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| Amid Virus and Market Tumult, Wall Street Lives a New Reality | Amid Virus and Market Tumult, Wall Street Lives a New Reality |
| (7 days 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. |
| Updated July 7, 2020 | |
| The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization. | |
| 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. | 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. |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| 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. | 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. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| 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.) | 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.) |
| 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’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. |
| “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. |
| 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. |