Chapter 1135: The hurricane that swept the world
"In order to stimulate the U.S. economy and further ease domestic inflation, Federal Reserve Chairman Paul Volcker announced at a press conference that the U.S. Federal Open Market Committee (FOMC) will raise the federal funds rate from the current 19% to 21% on August 1st, and the lending rate from the current 21.5% to 24%...'
In the Galaxy Fund conference room, Xia Yu and Liu Feng, among others, gathered together. After Liu Feng read out the news from the United States, excitement filled everyone's faces.
'Great, the Fed has indeed raised interest rates, and Latin American countries and other countries are doomed!'
'This interest rate hike came out of nowhere, and it's an abnormal interest rate hike policy that only gave the capital market ten days to react. Hahaha...'
'This also shows the extent of the US's economic predicament. If it could still afford to do so, the Fed wouldn't have done it. I'm afraid it's just a threatening interest rate hike...'
'Now the Fed has fired without saying a word, decisive and powerful...'
...
For a while, there was some chaos in the meeting room as everyone expressed their own opinions, with laughter rising and falling.
Xia Yu just smiled as he watched everyone let off steam.
He has been here every day for the past month, so he naturally knows how everyone is feeling.
Although Liu Jiao and the others have not confided in him, Xia Yu can still see the pressure they are feeling.
Now that the Fed's interest rate hike policy he described has finally emerged, the general trend of international capital flowing to the United States has once again emerged, and the situation of Latin American countries and other countries is like adding insult to injury.
The Fed's global move has hurt Latin American countries the most.
Now, they are just waiting for the moment of the avalanche!
'Pop!'
'Okay, everyone, calm down!'
After seeing the crowd discuss for a while, Xia Yu clapped his hands to attract everyone's attention to himself and make them quiet down.
Instantly, the entire conference room became quiet again.
Looking at the pairs of burning eyes looking at him, Xia Yu gave a serious glance around and commanded in a deep voice, 'Today is July 21st, and there are still ten days until the Fed actually raises interest rates.'
'After the policy is implemented, there may be problems in Latin American countries one day, possibly on August 1st, possibly on August 5th, or possibly after August 15th.
'So the real safe time we have left is only the ten days between today and August 1st!'
'I am aware of your progress. Some of you have not completed all of your deployments, and some have, but there is still room for optimisation.
'So in the next ten days, you will continue to improve the deployment of your respective teams according to the plan, and be sure to complete it before August 1st!'
'And before August 1st, you will all arrive in your respective areas of responsibility, personally sit in command, and I will sit in the headquarters to make overall arrangements.'
'Are there any questions?'
At the end, Xia Yu suddenly raised his voice, his eyes sharp as a knife, exuding a solemn atmosphere.
'No!'
Everyone held their heads high, and shouted in unison.
'Good, meeting adjourned!'
After saying this, Xia Yu did not dawdle, got up and led the way out of the meeting room. After the others left, they immediately hurried to their respective departments.
They had to fully complete the deployment in the next few days, of course this was remote command.
The reason for still lingering here was nothing more than to promptly connect with Xia Yu, and their remote command was also able to promote work.
When the sovereign debt crisis in Latin America really broke out later, the situation changed rapidly, and they had to be there in person to direct and coordinate the work, so as not to miss the opportunity.
...
After Paul Volcker announced the Federal Reserve's interest rate hike, this news dominated the front pages of financial news in various countries for the next few days, with endless analyses of the Fed's motives and impact.
The effects were beginning to appear.
Although the Fed's interest rate hike policy will officially take effect on August 1, the US dollar has once again accelerated in its appreciation, and many capital has already begun to rush into the United States to seek capital preservation.
The price of gold futures has also stopped falling and begun to rise.
In fact, many of Xia Yu's companies have already completed their capital deployment in advance.
For example, Jiuding Bank, in order to preserve the value of its assets, has already converted most of its funds into US dollars or gold futures contracts in advance, and has also put up a large amount of capital to go long on US dollars and gold futures.
Every point rise in the offshore exchange rate of the US dollar and the price of gold futures contracts can create considerable floating profits for Xia Yu's many companies.
Of course, Xia Yu also informed his hardcore allies in advance of this opportunity, allowing them to make their own deployments. How much money they can make depends on their individual abilities, but at the very least, their assets will not shrink due to this sudden situation.
...
July 26th.
After Liu Jiao and the others finished their work deployments and scattered to their respective areas,
The ownership of Shaw Brothers Pictures and Shaw Theatres, which had shaken up the Hong Kong and even Asian film industries, finally had a clear result.
The headquarters building of Golden Harvest Pictures.
Wrinkle Huai, He Guanchang and Liang Feng gathered together once again.
Everyone's faces were long and their expressions were very unpleasant. Even Wrinkle Huai's face revealed a look of confusion, and the whole person exuded a decadent and confused atmosphere.
It is no wonder that this daring and determined man has become this way.
The news has really hit him hard!
Over the past month or so, Wrinkle Wai has done everything he can to fight for the Shaw Brothers Film Company and Shaw Theatres.
He has even gone to great lengths to win these two companies in order to strengthen his position and narrow the gap with Galaxy Studios and Universal Theatres. He has lowered his pride and bowed to Shaw Yifu in order to resolve the feud and get him to sell the two companies to him.
But no matter what he did, in the end he still lost!
Galaxy Studios and Universal Cinema beat all their competitors and bought Shaw Brothers Studios and Universal Cinema with money.
Galaxy Studios bought Shaw Brothers Studios for 68 million Hong Kong dollars.
Universal Cinema swallowed Shaw Studios for 172 million Hong Kong dollars.
The gap between Golden Harvest Studios and Galaxy Studios was greatly widened, so much so that Wrinkly Huai could not see any hope of catching up.
Why?
After swallowing up Shaw Brothers Pictures, Galaxy Studios had seven times the talent in the film industry alone!
And Universal Cinema was even better.
Universal Cinema itself was the number one cinema chain in Asia, with 30 cinemas in Hong Kong, 188 self-operated cinemas and 102 franchise cinemas in Southeast Asia, and it was also the number one cinema chain in the island country.
Shaw Theatres itself is the second largest theatre chain, with 16 cinemas in Hong Kong and 132 self-owned cinemas and 82 franchise cinemas in Southeast Asia, for a total of 230 cinemas!
After the Universal Circuit merged with Shaw Circuit, it will have 46 self-owned cinemas in Hong Kong, more than half of the total number of cinemas in Hong Kong!
In Southeast Asia, it will have a terrifying 320 self-owned cinemas and 184 franchise cinemas, covering a total of 504 cinemas!
It is definitely a giant and dominant player!
And what about Golden Harvest Circuit?
In Hong Kong, there are only a pitiful 19 cinemas, and only 7 of them actually belong to Golden Harvest. The remaining 12 are franchises.
In Southeast Asia, Golden Harvest only has 21 self-owned cinemas, and together with the 82 franchise cinemas, there are only 103 cinemas, which is equivalent to about one-fifth of Universal Circuit's cinemas.
This gap is like a chasm, and it is impossible for Golden Harvest to catch up.
Moreover, Wrinkled Wai can easily imagine that in the face of the overwhelming power of Galaxy Studios and Universal Circuit, those small and medium-sized film companies will flock to Universal Circuit and Galaxy Studios like moths to a flame. After all, these two companies hold the talent and cinemas that other small and medium-sized film companies need.
'Next, it will be the era of Galaxy Studios...'
'Sigh...'
Wrinkle Huai let out a long sigh, and it was as if he had aged ten years.
He Guanchang and Liang Feng looked at the demoralised Wrinkle Huai, and they exchanged glances, their eyes filled with deep concern...