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. It was unclear whether the US was calling on China to rescind the actual zone, or some of the procedures that Beijing said were required to be followed. (Financial Times)
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". (Financial Times)
"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." (Bloomberg)
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. (FastFT)
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." (FastFT)
Global investment banks are set to cut pay for the third year in a row despite a rise in profits, highlighting efforts to put shareholder returns ahead of employee remuneration. Nine of the largest investment banks in the US and Europe are on track to shrink their overall pay, including salaries, bonuses and other benefits, by a median of 5 per cent this year, according to an FT analysis of their quarterly reports. (Financial Times)
Daimler, Lagardère and seven current and former Airbus and EADS executives are to stand trial in France for alleged insider trading in shares of the Franco-German aerospace company. The indictment against the German car manufacturer and the French media conglomerate was confirmed by French judicial officials on Monday. (Financial Times)
The Federal Reserve on Monday approved revised capital plans from JPMorgan Chase and Goldman Sachs, allowing the banks to press ahead with share buybacks and dividends. (Financial Times)
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. The Anglo-Australian mining group said its capital expenditure would fall from $14bn this year to $11bn next year and to $8bn in 2015. (Financial Times)
BP won a big victory in its battle to limit the cost of compensation for its 2010 oil spill in the Gulf of Mexico after an appeals court called for an injunction to suspend payments to businesses that had not suffered losses as a result of the disaster. BP has argued that the compensation settlement over the spill that it agreed last year is being misinterpreted to allow businesses that have not suffered any harm to claim for apparent losses. (Financial Times)
Apple has acquired Topsy Labs, a provider of analytics about activity on Twitter, in a deal that could improve its advertising services, iTunes content recommendations or the iPhone's virtual assistant, Siri. Apple confirmed the acquisition but would not comment on its price, which one person familiar with the matter said was around $200m. (Financial Times)
Amazon has failed to persuade the US Supreme Court to review a move to tax online shoppers by New York state, which the online retailer has opposed. The case centres on the most incendiary political issue in American retail: the complaint by bricks-and-mortar stores that online rivals gain an unfair price advantage because they do not have to charge sales tax. (Financial Times)
"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." (WSJ)
PC sales will suffer the "most severe yearly contraction on record" in 2013, falling more than 10 per cent as consumers switch to tablets and smartphones, according to the closely watched International Data Corporation PC tracker. (Financial Times)
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. (Financial Times)
"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." (Reuters)
Gold price tumbles to lowest since July: Bullion fell as much as 2.7 per cent to $1,218 a troy ounce after a key gauge of US manufacturing activity expanded at its fastest pace in two and half years during November. (Financial Times)
COMMENTS & CURIOS
If the Ukrainians turn west, not east, Mr Putin's foreign policy is in tatters (Financial Times Rachman)
Multilateral versus "mega-regional" in Bali (Financial Times)
Bankers' pay is falling, though not as much as it should (Financial Times editorial)
Tally of U.S. banks sinks to record low (WSJ)
A profitable trade: illicitly shipping BMWs to China (WSJ)
OVERNIGHT MARKETS
Asian markets
Nikkei 225 up +105.08 (+0.67%) at 15,760
Topix up +5.37 (+0.43%) at 1,264
Hang Seng down -140.22 (-0.58%) at 23,898
US markets
S&P 500 down -4.91 (-0.27%) at 1,801
DJIA down -77.64 (-0.48%) at 16,009
Nasdaq down -14.63 (-0.36%) at 4,045
European markets
Eurofirst 300 down -4.38 (-0.34%) at 1,301
FTSE100 down -55.24 (-0.83%) at 6,595
CAC 40 down -9.40 (-0.22%) at 4,286
Dax down -3.34 (-0.04%) at 9,402
Currencies
€/$ 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
Sources: FT, Bloomberg, Markit
