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

To: wl9839 who wrote (15372)	5/18/1999 3:22:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shares erase gains after Fed outcome Reuters, Tuesday, May 18, 1999 at 15:02 SAO PAULO, May 18 (Reuters) - Brazilian stocks slipped into negative territory Tuesday afternoon after the U.S. Federal Reserve's decision to adopt a tightening bias on credit, traders said. The Bovespa index (INDEX:$BVSP.X) of blue-chip issues were down 0.07 percent at 12,143 points after rising as much as 1.67 percent earlier in the session amid expectations that the U.S. central bank's policy-making panel would not change its interest rate stance. The Federal Reserves signaled it was leaning toward higher interest rates in the future, the first time the Fed has ever immediately disclosed its intentions. Local traders were concerned an eventual rise in U.S. interest rates would trigger emerging market investors to run for a safer haven in U.S. Treasuries and dump high-yielding Brazilian papers. Investors in Sao Paulo were also disheartened after Wall Street stocks started slumping after the FOMC announcement. The local currency, the real <BRBY>, was little changed after the Fed decision, trading at 1.667 per dollar, unchanged from its Monday close. Copyright 1999, Reuters News Service

To: wl9839 who wrote (15372)	5/18/1999 3:24:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil says Fed decision not to affect local rates ReutersPlus, Tuesday, May 18, 1999 at 15:07 BRASILIA, May 18 (Reuters) - Brazil's Central Bank said Tuesday afternoon that the U.S. Federal Reserves decision to adopt a tightening bias on credit was expected and should not affect its own interest rate policy meeting on Wednesday. "I do not think that there will be a repercussion on the market here," the Central Bank's director of monetary policy, Luiz Fernando Figueiredo, said when asked about the impact on the upcoming meeting. "It was well within expectations." The Fed left interest rates unchanged on Tuesday but signaled its willingness to raise rates in the future to curb inflation by adopting a formal policy bias toward higher borrowing costs. Brazilian markets have worried that a change in U.S. rates policy could lure investors out of capital markets, forcing Brazil's Central Bank to slow its policy of quick rate reductions at home. The bank has slashed the benchmark Selic from to 27 percent from 45 percent amid signs Brazil has turned the corner on a currency crisis that had threatened to undermine the economy. The Central Bank's Monetary Policy Committee (Copom) was expected to cut rates again at its monthly meeting on Wednesday. Copyright 1999, Reuters News Service