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China passed Japan in 2010 to become the world’s second-largest economy after the U.S., a historic shift that has drawn mixed emotions in the two Asian powers: resignation tinged with soul-searching in long-stagnant Japan, pride but also caution in an ascendant China wary of shouldering new global responsibilities.

WSJ Assistant Managing Editor John Bussey is joined by Beijing Bureau Chief Andrew Browne and Tokyo Bureau Chief Jacob Schlesinger to discuss China overtaking Japan as the world’s #2 economy.

The Japanese government made official the long-expected flip Monday morning in Tokyo, reporting that the economy shrank at a 1.1% annual rate for the last three months of the year, a period when China’s gross domestic product surged 9.8% from a year earlier. With those figures, Japan’s full-year GDP was $5.47 trillion—about 7% smaller than the $5.88 trillion China reported in January.

Both still remain considerably smaller than the American economy. Japan and China combined are still worth less than the U.S.’s 2010 GDP of $14.66 trillion. But the news marks the end of era. For nearly two generations, since overtaking West Germany in 1967, Japan stood solidly as the world’s No. 2 economy. The new rankings symbolize China’s rise and Japan’s decline as global growth engines.

For the U.S., while Japan was in some ways an economic rival, it also has been a geopolitical and military ally. China, however, is a potential challenger on all fronts.

Obama: Budget is ‘down payment,’ challenges loom

Seeking to balance cuts while maintaining U.S. competitiveness and facing pressure from Republicans seeking even bigger reductions, President Barack Obama said on Monday his proposed 2012 budget was a “down payment,” on reducing the federal budget deficit, but said more work was needed to address “long term challenges.”.

A man walks near the NYSE in New YorkFrom Politics & Policy

Merger mania again hits global stock exchanges

Global stock exchanges have apparently entered into a new round of consolidation that promises to radically alter trading activities for millions of investors.

Traders work on the floor of the New York Stock ExchangeFrom Global Markets

US stocks open lower after recent gains ?

U.S. stocks opened modestly lower on Monday as investors awaited the release of President Obama’s budget.

Boeing launches its new 747-8 Intercontinental From Companies

Boeing launches its new 747-8 Intercontinental

Heralded by the aircraft maker as its airspace footprint into the future, the new Boeing 747-8 Intercontinental shed the traditional blue imprint of the old days and instead opted for a flaming red an…

Swiss freeze Mubarak family bank accounts

Financial Times

The Swiss government moved swiftly on Friday to freeze all accounts held by Hosni Mubarak, his family and selected prominent Egyptians linked closely with his administration.’aretzNPRHindustan Times

MBA Employment and Salaries move up as recession fades: Alumni Survey

The median base salary for business school alumni in the survey topped US$94,500 in 2010 – well above the pre-recession level of US$89,000 recorded in 2007.

A man walks past London's Stock Exchange, on Friday, May 21, 2010. The London Stock Exchange has reported a return to profit a year after absorbing heavy losses from its takeover of Borsa Italiana. For the year ending March 31, LSE said Friday that its posted a net profit of 90.4 million British pounds (some 130 million US dollars) compared to a loss of 338 million pounds in the previous year. Revenue was down 6 percent to 605.6 million pounds.(AP Photo/Lefteris Pitarakis)
photo: AP / Lefteris Pitarakis

TMX Group in Talks With London Stock Exchange

read more ABC NewsThe Associated Press By ROB GILLIES Associated Press TORONTO February 8, 2011 (AP) TMX Group, the operator of the Toronto Stock Exchange, said Tuesday it is in advanced talks to merge with the London Stock Exchange in a deal that would make it one…

UK government irons out pact with major banks over lending, and pay

The British government has entered into a comprehensive agreement with the nation’s largest banks on matters related to lending, transparency and bonuses payments to executives, after four months of negotiations and wrangling.

Critics set to blast Fed on Paul’s monetary policy panel

Collectively, the critics set to testify on Wednesday have previously said the Fed operates for its own advantage, interferes with the market much as a price-control board does, and has not targeted unemployment as much as it has low inflation.

US stocks open modestly lower after China raises rates

U.S. stocks opened modestly lower on Tuesday after China raised interest rates for the third time since last October in response to accelerating consumer and asset inflation.

Hosni Mubarak, the Egyptian president, is reported to have an extensive network of business connections and homes in some of the most sought-after locations around the world.

But while Egypt’s economy may be suffering, Mubarak’s personal wealth remains strong.

Ascent Into Madness

As deficit and debt aggressively climbs, Bernanke warns of ‘catastrophic’ consequences of default

Wall Street Journal – Min Zeng

NEW YORK (Dow Jones)–Treasurys fell for a fourth straight session on Thursday after a round of robust US data and as Federal Reserve Chairman Ben Bernanke brightened his assessment on the economic outlook.

China Beckons West Coast Architecture and Building Firms

Feb 1st

The firms may be in the West, but the new business is now in the East — the Far East, that is. China’s construction growth, fed by a thriving economy and a massive population movement from rural to urban …

Egypt businesses hit by instability

Food shortages reported and businesses remain shuttered as 16-hour curfew and protests continue.

On the Radar: Egyptian protests, major winter storm, new dietary guidelines

It’s day seven of protests in Egypt calling for the ouster of President Hosni Mubarak.
January 31st, 2011

Egypt, Day 7 – Demonstrators continue to demand that Egyptian President Hosni Mubarak step down, and’s “This Just In” is live, blogging developments as they happen. While Americans were waking up Monday, thousands in Cairo defied a midafternoon government curfew despite a greater military presence on the street. Many in the city’s Tahrir Square said they spent the night there. In Alexandria, 2,000 to 3,000 people gathered, and an armored personnel carrier fired warning shots in an apparent effort to intimidate protesters near a hotel.

Meanwhile, the U.S. State Department said 42 Americans have been evacuated from Egypt and more will be transported. Read about their journey. The recent Tunisian uprising helped inspire the Egyptian unrest following the buildup of years of social, political and economic grievances. The lack of opportunities, corruption and poverty have coalesced into a push to oust Mubarak from power.

The negative effect protests have had on U.S. stocks may be waning, but world markets are not doing as well.

Spain’s unemployment rate passes 20 percent – AFP

Suffering from the world recession, Spain has the highest rate of unemployment of any industrialized country

Fitch rating agency downgrades Egypt to ‘negative’ on protests
Fitch rating agency downgrades Egypt to 'negative' on protests
Egypt’s outlook was downgraded to “negative” by the Fitch rating agency Friday. The revision comes after the country’s stock index fell Thursday by 10.5%. The move is a sign that investors are increasingly concerned by current events in the country.

Monsanto Co. headquarters loacated in St. Louis, the world's biggest biotech seed company,

DeLeo Industry Mass Photos Wikipedia :Biotech The Boston Globe

Mass. Speaker DeLeo to address biotech industry

| BOSTON-Massachusetts House Speaker Robert DeLeo is planning to address biotechnology executives about how changes in health care law could effect their industry. | DeLeo is scheduled to deliver the … (photo: AP / James A. Finley)

Sen. Max Baucus, D-Mont., speaks with the press following a meeting on Capitol Hill, Tuesday, Sept. 15, 2009, in Washington.

Economy Photos Taxation US Wikipedia: Corporate tax in the United States The New York Times

Corporate Tax Code Proves Hard to Change

| WASHINGTON — Large trucking companies paid the government more than 30 percent of their income in 2009. Biotechnology companies paid less than 5 percent. Blogs | The Caucus | The latest on Pre… (photo: AP / Haraz N. Ghanbari)

Davos WEF 2011: Urbanisation in emerging economies could cause future crises The Daily Telegraph

Davos WEF 2011: Urbanisation in emerging economies could cause future crises

The pace and scale of urbanisation in fast growing economies could be a source of future crises as could the moral and ethical limitations of the current capitalist system, according to business leade… (photo: WN / Marzena J.)

Economy Europe Future Photos Urbanisation Wikipedia: Urbanization

Euro Rises to Two-Month High Against Dollar

Wall Street Journal – Eva Szalay

LONDON—The euro rose to a two-month high against the dollar in London Wednesday, as concerns receded over the bloc’s sovereign-debt crisis.

Another huge recall for Toyota includes Lexus sedans in US

USA Today – Fred Meier

Toyota announced another massive global recall today: Nearly 1.7 million cars — including Lexus IS and GS sedans in the US — for two fuel leak problems.

Video: Toyota Recalls 1.7m Vehicles Worldwide The Associated Press

Toyota Recalls 1.7m Vehicles Worldwide

The Associated Press

Boeing 4th-quarter profit slips on deliveries

CHICAGO, Jan 26 (Reuters) – Boeing Co (BA.N) on Wednesday said its quarterly profit slipped after the company made fewer commercial airplane deliveries than a year ago, and the company predicted a hit to earnings partly from delays to the 787

Davos 2011: World leaders struggle to rebuild trust

Demonstrators protest over bankers' bonuses outside offices of RBS in London, 14 January 2011 Banks and governments alike have found it hard to regain trust

Public trust in business, governments, non-governmental organisations and the media is slow to rebuild, according to the Edelman Trust Barometer.

The United States are the exception, where trust fell sharply last year.

Chief executive Richard Edelman said scepticism had “increased as a result of the systemic impact of corporate and government crises”.

While trust in business had “stabilised globally,” its nature had changed, Mr Edelman said. Trust was now “different and conditional, premised on what a company does and how it communicates”.

Home Prices in US Declined 1.6% From Year Earlier

Bloomberg – Shobhana Chandra

Residential real-estate prices dropped in November by the most in a year, signaling housing has yet to join the US rebound. Photographer: Jim R. Bounds/Bloomberg Residential real-estate prices dropped

Class Action Lawsuit Has a Beef with Taco Bell’s Meat

DailyTech – Mark Kurlyandchik

For anyone who’s a fan of Taco Bell’s Cheesy Gordita Crunch, or the stalwart beef taco, the following news may not sit well: The “taco meat filling” — as it is labeled — that the fast-food vendor uses is made up of only 36-percent beef.

United Western Bank Says Its Seizure Was Premature

Wall Street Journal – Eric Morath

Federal regulators’ seizure of United Western Bancorp’s subsidiary bank could push the Denver holding company into bankruptcy and scuttled an attempt to save the bank without using government funds.

US Steel loss bigger than expected, stock down

Reuters – Steve James, Lisa Von Ahn

NEW YORK, Jan 25 (Reuters) – US Steel Corp (XN) posted a bigger-than-expected fourth-quarter loss on Tuesday, citing soft market conditions, and its shares fell 2.3 percent.

Stocks Slip at Start After Mixed Earnings Reports

Fox Business – Matt Egan

Wall Street dipped lower at Tuesday’s open as a crush of mixed earnings reports from major companies like DuPont and Johnson & Johnson gave the bulls pause on their march toward Dow 12000.

CORRECTED – UPDATE 2-McDonald’s December sales disappoint; shares fall

Reuters – Ben Klayman, Derek Caney

DETROIT, Jan 24 (Reuters) – McDonald’s Corp (MCD.N) reported weaker-than-expected December sales at established US and European restaurants as poor weather hurt demand, and said its food costs would rise in 2011.
McDonald’s Profit Edges Up Wall Street Journal

UK’s economic growth slows in fourth quarter

Economy in the U.K. grew slower in the fourth quarter though it was above economists’ forecasts, according to the latest report by the U.K. Statistical Department.

Treasury’s Rise On Moscow Blast, Fed Buying

Wall Street Journal – Min Zeng

The 4:32 pm blast near the international arrivals area of Moscow’s Domodedovo airport was the country’s worst terrorist attack since twin bombings.

Treasury’s eked out some gains Monday, supported by a round of buying from the Federal Reserve while a deadly blast in Russia boosted demand for safe assets.

The $8.869 billion buying in notes maturing in 2016 and 2017 was at the top end of the $7 billion and $9 billion range the central bank intended to buy for this operation. It is part of the Fed’s $600 billion bond buying program launched in early November as a second round of monetary stimulus to support the economy.

A suicide attacker blew himself up at Russia’s busiest airport Monday, killing at least 31 people and wounding more than 100 others, authorities said. The 4:32 p.m. blast near the international arrivals area of Moscow’s Domodedovo airport was the country’s worst terrorist attack since twin bombings left 40 dead in the Moscow subway last March.

“There was some demand for Treasurys from the Moscow blast and the Fed buying, but trading in the market has been mundane with no U.S. data Monday,” said Paul Horrmann, a broker in New York at Tradition Asiel Securities, an interdealer broker. “The main driver for the bond market this week will be the new debt supply” and the first monetary policy meeting in 2011 from the Federal Reserve.

Gains were limited as the bond market is bracing for this week’s $99 billion new government notes supply. The sales include $35 billion in two-year notes on Tuesday, followed by $35 billion in five-year notes on Wednesday and $29 billion in seven-year notes Thursday.

President Barack Obama is scheduled to deliver his first State of the Union address in 2011 on Tuesday evening. The Fed will conclude the two-day meeting on Wednesday afternoon with a statement featuring policymakers’ latest assessments on the economy and interest rates.

TechBytes: Apple Announces 10 Billionth iTunes Download

ABC News – Brett Levy, Molly Hunter

Apple has announced an impressive milestone: 10 billion apps have been downloaded from its iTunes store. A British woman downloaded the free game Paper Glider to hit the magic number, winning a $10000 iTunes gift card.

US Jobs Outlook Rises to Decade High, Survey Says

Bloomberg – Alex Kowalski

People check the jobs board at a Denver Workforce Center in Denver, Colorado. Photographer: Matthew Staver/Bloomberg US companies’ employment outlook improved to a 12-year high this quarter after sales

Citigroup Bailout Warrants Will Be Auctioned by US

BusinessWeek – Rebecca Christie, Donal Griffin

Jan. 24 (Bloomberg) — The US Treasury Department announced plans to auction warrants in Citigroup Inc. received as part of the bank’s $45 billion rescue during the financial crisis.

NVIDIA Tegra 2 3D chip revealed

Mobile Burn – Todd Haselton

According to some leaked information obtained by PCMag this weekend, NVIDIA is reportedly set to announce its new TEGRA 2 3D mobile processor during the Mobile World Congress tradeshow next month.

Nadal storms into Melbourne quarters


World number one Rafael Nadal could become the first man since Rod Laver in 1969 to hold all four major titles at once. (CNN) — Rafael Nadal maintained his bid to become the first man since Rod Laver to hold all four grand slam titles on Monday

Shakira & Rafael Nadal in ‘Gypsy’ Video


McDonald’s Profit Climbs 2.1% as Frappes Draw Customers

BusinessWeek – Leslie Patton

Jan. 24 (Bloomberg) — McDonald’s Corp., the world’s biggest restaurant chain, reported a 2.1 percent gain in fourth- quarter profit as new menu items attracted diners.

Rock-Tenn to Buy Smurfit-Stone for $3.5 Billion on Paper Demand

Jan. 24 (Bloomberg) — Rock-Tenn Co. agreed to buy Smurfit- Stone Container Corp. for $3.5 billion, creating North America’s second-biggest containerboard producer as demand rebounds.

Halliburton Profit More Than Doubles on North America Rebound

Wall Street Journal – Tess Stynes

Halliburton Co.’s fourth-quarter earnings more than doubled as the oil-field services company continued to benefit from a resurgence of drilling in North America.

U.S. to Auction Citi Warrants Tuesday

Wall Street Journal – Jamila Trindle

WASHINGTON—The US Treasury said an auction of more than 465.1 million warrants to purchase Citigroup Inc. common stock will begin Tuesday morning.

Private equity suitors queue up for Sara Lee

Sydney Morning Herald – Michael de la Merced

The board of Sara Lee, the maker of cheesecakes, ice-cream, snacks and cereals, received a preliminary bid late last week from a group of buyout firms led by Apollo Global Management and including Bain Capital and TPG Capital.

Wall Street JournalChicago

Genoptix shares rise as Novartis plans acquisition


By AP Shares of Genoptix Inc. jumped 26 percent in premarket trading Monday after Swiss drug maker Novartis AG said it will pay $470 million to acquire the US cancer diagnostic specialist Genoptix specializes in diagnosing cancers in bone marrow, …

Sanofi extends Genzyme tender offer

Boston Globe – Robert Weisman

For the second time in six weeks, French drugmaker Sanofi-Aventis SA has extended its tender offer for Cambridge-based biotechnology company Genzyme Corp.
Sanofi Extends Genzyme Bid Wall Street Journal

Facebook raises $1.5 billion

CNNMoney – Laurie Segall

NEW YORK (CNNMoney) — Confirming reports that have swirled for weeks, Facebook said Friday that it has raised $1.5 billion from Goldman Sachs and Digital Sky Technologies.

Workers wait for customers at their fast food outlet in London January 20, 2011. From Economy

Snow hits UK retail sales

UK retail sales slid 0.8 per cent in December as food, petrol and clothing sales remained under pressure and the adverse effects of the snow dented high street spending.

U.S. President Barack Obama hosts a State Dinner in honor of China's President Hu Jintao at the White House in Washington, January19, 2011.From Economy

Is China’s economy already the world’s biggest?

New GDP figures at purchasing power parity (PPP) seem to suggest that China may have already overtaken the U.S. as the world’s largest economy.

A shop assistant arranges fish for sale at a supermarket in Hangzhou, Zhejiang province January 14, 2011.From Economy

China rate hike looms as inflation becomes political issue

Close on the heels of a China central bank adviser hinting at an imminent rate hike, a state-controlled newspaper has said more rate hike is on the cards, probably as early as in February, confirming …

US stocks open higher on upbeat earnings

US stocks advanced in early trade on Friday as upbeat quarterly results from General Electric and Google and strong German IFO business sentiment data boosted investor sentiment.

General Electric’s quarterly net profit jumps 51%

MarketWatch – Christopher Hinton

NEW YORK (MarketWatch) – General Electric Co. on Friday posted a 51% jump in fourth-quarter profit, reflecting robust growth in its technology-infrastructure segment and underscoring a more stable global economy.

What Google’s Executive Reshuffle Means for Investors

DailyFinance –

The first thought to come into my head on reading that Google’s (GOOG) CEO crown would soon pass from Eric Schmidt to Larry Page was the memory of a moment from Google’s first shareholder meeting.

Bank Of America Posts Billion-Dollar Loss Tied To Mortgages

Forbes – Halah Touryalai – ?

Bank of America, the largest US bank by assets, reported a fourth quarter net loss of $1.2 billion Friday, which was well behind analysts expectations.

After summit pomp, China’s Hu to face US lawmakers

President Hu Jintao on Thursday will try to persuade often hostile U.S. lawmakers that China is a threat-free engine of growth, after a White House summit sought to narrow rifts between the world’s top two economies.

2010 weakest year for home sales since 1997

The Associated Press – 34 minutes ago
WASHINGTON (AP) – The number of people who bought previously owned homes last year fell to the lowest level in 13 years. But home sales in December jumped to fastest pace in seven months.

Initial Jobless Claims in US Fell to 404000 Last Week

Bloomberg – Alex Kowalski – 13 minutes ago
People check the jobs board at a Denver Workforce Center, part of the Denver Office of Economic Development, in Denver, Colorado. Photographer: Matthew Staver/Bloomberg The number of Americans filing

U.S. Representative Eric Cantor (R-VA) delivers remarks during the 2010 meeting of the Wall Street Journal CEO Council in Washington, November 16, 2010. From Politics & Policy

House passes health repeal

The House of Representatives voted on Wednesday to repeal last year’s health care overhaul.

Customers queue to buy the iPad at an Apple flagship store on a rainy day in BeijingFrom Tech

Apple criticized for lax green standards in China

Chinese green groups on Thursday accused iPhone maker Apple of failing to properly oversee its Chinese suppliers, leading to poor environmental and safety standards, and dozens of poisoned factory workers.

US, China tout $45 billion in export dealsFrom Politics & Policy

US, China tout $45 billion in export deals

The United States and China on Wednesday agreed on $45 billion in U.S. export deals and to give U.S. companies greater access to China’s $88 billion-plus government contracts market at the start of Chinese President Hu Jintao’s four-day state visit.

A Landfill and Recycling Center From Education

Green jobs outpace overall employment growth in California

Research shows that jobs in the green sector in California grew by three percent over a period when the total employment growth in the state grew by one percent.

U.S. Secretary of Treasury Timothy Geithner and Chairman of the Federal Reserve Ben Bernanke (L) listen during the Financial Stability Oversight Council meeting to discuss the Volker Rule from the Dodd-Frank Act in Washington, January 18, 2011.

From Economy

QE2 not working miracles, but Fed unlikely to roll it back

The Federal Open Market Committee (FOMC) of the Federal Reserve, which meets next week, is unlikely to curtail its plan to buy $600 billion of Treasury securities by June despite the stronger tone of the incoming economic data, research firm Capital Economics said in a note on Wednesday.