Inability by Yahoo CEO Jerry Yang to neither secure an advertising partnership with Google nor succeed in shopping the company to Microsoft has cost the investors dearly - YHOO shares are off by over 65% from its 2008 highs of $30 all the way to $10. Now it has cost Jerry Yang his job. Yahoo confirmed that he will be stepping down as soon as an appropriate replacement is found and that the decision between Yang, who will be staying on the Board, and the board of directors was mutual. YHOO shares finished after-hours trading up over 4%, presumably on the prospects for new leadership.

After-hours session was further highlighted by Treasury Secretary panel from WSJ's CEO Council in DC, where the current Treasury chief remarked on a broad range of issues including TARP application and auto industry. Paulson has been widely criticized for foregoing allocating additional funds to banks in relief of toxic assets from their balance sheets but defended his position by stating that illiquid assets were not the best use of funds and that the remainder will be withheld for future programs. Meanwhile, the TED spread continued to rise from recent lows back above the 2.00% level, suggesting that the "thawing" in credit activity cheered by financial markets may be reversing. Regarding the automakers, Paulson stated viability must be part of the plan amid gnawing political jostling over the nature of the bailout for the sinking industry. Paulson's likely successor Larry Summers responded to the incumbent by urging a "speedy, substantial, and sustained" stimulus, while the previous occupant during the Clinton years, Robert Rubin offered a more positive view of financial system in better shape than in September. Both Summers and Rubin are on Pres-elect Obama's economic transition team.

The Asian markets set off on a weak footing following yet another last-hour rout seen in US equities. RBA's November Monetary Policy Meeting minutes, when the central bank exceeded analyst expectation of a 50 point cut by slashing 75bps, were particularly detrimental to the Aussie index with a rather somber view of the economy and its prospects.
RBA saw continued tapering off in domestic spending, futher risks to GDP in spite of the easing action already taken, and additional pressure on business that are yet to feel the impact of recent policy moves. Additionally, Aussie central bankers saw further deceleration in activity from its regional partners - China and other emerging economies.
S&P/ASX sank by over 3.5% toward close, the lowest level for the index since September of 2004. Losses were highlighted by miners segment with BHP and Rio well reversing initial strength. Additionally, iron ore producer Mt Gibson was down over 8% on reported contraction in ore prices while gold mining notable Newcrest fell over 5% on continued rally in US Dollar.

Over in Japan, Nikkei had nearly recovered all of its early losses going into mid-session break, but comparably to US indices, gave in to heavy selling in the tail end of the trading session for an over 2% drop. Commercial real-estate sector related economic malaise with Mitsubishi estate, the nation's #2 developer, sinking 6.5% on worries over mounting office vacancies. Japan's Economic Minister Yosano remained glub on the economy's prospects for FY2009, citing the possibility of US automaker bankruptcy as detrimental to Japan. Finance Minister Nakagawa echoed that sentiment, stating that it will become progressively more difficult for the economy to rely on the export sector and calling for sustainability of domestic demand.

Taiwan't equities remained under heavy selling pressure as Taiex shed over 3% amid the ongoing softening for demand from tech export dependent nation as evidenced by poor guidance from Intel and AMD. TSMC, the world's largest contract chipmaker, said on Tuesday it had implemented a general hiring freeze amid a global economic downturn that saw its sales drop 10.6 percent year-on-year in October. In turn, Hon Hai Precision - the largest contract electronics maker - dropped over 4% on HSBC downgrade of company earnings. Taiwan's authorities continue to engineer efforts to bring the island out of the economic malaise, with the government unveiling plans to waive business taxes for entities that repatriate their offshore earnings or investment gains as well as implementing a shopping voucher plan for Taiwan's consumer sector.

In currencies, the weakness of equity markets consistently tracked by the European majors was strikingly limited relative to USD weakness seen in prior European session. EUR/USD did sell off from 1.2750 session high and test 1.26, but still remains contained by weekly low of 1. 25. Likewise, recovery in the Sterling above 1.50 was marginally reversed relative to this week's opening gap down to 1.4650. Swiss Franc decoupled from the EUR however, failing to recover lost ground while breaking out to fresh 2008 highs above 1.20. In commodity FX, AUD gave up nearly one big figure in the wake of a more dovish RBA statement that appeared to imply continued aggressive easing stance by the central bank. 0.6340 remains a key level on the downside however, negating potential technical reversal on inverse head and shoulders formation from 0.60 low. USD/CAD traded range- bound from 1.21 to 1.2450 with the Loonie consolidating recent weakness augmented by selloff in crude. Among the notable emerging Asian currency pairs, USD/SGD remained well bid at multi-month highs above 1.5250 and USD/KRW reached fresh November highs amid ongoing outflow from emerging markets.

Crude oil prices are higher by more than 1% and trading above $55.00/bbl. During the US session, oil prices declined by more than 3% and moved to a 21 month low. Crude oil prices are continuing the be impacted by the prospects for global growth and energy demand. Earlier today, OPEC lowered its 2009 world oil demand forecast, following the IEA's forecast downgrade during the prior week. Later on today, the US Department of Energy's weekly inventories report is expected to show that in the prior week oil and gasoline stocks each rose by 1M barrels, according to 1 survey. In other news, a Saudi oil tanker was seized by pirates earlier today. The tanker had the capacity to hold 2M barrels of oil, which is about 25% of Saudi Arabia's daily output. The tanker also had 25 crew members. According to recent reports, the tanker, which was initially headed for the US from Africa, has yet to be returned. Spot gold is lower by more than 0.40% and is currently underperforming oil prices on the session, as the EUR is weaker against the USD. According to one analyst, gold has lacked direction because it has been caught between being a safe haven asset and having its upside limited by the gains in the USD, as the greenback has been gaining on concerns regarding a potential global recession. With respect to the dollar's safe haven status, Japan's Finance Minister Nakagawa and the country's Ambassador to the US Ichiro Fujisaki both noted that the USD should remain as a key currency.