Reborn Financial Overlord
Page 244
Andy Smith frowned, but soon, he let go of unnecessary thoughts. His identity was just an investment manager, and he didn't have to think about anything other than the market.
"Boss. According to the European Community's exchange rate mechanism, when the exchange rate reaches the lower band of floating, the central banks of various countries are obliged to intervene in the market."
"That's right. They don't manipulate foreign exchange prices, but only intervene in the market."
Andy Smith was taken aback for a moment, wondering why Shen Jiannan's tone was suddenly sarcastic.
Shen Jiannan didn't explain, and patted him on the shoulder, making it suitable for him to continue.
"If the exchange rate price breaks through the lower band of volatility, the central banks of the member states must intervene in the market. This will be the main logic for us to make money. Otherwise, no matter how much money we invest, we will lose nothing like those idiots who shorted the ruble.
But this is also our limitation.
As a member of the European Community, Deutsche Bank will not stand idly by if the pound is hit hard. The UK itself has foreign exchange reserves of more than 200 billion US dollars. What's more, the UK is also a member of the IMF. If necessary, it can borrow a large amount from the IMF. funds.
We have no chance at all.
Secondly, it is not only the UK that needs to cut interest rates to stimulate inflation, Italy, Luxembourg and other countries also need to stimulate inflation. All member states, except Germany, need to implement lower interest rates, or even lower interest rates. I think Deutsche Bank must also support it. Despite the pressure from the major member states, if Deutsche Bank lowers the benchmark interest rate, then all the consortiums on Wall Street can only lose in a mess. "
Shen Jiannan nodded, patted Andy Smith on the shoulder without hesitation, and gave him a word of approval.
"You are right. If Deutsche Bank lowers the benchmark interest rate and truly shares prosperity with the European Community, then no one can do anything even if there is a loophole in front of us."
Andy Smith didn't answer. He knew that Shen Jiannan must have something to say.
As a true financial elite, he could feel the arrogance and arrogance, arrogance and nervousness in Shen Jiannan's bones.
It's not crazy, who dares to challenge a country's central bank.
Today's Capital One has a liquidity of only [-] million US dollars, and wanting to short the British pound is no different from touching your own neck.
But how can a person who can control an investment company with an asset scale of 20 billion US dollars be a real madman?
Andy Smith listened quietly, hoping that Shen Jiannan could convince him, and also hoped that Shen Jiannan could find out the flaws in his analysis. He was a guy who was really obsessed with currency research.
Naturally, Shen Jiannan would not disappoint him.
He let go of the hand on Andy Smith's shoulder, walked to the window, and looked out at the starry night through the glass.
At night, Canary Wharf is very beautiful. As a financial district, there is no shortage of feasting lights, fluorescent lights, and colorful colors like bright gems, embellishing the city as far as the eye can see, which is extremely beautiful.
Everyone present quietly looked at Shen Jiannan's back, waiting for his explanation, anticipation, and a different kind of excitement.
Everyone knows that once a person like Shen Jiannan opens his mouth, the reason will definitely be shocking.This top-level forager has already mastered the rules of the world.
"After World War II, Deutsche Bank had a traditional responsibility to fight inflation. To prevent the revival of populism, I think you all know this?"
What is populism?
World War II was not only a risk transfer caused by the economic downturn, but also a collective outbreak of populism.
Fluffy flowers gradually desire charming eyes.
Wealth, power, desire, self-confidence.
When any kind of thing reaches the point of expansion, that kind of psychological arrogance and arrogance, supercilious, is an extremely dangerous thing.
Money is a person's blood.
When there is enough energy and blood, a person will become extraordinarily strong, and his heart will become crazy and arrogant like a wild horse.
Just like Japan, as a defeated country, it is a shame and a lesson in itself, but since the economy developed, people have money in their pockets, and they forget the price they paid in the past.
Even the prime minister spoke wildly, mocking the United States as an inferior country, and Americans are nothing more than that.
The prime minister is like this, let alone the public. Under the guidance of media and public opinion, the Japanese have forgotten how they were defeated. Since the Plaza Accord, they have spent a lot of money all over the world in an attempt to buy the entire Earth.
Whenever someone dares to say that Japan is not good at all, they will be insulted and threatened, and even labeled as a Japanese traitor. Once, Li Daxiao was accused of blaming Japan for daring to say that the Japanese economy is about to end. The scolding is well known in Japan.
But Germany is different. As a defeated country, it has deeply absorbed its lessons, and has always been very resistant and afraid of the kind of psychological expansion brought about by wealth.
Therefore, the president of Deutsche Bank has an unwritten duty, regardless of the situation, to fight inflation as the first duty.
Bang bang bang!
Several people present could hear their own heartbeats.
The responsibility of Deutsche Bank has only been heard in legends, but Shen Jiannan said so, that is, for sure.
Well... with the current rate of inflation in Germany, Deutsche Bank probably won't really cut rates.
July is not long, at the next German interest rate meeting, if Germany does not lower interest rates.....
"If Germany doesn't cut interest rates, or even raise them, you guys think it will be fun."
"Ha ha!"
Shen Jiannan laughed wildly, showing his madness.
But no one is dissatisfied with this. If Germany raises interest rates instead of cutting interest rates, the exchange rate mechanism of the European Community will be directly smashed by Germany.
Everyone present couldn't help but get excited. If the situation develops as the boss thinks, it will be a huge opportunity waiting for him.
No one is a fool. If the capital of the whole world is mobilized, let alone the United Kingdom, the United States will not be able to handle it either.
But......
Obscenity cannot become a reality. To speculate, you must always keep your blood under your belt.
Excitement makes everyone's blood flow faster, but reason keeps everyone awake.
"Boss. But what if Germany can't bear the pressure of the major member states and cuts interest rates?"
"Carrot head. Now, you can't really bury yourself wherever there's a hole like a carrot. OK?"
Damn, what the hell is that metaphor.
Robert John secretly slandered, very dissatisfied with Shen Jiannan's title and evaluation of him, but awe could not help but spread in his bones.
"Oh Maikar. Praise God. Boss, your wisdom is like the light of God shining on the world. I finally know why you let me build a financial company."
Chapter 88 Seamless
Shameless!
Flatterer.
What a licking dog!
God, is he really a Knight of Honor.
Robert John's words made people feel that there was no integrity, and several people present couldn't help but slander in their hearts.
Such shameless flattery, even William's secretary Mary couldn't help but contort her face.
But Shen Jiannan didn't seem to realize how disgusting Robert's flattery was at all. This guy accepted the compliment calmly and showed an expression that was just like that.
Encouraged and quelled, Robert brought out his professionalism to the fullest.
"Guys. Listen to me, haven't you all noticed the Southeast Asian market? Alright! I admit, if the boss didn't remind me, I wouldn't have noticed either."
Nima!
Carrot head, can you not put any aura on the boss's head, it will make people feel very disgusting.
Several people were deeply speechless about Robert John's flattery, and even William was deeply speechless about it. If he hadn't known that Carrot Head is a dog licker, he would definitely ask this guy if he is shit. Can lick it down.
Being cheeky is one of the basic qualities of a banker.
Robert John couldn't feel the secret disdain in the eyes of the few people at all, and he said triumphantly after attracting everyone's attention.
"In the southeast, in order to absorb the capital fleeing from the Japanese market and curb inflationary speculation, the Bank of Thailand's benchmark interest rate has been around 7%, and the lending rate of commercial banks has been as high as 13.00%. The short-term overnight lending rate has even reached up [-]%.
But in terms of exchange rates, Thailand has always had a fixed exchange rate. "
Fixed exchange rate?
The few people present were suddenly startled.
The so-called fixed exchange rate does not mean that the exchange rate is completely fixed, but fluctuates around a relatively fixed upper and lower limit range of parity. The highest point of this range is called the "upper limit" and the lowest point is called the "lower limit".When the exchange rate rises or falls to the upper or lower limit, the government's central bank will take measures to keep the exchange rate unchanged.
That is to say, no matter how the exchange rate overflows and fluctuates, it will be within a fixed range with the central bank backing it up.
Andy Smith was immediately stunned. As a European currency research expert, he immediately realized something.
The long-term interest rate of the member states of the European Community has always been at [-]%. If you borrow funds from these countries to Thailand for foreign lending, it will be a huge profit.
Just like in the UK now, the exchange rate between the pound and the dollar is 1:1.857. If you borrow sterling worth one hundred dollars from a local bank in the UK and then convert it into dollars, and then convert these dollars into Thai baht to lend in Thailand, you can earn at least one year. to eight percent of the profit.
Anyway, Thailand implements a fixed interest rate, so there is no need to worry about losing money.
What concept?
The annualized income of a company with good performance is no more than this, and even the annualized annualized income of major commercial banks in the UK is no more than this.
But commercial banks are different from the central bank. Commercial banks have a limited loan-to-deposit ratio after all. The central banks of various countries have unlimited money. If you have been borrowing money from the Bank of England to Thailand, it is equivalent to... taking a country to give Loan from another country.
Andy Smith was stunned in shock, he murmured.
"My God! Why didn't I think of that."
William was also stunned by shock, and when he recalled Robert's words, he stood up excitedly.
"That is to say, we can theoretically borrow money from all banks in the UK and even the European Community indefinitely, and then wait until the German interest rate meeting in July to decide whether to sell the borrowed pounds. If Germany raises interest rates, then Mark is bound to If it becomes stronger, we can sell the Bank of England with the borrowed money. If Germany does not raise or even cut interest rates, we will not lose money at all, and we can still earn cross-market interest rates.”
Andy Smith was also very excited, he added after William's words.
"And we don't have to worry about the appreciation of the pound or other currencies at all. As long as we lock in the exchange rate between the European market currency and the US dollar, we will make a steady profit."
Andy Smith became more and more excited as he talked.
It is actually not difficult to lock the exchange rate of a country's currency. The difficulty is how to make a profit from it.
Now, here's your chance.
As long as you hold enough sterling fixed-value assets to borrow from U.S. commercial banks, you can lock the exchange rate of sterling. No matter whether the exchange rate of sterling rises or falls in the future, you don't have to worry about the depreciation of the borrowed sterling.Then use the U.S. dollars obtained from the United States to purchase U.S. dollar fixed-value assets and lend them to Thailand, and the Thai baht that is borrowed is used for lending.
Like hungry wolves, there was almost a green light in the eyes of the people present, like a mountain of green dollars, waiting for them to pick them up.
Shen Jiannan was very satisfied. It was very rare for a few people to think of the key points in such a short period of time. It also showed that this team still had a lot of room for improvement.
it's great!
Otherwise, if you are a boss and you have to plan everything yourself, it would be better to be a grandson and go back to China to build a house.
It's just that the depreciation of the British pound is inevitable, and there is no need to lock in the risk at all. It would be like taking off your pants and farting, unnecessary.
"Guys. With the UK's economy here, there's no way the pound will get stronger whether Germany raises rates or cuts rates. We, all we have to do is borrow money. OK?"
A hammer is fixed.
Now that the boss has made the final decision, who can say anything.
The night is getting deeper.
In an ancient castle-style villa in the eastern suburbs, Shen Jiannan, Yulia, and Qina were lying on the big bed, close together, feeling each other's body temperature and skin, a comfortable feeling that was very satisfying and Enjoy, as it were, the feeling of skin being nourished and hydrated.
The relationship between men and women is a topic that cannot be explained by science.
Love at first sight, love with time.
But how it happened, no one knows.
Maybe it's because of the heartbeat at that moment, maybe it's the day and night and the long-term love after the heartbeat.
Qina Kanowski's fair face was flushed, she leaned gently on Shen Jiannan's shoulder, savoring the delicacy and heat from her face, neck, waist, and legs. It's all about extreme tenderness, deep love, and infinite admiration.
If she hadn't known Shen Jiannan's real age, she would have been unable to imagine why a man who was only 24 years old would be so powerful.
Yulia Sidorov, with soft and scattered blond hair, leaned lazily on Shen Jiannan's chest, her whole body was limp, and she couldn't use any strength. She looked at those teasing eyes, and the mist did not dissipate from her. Her brown-purple eyes are full of infatuation, tenderness and slight resentment.
"Shen. I will love you to death, what should I do!"
"Do you love me to death, or almost love yourself to death."
"You bastard."
"Ha ha!"
"Shen. Are you really only 24 years old?"
"Oh Maikar. How can you say I'm 24, I'm still a baby."
"..."
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