The FTSE 100 and European stocks were broadly higher on Wednesday as lower producer price inflation in December boosted investors despite the first Amazon (AMZN) strike in the UK.
The FTSE 100 (^FTSE) opened up 0.16% to 7,769 points, while the Paris CAC 40 (^FCHI) rose 0.29% to 7,070 points. In Germany, the DAX (^GDAXI) was flat at 15,106.
Amazon Coventry warehouse workers went on strike Wednesday over wages. This is the first time the e-commerce giant has faced industrial action in the UK.
The GMB union wants Amazon to pay UK workers £15 an hour to pay them the same wages as US workers who are paid $18 an hour.
Staff are unhappy that their hourly rate has been increased from 50p to £10.50. This equates to a 5% increase, well below inflation. Amazon introduced pay increases last summer. But warehouse workers say they have not been able to cope with the rising cost of living.
GMB Senior Organizer Stuart Richards said:
read more: Amazon closes three UK warehouses, 1,200 jobs at risk
“They defied odds and became the first Amazon workers in the UK to go on strike.
“They are taking on one of the world’s biggest companies to fight for a decent standard of living.
“They should be proud of themselves.
“After six months of ignoring all requests to listen to workers’ concerns, GMB urges Amazon UK bosses to do the right thing and give workers a decent wage increase.”
An Amazon spokesperson said, “A small percentage of our employees are involved.”
Interactive Investor’s head of investment Victoria Scholar said: “Amazon employees in many industries are stepping up workers’ strikes across the UK as inflation robs them of their take home wages.
“In August, Amazon offered workers a measly 50p an hour pay rise. Trying to reduce costs by not having to increase them.
“Amazon has done very well during the pandemic thanks to the e-commerce boom and surge in parcel deliveries, but with the post-COVID return to bricks-and-mortar stores and soaring inflation, 2022 will be a tough year for technology overall. bottom.
“Earlier this month, CEO Andy Jassy said he plans to cut about 18,000 jobs to weather the tough economic climate. The date is in stark contrast to last year’s slide. am.”
read more: UK business output falls at steepest pace in two years
The index also rose on data showing that UK producer input prices rose by 16.5% annually in December, slowing from the 18.0% annual increase seen in November.
According to the National Bureau of Statistics, input prices fell 1.1% on a month-to-month basis in December, compared with a revised monthly decline of 0.2% in November.
Meanwhile, the pound (GBPUSD=X) is slightly lower at $1.2326 against the dollar and at 1.1320 euros against the euro (GBPEUR=X).
Brent crude (BZ=F) rose and was trading around $86 (£69.84) a barrel as rising Chinese demand indicated potential upside for the market.
In Asia, Tokyo’s Nikkei 225 (^N225) rose 0.35% to gain 27,395 points, Hong Kong’s Hang Seng (^HSI) rose, and the Shanghai Composite (000001.SS) remained closed for the Lunar New Year holiday. bottom.
Stock markets were mixed on Tuesday after industry giants 3M (MMM), Johnson & Johnson (JNJ) and GE (GE) beat earnings expectations but warned of a tough year ahead.
The Dow Jones (^DJI) closed 0.31% higher at 33,733 points. The S&P 500 (^GSPC) closed flat at his 4,016 points, while his tech-heavy NASDAQ (^IXIC) dropped 0.27% to his 11,334.
S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the red as trading opened in Europe on Wednesday.
