CEO confidence skyrockets on expectations of layoffs and wage cuts
21 October 2020
The Conference Board; Chart: Axios Visuals
U.S. consumers remain uncertain about the economic environment but CEOs are feeling incredibly confident, the latest survey from the Conference Board shows.
Why it matters: Confidence among chief executives jumped 19 points from its last reading in July, rising above the 50-point threshold that reflects more positive than negative responses for the first time since 2018.
The big picture: Judging by their stated expectations, CEO confidence is not a good sign for workers. Over the next 12 months, CEOs said they expect to cut jobs, hold down employee pay and reduce capital spending.
- 37% of CEOs expected to reduce their capital budgets in the year ahead, while 38% expected no change and 25% anticipated increasing spending.
- 34% expected a net reduction in their workforce, another 34% expected no change and just 9% expected an expansion of the workforce above 3%.
- 21% foresaw no increase in their employees’ wages and 5% said they may reduce wages.
- 62% of CEOs expected little to no problems finding qualified workers, while 11% expected widespread talent shortages or hiring problems.
Worth noting: Consumers globally grew slightly less confident this week, continuing a trend evidenced over the past six weeks across the income spectrum, per data provider Morning Consult’s Index of Consumer Expectations.
- The poll surveys 11,000 adults per day in 15 countries.
Data: Morning Consult; Chart: Axios Visuals
Transcripts show George Floyd told police "I can't breathe" over 20 times
Section2Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.
Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.
The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.
- The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.
What the transcripts say:
- Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
- The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
- Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."
Read the transcripts via DocumentCloud.