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

To: Tony van Werkhooven who wrote (12125)	1/21/1999 9:22:00 AM
From: Ganesh	Read Replies (1) \| Respond to of 22640

This from a London analyst at Bank of America: he's referring to Brady bonds, but what's true for Bradys seems to be true for stocks... "We have been worried about profit taking for a few days now ... but yesterday we thought that markets would trade up into the Brazil social security vote. NOW SELL THE NEWS. The vote went through with a good majority of 334-147 in the lower house; passage in the Senate scheduled for next Tuesday should be a done deal. Cs have now traded up 12 points since the low point last Friday, the Bovespa is up 52% in local terms since last Thursday close, accelerated Congressional votes have passed on both CPMF and pensions, and the states rebellion on debt is in abeyance, maybe heading for defeat. These are all flag-waving events, but they do not necessarily repeat. We reckon that Brazil now has to go into the harder grind of delivering on economic and fiscal performance and so - the period of Brazil relative outperformance is coming to an end - the next but random news could be a more significant retreat by the states on the debt moratorium but it could also be a slip by the floor managers in Congress for instance - the overall market is subject to consolidation."