Bang!

Shen Jiannan snapped his fingers, making the audience's eyes notice him.

"Mary. Talk about the recent capital liquidity in the UK market."

"Yes, boss."

“…”

“…”

From 1982 to 1989, the British market was in a typical state of capital overcapacity, showing liquidity and real estate represented by m3. The stock price was the price of assets, and the increase rate was much higher than the increase rate of GDP and cpi. Real estate prices rose by 16% in a row within ten years, and the stock market rose by 32%.

Among them, in 1986, the excess monetary indicator em was as high as 16%, which was abnormally higher than 1.6% in 1985. In 1987, the em indicator reached a historic high of 80%.

In terms of interest rates, in 1985, the process of privatization reform drove the short-term growth of the British economy, and the CPI index also reached 6.1%. The Bank of England raised the overnight lending rate to 12.5%. However, after inflation fell to 5%, the short-term lending rate fell from 10% to 10%, and 9.5%.

In 1988, perhaps because of the crisis caused by the high speculation in the market and the flood of currency, the Bank of England raised interest rates again. In 1989, the overnight lending rate was raised to 13.5%, and in 1990, the interest rate was even raised to 14.7%.

All experienced elites present in the market. Even William has made up for relevant knowledge, so he would not understand the meaning of Shen Jiannan and Mary's question-and-answer.

The pound is seriously over-issued, and it is precisely because of the large amount of currency over-issuance that has driven the continued rise in the stock market and real estate market.

The supply and demand relationship determines the price factor. The over-issuance and circulation of pounds is huge, which corresponds to the pressure of depreciation. If you want to maintain the price of pounds, you need to raise interest rates to shrink the market circulation of pounds.

However, after the privatization reform, the British economy was mostly affected by the European Community and North American markets. As Northern Europe such as Finland and Iceland fell into an economic crisis, the UK's export industry was greatly affected, with the unemployment rate remaining high, and interest rate cuts are very needed to stimulate inflation.

Soon, Mary's story came to an end, and the huge conference room became silent.

It is obvious that the purpose of his own boss is to short the pound.

This idea is so terrifying.

The Empire of Sun Never Sets is so powerful that it once ruled almost half of the earth. Although Britain is no longer in its glory now, the lean camel is bigger than a horse, and the rotten broken ship has several kilograms of nails.

With the strength of Capital One, if you want to short the pound, it is not that an egg hits a stone, but that a mouse wants to bite the elephant to death, which is simply seeking death.

Gulu!

Andy Smith swallowed, and it was hard to speak up if he wanted to say something.

Short selling of a country's currency is tantamount to challenging the authority of a country. The United Kingdom is one of the member states of the European Community. If you want to short the pound, you are challenging the behemoth of the European Community.

MI5 and MI6 are not just a waste of money. God knows what kind of trouble it will cause.

If you succeed, you will not have good results. If you fail, you will lose your own money.

"Smith. If you have any ideas, don't be restricted."

Andy Smith couldn't help but straighten his back and spoke very seriously.

"Boss. IMHO, shorting the pound is a very stupid idea. Although there is a loophole in the exchange rate mechanism of the European Community and the current UK is no longer as brilliant as before, the Bank of England's foreign exchange reserves are as high as 24 billion US dollars, and no one can shake such a UK.

Even if we find the weakness of Britain, we can do nothing.

A lean camel is bigger than a horse. No matter whether it succeeds or fails, it is a country with complete sovereignty. If we provoke it, we will not be able to bear that consequence at all."

as a result of?

Shen Jiannan raised his eyebrows, stood up, walked to Andy Smith's back, and slapped his shoulder with a palm.

"Andy. Don't worry about the consequences. You're right, a lean camel is bigger than a horse, so don't worry at all. Now, we're talking about the market. Capital determines the price. You think, how much money we need to prepare to make money."

Andy Smith frowned, but soon he put down his unnecessary thoughts. His identity is just an investment manager and he doesn't have to think about anything outside the market.

"Boss. According to the EC exchange rate mechanism, when the exchange rate reaches the lower floating track, central banks of all countries have the responsibility to conduct market intervention."

"Yes. They don't manipulate foreign exchange prices, but they only interfere with the market."

Andy Smith was stunned, wondering why Shen Jiannan's tone suddenly felt ironic.

Shen Jiannan didn't explain, and patted his shoulder, which was suitable for him to continue.

"If the exchange rate price breaks through the lower volatility, the central banks of member countries must conduct market intervention, which 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 short the ruble.

But this is also our limitation.

As one of the member states of the European Community, if the pound is hit hard, Deutsche Bank will not stand idly by. The UK itself also has more than 20 billion US dollars in foreign exchange reserves. Moreover, the UK is also a member state of IMF. If necessary, it can borrow a large amount of funds from IMF.

We have no chance of winning at all.

Secondly, not only the UK needs to cut interest rates to stimulate inflation, but countries such as Italy and Luxembourg 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 will not be able to withstand the pressure from major member states. If Deutsche Bank lowers the benchmark interest rate, then even all the consortiums on Wall Street will only lose a lot."

Shen Jiannan nodded, patted Andy Smith on the shoulder without hesitation, and praised him.

"You are right. If Deutsche Bank lowers its benchmark interest rate and truly prospers with the European Community, then no one can do anything even if the loophole is in front of us."

Andy Smith didn't answer the conversation. He knew that Shen Jiannan must have something to say.

As a true financial elite, he can feel the arrogance, domineeringness, arrogance and neuroticism in Shen Jiannan's bones.

Not a psychopath, who dares to challenge a central bank?

Nowadays, the first capital has only a mere 300 million US dollars of working capital. If you want to short the pound, there is no difference between touching your neck.

But how could a person be able to master an investment company with an asset scale of $2 billion?

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.

Shen Jiannan naturally would not disappoint him.

He let go of the hand on Andy Smith's shoulder, walked to the window, looking through the glass at the starry night outside.

Under the night, Canary Wharf is very beautiful. As a financial district, there is no shortage of lights, wine and fluorescent lights, and colorful colors are like bright gems, which embellish the city that can reach the sight and is particularly beautiful.

Everyone present looked at Shen Jiannan's back quietly, waiting for his explanation, expectation, and a different kind of excitement.

Everyone knows that once a person like Shen Jiannan speaks, the reason will definitely be shocking. Such top-notch foraging has mastered the rules of the world.

"After World War II, Deutsche Bank had a traditional responsibility, which was to combat inflation and prevent populism from recovering. I think you all know this?"

What is populism?

World War II was not only a risk transfer caused by economic downturn, but also a collective outbreak of populism.

The flowers are gradually fascinating.

Wealth, strength, desire, self-confidence.

When anything reaches the level of expansion, the psychological arrogance and arrogantness and condescendence are extremely dangerous.

Money is the blood of a person.

When the qi and blood are sufficient, people will become particularly strong, and their hearts will become crazy and arrogant like wild horses.

Just like Japan, as a defeated country, it is a shame and lesson in itself, but since the economy has developed, people have money in their pockets and have forgotten the price they have paid in the past.

Even the Prime Minister said wildly, mocking the United States as a inferior country, and Americans are just like this.

This is true for the prime minister, let alone the people. Under the guidance of media and public opinion, Japan forgot how he was defeated. Since the Square Agreement, it has squandered a lot of money all over the world, trying to buy the entire earth.

If someone dares to say that Japan is not good at all, they will be insulted and threatened, and even labeled as Japanese traitors. Once upon a time, Li Daxiao was scolded to the point that Japan's economy was about to end.

But Germany is different. As a defeated country, it has learned a lesson deeply and has always been very resistant and fearful about the kind of expansion brought by wealth.

Therefore, the president of Deutsche Bank has an unwritten responsibility, regardless of the situation, and combating inflation is the first responsibility.

Bang bang bang bang!

Several people present could hear their heartbeat.

Deutsche Bank's responsibilities were only heard in legends, but Shen Jiannan said this, that's certain.

That... with Germany's current inflation rate, Deutsche Bank is likely to really not lower its interest rate.

It’s not long before July, at the next German interest rate meeting, if Germany does not lower interest rates...

"If Germany does not cut interest rates or even raise interest rates, would it be fun if you think it would be?"

"Ha ha!"

Shen Jiannan laughed wildly, his madness showing all his expression.

But no one is dissatisfied with this. If Germany does not cut interest rates and raise interest rates, the European Community's exchange rate mechanism will be directly crushed by Germany.

Everyone present couldn't help but feel excited. If the situation develops as the boss thinks, it would be a huge opportunity waiting for him.

No one is a fool. If the whole world's capital is moving, let alone Britain, the United States will not be able to withstand it.

But......

Fantasy cannot become a reality. When doing speculation, you must always control your blood at the waistband.

Excited, everyone's blood flows faster, but reason makes everyone continue to be awake.

"Boss, what if Germany can't withstand the pressure from major member states to cut interest rates?"

"Radish head. Now, you can't really bury yourself wherever there is a hole like a carrot. OK?"

Damn, what a fucking metaphor?

Robert John secretly complained, very dissatisfied with Shen Jiannan's name and evaluation of him, but his awe couldn't help but spread in his bones.

"Oh Maiga. Praise God. Boss, your wisdom is like the brilliance of God in the world. I finally know why you asked me to build a financial company."
Chapter completed!