Three Things We're Watching This Week

U.S. business reporting requirements
How often should a business disclose its earnings? U.S. President Donald Trump recently reignited that debate, suggesting U.S.-listed companies should adopt periodic disclosures every six months rather than the current quarterly reporting schedule. The concept isn’t entirely new. Some European countries have long embraced biannual reports, the U.S. itself used this schedule before 1970, and Trump also mused about the need to lower the reporting frequency during his first term. The argument in favour of nixing quarterly reporting suggests that reducing the frequency of financial reports would free up management to prioritize long-term growth over short-term profitability. However, opponents of the move argue that less disclosure could impact transparency for investors, leaving them with fewer data points to guide their decisions.

What we’re watching
The movement to drop the quarterly reporting requirements is gaining momentum, with the chair of the U.S. Securities and Exchange Commission saying he will propose the rule change.¹ Canada may soon follow suit. The Canadian Securities Administrators has been studying the switch to twice-yearly reporting for smaller companies since 2021. While an official decision hasn’t been made, the chief executive of the Toronto Stock Exchange recently said he expects the rule change could be in place within the next two years.² The current thinking in the U.S. would be to let companies decide for themselves as to whether to switch to the new reporting schedule or continue to issue quarterly reports. When the Vienna Stock Exchange ended quarterly reporting requirements in 2019,³ many large-scale companies continued to report quarterly, although they produced less detailed filings.

Smaller pumpkin crop
The fires that raged across much of Canada this year – and that in some cases are still raging – are indicative of extreme heat and drought-like conditions that persisted all summer. But the conditions that fuel those blazes have also put pressure on the agricultural sector. One of several potential crops at risk this year is pumpkins, with some farmers warning that the orange gourd may be in shorter supply.⁴ The dry conditions hit about 71 per cent of the country in August, according to the Canadian Drought Monitor.⁵ That long arid spell is challenging for all farmers, as just four days of stress from arid conditions can impact a corn crop,⁶ while lentils start to show the effects of dry conditions between four and 10 days.⁷

What we’re watching
Although Halloween displays are starting to pop up at local grocery stores, depending on where your pumpkin was grown, you may have to search harder if you have plans for a large jack-o-lantern this year. Canada’s crop could also impact spooky season stateside as the country is a major exporter of pumpkins, sending nearly $12 billion worth of the fruit to the U.S. in September 2024⁸ (gourds and squash are also included in that figure). Fortunately, PSL (pumpkin-spiced latte for those non-coffee drinkers) aficionados look to be in the clear for now, as there’s been no reported shortage of pumpkin puree, the key ingredient that turns coffee into autumn in a cup.

Lower consumer spending
RBC cardholder data⁹ shows Canadian consumers pulled back on spending in August. Data shows core retail growth slowing for the third consecutive month, with sales up 0.4 per cent on a seasonally adjusted basis, compared to 1.1 per cent in July. The biggest drag on spending came from categories like groceries and gasoline, which fall under essentials in the report. Overall, spending on essentials was down 0.6 per cent month over month. Discretionary spending, however, did expand – particularly on clothing, which accelerated in August. RBC cardholder data paints a slightly different picture of the health of the consumer than the data from the Bank of Canada and the Conference Board of Canada. The Bank of Canada’s Canadian Survey of Consumer Expectations found Canadians are pessimistic about their spending intentions and overall financial health as a result of increased job losses. The Conference Board’s latest Index of Consumer Confidence echoed that sentiment, with the index retreating in July, after four consecutive months of improvement. Overall, the index remains substantially lower than where it was a year ago.

What we’re watching
Despite the pessimistic indicators, consumer spending has remained more resilient than expected, which is continuing to provide underlying support for the economy. The positive growth in discretionary purchases, paired with the moderate spending on essentials, reflects a relatively resilient Canadian consumer, which is helping to offset the challenges the industrial sector has faced due to ongoing U.S. tariffs. This aligns with RBC’s broader economic outlook that the Canadian economy will resume its slow, but positive GDP growth.

Sources
^1. _{CNBC, "SEC to propose rule change on Trump's call to end quarterly earnings reporting, says Chair Atkins", September 2025}
^2. _{The Globe and Mail, "TSX head expects semi-annual reporting for some firms within two years", September 2025}
^3. _{BNN Bloomberg, "Quarterly or twice a year? Reporting frequency in question as Trump pushes for change", September 2025}
^4. _{CTV, "'There's something strange in the pumpkin fields': Drought and heat frightening farmers", September 2025}
^5. _{Agriculture and Agri-Food Canada, "Canadian Drought Monitor", September 2025}
^6. _{Successful Farming, "Effects of Heat Stress on Corn", May 2025}
^7. _{Saskatchewan Pulse Growers, "Lentils Harvest", 2025}
^8. _{Statistics Canada, "Exports", September 2024}
^9. _{RBC Thought Leadership, "RBC Consumer Spending Tracker", September 2025}