DEMOGRAPHICS

China Calls in the Storks

On Monday, China's government said that couples will be able to have a third child, a decision meant to spark more babies in a country where population growth has hit a wall. 

The backstory: Family planning restrictions have existed in China since 1980, when the government instituted a one-child-per-household policy out of fear it wouldn't have the resources to provide for a swelling population. China relaxed that cap to two children in 2015 but, following the pandemic’s baby bust, it's realizing it needs to confront this problem more urgently. 

• There were 12 million births in China in 2020, down 18% annually and the fourth straight year of declines. 
• Demographers expect the country's population, currently at 1.4 billion, to peak by 2025. 

Why it matters: Declining population growth has profound implications for a country's economic success. Fewer babies = fewer future workers. And it could upend existing systems of support for the elderly, because younger workers’ taxes subsidize public services for retirees.

This isn't just a China problem

A "demographic time bomb" alarm is being sounded in dozens of countries.  

• South Korea's rate of births per woman fell to 0.84 last year, the lowest in the world. For reference, the "replacement" rate that would keep a population stable is about 2.1. 
• The US population grew at its slowest rate since the Great Depression from 2010–2020, and its birth rate declined for the sixth straight year last year.
• Germany doesn't have enough people to fill its cities. It's taken down 330,000 housing units since 2002.  

Zoom out: While many parts of the world face stagnant population growth, others are making up for it. Africa’s population is set to double by 2050, helping the world grow from 7.8 billion people today to 11 billion by 2100.

Bottom line: As much as the Chinese government wants to grow the country's share of the world population, it might be fighting a losing battle. The two-child policy didn't lead to more babies, and critics say the three-child rule won't move the needle, either. 

SPORTS

Osaka Steps Back

This weekend, there’s been more back-and-forth than tennis fans are used to. Naomi Osaka, star tennis player and the highest earning female athlete in the world, dropped out of the French Open yesterday. 

The backstory: Osaka announced last week that she wouldn’t be doing any press during the tournament, saying that press conferences were bad for her and other players' mental health.

• On Sunday, the head honchos of tennis fined her $15k for skipping a post-match news conference, and raised the possibility of suspending her from future Grand Slam tournaments for violating her “contractual media obligations.”

Other athletes said they respected Osaka’s initial decision to avoid the press, but pointed out that answering questions in front of a hot mic is just part of the job. Tennis legend Billie Jean King said that professional athletes have a responsibility to talk to the media.

Zoom out: In her withdrawal announcement yesterday, Osaka said she needed to take some time away from the court. She acknowledged that she has been struggling with depression since winning the 2018 US Open, when she became the center of attention at 20 years old after defeating Serena Williams.

FOOD & BEV

Nestlé Decides It's Time for a Lifestyle Change

Nestlé, the world's biggest food company by sales, has decided to eat healthier, and not just because it took a chance on the expired crab dip yesterday.  

An internal presentation reported by the FT found that 63% of Nestlé products don't meet a "recognized definition of health" (in this case, at least 3.5/5 stars on Australia's health rating system).

• The report didn't count baby formula, coffee, pet food, or medical nutrition, which account for about half of sales. If it had, that figure would be closer to 28%.

Unfortunately for Nestlé's PR team...these stats are more memorable: 

• 70% of food items, 96% of beverages, and 99% of candy/ice cream products didn't crack a 3.5. 
• One pepperoni pizza Hot Pocket contains almost 30% of recommended daily sodium intake.

In response, Nestlé said it’s updating nutrition standards and its health strategy. Execs said they have made improvements in recent years, including reducing sugars and sodium in products by about 15%.

Baby Ruths aren’t going anywhere, though: "Confectionary and chocolate address a deep human need and are going to be here to stay," CEO Mark Schneider said last year.

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GRAB BAG

Key Performance Indicators

Stat: The all-electric Ford F-150 Lightning with an extended range battery can power your house for three days on a single charge, according to Ford. 

Quote: "There was just as much a run on guns as on toilet paper in the beginning of the pandemic."

Marqueece Harris-Dawson of the LA City Council described the uptick in gun purchases to the NYT in a way we can all relate to. Roughly 20% of all gun buyers in the US last year were first-time owners, and now, 39% of American households own guns, up from 32% in 2016.

Read: On the 100th anniversary of the Tulsa Race Massacre, check out our series exploring the Black Wall Street of 2021. (Morning Brew)

CALENDAR

The Week Ahead

It may be short, but it is packed. 

Infrastructure: This week will be pivotal for the big infrastructure proposal President Biden has laid out. Republican lawmakers have countered with a smaller package, and the two sides will try to hammer out a compromise this week. Transportation Secretary Pete Buttigieg said if there is no clear direction by June 7, Democrats would try to go it alone because the American people "expect us to do something."

Jobs report: Speaking of the word “pivotal,” the May jobs report comes out this Friday and will be an important indicator for the Fed's future policy direction. April's numbers whiffed, but a better reading for May could give the central bank more justification for winding down pandemic-era stimulus measures.

Earnings: Just a handful of companies will report this week, including Zoom and Lululemon.

Everything else: 

• Pride Month starts today.
• Today also marks the beginning of the Atlantic hurricane season, which is expected to be "above average" but not as bad as last year's record-breaking activity.
• Facebook's F8 developer conference begins tomorrow.

WHAT ELSE IS BREWING

• Democrats in the Texas House of Representatives staged a walkout to block the passage of a restrictive voting bill opposed by many corporations, including American Airlines and Dell.
• Legal cannabis sales in the US passed $17.5 billion in 2020, a 46% increase over 2019.
• American Airlines and Southwest are delaying offering alcoholic beverages on flights due to an increase in unruly passengers.
• Speaking of unruly people, a Boston Celtics fan was arrested after he threw a water bottle at Kyrie Irving's head, the latest in a string of incidents where fans have targeted NBA players.
• Porta potty companies are struggling to meet demand. 

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BREW'S BETS

Tech Tip Tuesday: Google Photos is ending its unlimited storage today. Here's what you can do about it.

Brew mini: If you've never tried a crossword before, try this quick puzzle. Maybe you're an expert solver and you don't even know it.

Dive back into the week:

• Shallow dive: dare you to get as happy as this train guy
• Bonus shallow dive: this vid's a tear-jerker in the best way
• Medium dive: since we're on the topic...the global population through the ages
• Deep dive: 20 ways to stand out in the hiring process

GAMES

Nutritional Facts

In Nutritional Facts, we give you the ingredients to a popular food product, and you have to guess the product.

No other choice but to do a Nestlé product today, right? Try this one out—you’ve probably eaten these before.

Whole Grain Oats, Sugar, Oat Bran, Corn Starch, Honey, Brown Sugar Syrup, Salt, Tripotassium Phosphate, Rice Bran Oil and/or Canola Oil, Natural Almond Flavor. Vitamin E (mixed tocopherols) Added to Preserve Freshness.

ANSWER

Cheerios