Chapter 140: What is Wealth?
Rolls-Royce was founded in 1906 after its founders, Charles Rolls-Royce and Henry Royce, and owns two major group companies, Rolls-Royce and Rolls-Royce.
But in 1973, Rolls-Royce was split into two separate companies, Rolls-Royce Plc and Rolls-Royce Motor Cars.
However, due to the same pronunciation, the two companies are often confused by global investors, and even the legal departments of native English speakers of various governments often get the two companies wrong.
But in fact, Rolls-Royce Plc is a well-known British engine company, but also the largest aero engine company in Europe, its products include aero engines, ship engines and nuclear power plants for nuclear-powered submarines, of which aero engines are its prestigious fist products, and its development of various aero engines are widely used in civil and military aircraft around the world.
Rolls-Royce Motor Cars is mainly involved in the automotive field, although there is still a certain share of aero engine cooperation, but its biggest dependence is on the two major brands of Bentley and Rolls-Royce.
Shen Jiannan refers to Rolls-Royce Plc, which refers to Rolls-Royce Aerospace Industries.
As a Chinese, William certainly won't fail to figure out the difference between Rolls-Royce and Rolls-Royce.
Therefore, he was a little skeptical that his boss's brain was broken.
The European economy is in a very bad situation under the impact of the exchange rate mechanism, and the Asian market is constantly introducing new policies, which has caused European capital to continue to flow out, and the economy has been further sluggish.
The economy is not good, the probability of people traveling and traveling will be reduced, the number of flights of airlines will be compressed, and the demand will be greatly reduced.
Shortly after the Gulf War, Rolls-Royce Plc's financial situation was deteriorating due to war aversion and skepticism about military spending, as well as a steady stream of defense orders due to war aversion and skepticism about military spending.
Judging from this year's financial report data, in the first half of the year alone, Rolls-Royce had to lay off 3,000 employees to reduce expenses due to reduced orders, and the total loss exceeded 184 million pounds. Rolls-Royce Plc shares also fell from £2.7 per share to £1.65, a standard bearish trend.
It would be very stupid to invest in such a company.
Clamping the phone, looking at the financial situation and quotations of Rolls-Royce Plc on the Reuters screen, William had to remind his boss.
“BOSS。 Rolls-Royce's finances look bad, and by the indications, the Wall Street and Singapore gangs have set their sights on France and Sweden, and Europe's economy is only going to get worse. If we hold Rolls-Royce shares now, if it goes bankrupt and goes back to state-owning, our investment could be all lost. ”
In light of the recent changes in financial markets, William's words make a lot of sense.
Although, Rolls-Royce's profit last year reached 530 million pounds.
But the truth is that the European economy is only going to get worse, and Rolls-Royce doesn't see much prospect at all for a few years.
The vast majority of the market share in the American market and the Asian market is controlled by the American EG company and the Pratt Wheatit Group, and in the Asian market, there are Mikoyan Design Bureau and Sukhoi Design Bureau competing for market share, and Rolls-Royce's main market share has been concentrated in Europe.
But if you continue to invest money in the financial markets, it will be a complete result.
Each of the same markets may be volatile due to fluctuations in currencies and policy changes in various countries, so multinational investment companies and banking institutions will hedge positions in different currencies to prevent the occurrence of systemic risks in financial markets.
With the total collapse of the pound, under the convergence effect, international capital shifted its target from the United Kingdom to neighboring France and Sweden, which had previously raised interest rates to 500 percent.
Although the exchange rates of these two countries are relatively stable for now, the high interest rates simply cannot maintain the normal functioning of the economy, and it is believed that under the spread of the transmission mechanism and the panic of the pound, only by continuing to promote the momentum, the currencies of these countries will soon be crushed by the bears in the market.
With the scale of assets currently held by Capital One, it is completely possible to attack the currencies of these countries to maximize profits, no matter how you look at it, it is much better than investing in money-losing goods like Rolls-Royce.
As the saying goes, the ass decides the head.
From William's point of view, this is good, but for Shen Jiannan's kind of hanging, it is another layer of consideration.
After independence, Rolls-Royce was taken over by the British Treasury and is a 100% state-owned enterprise, with the British government owning all of its shares, and has been under direct government control. It can be said that Rolls-Royce's position in the UK is equivalent to GM's position in the United States, and it is also the largest industrial export company in the UK.
It is no exaggeration to say that even Alibaba, Facebook, and Apple in later generations could not buy it with ten, although its market value is not even one-tenth of that of one of these companies.
Money can represent wealth, but wealth can never be absolutely represented by money.
Is Kuwait rich?
Three years ago, in Kuwait, the per capita income reached $20,000, and every family was able to own a car.
But under Iraqi fire, Kuwait is no different from a refugee camp.
Is Iraq rich?
As the world's fifth-largest military power and rich in resources, Iraq is not short of money.
But later Iraq was not a poor jingle bell.
Some people say that war is a good opportunity to make a fortune and turn things around.
You can take advantage of the war to long the currencies of other countries in the financial markets to achieve wealth growth and overtake.
In fact, how ridiculous is this.
Whether it is Kuwait, Iraq or Libya, it has long been proven that without complete sovereignty of a country, wealth will be wasted in an instant, and currency will be as worthless as waste paper.
Not to mention the growth of wealth, it is simply a luxury to be able to ensure life and maintain human dignity.
Any country in the world is xenophobic.
As far as his Chinese identity is concerned, he does not have a strong backing that he can really trust, and no matter how much money he makes, he may become a slaughtered fat pig one day, and he can't find a place to reason and complain.
But if you can have influence over Rolls-Royce, it's different.
With Rolls-Royce's technological leadership in the field of aviation power, it is completely possible to add an accelerator to the largest one, and even if Mao Zi gasps and wants to be a robber again in the future, there will be a super hanger in front of him.
"William. What is wealth?"
"What?"
"Money is just numbers. We need to capitalize capital, and we need to capitalize on it, constantly somewhere between capital and assets. ”
William was a top student of Hong Kong University, and he immediately understood what Shen Jiannan meant.
"You're saying we control Rolls-Royce? ”
"Why can't it be?"
“......”