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

To: Steve Fancy who wrote (9649)	11/12/1998 6:25:00 PM
From: Fred Levine	Read Replies (1) \| Respond to of 22640

Steve and all-- This may be good news, and we can use it.. Thursday November 12, 5:43 pm Eastern Time Brazil likely to sign up for IMF package Fri-govt BRASILIA, Nov 12 (Reuters) - Brazil's government will probably sign a letter of intent with the International Monetary Fund Friday, finalizing the terms of a multibillion- dollar credit package, the Finance Ministry said Thursday. ''It's probably going to be signed tomorrow,'' said a ministry spokesman. Earlier Thursday, officials involved in the talks in Washington said they might announce Friday a package of emergency loans of up to $45 billion to stop Latin America's biggest economy from succumbing to a Russia-style devaluation. The package is expected to include as much as $18 billion in credit from the IMF, $4.5 billion from the World Bank, $3.4 billion from the Inter-American Development Bank and billions more dollars from the United States, Japan and other nations. The ministry spokesman said the announcement of the terms of the deal would be made simultaneously in Brasilia and Washington after the signing of the letter of intent. Finance Minister Pedro Malan would then probably travel to the United States Monday to speak to investors about Brazil's economy, followed by further speeches Tuesday in Germany and either France or Britain. fred

To: Steve Fancy who wrote (9649)	11/12/1998 6:44:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shares end sharply off in nervous trade Reuters, Thursday, November 12, 1998 at 16:06 SAO PAULO, Nov 12 (Reuters) - Brazilian stocks ended sharply off on Thursday as investors, waiting for an announcement of an International Monetary Fund (IMF) loan package, focused on domestic politics in an absence of news. The key Bovespa index (INDEX:$BVSP.X) tumbled 3.76 percent to 7,471 points as investors grew worried that fiscal reforms might get stuck in Congress amid vague reports that Brazilian authorities were investigating a suspected attempt to blackmail government officials including President Fernando Henrique Cardoso. "The reports are becoming a good reason for profit-takers, although they are very vague," one local trader said. Government intelligence officials handed the Justice Ministry documents which had been sent anonymously to the government, claiming that Cardoso had millions of dollars stashed in the Cayman Islands, authorities said Wednesday. But presidential spokesman Sergio Amaral said there was no truth to claims that Cardoso had any offshore interests. Market players tuned into the reports on Thursday, however, concerned that any ill developments may delay Congressional approval of fiscal austerity reforms, which could allow Brazil to save $84 billion over the next three years. The austerity measures were required of Brazil to secure IMF aid. Meanwhile, the IMF-led aid, possibly as much as $45 billion, was not expected to be announced before Friday. The Brazilian Central Bank late on Wednesday lowered its basic assistance rate (Tban) to 42.25 percent a year from 49.75 percent, but the credit easing was also not enough to spark a rally in equities, traders said. Among the blue-chips, Telebras preferred receipt (SAO:RCTB40) lost 3.81 percent to 93.50 reais, while Petrobras preferred (SAO:PETR4) dropped 5.03 percent 170 reais and Vale do Rio Doce preferred (SAO:VALE5) fell 2.34 percent to 17.10 reais. noriko.yamaguchi@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9649)	11/12/1998 6:46:00 PM
From: Steve Fancy	Respond to of 22640

RESEARCH ALERT-Brazil cellular companies started Reuters, Thursday, November 12, 1998 at 15:59 SAO PAULO, Nov 12 (Reuters) - ABN AMRO Bank initiated Thursday coverage of four cellular telephone companies that resulted from the split and privatization of Brazilian telecommunications holding Telebras. ABN AMRO rated both the operating units and holding companies of Telesp Celular (SAO:TSPC6), Tele Celular Sul (SAO:TCSL4) Telemig Celular (SAO:TMGC6) and Telepar Celular (SAO:TPRC6). Telemig holding and operator both received buy recommendations for their efficiency and good service, as did the Tele Celular Sul and Telepar operators for their growth potential. Telesp, the biggest of the Telebras cellular spinoffs, was given maintain recommendations for the holding and operator. While Telesp, controlled by Portugal Telecom (LIS:PTCO), should expand with more competitive prices, ABN AMRO said its growth potential is already factored into the price. (Sao Paulo newsroom 55 11 248 5537)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9649)	11/12/1998 6:48:00 PM
From: Steve Fancy	Respond to of 22640

IADB sees Latam growth falling to 1-1.5 pct in '99 Reuters, Thursday, November 12, 1998 at 14:15 WASHINGTON, Nov 12 (Reuters) - Inter-American Development Bank President Enrique Iglesias said on Thursday he expected growth across Latin America to slow in 1999 to 1-1.5 percent from 2.5 percent this year because of the global crisis. Iglesias also told a news conference that the bank's board of governors was expected later on Thursday to approve $10 billion in new emergency financing to help Latin America get through the crisis. That package will include $3.4 billion for Brazil. The IADB in September approved a $1.1 billion loan for Brazil to help in the development of small- and medium-sized enterprises. The $3.4 billion IADB loan, part of a much larger international rescue package, will charge Brazil about four percentage points over market rates and run for five years. Iglesias said two other Latin American states had asked for emergency loans from the IADB. He said the bank's board would consider a $2.5 billion loan for Argentina and a $1.25 billion credit for Colombia during its Thursday-Friday session. Iglesias said there were clear signs that Latin America was overcoming the financial crisis, which started in Asia and has spread to emerging markets around the globe. "The external situation has calmed down a lot," Iglesias said. He said an recent agreement between Group of Seven industrial nations to create a new precautionary credit line at the IMF had helped to restore calm to markets. Iglesias said Brazil's international rescue package, expected to be announced as early as Friday, would also help shore up investor confidence. He called Brazil's economic program "serious and credible." Iglesias noted that Latin American shares were up about 50 percent overall in the last two months in a sign the region was recovering. 898-8383, washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9649)	11/12/1998 6:50:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Fedl Police Open Probe On Cardoso Charges - Estado Dow Jones Newswires SAO PAULO -- Brazil's Federal Police Department announced Thursday that a special investigation into charges that top government officials have an account in the Cayman Islands will be conducted, the Estado news agency reported. Federal Police general director Vicente Chelotti said that all those allegedly involved "will be invited to provide clarifications," including President Fernando Henrique Cardoso, Estado said. Chelloti said that subpoenas are already being prepared. The director said that he will ask the attorney general's office of the Federal District to appoint someone to monitor the investigation process. Local media reports over the weekend alleged the existence of a joint account worth $368 million held by Cardoso, Health Minister Jose Serra, Sao Paulo governor Mario Covas and former Communications Minister Sergio Motta, who died in April. Chelotti said that the testimony of those allegedly involved may be provided in written statements. He said that the investigation will attempt to determine if the Cayman Islands-based company cited in recent reports really exists and if the government officials are actually involved, Estado reported. "If this is proven to be true, the situation becomes more of a political issue than a police matter," Chelotti said, saying that such evidence would then be turned over to Congress. The director said, however, that if the allegations turn out to be false, it would fall upon the police to determine who was responsible for a blackmail attempt. Chelotti said that bank secrecy laws and the fact that Brazil doesn't have a police cooperation agreement with the Cayman Islands may make the investigation difficult.

To: Steve Fancy who wrote (9649)	11/12/1998 6:54:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Telesp Celular Participacoes 9-Mo Net Pft BRR258M Dow Jones Newswires Telesp Celular Participacoes SA - Sao Paulo, Brazil Nine months ending September 30: Figures in reals (BRR)($1=BRR1.19). 1998 1997 Operating revenue 1.51 bln N/A Operating profit 524.5 mln N/A Net profit 258.1 mln N/A Earnings per share (EPS)-a 0.77 N/A Telesp Celular SA - Sao Paulo, Brazil Nine months ending September 30: Figures in reals (BRR)($1=BRR1.19). 1998 1997 Operating revenue 1.51 bln N/A Operating profit 507.1 mln N/A Net profit 344.5 mln N/A Earnings per share (EPS)-a 6.01 N/A a. per thousand shares NOTE: Telesp Celular Participacoes, a spinoff of former federal holding Telecomunicacoes Brasileiras, or Telebras (TBR), holds a majority stake in Telesp Celular, which provides cellular phone service in the state of Sao Paulo. The companies trade separately.

To: Steve Fancy who wrote (9649)	11/12/1998 6:55:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Fin Min: IMF Aid "Probably" Unveiled Friday Dow Jones Newswires BRASILIA -- The eagerly expected announcement of a multilateral aid package for Brazil led by the International Monetary Fund "will probably be announced Friday," a spokeswoman at the Finance Ministry said Thursday. She said the announcement will be made by both the Brazilian government in Brasilia and by the IMF in Washington but couldn't confirm whether the statements will be simultaneous. The spokeswoman also couldn't give an estimated time for the likely announcement nor say by whom the package and its details will be announced first. Earlier Thursday, local media reports had already hinted that the package - estimated at $42 billion - was wrapped up and ready to be unveiled Friday or Tuesday. Estado agency quoted an unnamed member of the Brazilian team of negotiators on the deal as saying that the delay in the announcement is the result of careful reviews of the text of the agreement. The package has been widely expected since the beginning of the week and prompted positive sentiment on local stock markets. However, when official news came mid-afternoon that it wouldn't be unveiled Thursday, shares on the Sao Paulo stock exchange, known as Bovespa, took a hammering and fell 2.8% within minutes to close at down 3.7% in preliminary figures. President Fernando Henrique Cardoso won't be in the capital Friday and is scheduled to address a ceremony at the Navy Training College in Rio de Janeiro. -By William Vanvolsem; 5561-244 3095; wvanvolsem@ap.org

To: Steve Fancy who wrote (9649)	11/12/1998 6:58:00 PM
From: Steve Fancy	Respond to of 22640

Salomon economist sees Brazil package at $42 bln Reuters, Thursday, November 12, 1998 at 16:45 By Apu Sikri NEW YORK, Nov 12 (Reuters) - Salomon Smith Barney projects a multilateral assistance package of around $42 billion for Brazil, with about $5 billion coming from the United States, Joe Petry, the firm's Latin American economist, said on Thursday. The International Monetary Fund would contribute about $18 billion, of which about 70 percent would be available fairly rapidly, said Petry. This would be disbursed in two tranches, with the first tranche made available within a few weeks of signing and the second tranche within three weeks of signing, he said. Petry said his information is based on a variety of sources. He declined to elaborate. The analysis by the Citigroup Inc. (NYSE:CCI) unit's economist is among the first from U.S. analysts to give a detailed breakdown of what individual country contributions are likely to be. Meanwhile in Washington, officials involved in the negotiations told Reuters the package would likely be announced Friday and would be about $45 billion. They confirmed that the IMF would provide about $18 billion to Brazil with the World Bank putting in about $4.5 billion. Salomon's Petry said the package would probably be a two- to three-year arrangement with a supplementary reserve facility. Of the remaining of $24 billion in assistance, the World Bank and the Inter-American Development Bank (IADB) would each contribute about $4.5 billion, he said. With the United States contributing $5 billion, the United Kingdom, Italy, France and Germany would each put in about $1.25 billion, the economist said. Salomon communicated similar information to its clients earlier in the day, said money managers. Japan and Spain would likely put in $1 billion each, Petry said. Canada is likely to contribute $750 million and Sweden, Belgium, Netherlands, Switzerland, Portugal, Finland, Denmark and Austria contributing $250 million each, the Salomon Smith Barney economist said. The Bank for International Settlements (BIS), the international body that coordinates between banks worldwide, is expected to put in about $250 million, Petry said. The investment bank's estimates are similar to those put out by press reports in Brazil based on sources within the Brazil government. The funds will be utilized to build up reserves with a target of about $50 billion in foreign exchange reserves by the end of the year and also to meet any reserve requirements. In addition to supporting reserves, the government's policy objectives would be to limit contraction in the economy, improve exports and slash interest rates in half to the low 20-percent range, Petry said. Short-term rates in Brazil currently are at 42 percent. An international effort to provide assistance to Brazil was put in motion late summer after Russia's effective default on domestic debt threw emerging markets into a new financial crisis. Brazil was the worst hit as investors worried about the country's large fiscal deficit, bloated debt and low level of exports. Petry was until recently an economist at Citicorp Securities until its parent company, Citicorp, merged with Travelers Group Inc., parent of Salomon Smith Barney. Salomon now is a unit of the combined company, Citigroup. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9649)	11/12/1998 7:00:00 PM
From: Steve Fancy	Read Replies (3) \| Respond to of 22640

Brazil likely to sign up for IMF package Fri-govt Reuters, Thursday, November 12, 1998 at 17:44 BRASILIA, Nov 12 (Reuters) - Brazil's government will probably sign a letter of intent with the International Monetary Fund Friday, finalizing the terms of a multibillion- dollar credit package, the Finance Ministry said Thursday. "It's probably going to be signed tomorrow," said a ministry spokesman. Earlier Thursday, officials involved in the talks in Washington said they might announce Friday a package of emergency loans of up to $45 billion to stop Latin America's biggest economy from succumbing to a Russia-style devaluation. The package is expected to include as much as $18 billion in credit from the IMF, $4.5 billion from the World Bank, $3.4 billion from the Inter-American Development Bank and billions more dollars from the United States, Japan and other nations. The ministry spokesman said the announcement of the terms of the deal would be made simultaneously in Brasilia and Washington after the signing of the letter of intent. Finance Minister Pedro Malan would then probably travel to the United States Monday to speak to investors about Brazil's economy, followed by further speeches Tuesday in Germany and either France or Britain. william.schomberg@reuters.com)) Copyright 1998, Reuters News Service