In November 1989, a telephone call from Michael Bloomberg to Matthew Winkler changed the trajectory of financial journalism forever. Bloomberg, then the owner of a data terminal company, asked Winkler, a writer for The Wall Street Journal, what it would take to get into the news business. This conversation sparked the creation of Bloomberg Business News in 1990, a venture that began with just six people and a singular goal: to expand the services offered through Bloomberg Terminals. The agency was established to provide concise, timely financial news, but it quickly evolved into a global powerhouse. By 2010, Bloomberg News had grown to include more than 2,300 editors and reporters across 72 countries and 146 news bureaus worldwide. The initial goal of increasing terminal sales was met by the mid-1990s, and the company refocused its scope to rival the profitability of other media groups such as Reuters and Dow Jones. This transformation required Winkler to open a Bloomberg office in Washington, D.C., to report on political effects on the business world. The Standing Committee of Correspondents in Washington required Bloomberg News to be formally accredited to act as a legitimate news source, a title that Bloomberg Business News only accomplished after agreeing to provide free terminals to major newspapers in exchange for news space in the publications. During this growth period, Bloomberg News opened a small television station in New York, purchased New York radio station WNEW, launched fifteen-minute weekday business news programs for broadcast on PBS, and opened offices in Hong Kong and Frankfurt, Germany. The publication was renamed Bloomberg News in 1997, marking a new chapter in its history.
The China Controversy And The Cost Of Truth
In June 2012, Bloomberg News published an investigative series titled Revolution to Riches, which focused on China's political elite and delved into the family wealth of Chinese leader Xi Jinping. Before publishing the story, Bloomberg executives and senior editors met with Chinese diplomats twice, without informing the journalists working on the story. Zhang Yesui, the Chinese ambassador to the United States, reportedly threatened Bloomberg with consequences for its Chinese operations if it published the story. Bloomberg's editor-in-chief, Matthew Winkler, reportedly refused to stop the story from being published. Then-CEO Daniel Doctoroff also reportedly defended the investigation and insisted on publishing it, although he insisted on changes to soften the story's impact. After the story was published, the Chinese government ordered state enterprises not to subscribe to Bloomberg News. The company's website was also blocked on Chinese servers, and it was unable to obtain visas for journalists it wanted to send to China. The following year, Bloomberg shut down an ongoing investigation into the financial ties between a wealthy Chinese businessman and top Chinese leaders' families. Another planned article about the children of senior Chinese officials employed by foreign banks was also killed, according to Bloomberg employees. At least five journalists and editors, including the lead writer on the Xi story, left the company after news reports about the decision appeared. One of the journalists said Bloomberg had disparaged the team that worked so hard to execute an incredibly demanding story and claimed it threatened the journalists who worked on the story with legal action if they discussed the incident publicly. Bloomberg's top editors, including the senior editor on the stories, Laurie Hays, and editor-in-chief Matthew Winkler denied that the stories were killed. However, this was contradicted by several anonymous Bloomberg employees. According to one employee, Winkler had said, If we run the story, we'll be kicked out of China. Michael Bloomberg, founder of the company, also denied the accusation, but noted that he had recused himself from the company's operations as he was mayor of New York. After the incidents, Bloomberg set about trying to repair its relationship with the Chinese government. By 2015, Bloomberg's reporters began receiving visas again. Bloomberg Chairman Peter Grauer told the staff at the Bloomberg Hong Kong bureau that the company's sales team had done a heroic job of mending relations with Chinese officials who had indicated their displeasure about the publication of the Xi revelations. He also warned that if Bloomberg were to do anything like the Xi story again, the company would be straight back in the shit-box. Bloomberg was widely criticized for how it handled the controversy. Howard French, a professor of journalism, wrote that Bloomberg had tainted its corporate identity and journalism brand to a degree that could last for years.The Self-Imposed Blind Spot
In November 2019, as Michael Bloomberg announced his presidential campaign, editor-in-chief John Micklethwait ordered his staff not to investigate their boss, nor any other Democratic candidates, while investigations into Donald Trump would continue, as the government of the day. Subsequent reporting said Micklethwait was referring to a team of specialized investigative reporters, as opposed to the overall political team, but he would not elaborate or issue a public clarification despite newsroom staff wishing for him to do so. Investigative journalists and political reporters operate separately but reporting indicates this distinction would not be clear to the general public. Following Bloomberg's announcement, the Houston Chronicle dropped Bloomberg as a source for the 2020 Presidential campaign, saying that journalists should not choose targets based on their political affiliation. Former Bloomberg News DC Bureau Chief Megan Murphy also criticized the decision, saying it bars talented reporters and editors from covering massive, crucial aspects of one of the defining elections of our time and calling the decision to avoid coverage not journalism. Responding to the controversy, Michael Bloomberg told CBS News: We just have to learn to live with some things. He added that his reporters get a paycheck. But with your paycheck comes some restrictions and responsibilities. Bloomberg suspended his campaign on the 4th of March 2020, the day after Super Tuesday. This incident highlighted the inherent conflict of interest when the owner of a news organization runs for public office. The decision to limit coverage of the owner's campaign while continuing to investigate opponents raised questions about the integrity and independence of Bloomberg News. The controversy also led to a broader discussion about the role of media in political campaigns and the ethical responsibilities of news organizations. The incident served as a stark reminder of the challenges faced by news organizations when their owners are also political figures.The Hoax That Shook Markets
In 2016, Bloomberg published a news release claiming to be from Vinci SA, a French construction company, that it had discovered accounting irregularities and had to revise its earnings reports. The news release turned out to be a hoax. Vinci's stock briefly fell by 18% when Bloomberg published it, although it quickly recovered once it became clear it was not true. In 2019, France's stock markets regulator, the Autorité des marchés financiers, fined Bloomberg €5 million for publishing the report, stating that it should have known it was false. An appeals court reduced the fine to €3 million in 2021. This incident highlighted the importance of verification and due diligence in financial journalism. The hoax also raised questions about the reliability of Bloomberg's reporting and the potential consequences of publishing false information. The incident served as a cautionary tale for news organizations about the need to balance speed and accuracy in their reporting. The hoax also led to a broader discussion about the role of media in financial markets and the ethical responsibilities of news organizations. The incident served as a stark reminder of the challenges faced by news organizations when they are held accountable for the accuracy of their reporting. The hoax also led to a broader discussion about the role of media in financial markets and the ethical responsibilities of news organizations.In November 1989, a telephone call from Michael Bloomberg to Matthew Winkler changed the trajectory of financial journalism forever. Bloomberg, then the owner of a data terminal company, asked Winkler, a writer for The Wall Street Journal, what it would take to get into the news business. This conversation sparked the creation of Bloomberg Business News in 1990, a venture that began with just six people and a singular goal: to expand the services offered through Bloomberg Terminals. The agency was established to provide concise, timely financial news, but it quickly evolved into a global powerhouse. By 2010, Bloomberg News had grown to include more than 2,300 editors and reporters across 72 countries and 146 news bureaus worldwide. The initial goal of increasing terminal sales was met by the mid-1990s, and the company refocused its scope to rival the profitability of other media groups such as Reuters and Dow Jones. This transformation required Winkler to open a Bloomberg office in Washington, D.C., to report on political effects on the business world. The Standing Committee of Correspondents in Washington required Bloomberg News to be formally accredited to act as a legitimate news source, a title that Bloomberg Business News only accomplished after agreeing to provide free terminals to major newspapers in exchange for news space in the publications. During this growth period, Bloomberg News opened a small television station in New York, purchased New York radio station WNEW, launched fifteen-minute weekday business news programs for broadcast on PBS, and opened offices in Hong Kong and Frankfurt, Germany. The publication was renamed Bloomberg News in 1997, marking a new chapter in its history.
The China Controversy And The Cost Of Truth
In June 2012, Bloomberg News published an investigative series titled Revolution to Riches, which focused on China's political elite and delved into the family wealth of Chinese leader Xi Jinping. Before publishing the story, Bloomberg executives and senior editors met with Chinese diplomats twice, without informing the journalists working on the story. Zhang Yesui, the Chinese ambassador to the United States, reportedly threatened Bloomberg with consequences for its Chinese operations if it published the story. Bloomberg's editor-in-chief, Matthew Winkler, reportedly refused to stop the story from being published. Then-CEO Daniel Doctoroff also reportedly defended the investigation and insisted on publishing it, although he insisted on changes to soften the story's impact. After the story was published, the Chinese government ordered state enterprises not to subscribe to Bloomberg News. The company's website was also blocked on Chinese servers, and it was unable to obtain visas for journalists it wanted to send to China. The following year, Bloomberg shut down an ongoing investigation into the financial ties between a wealthy Chinese businessman and top Chinese leaders' families. Another planned article about the children of senior Chinese officials employed by foreign banks was also killed, according to Bloomberg employees. At least five journalists and editors, including the lead writer on the Xi story, left the company after news reports about the decision appeared. One of the journalists said Bloomberg had disparaged the team that worked so hard to execute an incredibly demanding story and claimed it threatened the journalists who worked on the story with legal action if they discussed the incident publicly. Bloomberg's top editors, including the senior editor on the stories, Laurie Hays, and editor-in-chief Matthew Winkler denied that the stories were killed. However, this was contradicted by several anonymous Bloomberg employees. According to one employee, Winkler had said, If we run the story, we'll be kicked out of China. Michael Bloomberg, founder of the company, also denied the accusation, but noted that he had recused himself from the company's operations as he was mayor of New York. After the incidents, Bloomberg set about trying to repair its relationship with the Chinese government. By 2015, Bloomberg's reporters began receiving visas again. Bloomberg Chairman Peter Grauer told the staff at the Bloomberg Hong Kong bureau that the company's sales team had done a heroic job of mending relations with Chinese officials who had indicated their displeasure about the publication of the Xi revelations. He also warned that if Bloomberg were to do anything like the Xi story again, the company would be straight back in the shit-box. Bloomberg was widely criticized for how it handled the controversy. Howard French, a professor of journalism, wrote that Bloomberg had tainted its corporate identity and journalism brand to a degree that could last for years.
The Self-Imposed Blind Spot
In November 2019, as Michael Bloomberg announced his presidential campaign, editor-in-chief John Micklethwait ordered his staff not to investigate their boss, nor any other Democratic candidates, while investigations into Donald Trump would continue, as the government of the day. Subsequent reporting said Micklethwait was referring to a team of specialized investigative reporters, as opposed to the overall political team, but he would not elaborate or issue a public clarification despite newsroom staff wishing for him to do so. Investigative journalists and political reporters operate separately but reporting indicates this distinction would not be clear to the general public. Following Bloomberg's announcement, the Houston Chronicle dropped Bloomberg as a source for the 2020 Presidential campaign, saying that journalists should not choose targets based on their political affiliation. Former Bloomberg News DC Bureau Chief Megan Murphy also criticized the decision, saying it bars talented reporters and editors from covering massive, crucial aspects of one of the defining elections of our time and calling the decision to avoid coverage not journalism. Responding to the controversy, Michael Bloomberg told CBS News: We just have to learn to live with some things. He added that his reporters get a paycheck. But with your paycheck comes some restrictions and responsibilities. Bloomberg suspended his campaign on the 4th of March 2020, the day after Super Tuesday. This incident highlighted the inherent conflict of interest when the owner of a news organization runs for public office. The decision to limit coverage of the owner's campaign while continuing to investigate opponents raised questions about the integrity and independence of Bloomberg News. The controversy also led to a broader discussion about the role of media in political campaigns and the ethical responsibilities of news organizations. The incident served as a stark reminder of the challenges faced by news organizations when their owners are also political figures.
The Hoax That Shook Markets
In 2016, Bloomberg published a news release claiming to be from Vinci SA, a French construction company, that it had discovered accounting irregularities and had to revise its earnings reports. The news release turned out to be a hoax. Vinci's stock briefly fell by 18% when Bloomberg published it, although it quickly recovered once it became clear it was not true. In 2019, France's stock markets regulator, the Autorité des marchés financiers, fined Bloomberg €5 million for publishing the report, stating that it should have known it was false. An appeals court reduced the fine to €3 million in 2021. This incident highlighted the importance of verification and due diligence in financial journalism. The hoax also raised questions about the reliability of Bloomberg's reporting and the potential consequences of publishing false information. The incident served as a cautionary tale for news organizations about the need to balance speed and accuracy in their reporting. The hoax also led to a broader discussion about the role of media in financial markets and the ethical responsibilities of news organizations. The incident served as a stark reminder of the challenges faced by news organizations when they are held accountable for the accuracy of their reporting. The hoax also led to a broader discussion about the role of media in financial markets and the ethical responsibilities of news organizations.