📱It seems Mark Zuckerberg can't just be a good Alien, but also a good CEO

Good afternoon! Today we will be covering the astounding growth in last months non-farm payroll numbers, a $5 Billion laundry sale and the insane comeback of Meta.

Reading time: 3.5 Min

ECONOMY
💼The job market is red hot

The U.S. economy displayed robust job growth in January, adding 353,000 nonfarm payrolls, surpassing expectations of 185,000, as reported by the Labor Department.

The unemployment rate remained steady at 3.7%, outperforming the estimated 3.8%. Wage growth exhibited strength, with average hourly earnings rising 0.6% for the month, doubling the monthly estimate, and a substantial year-over-year increase of 4.5%, well above the forecasted 4.1%.

Job expansion was widespread, with professional and business services leading at 74,000, followed by health care (70,000) and retail trade (45,000). The report also revised December's job gains upward by 117,000, highlighting the resilience of the U.S. labor market. The data prompted a shift in futures markets, now pricing an 80% chance that the Federal Reserve will not cut interest rates in March. The strong job report may delay rate cuts in 2024, prompting a recalibration of market expectations. The broader economic picture remains complex, with concerns about inflation, economic growth, and the Fed's monetary policy.

M&A
🧺BDT & MSD Partners is considering selling Alliance Laundry Systems for $5 Billion

BDT & MSD Partners, the merchant bank behind Alliance Laundry Systems, is considering a sale of the U.S. laundry equipment manufacturer, potentially valuing it at nearly $5 billion, sources reported.

The 116-year-old commercial laundry provider, known for brands like Speed Queen and UniMac, is collaborating with Morgan Stanley to prepare for the sale, set to launch in the coming weeks. BDT & MSD seeks a valuation for Alliance Laundry exceeding 13 times the company's 12-month EBITDA of nearly $350 million.

The bank, formed by the merger of Michael Dell-backed investment firm BDT Capital Partners and Byron Trott's merchant bank MSD Partners, manages over $60 billion in assets. Alliance Laundry, with a global presence, serves various sectors, including military facilities, hotels, and healthcare.

STOCK MARKET
📱Meta makes history: Triples Profits and debuts first dividend

Meta Platforms, the parent company of Facebook, experienced a historic one-day gain, adding $196 billion to its stock market value, the largest increase by any company in Wall Street history. This surge followed Meta's announcement of its first dividend and robust quarterly results. The stock rose by 20.3%, reaching a market value exceeding $1.22 trillion. Meta's move to offer a dividend, a rare occurrence among technology giants, aims to present the company as more mature and serious. This development puts Meta in the company of other tech heavyweights like Apple, Microsoft, and Nvidia, which also offer dividends. The dividend plan could result in significant payouts for CEO Mark Zuckerberg, who owns around 350 million Meta shares. Despite the small dividend yield compared to other companies, the move could attract a broader investor base, including those focused on dividend-paying stocks through exchange-traded funds (ETFs). Meta's positive outlook is fueled by strong ad sales, rebounding user growth, and efficient cost management, contributing to its tripled net income of $14.02 billion. The company's stock is up 35% in 2024, marking a notable rebound from a significant loss in market value last year.

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