Delta and Northwest to Fly in Formation

FINANCE
• High fuel prices and a soft economy have sent Delta and Northwest Airlines running into each other's arms. The two could announce a definitive plan to merge as early as next week. [NYT]
• Senate Republicans have axed a proposed economic-stimulus bill. The Dem-proposed $158 billion package, which sought to avert a full-fledged recession, came up one short of the required 60 votes. [FT]
• But, no worries. Economists put odds of a U.S. recession at 49 percent, which means we're not technically there yet. Also, for what it's worth, this video is funny. [WSJ]

MEDIA
• Remember when Revver was going to show YouTube how it's really done? Well, no more. The video site is now shopping itself for $300,000–$500,000, a real steal considering the $12.7 million in venture capital it raised two years ago. [CNET]
• Perhaps fearful of top talent abandoning ship at the possibility of a Microsoft takeover, Yahoo chief Jerry Yang sent an all-hands e-mail yesterday (cc-ing the SEC, natch) reminding them, "As we look to build on the progress we've been making, I want to make sure you all realize how essential you are to Yahoo!'s success." [CNN/Fortune]
• Hollywood is preparing for the blitz. With the WGA strike (hopefully) winding down, studio execs expect a flurry of scripts and new deals to come their way. [HR]

LAW
• New York State regulators apparently don't get the giggles from funny law-firm ads, and equally humorless Florida has some bizarre bans on what is — and is not — permissible in their local legal spots. [WSJ]
• Finally, some justice for Fluffy. Two Chinese pet food–makers and an American importer have been indicted on charges related to a rash of poisonous chow released in the U.S. last year. [NYT]
• As many as 60 suspected Gambino-family mobsters are expected to be charged after a major FBI sweep today. [NYDN]

FASHION
• Victoria Beckham's need to start a real, actual fashion line might have contributed to the abrupt early end of the new Spice Girls reunion tour. [NYDN]
• Warm weather ruined Derek Lam's plans to serve hot chocolate at his show! [The Cut]
• The potential U.S. recession hasn't brought down luxury yet: LMVH's profits were up 8 percent last year. [WWD]