—— U.S. Wage Growth Unexpectedly Accelerates; Meta’s Market Value Soars by $200 Billion in One Day; Owner Sells Nvidia Office Campus; BNP Launches Direct Loan Fund; Tesla Vehicles Have Steering Failures; Apple’s China Sales Continue to Decline; Bezos Plans to Sell 50 Million Shares
1. U.S. Wage Growth Unexpectedly Accelerates
The U.S. Bureau of Labor Statistics released data today showing that non-farm payrolls increased by 353,000 in January, with the unemployment rate remaining at 3.5%. Hourly wage growth reached a new high since March 2022.
After the release of the data, U.S. Treasury yields, the S&P 500, and the dollar all saw an increase. However, the likelihood of the Federal Reserve cutting interest rates starting in March, and the total rate cuts for the year, have decreased again.
Kathy Jones, Chief Fixed Income Strategist at Charles Schwab, stated that the new data supports the Fed’s decision to keep the benchmark interest rate steady.
The sectors that saw the highest job growth in January were healthcare, business services, and retail.
This stronger-than-expected wage growth reinforces the Fed’s stance on holding interest rates steady.
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2. Meta’s Market Value Soars by $200 Billion in One Day
Two years ago, Facebook’s parent company Meta saw its stock suffer the biggest drop in U.S. stock market history.
However, this Thursday, Meta Platforms, now transformed, reported an earnings surprise that thrilled investors. Meta’s stock surged 21%, adding a record $200 billion to its market value in a single day. This dramatic turnaround is one of the biggest in stock market history.
Meta, which had laid off 22% of its staff in 2023, announced a $50 billion stock buyback program and its first-ever dividend. The company also pledged to aggressively invest in generative AI technologies and significantly reduce costs.
Meta’s stock surge marks a remarkable recovery, showing the potential of its AI-driven future.
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3. Owner Sells Nvidia Office Campus
The owner of Nvidia’s Silicon Valley office campus, Preylock, is quietly selling a seven-building office complex. The deal involves 2 million square feet of development rights but excludes Nvidia’s newly constructed Voyager and Endeavor office buildings.
Preylock has received an offer from a major overseas investor, with the transaction expected to exceed $400 million, according to the brokerage firm Newmark Group handling the sale.
Nvidia is the only tenant in the campus, with the lease set to expire in six years.
This sale could pave the way for further developments supporting AI technologies.
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4. BNP Launches Direct Loan Fund
France’s BNP Paribas Asset Management is attempting to establish a €1 billion direct loan fund primarily focused on medium-sized businesses.
Unlike BNP’s other private credit funds, the new fund will offer a combination of single-layer debt packages with varying risk ratings, whereas previous funds have focused solely on lower-interest priority loans.
BNP plans to use its bank funds to launch the fund and is also seeking to raise external investor capital.
In 2020, BNP launched the €577 million SME Debt Fund II.
This new initiative reflects BNP’s expanded focus on private credit in the medium-sized business sector.
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5. Tesla Vehicles Have Steering Failures
After receiving 2,388 complaints about steering failures in Tesla vehicles, the National Highway Traffic Safety Administration (NHTSA) has announced an expanded investigation into the company’s best-selling Model 3 and Model Y.
A total of 334,569 Model 3 and Model Y vehicles will be investigated. NHTSA reported that more than 50 vehicles required towing after steering failures, with one car even crashing.
If NHTSA finds substantial defects, Tesla will need to recall and replace a significant number of vehicle parts, unlike previous software fixes.
NHTSA is also investigating issues with Tesla’s seatbelts and the progress of repairs to the autopilot system.
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6. Apple’s China Sales Continue to Decline
This Thursday, Apple released its Q1 fiscal report, showing a 13% decline in revenue from China to $20.8 billion, falling short of analyst expectations of $23.5 billion, marking the worst Q1 performance in China since 2020.
However, Apple’s overall revenue rose 2.1% to $119.6 billion, surpassing analysts’ 1% expectations, reversing a four-quarter decline.
iPhone revenue increased by 6%, the best performance among all product lines. Today, Apple also launched its Vision Pro AR glasses, priced at $3,499.
Despite overall growth, the continuing decline in Apple’s Chinese sales is a concern for its future prospects.
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7. Bezos Plans to Sell 50 Million Shares
Amazon’s earnings report this week showed record growth in online sales, and the stock surged 8% to $172 per share. Founder Jeff Bezos’ personal wealth increased by $13 billion in a single day, narrowing the gap between him and the world’s richest person, Elon Musk, to $5.7 billion.
According to regulatory filings, Bezos, 60, plans to sell 50 million shares, currently valued at $8.6 billion, by January 31, 2025.
Recently, Bezos moved from Seattle to Miami, which has no capital gains tax, meaning Washington State will miss out on the potential capital gains tax revenue.
This marks the first time Bezos has planned to sell Amazon shares since 2021.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.