Markets: "Asian shares eased and the dollar firmed on Tuesday as unexpectedly strong U.S. factory activity bolstered expectations the Federal Reserve will soon trim its stimulus, while the yen tumbled on speculation of further central bank easing." (Reuters) (Financial Times) Obama administration tells China to scrap air defence zone procedures because of the risk of accidents, as vice-president Joe Biden began a likely tense week of meetings with leaders in northeast Asia. Ukrainian bond yields soared and the price of insuring against a default on government debt surged as tens of thousands of demonstrators continued to protest in the country's biggest political crisis in nearly a decade. (Financial Times) Meanwhile, Putin condemned the popular protests in Ukraine as "pogroms." Japan's salaries extended the longest tumble since 2010, increasing pressure on household finances as inflation begins to take root. Regular wages excluding overtime and bonuses fell 0.4 percent in October from a year earlier, a 17th straight monthly decline, according to labor ministry data released today. Total cash earnings rose 0.1 percent. China services PMI gauge falls: A government services sector purchasing managers" index for November has given a reading of 56, compared to 56.3 in October. Australia holds interest rate steady at a record low 2.5 per cent. More interestingly, the RBA also said: "The Australian dollar, while below its level earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy. Rio Tinto pledges to cut capex by at least $6bn in two years in an attempt to woo back investors dismayed by the miner's misguided investments during the resources boom. Dow Chemical plans to shed at least $5 billion worth of low-margin businesses, including the products that sparked its creation more than a century ago. If the largest U.S. chemical maker by revenue succeeds in selling or spinning off almost 10% of its business, Dow might consider dropping "Chemical" from the name it has used since 1897, Chairman and Chief Executive Andrew Liveris said in an interview on Monday." Investors invited to join forces to rein in wayward governance: An Investor Forum, a central recommendation of economics professor John Kay's 40,000-word report on UK equity markets last year, will be created to tighten checks on all London-listed companies over pay, auditing and strategy and to promote long-term decision-making. It intends to unite investors around the world to help them rein in excessive pay and mismanagement. China's yuan currency overtook the euro in October, becoming the second-most used currency in trade finance, global transaction services organization SWIFT said on Tuesday. The market share of yuan usage in trade finance, or Letters of Credit and Collection, grew to 8.66 percent in October 2013. That improved from 1.89 percent in January 2012. Gold price tumbles to lowest since July: Bullion fell as much as 2.7 per cent to $1,218 a troy ounce after a key gauge of US manufacturing activity expanded at its fastest pace in two and half years during November. If the Ukrainians turn west, not east, Mr Putin's foreign policy is in tatters (Financial Times Rachman) Multilateral versus "mega-regional" in Bali (Financial Times) Bankers" pay is falling, though not as much as it should (Financial Times editorial) Tally of U.S. banks sinks to record low (WSJ) A profitable trade: illicitly shipping BMWs to China (WSJ) Asian markets Nikkei 225 up +105.08 (+0.67%) at 15,760 Topix up +5.37 (+0.43%) at 1,264 Hang Seng down -140.22 (-0.58%) at 23,898 US markets S&P 500 down -4.91 (-0.27%) at 1,801 DJIA down -77.64 (-0.48%) at 16,009 Nasdaq down -14.63 (-0.36%) at 4,045 European markets Eurofirst 300 down -4.38 (-0.34%) at 1,301 FTSE100 down -55.24 (-0.83%) at 6,595 CAC 40 down -9.40 (-0.22%) at 4,286 Dax down -3.34 (-0.04%) at 9,402 Currencies €/$ 1.35 (1.35) $/¥ 103.31 (102.91) £/$ 1.64 (1.64) €/£ 0.8271 (0.8277) Commodities ($) Brent Crude (ICE) down -0.01 at 111.44 Light Crude (Nymex) up +0.18 at 94.00 100 Oz Gold (Comex) down -2.30 at 1,220 Copper (Comex) at 3.22 10-year government bond yields (%) US 2.80% UK 2.84% Germany 1.74% CDS (closing levels) Markit iTraxx SovX Western Europe +0.33bps at 63.31bp Markit iTraxx Europe -1.06bps at 77.99bp Markit iTraxx Xover -4.41bps at 314.48bp