Plus, Eurozone inflation fell to 9.2% in Dec.
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The U.S. economy added 223,000 jobs in December, 23,000 more than the Dow Jones estimate of 200,000. The unemployment rate also fell to 3.5%, 0.2% below expectation and back to its pre-pandemic February 2020 reported rate. More: - Job growth slowed in December compared to November’s 256,000 gain.
- The leisure and hospitality sector gained the most jobs, with 67,000 added in December.
- The healthcare sector added 55,000 jobs, followed by construction with 28,000 and social assistance with 20,000.
- The labor force participation rate rose to 62.3% from the 62.1% reported in November.
- The U.S. economy added about 4.5 million jobs in 2022, marking one of the best years of job growth.
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Southwest Airlines said it expects to post a loss for its Q4 due to the collapse of its systems following the winter storm, which led to more than 16,700 flight cancellations. The airline estimates flight cancellations from Dec. 21 through Dec. 31 would reduce its Q4 pretax income by $725M to $825M. More: - The estimated lost income includes $400M to $425M in lost revenue and charges related to reimbursements to affected travelers, premium pay for employees, and other costs.
- Before the winter, Southwest had announced it would resume its dividend payments of 18 cents a share to be paid out on Jan. 31.
- Southwest executives have admitted that some of the airline’s systems had not kept up with the airline’s growing size and complexity.
- CEO Bob Jordan said the airline spends about $1B a year on technology but will re-examine its processes, systems, and plans and may speed up some investments.
- Southwest said it would refund all those impacted by the cancellations and would reimburse expenses such as hotel rooms, rental cars, and airfare on rival airlines.
- The airline also announced it would give 25,000 bonus points worth about $300 to impacted passengers.
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Kenneth Griffin's hedge fund and electronic-trading businesses posted record revenues for 2022. Citadel, the hedge fund, generated about $28B in revenue, up from 2021's $16.2B record. Market maker Citadel Securities posted $7.5B in revenue, up from the previous record of $7B reported in 2021. More: - Citadel is expected to return about $7B in profits to investors.
- Its main fund, Wellington, returned 38.1%, compared to the S&P 500's nearly 20% decline in 2022.
- Citadel told its clients it benefitted from successful commodities bets; the firm doesn't provide details on its significant trades.
- Citadel Securities handles more than 20% of daily U.S. stock market trades.
- The firm also trades options, futures, Treasurys, and currencies.
- Last year the firm added new institutional clients to its global market-making operation and improved its technology and analytics.
- Citadel Securities benefits from increased trade volumes and volatility, which allows it to earn revenue even when markets are down.
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The Environmental Protection Agency (EPA) has proposed stricter rules for airborne soot produced by factories and vehicles. The measures are expected to cost the industry up to $390M annually but would save 4,200 lives annually and about $43B in healthcare costs. More: - The EPA is targeting tiny particles of airborne pollutants that can enter the lungs and cause various health effects, including asthma, heart attacks, and premature death.
- The proposal is now open for public comment for the next 60 days.
- The EPA plans to issue its final rule on airborne soot in 2024.
- The plan is expected to be fully implemented in 2032.
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U.S. Bankruptcy Judge Martin Glenn ruled that defunct crypto firm Celsius Network owns most of the cryptocurrency that its customers deposited on its platform. This means that Celsius customers would be the last in line to receive any repayment in the crypto lender’s bankruptcy. More: - The ruling impacts roughly 600,000 accounts that held assets valued at about $4.2B.
- Celsius filed for bankruptcy in July following the collapse of crypto tokens TerraUSD and Luna in May.
- Celsius suspended withdrawals from its platform in June.
- At the time of the filing, Celsius estimated its had assets and liabilities between $1B to $10B, with more than 100,000 creditors and roughly $167M in cash.
- Judge Glenn on Wednesday said Celsius does not have enough funds to fully repay the $4.2B worth of customer deposits.
- Celsius founder and former CEO Alex Mashinsky withdrew $10M from the firm weeks before the crypto lender suspended customer withdrawals in June.
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Samsung warned that its October-December quarter profit fell 69%, its lowest since 2014. The tech giant said its operating profit would likely come in at about 4.3T won ($3.37B), down from 13.87T won (~$11B) reported during the same period last year. More: - Samsung's operating profit estimate also falls short of analysts' estimates, who were expecting 5.9T won (~$4.7B).
- Samsung said its revenue likely declined 9% compared to 70T won ($56B) reported last year.
- Samsung is scheduled to release its Q4 earnings on Jan. 31.
- Analysts expect Samsung's profits to fall again in the current quarter, with the company likely reporting an operating loss for its chips business.
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- Annual inflation in the Eurozone fell more than expected to 9.2% in December, down from 10.1% reported in November and $10.6% in October. Annual inflation rates ranged from 5.6% in Spain to 20.7% in Latvia.
- Stitch Fix announced it was laying off 20% of its salaried employees, and its current CEO, Elizabeth Spaulding, is stepping down effective immediately. Stitch Fix founder Katrina Lake will succeed Spaulding.
- Electric vehicles accounted for 5.8% of all vehicle sales in the U.S. in 2022, up from 3.2% reported in 2021. Automakers sold 807,180 EVs in the U.S. last year. Tesla accounted for about 65% of total EV sales.
- WWE’s controlling shareholder Vince McMahon elected himself as executive chairman of the company months after he retired from the company over a sexual misconduct scandal.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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