This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2020/03/19/business/coronavirus-wall-street.html
The article has changed 17 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Amid Virus and Market Tumult, Wall Street Lives a New Reality | Amid Virus and Market Tumult, Wall Street Lives a New Reality |
| (2 months later) | |
| Investors, corporations and trading clients are turning to Wall Street amid one of the most tumultuous periods in market history to borrow money, buy or sell assets, and limit losses on existing holdings. But Wall Street itself is grappling with a challenge it had never faced: how to protect employees from a worsening public-health threat while managing clients who need their services around the clock. | Investors, corporations and trading clients are turning to Wall Street amid one of the most tumultuous periods in market history to borrow money, buy or sell assets, and limit losses on existing holdings. But Wall Street itself is grappling with a challenge it had never faced: how to protect employees from a worsening public-health threat while managing clients who need their services around the clock. |
| As the week started, numerous financial services firms — from the investment bank Goldman Sachs to the private equity firm Blackstone to the hedge fund Point72 — were adopting emergency work policies as employees tested positive for coronavirus. As far away as Cape Town, the commodities analyst Jeffrey Christian, who had traveled there from New York on business, was in an emergency room with chills and a fever. | As the week started, numerous financial services firms — from the investment bank Goldman Sachs to the private equity firm Blackstone to the hedge fund Point72 — were adopting emergency work policies as employees tested positive for coronavirus. As far away as Cape Town, the commodities analyst Jeffrey Christian, who had traveled there from New York on business, was in an emergency room with chills and a fever. |
| “Waiting to be tested for C19,” wrote Mr. Christian, the managing partner of the research firm CPM Group, in an email. “Woke up with nasty fever and chills today.” | “Waiting to be tested for C19,” wrote Mr. Christian, the managing partner of the research firm CPM Group, in an email. “Woke up with nasty fever and chills today.” |
| On Wall Street, where the stock market’s daily plunges have been the most severe in 33 years and Treasury bond yields have hit new price floors, the metamorphosis from calm to apprehension is now well underway. Starting Monday, the New York Stock Exchange will transition entirely to electronic trading to protect the health of its floor workers. | On Wall Street, where the stock market’s daily plunges have been the most severe in 33 years and Treasury bond yields have hit new price floors, the metamorphosis from calm to apprehension is now well underway. Starting Monday, the New York Stock Exchange will transition entirely to electronic trading to protect the health of its floor workers. |
| Tony Pasquariello, a partner at Goldman’s markets division, called the trading mayhem “a bolt from the blue, which is very disruptive for asset markets, and potentially the real economy.” Mr. Pasquariello, who lives a short walk from his firm’s Lower Manhattan headquarters, has been in the office. “You do feel like you’re witnessing history,” he said. | Tony Pasquariello, a partner at Goldman’s markets division, called the trading mayhem “a bolt from the blue, which is very disruptive for asset markets, and potentially the real economy.” Mr. Pasquariello, who lives a short walk from his firm’s Lower Manhattan headquarters, has been in the office. “You do feel like you’re witnessing history,” he said. |
| The globalization of markets has meant that trading is now a 24/7 endeavor, requiring that salespeople be available at all hours to handle clients and that traders, engineers and back-office workers be available to execute and complete their orders. | The globalization of markets has meant that trading is now a 24/7 endeavor, requiring that salespeople be available at all hours to handle clients and that traders, engineers and back-office workers be available to execute and complete their orders. |
| The 650 people who had been on Mr. Pasquariello’s fourth-floor trading hub last week were reduced to about 150 by Wednesday as the bank, along with many of its peers, urged additional work-from-home routines to limit the possibility of infection. Goldman had already divided thousands of employees in New York and other cities into two teams — blue and white, for the company’s signature colors — and mandated that only one team be in the office during a given week; it also put the kibosh on handshakes and meetings of more than 20 people. | The 650 people who had been on Mr. Pasquariello’s fourth-floor trading hub last week were reduced to about 150 by Wednesday as the bank, along with many of its peers, urged additional work-from-home routines to limit the possibility of infection. Goldman had already divided thousands of employees in New York and other cities into two teams — blue and white, for the company’s signature colors — and mandated that only one team be in the office during a given week; it also put the kibosh on handshakes and meetings of more than 20 people. |
| In a nod to all of that, David Solomon, the firm’s chief executive, and Stephen Scherr, its chief financial officer, led a partner phone call on Wednesday from separate rooms in their headquarters building. John Waldron, the president, participated from a site in Jersey City, N.J. | In a nod to all of that, David Solomon, the firm’s chief executive, and Stephen Scherr, its chief financial officer, led a partner phone call on Wednesday from separate rooms in their headquarters building. John Waldron, the president, participated from a site in Jersey City, N.J. |
| Other banks had variations of the policy. Bank of America has asked essential personnel responsible for managing financial risk to go to the office, but has moved some of them from Midtown Manhattan to a backup site in Stamford, Conn. JPMorgan Chase modified its two-team, work-staggering policy to allow all but the most essential workers to do business remotely. | Other banks had variations of the policy. Bank of America has asked essential personnel responsible for managing financial risk to go to the office, but has moved some of them from Midtown Manhattan to a backup site in Stamford, Conn. JPMorgan Chase modified its two-team, work-staggering policy to allow all but the most essential workers to do business remotely. |
| Blackstone’s chief executive, Stephen Schwarzman, and president, Jonathan Gray, have encouraged their employees to work from home. By Monday, both men, responding to the virus’s rapid spread, were working from home themselves. | Blackstone’s chief executive, Stephen Schwarzman, and president, Jonathan Gray, have encouraged their employees to work from home. By Monday, both men, responding to the virus’s rapid spread, were working from home themselves. |
| Peter DeCaprio, president of the four-person Boston-area investment firm Crow Point Partners, continued working from the office until Tuesday, even though some of his colleagues had chosen to work from home. He noted that remote work in itself was not an issue — many firms incorporate working from home into their disaster-preparedness plans, “but this is a psychology problem now.” | Peter DeCaprio, president of the four-person Boston-area investment firm Crow Point Partners, continued working from the office until Tuesday, even though some of his colleagues had chosen to work from home. He noted that remote work in itself was not an issue — many firms incorporate working from home into their disaster-preparedness plans, “but this is a psychology problem now.” |
| Even after 9/11, when Manhattan was roiled by debris, electricity outages, transportation gaps and fears of additional terrorist acts, workers on the New York Stock Exchange and the brokerage firms that fed its order books returned as soon as they could, some even before markets opened a week later. | Even after 9/11, when Manhattan was roiled by debris, electricity outages, transportation gaps and fears of additional terrorist acts, workers on the New York Stock Exchange and the brokerage firms that fed its order books returned as soon as they could, some even before markets opened a week later. |
| Finance-industry veterans describe the current experience as a cross between that period and the raging volatility of the 2008 financial crisis. | Finance-industry veterans describe the current experience as a cross between that period and the raging volatility of the 2008 financial crisis. |
| “Horrible” is how the macro hedge-fund manager Stephen Jen described it late last week, as he worked at home in London and watched markets for gold, bond yields and stocks whipsaw on his Bloomberg screen. | “Horrible” is how the macro hedge-fund manager Stephen Jen described it late last week, as he worked at home in London and watched markets for gold, bond yields and stocks whipsaw on his Bloomberg screen. |
| “The moves were absolutely incredible in size, in magnitude, in speed, and the triggers were not very clear,” he said. | “The moves were absolutely incredible in size, in magnitude, in speed, and the triggers were not very clear,” he said. |
| Updated May 28, 2020 | |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | |
| More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said. | |
| There is an uptick in people reporting symptoms of chilblains, which are painful red or purple lesions that typically appear in the winter on fingers or toes. The lesions are emerging as yet another symptom of infection with the new coronavirus. Chilblains are caused by inflammation in small blood vessels in reaction to cold or damp conditions, but they are usually common in the coldest winter months. Federal health officials do not include toe lesions in the list of coronavirus symptoms, but some dermatologists are pushing for a change, saying so-called Covid toe should be sufficient grounds for testing. | |
| Yes, but make sure you keep six feet of distance between you and people who don’t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea. | |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | |
| Charity Navigator, which evaluates charities using a numbers-based system, has a running list of nonprofits working in communities affected by the outbreak. You can give blood through the American Red Cross, and World Central Kitchen has stepped in to distribute meals in major cities. | |
| On March 9, at the regular Monday meeting for Blackstone’s global team, Christopher Heady, who runs the firm’s real estate business in Asia and worked in Hong Kong when the coronavirus swept through China, tried to reassure colleagues that things would remain calm. By that evening, 14th-floor workers at the West Side Manhattan offices of Point72, which is led by Steven Cohen, were instructed to work from home, as their space was deep-cleaned after a back-office employee’s confirmed infection. | On March 9, at the regular Monday meeting for Blackstone’s global team, Christopher Heady, who runs the firm’s real estate business in Asia and worked in Hong Kong when the coronavirus swept through China, tried to reassure colleagues that things would remain calm. By that evening, 14th-floor workers at the West Side Manhattan offices of Point72, which is led by Steven Cohen, were instructed to work from home, as their space was deep-cleaned after a back-office employee’s confirmed infection. |
| For those who have remained in the office, the dwindling numbers are palpable. Company cafeterias have at times been empty, as on a summer Friday, and restaurants closed by local authorities to prevent the virus’s spread have thinned the options for food takeout or delivery. | For those who have remained in the office, the dwindling numbers are palpable. Company cafeterias have at times been empty, as on a summer Friday, and restaurants closed by local authorities to prevent the virus’s spread have thinned the options for food takeout or delivery. |
| Will Hunter, a portfolio manager at the Manhattan-based Neuberger Berman, said last week that while empty subways were “eerie” to ride, there was a “sense of solidarity” at his office. | Will Hunter, a portfolio manager at the Manhattan-based Neuberger Berman, said last week that while empty subways were “eerie” to ride, there was a “sense of solidarity” at his office. |
| Owners of small businesses around downtown Manhattan, who depend on financial-firm employees, said they feared the coming weeks. | Owners of small businesses around downtown Manhattan, who depend on financial-firm employees, said they feared the coming weeks. |
| “Business this week is very slow,” Mohd Islam, who has run a corner newsstand near the Goldman building for two years, said last week. “Very slow. I don’t know, God knows, if next week,” he added, will be “down, down, down, down.” | “Business this week is very slow,” Mohd Islam, who has run a corner newsstand near the Goldman building for two years, said last week. “Very slow. I don’t know, God knows, if next week,” he added, will be “down, down, down, down.” |
| Seth Klarman, a founder of the Boston hedge fund Baupost Group, told his team in an email last week that the firm’s mandatory work-from-home policy “will take some getting used to.” Mr. Klarman said in an interview Saturday that the pandemic and its concomitant policies wouldn’t last forever. But in the meantime, he and his 275 employees — mostly in Boston, but also in London — were adjusting to a new and more isolated way of doing business. | Seth Klarman, a founder of the Boston hedge fund Baupost Group, told his team in an email last week that the firm’s mandatory work-from-home policy “will take some getting used to.” Mr. Klarman said in an interview Saturday that the pandemic and its concomitant policies wouldn’t last forever. But in the meantime, he and his 275 employees — mostly in Boston, but also in London — were adjusting to a new and more isolated way of doing business. |
| “I wake up, I go to work — that’s what I’ve done for 38 years,” he said. “But now I wake up, I work out, I go to my chair and am on constant conference calls all day long.” | “I wake up, I go to work — that’s what I’ve done for 38 years,” he said. “But now I wake up, I work out, I go to my chair and am on constant conference calls all day long.” |
| Matt Phillips contributed reporting. | Matt Phillips contributed reporting. |