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.

Top Themes

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.

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.

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.

Rising Themes to Watch Out

Pharma Sector Carbon Measures

China Cybersecurity Investigation

UK Non-acoholic Drink Sales Increase

Buy Now Pay Later Products Uptrend

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