President Donald Trump recommended on Monday that U.S. companies cease issuing quarterly earnings stories.

“Topic to SEC Approval, Firms and Companies ought to not be compelled to ‘Report’ on a quarterly foundation (Quarterly Reporting!), however reasonably to Report on a “Six (6) Month Foundation,” the publish started. “This can get monetary savings, and permit managers to concentrate on correctly operating their corporations. Did you ever hear the assertion that, ‘China has a 50 to 100 yr view on administration of an organization, whereas we run our corporations on a quarterly foundation???’ Not good!!!”

Present Securities and Trade Fee (SEC) rules require public corporations to report earnings quarterly, however a change to reporting each six months might be made by the SEC or Congress. Public corporations have been reporting quarterly earnings since 1970.

Adjustments to earnings stories have been on the minds of enterprise leaders earlier than, notably Berkshire Hathaway CEO Warren Buffett and JPMorgan Chase CEO Jamie Dimon. CNBC notes that, in 2018, the duo wrote a joint op-ed for The Wall Road Journal that pushed for eliminating quarterly steerage, writing that “quarterly earnings steerage usually results in an unhealthy concentrate on short-term earnings on the expense of long-term technique, development and sustainability.” The duo nonetheless advocated for earnings stories, although: “Our views on quarterly earnings forecasts shouldn’t be misconstrued as opposition to quarterly and annual reporting.”

Axios stories that China requires quarterly reporting, although Trump was seemingly referring to corporations listed on the Hong Kong alternate, which solely report each six months. Firms within the U.Ok. and European Union are required to file solely twice a yr, however can select to report quarterly.