RSS
Today in business: 5 things you need to know
Investors digest Cyprus' bailout deal, BlackBerry shares sink, and more in our roundup of the business stories that are making news and driving opinion
The new BlackBerry Z10 smartphone went on sale in the U.S. on March 22.
The new BlackBerry Z10 smartphone went on sale in the U.S. on March 22. Kevork Djansezian/Getty Images

1. CYPRUS BAILOUT LIFTS STOCKS
Global stocks rose early Monday after Cyprus agreed to tough terms for a $13 billion European bailout, then gave back some of their gains as the initial euphoria faded. The deal saved Cyprus from bankruptcy — and a potentially disastrous exit from the eurozone — hours before a deadline set by the European Union. Under the rescue plan, Cyprus will shut down its second biggest bank, the largely state-owned Popular Bank of Cyprus, and shift deposits below 100,000 euros ($130,000) to the Bank of Cyprus, creating a surviving "good bank." The deal will raise $5.5 billion to cover the shuttered bank's losses and strengthen the remaining bank by forcing massive losses on deposits of more than 100,000 euros, which are uninsured. [Reuters, CNBC]
………………………………………………………………………………

2. BLACKBERRY STOCK SLIDES AFTER DOWNGRADE
BlackBerry shares fell by nearly 4 percent early Monday after Goldman Sachs cut its rating. Goldman said its outlook on the company dimmed after a disappointing launch last week for BlackBerry's Z10, a new touchscreen smartphone that executives hoped would help BlackBerry regain some of the market share it has lost in recent years to Apple's iPhone and a crowd of Android-powered devices. BlackBerry's shares had already dropped by roughly 7 percent on Friday, the day the Z10 was unveiled. Before the two-day drop, BlackBerry's stock was up by 36 percent in 2013 on expectation that a new lineup of phones would improve the company's fortunes. [Economic Times]
………………………………………………………………………………

3. YOUNGER RAJARATNAM BROTHER ARRESTED ON INSIDER TRADING CHARGES
The FBI announced Monday that it had arrested Rengan Rajaratnam on insider trading charges related to the crimes of his older brother, jailed hedge-fund tycoon Raj Rajaratnam. The younger Rajaratnam, 42, was indicted last week on charges of conspiring in schemes to trade on private information on Clearwire and Advanced Micro Devices in 2008. FBI agents escorted him on a flight from Brazil, and arrested him when he landed in New York. [Reuters]
………………………………………………………………………………

4. YAHOO BUYS TEENAGER'S MOBILE NEWS APP
Yahoo announced Monday that it had bought Summly, a mobile news aggregation app created by a British teenager, Nick D'Aloisio. Summly scans the internet for news, using an algorithm to find content users will want, then summarizes it. Yahoo reportedly paid nearly $30 million for the app, which it plans to shut down as a stand-alone service and incorporate it into Yahoo websites and apps. D'Aloisio started Summly when he was 15, and cashed in at 17. [Business Insider]
………………………………………………………………………………

5. RIVAL INVESTORS BID ON DELL
Dell shares rose by three percent early Monday after rival investors entered into a bidding war over the PC-maker. Two investment groups — one led by billionaire investor Carl Icahn, the other by Blackstone Group — appear to have topped founder and CEO Michael Dell's $13.65-a-share bid to take the company private. Blackstone is offering $14.25 a share, and Icahn says his bid is worth $15 per share — and, unlike Dell, both want to let shareholders keep their investments if they would rather not sell. Dell responded by saying he was open to the "possibility of working with third parties," and he's reportedly considering raising his own offer. [CNN]

Harold Maass is a contributing editor at TheWeek.com. He has been writing for The Week since the 2001 launch of the U.S. print edition. Harold has worked for a variety of news outlets, including The Miami HeraldFox News, and ABC News.

EDITORS' PICKS

THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER

Subscribe to the Week