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

To: Steve Fancy who wrote (9134)	10/23/1998 4:23:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's real ends down 0.08 pct as $400 mln flee Reuters, Friday, October 23, 1998 at 15:48 SAO PAULO, Oct 23 (Reuters) - Brazil's real currency weakened 0.08 percent to close at 1.1910 to the dollar in the commercial foreign exchange market on Friday, as dealers estimated about $400 million had fled markets, pressuring the exchange rate. By 1730 local/1930 GMT, $127 million had flown out of the commercial forex market while $87 million left the floating forex market, but dealers speculated the total amount would grow once all deals were accounted for by the day's end. Friday's outflow showed dollar flight from Brazil's financial markets was far from ending. Another $468 million had fled on Thursday. About $30 billion had escaped Brazil's forex markets in August and September after Russia devalued its currency. Meanwhile, dealers said Friday's fall in the real was also due to the Central Bank lowering its real-dollar currency mini- band earlier in the day. The bank lowered the mini-band to between 1.1805 and 1.1925 reais to the dollar from a former 1.1795 and 1.1915 in a regular auction. The bank lowers the mini-band about seven times a month, aiming to devalue the currency by about 7.5 percent every year. In the floating forex market, the real ended down 0.08 percent at 1.1930 to the dollar, while in the parallel market, the currency finished up 0.39 percent at 1.28 per U.S. currency. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9134)	10/23/1998 4:32:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's treasury posts primary deficit in Sept Reuters, Friday, October 23, 1998 at 14:52 Meanwhile net debt, measured in terms of outstanding Treasury papers in local financial markets, stood at 81.4 billion reais in September, which was an equivalent of 9.0 percent of GDP. Net debt stood at 82.789 billion reais, or 9.2 percent of GDP, in August. ($1=1.18 reais) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9134)	10/23/1998 4:33:00 PM
From: Steve Fancy	Read Replies (5) \| Respond to of 22640

Emerging debt slides with Dow, Brazil in spotlight Reuters, Friday, October 23, 1998 at 16:04 NEW YORK, Oct 23 (Reuters) - Emerging debt prices slumped amid low trading volume on Friday in sympathy with U.S. equity prices, which have become the main gauge of global liquidity, traders and analysts said. Emerging market fixed income prices have moved with the Dow Jones Industrial Average recently, because the Dow reflects economic and liquidity conditions in the United States, the world's most important asset market and safe haven for investors, said Denis Parisien, Latin American strategist at Dresdner Kleinwort Benson. Also, Parisien said, the large multinational companies included in the Dow have investments world-wide, "These companies earn a significant proportion of their revenues from overseas and, increasingly, those revenues come from emerging markets," Parisien said. "So the Dow makes a pretty good measuring stick as to whether we will get more of a credit crunch or if we'll get a soft landing, allowing us to start betting on renewed growth," Parisien said. The Dow was down more than 1 percent in late afternoon trading Friday. Capital flow to emerging markets was choked off in August when Russia defaulted on its debt and devalued the rouble. Since then, the market has focused on Brazil, Latin America's largest economy, where the government was expected to reveal an austerity program following Sunday's gubernatorial elections. Brazil needs such a program, coupled with help from the International Monetary Fund, to close its budget deficit, which is approaching 8 percent of gross domestic product. IMF support, which could be announced next week, would give credibility to Brazil's reform effort, said Ronald Ratcliffe, chief Latin American economist at SG Cowen Securities Corp. "The return of investor confidence in Brazil would allow Brazilian interest rates to fall, stemming the country's rising fiscal deficit," Ratcliffe said. Earlier in the week, details of Brazil's program leaked into the market, pushing emerging debt prices higher. "Then today we saw that Brazil's current account deficit through September was worse than expected, at 4.37 percent of gross domestic product," Ratcliffe said. "This reminded people that Brazil has imbalances on its external accounts as well as its fiscal accounts, and bonds sold off." Benchmark Brazil C bonds <BRAZILC=RR> were down 1 to bid 63-3/4 in late afternoon trade and Argentine PAR paper <ARGPAR=RR> was down 5/8 to bid 70-1/8. Copyright 1998, Reuters News Service