07/09/2011 World Business Report


07/09/2011

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Those are the latest headlines. Now the latest financial news with

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World Business Report. These are the headlines: Carol

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Bartz, the boss of Yahoo, is fired by the board. Shares jump in after-

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hours trade. After the bail-out, the legal

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challenge facing Germany regarded its contribution to the eurozone

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rescue. -- regarding.

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The boss of the internet firm dr who has been ousted. Carol Bartz

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has been replaced by the chief financial officer. -- internet firm

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Yahoo. She said she was fired over the phone. She joined the firm in

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January of 2009, replacing the founder. Under her tenure, the

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company has slashed costs and organised a partnership with

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Microsoft. But investors have not been happy with her performance.

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Shares dropped by 22% this year. Carol Bartz was fired by telephone?

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Yes. Even in the harsh world of corporate America, this was a

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pretty tough way to go. It is a symbol of how rocky her tenure at

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Yahoo has been ever since she joined the firm into baths to nine.

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Many investors have questioned whether she was the right person to

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lead the company. -- the firm in 2009. Even though she was known as

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a tough-talking executive, in the end it was not enough. The problem

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is that you are who cannot decide what kind of company it wants to

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be? -- Yahoo. It is a brand that still has a lot of traction, lot of

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people use the website. But there is concern it is falling behind

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rivals like Facebook. It has not got a strategy for the future. Many

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people say that if you look at Carol Bartz and her track record,

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she is a very good business leader. She has done cost-cutting very well.

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But she failed to develop a strategy to lead the company

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forward. That is why you are seeing events unfold as they are.

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Saturday, we saw the Microsoft partnership did not work. Other

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attended partnerships were marred by personal difficulties? Yes. Some

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of her success has brought down costs but some of her failings, one

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of them in particular, was the mismanagement of the relationship

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with China's equivalent of Amazon. Yahoo is the largest stake colder

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or investors in that company. It is known as the Crown Jewel in many

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respects for Yahoo. A very lucrative deal. And yet she did not

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get on with the management there. That has been very detrimental to

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the company. Another issue was the deal with Microsoft not turning out

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to be as lucrative as many hoped. So now the company is looking in

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another direction. But when they made this announcement, it is clear

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they have not yet found a replacement for Ms Carol Bartz.

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you think it may be sold completely to another company? There is plenty

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of speculation. Even where it was being led by the co-founder of

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Yahoo, he handed over the reins of power to Carol Bartz after a

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botched merger with Microsoft. So even before she joined the company,

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there was talk about whether it Yahoo should partner with another

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firm. Speculation has begun on whether or not in fact the fact

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they have not got somebody lined up, perhaps this could suggest there is

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a deal on the cards with another firm or another business altogether.

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I am sure we will hear more about this in the days ahead. But there

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is little reaction from investors. That is why we saw the share price

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rise in extended hours trading. Thank you.

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A top court in Germany will rule later today whether the government

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acted lawfully in bailing out crisis-hit eurozone nations. It has

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some 200 million euros in loans. It is feared the courts may rule and

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make it harder for future financial crises. Last July, this group of

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men argued to the constitutional court that Germany's government

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went beyond its powers when it made emergency loans to Greece, Ireland

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and Portugal. It is thought the judges may rule that when dealing

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with future crises, turn the's parliament should have a greater

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role. But this prospect worries the financial markets. Markets are

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already anxious about slow-moving processors. They say there is a

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lack of political leadership. It will probably cause more at market

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anxiety and volatility in markets. Germany's leaders have sunk many

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millions of euros to bail out, particularly Greece. They wonder

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whether the single currency will still be worth it in the future.

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Germany runs a trade surplus with its eurozone neighbours. Especially

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for high-value items like prestige cars. Before the introduction of

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the euro, neighbouring countries would have been able to depreciate

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their currencies to make their produce more competitive. Now they

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cannot. Many economists think Germany has earned an extra 100

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billion euros a year because of the fixed exchange rate regime. Even if

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the pure benefits to the single currency project of Germany having

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to dig into its pockets are less than before, there is still a net

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benefit to be had from a German funded rescue plan. So should the

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European currency union become what Germans call a trans the union?

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Where wealth is passed from rich countries to poor? It will be

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debated at the end of the year when Germans can vote on the creation of

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the parliament bail-out fund. Europe is planning tough new rules

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in the energy industry. An announcement is expected later say.

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It is thought it may include a plan for the European Commission to have

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a seat at the table when European Cup -- governments negotiate energy

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deals so they can stop countries like Russia paying off member

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states against each other. Draft proposals indicate they want to

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negotiate energy deals on behalf of the EU as a whole. It will also

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push for deeper relations between the EU and Russia and the Ukraine

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to avoid a repeat of the 2009 gas supply disruptions. Reports also

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suggest that already Italy and Greece have indicated they are

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happy with the suggestions. Joining us is the analyst for an energy

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group. Good to see you. Is this really about energy security or is

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it about the EU pushing for more control? Potentially about both.

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The EU obviously Harrow it -- has an energy security issue. But at

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the same time, many governments will see this as a move for

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political control that they may not be in favour of. Negotiations can

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be complex. Surely individual countries will not want to share

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sensitive information? Individual countries will not want to share

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that commercial in that -- information. We have seen the

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potential speculation surrounding Libya this morning. That may be a

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case. That some governments may be concerned of the EU control in that

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area. The fact is, there are occasions where national

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governments may have different agendas to the EU as a whole. That

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is part of the reason for this proposal. A will it improve energy

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security? Already we have seen the beginnings of a controversy between

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the Ukraine and Russia? There were major issues at the beginning of

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two that a denial. But the conflict at the centre of that relationship

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is that which the Ukraine has. It has to be realistic. There are

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alternative sources available but it will take time to develop those.

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Should be you not, instead of looking at energy security, should

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it look at how to generate energy from within the EU in terms of

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renewables, for example? You are right. Germany, for example,

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is pushing on for a fifth of its renewable energy. But there will

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also be a heavy reliance on natural gas and particular for the medium

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term. One of the hopes that the EU has is that countries such as

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Poland can develop a conventional reserves like Shield gas to start

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generating more of the fossil fuels from within there.

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Thank you. That is the business. Stay with us

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as the newspaper review is coming Mauny is now from the UK. Questions

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are raised about the cost of the government's national citizens'

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service. -- more news now from the The summer is coming to an end.

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These teenagers are heading off in different directions. As the first

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16-year-olds to be involved in the service, they have had to volunteer

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their time to help their community. We cemented the ball back together

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and swept all of the parks and we padded everything. -- the wall.

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Everybody has been focusing on the pictures of youths destroying their

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cities. David Cameron insists the service is one of the answers to

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prevent this kind of violence. Teamwork, discipline, duty and

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decency. They may sound old- fashioned but they are part of the

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solution for this modern -- modern problem of alienated an angry young

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people. The report was one of the places where rioting took place. It

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is starting to feel the effects of cuts. While the government put

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money into the scheme, they have lost their council funding.

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Children have been coming to this school for years. And the

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volunteers who run it are angry that they are having to fight for

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survival when �1,200 was spent on each of the teenagers who did

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citizens' service this summer. amount of money they will spend on

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20 young people doing the citizenship would keep our club

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running for 12 months. The Prime Minister insists this year marks

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the start of the national citizens' service. But two things will decide

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to whether the long-term sees the idea sink or swim.

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This is BBC News. The headlines: The whereabouts of Colonel Gaddafi

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remains a mystery. A convoy of heavily armed vehicles left to

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Libya, travelling south, but officials say there is no sign of

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him or his sons. The US State Department says it is

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key for Libya to take appropriate steps. We have strongly urged the

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officials to detain those members of the regime who may be subject to

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prosecution to ensure that they confiscate any weapons that are

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found. Fresh allegations about the

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circumstances surrounding the release of the Lockerbie Bomber.

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The former Libyan Foreign Minister says al-Megrahi's release was

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connected to a big contract for the oil company BP.

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The Arab League is -- has delayed a visit to Syria to express concern

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