Skip to main content

Chile's La Polar Falls as Jobless Data Signals Consumer Slump

By Nathan Gill
     July 2 (Bloomberg) -- Empresas La Polar SA, a Chilean department store operator, fell to the lowest in a month on concern higher-than-expected unemployment in the U.S. and Chile may crimp consumer spending at the company’s stores.
La Polar slid 2.6 percent to 1,910 pesos in Santiago trading, the lowest since May 27.
     Employers in the U.S. cut more jobs than forecast in June and the unemployment rate rose to the highest in almost 26 years, according to U.S. Labor Department figures released today in Washington, adding to concern that a prolonged global recession will force Chilean companies to fire more workers as demand for the nation’s exports shrinks. Chile’s jobless rate rose 4.1 percent to 10.2 percent in May, the National Statistics Institute said June 30, higher than the 10.1 percent median forecast of 13 economists in a Bloomberg survey.
     U.S. jobless data “signals that the recovery is going to be slower than what many thought,” Patricio Hernandez, an analyst at Banchile Inversiones, said in a telephone interview from Santiago. “The biggest part of Chilean retail companies’ earnings come from the financing side and this is affected when unemployment rises. We’ll continue seeing worse employment figures than what we’re seeing now.”
     Investors also sold shares in reaction to the company’s rejection last week of supermarket chain Omega SA’s merger offer, Hernandez said. The stock had risen 24 percent from May 27 through June 26 after Omega, controlled by Southern Cross Latin America Private Equity Fund III LP, offered to merge its supermarkets with the retailer’s department stores.
     The company’s shares have fallen 8.8 percent this week. Rival retailer Ripley Corp SA also fell in Santiago trading. Chile’s third-largest department store operator retreated 2 percent to 398 pesos, the lowest in a week.


Popular posts from this blog

Moving to the Suburbs: Reducciones in Recent Latin American Historiography

In 1503, the Spanish monarchy issued its first decree for the resettlement of indigenous groups in the Caribbean so that they would “live together” and “not remain or wander separated from each other in the backcountry.”[1]

As the European conquest spread to North, Central, and South America, these new settlements – known as reducciones and congregaciones in Spanish and descimentos in Portuguese – became sites of forced labor, evangelism, experimental agricultural, and refuge. Through a series of imperial policies decreed over the next decades and centuries of colonial rule, Spanish and Portuguese officials attempted to reshape the New World, including its human and natural landscapes. How colonial historians explain this process and indigenous peoples’ reactions to it is the focus of this essay.

In a review of the recent historiography of reducciones, several trends emerge that signal a shift in our understanding of the practice. As this paper will show, one common element is that …

77-Year-Old Wall Street Favorite to Face Fujimori in Peru Runoff

By Nathan Gill and John Quigley April 12, 2016 (Bloomberg) -- The victory by Pedro Pablo Kuczynski, a former finance minister, for second place in Sunday’s Peruvian president elections sets up a showdown between two business-friendly candidates, part of a regional backlash against left-wing politicians.
Kuczynski, a 77-year-old Oxford-trained political economist who’s spent more than 50 years championing debt control and free trade, won 21 percent of vote with 96 percent of the ballots counted, according to the electoral office. He will face Keiko Fujimori, who won 39.8 percent, in a second-round vote on June 5.
Click here to read the full story on Bloomberg News.

Greetings From Gringolandia

Bloomberg Businessweek, March 28 — April 3, 2016
Susan Lamy and her husband, Jean Pierre, owned a successful interior design business in Westport, Conn., but they still worried about how they would make ends meet in retirement. “Just paying for the basic necessities was killing us, and we could see that there was no way that we would ever be able to stop working,” says Lamy. 
The search for an affordable retirement spot led the couple to Cuenca, a Unesco World Heritage site in Ecuador’s southern Andes. They settled there in 2013 and now live in a spacious apartment with a terrace overlooking the Yanuncay River. Lamy says she and her husband enjoy a high standard of living in Cuenca for around $2,500 a month, paid for by their Social Security checks: “This seemed to be the best possibility for having a really terrific life on a fixed income.” 
The combination of a subtropical climate, well-preserved colonial architecture, and low cost of living has made Cuenca a magnet for North Ameri…