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

To: Tony van Werkhooven who wrote (11915)	1/18/1999 10:19:00 AM
From: Steve Fancy	Respond to of 22640

Per Yahoo, Bovespa is up almost 6% at 10:20. This is the reference I always use. quote.yahoo.com The question mark in my previous post was more astoundment. I thought it might go up again, but not 6% ahead of the big vote unless they're pretty darn sure it's going through with flying colors. sf

To: Tony van Werkhooven who wrote (11915)	1/18/1999 10:23:00 AM
From: Steve Fancy	Respond to of 22640

BC confirms it will maintain the real floating regime São Paulo, 18 - Brazil's Central Bank announced it has confirmed officially that it would allow the real to float freely against the dollar. Although the bank's move was widely expected by the market, its official communiqué released this morning represents a U-turn in the country's "crawling pegged" to the dollar forex exchange policy. From now on the bank will maintain the floating regime it introduced last Friday, at least for the next following days until the currency finds a new level. The bank explains though that it will intervene "occasionally with the aim to contain disordinate movements in the forex rate." (By Gustavo Freire)

To: Tony van Werkhooven who wrote (11915)	1/18/1999 10:24:00 AM
From: Steve Fancy	Respond to of 22640

Opposition governors to urge new economic policy São Paulo, 18 - State governors opposed to the federal government will gather Monday in Liberdade Palace, in Belo Horizonte, capital city of the southeastern state of Minas Gerais, to urge the creation of a new economic policy. The meeting is coordinated by Minas Gerais governor, Itamar Franco (PMDB), who decided to halt payment on the state's debt with the government for 90 days, hardly hitting Brazil's market and stock exchanges worldwide. Minas is Brazil's third wealthiest state. Left-winger PT leader, José Dirceu, said that Fernando "must democratize decisions and accept that changes in the economic policy are necessary". Franco has filed a lawsuit in the Justice Court requesting an injunction against the federal government's fund obstruction. Earlier this month, Minas Gerais had R$11m retained as a result of Franco's decision to declare moratorium. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal do Brasil/ O Globo)

To: Tony van Werkhooven who wrote (11915)	1/18/1999 10:25:00 AM
From: Steve Fancy	Respond to of 22640

Congress to vote servants contribution and CPMF São Paulo, 18 - President Fernando Henrique Cardoso is expected to meet Monday Chamber speaker, Michel Temer (PMDB-São Paulo), and Senate chairman, Antônio Carlos Magalhães (PFL-Bahia), to urge the passage of the bill creating a contribution for retired public servants and pensioners and increasing the percentage charged from working servants. The vote in Congress is scheduled for Wednesday (20). Tuesday, the government also expects to see approved in second round vote in the Senate the amendment raising the Temporary Tax on Financial Transfers (CPMF-the so-called check tax) quota to 0.38% from 0.20%. Both measures are crucial for Brazil's fiscal austerity program (PEF) success. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal do Brasil/ O Globo)

To: Tony van Werkhooven who wrote (11915)	1/18/1999 10:27:00 AM
From: Steve Fancy	Read Replies (11) \| Respond to of 22640

Tuesday, Wednesday and Thursday oughta be big days in Brazil, and will likely set the tone moving forward. Based on the enthusiasm in Brazil today, sucessful votes may push TBH back to the mid-eighties. Successful votes on all fronts, will hopefully slow outflows, allowing a drop in interest rates next week. I believe the monetary meeting may be next week. sf

To: Tony van Werkhooven who wrote (11915)	1/18/1999 10:29:00 AM
From: Steve Fancy	Respond to of 22640

Forex posts a US$358m deficit on Friday São Paulo, 18 - The Brazilian foreign exchange market posted a US$318m deficit (commercial plus floating dollar segments) last Friday. Financial inflow in the commercial dollar segment reached US$115.881m, below outflow which stood at US$491.451m. In the trade account, exports reached US$53.087m, against imports of US$36.431m. With the figures, the segment has accumulated a net deficit in the month of US$4.171bn. The floating dollar posted a surplus of US$40m, decreasing the segment's negative result in the month to less than US$1.3bn. (By Lucinda Pinto)

To: Tony van Werkhooven who wrote (11915)	1/18/1999 10:30:00 AM
From: Steve Fancy	Respond to of 22640

Reserves at R$ 36bn with IMF trench, a source says Brasília, 18 - A governmental source close to Brazil's Central Bank decisions and currently participant in a meeting between the bank and the International Monetary Fund in Washington told Agência Estado this morning that the country's reserves are at around US$ 36bn, including the trench already released by the International Monetary Fund of over US$ 5bn. The source also affirmed that the market will have to learn how to live with the new foreign exchange floating regime announced by the bank this morning, see related story. "Everyone will have to live with the new regime." Central Bank president, Franciso Lopes, has returned to Brazil last Sunday. However, Brazil's Finance minister, Pedro Malan, is expected to remain in Washington as he continues Brazil's talks with the fund. Among other important issues -- such as the reviewing of goals for domestic net credit, as well as primary surplus for the following three months -- the meeting's main goal was to decide upon how to conduct the country's forex policy after the announcement of real's free floating regime. (By Beatriz Abreu)

To: Tony van Werkhooven who wrote (11915)	1/18/1999 10:31:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Stocks rebound as fears over new forex regime subside After the staggering hike of over 33% last Friday, one of the highest nominal surge in history -- second only to the 36.05% high recorded in February 1991 -- investors expect the market to step back into reality today. The announcement this morning of the Brazilian Central Bank's new foreign exchange regime -- which culminated in the permanent free-float of the real -- was almost everything market participants were expecting and made bourses revert their downward trend, though it may not be enough to sustain another day of hikes. As a result, some analysts expect the São Paulo stock exchange (Bovespa) to lose part of their accumulated gains of Friday. Market participants also explain that bourses should probably remain hostage to developments in the country's capital, Brasília, where the government is trying to rush Congress to finish voting on tax-raising and cost-cutting measures to comply with the International Monetary Fund performance targets and so ensure the loans disbursements. "Approval (of the measures) will allow international investors to re-rate Brazil," the England-based newspaper Financial Times explains in its today's online edition. "Failure would fuel volatility, causing many more bouts of indigestion for investors." Investors will be also closely watching the developments of the meeting among states governors opposed to the federal government as they urge the creation of a new economic policy and the renegotiation of their debts with the federal government. The meeting, some say, may be pure TNT as it is expected to be conducted by Itamar Franco, Minas Gerais state governor. Franco decided some two weeks ago to halt payment on the state's debt with the government for 90-days, strongly hitting Brazil's market and stock exchanges worldwide. (By Paulo R. Monteiro Dias)