Breaking bad habits

MARKETS

• U.S. markets: Stocks ended the week on a high note thanks to a strong jobs report (more on that later). Apple closed at an all-time high ahead of its developers conference.
• International markets: Concerns of U.S. tariffs didn't seem to be hurting European stocks. Indexes also got a boost after Italy's president approved the formation of a controversial populist government.

TECH

Digital Health at the WWDC

Today through Friday, a band of app-crazy developers will pile into the McEnery Convention Center in San Jose, California. And when murmurs of new APIs and ARKits settle down, Tim Cook will take the stage for one of Apple's biggest yearly events—the Worldwide Developers Conference (WWDC).

What's in store? A new iPad? iOS 12? Better developer tools?

It looks like all of the above (and more). But we're here to talk about one new, very likely development that should take center stage:

• Apple "Digital Health"—a new software toolkit to help users decrease iPhone addiction.

Hold up. It wants consumers to use its products...less? Precisely.

Your Bubbie hasn't been the only one shaking her fist and saying, "These dang phones!" Back in January, two major Apple shareholders penned a letter to the company warning of the mental health issues that arise from iPhone addiction.

• Per the letter: "U.S. teenagers who spend 5 hours or more [on electronic devices] are 71% more likely to have a risk factor for suicide than those who spend less than 1 hour."

Bottom line: Apple needed a strong response

That's especially true after Google released a new set of tools to limit technology addiction at its developers conference last month.

So what'll this new tool look like?

• It'll possibly be a dashboard in the settings of the new iOS 12.
• Similar to Google's "wind down" function, Apple will utilize usage data to tell users when it's time for a little break from iPhone paradise.

Nir Eyal, author of Hooked: How to Build Habit-Forming Products, shared his thoughts with us:

• "Though it may seem against their interests, Apple and Google know helping people use their phones less is in their long-term business interests."
• "With very few exceptions, when a product harms people, you know what they do? They use it less or look for better alternatives."
• "Therefore, tech companies have an incentive to fix harmful aspects of their products just like car makers have an incentive to make cars safer to protect drivers."

TECH

Speaking of Tech Companies Making Public Statements

Google will not renew a contract with the Defense Department—one that permitted the use of Google's top-grade AI to enhance military surveillance.

It's called Project Maven. And it's been the focal point of a lot of heated internal debate around the highly purified Google water coolers this year. Why?

Because this surveillance software gathers information that can be used for calculated drone strikes. You know, drone strikes that occasionally harm innocent civilians. And that doesn't sit well with every Googler.

• Over 4,000 employees signed a petition against building "warfare technology."
• Some employees even quit in protest.

Now? The contract, set to renew in 2019, will be discontinued instead. And Google's future relationship with the Pentagon? Up in the air.

ECONOMY

May Jobs Report: By the Numbers

Is it getting steamy in here...or is that just the U.S. economy? It's lookin' gooood.

223,000: The number of (non-farm) jobs added.

3.8%: The unemployment rate, the lowest since April 2000. And before that? You'd have to go all the way back to 1969. Also, African American unemployment (5.9%) is the lowest on record.

92: How many consecutive months the U.S. has seen job growth, also a record.

2.7%: YoY wage growth. A solid number that strikes a balance—not too high to provoke the Fed to raise rates more quickly...but not low enough where you're concerned about flat wages.

Bottom line: You can find trouble spots if you nitpick. Overall, this economy is on a roll.

CALENDAR

The Week Ahead: June 4

Monday (June 4): Apple's Worldwide Developers Conference begins

Tuesday (June 5): Midterm primaries in eight states, including California; Tesla's annual shareholders meeting

Wednesday (June 6): 74th anniversary of D-Day

Thursday (June 7): Earnings (Broadcom, DocuSign)

Friday (June 8): Baker-Hughes Rig Count (a weekly count of the number of oil & gas rigs); load up the van...the beach is calling

SOCIAL MEDIA

Zuck-ception

Facebook is removing its trending tab this week. Will anybody miss it? Probably not. It was only available in five countries, and accounted for less than 1.5% of clicks to news publishers, on average.

WHAT ELSE IS BREWING

• Microsoft is reportedly acquiring GitHub, the site where coders go to heaven (per Bloomberg).
• Spotify is nixing its recently introduced "hateful conduct" policy, which it said was too vague.
• HelloFresh will sell meal kits at select grocery stores starting Wednesday. Dig in.
• Visa's network in Europe broke down over the weekend. Whatever the problem was, it seems to be fixed.

BREAKROOM

WE'VE GOT FREE BREW TANKS
Do you live in NYC and love to hit the gym? Then come by our office in FiDi and grab one of our classic Brew tanks. The goal? Make sure gyms across the tri-state area are drowning in Brew swag. Just hit reply and let us know when you'd like to stop by, meet the team, and grab your tank. Looking forward to meeting you!

WHAT WE'RE READING
Mary Meeker's Internet Trends 2018—Yeah, there's a reason it's called the "most anticipated slide deck of the year." Charting all the trends from e-commerce to the rise of China to a surging voice assistant market, this is probably the only PowerPoint presentation we'll ever recommend. See what everyone in the Valley is talking about.

TRIVIA
According to the Bureau of Labor Statistics, how many hours is the average U.S. work week?

(Answer located at bottom of newsletter)

Breakroom Answers