Chapter 851: Cutting Flesh

Liúchuān Shùrén had also considered this, and his face had become even more unpleasant as a result.

His heart continued to sink.

Since G·S·Huabao is short selling and is blatantly targeting their Sumitomo Trading, then with the greedy face of the Jews, they will never let go until they have taken several big bites out of Sumitomo Trading.

It is even more difficult to get the capital to flee than expected!

But this has strengthened Yanagawa Shu's determination to clear his position and stop the loss.

'Yoshida, it seems that selling to escape is not an option. You can drag your feet, and we'll talk about the losses later,'

Yanagawa Shu Ren sighed and ordered.

Yoshida Hyuga let out a sigh of relief, nodded quickly in agreement, and was lucky that his immediate supervisor did not vent his anger on him.

Yanagawa Shu Ren then went to each team to check on the situation and reminded them of a few things before reporting to the general manager of the London branch.

Such a big incident, which also involved G·S·Huabao, had surprised the general manager of Sumitomo Corporation London Branch. He immediately called a meeting with the senior management, and after some discussion, the entire company became vigilant.

...

'G·S·Huabao against Sumitomo Corporation?'

'And short selling in all three markets, lead, nickel and zinc?'

George Berkeley, who was following the LME copper futures and LME aluminium futures at Bright Fund, was a little surprised when he heard the report from his subordinate, and then frowned, feeling that something was wrong.

Sumitomo Corporation is now their ally at Bright Fund, and they are long LME copper futures and LME aluminium futures together. He had even specially gone to the London branch of Sumitomo Corporation to discuss the steps of cooperation with the general manager of Sumitomo Corporation.

Now that Sumitomo Corporation has encountered this trouble, it will definitely affect their cooperation with Bright Fund.

'Continue to pay close attention and investigate the specific reasons. If these two parties make any moves, report to me immediately.'

After George Berkeley finished giving his subordinates their orders, he immediately followed up on the LME copper futures and LME aluminum futures more attentively.

Right now, having one Bahraini bank is enough, and for now, their Bright Fund has gained an advantage.

If G.S. Warburg joins the short sellers, or if other powerful financial institutions join the short sellers and launch a surprise attack, then there will be trouble.

...

The battle on the London Metal Exchange has attracted the attention of many financial institutions and onlookers.

In particular, as more and more information about the short sellers and long sellers is revealed, more and more people are interested.

Of course, there are many financial institutions that are undecided, waiting to see if they can find an opportunity to make a profit.

Amidst all the attention, the short positions led by G.S. Warburg were surging, and the prices of the three major metal futures plummeted.

By the morning break, the price of LME nickel futures had fallen to 8,472 US dollars per tonne, a drop of more than 5% in the morning, which was absolutely huge.

Just as the market closed for the afternoon, news came from the London Metal Exchange.

The inventory of spot contracts corresponding to LME nickel futures increased by 2,142 tons to 85,746 tons.

An increase in inventory is bad news!

Sure enough, after the market reopened in the afternoon, the price of LME nickel futures plummeted directly, from the morning closing price of 8,472 US dollars per ton to 8,435 US dollars per ton.

The price of LME nickel futures will continue to fall as it plummeted at the opening.

Sure enough, when the afternoon session ended, the closing price of LME nickel futures had fallen to 8,267 US dollars per tonne.

Compared to this morning's price of 8,925 US dollars per tonne, today's drop was as high as 37%.

Sumitomo Corporation's assets in LME nickel futures shrank by 27 million US dollars.

Together with the losses in LME lead futures and LME zinc futures, Sumitomo Corporation's metals trading department shrank by 42 million US dollars in one day.

As an ally, George Berkeley of course played his part. He couldn't just take the initiative to get involved, but he did help spread the word at the head office, didn't he?

So that evening and the following morning, many financial media outlets under the Guangming Fund analysed the true intentions of G.S. Warburg's short selling in a fair and objective manner, and also pointed out that the price falls in LME nickel futures, LME zinc futures and LME lead futures were irrational, and that as soon as the storm had passed, the value would definitely rise again.

Financial institutions and retail investors have partially returned to rationality.

Moreover, the prices of LME nickel futures, LME zinc futures and LME lead futures have fallen to a certain extent. Some speculators believe that it is profitable and have begun to buy in small quantities on a trial basis. Sumitomo Corporation's futures contracts have finally begun to sell, although the quantity sold is not large, but at least there is hope.

Liu Chuan Shuren can only hope that there will be more people to take over the position, otherwise the cumulative investment in the futures of the three metals has reached nearly 600 million US dollars.

Even if the value of the investment assets has shrunk, it is still a huge sum of money. Not every institution has the ability to take over the position!

When the value of the futures contracts invested shrunk by more than 10%, the London Metal Exchange immediately issued a warning to Sumitomo Corporation, demanding that Sumitomo Corporation replenish the margin in time, otherwise it would be forced to close out the position at the lowest price for short positions, and the losses would still be borne.

...

'Hey, Jacob, I'm surprised it's you here, where's Evelyn?'

G.S. Warburg & Co. received a report from its subordinate that West German Meng Warburg quickly came out, and happened to bump into Jacob Rothschild, who was being led by an employee, and his bodyguards. West German Meng Warburg asked with some surprise.

In the past few days, it was Evelyn Rothschild who came to negotiate with him, but he didn't expect the real leader of the Rothschild family to come today.

Jacob Rothschild smiled and said, 'Evelyn had some things to take care of, so I came instead. It's been a long time since I visited your company, so are you welcome?'

Sid Monger Warburg laughed heartily and said, 'Of course I'm welcome. Please come in.'

Soon, the two of them took their seats one after the other, while Jacob Rothschild's bodyguards waited outside the door.

'Jacob, the last time you came to my office was three years ago, wasn't it?'

Sid Monger Warburg took a sip of English black tea, a flash of memory in his eyes, and said with emotion: 'Jacob, the last time you came to my office was three years ago, wasn't it?'

Jacob Rothschild was taken aback, smiled, shook his head and said, "I don't remember very well. Although you are older than me, your memory is better than mine, I think.'

Sid Monger Warburg shook his head and laughed loudly, "Never mind that, you came here today to inquire about metal futures?'

'From the moment we started, victory was already assured, you didn't need to make the trip.'

In order not to expose himself, Jacob Rothschild did not use a Rothschild family company to make the move, but instead approached Sidmonger Warburg, and let G.S. Warburg act on his behalf to short the market in exchange for a generous commission.

'Sidmonger, I'm just bored, I came out to relax and get some information,'

Jacob Rothschild said with a smile.

Westmonger Warburg shrugged helplessly, refrained from arguing, and instead switched to another topic: 'Jacob, the Sumitomo Corporation Metals Trading Department has the most capital in LME copper futures and LME aluminum futures. Don't you want to take action?'

Jacob Rothschild shook his head and laughed: 'Forget it for now. LME copper futures and LME aluminium futures are too risky, and there is a lot of long power, which is a certain risk.'

'Why not cut more of Sumitomo's flesh first and try to make them leave more money behind?'