The Great Sage Returns from Ten Years of Imprisonment

Four o'clock in the afternoon, Shanghai.

The Chinese team, led by a deputy director of the Civil Aviation Administration of China and the general manager of Air China, arrived at the China Eastern Airlines headquarters on time.

We held talks with representatives from Goldman Sachs’ Shanghai branch to discuss the early termination of the fuel hedging agreements signed between the airlines and Goldman Sachs.

Representing Goldman Sachs' Shanghai branch in these negotiations were Anthony and Mike, along with two other executives and lawyers.

Anthony and his team were somewhat surprised by the Chinese negotiating team's late arrival.

But considering that this was likely an administrative order from the Civil Aviation Administration of China, and that many members of the negotiation team had to travel from Beijing to Shanghai, coupled with the fact that the global financial crisis had only officially broken out yesterday, their doubts vanished immediately.

Upon entering the conference room, both parties introduced themselves, shook hands, and exchanged greetings before taking their seats on either side of the conference table.

After a few pleasantries and sitting down, the meeting officially began.

The general manager of Air China, who spoke first on behalf of the Chinese negotiating team, got straight to the point.

"Mr. Anthony, international oil prices have been plummeting recently, dropping nearly $60 in just two weeks, a decline of almost 40%, from a high of $147 to below $90 now."

"In view of this, after careful consideration and weighing various factors, we request to terminate the fuel hedging agreement signed with your company and end this cooperative relationship in order to avoid potential huge losses."

Sure enough!

However, this is a bit too direct, and it's not like China's usual negotiating style!

If you want to terminate this fuel hedging agreement, you will inevitably have to pay a huge penalty. Where do you get such confidence?

Anthony and Mike exchanged a glance and muttered a few words to themselves.

Immediately afterwards, Anthony feigned surprise and said:

"Gentlemen, the current sharp fluctuations in the international crude oil futures market are only a temporary phenomenon. In the long run, we firmly believe that international oil prices will continue to rise, and exceeding $200 is not a problem at all."

"Furthermore, although international oil prices have fallen significantly, they have not fallen below the put option strike price agreed upon with the airlines. In other words, the airlines have not incurred any substantial losses under this hedging agreement."

"If the airlines were to voluntarily terminate this fuel hedging agreement now, they would inevitably have to pay our company huge penalties, which would be very unprofitable. I advise you to reconsider..."

He had barely finished speaking when he was interrupted dismissively by the deputy director of the Civil Aviation Administration of China.

"I have a question for you, Mr. Anthony. In the current market conditions, is Goldman Sachs bullish or bearish on international crude oil futures?"

"Since Goldman Sachs firmly believes that international oil prices will definitely rise to $200, they should be the most steadfast bulls. Could you show us your trading records?"

"what!"

Caught off guard, Anthony and his teammates were stunned.

Goldman Sachs is perfectly clear about whether it's bullish or bearish on crude oil futures!

But this matter must not be said in this setting, otherwise, this charade cannot continue!

Not only that, Goldman Sachs will also have to pay a price for its previous fraudulent activities!

After all, this is China, and all the airlines are companies under the State-owned Assets Supervision and Administration Commission!

If airlines seize on the claim that Goldman Sachs is suspected of fraud, it will be enough to give Goldman Sachs' Shanghai branch a run for its money!

Beijing, CIC headquarters.

After resting at home for seven or eight hours, Lingyun returned to the site, ready to oversee the operation and begin a new round of harvesting.

Just like yesterday, his main targets were the European and American financial markets, with a particular emphasis on numerous European and American financial institutions.

This means he will have to stay up all night again.

At this time, major European stock markets were gradually opening.

The situation in financial markets around the world was the same as yesterday: a sharp drop at the opening bell, with no resistance whatsoever.

Lingyun had anticipated this situation and had prepared a response strategy in advance; everything was proceeding in an orderly manner.

After entering the CIC headquarters, Ling Yun first took a tour of the United Securities investment team's office area.

He assured the investment team of United Securities and the Hong Kong branch of Yuanda Securities that there were no problems in dealing with the situation, and that the trend of the international financial market was also as expected. He then gave a few more instructions to the investment directors.

Then I left the downstairs office area and went upstairs to the crude oil futures investment team.

As soon as he entered the office, Secretary Zhou followed him in and briefed him on the latest developments.

"News from Shanghai indicates that negotiations with Goldman Sachs have reached a temporary impasse. Those guys at Goldman Sachs are demanding that all airlines pay the full amount of the penalty for breach of contract, not a penny less."

"Our negotiating team, following the established strategy, argued that since the agreement had only been in effect for a few months and was still far from the three-year term, they only intended to pay 30% to 40% of the penalty for breach of contract."

"The guys at Goldman Sachs' Shanghai branch naturally wouldn't agree, and the two sides argued back and forth. Goldman Sachs' Shanghai branch CEO, Anthony, declared on the spot that they would never back down."

"If we don't pay the full penalty, they won't terminate this hedging agreement," Director Zhang immediately retorted. "If Goldman Sachs dares to do that, they can forget about cooperating with any state-owned institutions or companies in the future." The negotiations thus reached a stalemate...

After listening to Secretary Zhou's introduction, Ling Yun gave a disdainful sneer.

"Don't worry, these damned foreign devils will give in. They're just putting on an act now, trying to squeeze as much profit as possible."

"Like I said, Goldman Sachs has never needed money more to alleviate its liquidity crisis, especially since this huge default fee is free money—why not take it if it's free!"

"If they refuse to budge, then let those bastards cool off. They're far more anxious than we are. As long as this is settled before the 20th, everything will be fine."

"Hahaha"

Secretary Zhou chuckled and then nodded.

"Okay, I will pass on your opinion to General Manager Kong and the negotiation team, and let these scheming foreigners get their comeuppance."

After a few more words of discussion, he suddenly changed the subject.

"There's another matter. In the investment department of Shanghai Airlines, the investigation team discovered another scoundrel, who is likely a corporate spy, and has been in frequent contact with certain senior executives at Goldman Sachs."

"Once the negotiations are over, we'll find a suitable opportunity for the investigation team to close in and send this bastard to jail for the rest of his life. This kind of bastard should rot in prison!"

Ling Yun smiled calmly and continued to complain:

"Buying corporate spies is Goldman Sachs' favorite tactic, I'm used to it, and I'm willing to bet there are many such corporate spies in China."

"As for when to deal with that bastard in Shanghai Airlines' investment department, there's no rush. We can use this guy to send some false information to Goldman Sachs, and today presents just such an opportunity..."

About ten minutes had passed as they were talking.

Secretary Zhou left his office and hurried back to his own office to call General Manager Kong and the negotiation team.

After closing the door, Ling Yun tidied up briefly.

Then I turned on my computer and went online to check the situation in the international financial market and the crude oil futures market.

Fifteen minutes later, he came out of the office and went into the conference room next door.

At this moment, several investment directors and investment managers had gathered here, discussing the international crude oil futures market with great enthusiasm.

As Ling Yun entered, everyone turned to look at him.

Ling Yunchong nodded and greeted everyone, then jokingly said:

"It's clear that everyone is very happy. Just an hour ago, international oil prices officially fell below the $90 mark."

"Following my investment strategy, we've made another fortune. Was I right?"

Before he finished speaking, everyone nodded in agreement.

"That's right, Lingyun. Our team has successfully closed out our positions, and the investment returns are quite impressive!"

"Your judgment is too accurate. It's as if you have control over international oil prices; you can make them drop however you want."

"Haha, I don't have the ability to manipulate international oil prices."

Ling Yun smiled and shook his head.

Immediately afterwards, his expression suddenly became a little serious.

"We've made a fortune shorting international crude oil futures, it's time to adjust our strategy and go long on international crude oil futures!"

Upon hearing this, everyone in the conference room froze instantly.