Feng Yu had just returned to Hong Kong and saw Fu Guangzheng at the airport.
Feng Yu saw Fu Guangzheng's expression and knew he was not there to fetch him. Something must have happened.
"Feng Yu, the price of crude oil had plummeted!"
Feng Yu understood what was going on with this sentence.
Feng Yu leaned back in his seat and asked slowly. "How much did it fall?"
"Yesterday, crude oil had risen to 78 USD per barrel, and I thought it will break 80 USD today. But it started to fall early this morning, and it is now 76 USD. There are no signs of it recovering."
"Oh."
Fu Guangzheng panicked. What do you mean by oh? We are all suffering losses from the fall of crude oil. Why are you not worried?
This time, they did not hedge their losses, and every cent drop is a significant loss for them. How much will they lose if it falls by 2 USD?
"Feng Yu, 2 USD! The price has fallen by 2 USD! Should we hedge our losses or do the opposite? "
Feng Yu glanced at Fu Guangzheng. "How many times have I told you? Although we need to react quickly to situations in the financial industry, we should not panic all the time."
"Why didn't your eldest uncle and father-in-law call me when the price of crude oil has fallen? Why didn't He Zhaoji call me? Have you thought about these questions? "
Fu Guangzheng was stunned. "You are saying that the price of crude oil might rise again?"
"It is not possible. It is certain!" The price of crude oil is rising, and although there will be some fluctuations, it will not affect the overall situation.
Even if the price falls by 20 USD, they will not suffer any losses. It is only a matter of profits.
If they settle their contracts now, they will make more profits. But this will affect the price of crude oil. After all, they are the ones leading the way.
If they continue to hold on to these contracts, they will be able to strengthen the investors' confidence. If they settle their contracts now, the price of crude oil will fall.
If the price of crude oil falls, the USD will rise, and Feng Yu and his men will dump their USD. This will affect their plans to suppress the USD, and their losses will increase.
Feng Yu also knows why crude oil prices are rising. It is because the USD had stopped falling.
The Federal Reserve noticed that the price of the USD kept falling. Although the fall was not big, it had some impact on the US economy.
Also, they know that many speculators are dumping USD, and if they do not act, the USD's fall will not stop, and the USD's position will be replaced by the strong Euro.
In fact, there has been some talk in the international community that the Euro will replace the USD. After all, the Euro is the common currency of the entire European Union. It seems more stable.
Moreover, many European countries have long wanted to get rid of the shackles of the US dollar and replace the position of the US dollar with the Euro. They can reap great benefits.
During the period when the USD fell, the Euro maintained a very stable exchange rate. Whenever the exchange rate fluctuated beyond a certain range, it would be forcibly pulled back.
More and more countries are using Euros as their standing foreign exchange reserves. Many countries even have more Euros in their reserves than USD.
This would affect the US dollar's position as the number one foreign exchange. They would never allow that to happen.
Why is everyone dumping dollars and hoarding euros? Isn't it because the US dollar's exchange rate has fallen, causing those countries with large reserves to suffer losses?
Anyway, from their point of view, the USD and Euro's ability to withstand risks is about the same, and the Euro is more stable. Hua Xia is doing this now. She had reduced her USD reserves and increased her Euro reserves to reduce the losses caused by the depreciation of the USD.
To prevent the depreciation of the USD, the Federal Reserve decided to raise interest rates. This is to attract more countries and financial institutions to store USD and maintain the status of the USD.
Lowering interest rates will make the USD depreciate, and raising interest rates will make the USD appreciate.
But they had neglected one point. The interest rates are already very high, and if the Federal Reserve continues to raise interest rates, it will worsen the sub-prime mortgage crisis.
That's why Feng Yu doesn't think it's a bad thing for crude oil prices to fall. Instead, he thinks it's a good thing.
"Guangzheng, the Federal Reserve raised interest rates again, right? That means the US economic situation will become more serious. This is good news for us. "
"The worse the US economy is, the more money the US government will have to spend, and the funds used to stabilize the stock market will be lesser."
"Think about it. This way, we will be able to make more money in the US stock market. Also, they are worried that the Federal Reserve will raise interest rates earlier than we expected. "
Fu Guangzheng thought about what Feng Yu said and felt it makes sense.
This time, they are not only investing in crude oil. They are also investing in the US stock market.
At that time, Hong Kong's financial market had almost collapsed, and it's all because of the Americans.
Now, they have the chance to take revenge, and they will not let go of this opportunity. Furthermore, there will be high profits from this.
"Then we will not make any moves?"
"As long as we do not use higher leverage, we will not be in any risk. There is also no need to use those reserves. But we can also hedge against it. "
Hedging against it will reduce the losses caused by the fall of crude oil prices. But when crude oil prices rise, the profits will decrease, and the cost will increase.
Fu Guangzheng smiled embarrassedly: "Feng Yu, don't test me. I am not talented in this area. Anyway, you can discuss with my Eldest Uncle and Father-in-law about what to do. I will just execute it. "
Fu Guangzheng is good at retail, and all the Fu Family's descendants are good at it. This is also the earliest industry for the Fu Family.
But in the financial sector, Fu Guangzheng's two cousins are better than him. If it weren't for Fu Guangzheng's father-in-law, even if Fu Guangzheng's investments in China were successful, Fu Rongqi might not appoint him as the future head of the Fu Family.
Fu Rongqi is satisfied with Fu Guangzheng's ability to recognize his own strengths and play to his strengths.
"I will discuss with your Eldest Uncle and Professor Liang. Don't worry."
Actually, the one who should be worried is Feng Yu. Feng Yu had invested the most, and the He Family, Zheng Family, etc., had invested the most. If there are any losses, Feng Yu will also be the one who will be losing the most.
Fu Guangzheng was relieved to see Feng Yu is not worried at all. Fu Guangzheng does not need to worry about the financial sector, and he will be renewing the contracts with his European partners.
… …
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
