Chapter 510: Fluctuations

[Chapter 598: Fluctuations]

The Kuwaitis are generally decent folks; there are many people they owe gratitude to. However, William White is definitely someone who needs to be appeased. White Bank isn't an investment bank; they prefer this more stable form of lending. Of course, one can't consume everything at once; asset allocation can't be too haphazard. Balance, balance is very important.

When they respect him a little, he certainly won't go overboard. White Bank has also offered them a very low interest rate.

William White is well aware that, over time, the Kuwait Investment Authority will become a behemoth. Lending them a hand when they're facing difficulties is clearly better than kicking them when they're down.

With the resumption of production in Kuwait on the horizon, the previously stable oil prices are starting to wobble.

The stock market in Japan has shown a tentative bounce -- but it seems there's no easy fix just yet. The key problem is that the central bank plans to intervene in the housing market.

A plunge in housing prices, of course, is harmful to the economy, and a spike would be even worse. Let's not even talk about whether a bubble will burst; just consider this: if your housing prices go up, naturally, rent will have to follow suit.

Well then, will people even want to open stores and do business anymore?

Let's not mention commercial properties; residential buildings are no different. If rent is so high, and the bosses aren't increasing wages, who's going to stick around? If wages rise too much, where's the competitiveness left?

The economic indicators of Japan are worrying, and the market's anxious mood is escalating. The imminent resumption of partial crude oil supply in Kuwait is impacting the Brent crude futures contracts, which are dropping.

Iron ore prices, which should have fallen, are actually rising because of supply interruptions from Australia.

The dockworkers' strike has been ongoing for quite some time now, and it seems the union has no intention of compromising.

...

"Boss, it's been so long since the strike began, and you haven't reacted at all. I'm telling you, the losses are huge," Jason laughed, his expression cheeky as he kept winking.

"Pfft, I'm afraid of them? These guys can take their fun wherever they please. If it gets too annoying, I'll just build a private dock," he replied.

"Oh come on, if you do that, it's going to be a big deal. Those politicians won't agree to it."

"Ha! And if they don't agree, so what? Believe me, I can build another railway. Australia is just an island; I don't believe it's that hard to find another outlet to the sea!"

Jason was stunned, and Filson beside him was sweating profusely. He realized that the boss was going to make things bigger.

"Sir, at this point, is there no room for easing the situation?" Filson said with some concern.

"Ease? Aren't they just planning to give the cowboys a warning?" William White was a little depressed. He didn't look for trouble, but trouble always came to him.

"Haha, that might be the meaning. They are all spoiled."

"Well, I've decided to re-survey a route. Since iron ore cannot be exported in time, BHP Billiton, which just completed the merger, decided to lay off 15% of its employees."

"Boss, are you sure you want to do this?"

"Filson, I am prepared for a protracted war. Let me tell you this, the price of iron ore is so low that I don't plan to sell even a ton. If they drag their feet, I don't believe they can hold out for a few years."

Jason almost stumbled; he hadn't expected William White to be this ruthless. Years? Isn't that a joke? Is he planning to set a world record? The previous record holder apparently was the coal miners from England.

...

Sure enough, as soon as the news about BHP was released, a bunch of Australian politicians were roused.

Disagree with the acquisition?

Sure, fine! Hand me back my money, and let's settle compensation for the losses. Then we can part ways smoothly.

Force it?

Don't be ridiculous. They're the U.S. of A; are you out of your mind?

The crucial thing is, your reasons for striking aren't substantial enough. Hell, does building a dock have anything to do with you folks? Now other company ain't talking; they plan to build their own dock.

A bunch of idiots were immediately bewildered. Seriously, are they rich enough to waste money like that? If you have that kind of money, why not just raise their incomes?

"Isn't this outrageous?"

"Yes, sir, look at him; he doesn't seem to be joking. It's not just a dock issue anymore; he actually wants to build another railway. This will facilitate connecting several mining areas, and they'll likely have to start all over again with that original dock and the nearby town."

Seeing his subordinate's face frozen in disbelief, the current head of Morgan was equally speechless. This rich guy isn't just acting whimsically; he's really serious.

"Don't these bumpkins read the news? When has William White ever caved to pressure? If you negotiate through normal channels, that's not too unreasonable -- he would at least consider it. Even if he wouldn't approve, he would give a reason. A strike? A threat? Ha, let's see how long they can hold on."

...

Australia's welfare system is quite sound; workers aren't really afraid of losing their jobs. Those unemployment benefits allow them to get by rather nicely.

Well, "nicely" is subjective. It's just an ordinary kind of life. If you have unexpected expenses, sorry, maybe you can just go ahead and have a bunch of kids.

Of course, many still want to work. Staying at home all day producing children isn't particularly glamorous. They still want vacations and better education for their kids. And none of that comes from welfare.

They don't want to stir things up, but others are firm in their stance. Hell, what about my orders during this time? With such huge losses, isn't that going to be deducted from your paychecks?

Go do whatever you need to do; I can't cater to you folks.

A bunch of rural bumpkins finally witnessed the power of the tycoon.

It's just a matter of compensation, right?

Not a single penny less; I've got plenty of cash.

Let's be clear, if you want to get back into this company, you'd better pray to God.

With all the commotion at BHP, Rio Tinto and Billiton were quite pleased. Iron ore that couldn't be sold is surprisingly starting to increase in price.

What kind of sorcery is this? Tsk, it seems controlling the export volume of iron ore is very necessary.

"Sir, in the past few days, the steel companies in Japan have really suffered. Their profit margin is only around 10%, and with a 5% hike in iron ore prices, their profit definitely shrinks by at least one percentage point."

"Ha, they can digest that internally. Even if they raise by 5%, our steel enterprises still won't be able to compete. I'm just curious about how they even manage their companies."

Filson could only shake his head; these guys don't have your wealth. If they had fired those hotheads, the efficiency would naturally improve.

William White set a very negative precedent in Australia. From then on, if you wanted to invest in Australian mining companies, there would be many restrictions.

For instance, Japan is currently ranting and raving. Hell, William White's acquisition went through fine; why can't we?

Just being able to explore isn't worth a dime; what we need is control over iron ore.

William White was thrilled; Australia's countermeasures would definitely boost the valuation of his company. Tsk, this method is not bad, huh? It turns out you can still profit even while production is halted. If that's the case, let's halt for a couple more years.

At a price of several dozen bucks a ton, it's enough to make one's head hurt. If I remember correctly, this used to peak at hundreds. The current losses really aren't much; in a month, I could recoup the principal plus interest.

*****

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