Posts Tagged ‘Twitter’

Journalists Using TwitterI’m what you would classify as a Twitter observer – I look but I don’t touch. In response to my inactivity, I’m frequently told by digital experts “use it or lose it,” but I like my omnipresent view of the Twittersphere. It comes in handy to quickly ascertain the score of a game or the cause of train delays.

In the vein of self improvement, I’ve been asking myself what more could I do on Twitter? One obvious answer is engaging with journalists. Which lead me to my next questions – how do journalists use Twitter?

With the help of my colleague Cary Ruterman, I conducted an unscientific, but telling, audit of reporters’ social media habits. We spoke with journalists from print, online, broadcast and wire outlets and all of them focused on finance (that is kind of what we are known for here at Prosek).

Here is what we asked and found...

How do you use Twitter (professionally, for your reporting)?
All our respondents utilize it in almost in the same way: to monitor news, to connect with sources and to see what the industry and competitors alike are "talking about."

That seems like a lot to rely on Twitter for. How does it really impact you reporting?
Almost all reporters audited consider Twitter to be a key, daily source for reporting with one describing Twitter an “essential resource.” One reluctant reporter admitted that “it is becoming more useful to a degree.”

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Social Media Log-InCollege seniors around the country breathed a collective sigh of relief last week when the U.S. Senate decided not to advance the new Cyber Intelligence Sharing and Protection Act, also known as CISPA.  A new clause in the bill recently passed by the U.S. House of Representatives would have allowed businesses and the U.S. Government full access to individuals’ personal social media pages as a way to crackdown on cybercrime.

While this particular version of the bill is now considered dead, legislators are re-writing a similar version that could be more protective of citizen privacy.  But if and when a version of this does get passed, professionals nationwide have some serious self-reflection to do.

For many, professional accomplishments are often prioritized ahead of other life goals such as when to start a family or at what age to retire.  So just imagine what will become of us if one of the few places we truly express our personality, our personal social media pages, can now be considered an extension of one’s resume.  Will we be forced to permanently keep our personal pages business-casual?

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The Week Unpeeled

Government leaders, thought leaders and media scribes have been busy convening a lot lately with US presidents in Texas making an appearance for the opening of the George Bush library (with US media commenting how Hillary Clinton looked so presidential herself); the World Bank and IMF finishing its round of huddles (amid talk of less austerity more growth); White House correspondents red-carpeting annual dinner in Washington (boycotted by Tom Brokaw who says it’s more about celebrity than news, and President Obama saying he will be opening the Blame Bush Library soon), and the Milken Global Conference kicking off this week in Beverly Hills.

Elsewhere, less convening, more real headlines:

  • Boston marathon alleged bomber search found evidence of plans for a second attack in Times Square;
  • Washington is confronting allegations that Syria appears to have used chemical weapons, which Obama said would “change his calculus” but many seem unsure what that really means;
  • The AP Twitter account was hacked with a Tweet of White House terrorist attack, briefing sending markets sharply lower;
  • Koch brothers of libertarian bent made headlines in their exploratory bid for a group of newspapers that include The Chicago Tribune and The Los Angeles Times;
  • Apple increased its return of cash to shareholders by $55 billion to about $100 billion over three years;
  • The UK economy narrowly missed a third recessionary dip with slight signs of growth;
  • Nasdaq OMX is expected to pay $10 million to US regulators for botched Facebook listing (separately $62 million expected to go to brokers); and
  • The Dow ended the week slightly higher at 14,703. End of Story
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Image courtesy: The Wall Street Journal

Image courtesy: The Wall Street Journal

And there it was.  In the blink of an eye, 145 points on the Dow were wiped off the map.  While certainly not as large as the Flash-Crash of 2010, which saw glitches in exchange-trading software punish markets by several hundreds of points, yesterday’s market dip following a fake tweet posted by someone who hacked into the Associated Press Twitter account was, appropriately, a tweet-sized re-enactment.  It also showed the increased influence of social media on financial markets.

On the heels of last week’s events surrounding the Boston Marathon tragedy and the White House ricin scare, a hacker broke into the Associated Press’ Twitter handle yesterday and tweeted “Breaking: Two Explosions in the White House and Barack Obama is injured.” Markets instantly plummeted until the tweet was reported to be false a few minutes later.  The hacker would later identify itself as a member of the Syrian Electronic Army which, according to The Wall Street Journal, has targeted other media outlets in the past.

Because of how strongly social media is proving to impact financial markets, legislators are scrambling to gain more control over these situations.  Revisions are being made to the Cyber Intelligence Sharing and Protection Act (CISPA) that, if passed, would allow employers to access personal social media pages to ensure laws such as Regulation FD are not being compromised by interactions with friends or other social media contacts.

This raises several points:  first, there is the lingering issue of automated trading.  Part of the reason the market crashed so quickly following the hacked AP tweet was due to automated trading machines which scan social media sites for major news and place trades accordingly.  While tying up less human capital by using electronic trading is efficient, the system in place is proving to be anything but, evidenced by the failure of these machines to assess the credibility of yesterday’s fake tweet.

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SEC & Social Media

Let’s not get too excited just yet over the SEC’s decision to allow public companies to utilize social media as a primary source for disclosure, provided they disclose to investors which platforms they intend to employ.

While I join many others and readily agree that social media will become an increasingly important and prominent part of disclosure, the SEC’s half response to a slew of recent high-profile social media disclosure test cases, e.g. Netflix, is actually a step back for Reg FD.

Remember, Reg FD was created to provide a level playing field so that all investors, ranging from small retail to large institutions (and everyone in between) would be provided information simultaneously and through a platform that was readily accessible to all.

My concern for the SEC’s announcement yesterday resides with what constitutes accessible platforms. When Reg FD first came about, the approved disclosure platforms were fairly obvious: press releases, national newspapers, broadcast television, radio, etc., and the burgeoning Internet, which over time has increasingly been given prominence, especially in 2008 when corporate websites were deemed to constitute disclosure.

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