Don't miss

Replay


LATEST SHOWS

TALKING EUROPE

Fighting terrorism: Does Europe have a plan?

Read more

ENCORE!

Music show: Björk, Charlie Winston and Ray Lema

Read more

FOCUS

Eastern Ukraine dragged deeper into war

Read more

TALKING EUROPE

What would a Syriza victory mean for Greece?

Read more

FOCUS

Set, the new pro-Putin youth movement

Read more

THE BUSINESS INTERVIEW

Jean-Pascal Tricoire, CEO of Schneider Electric: 'France is on a better track'

Read more

THE INTERVIEW

Riots over cartoons of Prophet Mohammed are 'childish'

Read more

ENCORE!

Literary giant Russell Banks on freedom of speech

Read more

THE INTERVIEW

Majority of EU citizens 'support transatlantic trade deal'

Read more

Live from the newsroom, we provide an overview of the stories making the French and international newspaper headlines. From Monday to Friday at 7.20 am and 9.20 am Paris time.

IN THE PAPERS

IN THE PAPERS

Latest update : 2011-08-12

Financial crisis: errors creep in

How much impact did a Mail on Sunday piece have on Société Générale's share tumble earlier this week? The French press leads on the economic turmoil as French banks feel the heat, slapping a triple zero rating on the credit ratings agencies along the way. That's the focus for Friday, 12th August, 2011.

France’s front pages cover the market turmoil, with France’s banks in the line of fire. La Tribune and Le Figaro both lead on that. Société Générale has been the worst affected by the rollercoaster ride. It was obliged this week to deny its financial stability was at risk. As James Creedon reported in our Media Watch slot on Thursday, the UK’s Mail on Sunday may have inadvertently caused Société Générale’s stocks to plummet when it said the bank was in a 'perilous' state and possibly on the 'brink of disaster'. It’s been suggested the Mail on Sunday picked that up from a “Summer Fiction Series” in Le Monde, in which Le Monde imagines a situation in 2012 where the euro might have collapsed.

L’Expansion.fr points out that the bank's share value sank on Wednesday even after the Mail on Sunday issued an apology. It adds that an accumulation of bad news for Société Générale gave the rumour credibility.

Le Figaro's coverage includes a piece entitled: "When Twitter and the craziest rumours steer the markets". It reports that a series of tweets on Wednesday afternoon raised the prospect of a Soc Gen bust over the space of a few hours, so much so that it seemed probable. As a consequence, the bank lost more than 20% of its share value.

The Journal du Dimanche website asks Le Monde whether it has been in touch with the Mail on Sunday, which replies that all will be revealed in its Saturday edition. Le Monde, in the interview, says it had no way of knowing in May, when it prepared the Summer Fiction series, that its catastrophic scenario could cause crossed wires just weeks later.

The left-wing paper Libération headlines “Triple Zero”. It has a two-page report into what it says is the hidden face of the credit ratings agencies "panicking the planet". It says the analysts working for them are “eggheads” who work to speed, more so than analysts at the IMF and World Bank. And it quotes an economist saying Standard & Poor’s is more focused on short-term economic shifts, which explains why it changes its ratings more often than the other two (Moody's and Fitch). The paper reports that workloads have doubled for the credit ratings' agencies. There is under-staffing, and errors creep in.

By Nicholas RUSHWORTH

COMMENT(S)

Archives

2015-01-26 eurozone

'Syriza has opened a breach'

FRENCH PAPERS - Mon. 26.01.15: French papers largely focus on Greece and the victory of the anti-austerity Syriza party in the general election. Communist paper L'Humanité...

Read more

2015-01-26 eurozone

Greece's political earthquake

INTERNATIONAL PAPERS - Mon. 26.01.15: Papers in Greece say a "page has turned" in Greek politics with the victory of the far-left Syriza party in the general election. Papers...

Read more

2015-01-23 King Abdullah of Saudi Arabia

'Saudi King dies, the world shudders'

INTERNATIONAL PAPERS - Fri. 23.01.15: Papers across the world focus on the passing of King Abdullah of Saudi Arabia at the age of 90. His death adds another element of...

Read more

2015-01-23 ECB

'Super Mario breaks the bank'

FRENCH PAPERS - Fri. 23.01.15: The spotlight is on European Central Bank President Mario Draghi and his decision to inject at least €1.1 trillion into the ailing eurozone economy...

Read more

2015-01-22 Turkey

'Irony is History's most beautiful weapon'

INTERNATIONAL PAPERS - Thurs. 22.01.15: The Independent interviews Turkish Prime Minister Ahmet Davutoglu, who says the "flood of jihadi volunteers" crossing into Syria to fight...

Read more