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

To: Steve Fancy who wrote (9587)	11/11/1998 12:10:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

IMF's Brazil rescue deal seen this week-negotiator Reuters, Wednesday, November 11, 1998 at 09:20 WASHINGTON, Nov 11 (Reuters) - An agreement is expected this week on a multibillion-dollar IMF-led rescue package for Brazil, a top Brazilian negotiator said on Wednesday. Amaury Bier, Finance Minister Pedro Malan's top aide, told Reuters that negotiators were still working on a letter of intent laying out Brazil's policy commitments. He said a final agreement with the International Monetary Fund should be ready by the end of this week. "It's more likely that it will be toward the end of this week," Bier said in Washington. A deal had been expected on Monday or Tuesday. The letter of intent would specify economic targets and the amount of financial support Brazil thinks it needs to guard its economy from the financial turmoil. The IMF-orchestrated loan package was expected to top $30 billion and could run as high as $45 billion, depending on how much bilateral aid is offered by the world's richest nations. The program was expected to include $15 billion from the IMF, $4.5 billion from the World Bank, $3.4 billion from the Inter-American Development Bank, and billions of dollars more from the United States and other leading industrial nations. "The broad details have been agreed," IMF First Deputy Managing Director Stanley Fischer said in Melbourne on Monday. But Fischer added that documents were still being completed. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9587)	11/11/1998 12:14:00 PM
From: Steve Fancy	Respond to of 22640

Cardoso sees interest rates to fall today - President Fernando Henrique Cardoso said yesterday that the Welfare reform bill approval in Congress, as well as the final negotiations for the signature of an accord with the International Monetary Fund (IMF), were premises leading to the possible reduction of interest rates in the meeting to be held by the Monetary Policy Committee (Copom) today. "I expect the rates to fall", he said. Cardoso also emphasized that the government's sending the Temporary Tax Financial Transfers (CPMF) amendment to Congress should also influence the decision. The Brazilian leader preferred not to estimate how much the rates should be cut. "This is a technical decision," he stated. In the market and in the government itself, however, the IMF accord announcement delay has been considered a barrier impeding a steeper fall of interest rates. Without the accord, analysts believe that Copom's alternative is to indicate that interest rates are moving downwards, but not to the 29.75% level in effect before the crisis began. According to an analyst, the Central Bank Assistance Rate (Tban) should decline to some 37% to 40% and reach the 30% level in 1999 only. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal Brasil/O Globo) Multinationals keep investing in Brazil - Brazil will receive direct investments totaling US$18bn from multinational companies in 1999, according to an estimate of the Brazilian Society for the Study of Transnational Corporations and Economic Globalization (Sobeet). The agency's projections reveal that multinationals' direct investments in emerging countries have shrunk 6% this year, the first retraction registered since 1985. Brazil has increased its participation, though. After receiving 9.7% of all investments in emerging countries in 1997, corresponding to US$16.3bn, Brazil should close out 1998 with 13.8%, or some US$22bn. According to the 1998 World Investments Report, released by the United Nation Conference of Trade and Development (Unctad) yesterday, Brazil should be the second best-ranked country among emerging nations receiving investments for the third year in a row, following China. Of the total volume of investments received by Brazil, 35% were allocated to the purchase of state-owned companies. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal do Brasil) Collor allegedly tried to hamper Cardoso's re-election - Senator Djalma Falcão (PMDB-Alagoas) said yesterday that former President Fernando Collor asked him to accuse in the Senate that President Fernando Henrique Cardoso, São Paulo governor, Mário Covas, Health minister, José Serra, and Communications minister deceased in April, Sérgio Motta, are allegedly partners in a firm in Cayman Islands. Falcão affirmed that it is the same accusation deputy Marta Suplicy (PT-São Paulo) reportedly received from daughters of PPB president and defeated candidate for São Paulo governorship, Paulo Maluf. According to Falcão, Collor sought him and made the accusation some 15 days before the October elections first round of vote. The senator replied to Collor he would only reveal the accusation in the Senate floor as long as he received official documents from Cayman confirming the charge. Falcão also said Collor promised to see about the documentation, but failed to seek him again. The senator believes that Collor's attitude proved that the accusation was nothing but a fraud in an attempt to hamper Cardoso's re-election. In Maceió, capital city of the northeastern state of Alagoas, Collor declared the conversation he had had with Djalma Falcão was about ministries' phone bugging. According to Collor, he did not mention anything about Cardoso's setting up an irregular firm in the fiscal haven. The current Communications Minister, Luiz Carlos Mendonça de Barros, said yesterday that government's phones were bugged by an industrial spying gang acting in Rio's phone company Telerj (see Telebrás). (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal do Brasil/ O Globo) Brazil's IBM to dismiss 700 workers - The Brazilian subsidiary of US-based corporation IBM will dismiss 700 employees by early 1999. The figure corresponds to 16% of the total. On the other hand, the company intends to employ other 400 workers next year. The measure is part of a broad restructuring strategy in IBM aimed at making the corporation more competitive in Brazil. (O Estado de S. Paulo/ Jornal da Tarde/ Gazeta Mercantil/ O Globo) (By Sergio Caldas)

To: Steve Fancy who wrote (9587)	11/11/1998 12:15:00 PM
From: Steve Fancy	Respond to of 22640

Traders' attention focused on Copom meeting and IMF aid Local bourses are expected to have a day of discreet oscillations following Tuesday's profit-taking, but they are to trade in positive territory most of the time, if not all. Although São Paulo stock exchange index (Ibovespa) six-day winning streak came to an abrupt halt yesterday, investors are still confident the International Monetary Fund (IMF) aid package will be announced this week. Market participants explain yesterday negative performance by saying that that was only the result of a bit of profit-taking. "It had nothing to do with the delay in announcing the package," a dealer told Dow Jones this morning. However, expectation on the package is growing and, according to analysts, may end up hurting local stocks until the end of the week if it takes too long to be confirmed. As for the rest of the day, attention will also be focused on the Central Bank's Monetary Policy Committee (Copom) meeting later Wednesday, where a cut in interest rates in highly expected, see related story.

To: Steve Fancy who wrote (9587)	11/11/1998 12:16:00 PM
From: Steve Fancy	Respond to of 22640

Forex posts a US$10m surplus on Tuesday São Paulo, 11 - Brazil's forex market posted a US$10m surplus on Tuesday. The result increased the month's accumulated positive balance to US$474m from US$464m. During the session, financial inflow reached US$267m, above outflow which stood at US$278m. In the trade account, exports reached US$184m, against imports of US$163m. The floating dollar was negative at US$117m, boosting the month's negative result to US$468 from US$351m. (By Adriana Carvalho)

To: Steve Fancy who wrote (9587)	11/11/1998 12:18:00 PM
From: Steve Fancy	Read Replies (12) \| Respond to of 22640

Gov't to vote Welfare bill MP's São Paulo, 11 - The government will begin to vote today the 12 Provisional Measures (MP's) regulating the Welfare reform bill. Yesterday, leaders of the allied parties and ministers Waldeck Ornélas (Welfare) and Eliseu Padilha (Transportation) defined in a meeting that only the four least controversial MP's will be voted today, including the one which establishes norms for the calculation of the so-called Social Integration Program (PIS). (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ O Globo. Edited by Sergio Caldas)