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

To: jayray who wrote (9677)	11/13/1998 2:07:00 PM
From: posjim	Respond to of 22640

Rubin was on live from white house for a 10 minute pep talk on IMF..sounded good..stock went back to 80..

To: jayray who wrote (9677)	11/13/1998 2:07:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Bovespa's foreign investment up in Nov 1-10 Reuters, Friday, November 13, 1998 at 08:27 SAO PAULO, Nov 13 (Reuters) - Foreign investment in Brazil's key Sao Paulo stock exchange (Bovespa) rose a net 222 million reais ($187 million) between November 1 and 10, the Bovespa said Friday. Total foreign buys totaled 990 million reais while foreign sales totaled 768 million reais, the Bovespa reported. Despite the Bovespa's net inflow of foreign investments in the period, the exchange said it has registered a net withdrawal of foreign investments of 1.723 billion reais so far this year. ($1=1.19 reais) Copyright 1998, Reuters News Service

To: jayray who wrote (9677)	11/13/1998 2:08:00 PM
From: Steve Fancy	Respond to of 22640

TABLE-Brazil Tele Centro Sul posts 9-mo net profit Reuters, Friday, November 13, 1998 at 09:32 SAO PAULO, Nov 13 (Reuters) - Brazil's Tele Centro Sul Participacoes, one of the 12 holding companies carved out of telephone monopoly Telebras for privatization last July, posted the following financial results between January and September. 9-mo 1998 9-mo 1997 Net profit 331.485 mln n/a Oper profit 354.351 mln n/a Net worth 5.121 bln n/a NOTE: All figures in Brazilian reais and not adjusted for inflation. A group including Telecom Italia (MILAN:TIT) and Brazil's Opportunity bank bought Tele Centro Sul Participacoes as part of the July 29 privatization of Telebras. Shares began trading in Brazil in September and Telebras ADRs are slated to be replaced by ADRs in the 12 holding companies on Nov. 16. No comparative figures were released. shasta.darlington@reuters.com)) Copyright 1998, Reuters News Service

To: jayray who wrote (9677)	11/13/1998 2:13:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Telerj Reports $110.4 Million In Nine-Month Earnings Dow Jones Online News, Friday, November 13, 1998 at 10:28 RIO DE JANEIRO -(Dow Jones)- Telecomunicacoes do Rio de Janeiro SA posted a net profit of 131.5 million reals ($110.4 million) in the first nine months of 1998, the company said late Thursday. Net profit in the third quarter totaled 41.8 million reals, down 33.8% from the 63.1 million reals in the previous quarter. Nine-month operating revenue was 1.53 billion reals; year-ago nine-month and third-quarter revenue figures weren't available. Telerj is part of Tele Norte Leste Participacoes SA (TNE), one of the three fixed wireline units of former federal holding company Telebras (TBR), privatized on July 29 this year. -By Jamie McGeever (5521) 580-9394; jmcgeever@ap.org Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.

To: jayray who wrote (9677)	11/13/1998 2:14:00 PM
From: Steve Fancy	Respond to of 22640

IMF Brazil program sees growth resuming, Fischer Reuters, Friday, November 13, 1998 at 12:12 WASHINGTON, Nov 13 (Reuters) - IMF First Deputy Managing Director Stanley Fischer said on Friday a $41 billion-plus package for Brazil assumed the country would see a revival in economic growth in the second quarter of next year. Speaking after the announcement of the deal, Fischer told a news conference that the International Monetary Fund's program also envisaged a slow reduction in Brazilian interest rates. "We've assumed that interest rates come down quite slowly during the course of the year," Fischer said. "We believe that as the program is implemented, interest rates will come down gradually," he added. He said the outlook for rates depended on political developments in Brazil, market perceptions of Brazil's progress and what occurred on international capital markets. Turning to other assumptions in the IMF package, Fischer saw an upturn in Brazil's economy in the first half of 1999. "Growth will resume around the second quarter," he said. He also said the package assumed the voluntary participation of banks. "The approach to the creditors will be a voluntary one, seeking their participation," he said. washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: jayray who wrote (9677)	11/13/1998 2:20:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Rubin says ESF fund to be used for Brazil Reuters, Friday, November 13, 1998 at 12:18 WASHINGTON, Nov 13 (Reuters) - A U.S. pledge of support for Brazil worth up to $5 billion will be guaranteed through the controversial Exchange Stabilization Fund, Treasury Secretary Robert Rubin said on Friday as he hailed a multinational pact to help the Latin American nation. The United States and 19 other nations announced their willingness to back an overall Brazilian package valued at more than $41 billion with up to $14.5 billion in bilateral support, mostly through guarantees of lending by the Bank for International Settlements. "The United States' portion of this this support will be to guarantee, through the Exchange Stabilization Fund, up to $5 billion," Rubin said in a statement. The ESF is a multi-billion-dollar pot of money set up in the 1930s to protect the U.S. dollar against fluctuation. The fund falls under Treasury's control, subject only to presidential approval. Its use in the past, to help Mexico and as a pledge in bailouts for South Korea and Indonesia, has provoked Congressional ire because it enables the Clinton administration to act without first securing approval from lawmakers. Rubin said Brazil's success in stabilizing its economy was "very important" to the United States and laid the groundwork for defending use of ESF funds if necessary. "Our decision to provide bilateral support reflects our commitment to strengthen the international financial system, guard against financial market contagion, and protect America's economic interests," Rubin said. He said Brazil, Latin America's largest economy, should be able to retain its stability. Analysts have warned a financial meltdown in Brazil would adversely affect the entire region. "Brazil's economic program -- fully implemented and with international support -- provides a solid basis for restored confidence and renewed growth," Rubin said. A separate statement from finance ministers and central bank governors of all 20 countries offering the bilateral aid said the first supply of money to Brazil likely would come along with the International Monetary Fund's initial disbursement. The IMF has to approve Brazil's reform program first. The IMF said $37 billion of the total package would be available to Brazil over the next 12 months if needed and it would contribute $18 billion to the package, with the World Bank and Inter-American Development Bank chipping in $4.5 billion each. Among the leading industrial nations offering the $14.5 billion of credits, the United States was the largest single bilateral contributor with a $5 billion loan. European Union countries were expected to provide $7.55 billion with lesser amounts to come from the remaining countries. The twenty countries are: Austria, Belgium, Britain, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United States. 898-8383, washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: jayray who wrote (9677)	11/13/1998 2:27:00 PM
From: Steve Fancy	Respond to of 22640

Brazil says IMF to release $9 bln immediately Reuters, Friday, November 13, 1998 at 12:23 BRASILIA, Nov 13 (Reuters) - The International Monetary Fund will release $9 billion to Brazil immediately after its three-year loan package is approved by the IMF board, Brazil's Finance Ministry said on Friday. The IMF could release another $9 billion, out of the total credit line worth more than $41 billion, in early 1999, the ministry said in a statement. The IMF said on Friday it would contribute $18 billion to the package. The World Bank, Inter-American Development Bank and leading industrial nations will furnish the remainder. Some $37 billion of the total could be made available to Brazil over the next 12 months. IMF First Deputy Managing Director Stanley Fischer, in Washington, said Friday that the IMF board is likely to consider the Brazil package in early December. The IMF says the additional $9 billion credit could be released before the first quarterly review of the deal, the Brazilian Finance Ministry said. Some 70 percent of the IMF funds will be part of the newly-created supplementary reserve facility, which charges higher interest rates and demands quicker repayment, the ministry said. Thirty percent of the funds will made available through a stand-by arrangement, providing short-term balance-of-payments support. Copyright 1998, Reuters News Service

To: jayray who wrote (9677)	11/13/1998 2:30:00 PM
From: Steve Fancy	Respond to of 22640

Malan hopes Brazil won't need all IMF-led credit Reuters, Friday, November 13, 1998 at 12:23 BRASILIA, Nov 13 (Reuters) - Brazilian Finance Minister Pedro Malan said he hoped Brazil would not need to use all the $41 billion-plus credit package sealed with the IMF, other international lending agencies and industrial nations on Friday. "We think that it won't be necessary to use the totality of the resources that have been put at Brazil's disposition," Malan told a news conference. Copyright 1998, Reuters News Service

To: jayray who wrote (9677)	11/13/1998 2:31:00 PM
From: Steve Fancy	Respond to of 22640

Brazil says no change in forex policy in IMF deal Reuters, Friday, November 13, 1998 at 12:35 BRASILIA, Nov 12 (Reuters) - Brazilian Finance Minister Pedro Malan confirmed on Friday that there will be no change in the country's foreign exchange policy following an accord on a loan package led by the International Monetary Fund (IMF). Malan reiterated the country's commitment to the current exchange policy at a news conference after the $41 billion loan package for Brazil was announced in a written statement by IMF Managing Director Michel Camdessus. Camdessus said that the Brazilian government had committed to maintaining the country's current exchange rate regime, firm monetary discipline, economic stability and to opening up the economy. Brazil's foreign exchange policy centers on a gradual and controlled depreciation of the real against the dollar within a crawling band. The depreciation rate is now around 7 percent per year. Copyright 1998, Reuters News Service

To: jayray who wrote (9677)	11/13/1998 2:45:00 PM
From: Steve Fancy	Read Replies (10) \| Respond to of 22640

Brazil's Malan sees budget deficit falling in 1999 Reuters, Friday, November 13, 1998 at 13:03 BRASILIA, Nov 13 (Reuters) - Brazilian Finance Minister Pedro Malan said Friday he expected Brazil's nominal public sector budget deficit -- widely considered the Achilles heel of the economy - to fall to 4.7 percent of GDP in 1999. Brazil's public sector budget deficit in nominal terms, including debt payments, is currently more than 7 percent of gross domestic product. Copyright 1998, Reuters News Service

To: jayray who wrote (9677)	11/13/1998 2:47:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil currency reserves $42.6 bln by end October Reuters, Friday, November 13, 1998 at 13:45 BRASILIA, Nov 13 (Reuters) - Brazil's foreign currency reserves fell to $42.6 billion by the end of October according to the international liquidity concept, which includes accounts receivable, the Finance Ministry said in a memorandum Friday. Reserves were down from $45.8 billion at the end of September, the ministry said in the document, which it said replaced the traditional letter of intent countries sign for loan agreements with the International Monetary Fund (IMF). The IMF and wealthy industrialized nations earlier announced a package of more than $41 billion for Brazil, hoping to avert an Asian-style financial meltdown in Latin America's biggest economy. Brazilian officials had been working with IMF representatives in Washington for a week on the terms of the letter of intent. The Finance Ministry forecast Brazil's current account deficit would drop to 3.5 percent of gross domestic product (GDP) in 1999 from 4.2 percent of GDP in 1998. Economists say the current account gap, which includes imports and exports of merchandise and payments and receipts for services such as shipping, banking and tourism, makes the domestic currency vulnerable to speculative attack. raquel.stenzel@reuters.com)) Copyright 1998, Reuters News Service