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| Are You Ready to Go Back to the Office? | Are You Ready to Go Back to the Office? |
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| A long stretch of remote working has understandably led companies to think again about their office space — particularly about whether they need so much. | A long stretch of remote working has understandably led companies to think again about their office space — particularly about whether they need so much. |
| Buildings were already half-empty. This provocative finding, in a new report by Heather Jordan Gerety at Heda Jordan Consulting, is based on access card data, Wi-Fi use and in-room sensors. In recent years, more flexible schedules have resulted in record “hidden vacancies,” with up to 50 percent of headquarters space and 65 percent in other offices going unused. | Buildings were already half-empty. This provocative finding, in a new report by Heather Jordan Gerety at Heda Jordan Consulting, is based on access card data, Wi-Fi use and in-room sensors. In recent years, more flexible schedules have resulted in record “hidden vacancies,” with up to 50 percent of headquarters space and 65 percent in other offices going unused. |
| • Polls suggest that people won’t rush to return, the report notes — virus-shadowed commutes will be stressful. | • Polls suggest that people won’t rush to return, the report notes — virus-shadowed commutes will be stressful. |
| • There’s also this: “Excitement to see colleagues may only last for a couple of days.” | • There’s also this: “Excitement to see colleagues may only last for a couple of days.” |
| Cutting costs could mean losing space. The cryptocurrency exchange Coinbase said yesterday it would shift permanently to “remote-first” working, similar to what Twitter announced earlier this month. | Cutting costs could mean losing space. The cryptocurrency exchange Coinbase said yesterday it would shift permanently to “remote-first” working, similar to what Twitter announced earlier this month. |
| • Big banks plan to spread employees out when they first reopen, staggering shifts and leasing satellite space in the suburbs, Bloomberg reports. And traders have mostly adapted to working from home, according to The Financial Times, reducing the need for packed trading floors. | • Big banks plan to spread employees out when they first reopen, staggering shifts and leasing satellite space in the suburbs, Bloomberg reports. And traders have mostly adapted to working from home, according to The Financial Times, reducing the need for packed trading floors. |
| • This doesn’t necessarily spell the end of crowded city centers, according to Eric Kober of the Manhattan Institute: | • This doesn’t necessarily spell the end of crowded city centers, according to Eric Kober of the Manhattan Institute: |
| If some big companies lease less space, there will be (for a time) more vacant space, and asking rents will fall to the point where it makes sense for other businesses to expand or new businesses to start up. More people, not fewer, will be working in Manhattan offices in the future, at least some of the time. | If some big companies lease less space, there will be (for a time) more vacant space, and asking rents will fall to the point where it makes sense for other businesses to expand or new businesses to start up. More people, not fewer, will be working in Manhattan offices in the future, at least some of the time. |
| Going back to the office won’t be pleasant, at least at first. “Many workers will find a mess of masking tape, plastic sheets, police tape, floor decals, and a host of half-baked design solutions” for social distancing, Anne Quito writes for Quartz. And water left stagnant in the plumbing of empty buildings could breed Legionnaires’ disease, The Times notes. Be careful out there. | Going back to the office won’t be pleasant, at least at first. “Many workers will find a mess of masking tape, plastic sheets, police tape, floor decals, and a host of half-baked design solutions” for social distancing, Anne Quito writes for Quartz. And water left stagnant in the plumbing of empty buildings could breed Legionnaires’ disease, The Times notes. Be careful out there. |
| Carmen Reinhart of Harvard is the new chief economist at the World Bank, starting next month. | Carmen Reinhart of Harvard is the new chief economist at the World Bank, starting next month. |
| She made her name studying financial crises, most notably with her colleague Ken Rogoff. Their 2009 book, “This Time Is Different,” analyzed 800 years of panics, defaults and other catastrophes. | She made her name studying financial crises, most notably with her colleague Ken Rogoff. Their 2009 book, “This Time Is Different,” analyzed 800 years of panics, defaults and other catastrophes. |
| • Their follow-up research generated controversy when the two claimed that growth cratered after debt hit 90 percent of G.D.P. Some policymakers used the finding to justify austerity measures after the 2008 financial crisis, but other researchers found errors in the calculations. | • Their follow-up research generated controversy when the two claimed that growth cratered after debt hit 90 percent of G.D.P. Some policymakers used the finding to justify austerity measures after the 2008 financial crisis, but other researchers found errors in the calculations. |
| Ms. Reinhart isn’t worried about too much debt — for now. “You worry about winning the war and then you worry about how you’re going to pay down the debt,” she said in an interview yesterday with the Harvard Gazette. She also wrote in a recent opinion piece that “this is a ‘whatever-it-takes’ moment for large-scale, outside-the-box fiscal and monetary policies.” | Ms. Reinhart isn’t worried about too much debt — for now. “You worry about winning the war and then you worry about how you’re going to pay down the debt,” she said in an interview yesterday with the Harvard Gazette. She also wrote in a recent opinion piece that “this is a ‘whatever-it-takes’ moment for large-scale, outside-the-box fiscal and monetary policies.” |
| She says the pandemic is “the nail in the coffin of globalization.” That might sound “melodramatic,” she told the Gazette, but she expects “more inward-oriented strategy” after the crisis subsides, which is bad news for many trade-dependent developing countries that rely on World Bank support. | She says the pandemic is “the nail in the coffin of globalization.” That might sound “melodramatic,” she told the Gazette, but she expects “more inward-oriented strategy” after the crisis subsides, which is bad news for many trade-dependent developing countries that rely on World Bank support. |
| • Global cooperation on debt restructuring and relief for poorer countries is crucial, she said. And China will have a special role, she added, given how much it has lent to developing countries recently. | • Global cooperation on debt restructuring and relief for poorer countries is crucial, she said. And China will have a special role, she added, given how much it has lent to developing countries recently. |
| Only a fifth of people think that overall business conditions will be “very” or even “somewhat” good over the coming year, according to a poll for The Times by SurveyMonkey. Most expect years of hardship. | Only a fifth of people think that overall business conditions will be “very” or even “somewhat” good over the coming year, according to a poll for The Times by SurveyMonkey. Most expect years of hardship. |
| Sixty percent of respondents expect “periods of widespread unemployment or depression” over the next five years, The Times’s Ben Casselman and Jim Tankersley write. That may reflect a decline in the national mood, also seen in other data. | Sixty percent of respondents expect “periods of widespread unemployment or depression” over the next five years, The Times’s Ben Casselman and Jim Tankersley write. That may reflect a decline in the national mood, also seen in other data. |
| • A survey by the Census Bureau found that nearly a third of Americans reported feeling anxious or nervous more than half the days last week. | • A survey by the Census Bureau found that nearly a third of Americans reported feeling anxious or nervous more than half the days last week. |
| Fewer people now believe in a V-shaped recovery, as we’ve noted. And as Ben and Jim point out, pessimists may be less likely to spend even if their own finances are fine, so this shift could itself prolong the economic misery. | Fewer people now believe in a V-shaped recovery, as we’ve noted. And as Ben and Jim point out, pessimists may be less likely to spend even if their own finances are fine, so this shift could itself prolong the economic misery. |
| More rescue and reopening news: | More rescue and reopening news: |
| • The “experience economy” — travel, sports, museums, concerts and more — isn’t sure how it can recover, and some $1.6 trillion in G.D.P. is on the line. | • The “experience economy” — travel, sports, museums, concerts and more — isn’t sure how it can recover, and some $1.6 trillion in G.D.P. is on the line. |
| • Ford halted production at two plants that had reopened this week after workers tested positive. | • Ford halted production at two plants that had reopened this week after workers tested positive. |
| • Lawmakers criticized Delta and JetBlue for cutting hours, weeks after receiving over $5 billion in federal aid. | • Lawmakers criticized Delta and JetBlue for cutting hours, weeks after receiving over $5 billion in federal aid. |
| Peter J. Henning is a professor at the Wayne State University law school, and previously served in the enforcement division of the S.E.C. and the fraud section of the U.S. Department of Justice. Here, he considers the prospects for charges against senators over coronavirus-related trades. | Peter J. Henning is a professor at the Wayne State University law school, and previously served in the enforcement division of the S.E.C. and the fraud section of the U.S. Department of Justice. Here, he considers the prospects for charges against senators over coronavirus-related trades. |
| The Justice Department is looking into stock trades by several lawmakers after they received closed-door briefings and other information during the early stages of the outbreak. The 2012 STOCK Act prohibits lawmakers from trading on material nonpublic information received as part of their duties. | The Justice Department is looking into stock trades by several lawmakers after they received closed-door briefings and other information during the early stages of the outbreak. The 2012 STOCK Act prohibits lawmakers from trading on material nonpublic information received as part of their duties. |
| Senator Richard Burr, Republican of North Carolina, recently had his phone seized by the F.B.I., and has temporarily stepped down as chairman of the Senate Intelligence Committee. He denies wrongdoing. Other senators — Dianne Feinstein, Democrat of California; James Inhofe, Republican of Oklahoma; and Kelly Loeffler, Republican of Georgia — have also come under scrutiny. All deny wrongdoing. Unlike Mr. Burr, they also said that they did not direct the trades in question. | Senator Richard Burr, Republican of North Carolina, recently had his phone seized by the F.B.I., and has temporarily stepped down as chairman of the Senate Intelligence Committee. He denies wrongdoing. Other senators — Dianne Feinstein, Democrat of California; James Inhofe, Republican of Oklahoma; and Kelly Loeffler, Republican of Georgia — have also come under scrutiny. All deny wrongdoing. Unlike Mr. Burr, they also said that they did not direct the trades in question. |
| Will indictments follow? Insider trading is notoriously hard to prosecute, and the STOCK Act is yet to feature prominently in any case. But a verdict in a case last year, which involved a former staffer at a Medicare agency tipping off hedge funds, established that tippers could be prosecuted even if there wasn’t a quid pro quo. This is a boon for prosecutors. | Will indictments follow? Insider trading is notoriously hard to prosecute, and the STOCK Act is yet to feature prominently in any case. But a verdict in a case last year, which involved a former staffer at a Medicare agency tipping off hedge funds, established that tippers could be prosecuted even if there wasn’t a quid pro quo. This is a boon for prosecutors. |
| Could the Securities and Exchange Commission also get involved? Lawmakers are protected by the “speech or debate clause” of the Constitution, which limits liability for actions taken as part of the legislative process. Trading stocks would not necessarily qualify, so that shouldn’t hold back the S.E.C. In March, the agency said it was on heightened alert for insider trading around coronavirus information. | Could the Securities and Exchange Commission also get involved? Lawmakers are protected by the “speech or debate clause” of the Constitution, which limits liability for actions taken as part of the legislative process. Trading stocks would not necessarily qualify, so that shouldn’t hold back the S.E.C. In March, the agency said it was on heightened alert for insider trading around coronavirus information. |
| Still, I suspect that the Justice Department will take the lead here. This is a high-profile investigation, to say the least, and the S.E.C. could file a parallel civil enforcement action. | Still, I suspect that the Justice Department will take the lead here. This is a high-profile investigation, to say the least, and the S.E.C. could file a parallel civil enforcement action. |
| The U.S. dollar’s status as the world’s reserve currency could be tested by the pandemic and China’s efforts to boost the renminbi, Hank Paulson, the former Treasury secretary and Goldman Sachs C.E.O., writes in Foreign Affairs. | The U.S. dollar’s status as the world’s reserve currency could be tested by the pandemic and China’s efforts to boost the renminbi, Hank Paulson, the former Treasury secretary and Goldman Sachs C.E.O., writes in Foreign Affairs. |
| Updated June 22, 2020 | Updated June 22, 2020 |
| 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. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| 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. | 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. |
| 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. |
| 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. |
| 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. | 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. |
| Developing a digital currency is important, Mr. Paulson writes. China is well ahead in making the renminbi digital-friendly, which could speed its international adoption. American policymakers should team up with Silicon Valley to counter that, while keeping in mind concerns about privacy, he adds. | |
| • Vikram Pandit, the former Citigroup C.E.O., made a similar point in this space last week, arguing that central bank-issued digital currencies “could pave the way for an infrastructure that serves everyone.” | |
| Otherwise, Mr. Paulson writes, the U.S. risks losing ground in digital finance, among “those who prefer digital finance over conventional banking” and with billions of people “in developing countries with weaker financial markets and volatile currencies.” | Otherwise, Mr. Paulson writes, the U.S. risks losing ground in digital finance, among “those who prefer digital finance over conventional banking” and with billions of people “in developing countries with weaker financial markets and volatile currencies.” |
| Deals | Deals |
| • Apollo has invested $1.75 billion in the supermarket chain Albertsons, which is owned by a rival, Cerberus, and planning to go public. (Reuters) | • Apollo has invested $1.75 billion in the supermarket chain Albertsons, which is owned by a rival, Cerberus, and planning to go public. (Reuters) |
| • Recent private stock sales reportedly valued TikTok’s parent company at as much as $140 billion. (Bloomberg) | • Recent private stock sales reportedly valued TikTok’s parent company at as much as $140 billion. (Bloomberg) |
| • Germany’s Lufthansa is in advanced talks for a $10 billion bailout that would give the state a 20 percent stake. Leasing firms, including one owned by Bank of China, took control of Norwegian Air. (Reuters) | • Germany’s Lufthansa is in advanced talks for a $10 billion bailout that would give the state a 20 percent stake. Leasing firms, including one owned by Bank of China, took control of Norwegian Air. (Reuters) |
| Politics and policy | Politics and policy |
| • The Senate unanimously passed a bill that could force some Chinese companies to delist in the U.S. (WSJ) | • The Senate unanimously passed a bill that could force some Chinese companies to delist in the U.S. (WSJ) |
| Tech | Tech |
| • Why Facebook and private equity have bet nearly $9 billion on a mobile carrier founded by India’s richest man. (WSJ) | • Why Facebook and private equity have bet nearly $9 billion on a mobile carrier founded by India’s richest man. (WSJ) |
| • Apple tweaked the face-unlock process on iPhones to play nicely with masks. (CNET) | • Apple tweaked the face-unlock process on iPhones to play nicely with masks. (CNET) |
| Best of the rest | Best of the rest |
| • The U.S. authorities arrested two men suspected of helping Carlos Ghosn flee Japan, including a former Green Beret. (NYT) | • The U.S. authorities arrested two men suspected of helping Carlos Ghosn flee Japan, including a former Green Beret. (NYT) |
| • Pandemic baking in Britain has led to surging business for flour mills. (NYT) | • Pandemic baking in Britain has led to surging business for flour mills. (NYT) |
| Thanks for reading! We’ll see you tomorrow. | Thanks for reading! We’ll see you tomorrow. |
| We’d love your feedback. Please email thoughts and suggestions to dealbook@nytimes.com. | We’d love your feedback. Please email thoughts and suggestions to dealbook@nytimes.com. |