Golden Spoon Investment Portfolio - Chapter 149

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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149. Surely the yen won’t crash again.

A large Mercedes sedan glided smoothly along the expansive Olympic Boulevard toward Gimpo International Airport.
The afternoon weekday traffic was light, allowing the vehicle to cruise unimpeded at a brisk pace.
In the back seat, Seok-won sat reclined against the upholstery in casual business attire without a tie, gazing out the window.
Then, from the radio Kim Hyung-gi had tuned in, an intriguing news report began to broadcast.

[We now bring you the following report.
At the G7 Finance Ministers’ Meeting of the seven advanced Western industrial nations currently underway in Washington, Japan has reportedly expressed a desire to reconsider the current floating exchange rate system.
Fujimoto Masaki, Japan’s Minister of Finance, argued that there is a need to reconsider the floating exchange rate system, mutually discuss concepts such as target exchange rate ranges, and deliberate on strengthening each nation’s currency intervention measures.
However, Japan’s request, which stems from difficulties caused by recent yen appreciation, appears unlikely to gain support from other G7 nations or be formally adopted as an agenda item for discussion at this time.
According to expert analysis, Japan’s assertion clearly reflects concerns and anxieties about the yen’s dramatic surge in value this year.
In fact, the Bank of Japan itself forecasted in its recently published quarterly report that Japan’s economic recovery has been severely dampened by the Kobe earthquake and the sharp yen appreciation.
Meanwhile, Germany’s Chancellor strongly criticized the United States’ economic policies in a recent media interview, urging America to “stop sinking the dollar” and accusing it of deliberately creating a weak dollar.
[In light of these developments….]

Listening to the anchor’s commentary, one might predict that this G7 Finance Ministers’ Meeting would merely rehash each nation’s contentious positions and conclude without substantial results, but Seok-won’s assessment differed.

“The truly significant deals are never conducted loudly. They’re always settled quietly behind the scenes.”

Kim Hyung-gi, who was driving, glanced up slightly and caught Seok-won’s reflection in the rearview mirror, asking a question.

“What did you say?”

“It’s nothing.”

Kim Hyung-gi didn’t press further and redirected his gaze forward.
He didn’t know it yet, but soon enough he would learn that a reverse Plaza Accord had been reached to weaken the yen and the Deutsche Mark in order to strengthen the dollar.
Thinking of the seeds he had sown in advance for this very moment, soon to bear fruit and return to him manifold, Seok-won felt a deep smile naturally bloom across his face.
As this unfolded, the Mercedes carrying Seok-won exited Olympic Boulevard and entered the Gimpo International Airport grounds.
As the sedan gradually slowed and came to a stop in front of the International Terminal building, Seok-won opened the car door and stepped out.

“Are you certain you don’t need me to escort you all the way to the departure gate?”

Kim Hyung-gi, who had retrieved the travel luggage from the trunk, asked once more.
This came after Seok-won had already declined multiple times his insistence on accompanying him into the airport terminal.

“It’s fine, so please go ahead and head inside.”

Kim Hyung-gi hesitated for a moment before ultimately deciding to respect his wishes.

“Then please be careful on your way, young master.”
“I will.”

He gave a slight bow before climbing back into the driver’s seat of the Mercedes that Kim Hyung-gi had parked on the shoulder.
As the Mercedes pulled away, Seok-won retrieved his phone from his inner jacket pocket and made a call.

“I’m in front of Gate 2 right now.”

After ending the brief call, Seok-won pocketed his phone and waited in place.
Not long after, a powerfully built man wearing sunglasses and a tailored suit emerged from the main building.
Upon spotting Seok-won, the man approached directly and removed his sunglasses as he greeted him.

“It’s been a while, boss.”

The Black Man before me was none other than Bockus, who had handled my security when I traveled to Chicago to meet Cuff.
A veteran from the Navy SEAL, an elite tier special operations unit of the U.S. Navy, he had participated in numerous special operations including the Gulf War.
Originally, I had hired him on a short-term basis during my stay in Chicago, but his taciturn demeanor and keen instincts—always knowing what needed to be done without being told—had impressed me.
Since I needed personnel to accompany me during my time in the United States anyway, I spoke with Landon Shore and formally hired Bockus on quite favorable terms.
Bockus naturally grasped the handle of the suitcase placed to one side, stepped aside as if to guide me, and spoke.

“The private jet is standing by, so you can head straight to the departure gate.”

I gave a small nod and strode into the international terminal building.
I then proceeded through the departure formalities at the exclusive VIP gate before boarding the business jet positioned in the parking lot.
The business jet waiting there was my personal aircraft, fresh off the assembly line at the Gulfstream factory just a month prior.
The sleek Gulfstream IV was painted in a striking two-tone color scheme—Nautic Blue on the lower half and Crystal White on the upper—that conveyed both luxury and distinction.
As I climbed the ten steps lined with a red carpet, a blonde, slender beauty in a form-fitting short skirt uniform stood waiting, and upon seeing me, she offered an alluring smile.

“Welcome aboard.”

I gave a light nod in acknowledgment and stepped inside, where the interior—appointed like a luxury hotel—came into view.
Beige leather seats, a brown-toned high-gloss table, and a white vase adorning its surface created a modern yet pristine aesthetic, as if a penthouse reception room had been transported here.
While the aircraft could normally accommodate fourteen passengers excluding crew, only eight seats had been installed to allow for ample space.
Following the Stewardess’s guidance, I walked forward and settled into an independent full-flat bed seat that was far more spacious and luxurious than first class on a commercial airliner.

“Shall I put your jacket away?”
“Thank you.”

As Seok-won removed his jacket, Bella opened the wardrobe mounted on the wall and hung it inside.

“What’s your name?”
“It’s Bella.”

It was a beautiful name that suited her appearance perfectly.
Seok-won smiled gently and spoke to Bella in a casual tone.

“Bella, would you bring me a cup of coffee?”
“We’ll be departing shortly, so I’ll prepare it for you once we’re airborne.”
“That’s fine.”
“Is there anything else you need?”
“Nothing in particular right now.”
“Then for safety, would you please fasten your seatbelt?”

Seok-won nodded and fastened the seatbelt around his waist.

“Thank you.”

After confirming the seatbelt was properly secured, Bella went to the rear and skillfully closed the cabin door.
While takeoff preparations proceeded, I leaned back against the plush seat and gazed out through the windscreen, which was more than twice as large as those on commercial aircraft.
A few minutes passed.
With a faint hum, the aircraft engines on both sides roared to life, and I felt the fuselage vibrate.
Shortly after, under control tower guidance, the private jet slowly taxied out of the parking lot and positioned itself at one end of the runway.
The jet then pushed its engines to maximum output and surged forward, powerfully launching off the runway and soaring high into the sky.
Even during takeoff, the soundproofed interior of the private jet remained remarkably stable, with barely any perceptible noise or vibration.
In moments, the jet climbed to fifty thousand feet, then leveled off and set its heading toward New York, our destination.
As I gazed at the thick blanket of pristine white clouds below the expansive windscreen, Bella approached with a wheeled service tray.

“Here is your coffee.”

As Bella poured the coffee directly into the cup with a long-spouted pot, the rich aroma of freshly brewed beans drifted delicately around my nose.

“Thank you.”
“You’re welcome.”

Bella flashed a gentle smile and excused herself, leaving me to rest comfortably.
I removed my shoes, slipped into the slippers placed nearby, and settled into a relaxed posture with my legs stretched out as I held the teacup.

“Delicious.”

The taste felt all the more special knowing I was drinking coffee above the clouds.
Seok-won savored his coffee leisurely, thoroughly enjoying the flight with considerable satisfaction.

* * *

Nishi Ward, Yokohama, Kanagawa Prefecture, Japan—Nissan Motor Headquarters.
Yamamoto Daito, the Finance Director with a stocky build and gold-rimmed glasses, set down the file folder in his hand with a furrowed brow.
He then turned to Moriyama, the Finance Department Head seated on the sofa to his left, and spoke.

“You’re telling me we’ve suffered 10.3 billion yen in foreign exchange losses just this month alone?”

Moriyama, receiving his gaze, answered with an uncomfortable expression.

“Yes, sir. As you know, we conservatively projected this year’s exchange rate at around 99 to 103 yen per dollar when we formulated our financial plan. However, an unexpected and dramatic surge in yen strength has resulted in substantial foreign exchange losses.”
“Damn those hedge funds! We’re getting caught in the crossfire through no fault of our own.”

Yamamoto, his temper rising, leaned back in his chair and loosened his necktie with a rough gesture.
Moriyama, gauging his superior’s mood, spoke cautiously.

“The Bank of Japan’s rate cut has ended the hedge funds’ assault, but the yen remains strong, fluctuating in the 81-yen-per-dollar range. We’re likely to see substantial foreign exchange losses again next month.”
“Damn it!”

Before Moriyama could finish, Yamamoto burst out with a curse.

“What good is exporting countless automobiles if foreign exchange losses eat up a significant portion of our profits! What will the president say when he learns of this situation!”

Yamamoto tapped the armrest of the sofa repeatedly with his palm, raising his voice.
No one, including Yamamoto himself who had been insisting the yen would never suddenly surge so dramatically, had anticipated this turn of events, so Moriyama bore no fault.
Yet before his superior’s one-sided tirade, Moriyama hung his head like a condemned man.
After venting his frustration, Yamamoto pressed his temples with one hand as if his head ached, and asked.

“In your assessment, how long do you think this yen strength will persist?”
“Exchange rate fluctuations are so volatile that prediction is difficult, but the yen strength appears likely to continue for a considerable period.”

Moriyama answered carefully.
Yamamoto Daito’s expression hardened as well, since he shared the same concern.

“It does seem likely to happen.”

After a brief pause, Yamamoto Daito spoke in a heavy, subdued tone.

“If that occurs, how much more in foreign exchange losses do you expect this year?”

Moriyama’s complexion visibly darkened as he answered cautiously.

“Assuming an exchange rate of 81 yen, we’re looking at over 20 billion yen in losses for the second quarter alone.”

Yamamoto Daito’s face immediately crumpled.
The second quarter had only May left—barely a month—yet they would incur nearly 10 billion yen in additional losses during that span. There was no helping his reaction.

“Ugh…”

With arms crossed and brow deeply furrowed in contemplation, Yamamoto Daito soon lifted his head as if he’d reached a decision.

“This won’t do. We need to hedge the pure foreign currency exposure to exchange rate fluctuations immediately—through forward contracts or similar instruments.”

If the exchange rate fell sharply again, we would suffer losses, but given the current volatility, it was better to sacrifice some profit and reduce risk. Moriyama adopted a positive stance accordingly.

“I believe that would be the better course of action.”

Something occurred to Yamamoto Daito, and he looked toward Moriyama as he spoke.

“That proposal from Eldorado or whatever—the knockout option with a strike price of 90 yen, correct?”
“That’s correct.”
“If I recall correctly, the fluctuation range was 78 to 100 yen, wasn’t it?”
“Yes.”

Yamamoto Daito stroked his chin thoughtfully.

“I’m uneasy about the Quantum Fund’s maneuvering with the knockout option, but if the fluctuation range is that wide, the contract might not be a bad choice.”
“Are you considering entering into an options contract?”
“If we must hedge our currency exposure, isn’t it better to choose the most favorable option available?”

Moriyama found the option terms proposed by the Eldorado Fund quite favorable as well, and he nodded in agreement.

“Then, what amount should we set for the contract?”
“Hmm. One hundred million… no, since we’re doing this anyway, let’s contract for around five hundred million dollars.”
“Understood.”
“Just to be safe, have the legal team review the contract for any hidden toxic clauses, and if there are no issues, proceed with signing immediately.”
“Yes.”

Shortly after, Moriyama left the room, and Yamamoto Daito, now alone, double-checked the foreign exchange loss amount and clicked his tongue in frustration.
The yen’s wild surge in exchange rates had him so stressed he was nearly tearing his hair out.
Then, recalling the instruction to purchase options being sold by the Eldorado Fund, he furrowed his brow and muttered to himself.

“Surely the yen won’t plummet again and drop below 100 to the dollar.”

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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