The daily business briefing: July 6, 2023

1. Meta launches Threads, its alternative to Twitter, a day early

Meta's new app Threads, which allows users to post their own messages and like or reply to others, was released on Wednesday evening, a day ahead of schedule. Social media users have dubbed Threads a "Twitter killer," as it could cause Twitter users, upset with changes being made by CEO Elon Musk, to leave. In an Instagram post, Meta founder and CEO Mark Zuckerberg said the vision behind Threads "is to take the best parts of Instagram and create a new experience for text, ideas and discussing what's on your mind. I think this world needs this kind of friendly community, and I'm grateful to all of you who are part of Threads from day one." In its first seven hours, Threads saw 10 million sign ups.

The Associated Press Tech Crunch

2. UPS strike looms after union negotiations fall apart

The United Parcel Service (UPS) moved closer to its first strike in 27 years after contract negotiations with the Teamsters Union fell apart Wednesday. Both sides accused one another of walking away from talks. The existing contract expires at the end of July. Union workers want better working conditions and higher pay, and point to workers' efforts to maintain deliveries during the Covid-19 pandemic, which "fueled big profits for the company," The Guardian reported. UPS, which delivers more than 20 million packages around the world per day, has "the biggest unionized workforce of any company" in America, the BBC reported. A walkout could give rival FedEx an advantage that UPS would struggle to overcome, Satish Jindel, president of logistics consulting firm ShipMatrix, told The Guardian.

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The Guardian BBC

3. Biden's DOJ appeals order blocking officials from communicating with social media firms

The Department of Justice (DOJ) plans to appeal a judge's order barring federal officials and agencies from communicating with social media companies about "content containing protected free speech." The injunction, issued by US District Judge Terry Doughty, "is part of a lawsuit brought by Republican attorneys general from Missouri and Louisiana," CNN reported. The lawsuit accuses the Biden administration of trying to silence conservatives by harping on social media sites to remove misinformation related to the Covid-19 pandemic. The DOJ's appeal would take the fight to the 5th US Circuit Court of Appeals, "arguably the nation's most conservative appeals court," CNN said.

CNN

4. GQ pulls article critical of Warner Bros. Discovery CEO David Zaslav

An article posted to the GQ website critical of Warner Bros. Discovery CEO David Zaslav was quickly removed on Monday, with the publication saying it had not been properly edited. Written by freelancer Jason Bailey, the article, "How Warner Bros. Discovery CEO David Zaslav Became Public Enemy Number One in Hollywood," dove into recent debacles, including the backlash to Zaslav's decision to lay off the leadership team at Turner Classic Movies. A spokesman for Warner Bros. Discovery told The Wall Street Journal on Wednesday GQ did not factcheck the article before it was published and the company contacted the magazine to point out inaccuracies, while a GQ spokeswoman said the article wasn't thoroughly edited. When it was put back up online, references comparing Zaslav to Logan Roy on "Succession" and Edward Lewis in "Pretty Woman" were removed. The parent company of Condé Nast, which owns GQ, is Advance, a main stakeholder in Warner Bros. Discovery.

The Wall Street Journal

5. Stock futures fall as market braces for further rate hikes

U.S. stock futures fell Thursday "on mounting concerns of a slowdown in the global economy," The Wall Street Journal reported. Futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq-100 all lost about 0.5%. Traders are anticipating further interest rate hikes, especially after minutes from the Federal Reserve's June meeting showed "almost all" rate-setters expect at least two more rate increases by the end of the year. Treasury Secretary Janet Yellen arrives in China on Thursday and will "attempt to further repair the relationship between the world's two largest economies," The Economist said.

The Wall Street Journal The Economist