THE NEWS WRAP: Fortescue Metals’ Andrew Forrest steps down as chief executive

Andrew Forrest, the billionaire founder of Fortescue Metals Group, is to step down as chief executive of the company and will become chairman.

Forrest, who was recently judged by BRW to have a personal wealth of $6.18 billion, said that he wants to devote more time to philanthropic work such as Aboriginal employment initiatives. He will be succeeded by Nev Power, who moves from chief operating officer to CEO.

Swan blames floods for GDP slip

Treasurer Wayne Swan has blamed the Queensland floods and Cyclone Yasi for Australia’s sharpest GDP drop in 20 years, but Shadow Treasurer Joe Hockey said that Labor needs to rein in “reckless spending” to bolster the economy.

Swan said that the 1.2% contraction in the last quarter was heavily influenced by natural disasters, with the coal, transport and tourism sectors badly hit. However, Hockey attacked the Government for its spending levels, again lambasting the proposed introduction of a carbon price.

40% of world’s population online by 2015: Cisco

The number of internet-connected devices in the world is set to explode to 15 billion within four years, according tech giant Cisco.

It predicts that by 2015, one million minutes of video will be watched online every second. In total, 40% of the world’s population will be online by then, according to Cisco.

Overnight

The Dow Jones Industrial Average slipped by 279.04 points to 12,290.37. The Australian dollar rose to 107.51.