Chapter 881： Paris stock market crash (1/2)
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The fall in prices does not mean that the production costs of enterprises have fallen. Even because of the rise in labor and industrial raw materials, the production costs of many enterprises have risen instead of falling.
The average demand orders provided by the UK and Russia are lower than market expectations, and many industries are facing oversupply. In this context, the days of processing and manufacturing are naturally not easy.
In order to survive, everyone had to fight the price war. The fast-reacting companies are okay, at least they made a fortune at the beginning of last year's war.
The market declined in the first quarter, and overall profits were good. After entering the second quarter, there was a tragedy. A group of guys fantasizing about making fortunes joined in, further aggravating market competition.
It is impossible to withdraw, the funds have already turned into mechanical equipment and workshops, and at this time, there is no way to find the pick-up man.
Relatively speaking, the least affected companies are British companies. Government procurement has priority over domestic companies, and it occupies the biggest advantage invisible.
The most miserable among the big powers is undoubtedly the French industry and commerce. The British government's orders are not available, and the Russian orders are facing competition from Austria.
The French government is willing to issue bonds to the Russians. In fact, it is also to compete for the market. Naturally, the French francs have to purchase French goods.
Even so, French industry and commerce can only get a part of daily necessities orders, and the most profitable military industry field simply cannot compete with Austria.
It is not that French companies do not work hard, nor are they treated differently by the Russians, mainly because the military system is different.
The Russian-Austrian weapons have the same caliber, they can be used directly after purchase, and the logistics maintenance is very convenient.
If you buy French products, not only do soldiers need to be retrained, but logistics and maintenance are also a major problem. The Tsarist government must consider practicality during the war.
...
On May 24, 1890, another day when listed companies announced financial reports, the Paris Stock Exchange was already full of people.
From the expressions of everyone talking and laughing, you can know that everyone is in a good mood. Looking forward to the stars and looking to the moon, the Anglo-Russian war broke out, and now is the time to harvest.
From the outbreak of the Anglo-Russian War to the present, the average share price of the Paris stock market has risen as much as 23.7%, and the growth of the foreign trade enterprise sector has once exceeded 57%, and there are not many who have doubled the stock price.
Based on the generous returns during the Russo-Prussian War, everyone has high expectations for the Anglo-Russian War. Especially the financial report of the last quarter of last year proves this point.
As for the price drop, I am sorry that the French people did not feel it. Because of tariff barriers, French prices are relatively less affected by the international market.
The news has been slow this year. Capitalists are savvy masters. The export earnings are lower than expected and the product backlog is serious. Naturally, these news must be kept strictly confidential.
If the wind leaks in advance, who will pick them up? This year's market regulation is about zero. Since the first quarter sales problems, everyone is slowly reducing their shares.
Under the constant good news, ordinary investors simply do not know that the crisis is approaching.
In front of the exchange, a fat middle-aged fat man was holding a financial newspaper and was reading with interest.
”Amex, what are you looking at?”
The middle-aged fat man Amicus replied with regret, ”The financial newspaper, Hex Textile Mill is negotiating with the Russians. If nothing goes wrong, it will be another big order of 30 million francs!
It is a pity that I am timid. I heard a few days ago that the backlog of Hex Textile's products was serious, and I withdrew from half of it and bought Fidoron Machinery Factory. I missed this wave of quotes. ”
The person came to comfort: ”It doesn't matter, the Fedron Machinery Factory is also good. The downstream market is so good, companies are expanding their production capacity. How can the performance of upstream equipment manufacturers be poor?”