Don't miss

Replay


LATEST SHOWS

FACE-OFF

2017 French presidential election: Can newcomer Macron win?

Read more

BUSINESS DAILY

Davos 2017: WEF considers challenges for Paris Climate Agreement

Read more

BUSINESS DAILY

Davos 2017: 'Globalisation is biggest challenge'

Read more

BUSINESS DAILY

Davos 2017: Businesses ready to seize new opportunities

Read more

BUSINESS DAILY

Davos 2017: Hard Brexit 'a double-edged sword for Ireland'

Read more

IN THE PAPERS

French papers: A small slap for Valls, a major PR blow for his campaign

Read more

IN THE PAPERS

Theresa May: 'It's my way or the highway'

Read more

EYE ON AFRICA

Nigerian air force mistakenly bombs refugee camp, at least 50 dead

Read more

MEDIAWATCH

Brexit Means Hard Brexit

Read more

IN THE PAPERS

An overview of the stories making the French and international newspaper headlines. From Monday to Friday live at 7.20 am and 9.20 am Paris time.

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

2017-01-18 Brexit

French papers: A small slap for Valls, a major PR blow for his campaign

FRENCH PAPERS - Weds. 18.01.17: French papers react with alarm to the British prime minister's highly anticipated speech in which Theresa May clarified her government's "hard...

Read more

2017-01-18 Theresa May

Theresa May: 'It's my way or the highway'

INTERNATIONAL PAPERS - 18.01.17: British papers react to PM Theresa May's highly anticipated speech in which she clarified the government’s "hard Brexit" plans. Also, the world...

Read more

2017-01-17 Brexit

'Great Brexpectations'

INTERNATIONAL PAPERS - Tues. 17.01.17: In the UK, Theresa May is set to give a speech in which she will present a 12-point plan for Brexit. British papers are calling it her most...

Read more

2017-01-17 Donald Trump

Trump's anti-European 'attack'

FRENCH PAPERS - Tues. 17.01.17: French papers react to comments US President-elect Donald Trump made in interviews with European papers published this weekend. Papers across the...

Read more

2017-01-16 Donald Trump

Donald Trump's busy weekend

IN THE WORLD PAPERS - Monday, January 16: Donald Trump has had a busy weekend. He was criticised by CIA Director John Brennan and he gave multiple interviews, including one of...

Read more