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

To: Steve Fancy who wrote (9593)	11/11/1998 1:51:00 PM
From: Steve Fancy	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 (9593)	11/11/1998 1:52:00 PM
From: Steve Fancy	Respond to of 22640

CBOE to list options on ADS of Telebras spinoffs Reuters, Wednesday, November 11, 1998 at 12:18 CHICAGO, Nov 11 (Reuters) - The Chicago Board Options Exchange (CBOE) said it will list options on six ADSs of Brazilian companies spun off from Telebras (SAO:TEL_.P). The ADS, which will start trading on November 18, are Telesp Participacoes S.A. (NYSE:TSP), Tele Centro Sul Participacoes S.A. (NYSE:TCS), Tele Norte Leste Participacoes S.A. (NYSE:TNE), Embratel Participacoes S.A. (NYSE:EMT), Telesp Celular Participacoes S.A. (NYSE:TCP) and Tele Sudeste Celular Participacoes S.A. (NYSE:TSD). LETCO L.P. has been named the designated primary market maker in all of the options. Telesp Participacoes provides local telecommunications services to the Brazilian state of Sao Paulo. Tele Centro Sul Participacoes provides local telecommunications services to the southwestern region of Brazil. Tele Norte Leste Participacoes provides local telecommunications services to the northern and eastern regions of Brazil. Embratel Participacoes provides long-distance telecommunications services in Brazil. Tele Sudeste Celular Participacoes provides cellular telecommunications services to the Brazilian states of Rio de Janeiro and Espirito Santo. Telesp Celular Participacoes provides cellular telecommunications services to the Brazilian state of Sao chicago.derivatives.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9593)	11/11/1998 1:54:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

NYSE to list 12 Telebras spin-offs on Monday Reuters, Wednesday, November 11, 1998 at 12:59 NEW YORK, Nov 11 (Reuters) - The New York Stock Exchange said Wednesday it would list next week all of the holding companies that were spun off from Telebras (SAO:TEL_.P) (NYSE:TBR), Brazil's telecommunications giant that was privatized last summer. The exchange, the world's largest, said in a statement that the listing would be the final step of the spin-off, which it described as the largest of a listed company on the Big Board. "We are honored to welcome all 12 companies into the family of NYSE-listed companies," it said. The announcement comes less than a week after Telebras made a similar one, saying it would distribute American Depositary Receipts (ADRs) for each holding company to holders of its own receipts on November 13. Telebras ADRs, which represent a lot of 1,000 ordinary shares in the company, were trading $0.75 lower at $82.81 in light volume at midday. The 12 companies are Telebras's eight cellular companies, three fixed-line companies and long-distance carrier Embratel (SAO:EBTP4). The cellular companies Telesp Celular (SAO:TSPP4), Tele Sudeste Celular (SAO:TSEP4), Tele Sul Celular (SAO:TCSL4), Telemig Celular (SAO:TMCP4), Tele Leste Celular (SAO:TLCP4), Tele Centro Oeste Celular (SAO:TCOC4) and Tele Nordeste Celular (SAO:TNNEP4) and Tele Norte Celular (SAO:TNCP4). The fixed-line companies are Telesp Participacoes (SAO:TSPP4), Tele Centro Sul Participacoes (SAO:TCSP4) and Tele Norte Leste Participacoes (SAO:TNLP4). Telebras is not only a benchmark for Latin American stocks but also one of the most actively traded on the NYSE, which first listed it on Nov. 1, 1995. An ADR enable U.S. traders to deal in foreign stock without having to go to overseas. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9593)	11/11/1998 1:57:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Aid Totals $42B In Multilateral, G-10 Funds-Newspaper Dow Jones Newswires BRASILIA -- The international financial aid package being put together for Brazil should reach a total of $42 billion spread over three years, daily financial newspaper Gazeta Mercantil reported Wednesday. Quoting "financial sources in Europe," Gazeta Mercantil said the total is split between multilateral organizations and central banks of the group of ten leading industrialized nations. The newspaper said international organizations will contribute $27 billion - $18 billion provided by the International Monetary Fund and $4.5 billion each by the World Bank's International Bank for Reconstruction and Development and the Inter-American Development Bank. The amount supplied by the G-10 - coordinated by the Bank for International Settlements - will be between $13.7 billion and $15.2 billion, according to the newspaper. Gazeta Mercantil said the final $1 billion will come from the central banks of Austria, Denmark, Finland and Portugal with $250 million each. The newspaper said the G-10 was ready to announce the global package Wednesday, "but was in doubt whether to wait first for confirmation of participation by the private sector." This depends on private banks making their own announcement on guaranteeing to renew and increase their credit lines to Brazil, the newspaper said. -By William Vanvolsem; 556-244 3095; wvanvolsem@ap.org

To: Steve Fancy who wrote (9593)	11/11/1998 2:00:00 PM
From: Steve Fancy	Respond to of 22640

Emerging Mkts ADRs: Slow Session, Prices Flat To Higher Dow Jones Newswires NEW YORK -- Emerging market shares trading as American depositary receipts are slightly higher Wednesday, while volumes remain extremely low, traders said. Dealers said that after an initial jump following the Dow Jones Industrial Average, ADRs were coming off, with profit-taking still present. Investors have been on the sidelines all week, waiting for the Mexican budget to be announced, and more importantly, for a rescue package from multilateral lenders for Brazil, traders said. Also on the agenda is a decision Wednesday on Brazilian interest rates by monetary authorities. "We're still expecting an IMF package for Brazil this week, at between $35 billion and $40 billion," a dealer said. "And Brazil today isn't expected to lower (rates) aggressively because they still have to watch reserve levels." He added that if Brazil doesn't lower rates at all, it could lead to further profit-taking. Telebras, whose spinoffs will start trading Monday on the New York Stock Exchange, was up marginally, advancing 5/16 to $83 7/8 at 1600 GMT. Telebras HOLDRs were flat at $84. Among second-tier Brazilian ADRs, Globocabo continued its slow and steady ascent, up 2.5% to $2 9/16, setting a year-to-date high. Among Mexican ADRs, Grupo Televisa was trading higher, after it said Tuesday that it will restructure about $1.2 billion in debt over two to five years. At 1610 GMT Televisa ADRs were up 0.9% to $28 7/16. "The bottom line is that the market took the restructuring positively," a trader said. "The market kind of expected it, but it eliminates the uncertainty that they may have to sell shares to cover their debt." -By Margarita Palatnik; 201-938-2226; margarita.palatnik@cor.dowjones.com

To: Steve Fancy who wrote (9593)	11/11/1998 2:02:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Market Presidents Meet Govt On CPMF, Cofins Tax Dow Jones Newswires BRASILIA -- The presidents of the Sao Paulo stock exchange, or Bovespa, and the Commodities and Futures Exchange, or BM&F, are meeting with a top Finance Ministry official Wednesday to discuss aspects of the government's three-year austerity plan which affect financial markets. Alfredo Rizkallah, president of the Sao Paulo stock exchange or Bovespa, and Manoel Felix Cintra Neto, president of the Commodities and Futures Exchange known as BM&F, were taking part. Rizkallah said the meeting would focus on the proposed increase in the Financial Transactions Tax known as CPMF and the social security contribution known as Cofins. Before the meeting with Finance Ministry Executive Secretary Pedro Parente, Rizkallah told reporters he feels that the CPMF "is a perturbing factor in normalizing market transactions." The CPMF effects all transactions, including withdrawals and transfers, and was slated to expire Jan. 1. But in its Fiscal Stabilization Plan unveiled Oct. 28, the government proposed to extend the tax until 2001 and to increase the rate to 0.38% in 1999 from 0.20% this year. The increase is estimated to result in an extra 4 billion reals (BRR) in government revenue ($1=BRR1.19). The Cofins tax, a compulsory social security contribution charged on corporate billings, is currently at a rate of 2% for all companies outside the financial sector. Under the fiscal plan, the Cofins will be increased to 3% and extended to banks and other financial institutions. -By William Vanvolsem; 556-244 3095; wvanvolsem@ap.org

To: Steve Fancy who wrote (9593)	11/11/1998 2:05:00 PM
From: Steve Fancy	Respond to of 22640

****!!IMF Not Commenting On $42 Bln Brazil Package Reports Dow Jones Newswires WASHINGTON -- International Monetary Fund officials here wouldn't comment Wednesday on new reports that it will provide $18.00 billion toward a rescue package for Brazil totaling $42.00 billion. An IMF spokesman said the IMF won't be commenting on the Brazilian package "so close" to the a announcement, which is widely expected either later Wednesday or - more likely according to sources - Thursday. Earlier Wednesday, Brazil's daily financial newspaper Gazeta Mercantil reported that multilateral organizations - led by the IMF - will contribute $27.00 billion toward the total rescue package. Of this amount, the World Bank and the Inter-American Development Bank will provide $4.50 billion each, the newspaper reported. A further $13.70 billion-$15.20 billion is expected from 11 members of the group of 10 industrialized nations, comprising the U.S., Canada, France, Germany, Italy, Japan, the U.K., Switzerland, Sweden, Belgium and the Netherlands. Gazeta Mercantil said another $1.00 billion will be provided by the central banks of Austria, Denmark, Finland and Portugal, which will kick in $250 million apiece. The Brazilian package has been anticipated since early October but apparently has been delayed by elections in Brazil and also by haggling over the scope of aid from donor countries and the private sector, according to various sources. -By Damian Milverton, 202-862-9272; dmilverton@ap.org

To: Steve Fancy who wrote (9593)	11/11/1998 2:08:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Congress Faces Heavy Agenda On Budget, Fiscal Plan By WILLIAM VANVOLSEM Dow Jones Newswires BRASILIA -- A week after passing a long-delayed social security reform bill, Brazil's Congress faces the daunting task of working through a massive voting agenda before the end of the year. It's not only the sheer size of the work ahead for the next few weeks, but also its urgency and importance in trying to introduce fiscal responsibility and restore investor confidence in Brazil. Last week President Fernando Henrique Cardoso appealed to legislators just before the reform bill's vote by saying: "The whole world is watching." And it won't be much different Wednesday when Congress starts on its final list of duties before breaking up for its summer holidays, starting Dec. 15. Apart from urgent complementary legislation needed to officially promulgate the Social Security Bill, there is the fiscal stability plan unveiled on Oct. 28 that seeks to shave 28 billion reals (BRR)($1=BRR1.19) off the budget deficit next year. Some of the most controversial points of the plan - including tax hikes - require Congressional approval. Congress also will have to vote on the new 1999 federal budget proposal submitted by the government on Monday. As stipulated in the fiscal plan, the budget proposal cut BRR8.7 billion in spending from the original draft budget. And then there is a Tax Reform Bill - another piece of legislation considered crucial for structural reforms - due to be presented in early December. Following all-day meetings of government-allied legislators Tuesday, a tentative and tight schedule for the next few weeks has been worked out - "starting this Wednesday", according to congressional government leader Senator Jose Roberto Arruda. Arruda said priority number one at this stage is final approval of 12 provisional measures introduced by Cardoso and related to social security legislation. Congressional approval of provisional measures is required within 90 days. "Without the approval of these measures, the Social Security Bill won't be promulgated," an Arruda aide said. "These measures are...vital for the bill to make sense." The government wing's plan is to vote four measures Wednesday, with the other eight over the next two weeks. The measures need to be voted in joint sessions of the lower and upper houses and need only a simple majority of legislators present, subject to an opening quorum of at least half of all elected senators and deputies. According to Arruda's office, the next step is to start voting on points of the fiscal plan as from next week. These include seven provisional measures (same joint session conditions as for the social security measures), two complementary laws and two law proposals (simple majorities in both houses separate) and two constitutional amendments (three-fifth majorities in two voting rounds each in both houses). The budget proposal will go through a series of committee stages and joint plenum sessions of Congress beginning this week, before taking a full vote, which the government hopes will occur just before or on Dec. 15. Late Tuesday, Congress voted that the budget must be approved within 36 days of being submitted. The Tax Reform Bill, government allies concede, will have to be left for 1999. Next year's new legislature - elected on Oct. 4 - will convene on Feb. 1, but an extraordinary session of the old Congress during January isn't ruled out to finish off items left over from this year's session. -By William Vanvolsem; 556-244 3095; wvanvolsem@ap.org

To: Steve Fancy who wrote (9593)	11/11/1998 2:16:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Tele Norte Leste Details Voluntary Retirement Plan Dow Jones Newswires NEW YORK -- Brazilian telecommunications holding company Tele Norte Leste Participacoes SA (TNE) on Wednesday detailed the terms of a voluntary retirement program aimed at reducing its work force by 25%. Tele Norte Leste, through its 16 subsidiaries, will offer employees who have worked at least 25 years 60% of their yearly net earnings, spokesman Jose Carlos dos Santos told Dow Jones Newswires. For employees who have worked between 20 and 25 years, the company offers 50% of net earnings, whereas workers with one to 20 years of service will be entitled to 30% of yearly pay.

To: Steve Fancy who wrote (9593)	11/11/1998 3:16:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shares shed 2.9 pct on political concerns Reuters, Wednesday, November 11, 1998 at 14:14 SAO PAULO, Nov 11 (Reuters) - Brazilian shares turned south in late trade Wednesday on concern President Fernando Henrique Cardoso could be losing some of the support needed to pass tough austerity measures in Congress, traders said. Sao Paulo's key Bovespa index slumped 2.9 percent to 7,785 points after gaining more than 2 percent in early trade. Investors embarked on a wave of profit-taking "due to the president's supposed loss of political power," a trader at a local brokerage said. A Congressional commission responsible for drawing up the final draft of social security reforms had to cancel Wednesday's scheduled meeting because not enough members showed up, sparking concern over a possible loss of support. Markets hailed initial approval of the reforms earlier this month as a sign of widespread backing for Cardoso and his fiscal plan. One member of the commission said implementation of pension reforms could now take another three weeks. At the same time an influential politician said he will urge members of his party to oppose an increase in the financial transactions tax, another important component of Cardoso's fiscal tightening plan. Still, an expected reduction in Brazil's benchmark interest rates and the expected announcement of an international line of credit could boost Brazilian equities before the end of the week, traders said. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9593)	11/11/1998 3:19:00 PM
From: Steve Fancy	Respond to of 22640

Not good...week two and lawmakers already not showing up. I don't like this. sf

To: Steve Fancy who wrote (9593)	11/11/1998 3:21:00 PM
From: Steve Fancy	Respond to of 22640

Brazil forex mkts lose $80 mln, real firms-traders Reuters, Wednesday, November 11, 1998 at 14:35 SAO PAULO, Nov 11 (Reuters) - Brazil's foreign exchange markets were stable Wednesday, as the currency strengthened slightly and a moderate net $80 million left the country, according to preliminary traders' estimates. The real firmed 0.10 percent to 1.19 against the dollar in the commercial forex market as another day of small dollar outflows was projected. Russia's currency devaluation sparked a flood of capital flight that topped $30 billion in Brazil between August and September. The government's recently-announced austerity plan has stabilized the market on optimism it will be able to stave off a financial crisis and devaluation. As of 1700 local time/1900 GMT, some $112 million had left Brazil through the commercial forex market, according to the Central Bank, and another $54 million had left through the floating forex market, traders said. More inflows were expected to offset the outflows as later operations were registered. The currency strengthened 0.02 percent to 1.1970 reais against the dollar in the floating forex market and closed unchanged in the parallel forex market at 1.26 reais to the dollar. Copyright 1998, Reuters News Service