On the morning of June 5, the Paris stock market opened, and everyone involved in the Zhaoshi Group incident was staring at the LVMH Group's stocks.
Bernard Arnault suffered a heart attack and fainted in the LVMH Group's headquarters building yesterday. After timely treatment, he has been rescued. He was not in the company building this morning, but was staring at his company in his luxury villa.
share price.
The villa has his personal doctor and a medical team to serve him.
In a room on the first floor of the villa, Alden Gallup, the confidant who is fully responsible for this matter, is mobilizing funds and directing operations. Bernard Arnault is sitting in the lounge next to the room, and the projector will
The LVMH Group's stock price, transaction details, and quotations are all displayed in the software.
Bernard-Arnault was sitting on the sofa, looking with a livid face 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 price dropped 10%. Trading was suspended for 15 minutes.
Bernard-Arnault couldn't help but cover his heart with his hands, gasping for air, "Huh, uh"
"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 continue watching! 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 the 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!"
At the moment of the 10% drop, a huge exclamation came from the trading floor of the Paris Exchange. Although Alden Gallup and others could not hear it here. However, these short 10 minutes were a moment of mobilization for them.
Funds, valuable time to rearrange strategies.
"Alden, this could be dangerous," one trader said over his shoulder, expressing concern.
"I can't control it now. There are too many short-selling funds. Damn it!" Alden Gallup shouted hoarsely. This was a reaction under heavy pressure.
Old John opened the door and came in. He happened to see this scene. He saw that Alden Gallup's face was a little distorted. Before he could speak, Alden Gallup stopped him and said: "Old John, I
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 for me to 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, the ammunition is rapidly being consumed.
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 companies and high-tech companies are 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 large amount of funds 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 it does not have that much cash on its books. It is about 15 billion euros. This time it has taken 5 billion euros, which can be said to be the limit. Any further withdrawals 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, and the city is as beautiful as a garden. The headquarters building of Deutsche Bank is located on the riverside.
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 fallen to 30%. Lily, you can call your boss now and ask him to
He took action and negotiated a treaty with Arnaud to end the war."
Guo Lingyu, wearing a white suit and uniform, looked at the share price of LVMH Group, 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 very good, and the army of short sellers is sweeping across. Their operations can be done 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, he showed the fangs of bloodthirsty capital.
According to the contract, he has completed his mission.
If Jing Gao still wants to go short, then he goes long and eats up the funds. Don’t blame him for not saying hello in advance.
Because rumors are just rumors after all. The sales of LVMH Group are still good. The market will eventually react. Today's "war" may have attracted the attention of other big players. While the fundamentals of LVMH Group are still there, bargain hunting
, 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 the market 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 was dressed in an office uniform and said with a cheerful face: "No matter what, just smash it." 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 there is, then another one will hit it.
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 it.
After announcing the news, Pinault had no intention of accepting an interview. His identity was the head of the 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!" He said, getting up and leaving.
The press conference held in the Kering Group's media hall swept across France like a tornado. LVMH's share price fell almost simultaneously.
According to Pinault Jr.'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 put pressure on the reputation of the Pinault family. There is a high probability that it is 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 situation!
At five o'clock in the afternoon, half an hour before the closing of the Paris stock market, LVMH Group's share price was fixed at 183.69 euros, plummeting 18.75%.
The second limit drop.
The setting sun is swaying on the horizon, and the setting sun is like blood, making the Bernard-Arnault family villa in a wealthy area of Paris seem to cast a dark shadow. The high tower top and the main body of the villa are reflected on the roadside.
In the woods, the shadows are fragmented.
There was silence in the "trading room" on the first floor of the villa. Everyone was staring at their computer screens in front of them in stunned silence.
Another limit down.
They struggled for two days and two nights, and this is the result?
Alden Gallup ignored the low morale of his subordinates and walked out of the room in despair. Old John was guarding the door of the next room.
Old John already knew the latest news: the stock price had dropped to the limit. But he dutifully stopped Alden Gallup, who was a little confused, "Dr. Harold gave Mr. Arnault medicine at noon. His mood swings were too much."
Terrible, not good for your health.
Mr. Arnault is still asleep 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 and took two steps, then turned back and said: "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. Inside, Arnault was sleeping soundly. He was in a daze for a moment. When Mr. Arnault woke up, could he accept this result?
