Chapter 185 Investigation?

Suddenly, the mobile telecommunications industries in France and Germany began to enter a "bloody storm".

O2 Telecom not only launched family packages, but also has a variety of options including couple packages, individual packages, etc. In just one week after its launch, the number of their users in Germany and France increased by 1 million. This is just the beginning...

At least half of the 1 billion pounds of pre-recharge received from users in the UK will be invested in the French and German markets, putting great pressure on the telecommunications companies in these two countries.

It is no exaggeration to say that in the shortest possible time, O2 Telecom’s logos and advertisements can be seen everywhere in major cities in the two countries...

…

“As investors have increased confidence in the U.S. economic prospects and have pessimistic expectations for the European economy, the U.S. dollar exchange rate has now risen to a multi-month high..."

In the office of Devon Hill Financial Center, Barron heard Daisy say to him:

“Since May, the U.S. dollar exchange rate has climbed nearly 10%. In May, the U.S. dollar exchange rate fell to a low of 1.1933 U.S. dollars for 1 euro. Now, 1 euro can only be exchanged for 1.09 U.S. dollars, and relative to the euro, the U.S. dollar It’s still continuing to appreciate…”

"So this is also your opinion?"

"Economic changes are always cyclical. From the end of July 2001, the exchange rate of the euro against the U.S. dollar was only 0.8764. By May this year, it reached a high of 1.1933, an increase of 36%. I think this is already Having reached a cyclical high, the U.S. dollar is likely to strengthen next, while the euro depreciates relative to the U.S. dollar and the exchange rate falls below 1..."

After hearing Daisy's analysis, Barron shook his head:

"The Fed will not watch their exchange rate against the euro continue to rise. There will definitely be moves to depreciate the dollar..."

"Why?"

"In order to avoid inflation, the Federal Reserve raised interest rates six times in a row, but since last year, they have begun to cut interest rates. According to my prediction, by the end of this year, the federal funds rate can be reduced to 1%..."

"1%? That would be the lowest point in 45 years!"

"Yes, if that is the case, the EU's interest rates will be higher than those of the United States. When the euro appreciates, the dollar depreciates is a high probability..."

The advantage of Daisy lies in this. After thinking about it, she said to Barron:

"If you insist that such a situation arises, then I would agree with you."

"So according to my estimation, before the end of the year, the exchange rate of the euro against the U.S. dollar will reach above 1.25, an appreciation of nearly 15% compared to now. In the next few years, the appreciation of the euro against the U.S. dollar will still be the mainstream."

The reason why he came to this conclusion is of course that Barron knew that in the original time and space, at the end of 2003, the exchange rate of the euro against the U.S. dollar did exceed 1.25, and by the end of next year, it was even closer to 1.4, and by June 15, 2008 On the same day, it reached its highest point of 1.599.

Of course, this period is not a unilateral rise, there will always be recurrences, but the appreciation of the euro against the US dollar is the mainstream.

Therefore, now is also a very good opportunity to go long on the euro in the foreign exchange market. In just over four months, the euro will rise by 15% against the U.S. dollar, and with the massive trading volume in the foreign exchange market, they can fully use dozens of Billions or even tens of billions of funds can be used to operate!

They just need to use leverage and borrow dollars at this time and exchange them for euros.

After the euro appreciates against the U.S. dollar, you can eventually make a profit by converting the euro into U.S. dollars.

This time, DS Capital is preparing to use 1 billion pounds, using up to 20 times leverage, for a big one!

On the one hand, they still have quite a lot of funds in their own accounts. In addition, O2 Telecom users have pre-deposited fees. Although the 1 billion pounds will be invested in the update and deployment of facilities in England, Germany and France, this money is also You don’t need to spend it right away. There is no problem in using part of it temporarily.

Although Barron's has always made correct judgments before, this time it is different. The principal of operating the foreign exchange market alone is as high as 1 billion pounds, and through leverage, the operation is worth 200 pounds. Amount of funds!

When Barron made his decision, Daisy even felt a trembling feeling running through her body - nothing could compare to this kind of stimulation.

…

“We can see that because of high tariffs, many people have to shorten the time they spend talking on mobile phones as much as possible. On the other hand, the iteration of mobile communications requires telecommunications companies to invest huge funds in laying out facilities. , and for their economic interests, many telecommunications companies will only deploy signal base stations in densely populated areas, which has led to a waste of resources in the entire society."

"It was precisely at this time that O2 took the lead in significantly reducing its tariffs and upgrading its signal base stations to increase coverage. However, it attracted an investigation by the regulatory authorities. This makes people wonder whether the British people do not deserve the relative benefits. What about cheap mobile communications services that can cover more areas?”

This is a special report in the latest issue of "The Independent". The reporter investigated the current mobile communication tariffs in the UK and interviewed many ordinary users. Finally, he questioned why the regulatory authorities investigated O2, which took the initiative to reduce mobile communication tariffs... …

Yes, the background of this report is that after O2 Telecom implemented a series of measures and took the initiative to start a "price war" in the fields of mobile communications and personal broadband, telecom giants including Vodafone and BT responded quickly - —The British Competition and Markets Authority (CMA) has just stated that it will investigate whether O2 Telecom is suspected of unfair competition.

As a result, newspapers under the Independent Press directly published this series of reports, which caused great repercussions in British society. Many people who learned about the incident cursed the "evil deeds" of the CMA and other telecommunications companies. , which also caused great pressure on the CMA.

"Yes, Your Highness the Duke, officials from the CMA came to our place today. Their attitude has changed. They politely said that it is just a routine investigation and there is no definite conclusion yet, let alone any negative impact on the company. Influence……"

Barry Trelles, CEO of O2 Telecom, told Barron's on the phone.

In Barron's view, the CMA will not really do anything to O2 in this matter. Although BT Telecom and Vodafone are very powerful, O2 Telecom is not a vegetarian.

At most, the CMA will give them a warning.

But how could he do this? In this matter itself, O2 Telecom occupies the moral high ground, and in turn will embarrass the CMA first.

As for whether the CMA will be unhappy and come to O2 to find something?

What do you think? Barron hopes that they will make a big fuss. This will be a good publicity and advertising opportunity for O2 Telecom.