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

To: Tony van Werkhooven who wrote (12140)	1/21/1999 10:33:00 AM
From: Steve Fancy	Respond to of 22640

Brazil will not renegotiate debts of states-FinMin Reuters, Wednesday, January 20, 1999 at 17:01 BRASILIA, Jan 20 (Reuters) - The Brazilian government will not renegotiate the debts of states that are pressing for the terms of previous refinancing accords to be reviewed, Finance Ministry executive secretary Pedro Parente said on Wednesday. "There's no possibility of renegotiating the debts of the states," Parente told Reuters. On Monday, seven rebel states gave President Fernando Henrique Cardoso until Feb. 5 to respond to their demands their debts with Brasilia be renegotiated. The states were led by Minas Gerais state, which sent jitters through international markets by declaring a three-month moratorium on debt payments to the federal government earlier this month, in part leading to the collapse of the currency. Parente said nothing stood in the way of Cardoso meeting governors to discuss their needs but Brasilia could not budge on the levels of monthly payments, interest rates and guarantees agreed in refinancing accords signed in 1997. "On these issues, there is no possibility of renegotiation. Sometimes there are issues, not related to the debt, which are reasonable," he said. "And the government has the obligation, as we always do, to receive governors, receive finance ministers (of the states), discuss their fiscal issues as far as possible, but without this representing any possibility of renegotiating what has already been negotiated," he said. Minas Gerais won an injunction on Tuesday to prevent the central government dipping into its bank accounts to seize the money it has refused to pay, some 80 million reais a month. Parente said the government would appeal at the Supreme Federal Tribunal, the country's highest court. Copyright 1999, Reuters News Service

To: Tony van Werkhooven who wrote (12140)	1/21/1999 10:36:00 AM
From: Steve Fancy	Respond to of 22640

Morgan Stanley's Biggs fears Brazil woes to spread Reuters, Thursday, January 21, 1999 at 03:12 TOKYO, Jan 21 (Reuters) - Barton Biggs, the influential chairman of U.S.-bsaed Morgan Stanley Dean Witter Investments, cautioned that if Brazil's economic woes spread to Argentina, it could set off a fresh round of destabilising currency devaluations. Copyright 1999, Reuters News Service

To: Tony van Werkhooven who wrote (12140)	1/21/1999 10:37:00 AM
From: Steve Fancy	Respond to of 22640

Brazil's real trades 3.6 pct weaker at 1.65/dlr Reuters, Thursday, January 21, 1999 at 09:06 SAO PAULO, Jan 21 (Reuters) - Brazil's real currency was trading at 1.65 to the dollar late morning Thursday, 3.6 percent weaker from its 1.59 reais-open, due to a lack of the U.S. currency available in markets, traders said. "There are no more dollar stocks in the market," said one local forex trader. "There is also uncertainty in the market on when the Central Bank would come in and supply dollars." Brazil's currency markets have been suffering a net dollar outflow of between $300 million and $400 million every day since the Central Bank allowed the real currency to float in markets last Friday. Floating the currency meant the Central Bank would not intervene in local forex markets, selling dollars to maintain the real trading within a certain limit, like it used to do. "With this pace (of dollar outflows), our dollar stocks would only last until Friday," said one trader. Traders could not immediately give a reason on the persistent wave of dollar outflows, but pointed out a majority of them were fleeing from the commercial forex market used by corporations and financial institutions and not from the floating market, which is used by tourists and individuals. Copyright 1999, Reuters News Service

To: Tony van Werkhooven who wrote (12140)	1/21/1999 10:38:00 AM
From: Steve Fancy	Respond to of 22640

Brazil shares extend drop as currency weakens Reuters, Thursday, January 21, 1999 at 09:40 SAO PAULO, Jan 21 (Reuters) - Brazilian shares plunged more than 6 percent in early trade Thursday as the currency, the real, slid against the U.S. currency due to a lack of available dollars in the foreign exchange markets, traders said. The blue-chip Bovespa share index (INDEX:$BVSP.X) sank 6.29 percent to a session low of 7,192 points and was trading 5.09 percent lower at 7,284 points at 1150 local/1350 GMT. The market had been gaining ever since the government allowed the real to float freely last Friday. But investors were increasingly nervous about the real's ongoing slide and said it was time to start taking profits. The real weakened to 1.65 reais to the dollar after opening at 1.59 reais on the commercial forex market. "The bourse seems to be tracking the forex market," one trader said, adding that the two should become decoupled before the end of the session allowing the stock market to recover. Traders had been expecting some profit-taking saying the market was overbought after investors snapped up shares on Wednesday ahead of a key congressional vote. The market had been optimistic that a set of thorny pension reforms, seen as crucial for the government's fiscal austerity package, would make it through the lower house of Congress where it had failed four times. The measure was overwhelming approved, but traders said profit-taking was inevitable after the rhythm of sharp gains after the currency was allowed to float. Share prices gained more than 50 percent in the last four sessions. Copyright 1999, Reuters News Service

To: Tony van Werkhooven who wrote (12140)	1/21/1999 11:05:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Currency is waaay overdone IMO. All these d@mn analysts keep talking about the huge runup...what they fail to mention was the huge fall since the beginning of the year. I think we'll recover further before end of day. sf

To: Tony van Werkhooven who wrote (12140)	1/21/1999 11:09:00 AM
From: Steve Fancy	Respond to of 22640

CNBC commenting that a ML analyst commenting Brazilian rally will burn out soon as recession takes it's toll on economy. What am I missing. Telco's with near unlimited growth potential that control 39% of the index. I doubt demand for phones will slow before economy starts recovering. I wonder if this was the same guy pushing to buy all last year with TBR targets of $150. I like the fact many analysts have turned negative. Now maybe we can realize some true potential here. sf

To: Tony van Werkhooven who wrote (12140)	1/21/1999 11:11:00 AM
From: Steve Fancy	Respond to of 22640

Brazil Senate to vote pensions bill next Tuesday Reuters, Thursday, January 21, 1999 at 10:45 BRASILIA, Jan 21 (Reuters) - Brazil's Senate will vote next Tuesday on a pensions bill approved Wednesday night by the Chamber of Deputies in what was regarded as a key victory for the government's austerity drive, the head of Congress said. Congress President Sen. Antonio Carlos Magalhaes said the Senate approved giving priority treatment to the bill, which would make retired civil servants pay pension contributions and raise more than $2 billion a year to help plug the budget deficit. The pensions bill is a key part of 28 billion reais in savings agreed for 1999 between Brazil and the International Monetary Fund in return for a $41.5 billion bailout package drafted late last year. It had been rejected four times by the often unruly lower house of Congress before Wednesday night's approval. Its last shock defeat in December in the Chamber of Deputies battered investor confidence in Brazil, helping bring about the free float of the real currency last Friday. The proposal will levy pension contributions on retired public sector employees. Copyright 1999, Reuters News Service

To: Tony van Werkhooven who wrote (12140)	1/21/1999 11:12:00 AM
From: Steve Fancy	Read Replies (5) \| Respond to of 22640

Brazil's real slumps 6.5 pct to 1.70/dlr Reuters, Thursday, January 21, 1999 at 11:02 SAO PAULO, Jan 21 (Reuters) - Brazil's embattled currency took another hit in morning trade on Thursday, tumbling 6.5 percent against the U.S. dollar as persistent capital flight drains the country's private dollar stock, traders said. "We're seeing $300 million leave the country every day, and the Central Bank isn't intervening with reserves any more," a fixed-income trader at Unibanco said. "The market has run out of dollars."