Investing strategy: Second-half outlook

Dollar down, but not out As the second half begins, the U.S. dollar remains above its lows against major rivals. Its direction for the rest of the year should be largely determined by Federal Reserve's interest-rate policy. • Behind the dollar's recent surge  • Rough ride ahead for emerging markets • Mark Hulbert offers 2008's halftime pep talk • No summer break for gold rally | Oil may be victim of own success

battle for yahoo | Full coverage
Yahoo, AOL open chat windows
Web portal's shares rise following report that Yahoo is talking to Time Warner about a possible combination with AOL.
• Jon Friedman on Yahoo's fear of commitment  
• Microsoft tries again | Mash-up  
• Latest bend in the Yahoo 'runaway' (First Take)

TAXWATCH
A little less burdensome
A new IRS rule makes filing returns easier for taxpayers involved in partnerships and estates.

TRANSPORTATION GM's tiny Beat GM to shift  two-door Chevrolet Beat to U.S. in effort to lift its fortunes from lowest stock price since the Eisenhower years. • Toyota revamps U.S. product mix

financials  
Ambac plans buyback after stock offering
Bond insurer plans $50 million share buyback, says repurchase plan will occur when underwriters of March offering complete the transaction.
• M&I warns of major losses from housing-market woes
• Radian shares leap on news it paid fewer claims than expected  

technology
Nvidia warning clouds chip outlook
Cautionary tone sweeps over chip sector after Nvidia lowers forecast, sending its stock lower and pulling sector down with it.
• Nvidia shares short-circuit | Xerox rival Oce plans job cuts

central banking
ECB raises key interest rate
European Central Bank lifts key rate for the first time in 13 months in response to inflationary pressures in the euro zone.
• Trichet: ECB unbiased | Hiking in Stockholm

GAMBLING
Not putting Penn to paper
Beleaguered Fortress-led plan to acquire casino operator Penn National goes by the wayside.

PHILADELPHIA DISPATCH Turning around a city Mayor Michael Nutter wants the city to create more and better jobs  to attract 75,000 new residents to original U.S. capital. • City may be bellwether for U.S. economy • Interview with the mayor

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