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To: Ron Kline who wrote (77046)	11/8/1998 12:48:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

Market friendly events to watch. Ron: Thanks for that link, 'buy & hold' strategy works for me. Here are two market friendly events (1)IMF/ Brazil deal imminent. (2)U.S Lifts sanctions On India & Pakistan. 1)Brazil/IMF Deal. Expect something to break this week,perhaps as soon as Monday. This is an extremely important event not only for Brazil but also for LatAm as a whole (though Chile is doing extremely well without this news), the U.S markets and the markets around the world. ========================================= Sunday November 8, 10:19 am Eastern Time Brazil braces for crucial IMF loan deal this week By Noriko Yamaguchi SAO PAULO, Nov 8 (Reuters) - Investors across Brazil were awaiting a crucial announcement from the International Monetary Fund (IMF) this week of a multibillion-dollar aid package that could save Latin America's economic giant from a meltdown. The sorely needed aid, which would save the world's eighth biggest economy from a devastating currency devaluation, is due to see the light after Central Bank president Gustavo Franco worked over the weekend in Washington to finalize talks begun in September. IMF Managing Director Michel Camdessus said on Friday that officials would probably be ready to announce at the beginning of this week ''a very strong, credible, solid program with Brazil which has the potential to avoid a major crisis in this country and put it potentially on a sustainable track of recovery.'' ''We need a volume of funds that would dissipate any sort of doubt that is currently put against Brazil, although we may not need to use the money,'' Pedro Parente, executive secretary at Brazil's Finance Ministry told an interview published on O Globo newspaper on Sunday. Estimates on the total rescue package, which would not only prevent an economic disaster in the region but could also save the world from a full-blown recession, run from $30 billion to $45 billion. The IMF is expected to come up with at least $15 billion while the World Bank and the Inter-American Development Bank (IADB) were seen preparing a series of loans totaling $4.5 billion and $3.4 billion each. Local newspapers speculated over the weekend that the Bank of International Settlements (BIS) would fill in a large part of the rest of the package. The United States, Japan and other Group of Seven countries are also expected to offer credit following the IMF announcement. Brazil's financial markets staged a greeting rally for the aid last week, hoping the pool of funds would put an end to a relentless capital flight that forced the country lose more than $30 billion just through foreign exchange deals since Russia's mid-August devaluation. Stock prices rose more than 25 percent in the last five sessions as foreigners tiptoed back to the local market, while dollar inflows steadily outpaced outflows in the currency markets -- a phenomenon not seen in the last three months. ''There's no doubt progress with the IMF-led package, which could total $40 billion to $45 billion, has been the golden key in recent market performances,'' Alberto Tamer, a London-based columnist for O Estado de Sao Paulo daily wrote on Sunday. Three major Brazilian banks managed to raise funds in overseas markets last week, an event considered impossible only a week ago, Tamer pointed out. But economists said most investors were not ready to cheer with all hands up as the government still faced the gruesome task of backing up the IMF credit with a fiscal savings plan totaling $84 billion. The government is due to propose to congress on Monday the first batch of those cuts, or a reduced version of the 1999 budget which would allow it to save 8.7 billion reais ($7.4 billion) in federal costs. -------------------------------------------------------------------------------- 2)U.S Lifts Sanctions on India & Pakistan. U.S. Lifts Sanctions On India, Pakistan Aim Is to Reward, Encourage Nuclear Curbs By Thomas W. Lippman Washington Post Staff Writer Saturday, November 7, 1998; Page A14 President Clinton has decided to lift most of the economic sanctions imposed on India and Pakistan after their nuclear weapons tests last May to reward them for recent steps toward nuclear control agreements and to encourage them to do more, senior administration officials said yesterday. Clinton notified the prime ministers of both countries by letter yesterday that he was exercising authority granted by Congress last month to waive the sanctions. Before Congress acted, the U.S. sanctions were inflexible and indefinite, a fact cited by U.S. officials and by India and Pakistan as an obstacle to productive negotiations. Clinton's decision follows six months of intensive diplomacy by Deputy Secretary of State Strobe Talbott and other U.S. officials aimed at heading off a nuclear arms race in volatile South Asia. As recently as Thursday, Talbott said the nuclear standoff between the South Asian rivals threatened "an apocalypse in the cradle of several of the world's great religions and civilizations. Even if they don't unleash that ultimate catastrophe, India and Pakistan are straining at the starting blocks of a ruinously expensive arms race."... search.washingtonpost.com