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

To: Steve Fancy who wrote (8892)	10/7/1998 3:26:00 PM
From: Steve Fancy	Respond to of 22640

Brazilian ADRs Fall Further On President Cardoso's Speech Dow Jones Newswires NEW YORK -- Market participants didn't find solace in re-elected President Fernando Henrique Cardoso's acceptance speech Wednesday, and continued to push prices of Brazilian American depositary receipts lower. Minutes after the end of the speech, Telebras ADRs were down 6.6% to $65 1/16, dipping about two percentage points lower than before the address. Beverage company Brahma slid 5% to $6 7/8. Cardoso's first address to the nation since Sunday's election was filled with general statements about the economy, but lacked the specific targets and figures markets had been waiting for. "He didn't say anything," a trader said. "The market needs to get gas, and he didn't provide any new gasoline." Cardoso said that the much-awaited fiscal adjustment measures will be released by Oct. 20 - vowing that the program will be open to national debate and showed to multilateral organizations. He added that Brazil can obtain sufficient funds from abroad. -By Margarita Palatnik; 201-938-2226; margarita.palatnik@cor.dowjones.com

To: Steve Fancy who wrote (8892)	10/7/1998 3:29:00 PM
From: Steve Fancy	Read Replies (7) \| Respond to of 22640

Brazil's Cardoso Thanks Voters For Second Mandate Dow Jones Newswires BRASILIA -- In his first public appearance since winning re-election Sunday, Brazilian President Fernando Henrique Cardoso thanked voters Wednesday for a second mandate, but warned that sacrifices lie ahead for economic growth to resume. In a speech similar to the one he gave ten days before elections, Cardoso recognized that the government's priority is to reduce the public deficit, now at over 7% of gross domestic product. To that end, Cardoso said that the government will release details of a multi-year fiscal austerity plan by Oct. 20. Cardoso, who said that a new international economic reality has made the fiscal adjustments necessary, added that the measures will be discussed throughout Brazil and will be presented with "complete transparency" to international institutions. He called on Congress to start working on key reforms immediately, even before the new government and members of Congress are sworn in in January. "More than ever, there has to be a willingness in this country for dialogue and solidarity," Cardoso said. Cardoso, credited with bringing stability to Brazil in his first term, pledged to preserve stability and protect the country's currency, the real.