Dollar stores under fire | China-Taiwan tensions | Samsung cuts memory chip output

Welcome to Portfolio Intelligence Daily, where each morning we spotlight investment risks bubbling under the surface, such as supply chain issues, reputational/ESG risks, and regulatory and government actions.

Today:?

1. Dollar stores under fire over dangerous workplace conditions
2. China-Taiwan tensions raise commercial and economic concerns
3. Samsung cuts memory chip production in response to weak demand

Summaries are curated by Auquan’s analyst team using our Portfolio Intelligence Engine to produce idiosyncratic alpha-generating insights at scale.

Dollar stores under increasing fire over workplace conditions

Discount retail giants Dollar General, Dollar Tree, and Family Dollar continue to rack up OSHA violations as workers protest and fines add up.?

• Dollar General faces more than 180 OSHA investigations over jeopardising worker safety
• OSHA found Dollar General store in Pennsylvania in violation of federal workplace safety regulations, finning the company $245,544 for “willfully exposing” staff to fire hazards following inspection
• Dollar General was just reported to be in settlement talks with OSHA over other recent worker safety violations
• Dollar General made $37.84 billion in sales in fiscal 2022 and has 18,000 stores and 150,000 employees – the discount retailer has been fined $15M for safety violations since 2017
• Impacted companies: Dollar General, Family Dollar, and Dollar Tree have all come under increasing scrutiny over workplace safety issues?

Select timeline

• April 10, 2023 | OSHA fines Dollar General over safety violations at Pennsylvania store (Retail Insight Network)
• March 28, 2023 | Dollar General in settlement talks over workplace safety violations, federal agency says (CNBC)
• December 13, 2022? | Dollar store employees protest for safer workplaces (Louisiana Illuminator)

“Dollar General Corp. has a substantial history of the same violations and hazards found at stores all around the U.S. They must end their repeated failures to correct these violations before an emergency turns tragic.” — Mary Reynolds, OSHA Area Director (source)

Tags: #dollargeneral #familydollar #dollartree #dollarstores #workplacesafety #esg

China-Taiwan military tensions raise commercial and economic concerns

China has stepped up military drills and surveillance around the island of Taiwan, leading to increased weapon sales and market preparations for possible invasion scenarios.?

• The US House Speaker met with the Taiwan President, bringing a strong denunciation from China?
• Lockheed Martin has doubled production of anti-ship missiles as Taiwan urged the US to sell it more advanced weapons
• China’s military threat to Taiwan poses significant global semiconductor supply chain risks?
• China has developed anti-satellite weapons, further escalating military tensions
• Impacted companies: Lockheed Martin, TSMC and other Taiwan-based semiconductor manufacturers; semiconductor chip buyers, companies investing in Taiwan and China

Select timeline

• April 9, 2023 | China-Taiwan tensions loom ever larger (Reuters)?
• April 6, 2023 | Taiwan watching Chinese movements after Beijing denounces US Speaker meeting (Reuters)?
• September 26, 2022 | Wall Street's preparation for grim China scenarios over Taiwan (Bloomberg)

"A rough, conservative estimate of dependence on Taiwanese chips suggests that companies in these industries could be forced to forego as much as $1.6 trillion in revenue annually in the event of a blockade." — The Rhodium Group (source)

Tags: #china #taiwan #tsmc #lockheedmartin #semiconductor #riskmanagement

OTHER DEVELOPMENTS

Samsung cuts memory chip output on weak demand

Global demand for memory chips continues to soften, leading Samsung to cut output. Micron stock rose with the news. The weak demand has some concerned about the technology market outlook. Read about it at Nikkei Asia, Engadget and The Street.?#samsung #memorychips

Santos gets green light on coal seam gas wells in Australia

Santos can resume coal seam gas extraction on the Liverpool Plains in New South Wales, but still faces stiff opposition from area farmers. Read about it in ABC New England.?

Last week Portfolio Intelligence Daily covered Australian banks facing human rights complaints over Santos’s Barossa gas project.?#santos #naturalgas

Stanley Black & Decker faces class action lawsuit over misleading investors

The complaint alleges the company misrepresented to investors and the public the sustainability of demand for tools and other products. Read the press release.?#esg #swk

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