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Analysis: A Divergence of Sentiment and Reality?

Traders work on the floor of the New York Stock Exchange
If there's nothing to fear but fear itself, as President Franklin Roosevelt contended during the Great Depression, then the world economy in 2011 has reached an interesting juncture between sentiment and reality.
A Spanish flag flutters over the Colon square in central Madrid

Downgrade of Spain Ups Pressure on EU to Act

A double-notch downgrade to Spain's credit ratings has piled more pressure on European leaders to make rapid progress on solving the region's debt crisis or face unbearable borrowing costs.
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France, Germany near rescue fund deal: paper

Britain's Guardian newspaper reported on Tuesday that France and Germany had agreed to boost a euro zone financial rescue fund to two trillion euros ($2.76 trillion), pushing U.S. stocks and the euro higher despite doubts about whether there was such an agreement.
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France, Germany near 2 trillion euro rescue fund deal: report

France and Germany have agreed to boost a euro zone financial rescue fund to two trillion euros ($2.76 trillion), part of a plan to resolve the bloc's debt crisis that should win support at Sunday's EU crisis summit, Britain's Guardian newspaper said on Tuesday.
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France, Germany near $2.8 trillion rescue fund deal: report

France and Germany have agreed to boost a euro zone financial rescue fund to two trillion euros ($2.76 trillion) as part of a plan to resolve the bloc's debt crisis that should win support at Sunday's EU crisis summit, Britain's Guardian newspaper said on Tuesday.
Sarkozy & Merkel

France, Germany Agree to Sharply Increase Size of Eurozone Bailout Fund: Report

The leaders of the most powerful nations in Europe, France and Germany, have reportedly agreed to increase the size of the Eurozone’s rescue fund to 2 trillion euros ($2.7 trillion) – up from the current 440 billion euro ($604 billion) lending capability -- as part of comprehensive program to find a solution to the debt crisis wreaking havoc across Europe.
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Steinhoff, Kap in $1.1 billion deal

South African group Steinhoff will swap several of its industrial units for a bigger stake in Kap International, in a $1.1 billion deal giving it control of the manufacturing firm.
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CFTC cracks down on commodity traders; will it stick?

The United States is set to pass narrowly on Tuesday its toughest measures yet to curtail speculation in commodity markets, likely shifting the focus of a fierce four-year debate from the regulators to the courts.
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UK-U.S. extradition review deals blow to hacker

An extradition treaty with the United States is not biased against British criminal suspects, a judge-led review said on Tuesday, dealing a blow to campaigners fighting to stop a computer hacker being sent to stand trial in America.

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