MARKETS / FINANCE

Worries about the impact of fraud charges against Goldman Sachs rattled stock markets on Monday, sending investors in search of less speculative currencies and boosted government bonds.

China might see increased foreign exchange inflows this year as expectations of yuan appreciation mount, the State Administration of Foreign Exchange said on Monday.

Asian stocks suffered their biggest loss in 10 weeks on Monday after U.S. regulators filed fraud charges against Goldman Sachs and China clamped down harder on property speculation, giving investors an excuse to take profits after markets had rallied to multi-month highs.

United Airlines is continuing separate merger talks with US Airways and Continental Airlines, and has also discussed the option of deepening a three-way marketing alliance between the carriers absent a merger, people familiar with the matter said.

Clients of Goldman Sachs are standing behind the bank after the top U.S. securities regulator slapped fraud charges against the Wall Street powerhouse over its marketing of a subprime mortgage product.

Asian stocks and commodities fell on Monday as fraud charges against Goldman Sachs, disappointing company earnings and a surprise drop in U.S. consumer sentiment gave investors an excuse to take profits from a recent rally to multi-month highs.

Global finance leaders face fractious talks this week on how to shift more voting power at the World Bank to emerging economic heavyweights such as China, a prelude to a bigger fight over the IMF.

Europe begins a new working week on Monday with officials hoping to significantly increase flights to half the normal number and the EU discussing how to tackle the 5-day-old air travel crisis caused by volcanic ash.

More than half of private equity investors plan to put more money in emerging markets, expecting higher returns from deals in these economies than ones in sluggish western markets, a survey found.

The International Monetary Fund will raise its forecast for global growth this year to 4 percent or more as China and emerging economies pick up pace, the Nikkei newspaper quoted the head of the fund as saying.

A joint mission of European officials and the International Monetary Fund to Greece has been delayed by the volcanic ash cloud and will arrive on Wednesday if possible, Greece's Finance Ministry said on Sunday.

European officials said they hoped half of flights would operate across the continent on Monday as they sought to ease four days of airline paralysis caused by a sprawling ash cloud from an Icelandic volcano.

A renewed bout of risk aversion sent the Australian Dollar lower late on Friday night and opens the new week trading at 0.9210, having gapped lower from Friday night's closing level of 0.9250.

Goldman Sachs Group Inc saw pressure building on both sides of the Atlantic on Sunday, just two days after it was charged by the U.S. Securities and Exchange Commission.

Crisis-forged unity among the Group of 20 rich and emerging economies may be fraying before the problems they set out to address are solved.

The International Monetary Fund and World Bank said on Sunday they expect to go ahead with meetings of global finance chiefs in Washington this week despite air travel disruptions caused by Iceland's volcanic ash.

A mission of European officials and the International Monetary Fund to Greece has been delayed by the volcanic ash cloud and will arrive on April 21 if possible, Greece's Finance Ministry said on Sunday.

Germany and Britain will seek details from the U.S. Securities and Exchange Commission about the activities of Goldman Sachs Group Inc as a prelude to potential legal steps following a U.S.-led fraud investigation.

U.S. stocks will likely hit major speed bumps this week as the bears step up pressure following fraud charges against Goldman Sachs and earnings will need to clear a high bar to give Wall Street a reprieve.

Canada's biggest companies should deliver impressive earnings growth over last year's dismal first quarter, but that may not be enough to lift a market that's already near its highest level in nearly two years.

Dominique Strauss-Kahn, the French Socialist politician heading the International Monetary Fund, on Sunday sidestepped questions about whether he may seek to run in France's 2012 presidential election, saying only he was happy with his current job.

Treasury Secretary Timothy Geithner on Sunday expressed confidence that lawmakers will bridge partisan differences on the overhaul of financial regulations and pass a bill that protects taxpayers from financing future bailouts.

The head of JPMorgan Chase & Co in a German newspaper interview on Sunday turned against the possibility of stricter bank regulation and asked for better access for bankers to politicians.

Treasury Secretary Timothy Geithner said on Sunday he was confident there was enough political unity on Capitol Hill for the Senate to forge a strong financial regulatory bill despite differences over some parts of it.

Prime Minister Gordon Brown said on Sunday he wanted Britain's financial watchdog to investigate U.S. bank Goldman Sachs after it was charged with fraud by U.S. regulators.

Treasury Secretary Timothy Geithner said on Sunday he was confident there was enough political unity on Capitol Hill for the Senate to forge a strong financial regulatory bill despite differences over some parts of it.

Prime Minister Gordon Brown said on Sunday he wanted Britain's financial regulator to conduct a special investigation into U.S. bank Goldman Sachs .

The board of New York City's bankrupt Off-Track Betting Corporation voted on Saturday to continue operations for another year, just one day before a scheduled shutdown of the horse racing gambling parlors.

Iceland's government expects the economy to turn a corner in the second half of 2010 but said risks remained significant and the flow of aid from the International Monetary Fund would be crucial.