Bloomberg News Pays Reporters More If They Move Markets

from the financial-meltdown dept

It's become quite common to pay online writers more if their stories cause surges in traffic for the site. It has recently emerged that Bloomberg News has taken this idea much further, as reported by Business Insider:

Bloomberg News has an unusual practice of paying some of its reporters explicitly for publishing "market-moving" stories.



We asked Bloomberg about the practice. A company spokesperson acknowledged it.

"It isn't news unless it's true. At Bloomberg News, the most important news is actionable. That means we strive to be first to report surprises in markets that change behavior and we put a premium on reporting that reveals the biggest changes in relative value across all assets."
The Business Insider post points out a danger of this approach:
Most of the people we spoke to, especially traders, were startled to hear about this practice, worrying that it might create an incentive for Bloomberg reporters to "push" or stretch stories with the specific aim of moving markets.
There's also the risk that an extremely volatile situation could go into meltdown as market movements are amplified by Bloomberg writers reporting on the effects of their previous stories, leading to a kind of journalistic positive feedback loop. This wouldn't be so problematic were it not for the fact that these movements can result in major losses and gains for some of the participants. It's easy to imagine companies or even some countries being massively affected by this, which raises the question whether it is ethical for Bloomberg News to encourage such risky behavior by its journalists.

Follow me @glynmoody on Twitter or identi.ca, and +glynmoody on Google+

Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: journalism, markets, moving markets
Companies: bloomberg


Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. identicon
    Anonymous Coward, 19 Dec 2013 @ 12:42am

    CHECK, CHECK, and CHECK!

    Loves money?
    Loves to lie?
    Morale free attitude?

    Where can I apply?

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Insider Shop - Show Your Support!

Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.