Trump’s defenders end with quarterly reports on income

President Donald Trump On Monday on Monday, the idea that companies no longer provided a report on the income quarterly and instead passed for half an hour.

In A Truth social postTrump said the idea of ​​”to approve the SEC” and “save money, and allow executives to focus on proper management.”

“If you have heard the statement that” China has a view of the company management of 50 to 100 years, while we are quarterly managed by our companies ??? Not good !!! “,” said Trump.

During his first term, Trump asked the Securities and Exchange Commission to study the issue, but there were no recommendations.

Previously, wisdom of quarterly reports. In 2018 OP-ED PIECE For Wall Street Journal, Berkshire Hathaway’ Warren Buffett and CEO JPMorgan Chase Jamie Dimon He was in favor of getting rid of quarterly recommendations, though not income reports.

“From our experience, quarterly recommendations on income often lead to unhealthy attention to short-term profits through a long-term strategy, growth and sustainability,” the couple wrote.

The current rules require companies quarterly to report income, although providing forecasts is voluntary. The rules can be changed either from the Securities and Exchange Commission or may be changed by Congress.

Logistically, this step will not require Congress support, but rather, most votes in the SEC, where Republicans currently occupy more votes 3-1, with one open place. The process will probably take six to 12 months, said Sarah Bianci, the chief strategist of international political affairs and state policy at Evercore ISI.

“Administrations must change the degree given by the policy
Now this is what needs to be taken seriously as an opportunity, ”the former deputy trade representative of the US said in the note.

SEC Chairman Paul Atkins did not say on this issue.

“If the SEC efforts to revise quarterly reporting will receive Steam, it can also push the conversations when and how companies give recommendations and communicate with investors that could have important consequences for state markets,” Bianchy added.

Proponents of the current system say it gives investors a timely opportunity, as well as transparency in government companies.

“If you weigh it and put it on the board, the pros of quarterly reporting exceeds the disadvantages,” said Art Hogan, the main market of the B. Riley Wealth Management. “We have to wait for the official results of six months, I just think that it will lead to more difficulties.”

While executives are criticized for the report on deceptive income, the use of generally accepted accounting principles – GAAP – helped to provide fences that ensure standardization. For this reason, the US reporting is considered one of the most transparent and reliable in the world.

Despite Trump’s comments about China, companies have reports similar to the US, if not tougher. Chinese companies must submit quarterly income reports as well as half -headed and annual reports.

Companies listed on Hong Kong report only every six months.

Trump’s proposal will be more in accordance with practitioners in the UK and the European Union, where companies should submit a submission, but can issue quarterly reports if they want.

But Hogan said the comparison between the US and European companies is invalid.

“How many companies in the European markets have a market capital of trillion dollars and increasing revenues from 60% per year or have gross profitability that north of 50%?” he said. “The investor is better suited to obtain more information than less or more frequent information.”

Earlier this year, the sovereign Norway wealth fund suggested switching to six -year reporting, saying that the extension of the terms will allow companies to focus on the long run. The long -term stock exchange trading platform also maintained less frequent reporting.

The White House refused to comment on Trump’s post. CNBC turned to the SEC for comments.

(Learn about the best 2026 strategies from the inside NYSE with Josh Brown and others at the CNBC Pro Live. Tickets and information there.)