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- Chapter 824 Dubai World
Although the financial tsunami that started in 2005 was driven by Yang Xing, he could take advantage of his rebirth. Although the time was advanced by three years, he just combined the US subprime mortgage crisis and the European sovereign debt crisis. The result was 11¡· 2. The destructive power produced is no less than that of the previous life. In addition to revenge, he also felt that this was a once-in-a-lifetime opportunity. The impact of this financial tsunami on the international political and economic order was so great, both in depth and breadth, that it was no less than the Great Depression in the 1930s. That was the trigger that triggered World War II and created an international situation that lasted for more than half a century.
This time, Yang Xing led the overseas bargain hunting group to take advantage of the opportunity when Western countries are generally in recession to develop and strengthen their own strength and prepare for China's rejuvenation. Nowadays, many large financial institutions in the United States have suffered asset losses and have to ask for help from external investors, and overseas bargain hunting groups are undoubtedly the "white knights" in the eyes of Wall Street.
In addition to Citibank facing bankruptcy crisis, Wall Street giant Goldman Sachs Investment Bank is also in trouble. Although before the crisis broke out, through its relationship with Yang Xing, Goldman Sachs was the first to realize that something was not going well and immediately emptied the accounts related to subprime mortgages, and luckily escaped the first wave of subprime mortgage crisis. But the good times did not last long, and now it has fallen headlong into the whirlpool of the European debt crisis and is unable to extricate itself. The EU was very angry with the way it used to cover up the truth and falsify accounts to meet the standards when it assisted Greece, Spain and other countries to join the EU. It believed that it was precisely because of the deception by US investment banks that the debt crisis of Greece and other countries played a role in the European debt crisis. It's out of control, and they have an unshirkable responsibility.
For this reason, Goldman Sachs was issued a sky-high fine. For this reason, Goldman Sachs had to sell its shares to Buffett's Berkshire Hathaway to come to the rescue. Compared with the missed opportunities in the previous life, this time it is negotiating with Wall Street and Citibank to buy overseas. Naturally, Tuan did not miss the opportunity, and China Investment Corporation and others also became major shareholders of Goldman Sachs.
Overseas bargain-hunting groups have also targeted U.S. auto industry giants. Although the U.S. government has provided $850 billion in bailout funds, the number of large U.S. companies in crisis this time is even greater. In November 2006, not long after Citibank announced that it was going bankrupt, the CEOs of General Motors and Chrysler, iconic American manufacturing companies, went to Washington to attend a hearing. They said helplessly that they would declare bankruptcy if the government did not rescue them. The government also had a huge headache. In the previous life, it was forced to localize General Motors and Chrysler was sold to the Italian company Fiat.
Now, thanks to the emergence of Yang Xing and the analysis help of the "Prophet" system, overseas bargain hunting groups can get ahead of Italy's Fiat and form an alliance of domestic automobile companies, eating up most of Chrysler's technology and brands. In addition, General Motors The company's many talents, patents and automobile production bases in Asia have basically fallen into the pockets of Chinese companies. Although the American right wing clamored that "the Chinese bought the United States," at this time of tight funds, the U.S. government obviously did not How much thought is given to the nationality of investors.
Of course, Yang Xing, as the leader, also has to balance public and private matters. For example, when acquiring the assets of Citigroup, Vitex Capital¡¯s acquisition focus was not on bank assets, but on the insurance business of Citigroup, because the Travelers Group to which it belongs is The second largest insurance company in the United States, Star Insurance, China Life, and China Pacific Insurance have been coveting its Asian business for a long time. In addition, American International Group was forced to accept U.S. government assistance and sold a large amount of its business. Chinese insurance companies took the opportunity to take action. It directly bridged the decades-long gap with the Western insurance industry and became a major player in the world's insurance industry.
Citigroup is nicknamed the "Financial Supermarket" and claims to be able to provide any product in the financial market. This time, it never expected that it would actually become a supermarket, allowing Chinese overseas bargain hunting groups to take whatever they wanted from its asset shelves. For a long time, many financial media have predicted that the world's largest bank will fall into the hands of the Chinese sooner or later.
If the purpose of overseas bargain hunting groups is to maximize the benefits of foreign exchange reserves, it is obvious that they are not just focusing on the United States. Yang Xing has already decided on his next target. To everyone's surprise, he did not choose debt-ridden Europe, but Pointing to the Middle East, it is Dubai, the United Arab Emirates, which he has a close relationship with.
On November 25, 2006, the Dubai government of the United Arab Emirates suddenly announced a major news that it would reorganize its largest corporate entity, Dubai World Company. At the same time, the Dubai Ministry of Finance also announced that it would postpone Dubai World¡¯s debt repayment for six months. Suddenly, a wave of panic was triggered, and European stock markets plummeted across the board. Major European bank stocks, which are creditors of Dubai, were sold off on a large scale. The market exclaimed that the second wave of the financial tsunami was coming.
"A gazelle must run faster than a lion, otherwise it will be eaten. A lion must also run faster than a gazelle, otherwise it will starve to death. Whether you are a gazelle or a lion, you must outrun the other party. Fast." This is what Al Maktoum, the ruler of Dubai, who is known as the "desert myth", often hangs.A word on the side. But when Yang Xing first met this man, he warned him face to face not to run too fast, otherwise he would take too big a step and break his legs easily. Unfortunately, the chief did not listen to this advice at all.
Although Dubai lacks oil and gas resources, it has emerged as a new player in the Gulf region by relying on high-end real estate and tourism development. Grand projects such as the world's second-tallest skyscraper "Burj Khalifa" and the world's largest artificial island "Palm Island" have dazzled the world and attracted a large influx of institutional and individual funds, including British football star David Beckham. With the goal of building a logistics, leisure and financial hub in the Middle East, Dubai has promoted a US$300 billion construction project. Its largest real estate developer is Dubai World, supported by the Ruler of Dubai. The company's slogan is "The sun never sets", which shows its Ambition.
After the "911" terrorist attacks in the United States, people from the Middle East were restricted from traveling to Europe and the United States. Dubai took the opportunity to absorb regional leisure demand and played the role of a "financial liberated zone." In the process, the business of the state-owned enterprise Dubai World spans many fields such as port operations, real estate development, tourism and leisure, private equity funds, aviation projects, securities trading and financial services, and promotes large-scale projects around the world to realize the ambitions of the Dubai government. The debts of governments and enterprises continue to increase like a snowball. When Dubai's debt crisis broke out, its external debt was approximately US$80 billion, and Dubai World alone accounted for more than US$50 billion.
When the global financial crisis first emerged, the Gulf region was relatively unaffected. As a financial center and emerging economy in the Gulf, Dubai once became a "safe haven" and "treasury magnet" for global funds. But the good times did not last long. As the financial tsunami hit, major financial institutions in Europe and the United States, which were deeply in crisis, had to withdraw investment from Dubai construction projects in order to protect themselves. Dubai suddenly fell into a situation where it could not make ends meet, and many projects faced financial difficulties. Work was suspended and a large number of foreign workers returned home.
Dubai World is in trouble, indicating that the "Dubai Model" of large-scale borrowing for construction and economic development has been shattered. Many outside commentators believe that once Dubai World falls into a situation where it cannot repay its debts, it will have extremely serious negative consequences for Dubai World, Dubai's sovereign debt credit, and the UAE market confidence. Moody's and Standard & Poor's immediately significantly lowered the price of many Dubai World debts. The debt ratings of government-related institutions have caused them to lose their "investment grade" ratings, and some have been downgraded to junk status, even surpassing Iceland, which has not yet escaped the shadow of national bankruptcy.
As Dubai World and its subsidiaries lend heavily internationally, the banking industry, especially European and American banks, has been hardest hit by this default. Among large European banks, banks that often act as book managers for Dubai's bond and loan transactions include the British Barclays, Deutsche Bank, Royal Bank of Scotland, BNP Paribas, ING, Lloyds Banking Group. In addition, Standard Chartered and HSBC have also issued large amounts of loans to the Middle East. Among the large US banks that have participated in bond or loan transactions in the Principality of Dubai, they include Bank of America, Citigroup and JP Morgan Chase. This long list The list indicates that the European and American banking industries are facing a new round of blows.
Now that everyone thinks that the global economy is showing signs of recovery, the financial tsunami is almost over. Dubai suddenly announced a moratorium on debt repayments, which undoubtedly dealt a heavy blow to the market confidence that had just regained hope. Market participants are worried that Dubai World will become another Lehman Brothers. , triggering a new round of global credit crisis.
Once the Dubai World debt crisis was exposed, it quickly triggered a chain reaction around the world. From commercial banks in Taipei to builders in Sydney to insurance companies in Munich, some companies that may be implicated in this incident have come forward to clarify or refute the rumors, and the prices of related stocks have also plunged sharply.
At this time, Yang Xing threw out Buffett's famous investment saying "Be fearful when others are greedy; be greedy when others are fearful", saying that although Dubai has problems, it is also supported by the powerful Abu Dhabi. In addition, Saudi Arabia, Kuwait and other brotherly countries will not let it go. The icing on the cake is not as good as providing help when the time is right. At this time, it is not only cheap to buy the dip, but also win the gratitude of the Gulf countries, and it will also be of great help to the national oil import strategy. Since the overseas bargain-hunting operation in the United States went quite smoothly, the overseas bargain-hunting group decided to rescue Dubai.
In order to show his support for Dubai, Yang Xing personally opened the opening ceremony of the World Aviation Conference held in Dubai. In order to create a sensation, he brought several special exhibits, which indeed attracted the attention of all parties and made the current situation more popular. The morale of Dubai, which was in the miserable wind and rain, was boosted. While feeling grateful, it naturally cooperated with the various conditions proposed by the overseas bargain hunting group led by Yang Xing. To be continued. If you like this work, you are welcome to subscribe and reward on Qidian.com. Your support is my biggest motivation.
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