REUTERS

Fed's Fischer says government bond buys by ECB would have positive effects: La Repubblica

(Reuters) - The European Central Bank should follow the example of the U.S. Federal Reserve and buy government bonds to prop up the tottering euro zone economy, the Fed's vice chair Stanley Fischer was quoted as saying in an Italian newspaper.

"The same arguments in favor of quantitative easing (bond purchases) that demonstrated their effectiveness for the U.S. economy are valid for Europe too. If the ECB moves in that direction, it will have positive effects," Fischer told La Repubblica daily in an interview.

Source: http://www.reuters.com/article/2014/12/04/us-fed-fischer-ecb-idUSKCN0JI0I820141204

REUTERS

Euro zone risks return to contraction, China outlook smoggy

(Reuters) - The euro zone economy may face another contraction after business activity grew less than expected in November, although more upbeat data in Asia and the United States suggested global growth should remain intact in the final quarter.

Firms across the euro zone cut prices again, which may be a topic of concern for the European Central Bank at a policy meeting on Thursday.

However, China's services sector picked up some pace in November and JPMorgan's Global All-Industry Output Index, produced with Markit, held above the 50 mark dividing growth from contraction.

Source: http://www.reuters.com/article/2014/12/04/us-global-economy-idUSKCN0JI00B20141204

BLOOMBERG

Yen's Drop Seen Bounded by Government Rhetoric as Vote Looms

The yen's slide to much beyond 120 per dollar will have to wait until after the Dec. 14 general election -- at least if the Japanese government has its say.

Officials are likely to continue verbal intervention to prevent excessive yen declines, according to Nomura Holdings Inc. strategist Yunosuke Ikeda, after the currency tumbled from about 109 per dollar in late October to a seven-year low of 119.95 today. Finance Minister Taro Aso warned on Nov. 21 that the yen was falling too fast, as it raced to its biggest monthly drop since the start of 2013, spurred by an unexpected expansion of Bank of Japan stimulus on Oct. 31.

Source: http://www.bloomberg.com/news/2014-12-03/yen-drop-seen-bounded-by-government-jawboning-as-election-looms.html