Could the US scrap quarterly reporting?
The FT News Briefing covers three major stories: a proposed SEC rule to cut U.S. corporate reporting from quarterly to semi-annual, a global oil crisis stemming from the U.S.-Iran war, and HSBC's disappointing quarterly results driven by a $400 million fraud charge and war-related impairments.
Summary
The broadcast opens with an alarming update on global oil reserves, which dropped at a record pace of 6.5 million barrels per day in April according to S&P Global Energy. The U.S.-Iran war has effectively closed the Strait of Hormuz for two months, stalling critical oil shipments. Goldman Sachs warns that only 45 days of refined oil products — including gasoline, diesel, and jet fuel — remain worldwide, with the summer travel season approaching.
The SEC has proposed a rule that would allow U.S.-listed companies to report earnings twice a year instead of four times. FT markets correspondent George Steer explains that SEC Chair Paul Atkins, nominated by Trump, argues quarterly reporting is too rigid and distracts management from focusing on growth. The proposal aligns with Trump's long-standing criticism of short-termism in U.S. markets, first raised in 2018. Atkins also contends that burdensome reporting requirements have contributed to a decades-long shrinkage in the number of public companies, as firms opt to stay private longer. Investor groups are divided: some argue less frequent reporting reduces transparency and capital allocation efficiency, while others support the change as a way to revitalize IPO markets. The proposal enters a 60-day public comment period before a final SEC vote.
In AI news, Google, xAI, and Microsoft agreed to let the U.S. Commerce Department review new AI models before public release to assess national security risks, including cybersecurity and biosecurity threats. Notably, Anthropic — whose latest Claude model has raised concerns about enabling hacking — is not part of this agreement.
HSBC's first-quarter results disappointed investors, with shares falling sharply. The bank disclosed a $400 million fraud-related charge tied to the collapse of UK firm Market Financial Solutions, which allegedly engaged in illegal double-pledging of collateral to multiple lenders. HSBC was exposed indirectly through lending to Apollo-owned Atlas. Credit losses reached $1.3 billion, up 50% year-over-year. The bank also set aside $300 million to cover potential losses from the Iran war, given its strong Middle East and Asia exposure. Despite these setbacks, HSBC's wealth management unit performed well, revenues rose, and its share price is up roughly 50% over the past year.
About this episode
<p>Global oil reserves plunged at a record pace in April and the SEC said it was proposing to allow public companies to file earnings reports every six months. Plus, the US will start reviewing some AI models over national security concerns and HSBC’s profits took a major hit from “fraud-related” exposure. </p><br /><p><strong>Mentioned in this podcast:</strong></p><p><a href="https://www.ft.com/content/3560d1e3-8271-453f-84d6-4a875b9efd98?accessToken=zwAAAZ6T1p1AlM81YNHjgnFFP9OE1kqHW579mNPEQ13UAMBCcNOquTx84a5F9s9SDNCR1Z5ActO0soeeLre3qM877rJvbDVGqdOxFkLtvmVS_QE.MEQCIC8iRPrEM6o9qrbXC1vkbZcZhmYzkI3ZIPm-rmO7xXaqAiBC627q10va2t8FQ2nNSIGJFmff4CBnLG5ciZyNxDyrvA&segmentId=7d4bcc2e-e664-92ba-62e3-5590579f1902" rel="noopener noreferrer" target="_blank">SEC moves to scrap quarterly reporting requirement</a></p><p><a href="https://www.ft.com/content/3beeb26f-6c35-46a9-b116-42edbe6552fd?accessToken=zwAAAZ6T1p1AlM81YNHjgnFFP9OE1kqHW579mNPEQ13UAMBCcNOquTx84a5F9s9SDNCR1Z5ActO0soeeLre3qM877rJvbDVGqdOxFkLtvmVS_QE.MEQCIC8iRPrEM6o9qrbXC1vkbZcZhmYzkI3ZIPm-rmO7xXaqAiBC627q10va2t8FQ2nNSIGJFmff4CBnLG5ciZyNxDyrvA&segmentId=7d4bcc2e-e664-92ba-62e3-5590579f1902%5C" rel="noopener noreferrer" target="_blank">Global oil reserves plunge at record pace as Middle East war strains supplies</a></p><p><a href="https://www.ft.com/content/520cd091-d59e-4072-b4b2-879e2eb7b7a8?accessToken=zwAAAZ6T1p1AlM81YNHjgnFFP9OE1kqHW579mNPEQ13UAMBCcNOquTx84a5F9s9SDNCR1Z5ActO0soeeLre3qM877rJvbDVGqdOxFkLtvmVS_QE.MEQCIC8iRPrEM6o9qrbXC1vkbZcZhmYzkI3ZIPm-rmO7xXaqAiBC627q10va2t8FQ2nNSIGJFmff4CBnLG5ciZyNxDyrvA&segmentId=7d4bcc2e-e664-92ba-62e3-5590579f1902" rel="noopener noreferrer" target="_blank">HSBC profits hit by $400mn ‘fraud-related’ exposure</a></p><p><a href="https://www.ft.com/content/c4435dd4-00c0-4270-aab9-3c7ce1ae45f6?accessToken=zwAAAZ6T1p1AlM81YNHjgnFFP9OE1kqHW579mNPEQ13UAMBCcNOquTx84a5F9s9SDNCR1Z5ActO0soeeLre3qM877rJvbDVGqdOxFkLtvmVS_QE.MEQCIC8iRPrEM6o9qrbXC1vkbZcZhmYzkI3ZIPm-rmO7xXaqAiBC627q10va2t8FQ2nNSIGJFmff4CBnLG5ciZyNxDyrvA&segmentId=7d4bcc2e-e664-92ba-62e3-5590579f1902" rel="noopener noreferrer" target="_blank">Google, xAI and Microsoft agree to US national security reviews of new AI models</a></p><br /><p>Note: The FT does not use generative AI to voice its podcasts </p><br /><p>Today’s FT News Briefing was hosted and edited by <a href="https://www.ft.com/marc-filippino" rel="noopener noreferrer" target="_blank">Marc Filippino</a>, and produced by Katya Kumkova, Saffeya Ahmed, Fiona Symon, and Sonja Hutson. Our show was mixed by Sam Giovinco. Additional help from Michael Lello and David da Silva. Our executive producer is Topher Forhecz. Cheryl Brumley is the FT’s Global Head of Audio. The show’s theme music is by Metaphor Music.</p><br /><p><a href="https://www.ft.com/content/86423006-b42d-4a19-b4dc-cad0648b52d0" rel="noopener noreferrer" target="_blank"><strong>Read a transcript of this episode on FT.com</strong></a></p><hr /><p style="color: grey; font-size: 0.75em;"> Hosted on Acast. See <a href="https://acast.com/privacy" rel="noopener noreferrer" style="color: grey;" target="_blank">acast.com/privacy</a> for more information.</p>
Key Insights
- SEC Chair Paul Atkins argues that reducing reporting frequency from quarterly to semi-annual will help reverse the decades-long shrinkage of U.S. public markets, claiming that burdensome disclosure requirements are a key reason companies choose to stay private longer.
- Goldman Sachs warned that only 45 days of refined oil products remain worldwide as the U.S.-Iran war has kept the Strait of Hormuz effectively closed for two months, creating a record-pace drawdown of global crude reserves.
- HSBC's $400 million fraud charge stemmed from indirect exposure to Market Financial Solutions through Apollo-owned Atlas, illustrating how the collapse of a previously obscure UK lender has rippled across major global banks including Santander, Wells Fargo, and Barclays.
Topics
Transcript
Thinking long-term about your investment career? Hear stories, advice, and lessons from seasoned leaders at Capital Group on the Capital Ideas Podcast. Subscribe and start listening today. Published by Capital Client Group, Inc. Good morning from the Financial Times. Today is Wednesday, May 6th, and this is your FT News Briefing. All around the world, oil reserves are plummeting. In corporate America, Mike Kiss Quarterly reports goodbye. Plus HSBC's profits took a massive hit last quarter. We'll tell you what happened. I'm Marc Filippino and it's happening fast. Global crude reserves dropped at a record pace in April, about 6.5 million barrels a day. That's according to estimates from S&P Global Energy, which tracks commodity prices. The U.S.-Iran war is…
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