Chapter 784 – The Downfall of Eco-Friendliness
Anxiety.
The beginning is the most difficult.
Could something like that possibly happen?
“CDS premiums in Europe are soaring!”
“No, no way…”
“Italy, look at Italy!”
Once it catches fire, it is instantaneous.
Fear that an economic crisis could occur.
‘It’s not a story that can be ruled out.’
You gain weight.
It cannot be seen as an unrealistic delusion.
“It may be the trigger for a financial crisis. Considering the situation in Europe, it cannot be said to be an empty story.”
I know that.
Wall Street.
Hedge funds are closely watching the situation in Europe.
It’s so unusual.
It openly sends a red signal.
Perhaps a large bomb beyond imagination.
“I agree.”
“The market is already reacting.”
“It would be even stranger if a black swan didn’t occur in this high interest rate situation.”
It may hit the stock market.
The catalyst has already worked.
‘It’s a problem even if you raise the interest rate, and it’s a problem even if you don’t raise it.’
Interest rate.
It is the most important topic in the market recently.
It is natural that inflation is soaring.
—————————–±
『US Consumer Price Index YoY』
June- 9.1%
May- 8.6%
April- 8.3%
March- 8.5%
February- 7.9%
±——————————————–
Even in the U.S., It’s to die for.
It’s been a while since I went beyond the normal range.
“The FED took a big step. Yet Europe is maintaining zero interest rates. The reason is well known.”
What if inflation is high?
There is no choice but to raise interest rates.
This is not the time to talk about temporary things.
‘And if the United States raises it.’
The whole world must raise it.
Only then will there be no political or economic loss.
Quite a few countries are already raising it.
However, the EU, a major developed country.
“I don’t know about France or Northern Europe… But the situation is not easy in other countries.”
“You probably don’t have the stamina to withstand high interest rates?”
“Long-term stocks are showing signs.”
Zero interest rate.
Nostalgia from the Corona era remains.
The interest rate was not raised at all.
And that’s no coincidence.
It is the result of much thought and deliberation by economics scholars.
‘I guess we can’t reach an agreement.’
It is due to the complex structure of the EU.
Many countries use one currency.
Are we experiencing rising inflation?
Can we tolerate inflation?
There is a difference.
“Countries such as Italy and Hungary have nearly doubled in the past month. It’s hard to say this is a normal movement.”
The economic situation is also different.
Interest rates cannot be raised just because you want to.
‘Because my physical strength can’t support it at all.’
It can be counterproductive.
Households and businesses that cannot withstand high interest rates are struggling.
Even if you don’t upload it, it’s the same.
Why?
Because that is a free market economy.
—————————–±
『Italian 10-year government bond interest rate』
4.170 ▲2.599 (+165.43%)
[Graph soaring over the past 3 months. Jpg]
±——————————————–
You guys are crazy about inflation, right?
Interest rates need to be raised, right?
The market is asking questions.
“It may be overly pessimistic to say that the EU will collapse, but it wouldn’t be surprising if one or two countries went bankrupt.”
“Like Greece.”
“There is a good chance.”
However, if interest rates are raised, the economy will collapse.
In a situation where I can’t do anything.
‘Even eco-friendly policies are becoming a problem.’
Eco-friendly.
For some, it may be a cause of saving the earth and overcoming the climate crisis.
Not so for investors.
It is interpreted as a change in industrial structure.
“It has become difficult to stick to eco-friendliness. However, if we give up eco-friendliness… Europe cannot be a leader in the eco-friendly era.”
It is at the center.
It has been the strongest advocate for eco-friendliness in the international community.
Environmental regulations.
Voices of civic groups.
Although it was created in the hands of the EU.
─The sell order has been fulfilled!
Double kill!
Triple kill!
It may not be possible in the future.
Just having that possibility is enough.
“It’s checkmate.”
“The economy will continue to deteriorate.”
“Unless the ECB (European Central Bank) intervenes.”
Hedge fund.
They are the hyenas of the financial market.
I will do anything as long as I can make money.
I do not consider good or evil.
Even if it means throwing a country into the gutter.
Daily News− 「”Hedge funds are the main culprit of the Asian financial crisis”… IMF Report”
That’s actually true.
IMF.
A representative example is the Asian financial crisis triggered by the collapse of the Thai baht.
“Unless the ECB purchases large amounts of bonds, it is impossible for Italy to overcome the crisis on its own. And if the ECB releases money, the value of the euro will fall. Therefore, if you short Italy and hedge by shorting the euro, you can very safely increase the spread. I can eat it.”
This is not a coincidence.
Proceed with intention.
When I typed on the calculator.
‘Surely…’
‘This is 100% money.’
‘There is no target as easy to attack as Italy right now.’
This is because it generates profits.
A fantastic bet with no minimum loss, but a double if you do well.
Rumors spread widely on Wall Street.
Hyenas never operate as a small elite.
“I wish we were the advance party.”
“Hehe, they’ll smell blood and gather around.”
“We just have to enjoy the situation based on a stable position.”
Do you have anything to eat?
They rush in droves to rip off even a single piece of flesh.
The target is decided.
Hedge funds are attacking Italy.
Without knowing that it was one man’s intention.
* * *
It appears above the water.
CNN− “Europe, the highest inflation in 50 years… Pressure to raise ECB base interest rate”
Al Jazeera− “Italy’s economy has entered choppy waters”
Korean Newspaper− “Will Italy start another European-led debt crisis?”
Economy.
It’s complicated.
It’s also something I don’t want to know.
It is not widely reported in the news.
Because there is nothing good about mentioning it.
〈Corporate bond interest rates are rising at a steep rate. Despite appeals from companies, the government is not taking a clear stance…〉
The situation deteriorates rapidly.
It is visible that the stock market and bonds are collapsing.
It is aired on the news.
It pours into newspapers.
People’s psychology is getting worse.
‘…’
Of course.
This is embarrassing for Sebastiano Agnelli, the chairman of the Agnelli Group.
“Banks are suddenly changing their language.”
“Making excuses about market interest rates…”
“I clearly have no intention of lending you the money!”
The industrial structure is changing.
We must stay ahead of the upcoming eco-friendly era.
That method.
It’s about investing.
Factories and facilities were aggressively expanded.
“Interest rates are rising in such a short period of time. As the market environment changes… We accept that we have changed our position.”
By borrowing money.
There was a problem with that.
The bank suddenly turned its palm over.
No, not suddenly.
The explanation of the executive in charge cannot be considered incorrect.
“It’s a short-term shock caused by a supply shortage, right?”
“What should we do when a war breaks out?”
“They don’t know that it’s coexistence!”
It is different from CPI.
The rise in consumer prices goes through several stages.
There is no such thing in transactions between companies.
It is directly proportional to the increase in raw material prices.
—————————–±
『Italian Producer Price Index YoY』
June- 34.1%
May- 34.6%
April- 35.3%
March- 36.9%
February- 32.8%
±——————————————–
Producer price index soared.
It is a level that has never been seen in half a century.
Gulp!
If that’s all, I’d be happy.
It can be dismissed as a temporary thing.
〈〈Awake! Awake!〉〉
Outside the window.
The most annoying thing in the world happens.
Companies are waving their hands.
“That crazy…, Ugh. Environmental activists are also in trouble! They don’t even know that we pay taxes to support them.”
Europe is particularly severe.
The influence of civic groups is comparable to that of government agencies.
In fact, it is also related to politicians.
Even if I want to ignore it, I can’t.
‘It’s all because of that kid.’
Originally, they were on their side.
Consolidating Europe’s eco-friendly leadership.
Lee Chan-wook.
This guy released the poison.
Civic groups carry out unexpected activities.
“It is virtually impossible to meet their demands. China is a major customer that cannot be abandoned.”
“I didn’t even intend to listen.”
“Even putting that aside… It seems like we have no choice but to consider the transition to eco-friendliness once again.”
It’s going with the flow.
Eco-friendly.
The business transformation they aimed for.
‘What if things go wrong in the world?’
Rising interest rates.
Never-ending war.
Even the situation in Italy is shaking.
They are putting pressure on it as if they were trying to win.
I really don’t want to admit it, but.
“It is impossible to use 100% eco-friendly energy. Even eco-friendly projects… Are not in a situation where they can be implemented right away.”
You are put in a situation where you have no choice but to do it.
Nevertheless, it is not easy to give up.
Gulp!
A hundred years of planning.
Running a company is not something that is done looking at the immediate 1 or 2 years.
We look 10, 20 years into the future, and if possible, even a century into the future.
That is the mindset of a CEO.
“Is there really no way?”
“If you do something wrong, there is a risk that your credit rating will be lowered. If that happens…”
“Stop, stop! That’s enough explanation.”
“Yes… Chairman.”
I can’t do it.
You are put in a situation where you have to survive now, not in the future.
Agnelli Group.
It was a turning point in the fall of the conglomerate that practically controlled Italy.
