(Washington)

Late last week President Trump announced a new idea that would be a major change for US markets. Trump requested that the SEC look into whether the US should abolish the quarterly earnings reporting requirement. The president says he is hoping the US can move to twice-a-year reporting instead of the current model of reporting four times. He says he got guidance from top business leaders before his request and that he thinks it would improve the US’ business environment.

FINSUM: The big hope here is that by reporting earnings half-yearly, companies would be able to be more strategic in their focus and less obsessed with short-termism. We would welcome the change, but it would have some risks, and we hardly think a six-month focus is “long-term”.