Slick Spikes…Boiling Buses…

Slick Spikes…Boiling Buses…
Apparently a rogue trader was responsible for the spike in oil prices this week – to a year high at $73.38/brl – the short-lived impact, one hour to be precise (certainly positive for the Middle Eastern oil nations sensing an attempt to move closer to the $80/brl level) sent volumes soaring and someone somewhere is smiling – but I actually thought the spike in the oil price was down to the revelation that London buses (in some mad manoeuvre by transportation authorities in London) are operating heaters even when temperatures outdoors are reaching a sweltering, and absolutely non-London-like, 31 degrees Celsius!
As if it wasn’t bad enough being stuck in a crowded bus in the muggy heat, travellers are forced to huddle together in one corner, seeking respite from the heaters, waiting and wanting to feel that brief wisp of air breezing through the tiny crack of an open window. The excuse? London buses were not “designed” to have the “option to switch the heater off” – hmmm, anyone believing that would conclude clever lobbying by the evil oil industry, influencing bus designs to ensure maximum oil consumption. Or, simply those that design buses are unfortunately not the smartest engineers out there – those guys all work on worthy and necessary projects that benefit the public – like creating the Bugatti Veyron super-car - sales of which are apparently rising across London, not surprising really considering the sheer amount of disposable wealth circulating in the city of London and the rumour that the Veyron’s air-conditioning system is the best out there – what better way to deal with the London heat huh?

With the lack of air-conditioning and general hustle-and-bustle of the city not catering in the slightest bit to any form of heat, 31 degrees feels more like 40. Not sure what was more shocking, the absolute shambles (but still great fun and wonderful atmosphere) London becomes, or finding myself actually yearning for the cool haven of a Dubai-style shopping mall (I did say it was shocking!) – what is it again they say about grass (fake grass in Dubai’s case of course) and the other side?

Market Fireworks…
With US markets closed for Independence Day ahead of celebrations tomorrow (happy 4th July!), volatility across markets in Asia and Europe have steadily risen since the close last night on thinner liquidity. After what looked like a sell-off ahead of the long-weekend so money-managers could watch the fireworks without worrying about their portfolios and open positions, Asia’s markets actually managed to hang onto some early gains in the majors, with Hong Kong and China once again leading the way (avg. +1.2%), and some pockets of positive performance (India +1.7%). It has become clear emerging market economies are now accounting for the bulk of equity trading - MSCI comprise 24% of world market capitalisation. Interest is at an-all-time-high amongst investors chasing yield and looking for any good-looking story about developing nation growth etc. – problem is, when information like this gets published it normally marks the correct time to make a move in the other direction.

Gas-sale…
Qataris, I hear, are selling their cars in spades at the second-hand market, a normal occurrence ahead of the summer-car-swap-before-invading-London-spree. This year though, the market is revving up as supply swells with a combination of those unfortunately finding themselves without jobs and the usual I’m-really-bored-of-the-clutch-on-this-Ferrari story forcing prices lower than normal.
A slight surprise following all the talk (here especially) of how strong and immune the Qatari economy has been in the face of the global economic melt-down. Or it may simply be an extension of last summer’s experience, where many young Qataris found their cars confiscated on their return from the summer holidays, hence this year forcing the raising of cash at home to simply finance a new-car purchase over in London/Cannes/Marbella – a good time invest in those car dealerships.