Auquan’s Daily Wrap | 8th March: What you might have missed

Italy Tightens Smoking Laws: Impact on Tobacco Companies

Italy has proposed a nationwide smoking ban in open-air settings in addition to the already existing smoking ban in indoor public places. The proposal has caused concern among tobacco companies, leading to tensions among Italian ministers.

• Philip Morris International, R. J. Reynolds Tobacco Company, and Japan Tobacco could decline sales due to the proposed smoking ban in open-air settings in Italy.
• The ban could lead to increased pressure on these tobacco companies to find alternative sources of revenue or diversify their product offerings.
• The tension among Italian ministers suggests that there may be more stringent anti-smoking measures in the future, which could further impact tobacco companies operating in Italy.

Select Sources

• 6 Mar | Put that out! Italy ministers fume over proposed smoking ban https://www.reuters.com/world/europe/put-that-out-italy-ministers-fume-over-proposed-smoking-ban-2023-03-06/
• 7 Mar | Smoking to be banned in open-air settings in Italy https://www.inform.kz/en/smoking-to-be-banned-in-open-air-settings-in-italy_a4043240
• 19 Jan | How is Italy planning to tighten laws on smoking? https://www.thelocal.it/20230119/how-is-italy-planning-to-tighten-laws-on-smoking/

UK Manufacturers Reshoring to Secure Supply Chains

UK manufacturers are making significant efforts to reshore and secure their supply chains amidst supply chain issues caused by Brexit, the COVID-19 pandemic, and rising energy prices. The supply chain disruptions have led to UK manufacturers with goods worth almost £24bn sitting in warehouses awaiting completion. In response, manufacturers are urged to step up the use of digital technologies in supply chain monitoring.

• UK manufacturers are moving away from foreign suppliers, with more factories turning towards domestic sources for goods and services.
• Some UK manufacturers are making serious moves to restore and secure their supply chains.
• Rising energy prices have pressured UK clothing makers, who are forced to absorb costs.
• Supply chain disruptions have led to UK manufacturers with goods worth almost £24bn sitting in warehouses awaiting completion.

Select Sources

• 7 Mar | Manufacturers urged to step up use of digital technologies in supply chain monitoring
• 6 Mar | More UK factories turn away from foreign suppliers, survey shows
• 15 May | UK manufacturers ‘reshore’ supply chains after pandemic and Brexit

Japan's Workers Demand Higher Wages

Japanese workers demand higher wages in various retail, automobile, and electronics sectors. The labour unions in Japan are actively advocating for a wage increase, and the momentum for wage improvement is gaining pace. Several companies, including Shimadzu Corporation, Obayashi Corporation, and AEON Retail, have agreed to raise wages, indicating a positive trend.

• Suzuki Labor Union demands a 6% wage increase for its members, which could increase production costs.
• Companies such as Shimadzu Corporation, Obayashi Corporation, and AEON Retail agreed to increase wages by 5.7%, 2%, and 5%, respectively, which could impact their profit margins.
• The wage increase in various sectors could lead to an increase in consumer spending and boost the economy.

Select Sources

• 8 Mar | Japan's worker eye bumper pay hike in closely watched union talks
• 8 Mar | Suzuki Labor Union Demands 1,2200 Yen Wage Increase by 6% from the previous year
• 6 Mar | Shimadzu Corporation, union members raise average wages by 5.7%, starting salary increases by 1%

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