Seoul, South Korea – The Samsung Electronics workers’ union is gearing up for a walkout scheduled for Friday, citing concerns over pay and working conditions at the company. This potential strike would mark the first time Samsung has faced such labor action since its establishment.
According to reports, the walkout is unlikely to have a significant impact on chip production, as stated by analysts from market research firm Trendforce. Despite the looming strike, Samsung’s shares saw a 0.65% increase on Friday. Trendforce highlighted that the majority of workers involved in the walkout are based at Samsung’s headquarters in Seoul, rather than those directly involved in production.
In Japan, household spending experienced a 0.5% year-on-year increase in April, marking the first growth since February 2023. However, this growth fell short of the 0.6% growth estimated by Reuters polls. The average monthly consumption expenditures per household rose by 3.4% in nominal terms, while the average monthly income per household increased by 2.3% in nominal terms but decreased by 0.6% in real terms from the previous year.
In the financial markets, the S&P 500 and Nasdaq Composite continued to reach new record highs, with the S&P 500 showing a year-to-date gain of 12.93%. Analysts from UBS expressed confidence in the continued rally of equities, citing strong market fundamentals and projecting the S&P 500 to reach 5,500 by year-end. They anticipate robust profit growth driven by artificial intelligence trends.
Further insights from Deutsche Bank suggest that Friday’s nonfarm payrolls report for May may reveal a U.S. unemployment rate of 3.9% or lower, potentially marking the “longest stretch of sub-4% unemployment since the early 1950s.” This trend in low unemployment rates historically correlates with increased productivity growth, with potential positive implications for future economic growth.
In economic news, recent data revealed an increase in jobless claims and the trade deficit, with labor costs coming in lower than expected. Initial filings for unemployment benefits rose to 229,000 for the week ending June 1, surpassing estimates. The trade deficit for April grew to $74.6 billion, while revisions showed nonfarm productivity up by 0.2% and unit labor costs increasing by 4% for the first quarter.
Overall, these developments in labor actions, economic data, and market trends highlight the ongoing challenges and opportunities facing global industries and economies in the current landscape.