Dropbox Gains 175M Users, Challenges ICloud

Jul 10, 2013 8:10am

Morning Business Memo…

Tech firm Dropbox says it now has more than 175 million customers, who use it to store videos, photos and other files. Dropbox’s Sync API for iOS and Android makes it easier for smartphone and tablet owners to use Dropbox for file storage. The goal – a major challenge to iCloud – is to put all users’ data on a single cloud platform. “Sync is the new save,” says Dropbox CEO Drew Houston. His aim is to sharply reduce the need for hard drives.

The CEO of Blackberry admits the rollout of the company’s new line of smart phones was flawed. Thorsten Heins, at Blackberry’s annual meeting, says the company is still in the early days of its transformation.  The company’s share price plunged in the days after BlackBerry said that it had shipped just 2.7 million of the new phones – far short of analyst expectations. Heins told investors “our transformation is ongoing, and it is in no way easy.”

Two giant financial firms – AIG and GE Capital – have been labeled potential threats to the financial system by federal regulators. Both firms would be the first to be designated “systemically important.” As a result, they must increase their cushion against losses, limit their use of borrowed money and submit to inspections by examiners. The companies did not challenge the designation. A third company, which was not named, was granted a hearing on its status. AIG received a $182 billion taxpayer-funded bailout during the financial crisis, the largest for a single company. It has since repaid the bailout. The government offered to insure up to $139 billion of GE Capital’s debt during the crisis.

China says imports and exports both fell abruptly in June. The statistics are a new sign of weakness in the world’s second-largest economy. The government reported exports shrank by 3.1 percent compared with a year earlier and imports contracted by 0.7 percent. Both were below private sector forecasts of low single-digit growth. China’s economic growth fell in the first quarter of this year and is expected to slow further due to weak global demand for its exports and an effort by the Chinese central bank to cool a credit boom.

Stocks are on a winning streak with four days of gains in a row. The small stocks index the Russell 2000 closed at a record high. Other averages have made back nearly all of last month’s losses. The Dow rose 75 points yesterday. Stock futures are down this morning – the market is cautious about the release of minutes from the Federal reserve.

Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesabc

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