Breaking a story that moves the market is among several factors considered in bonuses for reporters at Bloomberg News. On Wednesday, Julia La Roche reported on the story for Business Insider.
La Roche writes that the practice isn’t used at other news outlets, and that most people in the industry hadn’t heard of it.
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. Traders react instantly to headlines and news stories, and the decisions they make often make or lose significant amounts of money.
La Roche quotes an unnamed person familiar with the Bloomberg incentives as saying that the concerns are overblown.