Premarket Stocks: New studies show that the home working revolution may be overdone

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A number of companies believe that the past 12 months have proven the benefits of remote working and have committed to having more flexible schedules. But there are growing signs that the home working revolution could have its limits.

What’s Happening: According to a KPMG survey of 500 CEOs released Tuesday, most major global companies no longer plan to reduce their physical footprint after the pandemic. Only 17% of CEOs expect to make reductions, compared to 69% in August. Only 30% said most employees would work remotely two to three days a week.

“This suggests that downsizing has already taken place, or plans have changed, as the impact of long-term, unplanned remote working has taken its toll on some employees,” KPMG said in its report.

A survey of 1,450 business leaders in North America, published by Accenture ACN also showed last month that the shift to working from home may not be as dramatic as initially expected.

Executives estimate that 18% of workers had permanent flexibility before the pandemic hit. They predicted that after the pandemic this would increase to an average of just 25%.

“I expected that number to be higher,” Jimmy Etheredge, Accenture’s CEO for North America, told me this week.

Etheredge thinks the numbers will increase as the discussions continue. At his company, which plans to maintain flexible arrangements at least throughout the summer, remote working will likely be managed on a project-by-project basis.

While some clients in industries such as retail show up every day – and may expect their consultants to do the same – others have indicated that they feel comfortable managing virtual professional relationships.

“Really, it comes from customer to customer,” Etheredge said.

Some companies are continuing plans to cut back on expensive real estate, including three of Britain’s largest banks. But the surveys are an indication that not everyone is willing to gamble on more permanent remote working options.

Watch this space: The pandemic has also sparked renewed conversations about mental health, forcing employers to respond better to concerns about burnout and overwork, Etheredge noted.

That turned out this week, when Goldman Sachs GS CEO David Solomon pledged to keep Saturdays free for investment bankers and to accelerate the hiring of junior employees after a group of analysts described “inhumane” working conditions, including 95-hour weeks and cases of workplace abuse.

“This is something our leadership team and I take very seriously,” Solomon said in a voice message sent to staff on Sunday.

The White House is helping Biden prepare a $ 3 trillion job package

According to two people familiar with the plan, White House advisers are expected to present a $ 3 trillion two-part jobs and infrastructure proposal to President Joe Biden this week.

The latter: The proposal, which Biden’s top advisers have been thinking about for weeks, would be broken down into two distinct parts – one focusing on infrastructure and clean energy, and a second on what’s called the ‘care economy’, with a focus on major domestic economic issues, my CNN colleague Phil Mattingly reports.

The pitch would be a significant step toward the implementation of key elements of the jobs agenda that Biden set during his campaign, with a range of potential tax increases for businesses and the wealthy as options to cover some of the costs .

White House officials stressed that no final decisions have been made. Biden has yet to review proposals and plans to consult intensively with Democratic Senate Leader Chuck Schumer and House Speaker Nancy Pelosi on the scale and legislative order of the next major pillar of his agenda.

But as details of Biden’s next big legislative priority take shape, investors and companies are watching closely.

On the Radar: Executives from major oil companies, including Chevron, Exxon, BP, Shell and ConocoPhillips, met with Biden’s national climate advisor Gina McCarthy almost Monday, an industry source told my CNN Business colleague Matt Egan.

After the meeting, the American Petroleum Institute pledged to work with the Biden government on the climate crisis.

“We are committed to working with the White House to develop effective government policies that help deliver the Paris Agreement ambitions and support a cleaner future,” said API CEO Mike Sommers, who attended the meeting. in a statement.

Cinemas think they can start making money again

Cineworld will begin a phased reopening of its Regal theaters in the United States next month.

The company, which is the world’s second-largest cinema operator, said on Tuesday that it will open some theaters on April 2 with screenings of “Godzilla vs. Kong,” my CNN Business colleague Hanna Ziady reports. More cinemas open April 16 with “Mortal Kombat.”

“With capacity constraints increasing to 50% or more in most US states, we will be able to operate profitably in our largest markets,” said CEO Mooky Greidinger.

Last week, AMC, the world’s largest movie theater chain, said 99% of US theaters will be open by the end of this month.

The pandemic delayed the release of more than a dozen major films. Some, like Disney’s “Mulan,” skipped theaters altogether. That hammered companies like Cineworld and AMC AMC, which did not have major films to attract even a limited audience.
“The pandemic has accelerated what was already a narrowing between when movies were shown in theaters and when they could be viewed at home,” CNN media analyst Bill Carter wrote in a recent column.

Investor Insight: Cineworld shares fell Tuesday, but have posted gains of more than 60% this year amid excitement over reopening. Shares of AMC Entertainment, swept along in the recent waves of retail enthusiasm, are up nearly 490%.

Next one

Adobe ADBE and GameStop GME report gains after closing US markets.

Also today: New home sales in the US for February, post at 10 a.m.ET.

Available tomorrow: Latest data on US crude oil stocks will come in as oil prices fall again.

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