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IMF Lays Out the Challenges Ahead for Global Recovery

In its latest report, the IMF applauds national policymakers for stabilizing credit markets and putting the global economy on a recovery track. However, thorny problems remain -- including how to prevent overheating in emerging markets, and how to cut the U.S. deficit while lowering its unemployment rate.

U.S. National Debt Is Huge, but It's Not a Catastrophe

True, the U.S. national debt is large and it should be reduced at some point, but does a large national debt doom a nation to economic ruin? Only if you believe that nations like Germany, France, and Japan are economic basket cases too.

Currency Wars Are Heating Up Across Latin America

Emerging market countries, especially those in Latin America, are gearing up for a potentially damaging round of currency interventions to help keep their economies competitive. "This is a currency war that is turning into a trade war," says Brazilian Finance Minister Guido Mantega.

GE Agrees to Buy Wellstream for $1.3 Billion

General Electric Co. (GE) will buy Wellstream Holdings Plc (WSM), a British oilfield-services provider focused on the Brazilian market, for 800 million pounds ($1.3 billion). The deal is worth 786 pence per share of Wellstream, including a 6 pence special cash dividend, Bloomberg News reported. That%u2019s 29% higher than the stock%u2019s closing price on Sept. 20, the day before Wellstream said it had received approaches.

GM's IPO: Recovery -- Not the End of the Road

Considering where the iconic carmaker has been in recent years, the pending IPO -- and robust investor demand for shares -- is a remarkably positive step. But GM still has plenty of problem spots that will need fixing if this historic event is to have lasting meaning.

U.S. Growth to Lag Behind Developing World in 2011

The world economy is poised for more of the same in 2011 -- booming growth in China, India and Brazil, and a sluggish crawl in the U.S. and much of the rest of the developed world. Here are the five most important factors driving expectations for sluggish economic growth in the U.S.:

G-20 Leaders Criticize Fed's $600 Billion QE2 Stimulus

The U.S. finds itself on the wrong side of the currency manipulation argument this week, as many G20 countries criticize the Fed's $600 billion bond buying plan, which could further devalue the dollar. World leaders say the move breaks the vow of unity made during the last G-20 summit.

Goldman Sachs Defends Bernanke's Plan to Buy Assets

Goldman Sachs (GS) economists defended Federal Reserve Chairman Ben Bernanke%u2019s decision to pump billions of dollars into the economy, saying the move will boost economic growth. The Fed%u2019s plan to buy $600 billion of assets will improve growth and reduce the risk of deflation, economist Jan Hatzius wrote in an e-mail to clients, Bloomberg News said.

JPMorgan's Highbridge Capital Takes Stake in Brazil Hedge Fund

Highbridge Capital Management, which is owned by J.P. Morgan Asset Management (JPM), said it will buy a majority interest in Brazilian hedge fund Gavea Investimentos. Gavea has $6 billion under management and was founded by Arminio Fraga, former president of Brazil%u2019s central bank, Highbridge said in a statement. Fraga is currently the fund%u2019s chief investment officer.

World Drug Sales to Hit $880 Billion in 2011

Global pharmaceutical sales are expected to grow by 5% to 7% in 2011 to around $880 billion, thanks to robust growth in emerging markets, especially China, as well as new innovative treatments, and despite patent expirations and budget pressures in the developed world.

Can the Global Economy Thrive Without the U.S.?

Three years ago, the financial crisis that hit America spread across the globe, dragging the world into its deepest recession in seven decades. Now, the U.S. recovery is losing momentum, but economists say this time, when America sneezes, the world doesn't have to catch a cold.

China's Sinopec to Invest $7.1 Billion in Repsol Brazil

Sinopec Group (SHI), China%u2019s second-largest oil and gas producer, will invest $7.1 billion in Repsol%u2019s (REP) Brazilian unit. Sinopec will buy new shares in the Spanish company%u2019s Brazilian unit, giving the Chinese company a 40% stake, Bloomberg News said.

Bank of America Could Sell Some Non-Core Assets

Bank of America (BAC) is planning to highlight billions of dollars worth of assets that it intends to sell or wind down. The bank has told investors and analysts that it is considering disclosures on assets including loans, businesses and stakes that it considers non-core, The Financial Times reported without naming its sources. The non-core assets could be worth more than $100 billion.

Why the Financial Crisis Spells the End of Western Power

In a new article, political scientist Ian Bremmer and respected economist Nouriel Roubini assert that the free-market system of capitalism has been so damaged by the recent financial crisis that the West's era of political and economic dominance may be gone for good.

Japan Gets a Boost From Exports

Mired in deflation and stagnant for decades, Japan has been the economic basket case of the developed world, a cautionary example of malaise run amuck. But because it's export-oriented, the world's third-largest economy is getting an unexpected lift from roaring growth

Brazilian and Chinese Tourists Rediscover America

Brazilian and Chinese visitors led a resurgence in foreign tourism spending within the U.S. in the first half of 2010, giving hope to domestic hoteliers, airline companies and others that the travel-spending slump of 2008 and 2009 is over, according to a report released Wednesday.

Potash Had Contact With Brazil's Vale, China's Sinochem

Potash Corp. (POT) had contact with China%u2019s Sinochem Group and Brazil%u2019s Vale (VALE) as the Canadian company looks for alternatives to a hostile takeover bid from BHP Billiton Ltd (BHP). Vale and Sinochem both made contact late last week, Bloomberg News reported without naming its sources. Neither company has held formal talks with the world%u2019s biggest fertilizer company.

Brazil and U.S. Sign Deal to Convert Debt into Conservation Fund

The United States and Brazil agreed to convert $21 million of Brazilian debt into a fund to protect three tropical ecosystems. Brazil will use the money to conserve the Cerrado and Caatinga ecosystems, as well as its Atlantic coastal rainforest, instead of repaying the debt, BBC News said.

ETFs at Midyear: Investments Keep Pouring In

The first half of 2010 has been anything but dull for exchange-traded fund investors. ETF assets in the U.S. decreased 0.4% to $772 billion as of June 30, but that actually indicates a serious inflow of cash: Equity markets, as measured by the S&P 500, fell 8.9% during the period.

Telecom Giant Telefonica Buys Full Control of Brasilcel

Telefonica's months-long effort to acquire a controlling stake in Brazil's leading mobile phone company, Vivo, has ended with the Spanish telecom giant ponying up nearly $9.75 billion to acquire full ownership in Brasilcel, which owns 60% of Vivo, from Portugal Telecom.

Cameron: Amazon Dam Dispute a Real-Life Avatar

Director James Cameron said that a real-life "Avatar" battle is playing out in Brazil's Amazon rain forest, where indigenous groups are trying to halt the construction of a huge hydroelectric project. Cameron said he was in Brazil's capital to support protesters against the dam.

How Best to Ride the Emerging-Market Boom?

The U.S. stock markets had a dismal decade, but many emerging economies delivered blockbuster growth. That's prompting investors in the developed world to grapple with how to take advantage of the explosive growth abroad -- without getting burned.