Published: Sun, June 10, 2018
Medicine | By Earnest Bishop

JP Morgan CEO Says He's Not Running for President'

JP Morgan CEO Says He's Not Running for President'

The group will likely reveal who that person is within two weeks.

Hedge fund Elliott Management Corp Chief Executive Paul Singer said on Thursday he agreed with billionaire investor Warren Buffett and JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon that companies should move away from providing quarterly earnings guidance.

"Reducing or even eliminating quarterly earnings guidance won't, by itself, eliminate all short-term performance pressures that USA public companies now face, but it would be a step in the right direction", Dimon and Buffett wrote.

Dimon said CEOs can influence their quarterly results by not opening branch offices, cutting research and development spending, reducing their marketing and other decisions that could hurt future earnings.

"In our experience, quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability", they wrote.

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Dimon is the chairman of the Business Roundtable, an association of CEOs of America's leading companies working to promote a thriving US economy. CEO Jamie Dimon appealed for radical changes to the way public companies disclose financial information. That's not too surprising given the Dimon is now the chair of the Business Roundtable. An outsized emphasis on quarterly earnings per share projections undermines the importance of investments in infrastructure, workforce development and other crucial capital expenditures that drive sustained US economic growth.

More than 100 million Americans invest in public companies directly or through mutual funds and millions more participate in corporate, public and union pension plans.

When the actual earnings results are officially reported, so-called beats - or profit results that top expectations - are often rewarded with a rise in the stock price.

Those in favor of guidance say it improves communications with Wall Street, reduces share price volatility and boosts a stock's value.

Short-term-oriented capital markets have discouraged companies with a longer-term view from going public at all, depriving the economy of innovation and opportunity, the said.

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