Andrew Gillan of Janus Henderson Investors says he likes markets in the Philippines and Indonesia, and explains why it's difficult to invest in Vietnam despite its...Investingread more
China has other "weapons" in its trade battle with the United States — and selling off its U.S. Treasury holdings will not be one of them, said Richard McGregor, senior fellow...China Economyread more
Deutsche Bank Wealth Management's global chief investment officer predicted the Federal Reserve will cut interest rates twice in the next 12 months, but chances of a four-time...US Economyread more
Google's services have been blocked in China for several years, but the company still has businesses there, as the tech giant seeks to sell products to Chinese firms in...Technologyread more
Netflix can sustain its lofty valuation only if global subscriber growth can support increasing content spending and debt.Technologyread more
Germany online bank N26 said it raised a huge $170 million in additional funding, valuing the six-year-old fintech start-up at $3.5 billion.Technologyread more
Stocks in Japan were the biggest losers among major markets in the region on Thursday, with the other Asian bourses following suit, amid a renewed threat to trade.Asia Marketsread more
The House voted to table a resolution to start impeachment proceedings against President Donald Trump introduced by Rep. Al Green.Politicsread more
A photo editing app has introduced a few new wrinkles to the faces of celebrities — and to the ongoing discussion around personal digital security, NBC reports.Technologyread more
Property price gains across the wider U.K. have been slowing since 2016, according to the U.K.'s Office for National Statistics.Real Estateread more
The International Monetary Fund on Wednesday said that the U.S. dollar was overvalued by 6% to 12%, based on near-term economic fundamentals, while the euro, Japan's yen and...World Economyread more
Warren Buffett and Jamie Dimon have teamed up to once again call for the end to quarterly earnings guidance by companies.
Dimon, the chairman of the Business Roundtable, said the group of CEOs has thrown its support behind companies backing away from the practice.
Executives often feel pressure to make quarterly forecasts, but "it can often put a company in a position where management from the CEO down feels obligated to deliver earnings and therefore may do things that they wouldn't otherwise have done," Dimon said in a rare joint interview with Buffett airing Thursday on CNBC's Squawk Box.
"Quarterly earnings: they're a function of the weather, commodity prices, volumes, competitor pricing. And you don't really control that as CEO," he added. "Sometimes you're just like the cork in the ocean, but do the right thing anyway and you're going to be fine in the long run."
"You should build the systems you need, you should do the R&D that you need and explain it to your shareholders and your board. Of course, some of the CEOs will say it's the sell side, that we put pressure, but what I'm trying to say to people: be free to drop it."
It is a long-simmering debate but one that has gotten more attention in an era when activist investors are more vocal about pushing companies to deliver on their promises.
Companies forecast sales and profit numbers to Wall Street analysts, who use it to produce research and stock recommendations for investors. Missing "the number" can often result in big, short-term stock moves. Making a forecast, and then hitting the target, are seen as a way to manage expectations and eliminate volatility.
Buffett's Berkshire Hathaway doesn't give guidance, which Buffett has said can tempt executives to manipulate numbers to meet Street expectations.
It's "sending the wrong message," Buffett told CNBC's Becky Quick in the interview. "When companies get where they're sort of living by so-called making the numbers, they do a lot of things that really are counter to the long-term interests of the business."
Buffett and Dimon helped produce a set of voluntary governance guidelines two years ago, which was signed by more than one dozen executives. One of the principles outlined in that report said companies shouldn't feel obligated to give quarterly guidance, which for years many have blamed for making executives obsessed with short-term results.
Those in favor of guidance say it improves communications with Wall Street, reduces share price volatility and boosts a stock's value.
But McKinsey & Co. found in a 2006 study that quarterly guidance didn't affect valuation multiples and didn't reduce share price volatility. The only significant benefit it observed was an increase in trading volumes, which is good for day traders but not useful for most other people.
Instead, McKinsey found, the practice of giving quarterly guidance took up valuable time from management and made them focus too much on the short term. Around that time, big companies like Coca Cola, UPS and AT&T said they would no longer give quarterly guidance.
Dimon said Thursday that about 20 percent of Business Roundtable members still do quarterly guidance and about 60 percent provide annual targets. But, he added, taking a stand on the issue is "a first step."