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Those are the latest headlines. Now the latest financial news with | :00:02. | :00:12. | |
:00:12. | :00:16. | ||
World Business Report. These are the headlines: Carol | :00:16. | :00:22. | |
Bartz, the boss of Yahoo, is fired by the board. Shares jump in after- | :00:22. | :00:26. | |
hours trade. After the bail-out, the legal | :00:26. | :00:32. | |
challenge facing Germany regarded its contribution to the eurozone | :00:32. | :00:38. | |
rescue. -- regarding. | :00:38. | :00:42. | |
The boss of the internet firm dr who has been ousted. Carol Bartz | :00:42. | :00:50. | |
has been replaced by the chief financial officer. -- internet firm | :00:50. | :00:57. | |
Yahoo. She said she was fired over the phone. She joined the firm in | :00:57. | :01:02. | |
January of 2009, replacing the founder. Under her tenure, the | :01:02. | :01:06. | |
company has slashed costs and organised a partnership with | :01:06. | :01:10. | |
Microsoft. But investors have not been happy with her performance. | :01:10. | :01:20. | |
:01:20. | :01:22. | ||
Shares dropped by 22% this year. Carol Bartz was fired by telephone? | :01:22. | :01:26. | |
Yes. Even in the harsh world of corporate America, this was a | :01:26. | :01:32. | |
pretty tough way to go. It is a symbol of how rocky her tenure at | :01:32. | :01:37. | |
Yahoo has been ever since she joined the firm into baths to nine. | :01:37. | :01:41. | |
Many investors have questioned whether she was the right person to | :01:41. | :01:48. | |
lead the company. -- the firm in 2009. Even though she was known as | :01:49. | :01:54. | |
a tough-talking executive, in the end it was not enough. The problem | :01:54. | :01:57. | |
is that you are who cannot decide what kind of company it wants to | :01:57. | :02:05. | |
be? -- Yahoo. It is a brand that still has a lot of traction, lot of | :02:05. | :02:10. | |
people use the website. But there is concern it is falling behind | :02:10. | :02:18. | |
rivals like Facebook. It has not got a strategy for the future. Many | :02:18. | :02:22. | |
people say that if you look at Carol Bartz and her track record, | :02:22. | :02:29. | |
she is a very good business leader. She has done cost-cutting very well. | :02:29. | :02:34. | |
But she failed to develop a strategy to lead the company | :02:34. | :02:40. | |
forward. That is why you are seeing events unfold as they are. | :02:40. | :02:48. | |
Saturday, we saw the Microsoft partnership did not work. Other | :02:48. | :02:53. | |
attended partnerships were marred by personal difficulties? Yes. Some | :02:53. | :02:59. | |
of her success has brought down costs but some of her failings, one | :02:59. | :03:03. | |
of them in particular, was the mismanagement of the relationship | :03:03. | :03:09. | |
with China's equivalent of Amazon. Yahoo is the largest stake colder | :03:09. | :03:16. | |
or investors in that company. It is known as the Crown Jewel in many | :03:16. | :03:20. | |
respects for Yahoo. A very lucrative deal. And yet she did not | :03:20. | :03:25. | |
get on with the management there. That has been very detrimental to | :03:25. | :03:28. | |
the company. Another issue was the deal with Microsoft not turning out | :03:28. | :03:33. | |
to be as lucrative as many hoped. So now the company is looking in | :03:33. | :03:37. | |
another direction. But when they made this announcement, it is clear | :03:37. | :03:46. | |
they have not yet found a replacement for Ms Carol Bartz. | :03:46. | :03:50. | |
you think it may be sold completely to another company? There is plenty | :03:50. | :03:57. | |
of speculation. Even where it was being led by the co-founder of | :03:57. | :04:01. | |
Yahoo, he handed over the reins of power to Carol Bartz after a | :04:01. | :04:07. | |
botched merger with Microsoft. So even before she joined the company, | :04:07. | :04:11. | |
there was talk about whether it Yahoo should partner with another | :04:11. | :04:15. | |
firm. Speculation has begun on whether or not in fact the fact | :04:15. | :04:20. | |
they have not got somebody lined up, perhaps this could suggest there is | :04:20. | :04:26. | |
a deal on the cards with another firm or another business altogether. | :04:26. | :04:32. | |
I am sure we will hear more about this in the days ahead. But there | :04:32. | :04:37. | |
is little reaction from investors. That is why we saw the share price | :04:37. | :04:43. | |
rise in extended hours trading. Thank you. | :04:43. | :04:46. | |
A top court in Germany will rule later today whether the government | :04:46. | :04:54. | |
acted lawfully in bailing out crisis-hit eurozone nations. It has | :04:54. | :05:01. | |
some 200 million euros in loans. It is feared the courts may rule and | :05:01. | :05:10. | |
make it harder for future financial crises. Last July, this group of | :05:10. | :05:16. | |
men argued to the constitutional court that Germany's government | :05:16. | :05:20. | |
went beyond its powers when it made emergency loans to Greece, Ireland | :05:20. | :05:23. | |
and Portugal. It is thought the judges may rule that when dealing | :05:24. | :05:28. | |
with future crises, turn the's parliament should have a greater | :05:28. | :05:32. | |
role. But this prospect worries the financial markets. Markets are | :05:32. | :05:37. | |
already anxious about slow-moving processors. They say there is a | :05:37. | :05:44. | |
lack of political leadership. It will probably cause more at market | :05:44. | :05:53. | |
anxiety and volatility in markets. Germany's leaders have sunk many | :05:53. | :05:58. | |
millions of euros to bail out, particularly Greece. They wonder | :05:58. | :06:02. | |
whether the single currency will still be worth it in the future. | :06:02. | :06:07. | |
Germany runs a trade surplus with its eurozone neighbours. Especially | :06:07. | :06:12. | |
for high-value items like prestige cars. Before the introduction of | :06:12. | :06:15. | |
the euro, neighbouring countries would have been able to depreciate | :06:15. | :06:20. | |
their currencies to make their produce more competitive. Now they | :06:20. | :06:25. | |
cannot. Many economists think Germany has earned an extra 100 | :06:25. | :06:30. | |
billion euros a year because of the fixed exchange rate regime. Even if | :06:30. | :06:36. | |
the pure benefits to the single currency project of Germany having | :06:36. | :06:40. | |
to dig into its pockets are less than before, there is still a net | :06:40. | :06:50. | |
:06:50. | :06:50. | ||
benefit to be had from a German funded rescue plan. So should the | :06:51. | :06:55. | |
European currency union become what Germans call a trans the union? | :06:56. | :06:59. | |
Where wealth is passed from rich countries to poor? It will be | :06:59. | :07:03. | |
debated at the end of the year when Germans can vote on the creation of | :07:03. | :07:09. | |
the parliament bail-out fund. Europe is planning tough new rules | :07:09. | :07:14. | |
in the energy industry. An announcement is expected later say. | :07:14. | :07:17. | |
It is thought it may include a plan for the European Commission to have | :07:17. | :07:21. | |
a seat at the table when European Cup -- governments negotiate energy | :07:21. | :07:24. | |
deals so they can stop countries like Russia paying off member | :07:24. | :07:29. | |
states against each other. Draft proposals indicate they want to | :07:29. | :07:33. | |
negotiate energy deals on behalf of the EU as a whole. It will also | :07:33. | :07:37. | |
push for deeper relations between the EU and Russia and the Ukraine | :07:37. | :07:43. | |
to avoid a repeat of the 2009 gas supply disruptions. Reports also | :07:43. | :07:46. | |
suggest that already Italy and Greece have indicated they are | :07:46. | :07:53. | |
happy with the suggestions. Joining us is the analyst for an energy | :07:53. | :07:57. | |
group. Good to see you. Is this really about energy security or is | :07:57. | :08:02. | |
it about the EU pushing for more control? Potentially about both. | :08:02. | :08:07. | |
The EU obviously Harrow it -- has an energy security issue. But at | :08:07. | :08:13. | |
the same time, many governments will see this as a move for | :08:13. | :08:17. | |
political control that they may not be in favour of. Negotiations can | :08:17. | :08:21. | |
be complex. Surely individual countries will not want to share | :08:21. | :08:28. | |
sensitive information? Individual countries will not want to share | :08:28. | :08:32. | |
that commercial in that -- information. We have seen the | :08:32. | :08:36. | |
potential speculation surrounding Libya this morning. That may be a | :08:36. | :08:40. | |
case. That some governments may be concerned of the EU control in that | :08:40. | :08:44. | |
area. The fact is, there are occasions where national | :08:44. | :08:48. | |
governments may have different agendas to the EU as a whole. That | :08:48. | :08:52. | |
is part of the reason for this proposal. A will it improve energy | :08:52. | :09:02. | |
security? Already we have seen the beginnings of a controversy between | :09:02. | :09:06. | |
the Ukraine and Russia? There were major issues at the beginning of | :09:06. | :09:15. | |
two that a denial. But the conflict at the centre of that relationship | :09:15. | :09:24. | |
is that which the Ukraine has. It has to be realistic. There are | :09:24. | :09:28. | |
alternative sources available but it will take time to develop those. | :09:29. | :09:33. | |
Should be you not, instead of looking at energy security, should | :09:33. | :09:39. | |
it look at how to generate energy from within the EU in terms of | :09:39. | :09:44. | |
renewables, for example? You are right. Germany, for example, | :09:44. | :09:53. | |
is pushing on for a fifth of its renewable energy. But there will | :09:53. | :09:58. | |
also be a heavy reliance on natural gas and particular for the medium | :09:58. | :10:04. | |
term. One of the hopes that the EU has is that countries such as | :10:04. | :10:08. | |
Poland can develop a conventional reserves like Shield gas to start | :10:08. | :10:11. | |
generating more of the fossil fuels from within there. | :10:11. | :10:17. | |
Thank you. That is the business. Stay with us | :10:17. | :10:27. | |
:10:27. | :10:31. | ||
as the newspaper review is coming Mauny is now from the UK. Questions | :10:31. | :10:35. | |
are raised about the cost of the government's national citizens' | :10:35. | :10:45. | |
:10:45. | :10:50. | ||
service. -- more news now from the The summer is coming to an end. | :10:50. | :10:57. | |
These teenagers are heading off in different directions. As the first | :10:57. | :11:00. | |
16-year-olds to be involved in the service, they have had to volunteer | :11:00. | :11:05. | |
their time to help their community. We cemented the ball back together | :11:05. | :11:11. | |
and swept all of the parks and we padded everything. -- the wall. | :11:11. | :11:17. | |
Everybody has been focusing on the pictures of youths destroying their | :11:17. | :11:19. | |
cities. David Cameron insists the service is one of the answers to | :11:19. | :11:25. | |
prevent this kind of violence. Teamwork, discipline, duty and | :11:25. | :11:29. | |
decency. They may sound old- fashioned but they are part of the | :11:29. | :11:33. | |
solution for this modern -- modern problem of alienated an angry young | :11:33. | :11:38. | |
people. The report was one of the places where rioting took place. It | :11:38. | :11:42. | |
is starting to feel the effects of cuts. While the government put | :11:42. | :11:48. | |
money into the scheme, they have lost their council funding. | :11:48. | :11:52. | |
Children have been coming to this school for years. And the | :11:52. | :11:56. | |
volunteers who run it are angry that they are having to fight for | :11:56. | :11:59. | |
survival when �1,200 was spent on each of the teenagers who did | :11:59. | :12:04. | |
citizens' service this summer. amount of money they will spend on | :12:04. | :12:08. | |
20 young people doing the citizenship would keep our club | :12:08. | :12:12. | |
running for 12 months. The Prime Minister insists this year marks | :12:12. | :12:19. | |
the start of the national citizens' service. But two things will decide | :12:19. | :12:29. | |
:12:29. | :12:39. | ||
to whether the long-term sees the idea sink or swim. | :12:39. | :12:44. | |
This is BBC News. The headlines: The whereabouts of Colonel Gaddafi | :12:44. | :12:48. | |
remains a mystery. A convoy of heavily armed vehicles left to | :12:48. | :12:51. | |
Libya, travelling south, but officials say there is no sign of | :12:51. | :12:58. | |
him or his sons. The US State Department says it is | :12:58. | :13:07. | |
key for Libya to take appropriate steps. We have strongly urged the | :13:07. | :13:13. | |
officials to detain those members of the regime who may be subject to | :13:13. | :13:18. | |
prosecution to ensure that they confiscate any weapons that are | :13:18. | :13:20. | |
found. Fresh allegations about the | :13:20. | :13:23. | |
circumstances surrounding the release of the Lockerbie Bomber. | :13:23. | :13:27. | |
The former Libyan Foreign Minister says al-Megrahi's release was | :13:27. | :13:32. | |
connected to a big contract for the oil company BP. | :13:32. | :13:36. | |
The Arab League is -- has delayed a visit to Syria to express concern | :13:36. | :13:41. |