Good Tuesday morning. Welcome to opening bid. I'm Yahoo Finance executive editor Brian Sazi.I'm coming in hot today. I had a lot of caffeine. So, if you're in that easy peasy holiday mindset, it's time to get out of it. Get out of it now.Here are my uh five things that you need to know today. One, gold prices have hit another record and are up a sparkly 70% this year. Gold has seen 50 record highs this year.Two, copper prices have also hit another record. Copper is up 30% this year. Sure is lots of copper b ...

Group 1 - The Council of the European Union supports the European Central Bank's (ECB) initiative to explore an official digital currency, viewing it as an evolution of money and a means for financial inclusion [1][3] - The ECB is advised to impose limits on the total value held in online accounts and digital wallets to prevent the digital euro from being used as a store of value, which could threaten financial stability [2][4] - The endorsement from the Council indicates a strong alignment among EU member states regarding the design of the central bank digital currency, increasing the likelihood of legislation reflecting the ECB's approach [3] Group 2 - Concerns have been raised that allowing unlimited holdings of digital euros could lead to a significant shift of deposits from commercial banks to the ECB, particularly during financial stress, potentially accelerating bank runs [4][6] - The ECB's worries extend beyond general financial stability, as unrestricted digital euro holdings could reduce banks' deposit bases, constrain credit creation, and inadvertently tighten monetary conditions [5][6] - The design of the digital euro is intended to function primarily as a payment system rather than a store of value, with limits in place to ensure it does not compete with traditional bank deposits [7]

France’s postal and banking services disrupted by suspected DDoS attack https://t.co/kcV80pttep ...

Market Performance - The BSE Sensex declined by 42.64 points or 0.05% to close at 85,524.84, ending a two-day gaining streak [2] - The index reached a high of 85,704.93 and a low of 85,342.99 during the trading session [2] - The NSE Nifty index saw a marginal increase of 4.75 points or 0.02%, closing at 26,177.15 [2] Sector Performance - Major laggards among Sensex firms included Infosys, Bharti Airtel, Adani Ports, Sun Pharma, Tech Mahindra, Eternal, Axis Bank, and Maruti [2] - Gainers in the market included ITC, UltraTech Cement, Tata Steel, and HDFC Bank [3] Investor Activity - Foreign Institutional Investors (FIIs) sold equities worth Rs 457.34 crore, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 4,058.22 crore [6] - The market experienced broad-based profit-booking, with a lack of fresh positive triggers contributing to the flat session [7] Global Market Influence - Asian markets showed mixed results, with South Korea's Kospi, Japan's Nikkei 225, and Shanghai's SSE Composite indices closing positively, while Hong Kong's Hang Seng index ended lower [6] - Brent crude oil prices increased by 0.10% to $62.13 per barrel, indicating some support for financials and FMCG sectors [8] Future Outlook - Investors are preparing for the upcoming earnings season and are closely monitoring Federal Reserve policy expectations, with increasing probabilities of rate cuts for the January meeting [9]

Core Insights - The Thai baht has surged 10% against the dollar this year, reaching its strongest level since June 2021, primarily due to the record-breaking rally in gold prices [2][9] - Gold prices have increased approximately 70% this year, driven by central bank demand, geopolitical uncertainty, and Federal Reserve monetary easing [2] - Despite the baht's strength, Thailand's domestic economy is struggling, with the SET stock index down about 9% year-to-date, indicating economic challenges [3] Economic Context - Thailand's tourism sector remains weak, and household confidence is fragile, which typically would negatively impact the currency [4] - The surge in the baht is largely attributed to its positive correlation with gold prices rather than domestic economic performance [4] - Thailand ranks among Asia's top consumers of gold, following China and India, which supports the baht's strength as gold trading is significant in the country [5] Trade and Policy Implications - Thailand's gold exports have increased by 52% to $11.6 billion from January to October, driven by rising dollar-denominated gold prices [6] - The strong baht is raising concerns among policymakers, as it negatively affects the export-reliant economy [7][9] - The central bank governor has suggested that the gold trade should be regulated to manage the impact on the currency [8]

Core Viewpoint - Since July 1, 2017, financial institutions in China have been implementing due diligence for non-resident financial accounts under the Common Reporting Standard (CRS), with the first reporting completed the following year. Recently, tax authorities have intensified scrutiny of these institutions to ensure compliance with CRS procedures [2][3]. Group 1: CRS Due Diligence Overview - The CRS due diligence process requires financial institutions to identify the tax residency status of account holders and collect relevant tax information for non-resident accounts [3]. - All financial institutions established within the People's Republic of China, including banks, investment firms, and insurance companies, are required to conduct CRS due diligence [4][6]. Group 2: Information Collection Requirements - Financial institutions must collect and report various information, including account holder names, addresses, tax residency countries, taxpayer identification numbers, and account balances [4]. - For accounts controlled by non-residents, additional information about the controlling persons must also be reported [4]. Group 3: Compliance Reporting - Financial institutions must register for CRS and submit data through designated platforms, with banks using a centralized system and non-banks utilizing a multi-lateral tax data service platform [7]. - Even if no non-resident information is identified, institutions are still required to submit a zero report [7]. Group 4: Key Focus Areas for Tax Authority Scrutiny - Tax authorities will examine whether financial institutions have established comprehensive CRS management systems and whether these systems are effectively implemented and regularly updated [8]. - The execution of due diligence processes, including the verification of account holder declarations and ongoing monitoring of accounts, will be critical areas of focus [9][10]. Group 5: Information Reporting Compliance - Institutions must maintain accurate records for non-resident account holders and ensure timely and complete submission of annual CRS reports [11]. - Compliance with data accuracy and retention requirements is essential, including the proper handling of zero reports and the safeguarding of collected information [11][12]. Group 6: Recommendations for Financial Institutions - Financial institutions are advised to transition their CRS compliance efforts from merely meeting requirements to enhancing the quality of their processes [12]. - Regular self-assessments against CRS due diligence execution are recommended to ensure readiness for potential tax authority audits [12].

Market Overview - Futures are trading flat after a solid start to the Christmas holiday week, with major indices finishing higher. The Russell 2000 was the standout, closing up 1.34% at 2,563, indicating a rotation into small and mid-cap stocks. The Nasdaq closed up 0.47% at 23,415, the S&P 500 at 6,871, up 0.54%, and the Dow Jones Industrial Average at 48,342, up 0.42% [2] Treasury Bonds - Yields were slightly higher across the curve, attributed to year-end profit taking. The 30-year bond closed at a yield of 4.85%, with potential trading opportunities if it reaches a 5% yield. The 10-year benchmark note closed at a yield of 4.17% [3] Oil and Gas - Oil prices increased due to the blockade of Venezuelan oil tankers, concerns over Russian supply, and short covering. Brent Crude finished at $62.05, up 2.61%, while West Texas Intermediate was at $57.99, up 2.60%. Natural gas was the only loser, closing at $3.97, down 0.38% [4] Precious Metals - Gold and Silver prices continued to rise, with JPMorgan predicting gold could reach $5,055 by next year. Strong demand from retail, industrial, and government sectors, along with anticipated rate cuts in 2026, are driving prices higher. Gold closed at $4,436, up 2.26%, and Silver at $67.41, up 0.42% [5]

Core Viewpoint - The European Union has established its negotiating position for legislation enabling the European Central Bank to issue a digital euro, including an offline version that operates without internet access [1][2]. Group 1: Digital Euro Development - The digital euro will feature both online and offline payment options, aimed at maintaining the relevance of central bank money in a digital economy while preserving cash-like features [2]. - The European Central Bank has completed its technical groundwork for the digital euro, concluding a two-year preparation phase in October 2025, with future steps dependent on lawmakers [3]. Group 2: Privacy and Security Concerns - The offline digital euro allows direct exchanges between certified devices, with transaction details known only to the payer and payee, offering a level of privacy comparable to cash for low-value payments [4]. - Experts have raised concerns about the technical limitations of ensuring physical proximity in digital systems, indicating that the offline digital euro is highly private but not fully anonymous like physical cash [5][6].

Core Viewpoint - The article emphasizes the importance of not getting overly concerned with short-term market fluctuations, as it can lead to confusion amidst the noise of information [1] Market Overview - The stock market experienced a slight increase, influenced by rumors that the Ministry of Finance is considering reducing the issuance of ultra-long bonds, which were later denied [5] - The overnight overseas risk assets continued to rise, and the sentiment in the bond market remained stable, with the 10-year government bond yield fluctuating around 1.84% [5] - The central bank conducted a 593 billion yuan reverse repurchase operation, with 1,353 billion yuan of reverse repos maturing, resulting in a net withdrawal of 760 billion yuan [3] Interest Rates and Bond Market - The weighted rates for various repo codes were reported as follows: R001 at 1.35%, R007 at 1.50%, and R014 at 1.75%, with R007 showing a change of +19 basis points [4] - The 10-year government bond yield reached a low of 1.832% before slightly rebounding to 1.836% [5] - The article notes that the bond market's performance is closely tied to the actions of the central bank, particularly regarding MLF and bond purchases [5] Trading Sentiment - There is a notable increase in the premium rate for certain silver LOFs, reaching nearly 60%, indicating a speculative sentiment among traders [5] - The article suggests that many traders are optimistic about the future price of silver, with some predicting a doubling of prices next year [5]

Central Banks' Rate Cuts - Major central banks have implemented interest rate cuts in 2025 at the fastest pace and largest scale since the financial crisis, with significant easing also observed in developing nations [1][2] - Nine central banks overseeing the 10 most traded currencies lowered their benchmark lending rates, delivering a total of 850 basis points across 32 rate reductions, marking the largest number of cuts since 2008 and the most extensive easing since 2009 [2] Change in Monetary Policy Tone - There has been a notable shift in monetary policy tone ahead of 2026, contrasting sharply with the rate hikes seen in 2022 and 2023 aimed at combating inflation due to rising energy prices [3] - Analysts suggest that 2026 may see a change in direction, with expectations of potential rate hikes from several G10 central banks, particularly Canada and Australia [3][4] Emerging Markets' Rate Cuts - In December, eight central banks from a sample of 18 developing economies delivered 350 basis points of cuts, contributing to a total of 3,085 basis points of easing across 51 moves in 2025, significantly surpassing the 2,160 basis points in 2024 [6]