Another week, another Friday and that means another edition of our team’s Friday Fiver. This week, we have money-printing banks, Twitter-banning broadcasters, Newsnight-debriefing and Good week/Bad week. Thanks to our contributors DC, EJ, Hendog, and Josh-ua. Enjoy!
RUNNING OUT OF PAPER… It’s becoming increasingly hard for the Bank of England to convince people of the value of QE. As Fraser Nelson argued in the Telegraph, the Bank has gone a little quiet on their original reasons for launching QE which isn’t helping – nor is the fact that the links between QE and growth aren’t being articulated clearly, if it all. Yet at the same time, IHS’ Howard Archer is already predicting QE4 for May.
Source: Creative Commons/mtsofan
What the bank faces then is a PR challenge (as well as the frankly odd problem that they may run out of govt bonds to buy). If they believe QE4 is needed, then they’ve got 3 months to convince a sceptical media and public why it’s needed – expect Mervyn King’s quarterly inflation report next week to begin that process.
In the meantime, hats off to Stephanie Flanders last night for managing to explain what QE actually is and does – that may well be a first
SKY’S SOCIAL MEDIA COMMANDMENTS…
Thou shalt not repost non-company tweets
Thou shalt not re-tweet rival journalist or people on Twitter
Thou shalt not tweet someone else’ beat other than your own
Thou shalt pass breaking news lines to the news desk before posting them on social media networks…
The Guardian reported that the greater powers at the broadcast station stamped down their feet, and banned journalists from reposting tweets not relating to the company. Contentious guidelines even include the warning to Sky News employees not to retweet rival reporters.
The latest development raises once again, the debate on ownership of Twitter accounts, corporate or otherwise and how a brand can be represented and equally, mis-represented on social media through its employees.
The interesting question here is whether the guidelines will be applied to other parts of News Corp’s network, and more importantly Murdoch’s own account.
NEWSNIGHT DE-BRIEF…On Wednesday, members of the FPS team attended a Gorkana event with Newsnight’s deputy editor Shaminder Nahal and planning producer Samantha McAlister to hear how the show is put together and what the team are looking for when it comes to content and guests.
For those of you with a Gorkana PR log-in, there’s a detailed summary of the event here.
Looking through our notes from the event, a number of points jump out:
- The show has an average audience of 800,000 but this can jump significantly in a big news week. For example, at the height of the phone hacking scandal, 1.7 million people were tuning in
- Those involved in the production of the show, are incredibly passionate about their work
- Jeremy Paxman is apparently a joy to work with, although perhaps unsurprisingly, he is very challenging and demands a lot from those he works with
Source: Creative Commons/Ric_James
It’s a trend we have noted before, but was one that was reiterated at the event – business and economics news has become “sexy”. Newsnight’s producers are always on the lookout for people from the City who can explain the world of finance and its wider importance to the viewer.
The show’s producers left us with the thought that Newsnight is an opportunity to set the record straight or to put across a new or important view to the nation’s opinion formers. It’s not for everyone, but for those willing to take on a challenge, there are a few more prominent slots.
On the subject of setting the record straight and BBC flagships… The embattled chief executive of RBS, Stephen Hester, addressed his critics this week and the interview is a must listen.
GOOD WEEK/BAD WEEK…Credit where credit’s due, Ed Miliband has had a very good week. To be precise, Ed Miliband had an excellent PMQs. Yes, David Cameron had a very bad PMQs. His aggressive, impatient responses to Miliband’s patient line of questioning confirmed the accuracy of his likeness to Flashman ‘literature’s most famous bully’. Public bullies don’t tend to make popular Prime Minister’s. Just look at what happened to Gordon Brown:
Miliband on the other had a bit of an open goal when it came to the NHS. Even the influential ConHome has urged Cameron to #dropthebill, so to speak. The softly, softly approach worked well for Miliband though and importantly, his line of inquiry on the NHS was consistent. Cameron’s increasing frustration at having to give the same weak lines and limp backing to his struggling Health Secretary, amplified Miliband’s taunt of ‘calm down dear.’ It was typical of the bad luck Mili E has suffered with broadcasters that the news of Harry Redknapp’s court case emerged at the same time as PMQs, therefore minimising the impact of this little victory. Cameron’s an incredibly savvy dispatch box performer and will be increasingly wise to it, but if Miliband can continue to draw out Flashman Cameron he may enjoy more success in the opinion polls.
MORE BAD NEWS…Headlines have been dominated by the arrest and trial of ‘rogue’ trader Kweku Adoboli who is accused of unauthorised trading which cost his employer – Swiss bank UBS – about £1.5bn. However, a potentially more interesting story that has come to light in recent days is the sheer scale international investigation into manipulation of Libor – the interest rate used for inter-bank lending. Regulators in Japan, the UK, the US and Europe have been investigating the scheme since at least March 2011, and have now implicated employees at a number of major financial institutions. Analysts had long been suspicious that financial institutions were covering up the size of their borrowing costs during the depths of the financial crisis in 2008.
The American Securities and Exchange Commission has fined British medical equipment Smith & Nephew $22m for bribing Greek doctors to use its products over the course of a decade. The case follows a similar investigation into Johnson & Johnson last year which led to the company agreeing to pay $77m for bribes it had paid in Greece, Poland, and Romania.
The increase in intranational prosecutions and international regulatory collaboration has also highlighted differing standards about what constitutes corporate crime. Many American investors were surprised at the British Financial Service’s Authority decision to fine hedge fund manager David Einhorn for insider trading because his actions would not have been considered unlawful in the US. British authorities generally cast a much wider net when investigating white-collar crime but are perceived to have a miserable record when it comes to prosecutions. By contrast, their American counterparts have a narrower definition but pursue cases with vigour, even if that means crossing international boundaries to do so.
It seems likely that more cases of this nature will emerge in the coming months, especially if Eurozone crisis continues to destabilise international markets.