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Good morning.
The global pandemic turns one year old today, and while many bad things happened during that year, some good things happened as well. Here’s one: A PwC survey of 5,000 CEOs around the world, out fresh this morning, finds they are more optimistic about the economy than they’ve been since the company started asking the question nine years ago. 76% of them predict economic growth will improve in 2021, compared to 22% last year (pre-pandemic) and 42% in 2019. Optimism is particularly strong in the U.S., where 86% foresee growth. Moreover, the U.S. was selected as the top market for growth by 35% of the CEOs, widening its lead over China, chosen by 28%. Last year, the U.S. was only one percentage point ahead of China.
I spoke yesterday with Bob Moritz, chairman of the PwC network, who said the results show companies “believe they have built the resiliency and muscle to drive economic momentum.” And the accelerated digital transformation many experienced during the pandemic has given them new confidence in the future. “People are saying, ‘I did it and I survived. Now how do I get real sustained outcomes from my transformation?’”
Some other takeaways:
—Nearly half of the CEOs are planning to increase their digital investment “significantly” (more than 10%) over the next three years because of COVID 19—doubling down on gains made during the pandemic.
—Concern about cyber threat is on the rise, cited by 47% of CEOs, up from 35% last year. That made it the number two concern of global CEOs (after the pandemic), and the number one concern of CEOs in North America and Europe. Last year, overregulation and trade conflicts took the top two spots on the concerns list.
—Concern about climate change is rising, with 43% of CEOs saying their company needs to do more to report on it. But 60% admit they have not yet factored climate into their strategic risk management.
You can download the full survey here.
Also, some new research out this morning from Future Forum by Slack shows Black knowledge workers are less eager to return to the office than white. A survey of those working from home found 97% of Black workers want a hybrid or full-time remote working model, compared to 79% of white workers. Only 3% of Black workers want to return to work full time, compared to 21% of white workers. Understanding why that difference exists—and developing strategies to address it—will be critical to ensuring the future of office work is more inclusive than the past. You can find more on the research here.
News below.
Alan Murray
@alansmurray
alan.murray@fortune.com
TOP NEWS
ARP passage
As the $1.9 trillion American Rescue Plan heads to President Joe Biden's desk, most U.S. taxpayers can look forward to a $1,400 stimulus check. Anne Sraders and Lance Lambert explain how that will work here, while Shawn Tully explains the implications for American debt here.
AstraZeneca stumble
AstraZeneca's share price headed south after Denmark's health authority suspended the use of its COVID-19 vaccine. The regulator said it was concerned about reports of blood clots forming in some vaccinated people: one report relates to a death in Denmark, while the others are likely to be about a death and an illness in Austria. Regarding the Austrian cases, the European Medicines Agency said yesterday that "there is currently no indication that vaccination has caused these conditions, which are not listed as side effects with this vaccine." Fortune
Against greenwashing
As of yesterday, fund managers marketing ESG financial products in the EU have to show exactly how they meet these environment, social and governance standards. The new rule, called the Sustainable Finance Disclosure Regulation, will be enforced by national finance regulators. Fortune
Facebook antitrust
Facebook is trying to have several U.S. federal and state antitrust lawsuits against it thrown out. Yesterday, it told a federal judge that the FTC and state attorneys general have no valid basis for claiming it suppresses competition. Wall Street Journal
AROUND THE WATER COOLER
Roblox plan
Roblox, a video-game platform that's popular with pre-teens, had a direct listing on the NYSE yesterday, and its stock immediately shot up by nearly 55%. Fortune's Aaron Pressman examines the eight-year-old company's history, and its plans for the future. Fortune
Amsterdam win
Amsterdam has emerged as the surprise early winner from Brexit's harsh impact on the British financial sector, displacing the City of London as Europe's main center for share trading. But, in the long term, Paris or Frankfurt may prove bigger winners. Financial Times
Mexican weed
Mexico is a step closer to becoming one of the world's biggest cannabis markets, after its lower house of Congress approved a bill that would decriminalize the herb for recreational, medical and scientific purposes. The bill is backed by President López Obrador, whose Morena party has a majority in both chambers of Congress. Reuters
Tesla in China
Tesla's Model Y, a mid-size SUV, has had a decent first few months in China. In February, it was the third best-selling electric car in the country, behind Tesla's Model 3 and the biggest seller, the low-cost Hongguang Mini, which is the product of a GM joint venture with Wuling Motors and SAIC Motor. CNBC
This edition of CEO Daily was edited by David Meyer.
