bank

Following this morning's flash crash in gold, in which a "fat finger" - usually a euphemism for any trade that can not be logically explained yet one which reprices a given asset class substantially lower as happened with gold - suddenly sold $2.2 billion worth of gold in under a minute, taking out the entire bidside stack, we were expecting banks to immediately come out with bearish reports on gold, piggybacking on the latest central bank-facilitiated smackdown, and allegedly allowing their prop desks to load up on the yellow metal on the cheap.

It's set to be a busy week with a a jam-packed agenda for central bank watchers, with speeches due from Janet Yellen, Mario Draghi, Mark Carney, Haruhiko Kuroda and more. Economic data may also drive momentum in financial markets, with closely watched reports due on inflation, employment, manufacturing and housing from China to the U.S. We also have GDP, durable goods and consumer confidence in US, industrial production in Japan and confidence indexes in EA

Key highlights:

Two weeks after the first, and biggest, European bank bail-in took place under the relatively new European bank resolution mechanism, the EBRD, when Spain's Banco Popular wiped out the holders of its most risky securities, including equity and AT bonds, and then selling what was left of the bank to Santander for €1 - a process that took place without a glitch -  Italy may have just killed any hope of a European banking union, when the bailout of two small banks made a "mockery" of Europe's new regulation.

With every passing day, the Fed is slowly losing the game, a point made earlier today by SocGen's Albert Edwards who wrotes that "Citizens Will Soon Turn Their Rage Towards Central Bankers."

• European stock markets stumble as oil languishes near lows (Reuters)
• Some Trump Aides Want a New Leader at the Fed (BBG)
• Goal of Saudi Shake-Up: Drag Country Into the Modern Era (WSJ)
• Under fire in Washington, Trump back in campaign mode in Iowa (Reuters)
• Revenue Slides at Some Trump Businesses, but Vegas Tower Brings Windfall (WSJ)
• Trump, new Saudi crown prince share hardline views on Iran but risks abound (Reuters)
• Canada’s Plan for Managing Trump: Go Around Him (NYT)