Rebirth of the Financial Overlord

Bank of England, Robin Leigh Pemberton looked at the Reuters screen with deep worry in his eyes.

Affected by Schlesinger's opinions, when the market closed in the early morning, the exchange rate of the British pound against the Mark once fell below the floating lower track of the European Exchange Rate Mechanism.

2.7880

This is a very dangerous position. Once the price comparison cannot get off the floating lower rail, it will be like a magnet, attracting speculators from all over the world.

After thinking about it for a moment, Pemberton was going to call Norman Lamont to ask his opinion.

ring ring ring——

The phone rang unexpectedly, and when Pemberton answered the phone, Lamont's familiar voice came over.

"Robin. It's me, Lamont. You think it's better for us to raise rates at a time."

"I'm just going to discuss this issue with you. In my opinion, raise the interest rate by 2% first to defend the price. I believe that the news will spread and we can buy some pounds to temporarily break the price from the current range. If it is true No, it would be better to raise interest rates a second time.”

"That's a good idea."

"Then I'll ask the press office to make an announcement now."

"."

After hanging up the phone with Schlesinger, Norman Lamont lit the cigarette he hadn't smoked for a long time. He no longer had the confidence in the conference room, let alone the confidence and toughness he had when facing the media. Between public and private, he doesn't know whether his actions are right or wrong. The battle between conscience and reason, duty and choice makes him fall into deep contemplation.

Confidence is more important than gold!

But Lamont really doesn't have much confidence. As the governor of the Bundesbank, Schlesinger's remarks have attracted worldwide attention. Now he said that the pound needs to be devalued, and he also met with a big short of international capital. It is telling speculators all over the world-sell Britain.

Raising interest rates is now one of the last trump cards if you want to keep the pound on the lower rails.

The sun shines through the glass outside the window and shines on Lamont's already graying hair. The bright light makes him feel very tangled and melancholy.

If the pound can be kept in the ECU, then his position as chancellor of the exchequer will not be affected, and the pound will eventually be forced out of the European exchange rate mechanism. Then his short position in the Royal Bank of Scotland Group is just a risk hedging transaction.

Finally, Lamont sighed.

Since the Governor of Hong Kong promised to urge the Monetary Authority to buy sterling, he has done what he should have done, and he has not neglected his duty.

Do your best and obey the destiny.

If Hong Kong can take over the selling in the Asian market, the pressure on the Bank of England will be much easier. As long as it can take over the selling in the US and London markets, the pound may be able to survive this crisis.

Probably because he had done his best in his job, the entanglement in Lamont's heart suddenly relaxed a lot.

Eight o'clock in the morning, Bank of England.

After the call was over, President Robin Leigh Pemberton held a brief meeting, and the Central Bank's Information Department issued an announcement - raising the benchmark interest rate to 12%.

Canary Wharf, One Canada Square.

Capital One Investment Corp.

"Now the Bank of England has only two cards in its hands. It uses interest rate hikes to keep capital outflows, and then buys sterling in the market to try to repel the sellers."

"But if the Bank of England raises interest rates, it is bound to have a serious impact on the securities market and the government bond market."

"."

In the central conference room, Shen Jiannan sat at the head, quietly listening to the analysis and suggestions of the managers at all levels.

His face was very calm, and there was nothing unusual in his eyes, but in his heart, there was an indescribable feeling of excitement.

Because, the person who is currently analyzing the cards in England's hand in an orderly manner is called Yu Zheng.

Shen Jiannan never expected that this honest person who used to look very dull at school, even blushing when he spoke, has grown to this point now.

What about those students who are currently staying in China?

In just a short time, Yu Zheng was able to analyze the hole cards held by the Bank of England from various angles, and how far the students who were better and more responsive than him would grow now.

"Treasury bonds have a fixed interest rate. Even if the market interest rate changes after issuance, the bond interest payment will not be adjusted. If the Bank of England raises interest rates, the demand in the government bond market will inevitably be greatly reduced."

"So, I think we can sell a larger position in Treasuries at this point."

Is this the top talent of an era?

Seeing Yu Zheng nervously speaking out all his thoughts, Shen Jiannan's eyes flashed in a trance, that guy who blushed and said that money can buy things, seemed like just yesterday.

"Mr. Shen, is there something wrong with what I said?"

"No. I agree with your proposal. Very well said, nothing to add."

A teacher for a day, a teacher for life.

People like Yu Zheng have always thought so in their hearts.

With Shen Jiannan's approval, a look of excitement flashed across his eyes, and he quickly took a deep breath.

"The Bank of England's attention is now on the exchange rate price. They cannot take into account the interest rate market and the securities market. Even if they want to, they cannot do it. Unless, stop the issuance of national debt, or buy national debt in the market.

But this is a paradoxical relationship.

In consideration of hedging risks, I think that more selling positions can be established in the treasury bond futures and securities markets. "

crisis!

A huge crisis made William unable to sit still.

Shen Jiannan and Yu Zheng had a teacher-student relationship, and what this guy seemed to say made a lot of sense.

"What if the Bank of England doesn't raise interest rates? Then we may have a huge loss in the positions we have established in the government bond and securities markets."

"."

Shen Jiannan and Yu Zhengqi gave William an idiot look.

Immediately, William also realized that most of his rebuttals hadn't gone through his brain.

If the Bank of England does not raise interest rates, the pound will only depreciate, which is a completely unsolvable deadlock.

Britain is dead.

bang bang——

Suddenly, there was a knock on the door, and William's secretary walked in with a document.

"Boss, the Bank of England Press Office has just issued an announcement."

Announcement of the Bank of England raising interest rates.

Looking at the short paragraph above, Shen Jiannan smiled slightly and snapped his fingers.

"Very good. Game on!"

The wind helps the fire, and the fire helps the wind.

Although Pemberton has never learned these eight characters, some things are essentially the same. When the press office announced the news, he personally walked to the market trading department of the bank.

"Jimmy. We need to eliminate the negative impact of Schlesinger's speech. You must seize this opportunity. We are running out of cards."

As the chief trader of the Bank of England, Jimmy McCafe is well aware of the seriousness of the situation. The pound gapped so much in the early trading. If the gap cannot be recovered, it will mean a disaster.

However, he was not too worried. The central bank raised the interest rate to 12% at one time. If this cannot eliminate the negative impact brought by the Germans, then he, the chief trader, should stop doing it.

"Hey guys, get your spirits up and show the goddamn bears what we're good at."

"."

"2.7890 buy 10 million"

"Buy 50 million at 2.7915"

"Buy 30 million at 2.9250"

"."

Following Jimmy McCuffe's explanation, the traders immediately threw themselves into their work, holding the phone or typing on the keyboard, and entered one purchase order after another in the spot market.

With such a large buy order in spot exchange, the futures market immediately reacted accordingly. Large sums of buying and selling made the exchange rate between the British pound and the Mark rise rapidly.

2.7885 buy 30

2.7892 sell flat 2

2.7912 Buy 3

2.7935 Buy 5

In just five minutes, under the news of England's interest rate hike and the Bank of England's investment of one billion pounds, the exchange rate of the British pound against the mark rose like a rocket, and quickly filled the market that was affected by the decline in the New York market.

Everything went very smoothly.

Robin Leigh Pemberton breathed a sigh of relief, and quickly picked up the phone to report the good news to Norman Lamont.

Regarding this, Lamont didn't know whether to be happy or depressed, but in the end, he felt that the result was not bad.

"That's it, let those damn bears see how good we are."

"."

Suddenly, there was a moment of silence on the phone.

Instinctively, Norman Lamont felt something was wrong.

"Robin, are you still there? What happened?"

Robin Leigh Pemberton of the Bank of England stared blankly at the trend of 1992 government bonds on Reuters, his throat subconsciously wriggled several times.

100.285 Sell 6

100.270 Sell 6

100.265 Sell 6

100.225 Sell 6