Rebirth of the Financial Overlord

Vol 5 Chapter 140: What is wealth

Rolls-Royce, the Rolls-Royce company, was founded in 1906, named after its founders Charles Rolls and Henry Royce, and owns Rolls-Royce company Two major group companies with Rolls-Royce Motor Company.

But in 1973, Rolls-Royce was split into two independent companies, namely Rolls-RoycePlc and Rolls-RoyceMotorCars.

However, due to the same pronunciation, the two companies are often confused by global investors, and even the legal departments of governments of various countries whose mother tongue is English often make mistakes about the two companies.

But in fact, Rolls-RoycePlc is a well-known British engine company and the largest aero engine company in Europe. Its products include aero engines, ship engines and nuclear power plants for nuclear-powered submarines. Among them, aero engines are its prestigious fist products. The various aero engines developed are widely used in civil and military aircraft all over the world.

Rolls-Royce Motor Company is mainly involved in the automotive field. Although it still has a certain share of aero-engine cooperation, its biggest reliance is Bentley and Rolls-Royce.

The Rolls-RoycePlc mentioned by Shen Jiannan refers to Rolls-Royce Aviation Industry Corporation.

As a Chinese, William certainly would not be confused about the difference between Rolls-Royce and Rolls-Royce.

Therefore, he somewhat doubted whether his boss's brain was broken.

Under the impact of the exchange rate mechanism, the European economy is in a very bad state, and the Asian market is constantly introducing new policies, which keeps European capital flowing out and the economy is further depressed.

If the economy is not good, the probability of people traveling will be reduced, the number of airline flights will be compressed, and the demand will be greatly reduced. As an aviation launch company, 70% of the profits of Rolls-Royce come from exports. Share, now orders have been decreasing, facing a very embarrassing situation.

Not long after the Gulf War, the British people's dislike of war sentiment and doubts about military spending have reduced defense orders. In addition, they have been investing in research and development technology to compete with the US EG, and the financial situation of Rolls-RoycePlc is deteriorating.

Judging from this year’s financial report data, in the first half of the year alone, Rolls-Royce had to lay off 3,000 employees due to reduced orders to reduce expenses, with a total loss of more than 184 million pounds. Rolls-RoycePlc's share price also fell from 2.7 pounds per share to 1.65 pounds, which is a standard short-term trend.

It would be foolish to invest in such a company.

While holding the phone, looking at Rolls-RoycePlc's financial status and quotations on the Reuters screen, William had to remind his boss.

"BOSS. Rolls-Royce's financial situation looks terrible. From the signs, Wall Street and Singaporean guys have already targeted France and Sweden, and the European economy will only get worse. If we hold Ro-Ro now The Luo company’s stock, once it goes bankrupt and returns to the state, our investment may be completely wiped out."

From the recent changes in the financial market, William's words make sense.

Although, Rolls-Royce's profit last year reached 530 million pounds.

But the fact is that the European economy will only get worse, and Rolls-Royce will see little prospects for a few years.

Most of the market share in the American and Asian markets is controlled by the American EG company and Pratt & Whitney Group. In the Asian market, Mikoyan Design Bureau and Sukhoi Design Bureau are competing for market share. Rolls Royce’s main market share has always been concentrated in Europe. With European capital fleeing and the economy will only get worse, it is fortunate that Rolls-Royce can not go bankrupt, and it is impossible to make any money.

But if money continues to be invested in the financial market, it will be completely useless.

In each same market, due to currency fluctuations and policy changes in various countries, volatility may be caused. Therefore, multinational investment companies and banking institutions will hedge positions in different currencies to prevent the occurrence of systemic risks in the financial market.

With the full collapse of the British pound, under the effect of convergence, international capital shifted its target from Britain to neighboring France and Sweden, which previously raised interest rates to 500%.

Although the exchange rates of these two countries are currently stable, the high interest rates simply cannot maintain the normal operation of the economy. Will soon be overwhelmed by shorts in the market.

With the scale of assets currently held by Capital One, it is entirely possible to attack the currencies of these countries to achieve the goal of maximizing profits. In any case, it is much stronger than investing in a money-losing product like Rolls-Royce.

As the saying goes, the **** determines the head.

From the perspective of William's understanding, this is good, but for Shen Jiannan's coercion, it is another layer of consideration.

After independence, Rolls-Royce was taken over by the British Ministry of Finance. It is a 100% state-owned enterprise. The British government owns all of its shares and has been directly controlled by the government. It can be said that Rolls-Royce's status in the UK is equivalent to GM's status in the United States, and it is also the largest industrial export company in the UK.

Such a company, it is not an exaggeration to say that even the later generations of Ali, Facebook, and Apple cannot buy it with ten, although its market value is less than one-tenth of these companies.

Money can represent wealth, but wealth can never be absolutely represented by money.

Is Kuwait rich?

In Kuwait three years ago, the per capita income reached 20,000 U.S. dollars, and every household could own a car.

But under Iraq’s artillery fire, Kuwait is almost no different from a refugee camp.

Is Iraq rich?

As the world's fifth military power ~www.novelmtl.com~ and rich in resources, Iraq is not short of money.

But later in Iraq, it was not a poor jingle.

Some people say that war is a good opportunity to make a fortune and a chance to turn things around.

We can take advantage of the war to do more currencies in other countries in the financial market to achieve wealth growth and overtake.

In fact, this is absurd.

Whether it is Kuwait, Iraq or Libya, it has long been proved that if a country does not have complete sovereignty, wealth will instantly become nonsense, and currency will be as worthless as waste paper.

Not to mention the realization of wealth growth, it is simply an extravagant hope to ensure survival and preserve human dignity.

Every country in the world is exclusive.

As far as I am Chinese, I don’t have a strong backing that I can really trust. No matter how much money I make, I am afraid someday I will become a fat pig being slaughtered, and I can’t find a place to reason.

But if you can have an influence on Rolls-Royce, it's different.

With Rolls-Royce’s technological leadership in the field of aerodynamics, it is absolutely possible to add an accelerator to the biggest one. In the future, even if Mao Zi wants to be a robber again, there will be a super force ahead. Against.

"William. What is wealth?"

"what?"

"Money is nothing more than numbers. We need to capitalize on capital. When capitalizing on capital, it is constantly between capital and assets."

After all, William was a top student of the University of Hong Kong, and he immediately understood Shen Jiannan's meaning.

"You mean we control Rolls-Royce? But that's impossible."

"Why is it impossible?"

""

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