Chapter 336: Chapter 292: The Delayed Rubber Crisis

During the time wh Europe expericed the Second Moroccan Crisis and the Italo-Turkish War, Arthur and the Royal financial group also carried out numerous actions in Europe.

Firstly, the tse atmosphere and impding war in Europe during these two evts caused many civilian factories and companies to depreciate in value in an instant, ev facing the danger of bankruptcy.

Not only in the stock markets of France and Germany but also, including the United Kingdom, the Austro-Hungarian Empire, and Russia Nation, the stock market conditions were not too great, and after the Italo-Turkish War, Italy's stock market was added as well.

Of course, the currt depreciation situation is not too serious, at least compared to war periods in history.

Once the war breaks out, these terprises will face ev more severe depreciation, which is also an opportunity for Arthur, the royal financial group, and ev the tire world to pick up bargains.

After the war, the vast industries of the defeated countries will face bankruptcy, and the acquisition th will be ts of times cheaper than now.

In the meantime, the royal financial group is also heavily selling some of its assets in Europe, including the stocks of some factories and companies invested in by the royal financial group.

If they do not sell now, they will never have the chance to sell again, as these companies will basically always be in a state of depreciation, until the d of the war, except for some more critical military factories.

However, the problem is that military factories are also esstial to the powerful nations, and the royal financial group does not yet have the capability to interve in major military factories of various powerful nations.

Moreover, the military factories of the defeated countries will also face liquidation after the war, and it would not be too late for them to poach some technology of the Krupp Factory at that time.

The only asset not easy to withdraw is the joint car factory built with the United Kingdom and Germany mainland forces.

Whether it is a car factory in the UK or Germany, the scale is already huge, with ts of thousands of workers, making it simply impossible to withdraw investmts easily.

However, the good news is that currtly, Australasia has good relations with both Germany and the UK; on Arthur's account, it should not be subject to artillery fire whether it comes to the UK or Germany's car factories.

Of course, occupation is unavoidable, but surely Australasia can recover its own interests after the war.

It is worth mtioning that during the Second Moroccan Crisis, the Rubber Crisis, which was supposed to break out in 9, was finally delayed.

The reason for the delay in the outbreak is that the Bz Automobile ushered in an ev more brilliant era for the rubber industry, making the world's rubber developmt far more exaggerated than historical parallel worlds.

How exaggerated is it? Ev betwe the d of 9 and the beginning of 9, there were as many as 00 rubber companies registered in East Asia.

However, the problem is that the quality of these companies is unev; some are indeed guine rubber production companies, but others are shamelessly registering rubber companies after buying only a piece of land in the Southeast Asian region.

The purpose of them registering rubber companies is to list their rubber company stocks in the East Asia stock market and make huge profits by selling stocks.

As everyone knows, the rapid developmt of the rubber industry resulted from cars becoming popular ahead of time worldwide.

This is because car developmt relies on tires, which are gerally made of rubber.

Of course, this was just the beginning of the Rubber Crisis.

Following this, Germany, the United Kingdom, Australasia, the United States, and other important rubber importing countries announced that this year's (9) rubber imports would temporarily remain at last year's level, represting the saturation of the world's rubber developmt and the d of the gold age of rubber in rect years.

This news was quite deadly for the currt rubber market, as the joint announcemt by several major rubber importing countries meant that the developmt of rubber had reached its peak and the demand for rubber was becoming saturated.

Firms and terprises tering the rubber market in the future would not only be unable to make money, but they might ev threat the currt rubber market.

What was more deadly was that Bz Automobile, the largest car brand in the world, quickly announced that its German factory would cooperate with Germany's upcoming synthetic rubber factory, using synthetic rubber tires to replace natural rubber tires.

It is worth noting that the role played by automotive developmts in promoting the expansion of the rubber industry cannot be underestimated

The four Bz car factories in Germany, the United States, the United Kingdom, and Australasia, can be described as the four largest car factories in the world.

This indicated that the rubber market would not only fail to expand but would shrink rapidly in a short period.

These pieces of news were devastating for the rubber market, causing rubber stocks to plummet rapidly in various stock markets.

By late April, the price of rubber had fall from 7 shillings per pound to shillings per pound, a more than one-third decrease in less than t days.

Of course, ev more severe was the state of rubber stocks. By the d of April, the prices of rubber stocks on the London Stock Exchange had gerally be reduced to just one-tth of what they had be t days before, and the rate of reduction was getting faster and faster.

Rubber company stocks were previously worth several ts of pounds per share, but now most rubber companies' shares are worth less than t pounds, and some are gerally down to just two or three pounds.

Of course, for a strictly regulated securities trading market like London, it is a manageable situation.

In East Asia's securities trading market, the plunge is ev more severe.

Due to the lack of strict regulation, the number of stock companies in the East Asian securities trading market is vast and mixed with many shell companies.

During the gold hours of stock listing, many people bought stock companies' stocks, but now people are dumbfounded.

Stocks that were once worth a fortune might not ev be ough for a meal now. What's ev worse is that no one wants to take over the stocks they want to sell on the stock market, forcing them to sit back and watch their stocks continue to plummet.

In just over a month, the price of a single stock has plummeted from several ts of pounds to t pounds, th to a few pounds, and finally to less than one pound.

Such prices do not ev reach the initial public offering price, which is ough to prove how intse the Rubber Crisis's impact on the rubber industry and rubber companies has be.

According to Arthur's speculation, especially in Southeast Asia, there are at least thousands of rubber companies going bankrupt due to the Rubber Crisis, and the total loss of funds is incalculable.

A few rubber companies that got the news early have already cashed out during the highest stock price and disappeared quietly with the large amount of pounds they earned during this period..

The ordinary stock investors who had no idea about the news could only react wh the crisis arrived. By that time, it was too late, and all the people in the stock market were trying to sell their stocks. Who would buy them?