Chapter 928 The second blow

  The separation of Italy and Germany has made the whole world see the discord within the EU. This news is undoubtedly a clear signal to the outside world that Italy is in trouble this time.

On Tuesday and Wednesday, the yields of Italian five-year and ten-year government bonds continued to rise, and the prices of related CDS also continued to rise. Funds from all over the world frantically sold Italian and even Spanish government bonds, and the yield soon broke through It has increased by 7%, which is close to the level of Portugal's peak period.

  Although the market generally believes that the European Union will not allow Italian government bonds to continue to be sold. But they also believe that Italy’s national debt will not improve much in the short term, because it is impossible for the EU to reach a rescue agreement for Italy in the short term, because the country needs far less rescue funds and the size of its domestic economy. Countries like Greece are much bigger and there are many details to negotiate.

  The falling market lasted for a whole week, and finally on Friday, the yield of the ten-year government bond barely stopped below 8%, which was only a short distance away from 8%. In other words, if there is no good news during this weekend, it will only be a moment when the Italian 10-year government bond yield breaks through 8% at the opening of the market on Monday.

  And this week, affected by the Italian market, the exchange rate of the euro against the U.S. dollar also fell by more than 5%, falling below the 1.3 euro to 1 U.S. dollar mark.

  However, the EU did not say anything about this. Only the leaders of a few small countries stood up and shouted a few times. The core countries, Germany and France, did not make any statement, which greatly disappointed the market.

   "The Prime Minister would like to ask when is it appropriate for you to express your position?"

  Hong Kong, on the sea more than ten kilometers away from Lamma Island, Zhong Shi wearing sunglasses is lying on the yacht basking in the sun leisurely, while paying close attention to the changes of the fishing rod. At this time, Ivana in a bikini walked over with a satellite phone the size of a brick.

  The temperature has dropped a bit these days, but the weather is good today. Zhong Shi simply sails out to sea, enjoys the sea breeze and sun, and at the same time sees if he is lucky today and can catch something.

  However, as soon as there was a vacation atmosphere, Ivana came over without knowing it, ruining Zhongshi's interest in rest.

   "Madam Prime Minister, this is Zhongshi."

  Looked at the other party speechlessly, Zhong Shi answered the phone, first reported his family name, and then asked with a hint of sarcasm, "Why, is the EU unable to support it now?"

   "I'm not in the mood to joke with you!"

The female prime minister put on a straight face and reprimanded unceremoniously, "Do you know how much the impact is now? A week of violent foreign exchange fluctuations has seriously affected the import and export industries in the euro zone. What I am discussing with you now is about data With the trillion-euro economic situation, you must know that many countries have expressed their dissatisfaction, and the pressure on my shoulders is very heavy."

  Although it is only a short period of one week, the statement of the female prime minister has already dissatisfied most countries in the European Union. If they hadn't known that Germany and France would definitely take action in the end, they would have jumped out to make this dissatisfaction public.

   "It's not up to me to decide whether to act, but how much international capital has flowed into Europe!"

Zhong Shi didn't dare to continue joking, and asked after a moment of pondering, "If you think that there is enough capital flowing into Italy or the euro market, it is possible to act now. I think the data on Madam Prime Minister's side should be better than mine. Is the estimate clear?"

"this…"

   The female prime minister is naturally well aware of the amount of speculative funds flowing into Europe during this period, but she can't make up her mind for a while whether to disclose this news to Zhong Shi. But soon when she remembered Ivana Hui's report that Zhong Shi hadn't made any move during this period, she felt relieved and said frankly, "According to incomplete statistics, during this period, European banks including Bank of Italy , a total of about 150 billion euros of bonds have been borrowed, and with the newly influx of funds from the capital market and money market, it is about 300 billion euros. Of course, this figure is not very accurate, because we can only count the European market Speculative funds, the United States is not clear."

   "Are you satisfied with this number?"

  After listening to Zhong Shi, he didn’t express too many surprises. In fact, these figures are the amount that has entered the attention of supervision, and there may be more relevant figures in the OTC market. What he wants to know is that for the market, the entry of this short-selling fund means that another similar fund has also entered to go long, forming a mutual counterparty. What he now wonders is whether the EU side is happy with that figure.

   "Is it a little less?"

  The female prime minister seemed to be asking Zhong Shi, but it was also a bit like asking herself. After a long while, she said leisurely, "Let's do it first."

   Compared with cracking down on speculative funds, she now pays more attention to differences in the EU.

   "Well, you can announce the good news this weekend!"

Now that the other party has said so, Zhong Shi will naturally not continue to insist, and immediately said, "The EU's QE policy should have been discussed long ago? If this is the case, then you can choose to announce it next Friday. This weekend, you You can discuss with the leaders of Italy, and then release some good news to the outside world to suppress the short positions in the current market. I think if there is this reason, I believe there should be a lot of funds willing to enter the market to suppress these short positions.”

  The first step of Zhongshi’s plan is to spread the news of shorting Italian and Spanish national debt, and induce some funds to enter the market. And his speech in Greenwich is to tell hedge funds that these funds will be your prey.

  The mantis catches the cicada, and the oriole follows.

"what do you mean…"

   This news was beyond the expectation of the female prime minister. She originally thought that Zhong Shi would let her announce the news of the implementation of QE in Europe, but now it seems that this is not the case.

   "Our real goal is to wipe out these speculative funds, no matter whether they are short or long!"

Zhong Shi explained unhurriedly, "The previous wave of short sellers will not be in the same circle as the follow-up people, but they are all speculative funds. I am trying to drive away wolfs and tigers. Let this wave first People swallowed the first wave of short-sellers, and then used QE to trap them deeply, so that they had to step into the trap I set for them."

   "I see, that's what happened."

  Hearing this, the female prime minister already understood what Zhong Shi meant, she nodded immediately and hung up the phone.

  According to Zhongshi's arrangement, at least two groups of people will suffer heavy losses in this plan. Such a result is naturally the most ideal for the European Union.

   "Look, your fishing rod is moving!"

  Ivana, who had been hiding far away, saw Zhong Shi put away the phone, and hurriedly yelled at him, "I must have caught something!"

  Zhong Shi heard the sound and rushed over, and found that the fishing line was shaking violently, knowing that there must be something to gain. Immediately shaking the rod to take up the line at a leisurely pace, it didn't take long before he felt the weight coming from the fishing line. He tried to pull it, and realized that he might not be able to catch this big guy with the strength of the fishing line, so he immediately ordered Ivan to Na said: "Take the fishing net, it seems to be a big guy."

  Ivana picked up the fishing net very cooperatively, waited on the water surface, and waited until the moment Zhongshi pulled up the line without hesitation to copy it in. When the prey completely surfaced, both of them were surprised.

   This is a large grouper with the length of an adult's arm. It seems to realize that it has lost its freedom and is struggling desperately in the fishing net, trying to escape from the shackles of the fishing net.

   "This time, there is a lot to gain!"

  Zhong Shi smiled happily and said with a pun.

  …

  On Saturday, European time, the German female chancellor and the Italian prime minister talked on the phone. At the same time, the two sides said that there was a little misunderstanding before this, but it has been resolved now. At the same time, the two parties also stated that they maintain a high degree of attention to the abnormal fluctuations in the current market.

  The Italian Prime Minister stated that the current economic situation in Italy is normal, and there is not much difference from a few months ago. As for the debt ceiling required by the EU, they are solving it by increasing measures such as cutting fiscal expenditures, and believe that they will be able to meet the EU's requirements in the future.

  Germany said that for Italy, the third largest economy in the euro zone, Europe once attached great importance to it. If necessary, Europe will provide assistance to Italy as soon as possible. She has repeatedly stressed that there will never be a debt default in the euro zone.

  At the same time, the female prime minister also hinted that in the near future, Europe will release an economic stimulus policy to stimulate the current sluggish economic situation.

  Naturally, as soon as these two pieces of news were announced, they immediately caused huge waves in the market. Those institutions that were frantically shorting Italian government bonds a few days ago felt a sense of panic that the end was approaching. They know that this time they were tricked by the politicians of the two countries.

  As for those hedge funds bewitched by Zhongshi, they have a feeling of escape. In the past week, most of them have become opponents of shorting Italian government bonds. Seeing the price drop day by day, their hearts are bleeding. If they didn't believe in Zhong Shi's judgment, many of them would have become deserters.

   But now this moment has finally come, they have been gearing up for a long time, waiting to give crazy revenge to those short sellers after the market opens.

  Sure enough, affected by these two pieces of news, when the market opened on Monday, European time, both Italian government bonds and the euro saw a retaliatory rise.

  The yield on Italian 10-year government bonds fell from nearly 8% to around 6% in one day, a full drop of two percentage points. The euro against the dollar soared 3% all day, sweeping away the decline in the past week and becoming the most eye-catching currency in the world.

  Accompanied by the skyrocketing price of these varieties, it was a big rout of the short sellers who threw away their helmets and armor.

   Thanks to book friends ljg1001, Xiao Shuili, and angw12 for voting monthly! No matter what factors exist, it should not affect the persistence in writing the book. No matter how much I apologize to everyone, it should not affect the enthusiasm for writing the book. The author will try his best to adjust his mentality and strive to write better, so as to get more book friends Only in this way will the results of this book get better and better. I hope everyone will continue to actively support this book. Thank you very much~

  

  

  (end of this chapter)