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

To: Steve Fancy who wrote (11555)	1/13/1999 11:49:00 AM
From: Steve Fancy	Respond to of 22640

Clinton says monitoring Brazil situation closely Reuters, Wednesday, January 13, 1999 at 11:10 WASHINGTON, Jan 13 (Reuters) - U.S. President Bill Clinton said on Wednesday he was monitoring developments in Brazil closely and that his administration was working hard to help Latin America's top economy overcome a deep financial crisis. "We are monitoring the developments closely, especially what is going on in Brazil," Clinton told reporters at the White House. "We have been in contact with key Brazilian government officials, the G7 and other important countries. We've been in contact with the IMF." Brazil effectively devalued its currency, the real, by eight percent after its central bank governor quit, jolting currency, stock and bond markets across the globe. Clinton said he had been briefed on the situation in Brazil and developments in world financial markets by Treasury Secretary Robert Rubin and other members of his economic team earlier in the day. "Obviously we hope that the situation will be resolved in a satisfactory way, not only for the people of Brazil, but for all of the people in the Americas that want to continue to enjoy the good progress that all of us have enjoyed in the last several years," Clinton said. "And we're working hard to that end and will continue to do so." He added the United States had a "strong interest" in seeing Brazil carry through with a tough program of economic reforms agreed to as the basis for a $41.5 billion bailout put together by the International Monetary Fund and approved last month. Copyright 1999, Reuters News Service

To: Steve Fancy who wrote (11555)	1/13/1999 11:52:00 AM
From: Steve Fancy	Read Replies (4) \| Respond to of 22640

IMF looking at Brazil situation, no comment yet Reuters, Wednesday, January 13, 1999 at 10:53 WASHINGTON, Jan 13 (Reuters) - The International Monetary Fund is looking at the situation in Brazil but has no comment at this stage, an IMF spokesman said on Wednesday. The spokesman could not say whether the fund had been informed in advance of Brazil's plans to effectively devalue its currency, the real. "We are looking into the situation, but for the time being we do not have anything to say," he said. The IMF threw Brazil a $41.5 billion lifeline last month, including $18 billion of its own money in an international rescue package designed to stave off financial collapse and help the Brazilian authorities protect the real. An initial IMF payment of $5.3 billion was transferred soon after the loan was approved on Dec. 2 and Brazil can draw on an additional $4.5 billion by late February, provided it meets the terms of the reform package underpinning the loan. The IMF has said this payment could be brought forward if Brazil needs the money earlier. Brazil, faced with massive currency outflows and a crumbling stock market, effectively devalued the inflation-busting real by almost eight percent on Wednesday. 898-8383, washington.economic.newsroom@reuters.com)) Copyright 1999, Reuters News Service

To: Steve Fancy who wrote (11555)	1/13/1999 1:14:00 PM
From: Telemarker	Read Replies (1) \| Respond to of 22640

Looks encouraging, Steve. I am concerned about how much of the positive action in Brazil today has its origin with the U.S. "buy the dips" crowd. I don't really trust this market short term. Having said that, this is clearly a big opportunity in Latin stocks, if one can adhere to a 3-5 year holding period. In that light, I feel that we're just talking timing here in order to get the very best prices. Got a FAX this morning stating that this Brazilian event would probably land up providing the additional liquidity to push the DOW over 10,000 soon. The chap also advised looking at CVRD - symbol CVROY. In spite of my earlier post, I bought some more TBH early this morning. Trying to sell the UBB Apr. 10 puts today. Glad I waited a day, but frustrating all the same as not too many servers are answering me today. I deal with four different discount brokerages, and their ability to handle any modest increase in volume is pitiful. Kind of keeps me honest, though, as I believe that one should do their trading during quiet periods. Aside from all of the positive fundamentals relating to Brazilian phone demand, we should keep in mind the wildly positive demographics. If we can just get this fiscal stuff hammered out. I believe we are now on the heavily potholed road to doing just that. Who knows, the average Brazilian may be about to get the same message that the average American has gotten. That you can't depend on Uncle Sam to provide for your retirement. May yield the same positive effects for Brazilian stocks, longer term. Regards.