Good morning. Mother’s Day has come and gone (s/o to all the moms out there, you rock🥳💪).

Next up on the family celebration train? The holiday honoring our favorite purveyors of corny, pun-based jokes – Father’s Day – on June 16.

In today’s edition:

• 👎 Consumers are souring on the US economy
• 💰 A look at where marketers are spending their ad dollars
• 🤔 AI dating AI: the future?

… and more.

🚀⏰ Ready, Set, Go: Today’s news should be a ~4.71-minute read (1,255 words).

P.S. First time reading? Subscribe here for free.

"The person who never made a mistake, never made a discovery."

–Samuel Smiles (1812-1904)

Data indicates that economic pessimism is, as Mugatu would say, so hot rn. US consumer sentiment fell last month to its lowest level since November, as shoppers grew more worried about persistently high inflation, according to the latest University of Michigan survey of consumers.

By the numbers: On a month-to-month basis, the US consumer sentiment index fell 13% in April, marking the biggest drop since mid-2021. And it seems everyone was munching on economic Lemonheads: The monthly decrease was seen across all age, income, and education groups, as well as political party affiliation.

• Additionally, Americans’ expectations for future inflation rose for both the one-year (3.5%) and five-year (3.1%/year) periods included in the survey.
• Chicago Fed President Austan Goolsbee said the data “bodes awful for progress on inflation,” but added that investors still believe the central bank will succeed in bringing inflation back down to its 2% target.

The report came as a surprise to many economists. Experts had predicted US consumer sentiment would decrease by ~1.5% in April – instead of the 13% decline in reality – since the report came as the stock market is riding a strong rally, gas prices are holding somewhat steady, and the unemployment rate remains historically low at 3.9%.

But the writing may have been on the wall. There have been a growing number of signs in recent weeks that American consumers, particularly those with lower incomes, have begun to pull a Fat Joe and lean back.

• McDonald's, Starbucks, KFC, Pizza Hut, 3M (maker of Scotch tape and Post-it Notes), and Newell Brands (Coleman and Rubbermaid), all revealed on recent earnings calls that they’re seeing consumers be increasingly cautious with discretionary spending.

👀 Looking ahead… Walmart and Home Depot both report earnings this week, which should include insights as to how US consumers are holding up, while the April Consumer Price Index will be published on Wednesday alongside US retail sales data.

📊 Flash poll: To all US consumers: which letter grade would you assign to the current state of the US economy?

• A+/A/A-
• B+/B/B-
• C+/C/C-
• D+/D/D-
• F+/F/F-

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🇨🇭 Switzerland won the 68th Eurovision song contest following a controversial grand final. Swiss singer Nemo, who entered Saturday night’s grand final as the bookmakers’ third favorite, won over the judges with their opera/rap/rock song “The Code” to become the first non-binary artist to win Eurovision. Notably absent from the grand final was Dutch contestant Joost Klein, who had advanced from the semifinal round but later received a disqualification over what Eurovision organizers described as an “incident” involving a production crew member.

🇨🇳🇺🇸 The Biden administration is raising US tariffs on imports from China, per multiple reports. The move, which sources say will be officially announced tomorrow, is the result of a four-year White House review of tariffs imposed by former President Trump that cover ~$370 billion/year worth of Chinese goods. Following its review, the Biden administration has decided to keep Trump’s tariffs on China in place and add a range of items to the list, including a provision to quadruple the rate for Chinese-made EVs (from 25% to 100%).

🇷🇺 President Vladimir Putin replaced Russia’s defense minister with a civilian. The Kremlin said the decision to promote Andrey Belousov to defense minister despite his lack of military background was due to a need for “innovation,” as well as to reign in the Russian military’s rising budget. Analysts say the move indicates that Putin is seeking to align Russia’s economy more closely with the war effort.

For many of Hollywood’s biggest studios, today marks the beginning of “upfronts” – a time-honored tradition of wooing advertisers with previews of TV’s upcoming shows.

And it comes at a time when brands are shifting more of their spend away from traditional TV ads:

• Excluding political advertising, marketers are expected to spend ~$60 billion on traditional and digital TV ads in the US this year, down from ~$64 billion in 2019.
• Major brands are accelerating the shift: For example, Hershey’s share of advertising dollars directed towards TV currently sits at ~30%, down from ~80% five years ago. And Mondelez, the maker of Oreos, Ritz crackers, and Sour Patch Kids, is spending ~15% of its US ad budget on TV this year, down from ~42% three years ago.

Yes, but… Traditional TV advertising does have one bright spot still attracting marketers – live sports, which accounted for 96 of the 100 most-watched broadcasts last year.

Streaming platforms aren’t filling this TV gap. High prices, lower reach, and audiences not as open to seeing ads as on other platforms mean marketers are looking elsewhere to spend their dollars (for now at least). Main beneficiaries of the drop in TV ad spend have been social platforms (Snap, Instagram, YouTube, TikTok, etc.) and retail platforms with attached ad networks (Amazon, Walmart, etc.).

Case in point: Ad spending in the US retail media sector, a category that includes retailers’ ad platforms, is expected to overtake traditional TV ad spending next year.

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💬 Quoted: “There is a world where your [AI] dating concierge could go and date for you… Then you don’t have to talk to 600 people.”

• In yet another example of Black Mirror brought to life, Bumble founder and executive chair Whitney Wolfe Herd recently revealed the dating app is considering implementing a feature where users could create AI dating avatars (or concierges) that could act as stand-ins for themselves when reaching out to prospective partners online. And, while many people have expressed uneasiness with the idea of an AI-based dating scene, it’s already become a reality. Survey data indicates roughly one-third of all US men ages 18-34 use ChatGPT for relationship advice, while the same is true for 14% of women in the same age bracket (the other 86% just rely on their detective-like friends in the group chat).

💼 Stat of the Day: Fewer young adults are entering the US workforce today compared to previous generations, according to a new report from the St. Louis Fed. The data indicates 35% of Americans aged 18-24 had no income through wages or a salary in 2022, a percentage that has ticked up steadily from 22% in 1990.

🤔 Did You Know? Bolivia has experienced more than 190 coups and revolutions since its independence was declared in 1825. The last known attempt was in 1984, two years after the country's transition to democracy.

📰 Worth a Read: A Broken Marriage, a Big Inheritance and the Murder of an Art Kingmaker → (WSJ)

• ☝️ The most powerful solar storm in 20+ years struck Earth on Friday, causing the Northern Lights to appear in locations further south than usual around the globe.

BUSINESS & MARKETS

in partnership with Slumber

• 💰 US markets closed mixed on Friday (S&P: +0.2%; Dow: +0.3%; Nasdaq: -0.03%); however, all three indexes closed higher on the week.
• 🍏 Apple workers at the company's first formally recognized union location in Maryland voted to authorize a strike, while Apple workers at a separate New Jersey store voted against unionizing. | 📱 Verizon, AT&T, and T-Mobile will pay a combined $10.2 million to settle claims they lied to customers about their “unlimited” plans and “free” phone offers.
• 🍔 McDonald's is considering a $5 value meal aimed at attracting more cost-conscious consumers. (Fast food vs. fast casual: a battle is brewing)

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SPORTS, MEDIA & ENTERTAINMENT

• 🍿 Kingdom of the Planet of the Apes earned $56.5 million at the domestic box office, marking the second-best opening weekend in North America this year.
• 🚨 Police were called to Drake’s Toronto-area mansion for a third time on Thursday, where they arrested an alleged trespasser; a similar trespassing incident occurred Wednesday, while one of Drake’s security guards was shot on Tuesday.
• 🏀 The NBA Draft Lottery was held yesterday; the top-five order for the June 27 draft is: 1) Atlanta; 2) Washington; 3) Houston; 4) San Antonio; 5) Detroit.

SCIENCE, SPACE & EMERGING TECH

in partnership with NoNetz

• 👂🧬 A British toddler born with a rare form of deafness can now hear after receiving a pioneering gene therapy treatment from pharma giant Regeneron; it follows news of a similar Eli Lilly treatment that allowed an 11-year-old to hear for the first time in January.
• 🙏 The first person to receive a genetically modified pig kidney transplant passed away nearly two months after his surgery.
• 🫒 Adding a spoonful of olive oil to your daily diet could lower the risk of dementia-related death by 28%, per a new peer-reviewed study.

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MISCELLANEOUS

• 🌁🔥 Minnesota issued its first air quality alert of 2024, as smoke from ~140 active wildfires in neighboring Canada drifted south across the border.
• ⚖️ The bribery and corruption trial of Sen. Bob Menendez (D-NJ) – who’s accused of receiving lavish gifts including gold bars, envelopes of cash, and a Mercedes in exchange for favors – begins this morning.
• 💳 A federal judge blocked the White House’s plan to cap credit card late fees for large companies at $8 (instead of the current ~$32 average), citing a 2022 appeals court ruling that found funding for the Consumer Financial Protection Bureau is unconstitutional.

CLICKBAIT

• 🤖🐶 The US military is testing robot dogs with AI-trained rifles.

Monday: Former Trump lawyer Michael Cohen to testify in New York hush-money trial; OpenAI expected to reveal a major product update that "feels like magic," according to CEO Sam Altman

Tuesday: Primary elections in Maryland, Nebraska, and West Virginia; North Carolina holds run-off elections; Westminster Kennel Club Dog Show ends

Wednesday: Bring Flowers to Someone Day

Thursday: NATO’s Military Committee meets to discuss its 20-year plan

Friday: The first crewed mission of Boeing’s Starliner spacecraft gets another launch attempt

On Friday, we covered how a growing number of people who have suffered the loss of a loved one are turning to AI to preserve, animate, and interact with their deceased friend or family member.

❓ Our question to you: Would you personally be open to the idea of having an AI companion and/or a “deadbot” replica of a loved one?

• 👍 Yes: 11%
• 👎 No: 75%
• 🤷 Unsure/other: 14%

Click here to read more of the best longform responses.

+Note on sample size: We received 4,074 votes and 379 longform responses.

A team of 18 bakers in France recently claimed the world record for the longest baguette ever made. 

The bakers completed the impressive bake during the Suresnes Baguette Show near Paris earlier this month, with the record-claiming baguette measuring in at 461 feet long.

• After the bread was baked, part of the baguette was cut up, spread with Nutella, and shared with the public, while another part was given to a local youth association for distribution among people experiencing homelessness.

Guess the definitions of the following Greek/Latin root words:

1. Capr
2. Dys
3. Etym
4. Glaci

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1. Capr = Goat (e.g., Capricorn)
2. Dys = Ill (dysplasia; dysentery)
3. Etym = True (etymology)
4. Glaci = Ice (glacier)