THE NEWS WRAP: Amazon looking at launching Kindle smartphone

Amazon is believed to be gearing up to release a smartphone in the second half of this year, according to reports in the Wall Street Journal.

The tech and online retail giant is believed to have demonstrated prototype handsets to developers in recent weeks, with an official announcement planned by the end of June ahead of a September launch.

A key feature of the new device is said to be a 3D screen that doesn’t require special glasses, a feature the company hopes will differentiate its device from competitors, including Apple and Samsung.

No dotcom crash despite stock falls, say US analysts

Leading analysts in the US say another ‘90s-style tech crash is not likely, despite recent falls on the tech-heavy Nasdaq index.

“What I’m looking for is really more or less a re-alignment in a somewhat orderly fashion,” BMO Private Bank chief investment officer Jack Ablin says.

“A new appreciation for dividends, for cash flow, for earnings and for revenues – things that investors should be looking for all the time.

“Investors are starting to move away from markets that seem expensive and are gravitating toward markets that have a better value so, all and all, I think it’s probably a cathartic cycle that’s going on right now.”

Smaller David Jones stores coming after SA Woolworths takeover

South African department store operator Woolworths Holdings says it is looking at introducing smaller format David Jones stores if its takeover of the Australian department store chain is successful.

Last week, the South African Woolworths, which is not affiliated with the Australian retailer of the same name, surprised investors by announcing a $2.15 billion takeover bid for David Jones.

“I think we see three obvious [sites] within the next couple of years. I believe we can get to double digits in time – but it’s going to take time,” Woolworths Holdings chief executive Ian Moir said.

“What we will not do as a business is make bad real estate decisions. So you need to make sure you have got the right demographic and the right position within that demographic.”

Overnight

The Dow Jones Industrial Average is down to 16026.8. The Aussie dollar is down to US93.97 cents.