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

To: Steve Fancy who wrote (12094)	1/20/1999 6:20:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil shrs end up 4 pct, hopeful on Congress vote Reuters, Wednesday, January 20, 1999 at 15:59 SAO PAULO, Jan 20 (Reuters) - Brazilian stocks ended 4 percent higher Wednesday as investors pinned their hopes on a key anti-crisis measure finally clearing the lower house of Congress later today, traders said. The market's blue-chip Bovespa index (INDEX:$BVSP.X) finished up 3.98 percent at 7,674 points on substantial turnover of about $412 million. The market's bellwether issue Telebras preferred receipt (SAO:RCTB40) added 2.47 percent to 112 reais. "A good outlook on the vote gave the market a kick because investors remembered how much the market had lost right after this same bill was rejected in December," said Roque Sut Ribeiro, fund manager at Banco Marka in Rio de Janeiro. SAO PAULO, Jan 20 (Reuters) - Brazilian stocks ended 4 percent higher Wednesday as investors pinned their hopes on a key anti-crisis measure finally clearing the lower house of Congress later today, traders said. The market's blue-chip Bovespa index (INDEX:$BVSP.X) finished up 3.98 percent at 7,674 points on substantial turnover of about $412 million. The market's bellwether issue Telebras preferred receipt (SAO:RCTB40) added 2.47 percent to 112 reais. "A good outlook on the vote gave the market a kick because investors remembered how much the market had lost right after this same bill was rejected in December," said Roque Sut Ribeiro, fund manager at Banco Marka in Rio de Janeiro. Investors expected the lower house to approve a controversial pension reform bill today that proposed charging social security from retired civil servants. The infamous bill, which had already been turned down by the house four times, represented a crucial part of the government's fiscal austerity package -- expected to add 28 billion reais ($18 billion) to government coffers this year. Brazil's stock market plunged after the bill was rejected last time, in December, triggering more dollar outflows from the country's currency markets and eventually leading to a devaluation of the local currency. By 1717 local/1917 GMT, the lower house had started debating on an urgency motion, which would allow the bill to bypass panel hearings and go straight to the floor. "Everybody knows today's vote is crucial, also for Brazil to restore investor confidence," said one local trader. Brazilian stocks have been up every day since the government floated the currency last Friday, a move that resulted in a devaluation of the real of 24 percent so far. Among other blue-chip shares, Petrobras preferred (SAO:PETR4) rose 5.8 percent to 118.50 reais, while Eletrobras preferred (SAO:ELET6) gained 6.2 percent to 25.70 reais on Wednesday. Copyright 1999, Reuters News Service

To: Steve Fancy who wrote (12094)	1/20/1999 6:31:00 PM
From: Steve Fancy	Respond to of 22640

FOCUS-BellSouth sees profits hurt by Brazil crisis Reuters, Wednesday, January 20, 1999 at 15:35 ATLANTA, Jan 20 (Reuters) - Regional Bell operator BellSouth Corp. (NYSE:BLS) on Wednesday said the Brazilian currency crisis will take a bite out of its first quarter profits but it still expects a significant jump in earnings per share for all of 1999. BellSouth, perhaps the most aggressive Latin American player among the five U.S. Baby Bell telephone companies, said it estimates that the recent devaluation of Brazil's currency, the real, would trim its first quarter profits by about $172 million, or 9 cents per share. The company reiterated, however, that it is committed to pursuing its Latin American investment plans despite the recent turbulence in the region, which was exacerbated last week by the Brazilian government's decision to stop defending its currency. "We have tremendous growth opportunities throughout the area, as evidenced by the one million cellular customers we added in Brazil in less than eight months," BellSouth Chairman and Chief Executive Duane Ackerman said. "We are convinced our Latin American investments will continue to be a growth engine for us as we enter the new millennium." The heaviest concentration of overseas investment for BellSouth is in Latin America, where it is mostly involved in partnerships with local cellular companies, a company spokesman told Reuters. The company also operates in nine other countries outside Latin America and the United States, including Denmark, Germany, the Netherlands, Britain, Singapore, India and Israel. BellSouth said a planned change in accounting for software will boost its 1999 profit expectations by about 7 percentage points. It now expects 1999 earnings per share to grow 19 to 21 percent, excluding the Brazilian currency effects, rather than the 12 to 14 percent it previously predicted. Wall Street had expected BellSouth, which reports its 1998 fourth quarter results on Jan. 25, to report a 1999 first quarter profit of 45 cents per share, according to the latest consensus estimate compiled by the earnings tracking service First Call Corp. For all of 1999, the company had been seen earning $1.85 per share, 22 cents higher than the $1.63 per share it is expected to report for 1998. In early trading on the New York Stock Exchange, BellSouth shares were down 31.25 cents at $46.6875. Copyright 1999, Reuters News Service