Chapter 880: Iran-Iraq and oil

After Song Yang finished reading the first thing, everyone was in deep thought, pondering how to proceed.

Solomon Brothers was not listed, so many commonly used acquisition methods were simply not applicable, and the acquisition would be more difficult.

However, they all supported this matter from the bottom of their hearts.

Philip Brothers had been severely damaged, but it was still a top company on Wall Street.

The company's employees were all still there, and with the support of the Galaxy Fund, Philip Brothers' strength had been weakened, but it was still the leader in the futures market, even if its aura of leadership had faded considerably.

Solomon Brothers, on the other hand, had previously been a top financial company on Wall Street. Although it had also been severely damaged, the framework for growth was still there.

If Philip Brothers can fully acquire Solomon Brothers, the two combined will not be able to squeeze into the top five investment banks, but they will definitely be able to make it into the top ten investment banks on Wall Street.

If the Milky Way Fund owns a company in the top ten investment banks on Wall Street, it will have a very strong boost to the development of the Milky Way Fund.

The Milky Way Fund does not lack funds, and with the connections and resources accumulated by the two companies over the past 60 or 70 years, the shackles on development can be easily broken.

The benefits are obvious!

The only problem is how to acquire a 100% stake.

Xia Yu smiled faintly, his gaze sweeping over the faces of the group, and he said lightly, 'For this matter, who among you would like to volunteer?'

The group looked at each other, and finally Xue He stood up with a determined expression and said loudly, "Boss, I'm willing to give it a try!'

Xia Yu said with interest, "What are you going to do?'

Xue He took a deep breath to gather his thoughts, and said slowly, 'Solomon Brothers is a partnership company, and the majority shareholders are Jewish. According to the current price fluctuations in the high-grade copper and aluminium futures markets, a quick resolution is necessary. The longer we wait, the more greedy the Jews will be, and even if they are willing to sell their shares, they will ask for a high price.'

'However, we have already left the high-grade copper futures and aluminium futures markets, and our ability to interfere with the prices of these two futures is very weak. We can no longer coerce Solomon Brothers into submission through the futures market.'

'Therefore, my plan is to buy time and at the same time find Goldman Sachs to help us complete the merger and acquisition by leveraging Goldman Sachs' influence among the Jews.'

'We can sign a VAM agreement with Goldman Sachs, setting a starting acquisition price with a one-month limit. The shorter the acquisition time, the more equity acquired, and the higher the commission rate. If a certain task is not completed, Goldman Sachs needs to pay us a certain amount of liquidated damages to urge Goldman Sachs to go all out.'

'Another aspect is to get the New York Chemical Bank to intervene, and with their influence on Wall Street, resource replacement can also play a role.'

After saying this, Xue He looked at Xia Yu intently, holding his breath unconsciously.

Xia Yu praised, 'Not bad, you have a clear mind and strong execution. Then I'll leave this to you. Come up with a plan and show it to me as soon as possible, don't let me down.'

Xue He trembled, and a smile appeared on his face as he loudly responded, "Yes, I won't let you down!'

Xia Yu nodded slightly and said again, "Then the next thing is the second matter, you should have guessed it.'

'Song Yang, tell everyone the situation.'

As soon as he finished speaking, Song Yang once again performed his duty and read out to everyone: 'As of today, the price of New York oil futures has reached 26.2 US dollars a barrel. After using leverage, we have invested a total of 5.76 billion US dollars in long oil futures. We currently hold a total of 267,800 lots of oil futures, with a total value of 7.016 billion US dollars.'

'In other words, at present, our long oil futures have a floating profit of 1.256 billion US dollars.'

'In the past half month, the daily trading volume of NYMEX oil futures peaked at 52,130 contracts.'

Hearing this, everyone got a rough idea.

The total amount of oil futures held by the Galaxy Fund is equivalent to more than five times the daily trading volume of US oil futures.

However, considering that these oil futures have been accumulated since last year, in fact, for a daily trading volume of more than 50,000 hands, that is, more than 50 million barrels, and a daily trading volume of more than one billion US dollars in the oil futures market, the impact is significant, but not too shocking.

Overall, it is a heavyweight market maker.

After introducing the situation of the New York oil futures market, Song Yang changed the subject to the situation in the Middle East, and the other executives, who had already been distracted, focused their attention again.

'According to the latest news from the boss, Iraqi Foreign Minister Aziz has already obtained the support of the United States and secretly left the United States in the early hours of this morning. It is speculated that Iraq has already obtained the diplomatic support of the two superpowers. This time, Aziz is going back, and Iraq will have no worries. Considering the religious and territorial disputes between the two countries, there is a high probability of a military conflict between the two countries in the near future, which may even lead to war...'

Hearing this, everyone was shocked, and their brains quickly began to race as they analysed the impact if this really happened.

As two of the major oil exporters in the Middle East, if Iran and Iraq fought, Iran would definitely not let Iraqi oil pass through the Strait of Hormuz, and if the conflict intensified, the oil supply in the entire Middle East would also decrease sharply.

At that time, the international crude oil price would definitely soar, which meant that it was time for the Galaxy Fund to reap its harvest!

At that time, to what extent would the price of oil futures rise?

Thirty dollars a barrel?

Thirty-five dollars a barrel?

Or forty dollars a barrel?

The profit would be two billion U.S. dollars? Three billion U.S. dollars? Or forty or fifty billion U.S. dollars?

Thinking about this, everyone couldn't help but feel excited.

As for the word 'very likely' that Song Yang used, they simply ignored it.

Although they had only been working for their boss Xia Yu for a little over a year, they were completely in awe of his international vision and overall outlook.

In their eyes, the boss can definitely be called the god of strategy, and he has never been wrong in his judgment of the international situation.

If not, how could the Galaxy Fund develop so rapidly?

How could the Jiuding Consortium rise so brazenly?

The boss started laying out the oil futures last year, and now that he has asked Song Yang to read out his judgment of the situation in the Middle East, it is clear that it is time to reap the harvest, there is simply no doubt about it!

After Song Yang finished speaking, Xia Yu added, 'There are many reasons why we judge that conflict will break out soon. Iraq has had the support of the Soviet Union since last year, but it has not received support from the United States. It is only because Khomeini is so stubborn that the Americans have not been released yet.

'Jimmy Carter is currently in a precarious position in the election, and he is already making a last-ditch effort to use support for Iraq to pressure Iran, in an attempt to make Iran release the hostages, as a way to prove his iron will and decisiveness, and to try to salvage his prestige by saving the hostages. Jimmy Carter will not allow the situation to drag on for too long.'

'On the other hand, Iran is in chaos, and it is still exporting revolution to Iraq despite its internal turmoil. Iraq has been rearming its army since the end of last year with the help of the Soviet Union, and it has also made preliminary preparations. It can be said that everything is ready, only waiting for the right conditions.

'The United States sent the right conditions this morning, so from many perspectives, this war is almost inevitable.'

When Xia Yu said this, everyone suddenly felt enlightened. The logic made perfect sense, and the more they thought about it, the more they felt that it made sense.

One of the senior executives, Tang Yong, immediately asked, 'Boss, does this mean that the war will break out in September?'

Xia Yu nodded slightly and said indifferently, 'According to my estimate, it should be in the middle or end of September.'

'Then, boss, do we need to hide and buy large quantities of oil futures contracts?'

Tang Yong asked again, looking at his boss Xia Yu with burning eyes.