These are stories Report on Business is following Tuesday, Oct. 29, 2013.
BBM takes off
BlackBerry Ltd. says the launch of its free BBM app for iPhones and Android devices has brought in 20 million new active users of the popular chat service.
It was just a week ago that the embattled smartphone maker resumed the rollout of the app, having hit a snag earlier. In the first 24 hours alone, it boasted 10 million downloads.
"BBM has now ended its first week with more than 80 million monthly active users, including over 20 million new users on Android and iPhone devices," the Canadian company said in a statement.
"During its first week, BBM was the top free overall app in 35 countries in Google Play and in 107 countries in the App Store, and continues to maintain a strong position in key markets such as Canada, the U.S. the U.K., Indonesia and much of the Middle East, to name a few."
Some BBM hopefuls had waited hours to get the service in a "virtual line-up" that backed up for the equivalent of miles, but BlackBerry said today that line-up is over.
That the BBM message service is a hit is clear. Not clear to some observers, however, is the money it will bring to BlackBerry, which is the midst of an auction for all or part of the company.
Canada's Fairfax Financial Holdings Ltd. has struck a tentative deal to lead a consortium that would acquire BlackBerry for $4.7-billion (U.S.), or $9 a share, and has until next week to complete its due diligence.
Other potential suitors are also interested, including BlackBerry co-founders Mike Lazaridis and Doug Fregin, and former Apple Inc. chief John Sculley.
- Complete coverage of BlackBerry
- Molly's back on BBM: Why BlackBerry's 'forbidden fruit' is such a hit
- Explainer: How does the wildly popular BBM differ from regular text messaging?
- Sean Silcoff: 'Incredible demand' for BlackBerry's BBM service
- Sean Silcoff, Jacquie McNish and Steve Ladurantaye: An exclusive report on the fall of BlackBerry
- Boyd Erman in Streetwise (for subscribers): BlackBerry's noisy auction: The unspoken truth
- How BlackBerry lost World War Z
Banks face probe
At least two big banks are targets of a probe into possible manipulation of currency markets, while a third has settled a case over a key interest rate.
Both UBS and Deutsche Bank said today they are co-operating with investigations into trading in foreign exchange markets.
“UBS and other financial institutions have received requests from various authorities relating to their foreign exchange businesses, and UBS is co-operating with the authorities,” Switzerland’s largest bank said in its quarterly earnings report, citing several regulatory bodies around the world, including those in the United States and Britain.
“We have taken and will take appropriate action with respect to certain personnel as a result of our review, which is ongoing,” the bank added.
It disclosed neither what action it has taken nor the other banks that may be involved.
Separately, however, Deutsche Bank said in its earnings report that it, too, has been asked for information and that it is co-operating.
“Following an initial media report in June 2013 of widespread irregularities in the foreign exchange markets, we immediately commenced an internal review of our foreign exchange business,” UBS said.
“Since then, various authorities reportedly have commenced investigations concerning possible manipulation of foreign exchange markets.”
Earlier this month, the Swiss Financial Market Supervisory Authority said it had launched an investigation into several institutions, though gave no details. Britain’s Financial Conduct Authority is also investigating possibly currency market manipulations.
No allegations have been proven.
While no regulator has provided details, the investigations follow reports by Bloomberg News that have centred on what is known as a “fix,” which pegs the value of a currency at a certain time of day, and is used as a benchmark.
One of the major fixes is that by WM/Reuters. The Bank of Canada, for example, also has a noon fix.
The currency market probe comes alongside a scandal involving manipulation of a key interest rate known as Libor.
Today, Dutch bank Rabobank agreed to settle a case by paying more than $1-billion (U.S.), while its chief executive officer, Piet Moerland, quit.
Sears quits stores
Sears Canada Inc. is quitting its flagship outlet in Toronto, along with four others, raising questions about its turnaround, The Globe and Mail’s Marina Strauss reports today.
Quitting the store at Toronto’s Eaton Centre will also set the stage for the entry into Canada next year of Nordstrom Inc., which wants that site.
Sears said today it has struck a deal with landlords to sell back five leases.
Streetwise (for subscribers)
ROB Insight (for subscribers)