Unhedged Podcast Summary

Episode: Should Companies Report Only Twice a Year?

Date: September 18, 2025
Hosts: Katie Martin (FT, London) & Rob Armstrong (FT, New York)

Episode Overview

In this episode, Katie Martin and Rob Armstrong tackle the timely question: Should companies report earnings only twice a year instead of the current quarterly cadence? Prompted by a recent, characteristically spontaneous proposal from US President Donald Trump, the discussion unpacks long-standing debates around corporate reporting frequency. The hosts examine implications for investors, executives, and the wider markets—balancing potential benefits with the critical context of US political and economic transparency.

Key Discussion Points & Insights

1. Why the Debate Now? (02:20)

• Donald Trump’s remark about ending quarterly reporting requirements forms the backdrop. The hosts note the idea has been around for years but hasn't gained traction.
• Quote: "Say what you like, but we are good at this… Let's start at the beginning, shall we? A very good place to start." —Katie Martin (02:14)

2. Legal and Historical Context (03:29—04:55)

• Quarterly reporting in the US is rooted in post-Great Depression regulations (1934 Securities and Exchange Act), giving the SEC authority—unclear whether Trump alone could change this without legislative or regulatory actions.
• Quote: "Quarterly reporting in its current form came mostly from the big financial regulation law… The SEC has the authority to require quarterly reports." —Rob Armstrong (03:46)

3. Is Reporting Really That Burdensome? (04:55—06:31)

• Katie asks whether AI could lessen the reporting burden. Rob admits much of the work is formulaic, with minor changes each quarter—though rapid and detailed disclosure remains vital when significant changes occur.
• Quote: "What we're worried about is the cases where something really has changed… investors deserve some detailed reporting quickly when a big thing changes." —Rob Armstrong (05:47)

4. Beyond Paperwork: The Value of Live Disclosures (06:31—07:16)

• Quarterly reports are less about the documents and more about executive Q&As with analysts, where investors glean subtle cues about company direction.
• Quote: "You do lose actually quite a rich chunk of information [if those calls are lost]." —Katie Martin (07:09)

5. Would Less Frequent Reporting Help Investors? (07:16—09:40)

• Rob questions the assumption that “less is bad,” floating the idea that less frequent reports might force the market to focus on key facts and reduce informational “noise.”
• Katie references private companies’ aversion to burdensome quarterly disclosures as a reason they stay private.

6. Political Context & Transparency Concerns (09:40—11:40)

• The Trump administration’s “anti-information” stance—sacking officials, challenging data—colors perceptions of the proposal and raises red flags about motives.
• Quote: "So it's very hard, I think, for people to make the case that… we’re still absolutely in favor of transparency and, and of rigor…" —Katie Martin (10:08)
• Quote: "One of Trump's superpowers… is making certain people agree with whatever he says. His equally powerful and important second superpower is making other people disagree automatically…" —Rob Armstrong (10:39)

7. European Model: What Can We Learn? (11:41—14:54)

• Europe is a patchwork: UK companies mostly report semiannually; German firms stick to quarterly. Sharon Bell (Goldman Sachs) research cited—US stock performance outpaces Europe despite heavier reporting load.
• Quote: "It seems somewhat ironic therefore that US stocks have outshone European and UK companies… despite the requirement that they report quarterly." —Katie Martin (12:58)

Arguments for and against less frequent reporting:

• Pros: Might reduce executive distraction, allow longer-term planning.
• Cons: No strong evidence that semiannual reporting boosts long-term decisions.
• US capital markets benefit from their perceived reliability, partly rooted in consistent quarterly reporting even during crises.

8. The Value of Regular Data in Times of Crisis (15:24—17:29)

• During market turmoil (“when the brown stuff hits the fan”), the reliability of quarterly reports gives investors reassurance.
• Quote: "That regularity is actually quite reassuring to a lot of investors… one of the reasons why the US is considered home for global money." —Katie Martin (15:29)
• Quote: "Quarterly reporting… is a pain in the butt, [but] suddenly matters a lot… you want it there then." —Rob Armstrong (16:30)

9. Final Takeaways (17:29—19:26)

• Both hosts become more skeptical of reducing reporting frequency, mainly due to the current political context and the role regular reports play in market stability during crises.
• Quote: "Right now is the wrong context… once every couple of years, quarterly reporting is going to really matter. And it’s worth it in those times to have that protection in place." —Rob Armstrong (17:37)
• Quote: "I do not see this [proposal] as a force for good in the world." —Katie Martin (18:54)

Notable Quotes & Memorable Moments

• Katie Martin: “If the point that Trump is making here is that pulling together these quarterly reports is a giant pain in the ass… why not get AI to do it?” (04:55)
• Rob Armstrong: “More information doesn’t always mean more knowledge.” (08:26)
• Katie Martin: “It kind of doesn’t smell right to me.” (10:36) — on the transparency implications of the Trump administration’s stance

Important Timestamps

• 02:20: Introduction of Trump’s proposal and historic context
• 05:19: Discussion about AI and report automation
• 07:16: Impact on analyst calls and investor insight
• 09:40: Political context and concerns about anti-transparency
• 11:53: European models of reporting frequency
• 15:24: Why frequent updates appeal to global investors
• 16:30: The critical role of quarterly reports during crises
• 17:37: Final verdicts from the hosts

Tone & Takeaways

• Lively, witty, and skeptical—characteristic FT banter throughout, with dry British and American humor.
• Both hosts recognize legitimate frustrations with quarterly reporting but remain unconvinced that reducing reporting frequency is in investors’ or the market’s best interests—especially given contemporary political dynamics.

Appendix: Long/Short Segment (20:03)

• Rob is short smart glasses (“…I just feel the direction we’re going… is that we want to contain [technology] and have it in parts of our life…”).
• Katie joins Rob in being short smart glasses and shares her discomfort with their potential privacy impacts.
• Katie is long on a clean, child-free house as her daughter leaves for university.
• Rob bemoans the perpetual chaos of life with teenagers and a dog.

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