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

To: Telemarker who wrote (11483)	1/12/1999 5:28:00 PM
From: Steve Fancy	Respond to of 22640

Cardoso state allies Reuters, Tuesday, January 12, 1999 at 16:54 "We support the reforms and the fiscal adjustment, and we vehemently appeal to the national congress to conclude its voting as rapidly as possible," said the communique, called the Sao Luis Letter. The governors said that without an effort by the states, Brazil would not be in a condition to lower interest rates, which they said was the key to reigniting economic growth. Copyright 1999, Reuters News Service

To: Telemarker who wrote (11483)	1/13/1999 3:41:00 AM
From: Steve Fancy	Respond to of 22640

Great post Telemark, thanks for the input. I have to ask though, if the big one were to occur, how much cheaper could UBB get. 7.5 seems like a giveaway, as does TBH at 46 something. I felt extreme panic that just kept getting worse. Never been through anything like it. Brazil may be the only country where a company with decent revenues could go to 0. These telco babies have earnings growth that are about as guaranteed as they come. The herd mentality is incredible. Hope you continue to contribute! sf

To: Telemarker who wrote (11483)	1/13/1999 4:10:00 AM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Menem sees no Brazil devaluation,reserves can cope Reuters, Tuesday, January 12, 1999 at 19:17 WASHINGTON, Jan 12 (Reuters) - Argentine President Carlos Menem does not expect neighboring Brazil to devalue its currency and believes reserves are adequate to cope with "any sort of crisis." Menem told a meeting in Washington that he had discussed currency issues with Brazilian President Fernando Henrique Cardoso after Cardoso's election last year. "I don't believe Brazil will devalue its currency," he said, noting that a $41 billion international rescue package had already contributed significantly to Brazil's finances. "With Brazilian reserves as they are at present they can face any sort of crisis or run in Brazil," he said through an interpreter. "They have lost a lot but they still have a lot." Markets fear that massive outflows of dollars may force Brazil to devalue its currency, the real, and traders are alarmed by a 90-day debt moratorium announced last week by the governor of one of Brazil's largest states. "They have one governor in one of their states who made terrible statements...that was criticized by other (opposition) governors," Menem said. "I believe this will probably help President Cardoso to have his draft laws passed by the Brazilian Congress." Congress must pass a series of spending laws for Brazil to win the next installment of its international loan package, which is being coordinated by the International Monetary Fund. 898-8383, washington.economic.newsroom@reuters.com)) Copyright 1999, Reuters News Service