This decision was made to settle a proxy battle and to delay a hostile takeover from Microsoft Corporation. (NASDAQ:MSFT) Icahn is an activist investor that sought to oust all of Yahoo’s Board of Directors prior to his appointment.

Yahoo Chief Executive Officer, Jerry Yang said, “This agreement will not only allow Yahoo to put the distraction of the proxy contest behind us, it will allow the company to continue pursuing its strategy of being the starting point for Internet users and a must buy for advertisers.”

Yahoo holds their next shareholder meeting on August 1, 2008.

The whole run on the bank was precipitated by a letter from Sen. Charles Schumer (D-NY), a member of the Senate Banking Committee. In the letter he feared that “a significant move by IndyMac’s depositors to redeem their deposits could leave the firm in a disastrous financial situation.” Of course, once the contents of his letter went public, the significant move he spoke of became a reality.

The run on IndyMac has been really bad news for investors in the bank, who have lost $500,000,000 since Schumer’s letter.

There was an interesting debate on Fox concerning what action can be taken by investors against Schumer. A law suit is out of the question, since he made the statement while doing his official capacity as a Senator. No member of Congress can be sued while performing their job.

Picture of one of Alpha’s mining operations.

Alpha Natural mines metallurgical coal which is a key component in coke, a material that is used to make steel. Alpha also produces steam coal which is used to generate electricity by utility companies. Alpha operates 32 active underground mines, 26 active surface mines and 11 preparation plants in Virginia, West Virginia, Kentucky, and Pennsylvania. As well as the mining operations, the company operates a road construction business that recovers coal in Virginia and West Virginia.

Under the deal, Cleveland-Cliffs will pay an estimated $1.7 billion dollars in cash and 71 million new shares of common stock. Current shareholders in ANR will receive 0.95 Cleveland-Cliffs share and $22.23 cash for each of their shares.

After the deal is closed, the combined company will be called Cliffs Natural Resources. Alpha shareholders will hold a 40% stake and Cleveland-Cliffs shareholders will hold 60%.

Both companies agreed to the deal and it’s expected to close by the end of 2008.

GM’s announcement included plans to suspend their quarterly dividend payouts, layoff 20% of their salaried staff and to sell off up to $7 billion dollars worth of assets. GM also said that they’re going to cut health care benefits to U.S. salaried retirees older than 65, effective Jan. 1, 2009.

High oil prices and the consumer credit crunch have came back to haunt the 100 year old company that was making and marketing large vehicles like the Hummer and other gas guzzling SUV’s. Without consumer financing options for many and gas prices over $4.00 dollars a gallon, what was once their most profitable division has become an albatross around their neck with no simple solution in sight.

In June, GM announced plans to shutter four United States manufacturing plants and discontinue making the Hummer, a vehicle that was once just for use by the US military.

GM Chief Executive Rick Wagoner said “We need to take some very tough actions to ensure our survival and success.”

General Motors is based in Detroit, Michigan and hasn’t posted a profit since 2005. The company saw an overall 16% decline in sales for the first six months of 2008.

The news from the financial sector, especially the mortgage division, has been horrid for months now. With crude oil at records prices, it’s tough for many stock holders to be bullish. They didn’t even get excited about comments from Treasury Secretar Henry Paulson that the government would make sure that Fannie and Freddie kept on operating in a business as usual manner.

Of course the continued existence of Freddie Mac and Fannie Mae is necessary for the health of the entire economy. Combined, the two companies hold $5 trillion of the $9.5 trillion mortgage debt of the United States.

Adding to the gloom is the fact that financial companies will be reporting earnings next week. Very few people seem to think we’ll be hearing any good news from any of them. Indeed, more massive writedowns are expected.

All in all, a very bearish sentiment has hit the stock market this week.

General Electric did consumer financing and loans under the name Lake. They offered credit card and mortgage products, but with weakened credit markets and stiffer lending regulations the conglomerate has switched directions and is trying to focus on their “core business”, which is no longer lending in Japan.

Shinsei President Thierry Porte said in a press conference

“This marks our largest acquisition to date and is the biggest step we have taken towards our goal of redefining and modernizing consumer finance in Japan.”

General Electric also put their appliance division on the market in an effort to streamline their business model. The company has been under scrutiny from analysts and stockholders because of their vast operations that include the manufacture of jet engines to media and everything in between.

The sale is expected to close by the end of September, 2008.

Currently his daughter Shari Redstone serves as President of National Amusements.

Sumner Redstone says that even though he believes that Shari is adept and most qualified for his succession, he’ll trust his board members to decide when the day comes.

Sumner says he doesn’t believe that day is coming anytime soon.

Production is expected to begin in late 2010.

This decision was spurred by growing demands for smaller, more fuel efficient vehicles. Originally the Blue Springs factory was going to be used to manufacture the Highlander a mid size Sports Utility Vehicle. Production of the Highlander will be moved to Princeton, Indiana in the fall of 2009.

Deeply lower demand for large trucks is also consolidating the manufacture of the Toyota Tundra to their plant in San Antonio. The Tundra is now built in Indiana and Texas. Toyota is suspending production of the Tundra and the Sequoia on August 8, 2008 with production expected to resume in early November.

Toyota stock is in the low $90’s in late morning trading today.

Robert Steel brings heavyweight experience to bear at Wachovia. Steel was the Under Secretary for Domestic Finance for the U.S. Department of Treasury. He also had an extensive career at Goldman Sachs & Co. (NYSE: GS).

Steel is considered to be a central figure in the JPM (NYSE:JPM) “bailout” of Bear Stearns.

“Bob is a distinguished and widely respected leader in the financial-services sector whose vast experience and deep knowledge make him the ideal candidate to lead Wachovia,” said Lanty Smith, who has been serving as the company’s interim CEO. “The board is unanimous in its decision that Bob is the right person to provide sound leadership to build on Wachovia’s core strengths and successfully manage the company through the current environment as a strong and independent company.”

Steel is happy with new opportunity, according to a statement he made on the subject.

“I am honored to have the opportunity to lead Wachovia, one of the nation’s premier retail, brokerage, asset-management and investment-banking franchises. Clearly, there are challenges ahead in our current climate, but I am encouraged that most areas of the company continue to perform well, and this performance is a testament to the quality of Wachovia’s employees and the longstanding excellence of service to customers and clients.”

“In Wachovia, I see an institution with great strengths. Under the leadership of the board, the management team has recently been taking decisive actions to face current challenges head on, and I am delighted to have an opportunity to build on that progress. I look forward to working with a talented team companywide to restore value to Wachovia’s shareholders, promote transparency and continue delivering outstanding service to Wachovia’s customers,” said Steel.

Dow Chemical is paying $15.3 billion dollars to acquire their competitor, a move they’re hoping will fuel their growth making specialty chemicals.

Dow offered $78.00 per share and will assume company debt that could boost the transaction to $18.8 billion dollars when all is said and done.

Rohm and Haas makes a number of raw materials including plastics additives, building materials, paints and coatings. They own Morton Salt. The company employs more than 15,000 global employees and had $8.9 billion in sales in 2007.