Auquan's Weekly Wrap | 6-10 June: What you might have missed
Recap of the week's market activity: South Korea truckers strikes, Freeport LNG plant shutdown, Stellantis Mexico labor rights probe, and more.
South Korea Truckers Strike
As skyrocketing fuel prices are are causing truck drivers to demand pay increases in their protests - the latest threat to already strained global-supply chains, shipping congestion and production is growing.
Thousands of truck drivers in South Korea have gone on strike at major ports and container depots - and if the strike continues long term, rising semiconductor and foundry prices could further affect autos, appliances, mobile phone manufacturers and more.
- 7 Jun: South Korea Truckers Go on Strike at Ports as Fuel Costs Soar
- 7 Jun: Ports introduce back-up plans as 25,000 truckers strike in South Korea
Freeport LNG Plant Shutdown
Freeport LNG, operator of one of the largest U.S. export plants producing liquefied natural gas (LNG), will shut for at least three weeks following an explosion at its Texas Gulf Coast facility. This raises the risk of shortages especially in Europe, which is particularly dependent on LNG amid supply shortages from Russia. British and Dutch wholesale gas prices rose sharply on Thursday morning due to the outage.
- 9 Jun: Freeport LNG plant to shut for 3 weeks, roiling global energy markets
- 9 Jun: Fire at US natural gas plant deals blow to exports
- 9 Jun: Natural-Gas Prices Swing After Fire in Texas and New Inventory Data
Labor Rights in Mexico
Stellantis is the next labor rights abuse culprit in Mexico, close on the heels after the Economy Ministry has accepted a U.S. request to probe alleged labor abuses at Panasonic auto parts plant. Possible labor rights violations at Jeep plant owned by Stellantis NV are now being reviewed under requirements of the United States-Mexico-Canada trade agreement.
With low wages attracting auto firms to manufacture Mexico over the last few decades, this could see further labour abuse investigations for auto companies going forward.
- 7 Jun: U.S. asks Mexico to probe whether Stellantis parts plant abused labor rights
- 27 May: U.S. weighs labor probe into Stellantis Mexico plant, Mexican officials say
Rising Themes to Watch Out
Pharma Sector Carbon Measures
- 6 Jun: Takeda, big pharmaceuticals team up to monitor suppliers' emissions
- 6 Jun: AbbVie unveils diversity, climate and accessibility strategies in new report
- 22 May: Bayer trials Wunderman Thompson tool to reduce CO2 emissions from digital activity
China Cybersecurity Investigation
- 6 Jun: China to conclude cybersecurity probe, Didi app to be restored
- 6 Jun: China will Tighten Cybersecurity in Securities and Futures Industry
UK Non-acoholic Drink Sales Increase
- 5 Jun: Beer prices at all-time high in London: Report
- 5 Jun: UK sales of low-alcohol and no-alcohol beers almost double in 5 years
- 27 May: Non-alcoholic drinks trade organisation ANBA expands into UK and Europe