manynovel #442 - Short Selling and New Turbofan Engines
#442 - Short Selling and New Turbofan Engines
"Mr. Lu Qian, are you sure you want to mortgage your assets and borrow 20 million pounds?" As a major client service manager, Pierre was somewhat surprised by Lu Qian's sudden large-scale action.
However, this is the freedom of major clients. As the handler, he only needs to fulfill his obligation to inform.
"Yes, Mr. Pierre, I am sure I want to borrow 20 million pounds with a mortgage. Given the quality of my assets, this shouldn't be a problem, right?" Lu Qian asked with a smile.
His assets are worth at least 50 million pounds, including a material company that is technically a leader in a subdivided industry. Because it is not listed, the current market sales valuation method is used, which actually undervalues it quite a bit, because the market sales valuation method does not recognize the growth rate, but only recognizes the level of your sales at the current stage and the market gross profit margin, generally giving a valuation of 2-3 times. This method is not a problem for mortgaging companies in traditional industries, because sales are relatively stable, with generally small deviations.
However, this method is somewhat distorted for new products with high technological content.
However, Lu Qian is not trying to drain the pond to catch all the fish. For him, the difference between 20 million and 25 million is not very large. He still adheres to a steady strategy, using risks he can bear to finance.
Pierre's review was very quick. After all, Lu Qian's company's account bank is in this bank, and the annual income flow and achievements are clearly visible. The credit is the most high-quality VVIP client, so there were almost no twists and turns in obtaining this batch of pounds loan.
This is not the end. In this time and space, there is no mature currency futures market yet. Lu Qian needs to take out this 20 million pounds of funds and transfer it to the bank's investment banking department as collateral. Then, he agreed to Lu Qian's request to borrow pounds with a 10x leverage, and then convert it into US dollars to continue to exist in the investment banking department. If there is an exchange rate change between the two, for example, the official price is now 1 pound to 2.8 US dollars, and the handling fee for the exchange is 0.5%. Regardless of other profits and losses, the investment banking department first earns 100,000 pounds in handling fees!
Next, there is also a 2% annual interest rate. Even if it is calculated on a monthly basis, it is another 0.167% per month. Even after discounts for VVIP clients, these two hundred million handling fees and fund borrowing interest expenses are still a considerable income. The investment banking department obviously will not stop such a large client from financing to profit from the interest rate difference.
Although this primitive currency trading model is somewhat complicated to describe, involving a currency-backed loan and an exchange deposit process, it is generally not involved for ordinary people, but for large households with capital in the tens of millions, investment banks have specialized departments with practicing managers to handle it.
In this primitive currency futures trading, if the buyer guesses the direction wrong, then naturally they will lose everything, but if they guess the direction right, they will also earn a lot.
Now that the Canal War has begun, although most people firmly believe that after John Bull and Gaul Chicken join forces, it should be easy to solve Pharaoh, so on the currency market, the multi-party and short-selling showdown of the pound does not appear to be very fierce. An obvious truth is that as long as John Bull can control the canal, then the pound will not collapse. In this case, short-selling obviously has a great risk.
Now many people think that the two Five Great Powers joining hands with a younger brother to beat a newly established colonial country is like beating a child.
Soon, the younger brother who took the lead in the charge pushed down the Pharaoh's army on one side of the canal. John Bull and Gaul Chicken regained control of the canal and bombed the Pharaoh's strategic points. The Pharaoh's army was defeated like a mountain, but everything went quite smoothly.
What was less smooth was the diplomatic aspect. The two families joined forces to come forward to do work, but it didn't work. Internationally, the two families couldn't come up with an agreement that was beneficial to themselves. Instead, they all called for them to withdraw their troops! Even the leading big brother didn't help to speak, but instead stood up and repeatedly sang the opposite tune!
This is a bit uncomfortable. Although they don't need the leading big brother to support them in military affairs, they still have no problem winning with their current strength. After all, this is a country that has just become independent and doesn't have any heavy weapons. Although they bought some tanks from the Great Goose and formed a barely passable ground armored force, it has also proved to be useless on the Sinai battlefield.
But the twists and turns in this, for the general public in the world of Bright Sword, they simply can't figure it out!
This enabled Lu Qian and dozens of other seeds of the Qianlong Project to simultaneously borrow pounds in the financial markets of several major European countries and begin short-selling operations.
Although not everyone has Lu Qian's financial strength, these dozens of Qianlong Project seeds have each shorted at least tens of millions of pounds of currency targets! Cumulatively, they have shorted more than 1 billion pounds in this wave!
As the core player in European finance, the Rothschild family was the first to discover the clues.
At the family meeting in the fashion capital.
"We have found a large number of short-selling behaviors that are bearish on the pound in recent large transactions from Amsterdam to Misty Capital, Lisbon and Faba and other investment banks. Although we do not have accurate statistics on the quantity, the amount is huge, reaching hundreds of millions of pounds or more." Anthony Rothschild said with a heavy face.
"We must suspend the transaction of shorting the pound, otherwise we will suffer heavy losses once there is a change."
Currency option transactions are actually zero-sum games. If someone earns, someone loses. The Rothschild family holds the main shares in these banks. Once the short-selling speculators succeed, then they, as the undertakers of the transaction investment bank, will bear the losses.
Therefore, for the outcome of this Canal War, although there are still some doubts within the Rothschild family, several main speakers have already prepared for this bad result.
Acquiring RIO Mining Company is only part of their precautionary measures.
Now that such a large amount of currency speculation has suddenly appeared in the financial sector, how could the Rothschild family, an ancient family that started with finance, not be vigilant!
Historically, they made their fortune by reacting sensitively to wars and predicting and buying and selling war bonds.
Don't look at the data of 1 billion pounds, which seems small today in the main world, but that is compared to the hundreds of billions and trillions after the currency flood in the main world. At this stage in the world of Bright Sword, the total foreign exchange reserves of John Bull now, the reserve of US dollars is only 2 billion!
That is to say, the US dollars exchanged by shorting the pound have now exceeded John Bull's reserve of foreign exchange!
Such a large number of transactions, even if distributed in the financial markets of different countries, has immediately alerted the Rothschild family.
You must know that this is not the era of option transactions in the foreign exchange trading market in the main world, with a daily trading volume of hundreds of billions or trillions.
Therefore, even if dispersed into such a wide range of national bank investment bank market transactions, the transaction amount of synchronized hedging short-selling of US dollars during this period is far less than short-selling of British pounds.
"I second that. In this transaction, we should only earn our transaction fees. As for market risks, we must transfer them out. I suggest immediately starting the work of exchanging the reserve of British pounds for the corresponding amount of US dollars," Catherine Rothschild, the only female director in the family council, agreed.
On the battlefield, the John Bull and Gaul Rooster coalition forces had no problems. They were as strong as ever in battle. With only double-digit casualties, they had already annihilated hundreds or thousands of enemy armed personnel, and captured tens of thousands more!
The equipment aspect of this battle is still an asymmetrical battle. Even the Rothschild family council has no objection to winning on the battlefield.
However, after the fighting started, their leading big brother, the Rogue Eagle, behaved extremely strangely. Not only did he not stand up to support them, but he didn't even show a neutral stance, and instead kept suppressing John Bull and Gaul Rooster to withdraw their troops as soon as possible!
The Misty Capital official representative holds 44% of the rights to this Suez Canal, and the remaining 56% belongs to the Gaul Rooster's large and small investors. The Rothschild family is one of the important investors on the Gaul Rooster side.
That is a canal with a huge annual income of 100 million dollars. Not only does it represent a large amount of real benefits, but it is also the most core element to show the huge control of John Bull and Gaul Rooster in the Middle East!
"I agree to transfer the risk of currency transactions. Under the current conditions, if we misjudge the exchange rate difference between these two currencies, we will undoubtedly find it difficult to bear such a result," William Rothschild also agreed.
Eating alone is of course very enjoyable if you can eat your fill, but if you burst your stomach, it would be a losing proposition. As the most important private capital force in Europe, the Rothschild family certainly would not bear the consequences of the crisis on their own shoulders.
Because in this wave of short-selling forces in the financial market, the Rothschild family has not even found an opponent.
The Cape family and Barclays are now even more conspicuous in their actions. They have now carried out currency hedging operations on their assets. In this way, from the perspective of the entire European continent, a short-selling position of British pounds with a scale of several billion has been formed!
With such a scale, the Rothschild family naturally did not dare to neglect it.
Therefore, at the family meeting, several main responsible persons quickly reached a consensus that these huge currency transactions must be hedged out.
The newest novels are first published on 69shu.com!
Yan Capital in the East.
Ren Zhong didn't take this small "speculative opportunity" seriously.
Therefore, even if the current transaction information was fed back from several major trading markets in Europe, Ren Zhong did not react.
What he is concerned about now is the birth of the first aero turbofan engine.
In the main world timeline, the company that developed the world's first practical turbofan engine—the RB.80 "Conway"—was John Bull's Rolls-Royce! They made a great historical contribution to the human aviation history of Blue Star, and from then on, Blue Star aviation began to enter the turbofan era.
However, unlike the extravagant Rogue Eagle who never lacked money during the Cold War, only fearing that things would not work, the development process of the RB.80 Conway was full of twists and turns, clearly seeing the dying and decadent scene of the British Empire. The initial plan of the RB.80 Conway was to be equipped with the "Valiant" Mk.2 bomber. As early as January 1950, Rolls-Royce completed the design of the Conway RCo.2, but the improvement plan of the Valiant bomber was cancelled, and this engine was shelved.
Later, the Royal Air Force re-established a project to develop the V-1000 large jet strategic transport aircraft. Rolls-Royce developed the RCo.5 based on the Conway RCo.2. As a result, around 1956, the Royal Air Force cancelled the V-1000 project again!
When Rolls-Royce heard about the project being cancelled again, their heads were buzzing and they were at a loss. After some efforts, they promoted the Royal Air Force to re-establish the project and decided to use this turbofan engine to improve the Victor bomber. Based on this plan, Rolls-Royce developed the RCo.8 with greater thrust. This time they finally succeeded, but due to funding issues, the number of installed engines was quite limited, and this top-notch aviation engine at the time did not have much use.
The real blossoming and fruiting of the RB.80 Conway was the breakthrough in the North American civil aviation market. In 1960, TCA Airlines of Maple Leaf Country proposed to purchase Boeing 707 or Douglas DC-8 equipped with the RB.80 "Conway" because they found that such a Boeing 707 was faster and consumed less fuel, which was great for aviation. With the help of this unexpected boost, the Boeing 707-420 equipped with the RB.80 Conway allowed civil aviation to enter the turbofan era from then on.
However, North America's keen aviation engine opponents were not idle either. Boeing and Douglas's breakthrough applications in turbofan engines allowed everyone to see the future development trend of aviation engines. This gave General Dynamics and Pratt \u0026 Whitney two major demonstrations, and they immediately expressed strong interest in turbofan engines and began to catch up with all their strength.
Soon they came up with their own turbofan engines, making Rolls-Royce, the leader, quickly become Mrs. Cow. Even if they developed the RCo.11 with increased air flow on the basis of the RCo.8 under the urging of customers, they did not recover the dominant position of engines on Boeing and Douglas aircraft! After the Pratt \u0026 Whitney JT3D started delivery, Boeing and Douglas naturally had no reason to give Rolls-Royce more opportunities.
The first practical aero engine in the Liangjian world also has a close relationship with John Bull. The core prototype comes from John Bull's RB.168 "Spey"!
This aero engine developed by Rolls-Royce in the 1960s in the main world can basically be regarded as the pioneer of the second-generation turbofan engine. Although the indicators are somewhat different from the famous engines in the main world, the basic model parameters of the RB.168 Spey engine are 5025 mm in length, 1093 mm in diameter, 1850 kg in weight, a maximum thrust of 54.5 kN, an afterburning thrust of 91.1 kN, and a thrust-to-weight ratio of 5.05, which is not competitive in the modern world.
However, compared with the turbojet engines at the time, it has the characteristics of large thrust, low fuel consumption, good maintainability, and long service life. This engine not only performs well in performance, but also has high reliability and strong adaptability, and can be widely used in different aircraft models, from fighters, interceptors to attack aircraft, and even airliners! It is simply a panacea in the aviation industry!
Ren Zhong was able to obtain the main design of this outdated engine with the help of the main world, so that it could be reproduced in the Liangjian world!
Spey engine
BAC1-11 airliner loaded with Spey engine (End of this chapter)