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

To: wl9839 who wrote (15364)	5/18/1999 2:02:00 PM
From: Steve Fancy	Respond to of 22640

POLL-Brazil 1999 inflation forecast cut to 7.3 pct ReutersPlus, Tuesday, May 18, 1999 at 13:48 SAO PAULO, May 18 (Reuters) - Brazil's consumer price inflation for 1999 at 7.3 percent, considerably lower from its earlier forecast of 12.2 percent, as an economic slowdown weighs on demand, a Reuters poll of economists showed Tuesday. The survey, conducted between May 12 and 14, showed the country's benchmark inflation index Fipe, released by Sao Paulo University's Economic Research Institute, should not rage out of control this year as some feared when the local currency real <BRBY> started its steep devaluation in mid-January. The 7.3 percent inflation forecast is the average projection among 20 economists at banks and research institutes polled by Reuters in Brazil. "It is difficult to see a hike in consumer prices now," said Odair Abate, chief economist at Lloyds Bank in Sao Paulo. "We shouldn't forget that the society as a whole has been rejecting an increase in prices and is looking for cheaper goods." Fipe earlier this month revised down its own inflation forecast for this year to 7 percent after lower-than-expected price growth in April. Fipe's inflation index slowed to 0.47 percent in April, down from 0.56 percent in March. After spiking at 1.41 percent in February following the 35-percent-plus currency devaluation, Brazil's four-week-inflation-measure began to slow in the first week of March. Brazil, Latin America's biggest economy, had enjoyed a deflation of 1.8 percent in 1998. Copyright 1999, Reuters News Service

To: wl9839 who wrote (15364)	5/18/1999 2:04:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Cenbank Fraga reaffirms room for rate cut Reuters, Monday, May 17, 1999 at 18:33 RIO DE JANEIRO, May 17 (Reuters) - Brazilian Central Bank president Arminio Fraga reaffirmed Monday that he saw room for a reduction in local interest rates, but he made no direct comment on whether the benchmark Selic would be cut further this week. Markets are eyeing signs that the bank's Monetary Policy Committee might lower rates again at its meeting on Wednesday after it confidently chopped the Selic last Wednesday for the sixth time in less than two weeks. Brazil's key rate is now 27 percent, down 18 percentage points since Fraga hiked the rate to 45 percent to stave off inflationary pressures of the Brazilian real's sharp devaluation against the dollar. Fraga said that the "radical turnaround" that the Central Bank was seeing in Brazil's fiscal situation combined with the recent slowdown in inflation were necessary conditions for a reduction in rates. "With these conditions I see a base for rates to fall," Fraga told a National Debate forum in Rio de Janeiro. "We at the Central Bank have to act cautiously, but we will not hesitate to move forward given the confirmation that these facts actually have foundation." Fraga did not mention what sort of inflation target the Central Bank was working with in order to make its rate decisions, but said a drop in inflation was "essential" for a drop in rates. The inflation outlook has improved in recent weeks with forecasts dropping to less than 10 percent for 1999, well below the 16.8 percent target agreed with the International Monetary Fund in exchange for a rescue package of credits. The Central Bank president also said that Brazil now had an exchange rate policy in place that was favorable to a downward trend in interest rates, because of its ability to avoid high risk premiums. "I see conditions today to start having a tendency toward lower rates," Fraga said in conclusion. rio.newsroom@reuters.com)) Copyright 1999, Reuters News Service

To: wl9839 who wrote (15364)	5/18/1999 2:05:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Furnas board approves pre-sale division ReutersPlus, Monday, May 17, 1999 at 17:37 RIO DE JANEIRO, May 17 (Reuters) - Brazilian electric utility Furnas approved for the second time the split-up of the company in preparation for its privatization, Brazil's National Development Bank told reporters Monday. Legal injunctions filed by union workers forced Furnas to postpone a shareholders meeting in April which would have confirmed the division, forcing the board to reconvene and vote again on the measure.

To: wl9839 who wrote (15364)	5/18/1999 2:06:00 PM
From: Steve Fancy	Respond to of 22640

Brazil foreign credit lines grow slightly in April ReutersPlus, Monday, May 17, 1999 at 17:59 BRASILIA, May 17 (Reuters) - Brazil saw foreign credit lines grow slightly in April after dropping off the month before, the Central Bank said Monday. Foreign financing for Brazilian banks and companies increased by $153 million to $41.318 billion in March, though it is still below the $42.499 billion reached in February, said Altamir Lopes, economic director of the Central Bank. Brazil's economic team did a whirlwind tour of foreign banks in March winning guarantees that credit lines would be maintained at February levels despite a currency devaluation in mid-January. The increase in financing in April came as a result in higher short-term credit, Lopes said. Brazil's total foreign debt in March stood at $219.478 billion, including $20.963 billion in short-term loans. Copyright 1999, Reuters News Service

To: wl9839 who wrote (15364)	5/18/1999 2:07:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

IBM targets small businesses in Latin America Reuters, Monday, May 17, 1999 at 16:43 By Patricia Zengerle MIAMI, May 17 (Reuters) - Computer giant International Business Machines Corp. (NYSE:IBM) took its small business marketing campaign to Latin America on Monday as it announced a package of special programs for such enterprises in the region. The company unveiled new Web pages, a marketing campaign, sale and lease financing, an array of computer and software packages, support systems and electronic business options intended to expand its business in the market segment. "IBM has competitive prices. IBM has financing available with regional banks," Peter Andino, IBM vice president for small and medium-sized businesses, told a news conference. The overall size of the small business market in Latin America is some $10 billion, he said. "This market is a market of small businesses, in reality," he said. IBM had about $4 billion in revenues in Latin America in 1998, of which about one-third came from small business. Andino said that percentage had risen from 20 percent four or five years ago. He also said a large portion of the company's sales to larger corporations come from divisions that operate much like businesses with fewer than 100 employees. "In the larger companies, most of our business is from departments," he said. Fighting its image as a vendor best suited to large corporations, IBM has announced a program to spend some $100 million worldwide to boost its sales to smaller businesses. Andino would not say how much of the $100 million will be spent in Latin America but said the effort was a significant one. "It's a sizable commitment from our side," he said. According to statistics released last week by Dataquest, IBM's personal computer sales trail those of Compaq Computer Corp. (NYSE:CPQ) in Latin America. In the first three months of 1999, Compaq, with a market share of 18.8 percent, sold 168,188 PCs, to 71,584 for IBM, with 8.0 percent. IBM executives said the company plans six more news conferences throughout Latin America by mid-June to discuss its small business strategy. Copyright 1999, Reuters News Service