The daily business briefing: October 25, 2023
Dozens of states accuse Meta of making social media addictive, the UAW expands its strike to GM's biggest plant, and more
1. States sue Meta, saying its sites harm kids
Dozens of state attorneys general on Tuesday sued Meta, parent of Facebook and Instagram, accusing the social media powerhouse of harming young users with addictive features, including frequent notifications and infinite news feeds. The lawsuit accuses the company of contributing to a national mental health crisis. "Meta has profited from children's pain by intentionally designing its platforms with manipulative features that make children addicted to their platforms while lowering their self-esteem," said New York Attorney General Letitia James. Meta said it was "disappointed" the officials sued instead of "working productively" with the company, saying it shared "the attorneys generals' commitment to providing teens with safe, positive experiences online." CNN
2. UAW expands strike to GM's biggest plant
The United Auto Workers union on Tuesday expanded its unprecedented strike against all three of Detroit's big automakers, with 5,000 union members walking out at General Motors' biggest plant. GM's Arlington assembly plant in Texas makes the Chevy Tahoe, GMC Yukon and Cadillac Escalade, big SUVs that are some of GM's most profitable models. GM said it was "disappointed by the escalation of this unnecessary and irresponsible strike," saying it had just made a "comprehensive" new offer increasing the total value of its proposed agreement by 25%. A day earlier, union members walked out at a Michigan factory the UAW called the "largest plant and biggest moneymaker" for Chrysler's Stellantis. Bloomberg
3. Alphabet cloud division falls short of expectations
Alphabet's cloud division on Tuesday reported that the third quarter was its slowest in nearly three years. Google's parent company beat analysts' expectations for profit and sales, but the cloud slowdown dragged down Alphabet's stock by about 6% in overnight trading. Software giant Microsoft reported that its cloud business had a strong quarter. Microsoft said revenue at its Intelligent Cloud unit, which includes its Azure cloud computing platform, grew to $24.3 billion, surpassing Wall Street estimates of $23.49 billion, according to LSEG data. Azure revenue was up 29%, beating market research firm Visible Alpha's growth estimate of 26.2%. Microsoft shares were up 3.5%. Reuters
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
4. IEA says fossil fuel demand to peak in 2030
Global oil, gas and coal demand will peak by 2030 as countries shift to cleaner energy sources and China's economic growth slows, the International Energy Agency forecast in its annual World Energy Outlook report, released Tuesday. "The transition to clean energy is happening worldwide and it's unstoppable," said IEA Executive Director Fatih Birol. "It's not a question of 'if', it's just a matter of 'how soon' — and the sooner the better for all of us." The IEA's forecast, Reuters noted, conflicted with the view of the Organization of Petroleum Exporting Countries (OPEC), which says oil demand will keep rising beyond 2030, justifying massive investment in new production projects. Reuters
5. Stocks fluctuate as earnings reports pour in
The three major stock indexes rose on Tuesday as several big companies, including Coca-Cola, General Electric and 3M, boosted their 2023 outlooks. The Dow Jones Industrial Average and the S&P 500 gained 0.6% and 0.7%, respectively. The tech-heavy Nasdaq Composite jumped 0.9%. Stock futures struggled early Wednesday. Dow futures were up 0.1% while those tied to the S&P 500 and the Nasdaq were down 0.3% and 0.6%, respectively, at 7 a.m. ET. More major companies report third quarter earnings Wednesday, including IBM and Meta in the afternoon. About a quarter of S&P 500 companies have reported results so far, with 78% of them beating expectations. The Wall Street Journal, CNBC
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
5 high rating cartoons about Biden's low poll numbers
Cartoons Artists take on checklists, ice creams, and more
By The Week US Published
-
A gastronomic tour of the Costa de la Luz
The Week Recommends This Spanish spot has fantastic restaurants "rooted in the region's distinctive produce"
By The Week UK Published
-
Crossword: May 19, 2024
The Week's daily crossword
By The Week Staff Published
-
Downtown St. Louis is in a real estate 'doom loop'
Under the Radar The city is rife with abandoned buildings and vacant lots, with its real estate market in dire straits
By Justin Klawans, The Week US Published
-
How will the FTC's ban on noncompete agreements affect the workforce?
The explainer Short answer: Competition will only get fiercer
By Devika Rao, The Week US Published
-
Why is Tesla stumbling?
In the Spotlight More competition, confusion about the future and a giant pay package for Elon Musk
By Joel Mathis, The Week US Published
-
The wine industry is getting pressed as young people drink less
Under the Radar The once-dominating drink is not aging well
By Anya Jaremko-Greenwold, The Week US Published
-
The largest insurance company payouts
In The Spotlight Fights over insurance have been in the spotlight following the collapse of the Francis Scott Key Bridge in Baltimore
By Justin Klawans, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published