These are stories Report on Business is following Thursday, April 4, 2013.
40 years on ...
Yesterday marked the 40th anniversary of the first cellphone call. Today highlights just how far we’ve come.
First, the history.
It was on April 3, 1973, that Martin Cooper of Motorola made the first-ever call from a mobile device, a rather big one at that.
As in, it wouldn’t fit in your pocket.
History records that Mr. Cooper called one Joel Engel of Bell Systems from 6 Avenue in New York City, on a DynaTAC phone.
Now, of course, we have the iPhone, the BlackBerry, phones powered by Google Inc.’s Android system, and a host of others.
What’s notable today is that Facebook Inc. is going a step further, beyond what’s now known as the smartphone, with something designed for even greater social interaction and new ways of doing stuff.
Here’s what The New York Times says of today’s expected unveiling by Facebook: “It needs to find a way to play a bigger role in delivering what consumers want from their phones: ways to communicate, find answers to questions, shop and be entertained.”
According to reports, Mark Zuckerberg’s social network will showcase an adapted HTC device that uses Android, and on the home screen highlights Facebook and everything you can do with it, with instant access to your “friends.” Oh, yes, and boost advertising.
- Facebook poised to reveal 'new home on Android'
- Strategy Lab: A new Facebook smartphone? Investors should hope not
BoJ unveils measures
The new team at the Bank of Japan today went well beyond what markets had expected, with aggressive measures aimed at bringing the country out of its economic funk.
At its first meeting under Governor Haruhiko Kuroda, the central bank announced plans to double its purchases of government bonds and other securities to some ¥7-trillion a month, equivalent to about $75-billion.
“There was some concern that Kuroda would disappoint markets after talking up “bold” measures, but that wasn’t the case with today’s announcement more aggressive than anticipated,” said senior economist Benjamin Reitzes of BMO Nesbitt Burns.
There are other measures, as well, as the Bank of Japan tries to end deflation and reach its new inflation target of 2 per cent.
“Japan’s economy has stopped weakening and has shown some signs of picking up,” the central bank said in its announcement.
“With regard to the outlook, it is expected to return to a moderate recovery path against the background of firm domestic demand and a pick-up in growth rates of overseas economies,” it added in its statement.
“On the price front, the year-on-year rate of change in the CPI (all items less fresh food) has recently been slightly negative, but some indicators suggest a rise in inflation expectations.”
White the Bank of Japan ramped up today, the European Central Bank and the Bank of England held the line.
- Brian Milner's Economy Lab: Bank of Japan chief shows how radical he plans to be
- Bank of Japan launches aggressive move to revive economy
- ECB 'ready to act' on rates as economy languishes
Royal Bank of Canada gave Lululemon – sorry, I couldn’t resist – the bum’s rush today in the wake of its embarrassing see-through pants fiasco and the departure of its chief product officer.
As The Globe and Mail’s Marina Strauss reports, Lululemon announced late yesterday that CPO Sheree Waterson will leave the company in mid-April, though it didn’t say why, other than the move is part of a broader plan.
In a separate announcement, the Vancouver-based yoga pants maker also said that the material used in the pants in question was at “the low end of Lululemon’s tolerance scale.”
Already, the company has had to recall many of the pants because of their transparency, in what it expects will cost $67-million (U.S.) in revenue this year.
“We are committed to continually developing best-in-class fabrics, and are committed to only putting product in our stores that meets our stringent standards,” said chief executive officer Christine Day.
RBC today downgraded the stock to “sector perform” and “outperform,” and cut its price target on the shares to $70 from $80.
“We believe Lululemon represents a unique and compelling growth story in the apparel retail space,” said RBC analyst Howard Tubin.
“However, the recent departure of the chief product officer has added a new element of uncertainty to the story,” he said, adding that “based on the lead times involved with the product development cycle, we may not see the impact of new design leadership until midway through 2014.”
Streetwise (for subscribers)
- OSC hesitant to adopt social media for corporate disclosure
- BMO, TD lead the deal makers in sluggish quarter
- How various professions have bounced back from the recession
- Canadian consumers will feel the pain of Ottawa's tariff hikes
- Bank of Japan chief shows how radical he plans to be
ROB Insight (for subscribers)
- U.S. jobless claims data cast shadow over labour market
- SNC-Lavalin to replace chairman, three other directors
- Wireless carriers sound alarm over Ottawa's spectrum transfer plan
- Audits improving but more 'professional skepticism' neeed: Watchdog
- Housing prices higher in most Canadian markets in early 2013: report
- Outgoing Yellow Media CEO to get $4.3-million payout