Sun Sentinel Palm Beach Edition
Many CEOs ‘less optimistic’ of full rebound in pandemic
With coronavirus cases around the country on the rise and states rolling back reopening plans, many of the nation’s top business leaders are steeling themselves for a period of prolonged economic disruption and the prospect of a slow, halting recovery.
“I’m less optimistic today than I was 30 days ago,” said Arne Sorenson, chief executive of Marriott International. “The virus is in so many different markets of the United States.”
Sorenson’s outlook, like those of many chief executives, has worsened in recent weeks as virus cases have spiked in the South and the West, leading some states to close businesses that had previously been allowed to open.
He said that after bookings at Marriott’s hotels rose in early July, they had recently fallen again.
“The last week was weaker than the week before,” Sorenson said.
While retail sales have mostly rebounded to prepandemic levels and the stock markets remain buoyant, business leaders and economists still see serious cause for concern. Tens of millions of Americans are out of work. Important parts of the economy — including live sports, movie theaters and many tourist attractions — remain largely shuttered. Business districts are still primarily empty as people continue working from home. And as the virus spreads, new lockdowns could cause further economic disruptions.
There are signs the recovery is losing momentum.
Air travel had been on the rise, with the Transportation Security Administration reporting a steady increase in passengers at U.S. airports. But Ed Bastian, chief executive of Delta Air Lines, suggested that momentum had sputtered in recent days.
“I have a more cautious view than I did four weeks ago,” Bastian said. “While the TSA numbers have continued to slowly tick up, the reality is that the cash that people are willing to commit to future travel decisions has stalled.”
Many chief executives said they were broadly in favor of reopening the economy, arguing it was vital for people to be at work.
“We will need to open up, but it has to be done safely and properly,” said Jamie Dimon, chief executive of JPMorgan Chase. “And if we make mistakes along the way or if situations change, we should adapt and recalibrate.”
In the last week, companies and states have continued to adjust. Last week, California shut down indoor dining, bars and movie theaters it had previously allowed to open back up. And Louisiana ordered its bars closed.
More than anything, though, many of the chief executives called on the public to do its part in curbing the spread of the virus by wearing masks and following the recommendations of health experts.
“The reality is the politicization of masks and the virus has caused a lot of frustrations,” Bastian said, adding that Delta has put a number of passengers on no-fly lists because they were making political statements by refusing to wear masks.
“As individuals, we have that responsibility,” CVS’ CEO Larry Merlo said last week. “My mask protects you, and your mask protects me.”
Yet with the virus spreading widely and rapidly around the country, there is little hope that masks alone will allow for a return to business as usual anytime soon.
“Most CEOs today believe that until there is a more effective treatment or a vaccine, that work and life are not going to go back to normal,” said Julie Sweet, chief executive of Accenture.