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International Business News
Yahoo CEO steps down
AlT, San Francisco
Yahoo co-founder lorry Yang, who earned the ire of many share holders for rejecting a 47-billion dollar takeover offer from Microsoft, is stepping down as chief executive of the Internet company.
The Sunnyvale. California firm announced on Monday that Yang. 40, who took over as chief executive just over a year ago. would remain in the post until a replacement could be found by the board of directors.
"Jerry and the Board have had an ongoing dialogue about succession timing, anil we all agree that now is the right time to make the transition to a new CEO who can take the company to the next level." Yahoo chairman Roy Bostock said.
"We are deeply grateful to Jerry for his many coatribu tions as CEO over the past 18 months, and we are pleased that he plans to stay actively involved at Yahoo as a key executive and member of the Board, " he added in a statement.
Yahoo said Yang, who founded the popular Web portal in 1995 at the age of 26 with Stanford University classmate David Filo and became a billionaire when it went public the next year, would remain in a strategic role at the company.
Yang said it was time to turn Yahoo, whose share price has plunged during die past year, over to a new leader.
India sees growth rising to 9pc
AFP, New Delhi
India insisted Tuesday its economy would rebound next year from the global financial crisis, saying it expected to return to robust growth of nine percent.
"What's required now is confidence, courage and taking the steps necessary to compensate for the ill-effects of a world slowdown," Finance Minister Palaniappan Chidambaram told an international businessmeeting.
"We'll bounce back... we'll be back to a high growth rate (of nine percent) in the second half of die financial year 2009/10," he told the annual India World Economic Forum attended by 700 delegates from India and around the world.
However, observers were skeptical, suggesting he was talking up the growth prospects of Asia's third-largest economy with the Congress-led government facing general elections by May 2009.
There's an unwillingness to admit reality," Percy Mistry, chairman of Oxford International Finance, told AFP adding he did not expect any upturn until early 2011.
He's being a cheerleader for the economy, " said a US fund manager who did not wish to be named.
Chidambaram said the lowest official forecast for growth in Asia's third-largest economy was seven percent for the year to March 2009 -- over three times forecast world expansion -- which was not "an occasion for wearing sack cloth and ashes.”
Ford to sell stake in Mazda
AFP, Tokyo
Embattled US carmaker Ford said Tuesday it will sell a 20 percent stake in its Japanese partner Mazda for 540 million dollars to raise cash.
Ford said it would continue a strategic alliance with Japan's fifth largest motor manufacturer after reducing its stake from 33.4 percent to about 13 percent.
Mazda said it would replace its chief executive and president Hisakazu Imaki, who warned business was rapidly deteriorating.
"The financial crisis drastically changed the environment," Imaki said.
Two directors sent to Mazda from Ford will leave, although the US giant will remain the largest shareholder and keep one seat on the Japanese group's board of directors, with Philip Spender staying on as an executive vice president.
"This agreement allows Ford to raise capital that will help fund our product-led transformation," Ford chief executive Alan Mulally said.
Mazda said it would spend up to 17.9 billion yen (185 million dollars) to buy back 6.87 percent of its shares on the market.
Wolseley to axe 2,300 jobs
AFP, London
Wolseley, the world's biggest distributor of plumbing and heating products, said on Tuesday it planned to cut more than 2,300 jobs, mainly in Britain but also in the Nordic region, as its profits slump.
Wolseley had already axed 5,000 jobs, mainly in the United States, during the three months to October 31, the group's first quarter.
"Given the growing impact of the recent turmoil in the financial markets on the broader world economy and the construction industry, the group expects the markets in which it operates to continue to deteriorate," the British company said in a trading update.
It added: "For the three months ended 31 October 2008, (he group's results continued to be affected by the unprecedented events in the financial markets and their wide ranging impact on the housing market and consumersentiment."
"Actions initiated in (the) first quarter have resulted in combined exceptional restructuring charges of 163 million pounds (194 million euros, 245 million dollars), annualised savings of 134 million pounds and headcount reductions of around 5,000.