Chapter 1137: Ice and Fire

"Pop!'

'Ring ring ring...'

The headquarters of the Galaxy Fund in Xiangjiang.

Xia Yu had just hung up the phone, and just paused for two seconds, the phone immediately rang urgently again.

Xia Yu answered the phone with a smile, 'Hello, what's the situation?'

'...'

'I understand. Stay hidden, keep an eye on the market, don't be careless, and report back to me immediately if anything special happens!'

'Click!'

Xia Yu was concise and to the point, and after making himself clear, he hung up decisively.

After finishing the eight phone calls, Xia Yu thought that there should be no more calls for the time being, so he got up from his chair in front of the desk and walked over to the French windows. Looking out at the distant skyscrapers and the blue sky, he felt extremely happy!

With the Mexican government, despite its national reputation, taking the initiative to declare an $87 billion debt default, the final risk of his plan had finally disappeared and it was completely on track.

The losing team stopped losing money, and the floating losses were quickly covered, and then the floating profits rose all the way.

As other international capital rushed into various markets, it helped the floating profits of the Galaxy Fund, which had been deployed early, soar even further.

It was just like the Mexican peso and the Mexican stock market.

The international capital sold off the Mexican peso and Mexican stocks, accelerating the plummeting of both.

As the short seller, the Galaxy Fund naturally hoped that the Mexican peso and Mexican stock market would fall as low as possible.

Other companies wanted to short the Mexican peso, but it was too late to enter the market.

But international capital is not stupid.

Since the Mexican government dared to default, the default risk of other Latin American countries will increase infinitely.

Therefore, even though Brazil, Colombia, Peru and other countries have not defaulted, the stock markets and currencies of these countries have already begun to fall.

At best, the decline has not been as great as that of Mexico.

But as long as these countries follow suit and default, a crash is only a matter of time.

...

London, England.

After receiving the news that Mexico had defaulted on its sovereign debt, Lloyds Bank immediately called an extraordinary board meeting with all its directors.

At the meeting, the directors were relieved to learn that Lloyds Bank did not hold any sovereign debt from Mexico and that it only held a total of less than 50 million pounds in sovereign debt from Brazil.

Luckily, there was no sovereign debt from the Mexican government.

Luckily, there was also only less than 50 million pounds in sovereign debt from Latin American countries, so even if there was a loss, it would not be significant.

After the scare, Duke Carter Howard, who had strongly advocated selling Latin American sovereign debt at the time, became the focus of the entire meeting, and everyone marveled at his foresight.

'Sir Carter, thanks to you, just think, before, we at Lloyds Bank were the bank that lent the most to developing countries in Latin America!'

'If you hadn't strongly requested it at the time, and persuaded us one by one, then just the $2.2 billion debt to Mexico at the time would have been enough to cause Lloyds Bank to suffer heavy losses!'

Duke Carter Howard's good friend, Duke Potter Philip Cavendish, said with emotion.

'Yes, now no matter whether the remaining Brazilian government sovereign debt can be transferred, even if the Brazilian government also defaults, we will only suffer a slight loss, and the bank will still make a profit this year.'

Duke Somers Churchill nodded in agreement, with a relaxed and pleasant smile on his face.

Duke Carter Howard did not sound smug, but said with a faint smile, 'If everyone had not supported what seemed like a ridiculous idea at the time, I would not have been able to achieve what I have now.'

'So it's a joint effort!'

'Hahaha...'

The group laughed, and suddenly one of the directors said abruptly: 'Most of our bank's sovereign debt to Latin American countries and other countries has been taken over by Barclays Bank, and Barclays Bank has also taken over a large amount of sovereign debt and has now become the largest creditor of Latin American countries and other countries. I think the Rothschild family must be going crazy now.'

After a moment of silence, the room suddenly erupted into even more heated discussion.

'The Rothschild family has been running rampant in the financial markets, and they were even thinking of using sovereign debt from Latin American countries to accelerate the family's revival. Now...haha...'

'I'll have to give Evelyn Rothschild a call when we get back, to ask how he's feeling now, heh...'

'After the news that Barclays Bank holds more than 10 billion US dollars in sovereign debt spread, Barclays Bank's stock is likely to become junk stock. Unfortunately, with the Rothschild family's strength, it is impossible to bankrupt Barclays Bank. It's a pity...'

'What's so pity about it? At least for the time being, it has interrupted the Rothschild family's momentum of revival, and it can greatly drain the Rothschild family's funds. Next time the government privatises state-owned enterprises, the Rothschild family's threat will be greatly reduced, and our chances will be even greater.'

'Yes...'

In fact, the majority shareholders and directors of Lloyds Bank are staunch royalists in the UK and the top powerhouses among the old families. Their competition with the Rothschilds is far greater than their cooperative relationship.

Even if there is a cooperative relationship, it is just ordinary cooperation in a certain field.

So for them, the Rothschilds' loss of strength is more than good!

Barclays is even more powerful than Lloyds, and the competition between the two is fierce. Now that Barclays has suffered a major loss, some of the market it has vacated will definitely belong to Lloyds.

The value that can be created in these markets is much greater than the less than £50 million in Brazilian sovereign debt.

Overall, in the face of the crisis, Lloyds will only get better.

Two flowers blooming on separate branches.

Just as the Duke of Carter-Howard and others had thought.

At this time, the Rothschild family was enveloped in a heavy atmosphere.

Evelyn Rothschild rushed back to the family as soon as he had asked Barclays to hold its ground, and discussed countermeasures with his relatives.

'Evelyn, has Barclays calculated the amount of Mexico's sovereign debt?'

Jacob Rothschild asked with a gloomy face.

Evelyn Rothschild sighed and said honestly, 'The sovereign debt of Mexico we hold amounts to more than 4.23 billion US dollars, of which more than 650 million principal and interest is due on August 16th.'

'In addition to Mexico, we also have 9.45 billion US dollars in sovereign debt of Brazil, Argentina, Colombia and other countries.'

'Our total sovereign debt holdings for all Latin American countries is more than 13.68 billion U.S. dollars.'

'Of course, our bank's total corporate lending to Latin American countries also totals about 4.4 billion U.S. dollars, of which about 650 million U.S. dollars was lent to many companies in Mexico.'

'Now that the Mexican stock market has plummeted and so has the Mexican peso, the risk of these 650 million U.S. dollars in loans is also very high.'

'Hey...'

After saying that, Evelyn Jacob let out a long sigh and her face was full of worry.