A shortened week in international trade is nevertheless an important one, as crunch talks take place over threatened industrial action in global supply chains, a leading semiconductor manufacturer releases its financial results for the last quarter and the Scottish National Party (SNP) hosts its annual party conference.
Strike week?
This week could determine whether or not supply chains are further disrupted by industrial action, as unions and decisionmakers remain deadlocked in negotiations around the world.
From Wednesday (28 August) onwards, almost all of India’s major ports could be hit by strikes.
Today (27 August), the Centre of Trade Indian Trade Union is meeting with the India Ports Associations for what is being described as a “final” round of negotiations over wages and work benefits.
If these talks fail, ports like Kolkata, Mumbai and Kandla could be effectively shut down, with millions of tonnes of cargo remaining stuck in Indian ports.
Last week, a strike by Canada’s rail-workers was called off shortly after the initial lock-out of workers, following the government’s use of emergency powers to send the dispute to arbitration.
However, the arbitration hearing ended without a resolution and trade union leaders have threatened to call strikes again as early as Friday (30 August), while also stating they will appeal the decision to involve arbitrators by Canadian federal minister Steven MacKinnon.
Air Canada pilots have also voted for walk-outs from 17 September onwards, while the International Longshoreman’s Association is still threatening action on 30 September in the US.
Industrial action by UK LNER workers is also set to take place this week.
Nvidia
Analysts are looking at one of the one of the world’s largest chipmakers, Nvidia, as investors assess the strength of the artificial intelligence sector.
The chipmaker reports its second quarter results on Wednesday (28 August). Following last quarter’s 262% increase in revenue, the company lost and then regained almost US$750bn in value. The company has become a bellwether for the AI sector, as Nvidia’s chips are being used across the industry.
Panmure Liberum strategist, Joachim Klement, told Bloomberg:
“We are still optimistic that Nvidia will beat expectations, but any sign of weakness in the numbers could lead to setbacks not just in US tech stocks, but European tech companies as well.”
The results could also indicate the impact of a wave of export controls being imposed on equipment and materials used in the manufacture of semiconductors, including those imposed by the US.
SNP conference
The SNP hosts its annual conference from Friday to Sunday (30 August to 1 September).
The SNP had a poor night in the July general election, going from 46 MPs to nine, as Labour swept back into power across Scotland and a number of senior SNP leaders were defeated.
With several figures calling for a “complete rethink”, the party is now set to regather and refocus its efforts. The SNP remains in power in Holyrood and a Scottish parliamentary election is not expected until 2026. Nonetheless, a series of poor electoral results has focused minds in nationalist ranks.
According to the final agenda, party leader John Swinney is leading an internal review session at the conference, while topics like the net zero transition, Scottish tax powers and international affairs are set to be discussed.
Other dates for the diary
- Tuesday – Germany’s Q2 GDP figures released
- Wednesday – Paris Paralympics open
- Thursday – The Met Office announces its names for storms for 2024-2025 season
- Friday – Euro area inflation data released
- Saturday – 85th anniversary of the beginning of World War II
- Sunday – Second-hand September begins
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