4.1 How the media treat financial matters Flashcards
What is the argument for and against the media’s relationship with the financial system?
- Media reporting may damage confidence in providers by highlighting their faults
- It safeguards financial stability by pointing out weaknesses and information the public
What is included in broadcast media?
- Television
- Radio
What is included in print media?
- Newspapers
- Journals
How can people form a balanced opinion?
By gathering various perspectives through different medias
The stance that a media source will take will depend on what?
- Political, economic or social agenda
- Characteristics of its target audience
Who is the financial press aimed at?
The financially literate and industry practitioners
Features of the financial press:
- Factual
- Presents facts supported by data and makes predictions about consequences
- Conservative (does not question underlying financial model)
- Considers overall impact rather than how individuals may be affected
Examples of the broadsheet press:
- The Times
- The Telegraph
Features of the broadsheet press:
- In-depth coverage with a serious tone
- Has a political agenda
What are the two types of financial articles by the broadsheet press?
- Macroeconomic reporting of company results, share prices and industrial news
- Personal finance articles aimed at people earning higher incomes
What type of stories to the middle-market press run?
Stories that are shorter and less technical than those of the financials and the broadsheets, but longer, more complex and less sensational than those of the red-top tabloids
Examples of the middle-market press:
- Daily Mail
- Daily Express
Why are the tabloid press referred to as ‘red-tops’?
Because of their red title logos
Examples of red-tops:
- The Sun
- Daily Mirror
Features of red-tops:
- Stories are short, use a chatty writing style
- Conservative in their views but have been waging media war over high salaries and bonuses paid to top bankers (known as ‘fat cats’)
Hierarchy amongst newspapers in terms of the level of financial literacy that they expect of their readership:
- Financial press
- Broadsheet press
- Middle-market press
- Tabloid press
What did the Financial Times’ story about rivalry between UBS and Credit Suisse look at?
The different experiences of the two banks during the financial crisis and possibilities for their future
Examples of finance magazines:
- Moneywise
- Money Observer
Example of a financial magazine that has a free website:
MoneyWeek
Examples of 24-hour news channels for particular countries:
- Al Jazeera in Qatar
- CNN in the USA
How does BBC Radio 4 describe itself?
As a ‘speech-based news, current affairs and factual network’
Radio 4 features Money Box which does what?
Offers advice on a wide range of personal finance issues
Advantage of blogging:
You can respond to views expressed and so enter a discussion
Think tank definition
A specialist body set up to think about and report on issues within a chosen area
What is the Resolution Foundation?
A think tank that aims to ‘improve the living standards of those in Britain on low and middle incomes’
Who is the Resolution Foundation funded by?
The Resolution Trust and is supported by:
- Barrow Cadbury Trust
- Nationwide Foundation
- Thames Valley Housing
- Unbound Philanthropy
The Centre for Social Justice’s report ‘Maxed out: Serious personal debt in Britain’ has found out what?
- Average UK household has debts of £54,000
- Poorest 10% of households have average debts equal to four times their annual income and average monthly debt repayments are almost half of their gross monthly salary
