The U.S. labor market kicked off 2024 with an impressive show, as the Bureau of Labor Statistics reported an increase in job growth. In January, nonfarm payrolls expanded by 353,000, surpassing the Dow Jones estimate of 185,000.
The unemployment rate remained steady at 3.7%, marking the 24th consecutive month with a jobless rate below 4%.
Average hourly earnings experienced an increase, growing by 0.6% monthly and 4.5% on a year-over-year basis, exceeding the forecasted 4.1%. Key contributors to the job growth included professional and business services with 74,000 jobs, health care with 70,000, and retail trade with 45,000.
But…
Layoffs in the U.S. also increased to a 10-month high in January, impacting over 82,300 employees across various sectors, as reported by Challenger, Gray & Christmas.
This marks the second-highest number of layoffs in any month since January 2009, with the previous peak in January 2023 when nearly 103,000 people lost their jobs.
New York Community Bancorp Faces Stock Slide
In a tumultuous week for New York Community Bancorp (NYCB), the bank's shares plunged, raising concerns about regional banks less than a year after a short-lived banking crisis.
NYCB reported a net loss of $252 million for the last quarter, a stark contrast to the $172 million net income the previous year. Dividends were also slashed from 17 cents per share to 5 cents.
The bank's loss for the fourth quarter was driven by a $552 million provision for credit losses, with specific mention of two loans in the office and co-op sectors of the Commercial Real Estate (CRE) portfolio.
This follows NYCB's acquisition of the assets and liabilities of Signature Bank, a regional bank that collapsed in early 2023. The acquisition, along with another of Flagstar Bank in 2022, pushed NYCB's assets over $100 billion. Crossing the $100 billion threshold brings regulatory requirements for banks to set aside more capital, limiting their lending capacity.
Ferrari Q4
Ferrari reported a net profit of 1.26 billion euros, or $1.36 billion, for the year 2023, including 294 million euros, or $317.9 million, in the fourth quarter.
Ferrari's revenue increased by 17% to 5.97 billion euros ($6.46 billion) for the year, with an 11% increase in the fourth quarter from 1.37 billion euros in 2022.
Its adjusted earnings before interest and taxes (EBIT) for the year reached 1.62 billion euros($1.75 billion). Shipments rose by 3% to 13,663 vehicles in 2023, driven by the success of its Purosangue model.
The positive outlook led to a surge in shares by 9.2%, nearing a record $100 billion market value.
Ferrari's guidance for 2024 includes revenue of over 6.4 billion euros, or $6.9 billion, and adjusted per-share profit of at least 7.50 euros, with an adjusted EBIT margin of at least 38%.
Lewis Hamilton, the seven-time Formula One champion, is set to leave Mercedes at the end of the 2024 season and join Ferrari in 2025 on a multi-year deal. The decision marks the end of Hamilton's 17-year relationship with Mercedes-Benz in Formula One.
U.S. Beef Industry
The American beef industry is experiencing a historic low, with nationwide beef cattle inventory hitting 28.2 million—the lowest level since the 1970s and down 2% from the previous year according to USDA.
The total number of U.S. cattle fell to its lowest level since 1951, with all cattle and calves totaling 87.2 million at the start of 2024, down 2% from the previous year.
Agricultural economists attribute this decline to a persistent drought spanning the last three years, particularly affecting major beef-producing states such as Texas, Nebraska, Kansas, California, and Oklahoma. The impact is multifaceted, with high input costs, and inflation.
The USDA estimates beef imports reached 3.71 billion pounds in 2023, up 9.3% from the previous year, and predicts further increases to 3.77 billion pounds in 2024.
Beef sold for an average of $5 per pound last year, according to the Bureau of Labor Statistics.
EU $54 Billion Aid for Ukraine
European Union leaders have approved a $54 billion support package for Ukraine, overcoming weeks of resistance from Hungarian Prime Minister Viktor Orbán, a close ally of Russian President Vladimir Putin, who had previously blocked the aid late last year.
The aid package, described by EU President Charles Michel as "steadfast, long-term, predictable funding," aims to support Ukraine's economic stability and essential services over the next three years.
The first tranche of 4.5 billion euros from the EU is expected to reach Ukraine in March, with a total of 50 billion euros slated to be disbursed from the EU's shared budget through 2027.
Joe Rogan's Renewed Spotify Deal
Spotify has announced a renewed multi year deal with Joe Rogan, but this time it is not exclusive to the platform and will be available on various platforms, including Apple, Amazon, and YouTube.
The Wall Street Journal estimates the new deal to be worth up to $250 million. The initial exclusive licensing deal in 2020, valued at over $200 million for 3.5 years, contributed to a 232% increase in overall podcast consumption on Spotify during Rogan's exclusivity period.
Rogan's podcast, launched in 2009, gained immense popularity, consistently ranking as the number-one podcast globally for the past three years.
Spotify has been shifting away from exclusivity as the company laid off 200 employees in 2023 from its podcasting unit and started relinquishing exclusive deals including the recent "Call Her Daddy" Podcast.
Advertising Firm Publicis Settles First-Ever Opioid Marketing Lawsuit
French advertising company Publicis has agreed to pay a $350 million settlement, marking the first-ever resolution of an opioid marketing lawsuit. The lawsuit accused Publicis of falsely promoting Purdue Pharma's OxyContin as safe and contributing to the opioid crisis.
The agreement requires Publicis to pay the substantial amount within the next two months and refrain from taking on any more opioid clients.
Publicis, working with consultancy McKinsey from 2010 to 2019, developed Purdue's "Evolve to Excellence" campaign. This campaign targeted doctors, claiming that OxyContin deterred addiction and abuse while urging physicians to increase patients' doses, even when medically inappropriate.
The opioid crisis has claimed the lives of over 560,000 Americans between 1999 and 2020.
Publicis stated that it did not admit wrong doing.