By Marc Jones LONDON (Reuters) - Risk appetite flickered back into life in financial markets on Tuesday with the dollar and European and Japanese shares rising while safe-haven bonds, the yen and gold all took a step back. The dollar rose to its highest since January against the yen and the euro sank to a one-year low against the greenback as another drop in euro zone producer prices heightened speculation about what the ECB will do when it meets on Thursday.
By Eva Taylor FRANKFURT (Reuters) - Expectations for further policy action at the European Central Bank's meeting on Thursday are running high after ECB President Mario Draghi pledged to use all available tools to keep prices in check. Draghi told a central bank conference in Jackson Hole on Aug. 22 that financial market inflation expectations were falling significantly and the ECB would use "all available instruments needed to ensure price stability". In a dramatic departure from debt-cutting orthodoxy, he also said there was scope for fiscal policy - more government spending - to play a greater role in reviving growth, an apparent acknowledgement of the limits of the ECB's powers.
McDonald's Corp will increase the number of audits it conducts of suppliers in China, the firm said on Tuesday, after a food scandal in July dented China sales at the U.S. Industry insiders had told Reuters that suppliers in China often knew about audits in advance. McDonald's will push for more video monitoring at its Chinese suppliers and send more quality control specialists to all meat production facilities, it added. The firm has also created a new role to oversee food safety governance in China and will launch a hotline later this year for whistleblowers to report food safety issues.
House Majority Leader Eric Cantor will join investment bank Moelis & Co as vice chairman and managing director, the company said, adding that Cantor will also be elected to its board. Cantor, who was defeated in June by a Tea Party challenger in a Republican primary election, will provide strategic counsel to the company's corporate and institutional clients on key issues, Moelis said. "Eric has proven himself to be a pro-business advocate and one who will enhance our boardroom discussions with CEOs and senior management as we help them navigate their most important strategic decisions," Moelis CEO Ken Moelis said in a statement. Cantor, the No.2 Republican in the House of Representatives, was beaten by college economics professor David Brat, who accused Cantor of betraying conservative principles on spending, debt and immigration.