Rebirth of England.

Chapter 705 Loophole
As mentioned before, the so-called arms sales between countries have never only considered price factors, but also required more political considerations.

You could say it's like some kind of protection money.

Even if the prices of some weapons are a little high, you still have to buy them. After all, if you don't let your brother make more money, how can he be willing to protect your safety?

For Kolo, he is a member of the Commonwealth and has a relatively close relationship with Britain. If they want to purchase military equipment, Britain is naturally the best target.

"I can help you contact the British side in this regard. They will definitely be able to give you some discounts in terms of price..."

Barron said to him:

"And we don't need to buy overly advanced ships, otherwise it will be a big burden for Kolo."

Just as Barron said, for a small country like Kolo, there is not much need to have very strong maritime power. It only needs to have a certain degree of defense capability.

Just like the main threat they face now is pirates in West Africa.

As for neighboring countries, whether it is Ghana or Benin, their naval strength is extremely limited, and the only one or two ships they have can be called antiques.

As for the pirates in the waters of West Africa, there is no need to use overly advanced ships to deal with them. After all, the so-called pirates in Africa often use speedboats, with a few people holding AKs and at most RPGs, and their main purpose is to come and go like the wind...

If the ship is too large, it will be difficult to catch up with them.

Moreover, it would be a complete waste to use those overly advanced weapons to attack these small speedboats.

As for the negotiations regarding procurement, there is no need to rush.

After all, for now, temporarily adding a few gunboats is enough to deal with the current situation.

Barron will then meet with relevant British officials, including Brown and Darling, the financial minister.

Because United Energy Group owns 30% of the shares of Colo Oil, and a considerable portion of the petroleum products sold by Colo Oil are used to meet the British market.

In this way, the safety and stability of the Kolo offshore oil field is also of considerable significance to Britain's energy security.

So it is only natural for them to support the other party, not to mention that they only need to lower the selling price.

After all, these ships are already quite old, and some are already facing retirement in the British Navy.

……

"His name is Peter. He is one of the traders in the investment department of NM Rothschild Bank that we have been following..."

Daisy handed Barron a document and said to him:

"Although he is not an important figure in the department, because of his good investment returns in the past, Peter has a considerable level in the investment department of NM Rothschild Bank and has relatively high investment authority." "What's so interesting about this person?"

"Through our analysis of his chats and behaviors, we found that he is quite paranoid, especially in terms of his own analysis results. This can be seen from his previous investment styles. Most importantly, he is very optimistic about the rise in international gold prices and holds a considerable position..."

In fact, it is not surprising to be optimistic about the rise in gold prices under the current circumstances.

Last year, the international gold price once reached a historical high, but was affected by the subprime mortgage crisis and fell sharply.

But now, with the economic recovery and the influence of monetary policies of various countries, the upward trend of gold prices seems reasonable.

As we all know, the price of gold futures is affected by factors such as economic cycles, monetary policies and wars.

For example, in an economic downturn, investors will be cautious about their investments, so gold, as a safe-haven asset, will be favored and will tend to rise.

In addition, when implementing a quantitative easing policy, as the money supply increases and more funds flow into the market, it will be easier for more funds to flow into gold investment, pushing up its price.

As for the war, it is easier to understand. After all, there has been a saying in China since ancient times that "antiques are valuable in prosperous times, and gold is valuable in troubled times."

However, considering Pete's trading style, and the fact that gold futures have been priced below $1000 per ounce in recent times and the fluctuations have been relatively slow, if one holds a considerable position in gold futures, facing the current market conditions, it is very likely that one is investing with a relatively high leverage.

So what will the other party do if these investments suffer considerable losses?

Either you take the loss and exit, or you invest more money to verify your judgment.

Of course, Barron and others hope that Pete will eventually choose the second option, which will increase the losses of NM Scheidt Bank's investment department amidst its increasing positions.

Although investment departments like this have their own risk control systems, the larger the institution, the more likely its risk control system is to be negligent.

For example, the huge losses caused by the trader of Societe Generale at that time were easily concealed by the other party from their risk control system.

Naturally, Barron and others would not place all their hopes on Pete as a trader.

For the entire LCR Rothschild Group, most of the assets they manage are allocated in products with relatively stable returns, such as real estate, bonds, and stocks of large companies. For these investments, even if there are certain losses due to market fluctuations, they are very controllable.

But just like the American International Group during the subprime mortgage crisis, their core business is very high-quality insurance business, but it was because their small-scale investment department guaranteed some subprime mortgage bonds that eventually brought unimaginable huge losses to the American International Group during the subprime mortgage crisis, bringing down the largest insurance group in the United States.

The same is true for the LCR Rothschild Group. Even if their main business is very stable, they may still suffer excessive losses that may harm themselves because of the guarantees or bets of certain departments.

In this case, Barron needs to carefully select an investment direction for one of their departments that does not appear to have any traps on the surface, and then make corresponding bets.

Well, the sovereign debt crisis that will spread to many European countries will be a very good opportunity.

(End of this chapter)