, the bank has concentrated on providing social
sector support and money for structural changes, noting that during the
1994-1995 Tequila crisis it provided money to Argentina and Mexico,
respectively.

"The same thing could be done again," he said. "We can also be present
now. We have headroom to move." But, said the bank official, "our
intention is normally not to provide liquidation" money.

Money from the IDB would be offered in conjunction any IMF package
put together for Brazil.



To: Steve Fancy who wrote (8816)10/5/1998 10:59:00 AM
From: Steve Fancy  Respond to of 22640
 
Fed's McDonough: No Signs Of Asia Bottoming Out

Dow Jones Newswires

WASHINGTON -- Federal Reserve Bank of New York President
William McDonough painted a bleak picture of the current economic and
financial crisis roiling the world, calling it the worst in the post-war era.

"I think we should realize that we are living in an extraordinarily difficult
time in world financial markets," McDonough told a breakfast sponsored
by the Institute of International Bankers. "I believe that we are in the most
serious financial crisis since World War II - and one that has a propensity
to get worse rather than better."

McDonough's comments came just one week after the Federal Open
Market Committee eased monetary policy, citing the possible threat to
U.S. growth from increasing weakness in foreign economies. His remarks
also came in the midst of the autumn meetings of the Group of Seven
industrialized nations, the International Monetary Fund and the World
Bank. Coping with the crises - as well as reviewing international institutions
and standards - have been a key preoccupation of the meetings.

McDonough noted that a year ago at the same gathering of world finance
and central bank officials, the Asian crisis was deemed to manageable and
not spreading.

"Well, that certainly turned out to be an inaccurate forecast," McDonough
observed.

Much of the Asian crisis stemmed from cozy relationships between the
government, bankers and borrowers - problem that may take a long time
to solve. "How do you create a banking industry with people who function
in the way that bankers are supposed to function?" McDonough asked,
noting such a task may take longer than creating a bank supervisory
system.

In the meantime, Asian economies are "still not showing any signs of even
bottoming out" - even in Thailand, which has fared the best in the region
since its crisis last year.

Comparing the current crisis in Asia to the Mexican crisis a few years ago,
McDonough noted that "Mexico is a very much more flexible country than
the Asian countries turned out to be." In addition, Mexico had an
enormous advantage of having the U.S. as a neighbor, which at the time
was able to aid the region with a strong economy.

In contrast, the most influential economy in Asia - Japan - "was and
continues to be in very serious recession," McDonough observed.

Although the Asian economies weren't going anywhere, the contagion was
believed to be contained until Russia defaulted on its domestic debt,
McDonough said. "When Russia went into a combination of deep
devaluation and default on Aug. 19, there were reverberations around the
world that became very severe indeed," he noted.

"It is my view that the attacks - both by flight capital and by foreign
investors pulling out - on major Latin American countries is absolutely
senseless. There is no similarity whatsoever between Korea, Russia and
Mexico. There is virtually no similarity between those countries and
Brazil," McDonough added.



To: Steve Fancy who wrote (8816)10/5/1998 11:03:00 AM
From: Steve Fancy  Respond to of 22640
 
Brazil's Franco: Talks With IMF Continue

Dow Jones Newswires

WASHINGTON -- Brazilian central bank president Gustavo Franco said
Monday that talks with the International Monetary Fund towards an aid
package include discussions on conditions for helping the country, but
those don't entail any changes to the country's foreign exchange policy.

"We are exchanging ideas with the IMF," Franco said. "They are to help
move forward on our fiscal program and do not include any changes to
our foreign exchange policy."

Franco also said it's too early to discuss the size the aid package. He said
that the results of the discussions will be released soon, although he
declined to specify when.

Franco stressed that Brazil's problems have to do with lack of confidence,
not lack of financing.

He said he hopes that as soon as the fiscal package is put forward,
domestic interest rates will fall quickly, helping to reduce the government's
servicing costs.

The finance minister also said he hopes that Brazil might be able to tap into
capital markets soon, but he said the country's policy has always been to
leave to the private sector raising funds in the capital markets.

"The Brazilian private sector will go back to capital markets, exhibiting
their strength," Franco said.

When asked about comments by IMF Chief Economist Michael Mussa
regarding the possibility that the crawl rate of Brazil's currency peg may
need to be adjusted, Franco said, "That is not under discussion."



To: Steve Fancy who wrote (8816)10/5/1998 11:07:00 AM
From: Steve Fancy  Respond to of 22640
 
Brazil's forex markets lose $680 million on Friday

Reuters, Monday, October 05, 1998 at 09:26

SAO PAULO, Oct 5 (Reuters) - Brazil lost another $680
million through its foreign exchange markets Friday as
investors yanked cash out of the country ahead of Sunday's
general elections, traders said on Monday.
Nervous investors pulled money out of Brazil on concerns
over the outcome of presidential and regional elections and on
concern over how soon afterward Brazil could see austere
budget-cutting measures.
Brazil has lost more than $28 billion since the beginning
of August, when financial turmoil in Russia sent investors
scrambling from emerging markets.
Though the apparent reelection of Fernando Henrique Cardoso
guarantees continuity and renewed efforts to slash the fiscal
deficit, many investors worry Brazil could still be facing an
uphill fight.
A sharp hike in interest rates in September help slowed
huge dollar outflows that were draining reserves and putting
pressure on the government to devalue its currency. Still,
investors say they want deep fiscal adjustments before they'll
start brining money back into the country.
On Friday, some $331 million left Brazil through the
commercial forex market, the Central Bank said, while another
$349 million left through the floating forex market, according
to traders.

Copyright 1998, Reuters News Service



To: Steve Fancy who wrote (8816)10/5/1998 11:08:00 AM
From: Steve Fancy  Respond to of 22640
 
Brazil shares seen little boosted after

Reuters, Monday, October 05, 1998 at 09:27

Brazilian Finance Minister Pedro Malan was quoted by a
leading newspaper on Monday saying fiscal stabilization
measures would be announced in "a few days".
"Without any developments on the packages, we'll simply
have to follow trends in overseas markets," said one trader.
For that reason, Brazilian shares were seen vulnerable to
overnight falls posted in Asian bourses, especially in Japan,
brokers said. In Tokyo, the blue-chip Nikkei average dipped
below the 13,000-point threshold for the first time since
January 1986 as investors were disappointed the Group of Seven
failed to offer concrete solutions to world financial woes.
Blue-chip activity Friday:
Telebras receipts (SAO:RCTB40) up 10.98 pct at 82.90 reais
Petrobras (SAO:PETR4) up 5.41 pct at 117 reais
Eletrobras (SAO:ELET6) up 6.22 pct at 23.90 reais
Vale do Rio Doce (SAO:VALE5) up 10.12 pct at 18.50 reais
Bovespa:
* Friday: off 7.53 pct at 6,410 points
* Week: off 4.4 pct
* Month: off 2.7 pct
* Year-to-date: off 37.1 pct
SELIC (open): 4.08 pct
Dollar/Real (open): 1.1860 per dollar



To: Steve Fancy who wrote (8816)10/5/1998 11:13:00 AM
From: Steve Fancy  Read Replies (6) | Respond to of 22640
 
Cardoso manages to keep 'shorter-than-expected' advantage - With
roughly half the ballots counted, President Fernando Henrique Cardoso was
re-elected Sunday in Brazil with a support of 21,047,768 votes (50.18% of the
total). His main opponent, left-winger Luiz Inácio Lula da Silva (PT) had
14,730,939 votes (35.12%), followed by Ciro Gomes (PPS), with 4,733,877
votes (11.29%), and Enéas Carneiro (Prona), with 936,539 votes (2.23%).
The difference between Cardoso and Lula is smaller than that estimated by an
Ibope-Globo TV-O Estado de S.Paulo poll, which gave the Brazilian President
an advantage of 56%. According to Datafolha, Cardoso received most of the
votes in at least six of the nine largest Brazilian electorate areas: So Paulo, Minas
Gerais, Bahia, Paraná, Pernambuco and Santa Catarina. In the states of Rio de
Janeiro, Rio Grande do Sul and Ceará, Cardoso and Lula were expected to
end up technically tied.

The election was carried out having as background an internal and external crisis
which represents a much more complex challenge than that imposed by high
inflation rates by the time the Real Plan was released, four years ago. Once his
re-election is confirmed, Cardoso will have to seek in Congress this week
support for the fiscal adjustment required to fight the effects of the international
turmoil affecting stock exchanges worldwide. (O Estado de S. Paulo/ Jornal da
Tarde/ Folha de S.Paulo/ Gazeta Mercantil)

Lula concedes defeat and calls Cardoso a "slaughterer" - Facing a third
defeat in a row in the dispute for Presidency, leftist candidate Luiz Inácio Lula
da Silva (PT) avoided making comments on his own political future yesterday.
Earlier on Sunday, Lula called Cardoso the Brazilians' "slaughterer". "I find it
incomprehensible that the victims vote on their slaughterer", he said. Even before
the first previews were announced, the left-winger showed signs of defeat. "I
would be a greater asset for Brazil than the current President". Despite of that,
Lula predicted that the PT would "continue to be the most important party in the
country" and added that this time around the leftist parties would expand in
Congress and state governorships. (O Estado de S. Paulo/ Jornal da Tarde/
Folha de S.Paulo)

São Paulo and Rio de Janeiro to have run-off elections - São Paulo
Governor Mário Covas (PSDB) and leftist candidate Marta Suplicy (PT) are
disputing ballot by ballot for the chance to dispute a second-round vote with
PPB candidate and former Mayor Paulo Maluf, which leads the election with
31.28% of the ballots. With 75.43% of the votes counted, Marta, with 24.19%,
has left Covas lagging behind, with 23.27%. Francisco Rossi (PDT), who
shared the lead with Maluf during significant part of the electoral campaign, had
17.19% of the votes.

In Rio de Janeiro, Anthony Garotinho (PDT) and César Maia (PFL) will define
the dispute in a run-off contest. With 99.31% of the ballots counted, Garotinho
received 46.89% of the votes, compared to 34.26% for Maia.

Also in Minas Gerais will a second round vote be necessary. Former President
Itamar Franco had 44.19% of the ballots, followed by current governor
Eduardo Azeredo, with 34.22%. (O Estado de S. Paulo/ Jornal da Tarde/
Folha de S.Paulo)

PSDB seen to lose seats in Chamber - The Chamber of Deputies general
secretary, Ubiratam Aguiar (PSDB-Ceará), admitted for the first time yesterday
that the PSDB, President Fernando Henrique Cardoso's party, would come out
of the general election with a worse-than-expected result in Congress, mainly in
the lower house. Aguiar estimates the PSDB should have some 80 deputies
elected, way down from an estimated total of 120 legislators. Aguiar
recommended Cardoso to seek an alliance with leftist parties as a way to
guarantee the passage of constitutional reforms in Congress. In the federal
capital Brasília, Deputy Arnaldo Madeira (PSDB-São Paulo), one of the
government's main mediators in Congress, classified Aguiar's idea as a
"tremendous nonsense". "That is a dream, unreal", Madeira criticized. (O Estado
de S. Paulo)

(By Sergio Caldas)