kinshipdigital.com http://www.kinshipdigital.com/_blog/Blog/post/false-joke-tweet-cost-lost-investors-25-billion-rba-bloomberg/#.UdZrijtmi-0 KINSHIP digital The joke tweet tha t cost i nves t ors $25 billion Friday, July 05, 2013 . posted by W alter Adams on The Reserve Bank of Australia announces changes to of f ic ial interest rates o n the f irst Tuesday of each month, and then debriefs journalists and analysts the next day. On Jul y 3 an anal yst tweeted a comment f rom a business lunc h where the Go vernor of RBA was explai ning their deci sio n. This tweet s ent the Australian currency and sto ck markets into freefall, costing stock market investors alone $26 billion dollars and cost ing sellers o f the Australian Dollar roughly $1 bi llion. The tragedy orperhap s farce was that later the RBA clari f ied that t he RBA Governor's comment was meant as a low- key " joke". T he sharemarket and t he A UD recovered a day laterin respo nse t o t he RBA conf irming the comm ent was not meant to be taken serious ly , but perhaps some investors lost bo th ways? The joke t weet t hat cost investors billion s T he reaction o n the currency market was instant , and reportedly f rom outside Australia. So who was listening? L et's examine SocGen’s Kit Juckes' twitter account f or clues. Wh o was listenin g t o Ki t Juckes' Twitt er?
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7/28/2019 The Joke Tweet That Cost Investors $25 Billion
That's probably more than enough potential reach to set in train the trading activity we witnessed against
the AUD. Foreign investo rs would want to exchange their currency f unds and stock investments bef ore the
AUD fell f urther. We can also deduce that these f ollowers know when to listen out f or Kit 's
"announcements".
They know when to listen for Kit's tweets
Although we commented that Kit's account had t he prof ile of a "broadcas ter" we can also take a deeper
dive to discover when in fact people do interact and engage with his messages by commenting or re-
tweeting. This analysis shows that this engagement happens on Tuesdays and Wednesdays, notcoincidentally the days o n which the Reserve Bank of Australia respectively announces it's rate decisions
and then explains them.
We can see the period on Tuesday mornings, and then Wednesday mornings and af ternoons is when
people engage most with Kit's information and that gives us a clue that they are probably listening for his
commentary on the RBA rate decisions at those t imes.
This helps explain how the reaction to the $25b Tweet was so fast.
Summary of the tweet which cost ASX invest ors $25b
The analysis shows us that although Kit Juckes is not a financial tweep celebrity or superstar with
hundreds of thousands of f ollowers that he was able to create a massive reaction because:
1. He has enough reach to t ouch a signif icant number of people;
2. He has some very Authoritative of f sho re followers with very large audiences (although they is less