The news at a glance

The economy: Mounting evidence of a recovery

The Standard & Poor’s 500-stock index this week topped 1,000 for the first time since November, as confidence grew that the economic recovery has begun, said Lynn Thomasson in Bloomberg.com. Optimists got a boost when Ford Motors reported that sales increased 2 percent in July, after 19 consecutive monthly declines. They were also heartened by news that U.S. manufacturing declined less than forecast in July, as “gains in demand worldwide helped resuscitate factories.” And perhaps most significantly, the government reported last week that the U.S. economy’s plunge slowed sharply in the second quarter, with output falling only 1 percent from the same period last year, after falling 6.4 percent in the first quarter.

“Americans now need to focus on surviving what’s likely to be a pokey, painful recovery,” said Daniel Gross in Slate.com. Sustained economic growth will require smart, focused federal investments in infrastructure and the emerging “green” economy. But is the government up to the job of “placing bets on specific technology sectors”? Uncle Sam’s record as a venture capitalist is mixed at best.

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Internet search: Microsoft and Yahoo join forces

After 18 months of fitful negotiations, Microsoft and Yahoo have teamed up to take on Google in search, said Tom Krazit in CNET.com. “Microsoft’s technology will power Yahoo’s search results, while Yahoo will handle ad-selling duties for both companies’ search sites.” The deal gets Yahoo out of the high-cost search business and turns Microsoft “into a clear No. 2 behind Google in search technology.” Yahoo expects to gain $500 million annually in net income, while Microsoft wins exposure for its Bing search engine.

Media: Cablevision cuts MSG loose

Cablevision has decided to unload Madison Square Garden, as well as the professional basketball and hockey teams that call the sports mecca home, said Deborah Yao in the Associated Press. The cable and telecommunications company will distribute shares in the new, freestanding MSG to Cablevision shareholders. Analysts said Cablevision would now have a clear identity as an operator of cable systems, while MSG would be an entertainment company, with two storied sports franchises, the New York Knicks and the New York Rangers, among its assets.

Autos: Honda orders a recall over air bags

Honda last week expanded a previously announced product recall, adding 440,000 cars that could have a potentially deadly air-bag defect, said Catherine Clifford in CNNmoney.com. The recall affects some of Honda’s most popular models, including the Accord, Civic, and Acura TL. Honda said the driver-side air bag is at risk of overinflating and rupturing. The defect is known to have caused six injuries and one death. The company will send recall notices to Honda owners over the next several months.

Computing: No room for Google on Apple’s board

Google CEO Eric Schmidt this week resigned from the board of Apple Inc., highlighting the growing competition between the two companies, said Therese Poletti in Marketwatch.com. Google has recently unveiled operating systems for computers and mobile phones that compete directly with systems made by Apple. To avoid potential conflicts, Schmidt has been “spending more time outside the Apple boardroom than in it.” Federal regulators are investigating whether board ties between Apple and Google violate antitrust rules.