On the morning of June 5, the Paris stock market opened, and everyone involved in the Zhaoshi Group incident was staring at the shares of LVMH Group.
Bernard Arnault suffered a heart attack and collapsed yesterday in the headquarters building of lvmh Group. After timely treatment, he has been rescued. He was not in the company building this morning, but in his luxury villa staring at his company's stock price.
The villa has his personal doctor and a medical team serving him.
In a room on the first floor of the villa, Alden Gallup, the confidant who was fully responsible for this matter, was mobilizing funds and directing the battle. Bernard-Arnault was sitting in the lounge next to the room, and the projector displayed the lvmh Group's stock price, transaction details, and quotations in the software.
Bernard-Arnault was sitting on the sofa, his face ashen as he looked at the stock price of lvmh Group, which had turned downwards after an hour of fighting:
€226.08,
220.23 euros.
203.47 euros.
An hour and a half after opening, the stock fell 10%. Trading is suspended for 15 minutes.
Bernard-Arnault couldn't help but cover his heart with his hands, gasping for air, "Huh..., Huh..."
"Calm down, calm down, Mr. Arnault, your mood fluctuates too much." Arnault's personal doctor rushed to Arnault's side, calmed his emotions, and suggested: "Butler John, Mr. Arnault is not Suitable for watching stock price fluctuations.”
Old John, as Arnault's butler and confidant for many years, knew in his heart that the master would not give up, but he still followed the doctor's wishes and advised: "Mr. Arnault..."
Arnault clenched his fists hard, leaned on the back of the sofa, and squeezed out a sentence from his throat: "No. John, even if I die, I have to watch! I can't tolerate myself losing as soon as I wake up. War. Go tell Alden to do whatever it takes to bring the stock price back."
"As you wish, Mr. Arnault." After Old John saluted, he quickly went to the next room to give instructions.
At this time, in the next room, Alden Gallup was wiping the sweat from his forehead, "Quick, call the securities company, we will increase our leverage to the maximum!"
The moment it fell by 10%, a huge exclamation came from the trading floor of the Paris Exchange. Although Alden-Gallup and others cannot be heard here. However, these short 10 minutes are precious time for them to mobilize funds and rearrange their strategies.
"Alden, this could be dangerous," one trader said over his shoulder, raising concerns.
"I can't care about that right now. There's too much money on the short side. Damn it!" Alden Gallup shouted at the top of his lungs. This is a reaction under stress.
Old John opened the door and came in, just in time to see this scene. He saw Alden Gallup's face was a little distorted. Before he could speak, Alden Gallup stopped him and said: "Old John, I know, I know! Go tell Mr. Arnault that I need funds, a lot of funds! At least, at least 2 billion euros are needed. I can hold on today.”
Last night, Mr. Arnault passed a resolution at the lvmh board of directors to mobilize 5 billion euros from the lvmh group's books and transfer it to the stock account. However, ammunition is rapidly depleted.
The market value of LVMH Group is 140 billion euros, which does not mean that it has so much cash on its books. After 2008, many large enterprises and high-tech companies have become accustomed to retaining large amounts of cash on their books.
The three most famous companies are: Microsoft, Amazon, Google, and Apple. They all have a lot of money on their books. For example, Huawei's financial report shows that they have approximately US$30 billion in cash on their books.
lvmh Group is not a manufacturing company and does not have that much cash on its books. About 15 billion euros. Spending 5 billion euros this time can be said to be reaching the limit. Any further redeployment will affect the survival of the company.
This amount of capital, coupled with the amplification of leverage, can be said to be quite terrifying and can create turbulent waves in the stock market.
However, anyone familiar with European and American stock markets knows that the number of short-selling orders can even exceed two or three times the entire market value of a company.
Old John nodded, turned and left without saying a word.
Later, another 2.4 billion euros came in.
...
...
The midday sun shines on the river in Frankfurt, making the city as beautiful as a garden. Deutsche Bank's headquarters building is located on the river.
Looking at the trading screen in front of him, Chester Flynn, the co-president of the investment banking department, laughed and said: "That's enough. The share price of lvmh Group has dropped to 30%. Lily, you can call your boss now and ask him to He moved to negotiate a treaty with Arnaud to end the war."
Guo Lingyu, wearing a white suit and uniform, looked at the LVMH Group's stock price, which had fallen by 30%, and said with a smile: "Mr. Flynn, our boss will not take the initiative to call Bernard Arnault. This is a war started by them. , it should be the defeated party who takes the lead in suing for peace. It is not up to us who are provoked to come up with a peace plan."
These words made the other seven traders in the trading room look over: How domineering! The situation is now favorable, and the army of short sellers is sweeping across the board. Their operations are just step-by-step. This gives them some free time.
Chester Flynn laughed when he said this, "Lily, will you continue to short-sell your 500 million euros? I can't guarantee the safety of your funds if you continue to short-sell." In his words, the fangs of bloodthirsty capital were displayed.
According to the contract, he has completed his mission.
If Jing Gao still goes short, then he goes long and eats up the funds. Don’t blame him for not saying hello beforehand.
Because rumors are just rumors after all. The sales of lvmh Group are still good. The market will eventually react. Today's "battle" may have already attracted the attention of other big players. While the fundamentals of lvmh Group are still there, bargain hunting and long capital may not enter the market.
Of course, this timeline will be one month or two months.
Guo Lingyu has been working at Goldman Sachs for so many years. Of course, he is very knowledgeable about the style of investment banks. He said: "No. Our funds will make a profit and leave now. Please give the order."
Chester Flynn took a deep look at this oriental beauty, smiled slightly and said, "Okay."
...
...
London.
Yu Jie, assistant to the chairman of Morningside Bank with a petite figure and S-curve, is directing her team to "hunt" LVMH Group in the stock market.
"Sister Yu, there seems to be more funds in the long side." A trader said.
Yu Jie, dressed in office attire, said with a cheerful face: "No matter what, just smash it down." As she spoke, she operated the laptop in front of her. A sum of funds was immediately injected into the stock trading account from the British branch of the Bank of East Asia.
"Sister Yu, I need funds here!"
Yu Jie clicked on the computer again. After finishing the operation, she stood up and stretched comfortably.
There is no stock price that cannot be brought down with one stick. If so, give it another shot.
...
...
The Paris Stock Exchange will not close at noon but will continue trading. At two o'clock in the afternoon, the Pinault family of Kering Group announced a news at a specially held press conference.
"LV, the core brand of lvmh Group, used several OEMs from China for its limited edition handbags in 2017. At least 50% of the handbags did not meet the advertised leather standards. Instead, they were lowered by one level. Then they just print a limited edition logo on the handbags and sell them to the outside world. We at Kering Group strongly condemn this behavior and call on the entire leather industry to investigate this and urge LV to correct it."
Dozens of reporters attending the press conference were shocked by the news.
A reporter asked: "Mr. Pinault, is your news true and reliable? After all, it is slander..."
The influence of the Arnault family in France cannot be denied. The reporter present was speaking for him.
After Pino announced the news, he had no intention of accepting an interview. His identity is the head of Kering Group, not the head of the public relations department facing the media. He lowered his head, approached the microphone, and interrupted the reporter by saying, "I'm waiting for Arnault's lawyer's letter!" Then he stood up and left.
The press conference held in the Kering Group media hall swept across France like a tornado. The share price of LVMH Group fell almost simultaneously.
According to Pinault's accusation, this will be a crisis for the LV brand. If a luxury brand cannot be noble, luxurious and maintain style, this will be fatal to its brand image.
However, Kering Group CEO Pinault Jr. personally held a press conference to announce the news. This almost weighs on the reputation of the Pinault family. Most likely it's not fake.
The huge waves set off by this news were surging, and the Paris stock market was in chaos. I don’t know how many fund managers and traders involved in lvmh group stock trading were forced to take positions.
The huge amount of funds provided by Jinggao secretly fueled the flames!
At five o'clock in the afternoon, half an hour before the closing of the Paris stock market, the share price of LVMH Group was fixed at 183.69 euros. Plunged 18.75%.
The second limit drop.
The setting sun was swaying on the horizon, and the setting sun was like blood, making the Bernard-Arnault family villa in a wealthy area of Paris seem to cast a dark shadow. The tall tower top and the main body of the villa are reflected in the woods on the roadside, and their shadows are fragmented.
There was silence in the "trading room" on the first floor of the villa. Everyone looked at their computer screens in front of them with their mouths open.
Another limit down.
They worked hard for two days and two nights, and this is the result...?
Alden Gallup ignored the low morale of his men and walked out of the room in despair. Old John was guarding the door of the next room.
Old John already knows the latest news: the stock has dropped to its limit. But he dutifully stopped the somewhat confused Alden Gallup, "Dr. Harold gave Mr. Arnault medicine at noon. His mood swings were too severe, which was not good for his health.
Mr. Arnault is still sleeping and has not woken up. Alden, if you want to report to Mr. Arnault, you need to wait. "
Alden Gallup was obviously a little distracted, "Oh, what did you say? Okay!" He turned around, took two steps, and looked back: "Old John, please tell Mr. Arnault for me: I'm sorry."
Old John looked at Alden Gallup's leaving figure and suddenly felt inexplicably sad.
He quietly opened the door, and Arno was sleeping soundly inside. He was in a daze for a moment. When Mr. Arnault wakes up, will he be able to accept this result?
he does not know!
