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Good morning. David Meyer here in Berlin, filling in for Alan.
As someone who has worked from home for nearly a decade now—it’s not for everyone, but I like it—it feels like half the world has joined me over the last 10 months. And that, it seems, is not going to change anytime soon, even as populations get vaccinated.
At least, that’s a prime takeaway from the latest research Fortune has done with Deloitte, surveying CEOs about their remote-work plans.
The last survey round, back in September, showed three-quarters of CEOs thought they would need less office space in the future. And in January, despite the intervening period featuring excellent news on vaccine efficacy plus the subsequent commencement of inoculation drives in many countries, the figure had barely shifted.
A comparison of the two surveys’ results suggests a slight increase in CEOs’ forecasts for people returning to the office—the proportion of respondents predicting a need for “a little less” office space went up from 48% to 56%, while “a lot less” dropped from 28% to 20%—but the overall prediction of needing less space remained nearly constant.
As Fortune‘s Lance Lambert notes in his piece on the latest results, that’s not good for the commercial real-estate (CRE) sector, which is already seeing many tenants shutting down as lockdowns drag on—a situation that’s obviously also worrying the banks, particularly smaller ones, that may not see their CRE loans repaid.
Another worry: the physical and mental health effects of working from home. The U.K.’s Royal Society for Public Health reported yesterday that, of those who switched to home-working in the context of the pandemic, two thirds felt less connected to colleagues, nearly half were taking less exercise, and 39% were developing musculoskeletal problems. Remember to exercise, folks!
However, I think the work-from-home movement could have some real benefits, once this pandemic has passed.
One reason I love living in Berlin is its decentralized nature—while there is a geographical center to the city, the populace does not concentrate there during working hours, and as a result every neighborhood consistently retains a pulse. That’s good for neighborliness (believe me; I used to live in London so I know what the alternative looks like), and very good for small businesses. If the same forces that lead to less office space also end up having this effect, I’d count that as a win.
News below, and enjoy your weekends.
David Meyer
@superglaze
david.meyer@fortune.com
TOP NEWS
Relief package
The process of passing a $1.9 trillion coronavirus relief package has advanced, after the Senate passed a budget resolution in the early hours of this morning. The House approved its measure Wednesday, so now the budget reconciliation process—which allows the Democrats to avoid having to rely on Republican votes in the Senate—can commence. CNBC
Chips down
Ford's output is likely to be down by a fifth this quarter, due to the global shortage of computer chips. GM has already announced a pause in production of its SUVs, and Volkswagen has also taken a hit, as have Toyota and Honda. Analysts say automakers are partly to blame here, having failed to order chips in time to capitalize on recovered demand. Wall Street Journal
J&J approval
Johnson & Johnson has asked the U.S. Food and Drug Administration to grant emergency authorization to its COVID-19 vaccine, as it said it would after last week's positive trial results. If approved, this would be the third coronavirus vaccine to be rolled out in the U.S., after those from Pfizer/BioNTech and Moderna. Fortune
Anti-tracking
With Apple set to force iOS app developers to ask users for permission before tracking them across apps and websites, Google is now reportedly planning to do the same…sort of. Bearing in mind that Google is an ad business that thrives on tracking people everywhere, here's what Bloomberg reports: "Internally, the search giant is discussing how it can limit data collection and cross-app tracking on the Android operating system in a way that is less stringent than Apple’s solution." Bloomberg
AROUND THE WATER COOLER
Clover Health
Hindenburg Research—the short-activist research firm that tore chunks out of Nikola last year—has turned its attention to Alphabet-backed Clover Health. Hindenburg's latest report accused Clover Health of failing to tell investors, in the run-up to its SPAC go-public last month, that it was under investigation by the Justice Department over allegations of kickbacks and undisclosed third-party deals. Note: Hindenburg says it holds no position in Clover Health. Fortune
T-Mobile CEO
How do you follow a brash act like John Legere? For T-Mobile CEO Mike Sievert, opportunity abounds in the 5G era. "We’re going to create some real FOMO among people carrying around AT&T and Verizon phones," he tells Fortune. He also wants to continue Legere's effort to take on the cable market, which he describes as "a $100 billion industry dominated by companies customers don’t love." Fortune
Biggest battery
Australia's going to build the world's biggest battery, again. The new grid-scale solar battery, with a potential 1,200-megawatt output, will be built by CEP Energy in Hunter Valley, New South Wales. CEP Energy CEO Morris Iemma (who is also the former premier of the state): "Big batteries, including the one planned by CEP Energy for the Hunter, will play a major role in filling the gaps left by the gradual retirement of coal and gas-fired generation assets." Sydney Morning Herald
China vs U.K.
The U.K.'s media regulator, Ofcom, yesterday revoked the broadcasting license of Chinese state media outlet CGTN, on the basis that it is a Communist Party instrument. It took minutes for China's foreign ministry to lay into the BBC, accusing the U.K. broadcaster of false reporting on COVID-19 and repression in Xinjiang. Here's a rather cringe-worthy tweet from foreign ministry spokesman Zhao Lijian: "BBC shall not become Bad-mouthing Broadcasting Corporation." Reuters
This edition of CEO Daily was edited by David Meyer.
