The daily business briefing: June 21, 2023

1. Gannett sues Google over online ad practices

Gannett, the biggest U.S. newspaper chain, on Tuesday filed a lawsuit accusing Google of abusing a monopoly over online ad technology in violation of federal antitrust laws. Gannett argued Google and its parent company, Alphabet, were hurting competition by cutting revenue for publishers who use the technology to buy and sell online ads. Gannett said publishers' advertising revenue has plunged nearly 70% since 2009, forcing newspapers to slash jobs or shut down. Meanwhile, the complaint said, "Google enjoys exorbitant monopoly profits." Dan Taylor, vice president of Google, said Gannett's "claims are simply wrong," and publishers using Google tools "keep the vast majority of the revenue." The Justice Department and the European Commission also have filed antitrust cases against Google over its ad practices.

The New York Times

2. Rivian reaches deal with Tesla to access Superchargers

Electric-vehicle startup Rivian Automotive on Tuesday became the latest automaker to strike a deal with Tesla to access more of Tesla Superchargers. Rivian drivers will be able to use more than 12,000 Tesla Superchargers in the United States and Canada starting in 2024. Owners of Rivian's R1T and R1S models will have to use an adapter, but future Rivian models will be equipped with Tesla's charging port design starting in 2025. The agreement comes weeks after Ford and General Motors announced similar deals. The agreements have further cemented Tesla's dominance in charging facilities for EV owners in North America.

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The Wall Street Journal

3. FedEx shares fall as demand weakens

FedEx released a 2024 profit outlook that fell short of expectations due to falling demand for package deliveries, sending its shares falling 3% in pre-market trading on Wednesday. Rival courier companies in Europe also struggled, with Deutsche Post and PostNL falling 2.7% and 1.4%, respectively. FedEx said Tuesday its earnings in the next fiscal year will be around $17.50 a share, compared to an average estimate of $18.31 by analysts surveyed by Bloomberg. FedEx CEO Raj Subramaniam has launched a $4 billion cost-cutting plan, but it was offset by the effect of falling demand. Chief Financial Officer Michael Lenz said FedEx is struggling to improve profitability in "a challenging demand environment."

Bloomberg

4. Stocks struggle ahead of Powell report to Congress

U.S. stock futures were little changed early Wednesday in a sign of investor caution after last week's rally, and ahead of Federal Reserve Chair Jerome Powell's semi-annual report to Congress on Wednesday. Futures tied to the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were essentially flat at 6:45 a.m. ET. S&P 500 futures floated in a narrow range after the index's first back-to-back losses in nearly four weeks, as economic bellwether FedEx dropped 3% in pre-market trading on weakening shipping demand. A hot inflation reading in the United Kingdom dampened investor sentiment around the world, as it added to pressure central banks are feeling around the world to raise borrowing costs to fight high inflation, according to Bloomberg.

CNBC Bloomberg

5. Report: U.S. charitable giving fell in 2022

Charitable giving fell 3.4% in 2022 to $499.3 billion, marking just the fourth time in four decades the number has declined, according to a Giving USA report released Tuesday. Adjusting for inflation, the drop was 10.5%. The decline came as nonprofits report an increase in demand for services, now that pandemic aid has ended and high inflation is taking a toll on families. Giving USA Foundation Chair Josh Birkholz said the data could have been worse. "I go back and forth on whether it's encouraging or discouraging," Birkholz told The Associated Press. "There was a 20 to 25% decline in the stock market and an 8% inflation rate, but Americans still gave nearly a half trillion dollars."

The Associated Press