Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Trump: Fake News And Unnamed Sources

Read more

THE WORLD THIS WEEK

Trump Administration, Trukey Crackdown, French Presidential Race (part 1)

Read more

THE WORLD THIS WEEK

Trump Administration, Trukey Crackdown, French Presidential Race (part 2)

Read more

FRANCE IN FOCUS

Aux Champs-Elysées: The story behind France's most famous avenue

Read more

#TECH 24

Foosball gets its own social network

Read more

YOU ARE HERE

Inlays and veneers: The art of French cabinetmaking

Read more

PEOPLE & PROFIT

How should companies respond to a Trump Twitter attack?

Read more

#THE 51%

Trump abortion funding ban: Europe tries to fill the breach

Read more

REPORTERS

Video: India’s Kuki people, possible descendants of one of Israel's lost tribes

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

2017-02-24 Syria

Xenophobic attacks in South Africa cause tension with Nigeria

INTERNATIONAL PAPERS - Fri. 24.02.17: Papers focus on the situation in Syria, where Turkish-backed troops have managed to recapture Al Bab, a major stronghold of the Islamic...

Read more

2017-02-24 François Bayrou

A cow named Fine, star of the Paris Agriculture Fair

FRENCH PAPERS - Fri. 24.02.17: Papers continue to react to an alliance in the political centre between François Bayrou from the MoDem party and Emmanuel Macron from the "En...

Read more

2017-02-23 Mexico

'Pineapple Pizza Tests Limits of Presidential Power in Iceland'

INTERNATIONAL PAPERS - Thurs. 23.02.17: US officials receive a "chilly" welcome in Mexico with tensions running high over immigration. Meanwhile, British papers wonder if their...

Read more

2017-02-23 François Bayrou

French papers react to alliance between centrists Macron and Bayrou

FRENCH PAPERS - Thurs. 23.02.17: Papers react to yesterday's surprise announcement of a centrist alliance between Emmanuel Macron and longstanding centrist politician François...

Read more

2017-02-22 Donald Trump

93 candles for Robert Mugabe

INTERNATIONAL PAPERS - Weds. 22.02.17: In the US, President Donald Trump directs his administration to enforce the nation’s immigration laws more aggressively, drawing mixed...

Read more