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

To: David Petty who wrote (11255)	1/6/1999 4:31:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Don't know what's going on the last couple days David. At least we got a blowout on the tax vote. Not sure why TBH seemed to sell off on the news other than perhaps the suggestion of second round voting being delayed until the 19th. Hope we see an up day tomorrow.

To: David Petty who wrote (11255)	1/6/1999 8:01:00 PM
From: Steve Fancy	Respond to of 22640

Well David, per the previous story, looks like we now know what happened at the end of the day. As I stated yesterday, seems something always happens to disappoint. Who knows what this will do going forward. Even Cardoso's comment sounded kind of negative. sf

To: David Petty who wrote (11255)	1/6/1999 8:11:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shrs rally at close as Senate oks key Reuters, Wednesday, January 06, 1999 at 16:01 The upper house on Wednesday approved a new, higher version of the CPMF financial transactions tax and the bill now faces a second vote in the Senate later in the month. It will then be submitted to the lower house. The controversial bill is part of the $84 billion anti-crisis austerity plan that the government has promised to win over financial aid from the international community. Meanwhile, investors also cheered stock rises in major European bourses on Wednesday, especially in Lisbon, where prices jumped 3.8 percent. On Wall Street, the Dow Jones Index (INDEX:$INDU) was up 2.5 percent at the time of Sao Paulo's close. Volume on the Sao Paulo bourse was a mere $300 million however, as investors slowly returned from their holidays. Among other blue-chip gainers, fixed line telephone firm Tele Norte Leste preferred (SAO:TNLP4) rose 8.28 percent to 17.39 reais, while Petrobras preferred (SAO:PETR4) climbed 3.28 percent to 142.50 reais and Eletrobras preferred (SAO:ELET6) rose 4.89 percent to 23.60 reais. sao.paulo.newsroom@reuters.com)) Copyright 1999, Reuters News Service

To: David Petty who wrote (11255)	1/6/1999 8:17:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Bovespa bourse reelects Rizkallah as head Reuters, Wednesday, January 06, 1999 at 17:13 SAO PAULO, Jan 6 (Reuters) - Brazil's key bourse Sao Paulo Stock Exchange (Bovespa) on Wednesday reelected Alfredo Rizkallah as its president for a fourth consecutive term, the bourse said. Rizkallah, the owner of a medium-sized local brokerage Corretora Novacao in Sao Paulo, has served as Bovespa's president since 1996. Copyright 1999, Reuters News Service

To: David Petty who wrote (11255)	1/6/1999 8:19:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Emerging bonds slide after Brazil state moratorium Reuters, Wednesday, January 06, 1999 at 17:13 NEW YORK, Jan 6 (Reuters) - Emerging market bond prices ended mixed on Wednesday, giving up nearly all the day's gains late in the session after the Brazilian state of Minas Gerais declared a 90-day moratorium on debt payments to the central government. "Prices dropped a point or two on the news from Minas Gerais," said a trader. "This may be grandstanding by (Governor) Itamar Franco, but people don't like it," he said. "It's a negative development overall for a country that is going through a crisis," said Paolo Leme, analyst at Goldman Sachs & Co. "The debt with the states has been renegotiated at least three times. Now this would be the fourth time. It is important that the (Cardoso) government sticks by its program," said Leme. Franco is regarded as an independent politician who may be alone in defiance of the government of President Henrique Fernando Cardoso. But if other states follwed suit, it would become difficult for Brazil's Treasury to raise money from the states, analysts said. Brazil "EI" bonds <BRAZEI=RR>, up 1/2 point early Wednesday, dropped 2-1/4 late in the day to bid at 66. Some traders raised questions as to whether the debt moratorium would cover outstanding Eurobonds issued by Minas Gerais. The state has two outstanding Eurobonds, each $100 million. The 7-7/8 bonds mature this Feb. 10, 1999, within the period covered by the debt moratorium. There is also a coupon payment due on Feb. 10 on the 8-1/4 bond maturing on the same date in 2000, traders said. News of the debt moratorium overshadowed earlier developments in Brazil when the Senate approved a new, higher version of the CPMF financial transactions tax, a key part of the government's anti-crisis austerity plan. The measure was passed in the first full vote in the upper house. Minas Gerais' debt with the federal government totals around 18 billion reais ($15 billion). Franco raised the possibility of a moratorium shortly after taking office Jan. 1, prompting Cardoso to threaten to use special powers to recover the debt payments. "The government is now at the crux of the adjustment program. Finally, the (fiscal) adjustment is beginning to bite. But if the government lets go at this point, it will lose" what it has built through the fiscal program so far, Leme said. The decline in prices of Brazil bonds affected the rest of the emerging bond market. Argentina par bonds <ARGPAR=RR> bonds declined 3/4 of a point to 73-1/4. Copyright 1999, Reuters News Service