Here are five things you need to know this morning
Key chipmaker could be hit by strike: Talks between Samsung Electronics Co. and its largest labour union broke down, raising the prospect of a strike that may disrupt global chip supply and hamper an important engine of Korean economic growth. A general work stoppage will go ahead on Thursday after Samsung’s management rejected a proposal from government mediators that had been accepted by the union, labour leader Choi Seung-ho told reporters. The collapse in negotiations puts the global technology supply chain at risk because Samsung is the world’s biggest supplier of the chips that go into devices from data center servers to smartphones and electric vehicles. The global AI infrastructure rollout has enriched South Korean companies on a scale not seen before, putting Samsung on track to become one of the world’s most profitable firms this year. Its semiconductor arm posted a 48-fold jump in profit for the March quarter.
New Alberta rail hub for propane and butane: Keyera will build a rail hub in Alberta’s industrial heartland to transport propane and butane to export facilities on Canada’s west coast in an effort to diversify its market reach and tap growing global demand. The energy company is partnering with Canadian National Railway and energy-infrastructure company AltaGas on the project, which will combine its Alberta corridor export terminal with CN’s rail network and AltaGas’s export platform. The terminal will be owned and built by Keyera on its lands in Alberta, and supported by long-term deals with the other two companies. Keyera said its initial investment will be about $240 million including about $100 million on top of its already-disclosed spending guidance for 2026. When it starts up, the terminal is expected to provide transportation capacity of about 45,000 barrels a day of propane and butane from the Fort Saskatchewan region to West Coast export facilities. Construction is already underway, including land clearing activities, with an expected in-service date of mid-2028, Keyera said.
Oil drops as UK eases sanctions against Russia: Oil fell for a second day as traders weighed President Donald Trump’s latest threat to resume strikes on Iran. Brent traded near US$109 a barrel, after losing 0.7 per cent on Tuesday, while West Texas Intermediate was around US$103. Trump said that the Iran war is going to end “very quickly” and that Iran “wants to make a deal badly” at the White House Congressional Picnic. Trump’s remarks followed earlier comments that the U.S. “may have to give them another big hit” if Tehran rejects American peace terms, less than a day after he said he had called off an attack. Meanwhile, The U.K. moved to loosen its Russian sanctions in a controversial move aimed at preventing shortages of diesel and jet fuel, as the war in Iran eats into global oil buffers. The move highlights how Britain has become more reliant on fuel imports than other major European nations, and has prompted political backlash over the government’s commitment to support Ukraine. The European Union is not currently planning a similar measure, according to people with knowledge of the matter, who asked not to be named discussing non-public information.
Target continues to improve: Target Corp.’s turnaround bid is gaining traction, with the company posting its best comparable sales growth in four years and boosting its outlook. The retailer that has been struggling to revive growth after a pandemic-fueled boom showed Wednesday that it’s making progress. Comparable sales jumped 5.6 per cent last quarter, the biggest increase since the end of 2021 and triple the gain analysts were expecting. The chain also raised its annual revenue guidance by two percentage points to about four per cent. Last quarter was the retailer’s first under new Chief Executive Officer Michael Fiddelke and shows the chain’s strategy, which includes freshening up merchandise and stores and integrating more technology operations, is paying off. Target is looking to win back increasingly selective shoppers amid resurgent concerns about inflation as the conflict in the Middle East boosts gas prices. Competitors such as Walmart Inc. and Costco Wholesale Corp. have been gaining market share with low prices, increased online options and expanded selections.
Another home improvement company has tough quarter: Lowe’s reported disappointing sales growth in the first quarter and kept its full-year outlook unchanged, citing a challenging housing environment. Comparable sales rose 0.6 per cent during the period, the company said Wednesday, below the average analyst estimate compiled by Bloomberg. Lowe’s adjusted earnings per share of US$3.03 beat expectations. Lowe’s shares fell as much as 3.8 per cent in premarket trading, after slumping by 9.5 per cent this year through Tuesday’s close. U.S. consumers remain squeezed because of higher fuel costs in the wake of the Iran war, even though there are some signs that the nation’s housing slump may finally be ending. An index of market conditions from the National Association of Home Builders and Wells Fargo showed that U.S. homebuilder sentiment rebounded in May. While Lowe’s recent acquisitions in the professional contractor segment may squeeze margins in the near term, they should lead to stronger long-term growth, Bloomberg Intelligence analyst Drew Reading wrote. Lowe’s pro customers comprise roughly 30 per cent of sales, he said.
