Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

These are stories Report on Business is following Wednesday, June 27, 2012.

Follow Michael Babad and the Globe's top business stories on Twitter.

Apple's billions
It's fascinating to look at how far the iPhone has come in just five years.

Story continues below advertisement

Apple Inc. celebrates the five-year anniversary of the launch of the popular smartphone Friday, prompting a look today by Strategy Analytics at what the iPhone means to the seemingly unstoppable technology giant, and where it goes from here amid heightened competition.

Since it launched in the United States June 29, 2007, iPhone models have brought in $150-billion (U.S.) in revenue around the world, the Boston-based research firm said. That's 250 million devices shipped.

"The iPhone portfolio has become a huge generator of cash and profit for Apple," said Neil Mawston, the executive director of Strategy Analytics.

"A quarter of a billion iPhones have been shipped cumulatively worldwide in the first five years since launch and Apple reaches its fifth birthday at the top of its game," he added.

"However, there are emerging signs that the iPhone's next five years could get tougher. Some mobile operators are becoming concerned about the high level of subsidies they spend on the iPhone, while Samsung is expanding its popular Galaxy portfolio and providing Apple with more credible competition."

The report comes amid an escalating battle between Apple and Samsung Electronics Co. Only yesterday, Apple secured a court ruling that halts sales in the U.S. of Samsung's Galaxy Tab 10.1 tablet.

The two companies are fighting over tablet design, and Samsung has pledged to fight on.

Story continues below advertisement

It's worth noting, too, that Apple will celebrate the iPhone's birthday one day after Research In Motion Ltd. reports what is expected to be an operating loss for its latest quarter.

Barclays settles Libor probe
Barclays PLC is settling a probe over the setting of Libor, a benchmark rate banks charge when they lend to other banks.

Barclays announced today that it will pay a total £290-million, or $454-million (U.S.), to settle with Britain's Financial Services Authority, and, in the United States, the Commodity Futures Trading Commission and the Department of Justice. Its CEO and other top executives are also giving up their bonuses.

The bank said it has "received credit" for its co-operation, and has put in place new controls. In the U.S., it was given "conditional leniency," as well, from the Justice Department's antitrust unit.

The settlement is part of an industry-wide probe that has caught up several financial institutions, and Barclays was notably humbled in its statement today.

"The events which gave rise to today's resolutions relate to past actions which fell well short of the standards to which Barclays aspires in the conduct of its business," said chief executive officer Bob Diamond.

Story continues below advertisement

"When we identified those issues, we took prompt action to fix them and co-operated extensively and proactively with the authorities. Nothing is more important to me than having a strong culture at Barclays; I am sorry that some people acted in a manner not consistent with our culture and values."

There has been a sweeping probe over allegations the rate was manipulated.

MDA in huge deal
Shares of MacDonald, Dettwiler and Associates Ltd. surged today after the Canadian company struck an $875-million (U.S.) deal for the satellite manufacturing business of Loral.

In announcing the deal for Space Systems/Loral late yesterday, MDA chief executive officer Daniel Friedmann heralded the acquisition as "game changing" for the company.

"With one move, we are bringing together two market leaders to create a unique global communications and information company with a strong commercial focus," he sad. "Post-acquisition, more than two-thirds of MDA's total revenues will come from the commercial market."

MDA will boast annual revenue of $1.9-billion (Canadian) after the deal, he added.

Story continues below advertisement

House prices rise 1.1 per cent
Home prices in Canada climbed 1.1 per cent in May from April, reaching a new high for the second consecutive month, according to the Teranet-National Bank home price index released today.

For the first time in 11 months, not one of the 11 markets measured declined, said senior economist Marc Pinsonneault of National Bank, noting that prices tend to rise in May and June.

Prices climbed 2 per cent in Calgary, and 1.4 per cent in Toronto and Edmonton. Price gains were lower in other centres: 1.1 per cent for Vancouver, 1 per cent for Winnipeg and Hamilton, 0.6 per cent for Ottawa and Montreal, and 0.4 per cent for Quebec City and Halifax. The Victoria market was flat.

On an annual basis, prices were up 4.8 per cent, marking the sixth straight month of slowing growth.

"Since prices rose 1.2 per cent or more in each month from last May through last July, further deceleration is possible over the next two months," Mr. Pinsonneault said.

"The only market in which 12-month inflation has followed the national composite in decelerating for six straight months is Vancouver."

Story continues below advertisement

Summit hopes fade
European summits have come and gone since the crisis erupted more than two years ago, with little accomplished and bumps in the markets from time to time.

This time, though, observers fear the failure of tomorrow's gathering in Brussels could have a more marked impact.

The leaders of the EU will meet for two days to discuss the crisis, and new proposals, but Germany continues, as recently as today, to oppose certain moves.

"In a way, it would be hard to lower expectations any further, since we have been here many times before, but there is a sense that this time the fallout from any apparent lack of progress will be severe," analyst Chris Beauchamp of IG Index said today, referring to the meeting.

"The fundamental sticking point remains the fact that Germany refuses to pick up the bill for everyone else."

German Chancellor Angela Merkel reportedly added to the fiery mix with comments to her coalition partners yesterday that she won't go for the idea of a euro bond for "as long as I live."

Story continues below advertisement

Glencore, Xstrata rush to save deal

Glencore International PLC and Xstrata PLC are working feverishly today to try to save their $30-billion (U.S.) merger, a deal hanging by a threat amid opposition from a major Xstrata shareholder.

As The Globe and Mail's Paul Waldie writes in today's Report on Business, Qatar's sovereign wealth fund wants better terms on the proposed merger. Given that it owns 11 per cent of the mining giant, it's in a strong position.

Glencore is bidding 2.8 of its own shares for each share of Xstrata, and the Qatar fund is looking for the companies to boost that to 3.25.

Glencore said today that Xstrata's board is proposing some changes, but they're in the area of management pay and it's far from clear where things go from this point.

Goldcorp wins court fight
Goldcorp Inc. has won a court battle against larger rival Barrick Gold Corp. over ownership of the El Morro copper-and-gold deposit in Chile, a potentially massive deposit that could become a mine as early as 2017 and keep running for nearly 20 years, The Globe and Mail's Pav Jordan reports.

The ruling, by Ontario Court Justice Herman Wilton-Siegel, may end a protracted dispute between Canada's two largest gold miners, and comes at a time when the industry is finding it harder and harder to find new deposits of significant size and in friendly jurisdictions.

El Morro could hold more than three times the amount of gold that Goldcorp produced last year.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies