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

To: wl9839 who wrote (12079)	1/20/1999 3:48:00 PM
From: steve kammerer	Respond to of 22640

Off Thread but not Off Topic. I am amazed that BEFORE devaluation TBH sunk to the level that was damn close to where the Real went. People were talking about 10% and 20 and all the way up to 50% devaluation. I'm not talking about inside information. Maybe I'm being naive but the market seemed to zero in on approx true evaluation. (But not IMHO the true value. So far I've lost over $25,000 so I guess maybe I'm not a judge of the true value of TBR/TBH and babies. I do have some paper profits on purchases of UBB, TCS, TCP and TNE when the prices first dropped. Hope the vote comes soon. stevek

To: wl9839 who wrote (12079)	1/20/1999 4:00:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Thanks Warren...encouraging. Wonder what caused the sudden change of heart. Would seem to suggest everything will be OK. Regardless, I got my puts at 5 1/8. Thanks to you Warren I didn't panic and left my order. Was ready to change it to 5 3/4 - 6. Now I can go watch my sons basketball game and breath easier. Pretty much covered either way. This one was just to crucial to go uncovered. Art Cashin on CNBC seemed to suggest a failed vote will likely take US markets down again also. I've been wondering when focus may revert back to the Itmar activities. Sounds like this situation has been worsening. Probably going to be looking at heavy outflows today. Hopefully the last day. Heavy, heavy volume on UBB today. Many times normal volume. sf

To: wl9839 who wrote (12079)	1/20/1999 4:07:00 PM
From: Steve Fancy	Respond to of 22640

Hey, another good sign...I've got my Reuters feed back. Will post a few, then be back around 6:00. Good luck to everyone. sf

To: wl9839 who wrote (12079)	1/20/1999 4:11:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

FOCUS-Brazil will honor debts,finmin tells bankers Reuters, Wednesday, January 20, 1999 at 12:35 By Apu Sikri NEW YORK, Jan 20 (Reuters) - Brazil will honor all loan obligations and do its best to contain a domestic financial crisis that has threatened global financial stability, Finance Minister Pedro Malan told a dozen top bankers on Wednesday. "We are not going to have any domestic debt restructuring," Malan told reporters after meeting with U.S. banking leaders at the Federal Reserve Bank of New York. Brazil owes international banks about $70 billion in short-term debt, according to bankers, and another $300 billion to domestic financial institutions. Economists have questioned the Latin American giant's ability to meet its obligations. Malan on Wednesday assured bankers -- including Goldman Sachs co-chairman Jon Corzine, Merrill Lynch chief executive David Komansky and financier George Soros -- that Brazil will not intervene in the currency markets to defend its currency, the real. Malan called the meeting "constructive." Brazil hopes to win back investor confidence after a decision last Friday to float the real -- a move that will help the country preserve precious foreign exchange reserves. "It is up to the markets to decide what is the appropriate exchange rate. We do not have intervention points, virtual bands, notional bands. And we do not have a hidden agenda," Malan told reporters after the meeting. Brazil has also ruled out adoption of a currency board -- which would link the value of the real to the dollar and take away most decision-making from the central bank, Malan said. "We have decided on a floating exchange rate regime and this is the regime we are going to have," Malan said. "This is not a criticism of any country that adopts the currency board scheme." Brazil's neighbor Argentina has implemented a currency board deemed successful by most economists. The real has lost more than a quarter of its value against the dollar since last week's devaluation and subsequent abandoning of exchange rate bands. Bankers have privately asserted that Brazil needs the support of private lenders to avoid a debt default of the sort that trapped Russia last year and set off panic in financial markets. Official lenders led by the International Monetary Fund and the United States arranged $41.5 billion in loans to Brazil late last year to contain financial turmoil that threatened to infect Latin America and other regions. Malan was accompanied by Secretary of Economic Policy Amaury Bier and International Affairs Secretary Marcos Caramuru. Copyright 1999, Reuters News Service