The decline in prices does not mean that the production costs of enterprises have fallen, and even because of the rise in labor and industrial raw materials, the production costs of many enterprises have risen instead of falling.

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 processing and manufacturing industry is naturally having a hard time.

In order to survive, everyone has to fight a price war. Businesses that reacted quickly were okay, at least making a lot of money in the early days of the war last year.

The market has fallen back in the first quarter, and overall profits are good. After entering the second quarter, it was a tragedy, and a bunch of guys who fantasized about making war money joined in, further intensifying market competition.

It is impossible to exit, the funds have been turned into machinery and equipment, and the plant will not be able to find a receiver at this time.

Relatively speaking, the least affected are British enterprises, and government procurement gives priority to domestic government, which virtually occupies the greatest advantage.

The worst of the great powers was undoubtedly French industry and commerce, and the British government could not get orders, and Russia faced competition from Austria for orders.

The French government was willing to issue bonds to the Russians, in fact, in order to compete for the market, and naturally took the franc to purchase French goods.

Even so, French industry and commerce can only get a part of the 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, it's not that the Russians treat them differently, it's mainly that the military-industrial system is different.

The caliber of Russian and Austrian weapons is the same, and they can be used directly after purchase, and logistics and maintenance are very convenient.

If you buy French products, not only do you need to retrain the soldiers, but also logistical supply and maintenance are big problems, and the tsarist government during the war years must consider practicality.

……

On May 24, 1890, another day for listed companies to announce their financial reports, the Paris Stock Exchange was already crowded.

From the expressions of everyone talking and laughing, you can know that everyone is in a good mood. The Anglo-Russian War, which I was looking forward to for the stars and the moon, broke out, and now it is 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 increase in the foreign trade enterprise sector has exceeded 57%, and there are not a few people whose stock prices have doubled.

Based on the rich rewards of the Russo-Prussian War, expectations for the Anglo-Russian War were very high. In particular, the financial report for the last quarter of last year proved this.

As for the drop in prices, I'm sorry that the French people didn't feel it. Because of tariff barriers, prices in France are relatively less affected by the international market.

In these years, news transmission has been slow, the capitalists are shrewd masters, export revenues are less than expected, and the product backlog is serious, so these news naturally have to be kept strictly secret.

If the news leaks out in advance, who will take them over? In this year, the market supervision is about equal to zero, and since the sales problem in the first quarter, everyone has been slowly reducing their shareholdings.

Under the continuous positive news, ordinary investors simply do not know that the crisis is approaching.

In front of the exchange, a slightly middle-aged fat man was holding a financial newspaper and reading it with relish.

"What are you looking at, Yamyx?"

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

It's a pity that I was timid, and a few days ago I heard that the Hex Textile Factory had a serious backlog of products, so I withdrew half of it and bought the Feiduolun Machinery Factory instead, and missed this wave of market. ”

The person comforted: "It's okay, the Fei Duolun Machinery Factory is not bad." The downstream market is so good, enterprises are expanding production capacity, how can the performance of upstream equipment manufacturers be poor? ”

This is the most common experience, once the industry is good, the entire industry chain of enterprises will benefit.

Yamyx shook his head, and it was true that upstream companies would benefit. However, the increase in stock prices is definitely not as large as the increase in the companies involved.

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

Even if it's a backlog, it's a corporate hoarding! Thinking of this, Yamyx directly greeted the whole family of the guy who delivered the message.

Looking at the person with a smile on his face, Yamyx asked tentatively: "Anthony, I remember that you also bought this stock, presumably you should have a good harvest this time." ”

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

But Yamyx, you're too daring. The most important thing in our line of work is mentality, to analyze the overall market, there is no need to pay attention to gossip.

Capitalists are not fools, if the backlog of products is serious, they would have known about layoffs and production cuts, just like now the streets and alleys are full of job advertisements! ”

Hearing his friend's analysis, Yamyx's face 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 if they are novices in the stock market.

Especially for the manufacturing industry, when companies are recruiting on a large scale, it is definitely the best time for the market.

As if the consciousness had spoken, Anthony hurriedly remedied, "Alright, Yamyx. Now wait for the company to patiently announce the financial report, anyway, it is all about earning, it is nothing more than a matter of how much.

Maybe the performance of the machinery factory Cao Peng, the stock price rose above the textile factory. You must know that in recent times, there have been many new factories that have popped up, and they all need to purchase equipment. ”

As soon as the words fell, I heard someone shouting again: "This is impossible! ”

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

……

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

Realizing that something was wrong, Yamix and Anthony, who were still on the periphery of the crowd, hurriedly squeezed towards the exchange.

But it was too late, and the shareholders who got the earnings report, after the initial panic, have begun to sell their shares.

The market is full of sell orders, and there are no buy orders in sight. All the investors on the scene knew that the market was going to be finished.

Seeing that the situation was out of control, a group of prepared policemen appeared at the market and began to maintain order at the scene.

By the end of the evening, the Paris stock market had fallen 8.6%, and some individual stocks had been cut in half.

This is just the beginning, and only a small number of companies are reporting today, and the rest will be announced in the following week.

If most companies fall short of market expectations, that would be a real disaster, and now it can only be regarded as an appetizer.

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

……