U.S Government will support Long Term System instead of Short Term: Trump - Aurora Cup
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U.S Government will support Long Term System instead of Short Term: Trump

Trump Directs SEC to Study Six-Month
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The U.S President Trump said that he asked the Securities and Exchange Commission to consider scaling back how often public companies report results to investors, citing business leaders who say it could promote growth. Trump said in a tweet that he consulted some of the top business leaders in the world on steps to generate jobs and make business much better. Trump said that one of them told him to stop quarterly reporting and shift to a 6-month system. This move will promote flexibility and save money for companies. Point to be noted that Trump arranged a meeting with business leaders at his club in Bedminster, New Jersey. One of the participants pointed out on an issue of whether quarterly reporting requirements force companies on focusing much on short-term concerns and working of Trump administration to promote the long-term system.

The comments of Trump could reignite a long-running controversy over whether there is too much emphasis on quarterly results at the expense of long-term investment and growth. The SEC Chairman Jay Clayton hasn’t to date embraced the idea of moving away from quarterly reporting. Earlier this year, the Wall Street Journal published an article in which JP Morgan Chase Chief Executive Jamie Dimon and Berkshire Hathaway Chairman Warren Buffett said that companies should stop giving quarterly earnings guidance. It puts too much weight on hitting short-term targets and discourages longer-term investment. Dimon chairs the Business Roundtable (a group of CEOs who lobby Washington) has announced support halting quarterly guidance. The executives also said that they still supported quarterly reporting. The U.S Treasury Department issued a report in October proposing regulatory changes in making it easier for companies to raise capital.