Good morning


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The headlines:
  1. More than just the Libor.

    Link: The Sibor? No – the Sdsor. 

    RBS has suspended a senior trader for attempting to manipulate the Singapore Dollar Swap Offer Rate.

    Much like the Libor, the SDSOR is set each day via a survey conducted by the Association of Banks in Singapore; and it’s meant to represent the average cost of borrowing Singapore dollars for a set period by borrowing US dollars and converting them at the spot exchange rate.

    So pretty.

    Good luck to Mr Chong Wen Kuang – although the jury is out on whether he’s real, because when Bloomberg called the RBS offices in Singapore, the receptionist could find no record of him in the global directory.

    But Singapore fines you $500 for littering, and puts you to death for smelling vaguely like cannabis. I would guess that the outcome here is going to be slightly more serious that that cup of tea and stern talking to that the Libor traders are getting from the Bank of England…

  2. Californian fuel shortages.

    Link: reminds me of the good old days.

    There are all kind of coincidental crises occurring in the Californian refineries. One lost power, two are closed for repairs, one of the oil pipelines shut down due to high levels of chloride.

    And from what I understand of refineries, “losing power” is not as simple as restarting your lap top. The refinery must run constantly, 24 hours a day, 365 a year, because fuel in one end pressures fuel out the other with all processes of extraction and by-product and such occurring in sequence.

    When you shut down, or when the power cuts out, the entire system has to be flushed and reset and here’s a diagram:

    What a refinery extraction process looks like. Simply.

    So fuel cruising up into spot price altitudes like $5 a gallon is totally understandable when a couple of refineries go down. And they’re not likely to come up too quickly.

    Can you imagine a Californian fuel queue? Here is a picture of a Zimbabwean fuel queue:

    Zimbabwe’s capital Harare has around 1.6 million inhabitants. Los Angeles has around 3.8 million. And most of Harare’s residents don’t have cars…


  3. Samsung’s record profit.

    Link: the new rebels?

    Samsung’s Q3 profits have “beaten” analysts’ expectations, as Samsung cruises on the success of its galaxy devices.

    One has to wonder whether Apple is losing its hipster/alternative/rebel edge; and they’re all flocking to the Galaxy to be all rebellious and such. Now that the capitalists have gone all mac-apple on everyone.

    Or maybe it’s because the iPhone 5 hadn’t gone on sale yet?

  4. The continuing mine strikes.

    Link: come now, South Africa.

    AngloAmerican has shut one of its iron-ore mines, and Gold One International has suspended its workers for illegally striking.

    This is in addition to two other AngloAmerican mines, all of Anglogold Ashanti’s mining operations within SA, and two Goldfields mines.

    The striking miners are torching trucks and burning tyres and openly threatening any worker that has elected not to participate in the strike.

    Why must a South African strike always result in burning a vehicle? And that was in a LEGAL strike. Honestly.

That’s all for now.

Have a good day.