International News 11/07
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Workers' Wages Rise, Bank of Japan's Interest Rate to Rise
The average base salary of Japanese workers in May 2024 increased at the fastest pace in 31 years, rising by an average of 2.5% year-on-year. However, real wages, adjusted for inflation, reached a record low for the 26th consecutive month. The decline in real wages was attributed to the weakening yen and high commodity prices. The Bank of Japan (BOJ) views the wage increases as a positive indicator of progress towards achieving its 2% inflation target. This has led to speculation that the BOJ may raise interest rates at its upcoming meeting in July. A significant number of regions in Japan have reported substantial salary increases across a range of both large and small-to-medium-sized enterprises. The central bank's view on wage developments will be a key factor in determining interest rates. While there is a general expectation that interest rates will be increased this year, there is no consensus on the timing of such a move.
https://internasional.kontan.co.id/news/upah-pekerja-naik-bunga-bank-of-japan-akan-dikerek
Exxon Mobil's revenue rises after oil price hike
Exxon Mobil anticipates a surge in performance due to an increase in oil prices. The company's management has stated that the rise in prices will boost their upstream revenue in the second quarter of 2024 by an estimated amount of $300 million to $700 million, in comparison to the revenue recorded in the first quarter of this year. Exxon is set to release its financial report after finalising the acquisition of Pioneer Natural Resources for $60 billion. This move will establish Exxon as the leading oil producer in the Permian basin. However, the company expects a decrease in gas prices to impact its upstream earnings in the second quarter of 2024. It estimates a decline of $300 million to $700 million in comparison to the first quarter. In the first quarter of 2024, Exxon's upstream revenues were $5.7 billion.
https://internasional.kontan.co.id/news/pendapatan-exxon-mobil-meningkat-pasca-kenaikan-harga-minyak
Samsung predicts a 1,400% profit increase. Why?
Samsung Electronics anticipates a notable increase in profits for the second quarter of 2024, with projections indicating a 15-fold growth compared to the same period last year. The rise in prices of advanced chips has been driven by the surge in artificial intelligence (AI), which has contributed to an increase in revenue predictions for this year. As the world's largest manufacturer of memory chips, smartphones, and televisions, Samsung also reported a more than 10-fold increase in profit for the first three months of 2024. The company anticipates a profit of 10.4 trillion won (US$7.54 billion) for the current quarter, which exceeds analysts' estimates. The increasing demand for AI chips in data centres and smartphones has been a significant factor in these figures. The broader market rally and optimism surrounding AI have also led to record-breaking performances for the S&P 500 and Nasdaq in the United States. The success of chipmaking giant Nvidia, driven primarily by the AI boom, is another significant factor in this trend.