Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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: Chip McVickar who wrote (9560)	11/10/1998 3:23:00 PM
From: Steve Fancy	Respond to of 22640

Yep, including daily postings of forex market inflows/outflows. You may not find as much discussion on the subject as you will analysts comments etc in story after story posted upthread. Keep in mind that in September, until they raised interest rates (which I expect to drop slightly in the next week or so) that outflows were 1 - 1.5 billion a day. regards, sf

To: Chip McVickar who wrote (9560)	11/10/1998 3:24:00 PM
From: Steve Fancy	Respond to of 22640

Brazil forex mkt outflows accelerate Tues -traders Reuters, Tuesday, November 10, 1998 at 14:47 SAO PAULO, Nov 10 (Reuters) - Brazil's foreign exchange markets should post a net outflow for Tuesday of around $120 million after a tiny outflow of $1 million on Monday, traders said. At 1700 local/1400 EST/1900 GMT, the commercial market showed a net inflow of $40 million, while the floating rate market was negative at $95 million for a combined provisional net outflow of $55 million. Traders said they were expecting the final figures to show a net outflow of $10 million on the commercial market and of $110 million on the floating market. Copyright 1998, Reuters News Service

To: Chip McVickar who wrote (9560)	11/10/1998 3:33:00 PM
From: Steve Fancy	Respond to of 22640

Brazilian Businessmen Urge Govt To Lower Interest Rates Dow Jones Newswires SAO PAULO (AP)--With recession and record unemployment knocking at the door, businessmen are urging the government to lower its exorbitantly high interest rates to revive Brazil's ailing economy. What's more, they warn, unless annual interest rates of nearly 50% start coming down, the government's recently announced fiscal austerity package runs the risk of falling apart. A document prepared by the National Confederation of Industries says that continued high interest rates will increase the public deficit - now at 7% of gross domestic product - and lower tax collection as economic output dwindles. In late October, the government unveiled a mix of taxes and spending cuts in a bid to save nearly $24 billion in 1999 and $80 billion by 2002. The measures must be approved by Congress. Analysts say the program is likely to provoke a recession and push unemployment above its current official rate of 7.8%. Independent economists say unemployment is closer to 20%. As part of its belt-tightening measures, the government Monday released a new budget blueprint that slashed spending 8.7 billion reals (BRR) ($1=BRR1.19). That would be 17% less than in the budget first presented to Congress in August. The government hopes the measures will qualify Brazil for an International Monetary Fund rescue package, expected to be announced this week. The IMF has insisted on a tough plan to slash Brazil's deficit before going ahead with an estimated $30 billion to $40 billion aid program. The austerity measures and the expected IMF-rescue package "have created the right momentum for the government to start reducing interest rates," said economist Flavio Castelo Branco of the National Confederation of Industries. Brazil's key lending rate was nearly doubled to 49.75% in September as investors fled the country following Russia's default and devaluation in August. The country's foreign reserves have fallen to around $45 billion from the $70 billion posted at the end of July. "With interest rates like these, it's impossible to draw up any coherent investment or expansion plan," said Aldo Lorenzetti, president of a large electrical appliance factory. Abram Szajman, president of the Sao Paulo Chamber of Commerce, described current interest rates as "incomprehensible" and called on the government to reduce them to pre-crisis levels of less than 25%. High interest rates, he said, have caused a "brutal drop" in retail sales, especially in the auto and household appliance sectors. For Alfredo Rizkallah, president of the Sao Paulo Stock Exchange "the government would "emit an extremely positive sign if it begins lowering interest rates." "Capital flight, the main justification for high interest rates, is no longer a major concern," said Rizkallah. "The exchange market has stabilized." So far this month, the exchange market shows a net inflow of $113 million, following a total net outflow of $21 billion in September and October. On Wednesday, businessmen will turn their attention to the Central Bank's Monetary Policy Committee that will set interest rates for the next five weeks. Horacio Lafer Piva, president of the Federation of Industries of the State of Sao Paulo, said he hoped interest rates would be lowered to 23%. Rizkallah said 33% to 36% would be a good start.