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

To: Bob Howarth who wrote (11382)	1/11/1999 10:54:00 AM
From: Steve Fancy	Respond to of 22640

Cardoso: 'Lower rates depend on balanced budget' - rpt Brasília, 11 - President Fernando Henrique Cardoso affirmed on Friday at the opening of his second-term of office first ministerial meeting that there is no need to change his governing system, as it has already been approved by the Brazilian population when they reelected him in first-round voting. He added that he was reelected to crush the crisis and not to administer it. President Cardoso asked his ministers that his decisions be made based on the effects they will have on the population. According to Cardoso, his government's main aim is to improve the standard of living of the Brazilian people by mitigating social injustice as well as improving income distribution. The president also pointed out that all efforts towards putting an end to privileges is met with strong resistance by those who have them. Cardoso stressed that his concern over the social area does not overshadow his worries about the country's economy. He said: "Brazil is anxious for lower interest rates". The president said it would be impossible to reduce interest rates without a balanced budget. The president further stated that his first term of office's main task was to raise Brazil's credibility, but now it is to maintain it. He pleaded that his ministers only divulge their decisions after they have been effectively made, so as to avoid speculation. Cardoso affirmed the government would succeed in achieving its fiscal efforts of R$28bn. He affirmed there were only a handful of measures pending approval, like the CPMF -- the so-called check tax -- and the provisional measure raising civil servants' social security contributions. According to Cardoso, the deficit weighing heavier in the country's public deficit is that of the social security system, whose expenditures amount to R$ 21bn, while its contributions total only R$ 2bn. The president also sent an indirect message to Minas Gerais state governor, Itamar Franco, saying "the president is the country's highest authority", and added that, "everyone must abide by the laws of the country, with no exception. This is not a threat, this is democracy." Cardoso ended his speech by reaffirming his conviction that Brazil will really advance this year. (By Adriana Fernandes, Nelson Breve and José Ramos)

To: Bob Howarth who wrote (11382)	1/11/1999 10:55:00 AM
From: Steve Fancy	Respond to of 22640

Fipe registers deflation for the 1st time in history -rpt São Paulo, 11 - The University of São Paulo's Economic Research Foundation (Fipe) registered last year, for the first time since 1939, a deflation rate in São Paulo. The Consumer Price Index (IPC) closed out 1998 at -1.79%. "It is a bitter celebration," Fipe's head, Juarez Rizzieri, said. According to him, lower prices were a result of the economic slowdown, caused by falling demand, higher unemployment, the international crisis and the economic package release. Of the seven items researched by Fipe, health (2.46%) and tuition (4.97%) were the only ones to surge. See below the oscillations of Fipe's main components: Foodstuffs -0.57% Housing -1.20% Transportation -1.75% Personal expenses -4.20% Clothing -9.30% Health 2.46% Tuition 4.97% Total -1.79% (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ O Globo/ Correio Braziliense)

To: Bob Howarth who wrote (11382)	1/11/1999 10:56:00 AM
From: Steve Fancy	Respond to of 22640

Covas inaugurates with harsh criticism on Minas Gerais São Paulo, 11 - São Paulo governor Mário Covas criticized Sunday at his inauguration counterpart Itamar Franco's decision to halt the payments on debt to the federal government for 90 days and reaffirmed that São Paulo would continue paying its debts with the Union. Franco (PMDB) is the governor of Minas Gerais, Brazil's third wealthiest state. Covas also defended the urgent reduction of interest rates so as to enable the country's development. In addition, he attacked the government's "orthodox" economic policy, preferably based on the maintenance of the currency stability rather than on economic growth incentive. "Stability and development are contradictory," he said. The governor, who underwent a surgery for the removal of a malign tumor on December 14, affirmed that, in the face of adversities, there were only three attitudes left: "face them, fight them and defeat them'. In spite of the budget reduction by R$ 1.8bn, some of Covas' main goals in his second term of office is attract over R$ 50bn in private investments and create 3.6 million new jobs. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal do Brasil/ O Globo/ Correio Braziliense. Edited by Sergio Caldas)

To: Bob Howarth who wrote (11382)	1/11/1999 10:57:00 AM
From: Steve Fancy	Respond to of 22640

Governors react against Itamar's default São Paulo, 11 - Other state governors reacted negatively to Minas Gerais' 90-day moratorium. Government allied governors will meet Tuesday in São Luís, capital city of the northeastern state of Maranhão, to express support to President Fernando Henrique Cardoso and rejection of Minas Gerais' default. They will also defend the reduction of interest rates and the resumption of economic growth. "We could contribute so as Congress conclude the fiscal austerity program (PEF) votings. But the government will also have to revise the current economic policy," Maranhão governor Roseana Sarney, defended. Governors fear that Minas Gerais' default could further damage Brazil's international credibility. Over the weekend, Cardoso said he was willing to meet Itamar and find a solution for Minas Gerais. "The President will receive Itamar without any hard feelings or regrets," PMDB head, Senator Jáder Barbalho (Pará), said. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal do Brasil/ O Globo)

To: Bob Howarth who wrote (11382)	1/11/1999 10:58:00 AM
From: Steve Fancy	Respond to of 22640

Forex posts a US$71.919m deficit on Friday São Paulo, 11 - The Brazilian foreign exchange market posted a US$141m deficit (commercial plus floating dollar segments) last Friday. Financial inflow in the commercial dollar segment reached US$198.858m, below outflow which stood at US$300.506m. In the trade account, exports reached US$166.293m, against imports of US$136.564m. The floating dollar posted a deficit of US$69m, raising the segment's negative result in the month to US$216m from US$118m. (By Lucinda Pinto)

To: Bob Howarth who wrote (11382)	1/11/1999 10:59:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Stocks down on lack of market-moving news and moratorium Market participants told Agência Estado this morning that the lack of market-moving news, as well as ongoing repercussions on the 90-day moratorium on Federal debts payment declared by Minas Gerais last Wednesday are to weigh heavily on the market's back during today's session. A day of thin volume and little businesses, analysts say, should also be expected. Although rumors last Friday that Brazil's Finance minister was about to be ousted were not confirmed, the market has nothing to celebrate, a dealer said. "The market is in great need of positive news to get it going, and currently, the lack of market-moving news is the same as bad news."