Chapter 817 Profit Settlement(1/2)
The next market, as most people expected, continued to plummet and decline after a brief rebound, and the financial crisis penetrated into the real economy, resulting in the breakdown of financing channels of countless enterprises and the internal capital chain being in a hurry, and large-scale layoffs were required to reduce production expansion.
Business difficulties in enterprises and the surge in social unemployment.
This has also led to a decline in global market demand, unsalable products and further reduction in production.
This situation is very similar to the Great Depression in the 1929 and 1930s, which caused countless economists and financial institutions to shout loudly, hoping that governments of various countries would provide more economic stimulus and financial aid programs to rescue the global economy that is sliding into the abyss of recession.
In the face of joint appeals from all parties, and in a substantial and serious crisis.
Countries have begun to formulate more economic stimulus plans, turning short-term aid means for the financial crisis into long-term stimulus means.
On October 15, the C7 Financial Conference and the G20 Economic Conference were held.
All countries at the meeting expressed their intention to take special emergency actions to deal with the global credit crisis and proposed a series of plans including preventing the bankruptcy of important financial institutions and thawing the credit and money markets.
On October 18, the heads of 15 countries in the euro zone held their first ever summit in the euro zone in Paris.
The summit adopted an action plan that agreed to governments to provide guarantees for bank refinancing and direct capital injection into banks.
On the same day, the Australian federal government introduced three measures, namely, guaranteeing the financing of all Australian banks in the international financial markets, guaranteeing the full payment of all and deposits from financial institutions such as Australian banks and other financial institutions within the next three years, and guiding the Australian Financial Management Office to purchase Australian dollar residential mortgage payment securities.
On the 19th, the Reserve Bank of New Zealand and the Ministry of Finance jointly announced that it would provide guarantees for all retail deposit debts of all banks and non-deposit institutions registered in New Zealand.
On the same day, the British government announced that it would inject capital into domestic banks and the Housing Mortgage Association.
On the 20th, Fdic announced that it would guarantee the newly issued unsecured priority bonds of banks, saving institutions and special holding companies and provide full insurance for all interest-free loan trading accounts.
On the 21st, EU member states reached an agreement on a pan-European emergency financial rescue plan with a total amount of 1.7 trillion euros.
On the 22nd, US President Bush announced that he would use US$250 billion to directly acquire stocks of large financial institutions, including Citigroup, which will first inject US$125 billion into nine major banks. On the same day, the Federal Reserve Board announced that it would launch a financing mechanism for money market investors to provide liquidity to money market investors and alleviate the huge pressure on the short-term debt market.
On the 23rd, Fidc released the rules of the temporary liquidity guarantee plan, providing guarantees for nearly $2 trillion in bank bonds and savings deposits.
On the 24th, Imf announced an intention with Ukraine, which will provide Ukraine with a loan of US$16.5 billion to help it stabilize its economic and financial system.
On the 25th, the British Ministry of Finance announced the establishment of British Financial Investment Co., Ltd. to manage the government's shares in commercial banks.
On the 26th, Malaysia and Chile announced their economic growth plans, and German President Merkel approved the economic stimulus plan to cope with the impact of the international financial crisis.
On the same day, the Federal Reserve stated that it would approve American Express and American Express Travel related service companies to become bank holding companies; the U.S. Treasury Department announced that it would purchase Aig's $40 billion senior preferred shares as the content of a comprehensive aid program for Aig.
On the 27th, the g20 Financial Markets and World Economic Summit closed in Washington. The meeting reached an agreement on strengthening cooperation between the international community, jointly responding to the financial crisis and supporting economic growth, and called for reform of the world financial system to prevent similar situations from happening again.
On the 28th, the Chinese Ministry of Finance’s 4 trillion Chinese currency economic stimulus plan was introduced...
In one month, in the fierce unilateral trend of the market, countries around the world finally used all the means they could use to rescue the market in a comprehensive manner due to the destruction of the financial crisis.
"Chairman... here, it should be almost the bottom, right?"
In the trading room of Hong Kong City, the Bentayga Capital, Luo Yunfeng looked at the Dow Jones Industrial Average, which had reached 8,000 points and the domestic A-shares that were already at 1,700 points, and said: "For the past month, governments around the world have been actively rescued. Now under the credit endorsement of governments, the crisis of various large financial institutions has been completely lifted, and the market valuation has also fallen back to its historical lowest level. The darkest moment should have passed, right?"
Su Yue looked at the global market that had fallen without a loss, and he looked terrible.
He nodded with a smile and said, "The impact of the financial crisis is long-term. Whether it is the bottom depends on the recovery of global economic fundamentals under the economic stimulus of various countries. However,... the emotional sell-off is almost over here. The subsequent... should be the slow bottoming stage of economic fundamentals."
"The cards from various countries have been almost done here."
"The crisis of large financial institutions has been completely curbed, and the global financial order will be re-established under the leadership of governments of various countries. At this point, all the short orders in our hands... it is time to withdraw all."
Su Yue said, looking at the huge profit figure accumulated on the main control computer account interface.
I was very satisfied in my heart.
From entering Wall Street in early July to the end of October.
It has been 4 months since he led the Bentayga Capital Group to gather all its capital to short the global financial trading market.
In the past four months, the world has undergone earth-shaking changes.
Many financial giants and world-class enterprises collapsed, countless industries experienced severe turmoil, and countless wealth transferred or evaporated and annihilated.
Too many people lost their money and had nothing.
Too many people are heavily in debt overnight and lose the wealth accumulated throughout their lives.
"Okay!" Luo Yunfeng responded, "Our short positions in wti crude oil futures, stock index futures and foreign exchange markets are currently only 30% of the peak, and all of them can be withdrawn in a maximum of one week."
Su Yue nodded and began to instruct the London branch and the New York branch, as well as the Far East Bank investment department.
Make full appearance of short orders and liquidation plans.
At the same time, he also notified the Chinese state-owned capital team that followed Bentayga Capital to cooperate in short selling, as well as the many domestic capitals that followed the trend and short selling, so that they could take the opportunity to enter the short orders that had not yet appeared.
It’s just the Chinese state-owned capital team and many domestic capital that follow the trend and short sellers.
I simply couldn't wait patiently until the market reached this stage, and I returned to the market as early as early October.
There is even one of the Hong Kong-funded companies called "Yunteng Capital", after appearing, they turned their hands and went long and buried it in the market. Not only did they lose all their previous profits, but their principal was also lost by more than half.
This proves that in the financial trading market, there is no self-sight and insufficient self-ability.
Even if you get guidance from others and make a fortune by chance, as long as you still trade in the market, then... the profit you earn will most likely be returned to the market in the end.
On November 12, the trading centers of various departments of the Bentayga Capital.
After almost two weeks of final closing time, all short orders from each department regarding the global financial trading market have been cleared.
On Thursday, November 13, Su Yue held a global internal meeting of the "Bentay Investor Capital" group in Ningzhou.
Core executives of various departments in China and several directors of the group were present in full swing. Core members of various departments of the London branch, New York branch, and South Africa branch participated in the video format.
"Ma Fujun, Miss Dana Yunis, let's talk about your situation first!" Su Yue asked lightly.
The purpose of this meeting is to count the profits of each department and liquidate the net value of the fund; the second is to integrate the assets and resources acquired by each department of the Bentayga Capital this time during the financial crisis; and the third is to discuss the next strategic investment deployment and development goals of the Bentayga Capital Group.
Dana Yunice first reported: "Our trading center, under the guidance of your chairman for several months, has made its investment profits. Its current net value has reached 445.23%. The amount of funds, except for the expenditure of US$12.5 billion, the balance is US$25.5 billion."
"The balance of this $25.5 billion is about $2.5 billion, and the stock market long positions are around $2.5 billion, and the remaining cash is $23 billion."
"Good!" Su Yue responded and continued, "Tell me about the $12.5 billion expenditure project!"
The London branch earnings figures were better than his expectations, and Dana Yunis performed better than his expectations throughout the financial crisis.
Ma Fujun coughed slightly and continued: "With the approval of the chairman, some of the asset management businesses of the two giants, including Rand Securities and Yingjie Investment, have been acquired by us, with a total cost of US$4.5 billion. For the rest, we participated in Rio Tinto Group's sale of all equity shares of its subsidiary, Northern Australia Mining Company, with US$6.5 billion of funds, which have been allocated from the trading department to a special investment account."
"How much hope is there to take down the entire equity of Australia Northern Mining Company?"
Su Yue asked expectantly.
Ma Fujun thought for a while and said, "Roy Tinto Group tried its best to acquire Canadian Aluminum Corporation when the financial crisis broke out, making itself the largest aluminum group in the world. However, after the outbreak of the financial crisis, especially after October, commodities plummeted continuously, and they had some indigestion."
"Originally, Rio Tinto Group sold Northern Mining Company to reversal cash flow, let itself survive the situation where commodity prices are cut in half and losses are gradually expanding."
"We invested $6.5 billion, or an all-cash acquisition."
"Compared with the target of Northern Mining Company, even before the financial crisis and the global asset value system collapsed, it could be considered a 50% premium."
"I think during this period, iron ore and aluminum prices are still plummeting. We have no resistance to the acquisition."
"That's good!" Su Yue smiled, "It's best to complete this acquisition at the end of this month to avoid the long night and dreams."
Australia Northern Mining Company is a relatively important iron ore company of Rio Tinto Group in Australia. Its company owns two of the five most important iron ore mines of Rio Tinto Group.
If we can take this opportunity to win Northern Mining Company and divide Rio Tinto Group.
Then... in the future, the domestic steel industry will not be so passive in the iron ore field and will be controlled by the three iron ore giants.
This is the lifeblood of resources and a means to check and balance other giants in the industry in the future.
If there is a possibility of success, Su Yue will never miss this acquisition opportunity.
"Okay, Chairman." Ma Fujun responded hurriedly, "I will urge Rio Tinto Group to let them pass the review of this acquisition case as soon as possible. After all, from the current negotiations, we have a huge amount of cash and still have a relatively large initiative. Several other giants in the industry cannot afford our price, nor do they have the ability or leisure to expand in a situation where the world is likely to usher in deflation."
"I have enough confidence in the success of this acquisition."
Su Yue nodded and stopped discussing this topic. Instead, he asked the New York branch: "Manager Chen, report on the achievements of your trading center in the past few months!"
Chen Yuhe responded and said with a smile: "Report to the Chairman, after deducting the profits of the 6 billion US dollars of funds supported by the Group and the 9 billion US dollars of funds supported by Far East Bank, our fund is currently profitable, totaling US$79.2 billion, and the net value of the fund is 583.11%.
"Among them, the stock market bulls have currently built a total of US$182, involving 58 stocks."
"The branch's Market Investment Department spends $20.6 billion, and the current profit balance is $40.4 billion. Including the principal amount when it first entered New York, the total balance is $52.9 billion."
Chen Yuhe's voice was loud. In the entire conference room, all the core executives, directors, and several core backbones of the Gangcheng Branch were shocked when they heard the profit summary.
At that time, 50 billion Chinese currency went overseas, plus the billions of US dollars in the South African branch, it was only more than 10 billion US dollars.
In just four months, with such a large amount of capital, it can still generate nearly US$80 billion in profits and 6 times net value data.
This performance report is simply incredible.
Su Yue nodded slightly, but his reaction to this was plain. After all, the entire investment plan of the New York branch was implemented under his guidance.
From subprime loan conversion bond futures trading market, to wti crude oil futures market, to foreign exchange market, stock index futures trading... After a few months, they have reached the market rhythm every time and won a big victory in all respects... If they still cannot obtain this profit data, then Su Yue's rebirth advantage and his previous life and more than ten years of financial trading market experience in this life can be considered wasted.
"Mr. Cui, please report on where the 20.6 billion US dollars spent by the Market Investment Department!"
After asking Chen Yuhe, Su Yue continued.
Cui Xianshi nodded and said, "We acquired Lehman Brothers' global securities brokerage business and global personal asset management business, which consumed a total of US$16.5 billion, and the remaining US$4.1 billion. It was mainly based on your guidance from the Chairman, and invested in some technology companies on the verge of bankruptcy in Silicon Valley, as well as manufacturing companies that have suffered the most in the crisis. There are many lists of companies in this part of the investment. I will organize a special document and send it to the Chairman and the Group Board for deliberation."
"Oh... Regarding the various financial assets we acquired, including many commercial bank equity, except Lehman Brothers Securities brokerage and personal asset management business, we have transferred them all to Far East Bank in accordance with your instructions from the Chairman, and Far East Bank has also paid the transfer funds for the relevant subject matter."
"This part of the funds has been transferred from the Market Investment Department to the Trading Department and has not been calculated in the current market investment projects."
To be continued...