Global- South America and Africa are also clearly recovering, but private demand in the United States, Japan and Europe remains weak. Strauss-Kahn also said he expects China to move on currency policy at some point, as the Yuan is undervalued and allowing the currency to rise would benefit China.

 

The IMF sharply raised its estimates in January, predicting that the world economy would expand by 3.9percent in 2010, much higher than the 3.1percent it projected last October, with the pace picking up to 4.3percent next year.

 

The International Monetary Fund has proposed two new global taxes on banks and other financial institutions to cover the cost of future bailouts, according to the BBC.

 

The measures would see all institutions pay a bank levy as well as a further tax on profits and pay, which would aim to protect against future financial meltdown. Insurers, hedge funds and other financial institutions would also be required to pay the taxes under the IMF proposals, despite the fact they were less implicated in the recent financial crisis.

 

This was to prevent banks reclassifying activities they currently carry out as other services, such as insurance or hedge-fund services, in an effort to avoid the levy. The general levy, called the "financial stability contribution," would start at a flat rate but would eventually be changed so businesses judged to be riskier paid more.

 

China - Central bank governors in India and Brazil backed a stronger Chinese Yuan, siding with U.S. President Barack Obama before a meeting of the Group of 20 nations this week. Exports from China to India have grown faster than Indian shipments to its northern neighbour "and that obviously is a reflection of differences in the exchange-rate management" Reserve Bank of India's Duvvuri Subbarao said. Brazil's Henrique Meirelles told a senate hearing on Tuesday that it was "absolutely critical" that China should let its currency appreciate.

 

Yuan forwards strengthened, halting a two-day drop, on speculation the Group of 20 nations will call on China to allow its currency to strengthen at a meeting this week in Washington.

 

The U.S. will take action over the Chinese currency, possibly by bringing a case to the World Trade Organization, should multilateral pressure fail to work, House Ways and Means Committee Chairman Sander Levin said on Tuesday.

 

China - China ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging "abnormally high" prices, stepping up efforts to prevent a property bubble. The focus on developers' sales tactics adds to curbs on loans for third-home purchases, increased down payment requirements and higher mortgage rates announced in the past week. China's cabinet has said stricter measures to control speculation are needed after property prices in 70 cities jumped a record 11.7percent in March.

 

India - India's central bank raised interest rates for the second time in a month and ordered lenders to set aside more cash as reserves, seeking to slow the fastest inflation among the Group of 20 nations. The Reserve Bank of India has boosted the three policy rates by a quarter point.

 

Japan - Morgan Stanley raised its investment rating on the Japanese banking industry to "attractive" from "in-line" citing the outlook for lower credit costs as the global economy recovers.

 

The current trend of credit costs is in line with the brokerage's bull-case forecast. If credit costs continue to drop in line with its bull-case assumptions, a 10percent return on equity should be possible for banks, Morgan Stanley said in the report. Sustainable recovery in the economy should accelerate a drop in credit costs, according to the statement.

 

Russia - Russia's recession "is over" and the economy is likely to grow more than the government's 3.1percent forecast for this year, Prime Minister Vladimir Putin said. The government spent more than 3tn Rubles (USD103.1bn) last year on "anti-crisis" measures, including state guarantees on loans and funds earmarked to support the financial industry by the central bank, Putin told lawmakers in Moscow on Monday.

 

The economy of the world's biggest energy exporter contracted a record 7.9percent in 2009, marking Russia's hardest year since its 1998 default, according to President Dmitry Medvedev. Putin said his government raised spending by 27.3percent last year to help tackle the crisis.

 

Germany - German investor confidence jumped in April, beating economists' forecasts, as falling unemployment and a weaker euro improved the economic outlook.

 

The Mannheim-based ZEW Center for European Economic Research said its index of investor and analyst expectations rose to 53 from 44.5 in March. It was the first increase in seven months. Germany's benchmark DAX share index has advanced 3percent in the past month as economic growth, which stalled during the coldest winter in 14 years, shows signs of gathering pace.

 

Australia - Concern that Australia's mining boom will stoke inflation was a key reason the central bank raised borrowing costs toward "more normal levels" two weeks ago and signalled further moves in 2010, policy makers said.

 

Australia's policy makers also "noted the significant discussion during the month about the possibility that the Chinese authorities might soon allow some appreciation of the Yuan against the U.S. dollar".

 

Currencies - The Yen weakened against its 16 major peer currencies including the Australian dollar, as optimism that the global economic recovery remains on track dented demand for the relative safety of the Japanese currency.

 

Australia's dollar gained after the central bank said concern a mining boom will fuel inflation spurred policy makers to raise interest rates this month.

 

Commodities - Copper may fall on concern about the outlook for demand as China, the world's biggest consumer, takes more steps to control economic growth.