Can Cardoso Steer Brazil Away From The Abyss?

President Fernando Henrique Cardoso has plenty to celebrate. After his Oct. 4 election victory, he is close to winning a rescue package worth about $40 billion for Brazil led by the International Monetary Fund. Relieved investors toasted his successes by pushing Sao Paulo's stock index up 16% in the first week of November. And capital flight--which in September drained off over $20 billion, or one-third of Brazil's currency reserves--has slowed to a trickle.

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