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

To: Tony van Werkhooven who wrote (11227)	1/6/1999 9:12:00 AM
From: Steve Fancy	Respond to of 22640

Brazil aims to sell Banespa (SAO:BESP4) by end April Reuters, Wednesday, January 06, 1999 at 08:55 BRASILIA, Jan 6 (Reuters) - Brazil aims to sell Banco do Estado de Sao Paulo (Banespa) by the end of April after repeated delays in the privatization auction, Paulo Zaghen, a Central Bank director, confirmed Wednesday. In response to journalists' questions, Zaghen confirmed that the federal government will try to sell Banespa within the next four months. The federal government had taken over Banespa -- owned by the Brazilian state of Sao Paulo -- as part of debt restructuring deal. Banco Fator was named official sale advisor last year and is due to announce a minimum price and sale schedule at the beginning of this year. Banespa, the fourth biggest bank in Brazil in terms of assets, should incite investor interest despite recent financial turmoil, Zaghen said. "We expect interest to be maintained, for the reason that it is a unique chance to get something this big," he said. Copyright 1999, Reuters News Service

To: Tony van Werkhooven who wrote (11227)	1/6/1999 9:14:00 AM
From: Steve Fancy	Respond to of 22640

Forex posts a US$163m deficit on Tuesday São Paulo, 6 - The Brazilian foreign exchange market posted a US$208m deficit (commercial plus floating dollar segments) last Tuesday. Financial inflow in the commercial dollar segment reached US$147.552m, below outflow which stood at US$315.525m. In the trade account, exports reached US$157.162m, against imports of US$153.593m. The segment registered a net deficit of US$163.404m yesterday, boosting the negative balance in the month to US$184.430m, while the floating dollar posted a deficit of US$45. (By Lucinda Pinto)

To: Tony van Werkhooven who wrote (11227)	1/6/1999 9:16:00 AM
From: Steve Fancy	Respond to of 22640

Brazil could redefine accord with IMF São Paulo, 6 - Brazil's lower net international reserves, which stood at US$36.2bn in December, US$2.3bn less than the accord reached with the International Monetary Fund (IMF) estimated, could lead the government to redefine domestic net credit goals agreed with the Fund. That could take place in February, when IMF representatives will come to Brazil to verify the fulfillment of the accord in the first three months it has been in effect. The accord suggests a solution to reverse the reserves downward trend: raise interest rates. But that is a measure the Central Bank has already discarded. (Jornal do Brasil)

To: Tony van Werkhooven who wrote (11227)	1/6/1999 9:18:00 AM
From: Steve Fancy	Respond to of 22640

Brazilians pessimistic about Cardoso's 2nd term São Paulo, 6 - A national survey conducted by the National Confederation of Transportation (CNT) and Vox Populi shows that Brazilians are not very enthusiastic about President Fernando Henrique Cardoso's second term of office. Of the interviewees, 36% believe the second term should not be different from the first, while 28% believe Cardoso's performance should worsen. (O Estado de S. Paulo/ Jornal da Tarde/ O Globo/ Correio Braziliense)

To: Tony van Werkhooven who wrote (11227)	1/6/1999 9:19:00 AM
From: Steve Fancy	Respond to of 22640

!!!Brazil Senate May Approve Check Tax Increase Today, Easing Budget Deficit Brazil Senate May Approve Check Tax Increase in Voting Today Wed, 6 Jan 1999, 12:17pm EDT Brasilia, Brazil, Jan. 6 (Bloomberg) -- The Brazilian senate could approve today an increase in a check tax, a key step in slashing the country's $64 billion budget deficit, lawmakers said. The first of two voting rounds in the senate could occur today, assuming lawmakers don't present any amendments to the bill, said Sen. Romeu Tuma, the government leader in the senate. Voting will only go ahead if the government is confident that it will get at least 49 votes -- or three fifths of the upper house -- in favor of the tax increase, which would see the tax rate almost double to 0.38 percent. The tax applies on all financial transactions, including bank withdrawals and checks. The approval of the check tax is essential to help the government raise about 4 billion reais ($3.3 billion) in extra revenue this year, part of a package of spending cuts and tax increases aimed at raising 28 billion reais this year to help cut by almost half the budget shortfall. Brazil needs to slash its deficit because it's been cut off from global capital markets as lenders have shied away from emerging markets following Russia's debt default in August. The approval of the measures are also a guarantee for further disbursements of $41.5 billion in promised aid from international lenders. Brazil has already received more than $9 billion from the International Monetary Fund and other lenders. Once the senate approves the increase, it moves on to the house for two votes and final approval. The Brazilian government got a boost late Tuesday when a court overturned a ruling that would have blocked extra payments to lawmakers for working through a special congressional session this month. Lawmakers had threatened not to show up to vote without the pay increases. The government needs at least three fifths of both houses in two voting rounds in each house -- that's 49 votes in the senate and 308 in the lower house -- to approve the increase in the check tax. Final approval of the tax increase is expected by March. The check tax, implemented by the government as a temporary measure in 1996, expires Jan. 23. The government introduced 6.7 billion reais in taxes and other revenue measures last week to make up for the shortfall until the new tax rate is approved and collection resumes, likely in July. The tax goes into effect 90 days after it becomes law. -------------------------------------------------------------------------------- © Copyright 1998, Bloomberg L.P. All Rights Reserved. latinvestor.com

To: Tony van Werkhooven who wrote (11227)	1/6/1999 9:23:00 AM
From: Steve Fancy	Respond to of 22640

Latin American Stocks Rise on Expectation of Brazilian Deficit Cutting Wed, 6 Jan 1999, 12:21pm EDT Sao Paulo, Jan. 6 (Bloomberg) -- Latin American stocks rose on expectations Brazil's Congress will begin voting today on measures to cut the budget deficit, paving the way for lower interest rates. Congress members had threatened not to vote on the 28- billion reais package of spending cuts and tax increases until they received money for the extra sessions. A court ruling blocking the payments was overturned, clearing the way for voting to begin. ''The focus today will be in the Congress,'' said Marcelo Borges,'' who helps manage $50 million at Tudor Asset Management in Sao Paulo. ''The market should open on a positive note today, as the voting is expected to finally start.'' Brazil's Ibovespa stock index rose as much as 2 percent, to 7252.27 and Chile's Ipsa index rose as much as 0.5 percent, to 101.71. Stocks moving in early trading in Brazil included Centrais Eletricas Brasileiras SA, up as much as 4.4 percent, to 23.5 reais; Petroleo Brasileiro SA, rising as much as 2.9 percent, to 141.99; Telecomunicacoes de Sao Paulo SA, up as much as 3.7 percent, to 167 and Usinas Siderurgicas de Minas Gerais SA, rising as much as 2 percent, to 3.04. Chile In Chile, Sociedad de Inversiones Oro Blanco SA rose as much as 2 percent, to 1 peso, Gener SA, the utility company, rose 1.8 percent, to 113, Vina San Pedro, the country's third-largest wine vineyard, rose 1.7 percent, to 2.95 and Enersis SA was up as much as 1.6 percent, to 248. Today the Brazilian Senate is expected to start voting on a financial transaction tax, or CPMF, which is expected to raise 7.3 billion reais over 12 months. By cutting the $64 billion deficit, Brazil may be able to slash interest rates, now at 29 percent, reducing company borrowing costs. Stocks in Asia and Europe rose and are also expected to rise in New York, which may bolster stocks in Latin America. Brazilian bonds rose. A basket of Brazil's dollar debt rose as much as 1.20 percent, according to J.P. Morgan & Co., while emerging market debt overall rose 0.70 percent. -------------------------------------------------------------------------------- © Copyright 1998, Bloomberg L.P. All Rights Reserved. latinvestor.com

To: Tony van Werkhooven who wrote (11227)	1/6/1999 10:03:00 AM
From: Steve Fancy	Respond to of 22640

Tony, if you can read Portuguese maybe you could check UBB's website for an earnings date. I'm having some trouble with the alta-vista translator. Do you know if UBB is larger than Banespa? unibanco.com.br Looks like some UBB buyers are coming back out of the woodwork today. Thanks, sf