Holy Roman Empire Chapter 733 - Targeted Attack

        



        As France’s largest hemp textile center, Lyon, long celebrated as the “Silk Capital of Continental Europe,” has now grown into a metropolis second only to Paris.         At this moment, this dazzling pearl has lost its luster. Affected by the dumping of goods by Britain and Austria, French industry and commerce are facing their most brutal challenge.         The vast majority of enterprises have announced layoffs and production cuts. The streets are increasingly crowded with job seekers, while new employment opportunities are few and far between.         Almost every recruitment drive triggers a commotion. Even if only three to five people are being hired, dozens will apply.         It can be said that this is the easiest time for French companies to recruit, as they can freely select the best employees.         The companies that can hire against the trend are the most powerful. What is a crisis for ordinary enterprises is a rare opportunity for these giants.         The Lyon Moore Textile Group is one of the most prominent among them, owning over 170 factories of various sizes and employing more than 130,000 people.         Its industrial chain covers the entire spectrum of the textile industry, including cotton mills, hemp mills, woolen mills, silk mills, dyeing and printing factories, garment factories... and even its own raw material plantations.         In addition to a complete industrial chain, the Moore Textile Group also possesses the most advanced textile technology of the time, with over 200 patents to its name.         Such a behemoth, even when hit by the crisis, has the strongest risk resilience.         While other companies are suffering devastating losses, the Moore Textile Group is still managing to turn a profit. Although this profit is now minimal, it represents a significant distinction.         In the eyes of the outside world, this once-flourishing conglomerate is also facing tough times.         Even profitable companies can run short on cash. With the stock market crash and foreign capital impacting the financial markets, the wave of bank runs is intensifying.         To cope with the crisis, domestic banks have tightened their credit, making it exceptionally difficult for companies to secure financing.         Inside the Moore Textile Group headquarters         President Moore Sardas looked at the latest financial report and sighed deeply, “When will the bank loan come through?”         The Moore Textile Group is also backed by a financial group, but this homegrown Lyon-based financial group is rooted in industry and doesn’t see eye to eye with the financiers in Paris.         This local financial group is an unintended byproduct of Napoleon III’s support for industry. If nothing unexpected had happened, with the French government’s backing, this industry-based local financial group would have gradually developed into a world-class financial group in the future.         Secretary Hank replied, “Mr. Moore, the situation has changed. Competitors have made their move, and in recent times, Lyon banks have faced severe bank runs.         The banks are scrambling to raise funds to protect themselves. We have already communicated through our financial group connections, and the banks have indicated that once they overcome the bank run crisis, they will disburse the loan as quickly as possible.”         Upon hearing this news, Moore Sardas felt an even greater headache. Domestic banks have tightened their credit, and unless the relationship is extremely close, it’s nearly impossible to secure a loan.         Being part of the same financial group, both the Moore Textile Group and Lyon Bank are pillars of the group, with overlapping shareholders and a long-established community of interests.         Previously, the Moore Textile Group always received the maximum discount on loans and had never been hindered by the bank.         Now, being refused clearly indicates that the bank is truly in crisis and can no longer afford to support its allies.         Since Lyon Bank’s competitors have made their move, they certainly wouldn’t act without a target, which means the bank cannot be relied upon in the short term.         With the stock market crash still raging, raising funds from the stock market is unrealistic, and bank loans won’t be available soon, leaving corporate bonds as the only financing option.         After pondering for a while, Moore Sardas decisively abandoned this impractical fantasy. Given the current economic climate, issuing bonds would only invite humiliation.         “Notify everyone to halt the construction of all new factories and cancel the large plantation project in Africa. Have all departments carefully review their operations. Anything that’s not an urgent project should be put on hold.”         In recent years, the Moore Textile Group has expanded rapidly. The company’s profits have been poured into expansion, accumulating a massive debt.         Now, with the poor economic conditions and issues in the cash flow, Moore Sardas has decided to terminate the group’s expansion plans to save on expenses.         Secretary Hank reminded, “Mr. Moore, these plans were approved by the board and have already been announced to the public. Canceling them now might be…”         Moore Sardas waved his hand. “These are special times. I will explain the situation to the board members.         Notify all board members that I will convene a board meeting in three days.         Also, arrange a meeting with the mayor for me. We need the government’s assistance now.”         As a major conglomerate with over a hundred thousand employees relying on it for their livelihood, the Moore Textile Group has a significant impact on the local economy. If the Moore Textile Group were to collapse, the economy of Lyon would inevitably face a dire fate.         Before Moore Sardas could begin his self-rescue efforts, Keith Anderson, the head of the Commerce Department, rushed in.         “President, we have a major problem. We just received news that several of our international orders have been rejected by buyers.         It seems we are being targeted. The Commerce Department has already sent people to negotiate with them, but the chances are slim. The goods are still on the ships and cannot be unloaded.         The Commerce Department has issued orders to halt all overseas shipments, pending further verification before making any decisions.         However, it’s already too late for seven ships that have already set sail.”         This was the worst news Moore Sardas had ever heard, absolutely without exception.         Occasional order defaults were something the Moore Group had encountered before. After all, with deposits taken, they could still sell the goods at a lower price to others, and the losses would be manageable, something the group could handle.         However, this sudden wave of multiple order defaults was different. It clearly indicated a targeted attack.         In normal times, this wouldn’t be a big deal for the vast Moore Textile Group, as such disturbances were insignificant.         But now, during the most intense market competition, finding new buyers would be exceptionally difficult.         If things went badly, all these goods would end up stuck in their hands. Already struggling with cash flow, the Moore Textile Group would face even greater danger if a large batch of goods were to pile up.         Moore Sardas forced himself to calm down. “What is the total value of the defaulted orders? If all these goods end up unsold, how much would we lose?”         Keith Anderson replied with a grim face, “The value of the defaulted orders amounts to 120 million francs. If we can’t find buyers for these goods, our book loss could reach as high as 105 million francs.         Calculating just the costs, our direct economic losses would exceed 75 million francs. And this is just the beginning. We can’t be sure if the subsequent orders will be fulfilled normally.         If all international orders are defaulted, the final loss could potentially reach 100 million francs.”         Moore Sardas’s face darkened instantly. Even in normal times, a loss of 100 million francs would severely wound the Moore Textile Group, let alone during such a critical period.         Reflecting on the group’s internationalization process, Moore Sardas finally sensed something amiss. The past one or two years had been unusually smooth.         Originally thought to be the benefits from the Russo-Prussian War, he now realized it might have been a trap set by competitors.         The defaults were all from the group’s major clients, with whom they had collaborated multiple times before, although the previous order volumes were much smaller.         This year, the orders suddenly surged. Moore Sardas had initially suspected potential issues, but the allure of the orders was too strong.         They were familiar with the clients’ basic situations, and all were quite influential locally.         Although the quantities were larger, the clients paid the deposits promptly, and with the economic conditions still favorable at the beginning of the year, the contracts were signed without detecting any problems.         Moore Sardas slowly said, “Find buyers for this batch of goods as soon as possible! The group’s cash flow is already very tight, and with the domestic financial crisis, we must raise more cash as a precaution.         Don’t aim for profits anymore. As long as we can sell them, even if the prices are halved, we’ll accept it.”         This is a desperate attempt to salvage a dire situation. While the Moore Textile Group is renowned in France, it is still a newcomer on the international stage.         Despite their rapid growth and the significant market share they’ve wrested from the British due to French influence, their foundation remains shaky.         This wave of order defaults is a true reflection of that. Had their foundation been more solid, with multiple distributors in a region, they wouldn’t find themselves in such a passive situation.         Since the enemy has made their move, they would naturally anticipate Moore’s efforts to find alternative buyers. Selling this batch of goods quickly might be easier if they were shipped back to France.         Of course, this is just a thought. The increased shipping costs aside, bringing back already exported goods would be embarrassing, though capitalists are known for their thick skin.         The key issue is that the French market is also being hit by the dumping of British textile products.         The Moore Textile Group’s products can only maintain minimal profits. If more goods are released into the market, they will start incurring losses.         If selling the overstocked goods at a small loss were feasible, capitalists would have done it already.         These days, if you don’t have a few warehouses full of unsold goods, you can hardly call yourself an entrepreneur.         The trouble is that even as product prices drop, sales volumes aren’t increasing, which only exacerbates the situation and could be fatal.         This isn’t a joke since it’s really happening. All industrial and commercial products are seeing significant price reductions, and the Moore Group’s products are no exception, with promotional price cuts that haven’t led to a substantial increase in overall sales.                 The impact is not limited to the Moore Textile Group. Compared to the light industry, France’s heavy industry is in an even more dire state.         Since the second half of the year, the export prices in the international coal market have risen for five consecutive periods, with a total increase of 26.4%, especially for coke, which has seen a rise of up to one-third.         The sharp increase in raw material prices has left the French steel industry struggling to stay afloat.         Before anyone could catch their breath, they were hit with a significant drop in steel prices.         Both Britain and Austria have synchronized their actions, causing the international market prices for crude steel and pig iron to drop by 15.4% and 18.6% respectively. The influx of large quantities of cheap steel has directly plunged the French heavy industry into a negative interest rate era.         The dilemma now facing the French heavy industry is production equates to losses, and the more they produce, the more they lose. However, not producing also results in losses, with the only difference being the extent of the losses.

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