Reuters

Xiao Gang, chairman of China's securities regulator, has offered to resign amid ongoing turmoil in the country's equity markets - turmoil which he says stems from "inexperienced investors, an imperfect trading system and inappropriate supervision mechanisms." 

Italian bank stocks are crashing (with BMPS down 40% year-to-date) as Reuters reports that investors are growing increasingly nervous about how the sector will cope with lower interest rates and a 200 billion euro ($218 billion) pile of loans that are unlikely to be repaid. The broad banking sector is down 4% with stocks suspended, and in light of this bloodbath, Italian regulators have decided in their wisdom, to ban short-selling of some bank stocks (which has driven hedgers into the CDS market, spking BMPS credit risk).

On the heels of new reserve ratio regulations and the biggest strengthening in the Yuan fix in 4 weeks, offshore Yuan has strengthened notably (despite Chinese default/devaluation risk surging in the CDS markets). Chinese stocks are weaker in the early going but corporate bond yields continue to slide to new record lows as the "last bubble standing" stands ignorant of the risks around it.

It is the “Core of the Core” that now concerns us the most. That is where Federal Reserve (and global central bank) policies have left their greatest mark. It is at the “Core of the Core” where momentous misperceptions and market mispricing have become deeply entrenched. It’s the “Core of the Core” that has attracted enormous amounts of “money” over recent years. It’s also here where I believe leverage has quietly been used most aggressively. Over recent years it became one massive Crowded Trade. Now the sophisticated players must contemplate beating the unsuspecting public to the exits.

U.S. + EU will begin lifting nuclear-related sanctions, expanding the horizon of opportunity for the Iranian people.

— John Kerry (@JohnKerry) January 16, 2016

"Why has public opinion changed so much? How did our party misread public opinion? We failed. The Nationalist Party lost the elections. We didn't work hard enough."

"There have been complaints of sexual harassment and chatting-up going on in this swimming pool ... by groups of young men, and this has prompted some women to leave (the premises). This led to my decision that adult males from our asylum shelters may not enter the swimming pool until further notice."

For the first time in three years and before that the recession, the total volume of freight moved by road, rail, pipeline, inland waterways and air has fallen Y/Y. Meanwhile, on the high seas, the Baltic Dry has collapsed under 400. 

• Crude sinks 4 percent as market braces for more Iranian oil (Reuters)
• Plunge in crude oil prices send stock futures sliding (Reuters)
• Oil Slides, Deepening Gloom in Stocks as Bond Buyers Celebrate (BBG)
• China Stocks Enter Bear Market, Erasing Gains From State Rescue (BBG)
• Friendly no more: Trump, Cruz erupt in bitter fight at Republican debate (Reuters)
• Dollar in Best Run Since July on Haven Bid Even as Fed Odds Fall (BBG)

It's been a roller coaster year for China's legions of semi-literate day traders who have seen the heights of feast and the depths of famine with Chinese equities over the past 12 months. Now, in the wake of more volatility, many Chinese retail investors are throwing in the towel. 

For the banksters, one “free” gold market would be one too many.

At Berkshire’s annual meeting last May, Buffett said he made “no apologies whatsoever” about Clayton’s “exemplary” lending, in response to a question about an earlier Seattle Times story saying that Clayton trapped borrowers into unaffordable loans on depreciating homes. Well it seems the billionaire will need to send some more donations in as yesterday, four members of Congress sent a joint letter demanding an investigation into predatory practices at Warren Buffett’s mobile home unit Clayton Homes.

• Islamic State launches militant assault on Indonesia's capital (Reuters)
• Three winners emerge in $1.6 billion Powerball jackpot (Reuters)
• European Stocks Tumble, Credit Markets Weaken on Growth Concern (BBG)
• Stocks and commodity currencies floored by new oil plunge (Reuters)
• China Bear Market Looms as PBOC Fails to Stop Flight to Safety (BBG)
• Anxious phone calls, tense moments before Iran's Supreme Leader okayed U.S. sailors' release (Reuters)