Chapter 455: The Plaza Accord
"Jiajia, how about tasting my skills in grilling squid, is it better than your father's roasted chicken legs?" Li Xuan smiled and held a string of big squid and shook it in front of a little girl.
"It's definitely not as delicious as my father!" the little girl said with a disdainful look on her face, shaking her head proudly. It's just that her big round eyes still secretly glanced at the food in Li Xuan's hand.
"Ah, since you don't think it's delicious, then I can only reluctantly destroy it myself!" Li Xuan deliberately teased the little girl, saying that he was about to send the steaming squid to his mouth.
The little girl involuntarily stretched out her little tongue and licked her lips, and the pitiful gluttonous look on her face was very cute.
"Dad's barbecue level is not as good as Uncle Li's! You haven't tasted Uncle Li's squid, how do you know that it must be Dad's deliciousness? So you should tell Uncle Li, let me taste it first, and then I can give you the answer!" Zhuang Yuhai walked over, touched his daughter's hair, and gave her a good idea.
"Uncle Li, I'm going to try your squid first, maybe it's really better than my father's chicken legs!" The tsundere little girl got the steps handed over by her father, and immediately got off the donkey down the slope, and smiled sweetly at Li Xuan.
"Well, let you, an illiterate little gluttonous cat, see what is really delicious!" Li Xuan also continued to tease her and handed over the string of squid in his hand.
He invited Zhuang Yuhai's family to his home for dinner today, and he didn't have a particularly formal dinner. Instead, a barbecue was set up in the garden. Everyone does it themselves to have enough food and clothing. When Li Xuan was in college in his previous life, he worked part-time at a barbecue restaurant near the school. Therefore, his barbecue level is much higher than that of Zhuang Yuhai, who is half-hanged.
Barbecue culture is also very popular in Hong Kong, as early as the 60s, when Hong Kong's industry was just emerging, many factory workers had a weekend break, and the most popular social activity was to go to the barbecue. Almost all country parks in Hong Kong have dedicated public barbecue areas for outdoor hikers.
In convenience stores and supermarkets on the streets of Hong Kong, you can also easily buy charcoal for barbecue. So much so that in the nineties during the Asian financial crisis. Hong Kong people also invented a new method of self-killing, called charcoal self-killing. This method of suicide was later exported abroad and quickly became popular all over the world.
The words are far off. Back to the point! Everyone was in high spirits at first, but barbecuing is never easy. Novices who have not mastered the heat are either scorched or not yet cooked. So Zhong Chuhong finally simply pulled Zhuang Yuhai's wife to the side to chat, leaving Li Xuan, who had the best level, to serve everyone.
And Zhuang Yuhai, a man, is naturally not good to walk away like a little woman. Consciously became a waiter for his daughter and two ladies. A steady stream of cooked food cooked by Li Xuan, the chef, was brought to the table.
"The White House has summoned the finance ministers and central bank governors of Britain, France, Germany, and Japan to New York, probably to force the other four countries to accept the dollar for depreciation!" Li Xuan said of the meeting of the finance ministers of the five countries being held in New York.
"In my opinion, it is not appropriate to say that it is coerced by the United States, and at most it can be regarded as a half-push! After President Reagan took office, he relied on such means as cutting taxes and increasing government investment to create a wave of economic prosperity in the United States! But this wave of economic prosperity has come at the cost of a surging fiscal deficit.
The competitiveness of U.S. companies has not changed, and the U.S. trade deficit is growing. In the shadow of a double deficit. The Reagan administration can only hope to raise the benchmark interest rate and bring in international capital to develop the economy.
But the dollar because of the second oil crisis in the late seventies. Just went through a round of rapid appreciation. Now a large amount of foreign capital has returned to the United States under the stimulus of interest rates, which has further pushed up the exchange rate of the dollar.
This has made US companies, which were already in a defensive position in the competition with Japanese and German companies, even more overwhelmed, and their exports have further shrunk. This, in turn, increases the trade deficit, creating a vicious circle!
The semi-fixed exchange rate policies of Japan and Germany have kept the exchange rate of the yen and the mark against the dollar low for a long time. Enterprises in these two countries have taken a big advantage when it comes to international competition. It is time for the dollar exchange rate to be higher and return to equilibrium.
In fact, as early as May this year, the Bank of England took the initiative to start selling dollars to the foreign exchange market, so that the exchange rate of the British pound against the dollar would appreciate in an orderly manner!" Zhuang Yuhai explained to his boss the ins and outs of the meeting of the finance ministers of the five countries.
Li Xuan only knew that the Plaza Agreement in 85 years had caused the yen exchange rate to skyrocket. As a result, Japanese companies became wealthy in an instant, and in the late 80s, they began to expand overseas. Mitsubishi bought the Rockefeller Building, Sony bought Columbia, and the Japanese bought and bought the crazy momentum, which once caused a lot of panic among all Americans.
International hot money began to pour into Japan's stock market and property market, creating a wave of "Heisei prosperity" in Japan. But the bubble burst in 1990, plunging Japan into a decade-long recession.
Therefore, the "Plaza Accord" of 1985 was also considered by many conspiracy theorists to be a trap set by the United States to allow Wall Street capital to loot the wealth accumulated in Japan for decades.
"It seems that saving the United States is also saving yourself, this is Zhou Yu beating Huang Gai, one is willing to fight and the other is willing to suffer! After all, Uncle Sam is the leading big brother in the free world, if it falls, who will deter the red polar bear!" Li Xuan said with a smile.
"Every country's finance minister and central bank governor are not fools, and naturally it is impossible for them to sell their country's interests indefinitely for the sake of the United States. Japan, for example, is now the world's second-largest economy after the United States!
In the past few decades, Japan's economic model based on commodity exports has developed to the extreme. If no more adjustments are made. It is bound to suffer from the increasingly serious backlash of international trade protectionism.
Therefore, with the appreciation of the yen, Japan will be able to export not only commodities but also capital. It can also effectively expand its own domestic demand and change the imbalance in which the Japanese economy is completely dependent on exports!" Zhuang Yuhai continued.
Li Xuan didn't bother to think about what the top level of the Japanese government was thinking about now, he only remembered that the Japanese finally played this game out of line. In fact, the Deutsche mark, like the yen, has also experienced a sharp appreciation, but Germany has not produced an economic bubble like Japan.
"I feel like you've personally gone to the Plaza Hotel in New York to participate in the consultation, and the head of the analysis is Dao! Presumably, this is not just your personal opinion, but the entire Wall Street, right? Is it a little late for us to enter the game?" Li Xuan is naturally most concerned about his own investment.
"Before the dust settles. No one is sure of the final result, and it will certainly be the same as their own analysis! While some people are long and short on the dollar, naturally there are also people who are long on the dollar. For example, the recent exchange rate of the yen against the US dollar. There was no one-sided rise, but a violent swing!
As a matter of fact, our LH Fund has already begun to enter the Japanese market as early as last year! Since the early 80s, there have been signs of excess capital in Japan. In order to digest this excess capital. Last year, Japan's Ministry of Finance published an article entitled "Financial Liberalization and the Current Situation and Prospects of Japan's Internationalization." The reform of financial liberalization and internationalization was officially launched. The Japanese securities market, which has been flooded with a large amount of money, has also begun to heat up rapidly, and now there is a bull market pattern!
Even the yen's exchange rate against the dollar did not appreciate as sharply as we expected. Now that we are investing our money in the Japanese stock market, it is also a trade that will not lose money! However, with your support Li Sheng, I will naturally be a little more bold this time.
The LH Fund has already withdrawn nearly 60% of its funds from other investment areas. If you don't have any objections, the funds will be diversified into Japan's stock market, real estate and corporate bonds!" Zhuang Yuhai said confidently.
Putting more than half of the capital into speculation is obviously a very radical approach. And according to the agreement between Li Xuan and Zhuang Yuhai. If there is a large-scale operation of the LH fund, it needs to get the approval of him, the owner. Zhuang Yuhai is also because of his own point of view this time. It was highly recognized by the boss Li Xuan, so he dared to bet on the depreciation of the dollar.
After Li Xuan's multiple capital injections and the return brought by Zhuang Yuhai's outstanding investment, the total capital size of LH Fund has exceeded 2 billion US dollars. This time, Zhuang Yuhai mobilized nearly $1.2 billion in funds, which is enough to send a rich man to the Forbes global wealth list.
Naturally, he didn't dare to be careless, in fact, Zhuang Yuhai had been inspecting Japan before, and he had just flown back to Hong Kong from Tokyo until yesterday. And now that everything is ready, it is time for Li Xuan to give the last nod.
"The boss opens his mouth, and the little soldier below breaks his leg! You tell everyone after you go to work tomorrow that if we can succeed in this battle, the red envelope given by my boss will definitely not be stingy, and I will definitely not let everyone run errands in vain!" Li Xuan gave his own order.
He is a complete layman in specific investment operations, so he rarely even goes to the headquarters of the LH Investment Fund. Every time he makes a decision, Li Xuan will choose to trust his investment manager without reservation.
And Zhuang Yuhai's performance in the past three years did not disappoint Li Xuan. Of course, Li Xuan did not disappoint Zhuang Yuhai, his basic annual salary and dividends last year reached an astonishing $16 million, which was $1 million more than Han Peng, the president of the Oriental Group!
"Mr. Li, I recently heard the news that it seems that several local real estate groups in Hong Kong are interested in acquiring Hongkong Land under the Jardine Matheson Group!" Zhuang Yuhai suddenly said casually.
"Oh?" Li Xuan suddenly became a little interested, "Tell me who they are?"
"Li Jiacheng of Cheung Kong Group, Zheng Yutong of New World Group, Bao Yugang of Global Group, and Guo Henian of Sin Chew!" Zhuang Yuhai casually reported these names, all of which are leaders among Chinese businessmen in Hong Kong.
"Li Jiacheng should be unlikely, he just spent 3 billion Hong Kong dollars in cash in January this year to acquire a 35% stake in HK Electric from Jardine Matheson, and the capital turnover is not so fast!" Li Xuan shook his head and said.
"This is not necessarily, Li Jiacheng's action at the beginning of the year was to complete the acquisition through Hutchison financing. And another listed company in his hands, Cheung Kong Group, has also developed very steadily in recent years, with a very high credit rating, and is also capable of raising a large amount of funds from the capital market!" Zhuang Yuhai gave a different opinion.
"After the loss of Wharf, Hongkong Land has become its core asset in Hong Kong. Keswick will never give up, it seems that there will be another dragon fight!" Li Xuan said with a smile.
"Mr. Li, since you are optimistic about the future prospects of Hong Kong, have you considered investing in the real estate industry? Hongkong Land has a large number of prime buildings and properties in the central district of Hong Kong Island, and the potential for future appreciation is actually very huge!
Moreover, Hongkong Land's Mandarin Oriental and Dairy Farm International, both subsidiaries are very high-quality assets. Hongkong Land's total market capitalization is now only HK$15 billion, and even if it is a hostile takeover by 50%, it will only cost US$1.5 billion to control 51% of the shares!" Zhuang Yuhai said encouragingly.
His words sounded light-hearted, what does it mean that it is only $1.5 billion, and if it is converted into Hong Kong dollars, it is as high as 12 billion! How many companies in Hong Kong are there now, and their market value can exceed 10 billion?
But for Li Xuan and the Eastern Group, $1.5 billion is really not a big number. Two years ago, Li Xuan borrowed nearly $5 billion from banks such as HSBC, Citigroup, and Standard Chartered in order to acquire RCA.
In just two years, Li Xuan has completely digested the 5 billion hole through a series of splits and sales of RCA, as well as the profit support of Oriental Games, Oriental Research Institute and other companies.
"There are many opportunities to make money in the world, and the real estate industry is not the main direction of the Oriental Group! Not to mention that Hongkong Land and Jardine Matheson have mutual holdings, it should be difficult for outsiders to have a chance to start, right?" Li Xuan shook his head and said.
If he had the heart to enter the real estate industry, then in the past few years, he would have taken a large amount of land. Now Hong Kong's real estate industry has begun to gradually recover, and land prices have risen a lot compared with the trough two years ago. And Li Xuan remembers that Hongkong Land and Jardine Matheson hold as much as 40% of each other's shares, and even if outsiders want to make a hostile takeover, it is unlikely to succeed.
"Since Keswick became the new senior director of Jardine Matheson, he began to work on the original Zhiyi mutual control. Now the shares of Jardine Matheson Group have dropped to less than 25%, which should be said to be the best opportunity to sell!" Zhuang Yuhai shook his head and said. (To be continued......)