Yahoo! Inc. has reached a compromise with billionaire investor Carl Icahn that will avoid the full scale battle over control of the company that was expected at the 1 August shareholders meeting.┬á  The agreement means the Yahoo! board will expand to eleven members, to accommodate Icahn himself and two from the alternative slate of nominees he had initially set up to challenge the existing board. One member of the current nine member board, Robert Kotick, has decided to stand down.┬á┬á Icahn had threatened to unseat the board after Yahoo!

Second quarter net profits at IBM are up 22 percent, partly as a result of the ailing economy and the weakness of the US dollar.  ┬á Total revenues for the quarter ending 30 June 2008 increased 12.8 percent to $26.8 billion from the second quarter of 2007, although the company said this would be only six percent after currency adjustments. Net income was $2.77 billion, up 22.3 percent from $2.26 billion a year ago.┬á┬á ÔÇ£IBM had an outstanding quarter and a strong first half for 2008.

Johnson Controls today reported record sales and earnings for the third quarter, with profits rising 11 percent following a surge in sales at its building efficiency division.  ┬á Sales for the quarter ended June 30, 2008 increased to $9.9 billion, up 11 percent from $8.9 billion for the third quarter of 2007.

There are mixed emotions in the automotive industry today as German automaker Volkswagen announces a new factory in Tennessee, and General Motors launches a cost cutting plan involving the loss of thousands of jobs.  ┬á VW has opted for a site in Chattanooga, Tennessee in preference to possible locations in Alabama and Michigan. The plant is expected to be worth $1 billion to the local economy. "This project will have a significant impact on the economy of Tennessee and the region for decades to come," said Tennessee Governor Phil Bredesen.

Diversified industrial manufacturer Eaton Corp has announced a 35 percent rise in second quarter earnings, after sales were boosted by acquisitions, but has reduced its full year forecast due to the impact of higher oil prices in several markets.  ┬á The Cleveland-based company said net income rose to $333 million ($2.03 a share) from $246 million ($1.64 a share) a year earlier. Sales gained 32 percent to $4.28 billion over the same quarter last year. ┬á┬á Net income in both periods included charges for integration of acquisitions.

The board of Budweiser brewer Anheuser-Busch has accepted a $52 billion takeover offer from Belgium-based InBev, in a deal that will create the world's largest beer maker. The combined company will be called Anheuser-Busch InBev.   ┬á Some US politicians had expressed anger at the prospect of a foreign takeover of the most popular beer in the United States, but InBev, best known for its Stella Artois brand, has said that Budweiser's headquarters will remain in St Louis, Missouri, and none of Anheuser's US breweries will be closed.

The US financial system could be in for its biggest shake-up since the Great Depression, after comments made by two of the most powerful figures in the United States economy.  ┬á Federal Reserve chairman Ben Bernanke and US Treasury Secretary Henry Paulson addressed a Congressional panel on "Systematic Risk and Financial Markets" Thursday to argue a case for a new system of regulation.┬á┬á The idea that markets are best left alone has been the financial creed behind the US economy for decades, but the near collapse of investment bank Bear Stearns and the continuing credi

The US government has decided to reopen bidding for a $40 billion contract to supply the US Air Force with refueling tankers, after Boeing complained about the original award of the contract to Northrop Grumman and its European partner.   ┬á The contract to build 179 refueling tankers over 15 years was awarded on February 29 to Los Angeles-based Northrop Grumman and its partner, EADS North America, a subsidiary of European Aeronautic Defence and Space Co., the parent of Airbus.┬á┬á The decision has proved extremely controversial, however.

Blue jean icon Levi Strauss has reported that its second quarter profits have plummeted 98 percent as a result of weak consumer spending in the US and the cost of new software which has also disrupted supplies.  Announcing its financial results for the second quarter ended May 25, 2008, yesterday, Levi Strauss declared net income of $1 million, compared to $46 million in the same quarter last year.┬á┬á The company blamed the weak US economy and costs related to rolling out new ERP (enterprise resource planning) software that caused shipping delays and dented US sales.

NBC Universal, with private equity investment partners Bain Capital and Blackstone Group, agreed this past weekend to buy cable network The Weather Channel, ending a long-running auction that captured interest from several major media companies. ┬á Landmark Communications Inc., owner of The Weather Channel, put the network up for sale in January, along with the popular website weather.com, and other related businesses. ┬á Initial interest was shown by CBS, Comcast, and Time Warner, the worldÔÇÖs largest media company.