Fur flies over Macquarie analyst coverage
February 2, 2010
Dear Mayne Reporters,
make sure you check out today's edition of Crikey because it is all happening in the battle over Macquarie Group and responsible reporting of analyst commentary in today's unprecedented financial environment.
The Australian has been running a vicious campaign against Macquarie ever since the bank sued it for defamation in 2006 and for the past three days the paper has been recklessly fear mongering about its financial strength.
I gave the paper this spray on Crikey yesterday and Crikey proprietor Eric Beecher delivered this critique on Business Spectator.
The Australian hit back on page three today with this attack on Crikey, but then exacerbated the situation with the following parapraph in its page one splash today:
Macquarie Group shares plunged by 23% to a 5 and a half year low on fears about its ability to refinance billions of dollars in debt, with analysts at JP Morgan saying the slump shows the investment bank is "irrevocably broken".
That has now been changed to the following in the online version of the story:
Shares in the diversified investment bank plunged 22 per cent to $26.05. The selling was exacerbated by a report from JP Morgan's banking analyst Brian Johnson who said the shareprice direction indicated the Macquarie model was broken.
Check out Johnson's report for yourself here. I took The Australian to task on ABC radio in Sydney this morning. Listen to the interview with Deborah Cameron here.
There will be more to come on all of this later today but it will be very interesting to read The Weekend Australian tomorrow which should include the following points:
* Bryan Johnston has completely rejected The Australian's interpretation of his report, which actually said the stock represented "compelling value" with a price target of $71.58. He went even further on Lateline Business with Greg Hoy last night.
* The Australian is yet to report that ASIC interviewed the banking analyst who reporter Adele Ferguson relied upon to produce her original misleading report on Wednesday.
* The Australian has an obvious motive to try and damage Macquarie given the bank is continuing to sue it for defamation over the Beaconsfield Gold coverage.
Even the likes of Citi released a report this morning which opened up as follows:
We believe inaccurate perceptions over Macquarie Group's capital and funding positions have moved its share price sharply lower this week. As per our recent research, we view Macquarie Group's balance sheet as solid, its funding position favourable, its capital position comfortable and refinancing risk manageable.
Charlie Aitken from Southern Cross Equities also let fly as you can see here.
And with the stock recovering more than 50% in morning trade, surely The Australian owes Macquarie a prominent and favourable page one story tomorrow to make up the disgraceful efforts of the past three days, including today's story in the business section, which was headlined: "Macquarie irrevocably broken: analyst". This has now been changed in the online version to "Macquarie mauled as hedge funds attack".
That's all for now.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.
make sure you check out today's edition of Crikey because it is all happening in the battle over Macquarie Group and responsible reporting of analyst commentary in today's unprecedented financial environment.
The Australian has been running a vicious campaign against Macquarie ever since the bank sued it for defamation in 2006 and for the past three days the paper has been recklessly fear mongering about its financial strength.
I gave the paper this spray on Crikey yesterday and Crikey proprietor Eric Beecher delivered this critique on Business Spectator.
The Australian hit back on page three today with this attack on Crikey, but then exacerbated the situation with the following parapraph in its page one splash today:
Macquarie Group shares plunged by 23% to a 5 and a half year low on fears about its ability to refinance billions of dollars in debt, with analysts at JP Morgan saying the slump shows the investment bank is "irrevocably broken".
That has now been changed to the following in the online version of the story:
Shares in the diversified investment bank plunged 22 per cent to $26.05. The selling was exacerbated by a report from JP Morgan's banking analyst Brian Johnson who said the shareprice direction indicated the Macquarie model was broken.
Check out Johnson's report for yourself here. I took The Australian to task on ABC radio in Sydney this morning. Listen to the interview with Deborah Cameron here.
There will be more to come on all of this later today but it will be very interesting to read The Weekend Australian tomorrow which should include the following points:
* Bryan Johnston has completely rejected The Australian's interpretation of his report, which actually said the stock represented "compelling value" with a price target of $71.58. He went even further on Lateline Business with Greg Hoy last night.
* The Australian is yet to report that ASIC interviewed the banking analyst who reporter Adele Ferguson relied upon to produce her original misleading report on Wednesday.
* The Australian has an obvious motive to try and damage Macquarie given the bank is continuing to sue it for defamation over the Beaconsfield Gold coverage.
Even the likes of Citi released a report this morning which opened up as follows:
We believe inaccurate perceptions over Macquarie Group's capital and funding positions have moved its share price sharply lower this week. As per our recent research, we view Macquarie Group's balance sheet as solid, its funding position favourable, its capital position comfortable and refinancing risk manageable.
Charlie Aitken from Southern Cross Equities also let fly as you can see here.
And with the stock recovering more than 50% in morning trade, surely The Australian owes Macquarie a prominent and favourable page one story tomorrow to make up the disgraceful efforts of the past three days, including today's story in the business section, which was headlined: "Macquarie irrevocably broken: analyst". This has now been changed in the online version to "Macquarie mauled as hedge funds attack".
That's all for now.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.