Chapter 814: The First Signs of War

Britain and Argentina had gone to war!

The news spread like wildfire across the globe.

In an instant, mainstream media outlets in every country were reporting on the event.

It was truly shocking; no one could believe it was real. Just how much counterfeit alcohol had Argentina been drinking to get so carried away?

They actually dared to proactively send troops to the Falkland Islands, directly launching an attack on the British garrison there—and they won, capturing the entire island’s garrison in one fell swoop.

Although Britain’s national power had rapidly declined after World War II, the once-mighty “Empire on Which the Sun Never Sets” was now nothing more than the fading glow of a setting sun.

It was neither “Great Britain” nor an “Empire.”

But as the saying goes, even a rotten ship has three thousand nails, and a starving camel is still bigger than a horse.

After all, it was once a dominant power; even in its twilight years, it was not a nation that a tiny country like Argentina could bully.

To put it simply, in terms of naval power alone, Britain still possessed several formidable warships, such as the aircraft carriers HMS Hermes and HMS Invincible; in this regard, the Argentine Navy was simply no match.

Argentina’s only advantage is its proximity to the Falkland Islands, which both sides are vying for; beyond that, it’s hard to see how they stand much of a chance.

Yet even so, this up-and-coming power in South America has recklessly taken action—a move that has taken everyone by surprise.

All eyes are now on London, as everyone watches to see how it will respond: whether it will retaliate in kind or resolve the Falklands dispute through diplomatic means.

The vast majority of nations believe that this time, London is highly likely to compromise, simply because the Falkland Islands are far too distant from the British Isles.

Even as the crow flies, the distance between the two places is 13,000 kilometers—a distance so vast it’s almost absurd.

What does 13,000 kilometers mean?

Missiles with a range of over 8,000 kilometers are classified as intercontinental ballistic missiles (ICBMs), and the distance from the British Isles to the Falkland Islands is a full 1.5 times the minimum range of an ICBM.

Moreover, everyone knows that war is all about logistics. Once London chooses to go to war and both sides enter a state of conflict, all British military supplies would have to be delivered over long distances.

A 13,000-kilometer supply line is absurd just to think about; the logistical burden alone would be enough to exhaust the aging British Navy.

Galtieri, the leader of Argentina’s military junta, thought the same. He didn’t believe London would actually go to war with him over a tiny, insignificant island.

Especially since the person calling the shots at 10 Downing Street at the time was a woman—a female prime minister who had been in office for only three years and whose approval ratings had been steadily declining.

However, this time, everyone misjudged London’s response!

No sooner had Argentina sent troops to occupy the Falkland Islands and forced the British governor’s office to surrender than the female Prime Minister at 10 Downing Street—known as the “Iron Lady”—responded: The Royal Navy would reclaim the lost territory.

This response made it clear that London had chosen to fight fire with fire—it had chosen war!

When the news broke, the world was both stunned and skeptical.

Two nations separated by 14,000 kilometers had actually declared war on each other—how on earth was this supposed to play out?

On one side was a long-established colonial empire; on the other, a newly emerging regional power—and Argentina was fighting on its own doorstep.

Consequently, almost everyone believed this would be a protracted and drawn-out conflict.

Consequently, following London’s statement on April 5, both the London stock market and futures markets were significantly impacted.

First, in the stock market, shares of all defense-related companies surged dramatically.

Shares in food, pharmaceuticals, and other war-related industries also rose, creating a rare scene of prosperity across the entire market.

As for the futures market, metal prices—which had already been soaring for nearly two weeks—saw another sharp rise. Even gold prices, which had been sluggish for over four months, have experienced significant volatility in recent days.

That’s right—volatility, the kind characterized by sharp ups and downs.

Unlike metals such as steel, copper, aluminum, and silver, which are showing a stable upward trend with prices climbing rapidly,

This is because gold is not an ordinary industrial raw material; it possesses monetary and wealth attributes that ordinary metals lack.

A war sparked by two nations separated by over 10,000 kilometers has a very limited scale and impact, insufficient to drive a significant rise in the price of gold.

Even if prices rise now, they’ll likely fall again before long—which is precisely why Li Yi hasn’t been speculating on gold.

In short, due to the war, several markets in London are currently in disarray, with various forces looking to capitalize on the situation to make a fortune…

………..

Hong Kong Island!

As one of the few colonies still under British control, Hong Kong has inevitably been affected by London’s decision to go head-to-head with Argentina.

However, unlike the massive crashes in London’s various markets, Hong Kong’s stock market saw prices plummet across multiple stocks as soon as trading opened on April 5, leaving the entire market in a state of utter despair.

The reason for the Hong Kong stock market’s plunge is simple: massive capital flight.

That’s right—capital flight!

The London market, influenced by the war, has experienced a false boom; right now, investing in any industry related to the war guarantees huge profits.

If you’re lucky enough to buy shares in a defense contractor, your investment can snowball in just a few days—far better than pouring money into Hong Kong’s moribund stock market.

Moreover, the financial sector here on Hong Kong Island is deeply intertwined with London’s. Companies here have countless ways to transfer funds to the London market in the shortest possible time.

Consequently, starting on April 2, many companies and wealthy individuals in Hong Kong began shifting their funds to London to invest there.

With so much capital suddenly withdrawn, the Hong Kong stock market suddenly lost a significant amount of hot money, making it naturally impossible to sustain prices, and the sharp plunge in stock prices was only to be expected.

However, amid such chaos, two stocks stood out the most: Huifeng and Hang Seng.

Huifeng attracted attention due to the magnitude of its price drop. At its peak last week, Huifeng’s share price had soared to over 70 Hong Kong dollars, with the company’s market capitalization briefly exceeding 70 billion Hong Kong dollars.

But in just one week, after its share price had already been cut in half, it took another nosedive. By the close of trading on April 5, the share price had plummeted to just HK$26.

This downturn has not only inflicted heavy losses on British-owned groups but also on brokerage firms.

Many of them had pinned their hopes on Huifeng’s stock price rising so they could break even and exit their positions; now that the stock has plummeted, they are utterly despairing.

Amid their despair, these investors have publicly blamed the British-owned group in the media, as their dire situation is directly linked to the group’s breach of contract.

Overnight, the British-owned group found itself in the eye of the storm!

Hang Seng’s performance, however, stands out because it is one of the few stocks on the Hong Kong stock market currently bucking the trend.

While the stocks of other listed companies have been sliding, Hang Seng’s share price has been rising. Although the gains have not been rapid, by the close of trading on April 5, its share price had reached HK$25.

Compared to HK$17 a week earlier, the share price had risen by 50%!

Just as everyone was speculating whether Hang Seng’s share price would continue to rise, Dolsons and others believed it had already peaked.

After all, Hang Seng’s market capitalization had already reached nearly HK$6 billion—an astonishing figure for an ordinary bank.

So, they were ready to cash out and exit the market!

However, just as they were preparing to quietly offload their Hang Seng shares, they never expected Li Yi to pull another one of his shenanigans…

……….