Chapter 705 Loophole

As mentioned before, the so-called arms sales between countries have never only considered price factors, but also require political considerations.

You could say it's like some kind of protection money.

Even if the price of some weapons is a little high, you still have to buy it. After all, if you don't let your brother make more money, how can he be willing to protect your safety?

For Colo, he is a member of the Commonwealth, and his relationship with Britain is relatively close. If they want to buy military equipment, Britain is naturally the best target.

"In this regard, I can help you contact the British side, and I will definitely be able to give you some discounts in terms of price..."

Barron said to him:

"And we don't have to buy too advanced ships, otherwise it will be a big burden for Colo."

As Barron said, for a small country like Colo, it is not necessary to have very strong maritime strength. It only needs to have a certain defense force.

It seems that the main threat they face now is pirates in West Africa.

As for neighboring countries, whether it is Ghana or Benin, their naval strength is also extremely limited, and the only one or two ships they have can be called antiques.

As for pirates in the waters of West Africa, there is no need to use overly advanced ships to deal with them. After all, the so-called pirates in Africa often use speedboats. There are several people on them holding AKs and at most RPGs. The main thing is to come. Go like the wind...

If the ship is too big, it will be difficult to catch up with them.

Moreover, it would be a complete waste to attack these small speedboats with overly advanced weapons.

As for procurement negotiations, there is no need to worry.

After all, for now, temporarily adding a few gunboats is enough to deal with the current situation.

Next, Barron will also go to meet with relevant personnel in England, including Brown and financial powerhouse Darling.

Because United Energy Group owns 30% of the shares of Colo Petroleum Company, and a considerable part of the petroleum products sold by Colo Petroleum Company is used to satisfy the British market.

In this way, the safety and stability of the Colo offshore oil field is also of considerable significance to Britain's energy security.

So it is only right for them to support each other for this, not to mention that they only need to lower the selling price.

After all, these ships are already quite old, and some are already facing retirement in the British Navy.

…

"His name is Peter, and he is one of the traders in the investment department of NM Rothschild Bank that we have identified..."

Daisy handed Barron a piece of information and said to him:

"Although he is not an important person in the department, because of his good investment returns before, Peter has a considerable level in the investment department of NM Rothschild Bank and can have relatively high investment authority."

“What’s so interesting about this guy?”

“Through our analysis of some of his chats and behaviors we collected, we found that this person has a rather paranoid personality, especially he is very confident in his own analysis results. This can be seen from some of his previous investment styles. The most important thing is that he is now very optimistic about the rise in international gold prices and holds a considerable position..."

In fact, it is not unexpected to be optimistic about the rise in gold prices under the current circumstances.

Last year, the international gold price once reached a historical high, but due to the impact of the subprime mortgage crisis, there was a considerable decline.

But now, with the economic recovery and the influence of various countries' monetary policies, the upward trend of gold prices seems to be reasonable.

As we all know, the price of gold futures is affected by factors such as economic cycles, monetary policies, and wars.

For example, in an economic downturn, because investors will be cautious about investment, gold as a safe-haven asset will be favored, so it will tend to rise.

In addition, when the quantitative easing policy is carried out, as the money supply increases and the amount of funds flowing into the market increases, it is easy for more funds to enter gold investment and raise its price.

As for war, it is easier to understand. After all, China has a saying of "gold in prosperous times and troubled times" since ancient times.

However, combined with Peter's trading style and the fact that gold futures have been below $1,000 per ounce in the recent period, and the rise and fall have been relatively gentle, then if you hold a considerable gold futures position , facing the current market situation, it is very likely that investment will be made with relatively high leverage.

So if these investments suffer considerable losses, what will the other party do?

Either take the loss and get out, or invest more money to verify your judgment.

Of course, Barron's and the others hope that Peter will eventually choose the second result. In this case, the losses of NM Schchild Bank's investment department will be expanded among the increasing positions.

Although investment departments like this have their own risk control systems, the larger the institution, the more likely it is that the risk control system will be negligent.

For example, when the Societe Generale trader caused huge losses, the other party easily concealed their risk control system.

Naturally, Barron and his team will not put all their hopes on Peter, a trader.

For the entire LCR Rothschild Group, most of the assets they manage will be allocated to products with relatively stable returns, such as real estate, bonds, and stocks of large companies. For these investments, even if there will be certain losses due to market fluctuations, they are very controllable.

But just like the American International Group during the subprime mortgage crisis, their core business is a very high-quality insurance business, but it is because their small investment department guaranteed some subprime mortgage bonds that eventually brought unimaginable huge losses to the American International Group during the subprime mortgage crisis. It brought down the largest insurance group in the United States.

The same is true for the LCR Rothschild Group. Even if their main business is very stable, they may still suffer excess losses that can harm themselves due to guarantees or bets from certain departments.

In this case, Barron needs to carefully select investment directions that do not seem to have traps on the surface for one of their departments, and then make corresponding bets.

Well, the sovereign debt crisis that will spread to many European countries will be a very good opportunity.