Watchdog fines Bloomberg for erroneous report
Hungarian financial regulator PSzÁF on Thursday said it fined business news service Bloomberg HUF 10 million for an error that affected exchange rates shortly before a central bank rate decision. PSzÁF said the report constituted undue market influence. Bloomberg published a report minutes before the announcement of a rate decision by the National Bank of Hungary on April 23 that the central bank's Monetary Council had cut the base rate by 400bp to 1%. The report was corrected in about 40 seconds, in line with Bloomberg's internal rules. Although it acknowledged the news item was published because of a technical error, PSzÁF cited Bloomberg for failing to use a control mechanism that may have prevented the mistake. The forint weakened sharply from under 300 to the euro to around 302.9 after Bloomberg published the report. It recovered to firm to around 298.8 after the Monetary Council said it decided to cut the central bank's key rate by 25bp to 4.75%. Bloomberg said earlier that it took immediate steps to correct the error as well as to prevent any repeat of such a mistake.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.