A sneaker store in TokyoYURIKO NAKAO
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Japan eases monetary policy
Japan's central bank eased monetary policy at an emergency meeting Monday, seeking to contain a strong yen and mollify growing political pressure to revive a faltering economy.
The move, which disappointed investors and analysts hoping for bolder action, comes as Prime Minister Naoto Kan prepares a new set of economic stimulus measures, expected later Monday after a meeting with Bank of Japan Gov. Masaaki Shirakawa.
To boost liquidity, the central bank unveiled a new six-month low-interest loan program to financial institutions. Combined with an existing three-month funds-supplying operation worth ¥20-trillion ($236.4-billion), banks will now have access to a total of ¥30-trillion ($355-billion).
The 8-1 decision by the central bank's policy board was accompanied by an unanimous vote to keep its key interest rate at a super-low 0.1 per cent.
Magna wins, pension plans lose
Magna International's proposed billion-dollar buyout of founder Frank Stonach's controlling shares can go ahead, a three-member panel of Ontario judges ruled Monday, dismissing an appeal from some of the country's largest pension funds.
The ruling comes just a day before the deal's Aug. 31 deadline, when Mr. Stronach could pull out of the agreement.
The Canada Pension Plan Investment Board (CPPIB) and other major pension funds have waged a campaign against the buyout plan, saying it sets an expensive precedent for other controlling shareholders in companies with dual-class share structures. They also argue the deal is unfair because the main benefit for common shareholders is inherently speculative: a promised sustained boost in Magna's share price.
In an Aug. 17 decision, Mr. Justice Herman Wilton-Siegel of the Ontario Superior Court declared the transaction fair and balanced, citing the fact that Magna's common shareholders voted 75 per cent in favour. He also cited the stock market's apparent positive reaction to the plan.
Telcos ordered to share high-speed Internet
Canada's largest telecom companies must provide to resellers the same Internet speeds that they provide to their own consumers - which are often prioritized and faster, the federal regulator said Monday.
The Canadian Radio-television and Telecommunications Commission also said that telecom companies must share their advanced fibre-optic networks with resellers, who lease space on the larger companies' networks. This is a crucial regulatory decision as large companies roll out next-generation network infrastructure.
The move appears to be a blow to Canada's largest telecom carriers, like BCE Inc. and Telus Corp., which have argued that being forced to share advanced networks would put a "chill" on their investment decisions, and would perhaps slow the expansion of such networks into Canada's rural areas.
Intel back in buying mode
Intel Corp. is buying the wireless communications unit of Germany's Infineon Technologies AG for $1.4-billion in cash, the second deal in as many weeks that allows the chip maker to spread its wings beyond the struggling personal computer market.
Infineon's unit makes chips for smart phones including Apple's iPhone. Silicon Valley behemoth Intel scooped up security software maker McAfee Inc. earlier this month for $7.68-billion, marking the biggest acquisition in Intel's 42-year history.
Both deals signal a shift away from Intel's traditional market of providing chips to power personal computers. Intel's microprocessors are used in 80 percent of the world's PCs.
But the PC market is on shaky ground again after a robust comeback led by businesses making computer purchases they had resisted during the recession.
George Weston buys frozen cup cake maker
George Weston Ltd. George Weston Ltd. is sinking its teeth into frozen cupcake, doughnut and cookie maker Keystone Bakery, making a move to acquire the company for $185-million (U.S.).
Toronto-based Weston said Monday the transaction will be made through its subsidiary Maplehurst Bakeries.
Under the deal it will purchase three different operating companies in the United States, each subject to U.S. regulatory approval.
Keystone Bakeries is comprised of Freed's Bakery of Manchester, New Hampshire, a leading supplier of frozen, fully finished iced cup cakes.
It also owns Granny's Kitchens of Frankfort, N.Y., a leading supplier of pre-fried and "thaw-and-sell" doughnuts, and Heartland Baking of DuQuoin, Ill., a specialty supplier of "thaw-and-serve" cookies.
Euro zone economic sentiment rises
The European Commission says economic confidence in the 16 countries that use the euro rose to its highest level in nearly two-and-a-half years during August.
The Commission says Monday that its main economic sentiment indicator rose to 101.8 in August - its highest since March 2008 - from 101.1 in July. The main reason behind the rise was another improvement in consumer confidence as unemployment concerns eased.
The increase in sentiment will stoke hopes that economic activity in the euro zone economy is holding up pretty well despite budgetary retrenchment in countries like Greece and a loss of momentum in the U.S. and Japan.
The euro zone economy grew by a quarterly rate of 1 per cent in the second quarter.
Airline profits take off
The International Air Transport Association says 47 major carriers it monitors reported a net profit of $3.9-billion in the second quarter.
The results contrast with the $881-million net loss posted by carriers a year earlier.
Geneva-based IATA says airlines in North America and the Asia-Pacific region performed best.
Starbucks expands insta-brew, adds flavours
Starbucks Corp. is set to debut its latest caffeinated concoction - flavoured instant coffee.
The coffee giant plans to announce Monday four new, slightly sweetened varieties of its successful Via instant brew. The addition is the latest in a series of new products as Starbucks tries to find new ways to grow after years of overexpansion of its cafés.
The flavours - mocha, vanilla, caramel and cinnamon - will be sold in Starbucks stores this fall, though no date has been announced. The single-serve packets will be added to grocery store shelves early next year and will be backed by a promotional campaign backed by free samples along with television, print and online advertisements.
Launched nationwide last September, Via racked up more than $100-million in worldwide sales in the 10 months since its debut.
The packets, which dissolve in water, were initially sold in two roasts - a medium-bodied Colombia and bold Italian Roast. Since then, the company added a decaf variety and a medium-roast designed for instant iced coffee and now sells Via in four countries.
RIM gets 60 days
India says it won't ban BlackBerry services for at least 60 days, easing up on the threat leveled over access to encrypted data.
The Ministry of Home Affairs says it will "review the situation in 60 days," after telecom authorities examine Research In Motion's proposals to give security agencies greater access to corporate e-mail and instant messaging.
RIM is facing widespread concern over its strong data encryption, which is beloved by corporate customers eager to guard secrets but troublesome for some governments in the Middle East and Asia, which worry it could be used by militants to avoid detection.
Merkel condemns banker's remarks
A leading German banker whose remarks stereotyping Muslims and Jews have sparked outrage launched his new book on immigration issues Monday amid calls for his removal from the central bank's board.
Chancellor Angela Merkel says the Bundesbank should dismiss board member Thilo Sarrazin after he said that "all Jews share the same gene" and that Muslim immigrants in Europe are unwilling or incapable of integrating into western societies.
In the book, Mr. Sarrazin maintains that immigrants have taken from Germany's welfare system without contributing enough to the country.
The Jewish and Muslim communities have also condemned his remarks, which came ahead of the launch of his book, "Deutschland Schafft Sich Ab," or "Germany Abolishes Itself."
Ms. Merkel's spokesman, Steffen Seibert, renewed the chancellor's call for the Bundesbank to consider Mr. Sarrazin's future.
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