Brazil Stocks Surge as Jobless Rate in U.S. Unexpectedly Falls
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By Paulo Winterstein
Dec. 4 (Bloomberg) -- Brazilian stocks surged, heading for a fifth straight weekly gain, after the U.S. lost fewer jobs than analysts estimated and the South American country’s biggest retailer said it would merge with a smaller rival.
Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s largest retailer, jumped 8.5 percent after it agreed to merge with Casas Bahia. Petroleo Brasileiro SA, the country’s state-controlled oil company, rose as the U.S. reported a lower- than-expected unemployment rate, sparking gains in crude prices. Gol Linhas Aereas Inteligentes SA, Brazil’s second-biggest airline, gained after airport traffic in Latin America expanded for a fourth consecutive month.
“Payrolls are improving and unemployment is falling, which indicates that the worst has passed and that you could have sustainable growth now,” said Jonatas de Castro, a trader at BI Invest in Sao Paulo. “This partnership between Pao de Acucar and Casas Bahia is very positive. Casas Bahia is focused on lower classes and Pao de Acucar has customers with a little more money, so this diversity in the retail sector is very important.”
The Bovespa index rose 1.3 percent to 69,173.11 at 9:36 a.m. New York time. The real gained 0.3 percent to 1.7060 per dollar. Chile’s Ipsa index climbed 0.9 percent and futures of Mexico’s Bolsa index jumped 1.5 percent.
Grupo Pao de Acucar gained 4.84 reais to 61.79 reais. The Sao Paulo-based retailer agreed to buy Casas Bahia in its second acquisition since June to strengthen its home appliance business.
Globex Utilidades
Sao Paulo-based Pao de Acucar and Casas Bahia will transfer their home appliance retail units to Globex Utilidades SA, the company said today in a regulatory filing. Pao de Acucar will own 50 percent plus one common shares of Globex. The value of the transaction was not disclosed in the statement.
Pao de Acucar will probably pay 6 billion reais to 7 billion reais ($4.1 billion) for the acquisition, SLW Corretora analyst Caue Pinheiro said before the announcement of the transaction.
Lojas Americanas SA, Brazil’s biggest discount retailer, fell 2 percent, while its online retailing unit, B2W Cia. Global do Varejo, slipped 5 percent.
Petrobras gained 1 percent to 39.70 reais. Crude oil rose for the first time in three days. Employers in the U.S. cut the fewest jobs in November since the recession, signaling the recovery is lifting the labor market out of the worst slump since World War II.
Payrolls fell by 11,000 workers, less than the 125,000 losses expected, according to the median estimate of economists surveyed by Bloomberg News. The jobless rate declined to 10 percent, figures from the Labor Department showed today in Washington.
Gol rose 3.1 percent to 25.73 reais. Bigger rival Tam SA rose 2.9 percent to 31.92 reais. Global passenger traffic at Latin America’s airports jumped 19 percent in October from the year earlier, the Airports Council International in Geneva said today.
To contact the reporter on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.
Last Updated: December 4, 2009 09:43 EST
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