IR Monitor – 5 November 2025

In this week’s newsletter:

• AI is co-writing financial reports. It matters, according to the WSJ, because it raises concerns about trust, transparency & the loss of authentic communication with investors
• How does secrecy about short-sellers encourage investors? Writing for The Times, Alastair Osborne’s answer is that it won’t – instead it will reduce market transparency and undermine efforts to encourage more people to invest in UK shares
• Reuters: Buybacks take backseat as AI drives record US capex spending
  
• Bloomberg on why Germany’s Merz is calling for a joint European stock exchange
  Investor relations versus social media: Snowflake says exec shared unauthorized guidance in Instagram street interview – CNBC
• And finally … Calling all French Investor Relations Officers! FTI Consulting, in association with Broome Yasar, will be hosting a special panel discussion in Paris exploring the evolution of the investor relations function on Thursday 20th November

This week’s news

AI is co-writing financial reports and why it matters – Wall Street Journal

Companies are leaning on generative AI to draft more elements of their financial reports to reduce costs and speed up regulatory filings.  According to ON Semiconductor’s Chief Financial Officer Thad Trent AI can now almost fully complete drafts requiring limited human oversight or edits. Trent told The Wall Street Journal that this has shortened the company’s reporting cycle by 20%. Hewlett Packard is taking its aspirations one step further, preparing to use its own large language model to produce entire first drafts of financial statements. Proponents of AI, such as Hewlett’s CFO Marie Myers, points to AI’s ability to mirror and aggregate data better than humans. Many also recognise the exciting prospect for AI to create customised versions of reports for different shareholder groups, offering a new way to engage investors. However, academics and advisers also warn that overusing AI may cause reports to sound robotic and emotionless, gradually eroding trust between companies and investors.

How does secrecy about short-sellers encourage investors? – The Times

The UK’s plan to relax short-selling disclosure rules could make the market less transparent undercutting the government’s efforts to get more people investing in the stock market writes Alistair Osborne. Under the proposed changes, short-sellers would no longer have to reveal their identities publicly, instead reporting positions above 0.2% to the FCA, which would then publish only the total of all such positions. Under current rules, any holding above 0.5% gets disclosed publicly. Alistair Osborne strongly opposes this plan, arguing that it will obscure the market and leave everyday investors without vital information. He warns that identifying which investment firms are betting against stocks is critical for estimating risk and market behaviour, therefore giving insiders an unfair advantage. He furthermore points out that this is extremely at odds with Reeves’ desire to attract new participants to the stock market as this new reduced visibility will likely discourage cautious investors rather than encourage.  

Investors choose AI ambition over cash comfort – Reuters

A growing number of investors are now favouring companies that prioritise AI development over those focused mainly on regular shareholder dividends. Analysts note that firms which channel capital into AI infrastructure and capability are being rewarded with stronger share price performance, even as debate continues around how sustainable current valuations may be. As Reuters reports, Goldman Sachs now expects US share buybacks to rise by 9% this year, down from an earlier forecast of 12%, as AI-related investment is projected to continue through to 2026. Total capital expenditure among S&P 500 companies has reached roughly $1.2 trillion, with a small group of large technology firms accounting for almost one-third of that spending. At the same time, companies offering large payouts without a convincing AI strategy, such as Apple, have fallen behind peers, whose AI positioning has supported substantial gains. Importantly, enthusiasm for AI investment is spreading across sectors including banking, defence and consumer goods.  

Why is Friedrich Merz calling for a European Stock Exchange?

In exciting news for the EU financial industry, Germany’s Chancellor Friedrich Merz has formally expressed his support for the formation of a pan-European stock exchange. Such proposal would aim to establish a single, unified stock market by merging Europe’s multiple stock exchanges into one, ultimately to allow companies to trade more effectively and gain access to greater funding. Whilst similar ideas have been raised in the past with little success, as  Bloomberg reports, Merz’ renewed appeal may present the strongest endorsement of the idea yet. He highlights that European companies require a deeper and broader capital market in order to finance themselves ‘better and faster,’ & to dissuade firms from defecting to the US. Such a transformation would not be without its challenges: it would trigger significant technical & political challenges and would require approval from shareholders and regulatory authorities. Supporters of the idea maintain that a unified European market would enhance the continent’s competitiveness & attract greater European investment, whilst critics suggest that the complexities of aligning the region’s diverse tax and regulatory systems – as well as the competitive pressure it would place on the London Stock Exchange – could undermine the viability of the idea.  

How an Instagram street video led to a regulatory filing – CNBC 

In a nightmare for every IR officer, Snowflake has become the latest case study in how quickly informal statements can trigger regulatory attention. Last week, the company was required to file a Securities and Exchange Commission (SEC) 8-K following a viral video in which its Chief Revenue Officer shared unofficial financial guidance. As reported by CNBC, the video, which has accumulated over 2.5 million views, featured Mike Gannon being interviewed by an influencer who posts under the account name “theschoolofhardknockz.” In the video taken outside the NYSE, Gannon said that Snowflake will exit the year with just over $4.5 billion in revenue and that “we’re getting to $10 billion in a couple of years.” In the filing, the data-storage company emphasised that Gannon was neither a ‘designated spokesperson’ nor ‘authorised to disclose financial information,’ and that such comments should not be relied upon by investors. The incident highlights the significant regulatory and reputational risks facing companies when financial info is publicly disclosed without proper authorisation. 

And finally… Calling all French Investor Relations Officers to FTI Paris, 20th Nov

FTI Consulting, in collaboration with Broome Yasar, will host an exclusive panel discussion in Paris on Thursday 20th November, exploring the evolution and future of the investor relations function. The session will be led by Arnaud de Cheffontaines, Managing Director at FTI Consulting, who will guide a conversation alongside a panel of leading industry experts, discussing the key forces reshaping the landscape and evolution of IR. The event will also feature Oskar Yasar, author of the groundbreaking book The Global Investor Relations Revolution, and all attendees will be given a complimentary copy of his work. The event promises to be an engaging, insightful and thought-provoking discussion which will explore the future of investor relations. Register here and see you in Paris – all readers of the IR monitor are welcome.