Chapter 881 Paris Stock Crash

The fall in prices does not mean that the production costs of enterprises have fallen. Even because of the factors of rising labor and industrial raw materials, the production costs of many enterprises have not fallen but have risen.

The average demand orders provided by the UK and Russia are lower than market expectations, and many industries are facing a situation of oversupply. In this context, the life of the processing and manufacturing industry is naturally difficult.

In order to survive, everyone had to fight a price war. Companies that respond quickly are fine, at least they made a fortune in the early days of the war last year.

The market declined in the first quarter, and profits were generally good. After entering the second quarter, it was a tragedy, and a bunch of guys who fantasized about making a fortune in war joined in, further intensifying market competition.

It is impossible to withdraw, and the funds have become mechanical equipment and workshops. At this time, there is no way to find a pick-up man.

Relatively speaking, British companies are the least affected, and government procurement is given priority to the domestic market, which invisibly occupies the biggest advantage.

The worst among the big powers is undoubtedly the French industry and commerce. The British government's orders could not be grabbed, and the Russian orders faced competition from Austria.

The French government is willing to issue bonds to the Russians, in fact, it is also to compete for the market, and it is natural to purchase French goods with francs.

Even so, French industry and commerce can only get some orders for daily necessities, and the most profitable military industry cannot compete with Austria at all.

It's not that French companies don't work hard, or that the Russians treat them differently. The main reason is that the military-industrial system is different.

The Russian and Austrian weapons have the same caliber, they can be used directly after they are bought, and the logistical maintenance is very convenient.

If you buy French products, not only will the soldiers need to be retrained, but logistical supplies and maintenance will be a big problem. During the war, the tsarist government must consider practicality.

...

On May 24, 1890, another day when a listed company announced its financial report, the Paris Stock Exchange was already full of people.

From the faces of everyone talking and laughing, you can know that everyone is in a good mood. Looking forward to the stars and 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 by as much as 23.7%, and the growth rate of the foreign trade enterprise sector has once exceeded 57%.

Based on the rich returns during the Russian-Prussian War, everyone's expectations for the Anglo-Russian War were very high. Especially the financial report of the last quarter of last year proves this.

As for the fall in prices, I'm sorry the French people didn't feel it. Because of tariff barriers, French prices are relatively unaffected by international markets.

In these years, the news is slow, and the capitalists are all shrewd owners. The export income is lower than expected and the product backlog is serious. Naturally, these news must be kept strictly confidential.

If the rumors leaked ahead of time, who would take over for them? At the beginning of this year, the market supervision is about zero. Since the sales problems in the first quarter, everyone has been 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 man who was slightly middle-aged was reading a financial newspaper with relish.

"Amix, what are you looking at?"

The middle-aged fat man Amix replied with a little regret: "Financial newspaper, the Hexian Textile Factory is negotiating with the Russians, and if nothing else happens, it will be another big order of 30 million francs!

It's a pity that I'm timid. I heard a few days ago that the Hexian Textile Factory had a serious backlog of products. I quit half of it and bought the Fidolon Machinery Factory, which missed this wave of market. "

The visitor comforted: "It doesn't matter, the Fidolon Machinery Factory is also good. The downstream market is so good, and companies are expanding their production capacity. How can the performance of upstream equipment manufacturers be poor?"

This is the most common experience. Once the industry improves, companies in the entire industry chain will benefit.

Amix shook his head, upstream companies will benefit. However, the stock price increase is definitely not as large as that of the companies involved.

Now is the time of war, all industries related to strategic materials are good, how can there be a large-scale backlog of products?

Even if it is a backlog, it is also a case of corporate hoarding! Thinking of this, Amix directly greeted the whole family of the guy who delivered the message.

Looking at the smiling people, Amix asked tentatively, "Anthony, I remember you also bought this stock, so you should have a good harvest this time."

Anthony smiled slightly: "It just happened to catch up, I didn't buy much, only 20,000 shares.

But Amix, your courage is too small. The most important thing in our business is mentality. To analyze the overall market, there is no need to pay attention to gossip.

Capitalists are not fools. If there is a serious backlog of products, they would have known about layoffs and production cuts. It seems that there are job advertisements in the streets now! "

Hearing his friend's analysis, Amix's expression became even more ugly, as if he had lost another 100 million.

Judging the operation of enterprises from the labor market is the most basic ability of ordinary investors, even stock market novice should know.

Especially for the manufacturing industry, it is definitely the best time for the market when companies are aggressively recruiting.

It seemed that consciousness had said it, and Anthony hurriedly remedied: "Okay, Amix. Now wait for the company to patiently announce the financial report. Anyway, it is all profit, it is nothing more than a question of how much.

Maybe the performance of the machinery factory Cao Peng, the stock price is still higher than the textile factory. You must know that there have been a lot of new factories popping up recently, and they all need to purchase equipment. "

As soon as the voice fell, someone shouted again:

"This is impossible!"

"It's not true, you must be lying to me, right?"

...

With the appearance of the financial reports of one company after another, similar voices began to be heard.

Realizing that something was wrong, Amix and Anthony, who were still outside the crowd, hurriedly squeezed into the exchange.

But it was all too late, and the investors who got the earnings report, after the initial panic, have already started to sell their stocks.

The market is full of sell orders, and there are no buy orders at all. All investors in the field knew that the market was doomed.

Seeing that the situation was out of control, a group of well-prepared police officers appeared in the market and began to maintain order at the scene.

As of the close of the evening, the Paris stock market fell by 8.6%, and some individual stocks were directly cut in half.

This is just the beginning. The companies that announced their earnings today are only a small part, and the rest will be announced in the following week.

If most businesses fall short of market expectations, that would be a real disaster, and now it's just an appetizer.

It's just that this appetizer has directly tossed half of the Paris stock market's rise for more than half a year.

...