Looks like Monday merger madness has hit the largest retailer in the known galaxy. This morning, Wal-Mart Stores (WMT) made public its intentions to purchase South African retailer Massmart Holdings. Walmart offered 148 rand ($21.13) per share, bringing the total price tag for the purchase to $4.26 billion.

The move is an attempt by the American retail giant to establish itself in the quickly growing African market. Massmart operates 290 stores in 13 African countries, most of them concentrated in South Africa. Walmart considers the acquisition of Massmart "a compelling growth opportunity" that could "provide a platform for growth and expansion in othre African countries."

It's been a few weeks now that Google (GOOG) and its Street View mapping service has been in the spotlight after it was discovered that the search giant collected and stored personal data from unencrypted Wi-Fi networks. Now, Google's intentions are in question.

"This was a failure of communication between and within teams," the BBC quotes a Google spokesperson. It is the first line of defense in what has already become an international scandal striking directly at the heart of Google and allegations of serious misconduct by that company. The BBC report indicates that Google's actions of collecting and recording the personal data is in violation of the data interception laws of as many as 30 countries.

As Wall Street gyrates around in the wake of the Goldman Sachs (GS) fraud allegations, investors are starting to feel the old doubts and fears creep up again. After surging over 70% from the March 2009 lows, the market appears to be stalling at least in the short term.

One place low-risk investors can take refuge is low-risk dividend stocks in reliable industries – like health care giant Abbot Laboratories (ABT) with its 3.4% yield, or in energy giant Exxon Mobil (XOM) with its 2.5% yield. Those nice payouts ensure that you'll see some returns on your investment even if things stay rocky on Wall Street. And since dividend stocks added $6.4 billion to payouts in the first quarter, the cuts we saw during the recession appear to have been reversed by many stocks.

As an investor in Chinese stocks, I'm constantly bombarded by predictions of the country's coming economic bust. When a scandal at poultry company Yuhe International (YUII) brutalized this stock, people emailed me, saying that all Chinese companies are cooking the books. When a China-based ETF pegged to the S&P 500 launched, I was told that it was a clear sign that investors there knew it was safer to invest here than in their own country. The list goes on and on.

Lately, the recent pullback in several high-profile Chinese stocks, as well as a pullback in the iShares FTSE/Xinhua China 25 Index (FXI) -- the major Hong Kong market index -- has been cited as more evidence for the country's pending economic hardship. While it is true that some stocks have sold off lately after big runs higher in 2009, FXI is only down 3.8% over the past three months. That's hardly a huge giveback. And besides, America itself would be in pretty dire straits if every market slide meant that its economy was doomed.

Its sights set on the United States and Asia, South Korea's $30 billion sovereign wealth fund is hunting for equities. Korea Investment Corp. (KIC) doesn't see bonds outperforming stocks over the long term, which is what has prompted the move.

Once the reallocation is executed, equities will account for half of KIC's "traditional" investments. Today, it stands at 40%. High quality equities and fixed income securities comprise 90% of KIC's portfolio, with the rest, one would gather, consisting of "non-traditional" investments.

Japan, which boasts the second-largest economy in the world, is facing exceptionally large recessionary pressures as well, as its gross domestic product recoiled at a year-over-year rate of 12.7% in the fourth quarter of 2008.

This marked the nation's worst GDP number since the first quarter of 1974, when the oil crisis helped contribute to a 13.1% collapse. The dismal figure, worse than anything posted (yet) by the U.S. or struggling European nations, also exposes Japan as among the hardest hit by a sweeping global recession. (Well, at least misery loves company). Some are speculating that the crisis could prompt Japanese officials to write up another stimulus package, which would join two packages, together worth 50 trillion yen ($545 billion), that were announced late last year.

Imagine this typical American strip mall: a Trader Joe's, a Sunglass Hut, a Caribou Coffee. Maybe there's a restaurant that serves hot dogs with French's mustard, and a choice of Good Humor ice cream or homemade Toll House chocolate chip cookies for dessert. Across the street is a CITGO, Shell and a 7-Eleven.

All this sounds so American. It could -- and does -- exist all across the country. Yet all of these companies and brands are foreign-owned.

Some of these marquee names were always foreign-owned, but overseas firms are increasingly buying up American properties. Most recently, beer drinkers were shocked when Belgian beer juggernaut InBev put the moves on Anheuser-Busch (NYSE: BUD). [Update: On July 14, Anheuser-Busch agreed to be acquired by InBev for $52 billion.] How could InBev attempt to turn Budweiser into just another of its stable of international brands? We were surprised not only that those European beer snobs even liked our watery brew, but by the apparent ease with which foreigners could try to snap up American icons.

It's not just American brands and companies getting sold. Foreign companies were the buyers in four of the top 13 U.S. commercial real estate deals in 2007, according to Real Estate Alert newsletter. Another foreign acquisition of notable Manhattan real estate was the Dubai-based Jumeirah group's 2006 purchase of the Essex House on Central Park South.

So far during 2007, Japan's broad-based Topix Index has lost 12.2%, while the benchmark Nikkei-225 Stock Average has given back 11.1%.

In U.S. dollar terms, the Topix is down 7.6%, the fifth worst performer out of 90 selected global indexes, according to Bloomberg data. The Nikkei is off 6.4%, placing it sixth from the bottom.

On that basis alone, it's probably worth having a look at Japan as a contrarian play for 2008, especially given how well other foreign markets have fared in recent times.

Best Buy (NYSE: BBY) continues to aggressively look at China as its next retailing conquest, and the largest consumer electronics chain in the U.S. has just said that it plans on a second location in Shanghai to firmly cement its plans there.

The company stated that it still needs to find a suitable site, but if it does, another Shanghai store is in tow sometime in 2008. The retailer's existing Shanghai location -- in the downtown Xujiahui area -- opened in early 2007, and has already proved successful enough to make Best Buy's international development team seek another location. My, my -- that was quick!

Best Buy CEO Brad Anderson says that the retailer is studying China and is not making snap judgments in terms of its expansion strategy there, saying that, "Best Buy needs experience in the China market, but it takes time." The only problem is that the competition is becoming more fierce every day, with companies already familiar with doing business with Chinese consumers. The learning curve needs to accelerate in Best Buy's case or it could find itself behind.

It's very strategic for Best Buy to study the competitive landscape and brand itself as required in China's rapidly growing retail market, but in addition to that it needs to understand the needs of the Chinese consumer more than anything. That will take time and patience, but every quarter still counts here.

Most investors are probably aware that the stock markets of "emerging," or developing, nations have been the big winners so far this year.

Since January, the MSCI Emerging Markets index has outpaced the MSCI World index by a hefty 18.1%.

But even then, the divergence in performance between various regions has been striking, with some of these traditionally volatile markets doing far better than others.

For instance, the "BRICs" -- Brazil, Russia, India and China -- have beaten the emerging markets benchmark by 7.7%, while its solely European-based counterpart has lagged by 13.65%, or nearly twice as much.

It just goes to show that when it comes to investing overseas, choosing the right stocks, sectors, and "themes" can really make a world of difference.

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.

Although many investors believe that Asian equities have led the pack lately, it has actually been the Nordic region that has been the star performer, at least as far as developed markets are concerned.

So far this year, the MSCI Nordic index has outpaced the MSCI World index by 13.8 percentage points. The MSCI Europe index has edged out that broad benchmark by 1.7 percentage points.

In contrast, the MSCI Far East and Pacific indexes have trailed the World index by 8 and 3.6 percentage points, respectively.

While that divergence seems at odds with the breathtaking share-price run-ups that have been seen in places like Brazil and China, its worth remembering that those nations and others like it are categorized as emerging markets.

I'll have more on the relative performance in 2007 of those high-flyers tomorrow.

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.

With gold going through the roof since mid-August, jumping from $660 to $743 per ounce, Mr. Bernanke has to be asking whether he is stepping too hard on the monetary gas peddle. Is gold heading higher due to concerns of global inflation or is it heading higher because the world's safe haven, the U.S. dollar, has been getting weaker and weaker?

Expect Mr. Bernanke, the U.S. Treasury secretary and central bankers around the world to find out. The U.S. dollar-Euro exchange rate has gotten completely out of hand with the euro approaching 140 to the dollar versus the 85 level in 2002. Since the dollar has been depreciating against the euro, gold has shot through the roof.

Historically, despite all the talk about comparative purchasing power and differing short-term interest rates determining fair values for currencies, currency values are determined by the trend-is-your-friend mentality of traders. They lever up and ride the trade until the treasury secretaries around the world get together and reverse that trend.

Expect the euro's appreciation versus the dollar to end the same way and expect it to happen soon. Bernanke has to determine if gold is going higher because too much money is chasing too few goods, or gold is trading higher because global investors would rather hold gold than an overvalued euro.

With sentiment so bearish on the dollar, it seems like a good time to go long the U.S. greenback.

For July, investors withdrew $5.5 billion from domestic equity funds, slightly more than in June, which followed $10 billion of withdrawals in May, according to a memo sent out by Tom McManus of BofA yesterday.

International investing also "screeched to a halt", as the $2.0 billion in weekly inflows into funds outside of the U.S. have stopped.

This morning, short-term lending rates, the rates for financial institutions to do business with each other, shot up in Europe -- another sign of tight money.

Retailers also released generally weak monthly sales data this morning, with a few exceptions.

We blogged yesterday that the Fed's objective is to control the psychology of inflation expectations, it appears from all the points listed above that the Fed has succeeded. Both the ECB and the Fed announced they are adding reserves to the system. Look for short-term rates to start coming down in September.

Lately, commentators have noted that U.S. long-term interest rates are on the rise. As of today, the yield on the 10-year Treasury note is hovering just below its late-January closing peak of 4.89%.

Yet this is not a purely domestic phenomenon. The same also holds true for bond markets around the world.

In each of seven selected international markets -- Europe, Switzerland, United Kingdom, Japan, Canada, Australia, and Hong Kong -- 10-year interest rates are at or near 2007 peaks. In four of them -- Europe, Switzerland, United Kingdom, and Australia -- long-term yields are not far off 12-month highs.

Amid signs that many central banks outside the U.S. are also poised to boost short-term rates in their own countries, some might say that the monetary environment is becoming less supportive for share prices.

So much for excess global liquidity?

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle: An Insider's Guide to Successful Investing in a Changing World.

China is currently taking a sledgehammer to its economy in an attempt to slowdown growth. On Friday, China officials announced it was hiking short-term rates, increasing the required reserves banks maintain on loans and increasing the band on its currency to let it further appreciate. All powerful tools to halt money supply growth.

These steps follow news reports this week that one of China's more respected entrepreneurs said the Chinese stock market is a bubble. We blogged a few weeks back that Chinese retail investors opened more than one million stock trading accounts in one week and over 10 million the last four months -- greater than the previous four years combined.

Currency appreciation during the short-term always adds more fuel to the fire. As Chinese investors expect the yuan to appreciate, they will convert their massive hoard of US dollars to yuan and then most likely look for additional profits in the stock market. This always ends ugly when the central back finally succeeds at sucking enough money out of the economy and then the market will have a serious correction.

I'd stay away from Chinese stocks. China hosts the Olympics in 2008 and does not want a bubble economy when the world shows up. Stick with the mature economies for now.