The World This Week...

After months of speculation and a failed merger effort, Microsoft and Yahoo! announced an agreement to integrate their internet-search and advertising businesses.

There was more evidence that housing markets may be turning a corner. Sales of new homes in America jumped by 11% in June compared with May, the biggest increase in nearly nine years.

A flurry of visits by senior members of the Obama administration to Israel and the surrounding region, highlighted his apparent determination to get a Middle East peace process going again.