Retail Sectors Oil and Gas

Question: Demonstrate the ability to analyse the factors affecting the present size and structure of the current oil and gas retail sectors and the impact of the rising price of oil. Answer: Introduction: Petroleum industry plays a very important role in the proper functioning of the economy. The UK retail market of the petroleum industry has about more the 200 companies that are into production, distribution, refining and marketing of the products. The filling stations selling fuels are covered under the retail market aspect. A major shakeout has taken place in the retail sector in the past twenty-five years, and this has led to the reduction in the filling stations from 18000 to 8591 by the end of the year 2014. There is competitiveness among the retail firms who only concentrate on the large volumes in the sites having shops and modern facilities. Factors affecting the current structure of the uks retail industry: The factors that are seen to affect the UKs retail industry are grouped under four crucial areas. The information is collected from the consumers, competitors, suppliers and government who affects the petrol filling business. Needs of Consumers: Price and convenience are the two important factors that a consumer considers while choosing PFS. By convenience, we mean the nearest location to the consumers. It is seen that a few customers are willing to travel to get fuel at a cheaper rate. The situation of the customers will lead to the extent to which the factors can have an influence on them (Andrews and Gateley, 2015). With more PFS availability, the focus of the consumers is seen to move towards price. A location gets more crucial for the customers when there are lesser options of PFS during their time of driving. A market survey conducted in UK in 2012, where about 1000 consumers over the age of sixteen have more focus on the price now than they had in the previous year. A question was also asked on the conveniences of filling fuel. The percentages of people agreeing to the statement that they look out for the convenient location to shopping for fuel rather than shopping around for lesser priced fuels w as low in 2012 (Van Vactor, 2010). This shows that the consumers mainly think about the price of the fuel, and they can take a step to search for cheaper oils in their nearest locations. The result when surveyed varied in Wales, East Anglia and Britain (Evans, 2007). A survey on the motorist in Ireland was conducted by the Consumer Council where the result showed that the 82 percentages respondents changed their driving behaviour due to the fuel price increase. They also said that they are always searching for the best price in fuel. The consumers also consider the other privileges that are offered by the PFS. These benefits are shopping, loyalty card offering and car wash facility. Bond with the fuel suppliers: Fuel to the PFS retailers are supplied by the fuel suppliers who are independent and oil company supply divisions (Falola and Genova, 2005). The relation with the suppliers if fuel is important it shows what prices the PFS retailers pay for the petroleum products. The price is paid in terms of Platts Plus. This means a global yardstick of prices is published daily for the petroleum product that is quoted in the terms of the US dollars. The charges that are taken extra by the suppliers of fuel over the quoted price are described as the plus element. Competition Levels: The consumers are getting more sensitive to prices even though the customers hold d some brand loyalty. Price competition is generally affected by the following factors: 1. The time and distance that is needed to arrive at the alternative PFS. 2. The size and the number of the PFS in a particular geographical area. 3. The various companies that operate the PFS in a particular geographical area. The reason for the increase in the competitive prices is due to the growth of the hypermarket in the petroleum retail market of UK. This has led to a fierce competition among the owners of PFS with the ones who are operating the hypermarkets. The PFS owners they need to face the hypermarkets basis retail prices (Giannakidis et al., n.d.). This has led to the gross margins to reduce. The gross margins have reduced, which is a percentage of the retail price over the fifteen years for the dealers who are independent. Regulations and Government policies: The business of the PFS is also affected by the government regulation and policies. It also helps in the investment and behavioural needs. The drivers related to the government can be classified into fiscal drivers, standards of safety and environmental policies and regulation. The fiscal drivers are the taxes like fuel duty, rates in business and corporation taxes that affects the business of PFS. The business rates are assessed on a five-year basis by the Valuation Office Agency. The assessment by the VOA is based on the performance of the PFS The final prices of retails accounts for 60 percentages of VAT and fuel duty. impact of rising oil prices on uks retail petroleum industry: The global economic performance is significantly dependent on the prices of fuel. There is a shift in the terms of trade, and also there is a transfer of income from the oil importing country to the oil exporting country (Aderoju, 2015). Oil prices increase in also affected by the increase in the prices of gas. The macroeconomic influence is affected with the rise in the prices of oil. Due to higher earnings from exports the oil exporting nations are facing a rise in the real income (Powering the UK The role of the power and gas sector in the wider economy, 2015). There is a negative impact on the importing countries of oil with the oil price increase. To keep their local economy running, they need more energy supplies. The increased oil prices have led to the increase in the production. This also caused the product prices to increase (PwC, 2015). Inflation happens to make the consumers life tougher around the world. The emerging economies are affected severely due to flat wages and the accelerated rate of spending. The national statistics of UK has shown the factory gate prices of UK increased to the highest levels during November 2009 due high oil prices. During this year, inflation rose for the month of November to January and value added tax was at 17.5 percentages during the month of February (Haerens, 2010) . The Bank of England predicted that pressures of inflation would occur more promptly. To stimulate the growth of the economy, the government reduced the value added taxes by 15 percentages. The rise in oil prices led to decrease in the exports of oil by the UK retail petroleum sector. The first quarter of 2010 saw an increase in the prices of oil from 80 dollars to 90 dollars. The major recessions in the countries like United States, United Kingdom and Europe is mainly due to the rises in the crude oil prices (Maugeri, 2006). Potential of technological change in the recent decade: The oil industrys future depends on the perpetual technological improvement. The international oil industries are also not in a position to accept the new technology. The 3D seismic mapping was used by the Exxon Company in the year 1967 for the exploration process. This was extremely dependent on the power of computing and cost reduction outside the industry. The seismic surveys were seen as a common practice in the United States and the Gulf of Mexico (McCage, 2007). There was a dramatic improvement in the productivity due to horizontal drilling. This drilling process was only due to the controllable steering from the surface and technology in evaluating the characteristic of a reservoir during the time of drilling. This technology can be beneficial for increasing the production of petroleum fuel. The technology of fracturing has also played a remarkable effect. This can be a potential technology in the future. The fracturing technology has a long history. It was experimented first by Amoco on reservoir basis. The Barnett shale with the help of the government support initiated the fracturing via horizontal wells. The slow adoption of technology may also result due to risk aversion on applying it to large projects (Nakaya, 2006) . The other factors that lead to slow penetration of technology were depletion of fields, economics and management practices of reservoirs. Before the application of any technology, a proper research and development are required. The small companies are seen to have a more aggressive approach. This was clear with the Mitchell Energy role in the development of hydro racking in shale gas. The government of the country should support development and research on the exploration of oil and gas of United Kingdom. As new exploration remains unsuccessful with the diffusion of new technology the budget for research has also lessened (Oilandgasinnovation.com, 2015). The immediate effect of this was the increase in the oil prices. The leading oil companies established their centres of research linked to their core business in an area with technical specialities (OFFSHORE OIL GAS SECTOR STRATEGY, 2015). In case of venture investment, a fraction of it is devoted to energy technology and among this hydro carbon related technology accounts for a small portion. Some money is also spent on the minerals and mining industry for supporting it. The mineral company that comes in mind is the Simbol Materials that produces lithium. The petroleum retailers can install the Smart Pos systems developed by petro soft that was designed to make the process of transaction more efficient. The features include electronic journal, drawers for cash with a drawl; the data can be accessed and processed online in the system. There is also demo for the first time users of the system. The qwickserve software by Petro soft is an innovative hardware technology used in the food services industry. These systems are also used in the UKs retail petroleum industrys food division. This helps in accuracy and a worthwhile experience for the retailers and the customers. The features that the software holds are self-services ordering, management of menu and recipe, customization of a menu, reporting, etc. The benefits the retailer is going to have after the installation is customer empowerment, increased up selling opportunities, expanding promotional opportunities, reduces errors due to entry of data, data entry time is reduced, improved menu pricing accuracy and helps increase in inventory. The C- store office feature of Petro soft will help in the management of inventory of the multi-store and single retail operators. The future proofing f the oil industry: Preparation is to be made by the industry to face the critical and uncertainties of the industry. More the 66 percentages of the company are seen to benefit from the oil field pilots that are digital, the improved performance and cost reduced the benefit. The security of people, the physical data is already seen to realise. Effective leadership, a good culture of business and adopting the right technologies such as cloud and wireless is required to future proof the digital oilfield technologies. The risks can be mitigated with management of the complex big data (Oil and Gas UK -the voice of the offshore industry, 2015). The functions in the oilfield are seen to achieve rapid advancement through the digital technologies. The work forces are better connected with the wireless systems. More than 75 percentages of the company are using this technology (study-of-the-uk-petroleum-retail-market, 2015). The workers working isolated areas are given mobile devices that have location-enabled fe atures. There is a clear case of adoption of digital technology in the oil fields in the remote of places. The organization that has adopted technological changes has experienced reduction in costs, better management process and smoother flow of information. There may arise a further investment of 360 million dollar in technologies related to the oil fields in the coming years. This is indicated by the projections in the industry. Conclusion: The UKs oil retail industry is seen booming in recent times. Due to the uncertainties in the global prices of oil, the oil industry will have some effect. If the industries adopt technology, the exploration of oil and gas becomes more convenient and comfortable. The factors that are affecting the structure of the industry must be analyzed in detail. As the needs of the consumers affect the sale of fuel so their decisions are to be taken into consideration by the retailers. Government policies and the tax structure of the country can also have a significant effect on the exploration oil. References Aderoju, A. (2015). TECHNOLOGICAL ADVANCEMENT IN THE OIL AND GAS INDUSTRY: A CONSIDERATION OF THE NODAL SEISMIC SYSTEM. Hamburg: Anchor Academic Publishing. Andrews, M. and Gateley, J. (2015). Savills UK | Oil and Gas. [online] Savills.co.uk. Available at: https://www.savills.co.uk/sectors/energy/oil-and-gas.aspx [Accessed 12 Aug. 2015]. Evans, R. (2007). Fueling our future. Cambridge: Cambridge University Press. Falola, T. and Genova, A. (2005). The politics of the global oil industry. Westport, Conn.: Praeger. Giannakidis, G., Labriet, M., OÃÅ'  GallachoÃÅ' ir, B. and Tosato, G. (n.d.). Informing energy and climate policies using energy systems models. Haerens, M. (2010). Oil. Farmington Hills, Mich.: Greenhaven Press/Gale, Cengage Learning. Maugeri, L. (2006). The age of oil. Westport, Conn.: Praeger Publishers. McCage, C. (2007). Oil. Detroit, MI: Greenhaven Press. Nakaya, A. (2006). Oil. Detroit .: Greenhaven Press. OFFSHORE OIL GAS SECTOR STRATEGY. (2015). 1st ed. [ebook] Available at: https://www.hse.gov.uk/offshore/offshore-oil-and-gas.pdf [Accessed 12 Aug. 2015]. Oil and Gas UK -the voice of the offshore industry. (2015). 1st ed. [ebook] Available at: https://www.oilandgasuk.co.uk/cmsfiles/modules/publications/pdfs/EC030.pdf [Accessed 12 Aug. 2015]. Oilandgasinnovation.com, (2015). Oil And Gas Innovation Center Oil Gas Innovation Center. [online] Available at: https://oilandgasinnovation.com/home/ [Accessed 12 Aug. 2015]. Powering the UK The role of the power and gas sector in the wider economy. (2015). 1st ed. [ebook] Available at: https://www.ey.com/Publication/vwLUAssets/Powering_the_UK/$FILE/Powering_the_UK.pdf [Accessed 12 Aug. 2015]. PwC, (2015). Gateway to growth: innovation in the oil and gas industry. [online] Available at: https://www.pwc.com/gx/en/oil-gas-energy/publications/gateway-to-growth-innovation-in-the-oil-and-gas-industry.jhtml [Accessed 12 Aug. 2015]. study-of-the-uk-petroleum-retail-market. (2015). 1st ed. [ebook] Available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/69760/7322-study-of-the-uk-petroleum-retail-market.pdf [Accessed 12 Aug. 2015]. Van Vactor, S. (2010). Introduction to the global oil gas business. Tulsa, Okla.: PennWell Corp.

Principal of Financial Markets Global Market Dynamic Trends

Question: Describe about the Principal of Financial Markets for Global Market Dynamic Trends. Answer: Introduction Airlines sector is one of the fastest growing industries in the Australian continent, in this paper the various analysis will present the detailed outlook of the opportunities in this sector. The global market is very dynamic, the trends in the market are always changing, and it requires the companies to keep their policies to match to the trends of the market. Top-down analysis is widely used to formulate strategies that can counter the challenges in the market. Investors prefer to analyse the global trends in the market along with the economic trends to predict the performance of the company in the market. The challenges in the market require developing new strategies to make the company stable to face the new trends in the market. In the present analysis, the researcher has tried to provide remedial measures to the economical trends of the global airlines market (Afonso and Sousa, 2012). To provide a detailed analysis a comparison is made between the Virgin Airlines one of the top competitors that is looking to set itself up the trends in the Australian airlines market. The bottom-up approach presents a comparative analysis of the two giants that has been trying to exploit the opportunities in the market. Financial data has been used to make the analysis more detailed and authentic suggesting the need for the changes in the policies that can help in establishing a better market position. Justifications are provided based on the analysis that will guide the investors to choose the company that has shown the chances of improvement and profitability in the Australian airlines market (Altman et al. 2012). Top- down analysis The airlines industry has faced various challenges in the recent time due to the rising costs that can make the businesses can run at loss. The various challenges in the airlines industry is explained by the SWOT analysis and other analysis can help in the proper analysis of the airlines business in Australia. The rising fuel costs and other costs have made the business to run and face the challenges in the economy. The micro economic factors influence the various business trends to improve the business to settle in the market. In recent time, the Qantas Airlines has seen growth in the recent time as the fuel prices have seen decline (Armstrong et al. 2016). This has led to the growth in the business of these airlines in the global market. Economic factors have made the airlines businesses like the Qantas and Virgin Blue to try to regain the market. It is the strengths of the basic policies that has made the businesses to face the challenges in the market and function smoothly. The e conomic and the environmental factors has influenced the functioning of the businesses in the global airlines market. The various macro economic factors influence the growth of the business in the global market and influence better economic growth of the business (Biddle, 2015). Economic Environment of Airlines industry The political issues influenced the business operations of the airlines business in the continent of Australia. The excessive interference from the government and the political unrest did hamper the working of these firms in the global airlines sector. The environmental factors largely affect the functioning of the airlines in the aviation industry. In the declining economic conditions in the aviation sector suffered loss of faith of the customers. The customers were faced with the problems of rise in the prices of the air tickets and other services of the airlines. However, the declining business of the aviation made the government to jump into action to prevent this issue from causing impact to the economy. The later interventions of the government and the authorities have resulted in the control of the high rising prices (Bilotkach and Lakew, 2014). Every airline has to follow strict set of rules and regulations in the country of its operations to make their business flourish in the challenging environment. Various other trade barriers like stiff competition and other environmental factors had influenced the business of the airlines in the country. Trade barriers breakdown has made the aviation businesses like the Qantas and the Virgin Blue to get relief from the restrictions and provide better services to the customers at comparative rates. To attain the major share of the market these airlines had to lower down their ticket pricing and follow a policy of cost cutting to prevent the customers from shifting away from the brands (Blankespoor et al. 2013). In addition to this, they have social responsibility tom follow that can make the airlines to have a better business in the competitive market. In addition to this, international regulations and policies have made the industry to rethink the policies that can help them achieve the business growth and help min strengthening the economy. The conditions prevailing in the continent of Australia seems favourable for the growth of the industry as the international market seems to be positive and there is no such present threats of any disturbance globally. The air travellers in the country of Autralia have seen a rise in the recent time leading to the growth of business among the business class. International trips have also seen a high trend more to Europe and Asia that has made the airlines business am blooming sector in the recent years (Bonner et al. 2013). The positive environment for the growth and success of the business has made the companies to experience in the growth of business and profitability with support of the local authorities and government. Not only Australia but all over the world there has been a major downfall of the economies that has affected the business of the airlines largely on global scale. These falling economies have affected the spending power of the individuals and thus the air travellers have been declining. To make the situation worse there has been many issue related to the safety of air travels and environmental issues that the companies had to face hindering the growth of this sector in the country. The rising fuel prices in late 19th and early 20th had affected the airline business drastically (Borenstein and Rose, 2014). However, this issue has been tackled in the present time, although the rising fuel prices have been an issue for concern. Operational cost has been another area that affected the airlines sector, as the cost of operations had gone high making the businesses to loose profit or impose higher fares that can affect the customer number. These factors together made the aviation industry s uffer to establish itself in the market. Skilled workers are a necessity of the airlines sector and it had affected the businesses largely. The shortage of the skilled workers in the country forced the companies to look for alternatives to get skilled workers from other countries. This made the companies to invest huge money on the skilled workers and the employment condition had an adverse affect in the country. The overall decline of the economy had a huge impact making it hard for the companies to survive the negative conditions in the market (Bown and Crowley, 2014). Service quality is the major area that is to be kept in mind by every airlines business to make the customers return to the company. Providing the better services has been the main motive of the aviation industry in the present times as the customer now have access to the information readily and they can easily com pare prices before selecting an airlines (Chen and Chen, 2012). Being the top airlines in Australia, it is then duty of these companies to provide the customers the best possible service at prices that can be competitive to the others in the industry. This forced the airlines to adapt to a strategy of customer centric approach that can help the airlines to achieve operational advantage in the business environment. The spreading of the businesses and the falling trade barriers has made the business to step outside the boundaries of the country and make the profit out of the rising opportunities in the market (Brueckner and Picard, 2013). International business growth has ma de the people of Australia to travel to other places making the airlines to use this opportunity to make the customers choose the flights providing attractive discounts and facilities to the business people. The competition in the aviation industry is rising steeply and it requires for the airline giants to develop policies that can help them carter to more customers and gain the trust of the customers. Technological advancement calls for improvement in the policies and processes of the companies so that it can cut down its costs and provide cost effective services to the customers (Fenna, 2013). Many new airlines are trying top get the customers to choose them by providing huge discounts and attractive packages that can make the customers to choose them, over the airlines giants like the Qantas and the Virgin Blue. As the competition is fierce it requires for these companies to try and adapt to new policies apart from trying to use their brand name, as customers today are looking for better value for their money apart from only brand name (Corsetti et al. 2013). The previous year that is 2015 had seen some major shift in the businesses in the aviation sector as being the year that saw huge rise in the demand for air tickets (Brueckner et al. 2015). This rise was largely due to the falling ticket prices due to the competition in the market. The fall in prices of the services made, the people top choose the airlines above the other available options. The fall in the prices also made the middle class of the country to have the opportunity to use these services and help in the promotion of the companies in the aviation industry. This has been evident from the rise in the performance of the aviation sector in the recent analysis of the economic growth in the country (Gregory and Smith, 2016). The positive economic growth has made the companies to have the chance to makes the use of the opportunities and make the business profitable for the business. Bottom- up analysis The micro economic factor analysis has largely helped the companies to provide the best services to the customers. The strengths of the industry have made them to face the challenges in the market and come out as successful in the end through the difficult economic conditions in the country. The major issue was the falling economies and the rising competition in the market (Herndon, Ash and Pollin, 2014). The rise in the competition has made the firm to rethink its policies to prevent the customers from shifting to the other alternatives. The opportunities in the market are to be explored by the firm and used to get the benefits of the market to increase their business. Aviation is comparatively large industry that requires proper analysis and planning over the business operations. SWOT analysis help sin analysing the strengths of the company and plan for the future threats in the market that the companies will need to overcome to survive in the market (Lawton, Rajwani and Doh, 2013) . The two airlines in the context are the Qantas and the Virgin Blue, financial analysis of these companies makes the different contexts that are helpful in determining the operational efficiency of these businesses. Financial Ratios and Growth Profitability of Qantas Airways Ltd Key Ratios - Profitability Years 2007 2008 2009 2010 2011 2012 2013 2014 2015 Margins % of Sales Gross Margin 73.77 56.83 55.77 55.24 55.62 51.72 54.6 49.83 54.01 Operating Margin 6.9 5.83 1.39 -1.55 -0.63 -6.6 1.28 -26.19 4.92 Profitability Asset Turnover (Average) 0.78 0.8 0.73 0.67 0.7 0.71 0.77 0.81 0.89 Return on Assets % 3.71 4.93 0.59 0.56 1.23 -1.17 0.02 -15.16 3.2 Liquidity/Financial Health Current Ratio 0.87 0.74 0.89 0.93 0.9 0.77 0.82 0.66 0.68 Quick Ratio 0.82 0.67 0.78 0.81 0.78 0.65 0.7 0.58 0.6 Financial Leverage 3.17 3.44 3.5 3.35 3.39 3.6 3.4 6.05 5.09 Debt/Equity 0.68 0.62 0.86 0.86 0.89 0.92 0.88 1.84 1.39 Efficiency Receivables Turnover 11.64 11.2 11.69 12.43 13.59 13.95 12.49 11.52 14.41 Inventory Turnover 15.45 34.34 27.64 20.94 18.45 19.25 19.51 22.33 22.36 Fixed Assets Turnover 1.23 1.28 1.19 1.08 1.1 1.07 1.14 1.25 1.46 Asset Turnover 0.78 0.8 0.73 0.67 0.7 0.71 0.77 0.81 0.89 The financial data of Qantas Airlines over the years shows a trend of improvement in the business as propelled by the growth of the economy in the present times. The gross margin of the company has seen a rise in the present times compared to the past years. The gross margin of a company is derived by deducting the revenue generated in the present year from the total cost of goods sold in the present year (Merkert and Cowie, 2012). By the calculations, it is seen that the gross margin has seen improvement that is positive for the business and inturn affect the economy. This shows that the company is stable has signs of growth in the business that has affected the overall growth of the aviation industry (Misopoulos et al. 2014). In addition to this, the operating margin has also seen an improvement in the recent years compared to the past years based on the financial data of the company. The operating margin is the indicator of the growth of the economy that is directly affected by th e rise and fall of the economy. Operating margin is derived from the operating expenses and the revenue that is earned by the company in the given period. Current ratio derived from the above tables shows the major changes that are seen in the liability repayable power of the company. The current ratio strengths show that the firm has better chances to pay off its current liabilities. The more value of the current assets that is present with the company makes the strength of the company in handling the current payments of the business (Zou et al. 2014). The asset turnover ratio of the company has been positive indicating that the firm has enough capacity to generate income based on the assets hold by the company. In addition to this the credit collection of the company is healthy indicating that the company gets its dues cleared as early as possible making the debt collection a strength of the organisation. However, the asset turnover ratio also indicates that the company has been slow to increase the sales in the years of its operations (Pearson, Pitfield and Ryley, 2015). Financial Ratio and Growth Profitability of Virgin Blue Ltd Key Ratios - Profitability Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 Margins % of Sales Gross Margin _ _ 71.2 _ 72.28 73.33 71.77 71.91 74.68 Operating Margin 14.76 6.09 -7.58 2.87 -1.5 1.56 -3.43 -8.86 -2.41 Profitability Asset Turnover (Average) 0.94 0.82 0.78 0.82 0.85 1 0.95 0.95 0.9 Return on Assets % 9.36 3.46 -4.77 0.59 -1.76 0.58 -2.33 -7.81 -2.12 Liquidity/Financial Health Current Ratio 1.1 0.88 0.53 0.76 0.65 0.65 0.54 0.64 0.69 Quick Ratio Financial Leverage 3.1 3.61 5.83 4.15 4.15 4.3 4.26 4.46 5.37 Debt/Equity 1.02 1.28 2.68 1.65 1.52 1.53 1.46 1.52 2.16 Efficiency Receivables Turnover 39.09 34.45 28.91 26.41 22.52 24.24 23.14 20.83 20.51 Inventory Turnover _ _ _ _ 177.65 104.38 50.38 36.68 30.87 Fixed Assets Turnover 1.52 1.23 1.04 1.1 1.19 1.42 1.38 1.51 1.63 Asset Turnover 0.94 0.82 0.78 0.82 0.85 1 0.95 0.95 0.9 The table of the financial data shows that the company has experienced a huge correction in the gross margin. In addition to the gross margin improvement over the years showing the positive trends, the current ratio of Virgin Blue has improved a lot since the pervious years as evident from the above table. The strength in the current ratios provide evidences that the company has been successful largely in paying off the liabilities owing to the strengths of the assets of the company (Wang, Bonilla and Banister, 2016). The current ratio has been efficient for the company in the recent years rising above the falls in the past years. This proves that the company is more stable in handling the challenges and perform better in the challenging environment of the aviation market (Zhang et al. 2013). The creditability of the company has been an area that requires correction and that is evident from the present ratios in the market. The credit generation has been low owing to the low receivables turnover ratio. However, the sales of the company based on the assets of the company are positive as the asset turnover ratio been subsequently marginal in the recent years. The debt equity ratio presents the debts that the companies have gained in the process of purchasing assets on credit (Zhang et al. 2014). The high rate of debt equity possesses negative impact on the investors being the issue of risks associated with the companys business. This indicates that the company may not be able to pay off dividends to the investors efficiently as the debt equity is higher. Recommendation After analysing the financial data of Qantas Airlines and Virgin Blue it is evident that Qantas Airlines will be the preferable choice for investment for the investors. This is justified by lower debt equity ratio of Qantas as compared to Virgin Blue. The investors will look for the option that has lesser risk associated with the investment and in that case, Virgin Blue seems to lag behind as the debt equity ratio of the firm is higher and it means that the company is not stable and return on investment of the investors can be at risk. However, the sales of the company have seen a positive trend but it may not be enough for the company to make the investors invest in the organisation. In order to have better investment, Virgin Blue needs to correct its debts equity ratio as the competition is high, Qantas Airlines being the market leader can take away the investors being more stable in providing return to the investors. Conclusion In the above paper, the two airlines are compared based on the Top-down and Bottom-up analysis to present a better understanding of the opportunities that lie in the aviation market for the investors. 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How Important Is A Comparative And Contrast Essay Sample?

How Important Is A Comparative And Contrast Essay Sample?If you are an English major, then a comparative and contrast essay sample is essential for your academic success. If you are a student of statistics, a comparative and contrast essay sample is important for you to prepare your application for entrance in professional schools as well as in college entrance exams.First of all, both subjects will show your capabilities to learn the subject and think deeply on the subject. They will show your ability to integrate both texts in a coherent way. Students who took a comparative and contrast essay sample are able to improve their teaching and learning skills. They learn about concepts like structure, logical reasoning, language and reading comprehension that can benefit them in the future.Unlike a routine essay, a comparative and contrast essay sample will reveal your reasoning and ability to think analytically and creatively. Even if you have learned the subject well in a single semest er or even in a single year, when you are required to write a competitive essay, this kind of essay will help you expand your knowledge. It will let you identify your weaknesses and strengths in the subject.Since a regular essay usually has some vocabulary or rhetorical questions, you might have difficulty writing a comparative and contrast essay sample. However, since it involves more analysis and logic, you will learn how to write the most effective and creative essay possible. Many students have finished their studies by publishing their papers based on a comparative and contrast essay sample.A variety of organizations and teaching staffs encourage students to use these samples in their papers and essays. However, it is still better to write the paper in English first and then incorporate your foreign language skills or your critical reading and writing skills into your paper before you start writing in your foreign language skills.The sample is not just an essay but also a train ing program for students that can be used in the same way to teach students different disciplines. Once the student has understood what the author wanted to convey through the essay, the students will be more motivated to learn more about their subject to satisfy the expectations of the essay.Besides that, since these essay samples are original, students can start learning about the English language while they are having fun while they are writing it. They can also enhance their writing skills so that they will be ready to compete with other students in the future.

Pixar and Walt Disney Merger Essay Example

Pixar and Walt Disney Merger Paper NEW YORK Mickey Mouse and Nemo are now corporate cousins. Walt Disney has announced that it is buying Pixar, the animated studio led by Apple head Steve Jobs, in a deal worth $7. 4 billion. Speculation about a deal being imminent raged on Wall Street for the past few weeks. Disney has released all of Pixars films so far, but the companies current distribution deal was set to expire following the release of this summers Cars. The merger brings together Disneys historic franchise of animated characters, such as Mickey, Minnie Mouse and Donald Duck, with Pixars stable of cartoon hits, including the two Toy Story films, Finding Nemo and The Incredibles. Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders, said Jobs in a statement. Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world. As part of the deal, J obs will become a board member of Disney, the companies said. And John Lasseter, the highly respected creative director at Pixar who had previously worked for Disney, will rejoin the House of Mouse as chief creative officer for the companys combined animated studios and will also help oversee the design for new attractions at Disney theme parks. The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses, said Disney CEO Robert Iger in a written statement. During a conference call with analysts Tuesday, Iger said that acquisition discussions had been going on for the past several months. Jobs added that after a lot of soul searching, he came to the conclusion that it made the most sense for Pixar to align itself with Disney permanently instead of trying to distribute films on its own or sign with another movie studio partner. According to the terms of the deal, Disney (Research) will issue 2. 3 shares for each Pixar share. Based on Tuesdays closing prices, that values Pixar at $59. 78 a share, about a 4 percent premium to Pixars current stock price. Shares of Pixar (Research) fell slightly in regular trading on the Nasdaq Tuesday but gained nearly 3 percent in after-hours trading. The stock has surged more than 10 percent so far this year on takeover speculation. Disneys stock gained 1. 8 percent in regular trading on the New York Stock Exchange and was flat after-hours. Prior to the deals announcement, some Wall Street observers had speculated that Disney may be paying too much for Pixar. A source tells FORTUNE that some Disney board members also thought the price was too high. To that end, Disney chief financial officer Thomas Staggs said during the conference call that the deal would reduce Disneys earnings slightly in fiscal 2006, which ends this September, as well as fiscal 2007. We will write a custom essay sample on Pixar and Walt Disney Merger specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Pixar and Walt Disney Merger specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Pixar and Walt Disney Merger specifically for you FOR ONLY $16.38 $13.9/page Hire Writer He added though that Pixar should add to earnings by fiscal 2008 and that Disney was still on track to post annual double-digit percentage gains in earnings through 2008. But one hedge fund manager said that the risk of Disney losing Pixar was too great. The question isnt did Disney pay too much but how expensive would it have been for Disney if Pixar fell into someone elses hands, said Barry Ritholtz, chief investment officer with Ritholtz Capital Partners, a hedge fund that focuses on media and technology stocks. Jeffrey Logsdon, an analyst with Harris Nesbitt, agreed with that assessment. He said that Pixars success quotient justified the price of the deal. Pixar has yet to have a flop with its six animated movies. They have grossed more than $3. 2 billion worldwide, according to movie tracking research firm Box Office Mojo. Disney, however, has struggled in the computer-generated animated movie arena. Even though its most recent CG-animated film, Chicken Little performed better than many had expected at the box office, it was not as big a hit as any of the Pixar films. Robert Iger has made no secret of the fact that he wanted to get the animated business back to where it was. Its what Disney has known for but the movies they did in-house did not do as well as the ones they did with Pixar, said Michael Cuggino, a fund manager who owns about 100,000 shares of Disney in the Permanent Portfolio and Permanent Portfolio Aggressive Growth funds. Pixar has yet to announce what movies it is working on after Cars, however. It is believed that Pixars next film about a rat living in a fancy Parisian restaurant, tentatively titled Ratatouille may be released on 2007 and that a Toy Story 3 may be in the works as well. Jobs said during the conference call that nothing has been decided about future Pixar releases yet, but added that the company feels strongly about making sequels to some of its previous hits. And Iger said that announced plans for Disney-produced animated films, including the release of American Dog in 2008 and Rapunzel Unbraided in 2009, are still on track. It would have been unthinkable to imagine Disney and Pixar teaming up just a few years ago. The two companies broke off talks to extend their current distribution agreement in 2004 due to a strained relationship between Jobs and former Disney CEO Michael Eisner. But since Iger succeeded Eisner last year, he has extended an olive branch to Jobs. Disney and Apple have already announced several online programming deals during the past few months. Disney now has agreements in place to sell hit ABC prime time shows, such as Desperate Housewives and Lost, as well as content from ABC Sports and ESPN on Apples popular iTunes music and video store. Cuggino said the addition of Jobs, who will also become Disneys largest individual shareholder, to Disneys board could mean that more innovative digital deals could be in the works. Jobs is a dynamic personality who knows consumer electronics. Its an opportunity to bring some youthful energetic thinking to Disneys board. Disney, like many other large media companies, has seen its stock price stagnate during the past year as investors have flocked to more rapidly growing digital media firms such as Apple as well as search engines Google (Research) and Yahoo! Research) But Logsdon said the acquisition of Pixar could help Disney increase revenue throughout all of its business lines. So even though some may be quibbling in the short-term about how much Disney had to spend, he thinks Disney made the right move. Its a smart strategic deal, Logsdon said. The benefit in theme parks, consumer products and cable will probably make this deal look a lot smarter a year or two from now.

Iron Curtain Speech by Winston Churchill

Iron Curtain Speech by Winston Churchill Nine months after Sir Winston Churchill failed to be reelected as Britains Prime Minister, Churchill traveled by train with President Harry Truman to make a speech. On March 5, 1946, at the request of Westminster College in the small Missouri town of Fulton (population of 7,000), Churchill gave his now famous Iron Curtain speech to a crowd of 40,000. In addition to accepting an honorary degree from the college, Churchill made one of his most famous post-war speeches. In this speech, Churchill gave the very descriptive phrase that surprised the United States and Britain, From Stettin in the Baltic to Trieste in the Adriatic, an iron curtain has descended across the Continent. Before this speech, the U.S. and Britain had been concerned with their own post-war economies and had remained extremely grateful for the Soviet Unions proactive role in ending World War II. It was Churchills speech, which he titled The Sinews of Peace, that changed the way the democratic West viewed the Communist East. Though many people believe that Churchill coined the phrase the iron curtain during this speech, the term had actually been used for decades (including in several earlier letters from Churchill to Truman). Churchills use of the phrase gave it wider circulation and made the phrase popularly recognized as the division of Europe into East and West. Many people consider Churchills iron curtain speech the beginning of the Cold War. Below is Churchills The Sinews of Peace speech, also commonly referred to as the Iron Curtain speech, in its entirety. The Sinews of Peace by Winston Churchill I am glad to come to Westminster College this afternoon, and am complimented that you should give me a degree. The name Westminster is somehow familiar to me. I seem to have heard of it before. Indeed, it was at Westminster that I received a very large part of my education in politics, dialectic, rhetoric, and one or two other things. In fact we have both been educated at the same, or similar, or, at any rate, kindred establishments. It is also an honour, perhaps almost unique, for a private visitor to be introduced to an academic audience by the President of the United States. Amid his heavy burdens, duties, and responsibilities- unsought but not recoiled from- the President has travelled a thousand miles to dignify and magnify our meeting here to-day and to give me an opportunity of addressing this kindred nation, as well as my own countrymen across the ocean, and perhaps some other countries too. The President has told you that it is his wish, as I am sure it is yours, that I should have full liberty to give my true and faithful counsel in these anxious and baffling times. I shall certainly avail myself of this freedom, and feel the more right to do so because any private ambitions I may have cherished in my younger days have been satisfied beyond my wildest dreams. Let me, however, make it clear that I have no official mission or status of any kind, and that I speak only for myself. There is nothing here but what you see. I can therefore allow my mind, with the experience of a lifetime, to play over the problems which beset us on the morrow of our absolute victory in arms, and to try to make sure with what strength I have that what has been gained with so much sacrifice and suffering shall be preserved for the future glory and safety of mankind. The United States stands at this time at the pinnacle of world power. It is a solemn moment for the American Democracy. For with primacy in power is also joined an awe-inspiring accountability to the future. If you look around you, you must feel not only the sense of duty done but also you must feel anxiety lest you fall below the level of achievement. Opportunity is here now, clear and shining for both our countries. To reject it or ignore it or fritter it away will bring upon us all the long reproaches of the after-time. It is necessary that constancy of mind, persistency of purpose, and the grand simplicity of decision shall guide and rule the conduct of the English-speaking peoples in peace as they did in war. We must, and I believe we shall, prove ourselves equal to this severe requirement. When American military men approach some serious situation they are wont to write at the head of their directive the words over-all strategic concept. There is wisdom in this, as it leads to clarity of thought. What then is the over-all strategic concept which we should inscribe today? It is nothing less than the safety and welfare, the freedom and progress, of all the homes and families of all the men and women in all the lands. And here I speak particularly of the myriad cottage or apartment homes where the wage-earner strives amid the accidents and difficulties of life to guard his wife and children from privation and bring the family up in the fear of the Lord, or upon ethical conceptions which often play their potent part. To give security to these countless homes, they must be shielded from the two giant marauders, war and tyranny. We all know the frightful disturbances in which the ordinary family is plunged when the curse of war swoops down upon the bread-winner and those for whom he works and contrives. The awful ruin of Europe, with all its vanished glories, and of large parts of Asia glares us in the eyes. When the designs of wicked men or the aggressive urge of mighty States dissolve over large areas the frame of civilised society, humble folk are confronted with difficulties with which they cannot cope. For them all is distorted, all is broken, even ground to pulp. When I stand here this quiet afternoon I shudder to visualise what is actually happening to millions now and what is going to happen in this period when famine stalks the earth. None can compute what has been called the unestimated sum of human pain. Our supreme task and duty is to guard the homes of the common people from the horrors and miseries of another war. We are all agreed on that. Our American military colleagues, after having proclaimed their over-all strategic concept and computed available resources, always proceed to the next step- namely, the method. Here again there is widespread agreement. A world organisation has already been erected for the prime purpose of preventing war, UNO, the successor of the League of Nations, with the decisive addition of the United States and all that that means, is already at work. We must make sure that its work is fruitful, that it is a reality and not a sham, that it is a force for action, and not merely a frothing of words, that it is a true temple of peace in which the shields of many nations can some day be hung up, and not merely a cockpit in a Tower of Babel. Before we cast away the solid assurances of national armaments for self-preservation we must be certain that our temple is built, not upon shifting sands or quagmires, but upon the rock. Anyone can see with his eyes open that our path will be difficult and also long, but if we persevere together as we did in the two world wars- though not, alas, in the interval between them- I cannot doubt that we shall achieve our common purpose in the end. I have, however, a definite and practical proposal to make for action. Courts and magistrates may be set up but they cannot function without sheriffs and constables. The United Nations Organisation must immediately begin to be equipped with an international armed force. In such a matter we can only go step by step, but we must begin now. I propose that each of the Powers and States should be invited to delegate a certain number of air squadrons to the service of the world organisation. These squadrons would be trained and prepared in their own countries, but would move around in rotation from one country to another. They would wear the uniform of their own countries but with different badges. They would not be required to act against their own nation, but in other respects they would be directed by the world organisation. This might be started on a modest scale and would grow as confidence grew. I wished to see this done after the first world war, and I devoutly trust it may be done forthwith. It would nevertheless be wrong and imprudent to entrust the secret knowledge or experience of the atomic bomb, which the United States, Great Britain, and Canada now share, to the world organisation, while it is still in its infancy. It would be criminal madness to cast it adrift in this still agitated and un-united world. No one in any country has slept less well in their beds because this knowledge and the method and the raw materials to apply it, are at present largely retained in American hands. I do not believe we should all have slept so soundly had the positions been reversed and if some Communist or neo-Fascist State monopolised for the time being these dread agencies. The fear of them alone might easily have been used to enforce totalitarian systems upon the free democratic world, with consequences appalling to human imagination. God has willed that this shall not be and we have at least a breathing space to set our house in order before this peril has to be encountered: and even then, if no effort is spared, we should still possess so formidable a superiority as to impose effective deterrents upon its employment, or threat of employment, by others. Ultimately, when the essential brotherhood of man is truly embodied and expressed in a world organisation with all the necessary practical safeguards to make it effective, these powers would naturally be confided to that world organisation. Now I come to the second danger of these two marauders which threatens the cottage, the home, and the ordinary people- namely, tyranny. We cannot be blind to the fact that the liberties enjoyed by individual citizens throughout the British Empire are not valid in a considerable number of countries, some of which are very powerful. In these States control is enforced upon the common people by various kinds of all-embracing police governments. The power of the State is exercised without restraint, either by dictators or by compact oligarchies operating through a privileged party and a political police. It is not our duty at this time when difficulties are so numerous to interfere forcibly in the internal affairs of countries which we have not conquered in war. But we must never cease to proclaim in fearless tones the great principles of freedom and the rights of man which are the joint inheritance of the English-speaking world and which through Magna Carta, the Bill of Rights, the Habe as Corpus, trial by jury, and the English common law find their most famous expression in the American Declaration of Independence. All this means that the people of any country have the right, and should have the power by constitutional action, by free unfettered elections, with secret ballot, to choose or change the character or form of government under which they dwell; that freedom of speech and thought should reign; that courts of justice, independent of the executive, unbiased by any party, should administer laws which have received the broad assent of large majorities or are consecrated by time and custom. Here are the title deeds of freedom which should lie in every cottage home. Here is the message of the British and American peoples to mankind. Let us preach what we practise- let us practise what we preach. I have now stated the two great dangers which menace the homes of the people: War and Tyranny. I have not yet spoken of poverty and privation which are in many cases the prevailing anxiety. But if the dangers of war and tyranny are removed, there is no doubt that science and co-operation can bring in the next few years to the world, certainly in the next few decades newly taught in the sharpening school of war, an expansion of material well-being beyond anything that has yet occurred in human experience. Now, at this sad and breathless moment, we are plunged in the hunger and distress which are the aftermath of our stupendous struggle; but this will pass and may pass quickly, and there is no reason except human folly of sub-human crime which should deny to all the nations the inauguration and enjoyment of an age of plenty. I have often used words which I learned fifty years ago from a great Irish-American orator, a friend of mine, Mr. Bourke Cockran. There is enough for all. The eart h is a generous mother; she will provide in plentiful abundance food for all her children if they will but cultivate her soil in justice and in peace. So far I feel that we are in full agreement. Now, while still pursuing the method of realising our overall strategic concept, I come to the crux of what I have travelled here to say. Neither the sure prevention of war, nor the continuous rise of world organisation will be gained without what I have called the fraternal association of the English-speaking peoples. This means a special relationship between the British Commonwealth and Empire and the United States. This is no time for generalities, and I will venture to be precise. Fraternal association requires not only the growing friendship and mutual understanding between our two vast but kindred systems of society, but the continuance of the intimate relationship between our military advisers, leading to common study of potential dangers, the similarity of weapons and manuals of instructions, and to the interchange of officers and cadets at technical colleges. It should carry with it the continuance of the present facilities for mutual security by the joint use of all Naval a nd Air Force bases in the possession of either country all over the world. This would perhaps double the mobility of the American Navy and Air Force. It would greatly expand that of the British Empire Forces and it might well lead, if and as the world calms down, to important financial savings. Already we use together a large number of islands; more may well be entrusted to our joint care in the near future. The United States has already a Permanent Defence Agreement with the Dominion of Canada, which is so devotedly attached to the British Commonwealth and Empire. This Agreement is more effective than many of those which have often been made under formal alliances. This principle should be extended to all British Commonwealths with full reciprocity. Thus, whatever happens, and thus only, shall we be secure ourselves and able to work together for the high and simple causes that are dear to us and bode no ill to any. Eventually there may come- I feel eventually there will come- the principle of common citizenship, but that we may be content to leave to destiny, whose outstretched arm many of us can already clearly see. There is however an important question we must ask ourselves. Would a special relationship between the United States and the British Commonwealth be inconsistent with our over-riding loyalties to the World Organisation? I reply that, on the contrary, it is probably the only means by which that organisation will achieve its full stature and strength. There are already the special United States relations with Canada which I have just mentioned, and there are the special relations between the United States and the South American Republics. We British have our twenty years Treaty of Collaboration and Mutual Assistance with Soviet Russia. I agree with Mr. Bevin, the Foreign Secretary of Great Britain, that it might well be a fifty years Treaty so far as we are concerned. We aim at nothing but mutual assistance and collaboration. The British have an alliance with Portugal unbroken since 1384, and which produced fruitful results at critical moments in the late war. None of these clash with the general interest of a world agreement, or a world organisation; on the contrary they help it. In my fathers house are many mansions. Special associations between members of the United Nations which have no aggressive point against any other country, which harbour no design incompatible with the Charter of the United Nations, far from being harmful, are beneficial and, as I believe, indispensable. I spoke earlier of the Temple of Peace. Workmen from all countries must build that temple. If two of the workmen know each other particularly well and are old friends, if their families are inter-mingled, and if they have faith in each others purpose, hope in each others future and charity towards each others shortcomings- to quote some good words I read here the other day- why cannot they work together at the common task as friends and partners? Why cannot they share their tools and thus increase each others working powers? Indeed they must do so or else the temple may not be built, or, being built, it may collapse, and we shall all be proved again unteachable and have to go and try to learn again for a third time in a school of war, incomparably more rigorous than that from which we have just been released. The dark ages may return, the Stone Age may return on the gleaming wings of science, and what might now shower immeasurable material blessings upon mankind, may even bring about its total destruction. Beware, I say; time may be short. Do not let us take the course of allowing events to drift along until it is too late. If there is to be a fraternal association of the kind I have described, with all the extra strength and security which both our countries can derive from it, let us make sure that that great fact is known to the world, and that it plays its part in steadying and stabilising the foundations of peace. There is the path of wisdom. Prevention is better than cure. A shadow has fallen upon the scenes so lately lighted by the Allied victory. Nobody knows what Soviet Russia and its Communist international organisation intends to do in the immediate future, or what are the limits, if any, to their expansive and proselytising tendencies. I have a strong admiration and regard for the valiant Russian people and for my wartime comrade, Marshal Stalin. There is deep sympathy and goodwill in Britain- and I doubt not here also- towards the peoples of all the Russias and a resolve to persevere through many differences and rebuffs in establishing lasting friendships. We understand the Russian need to be secure on her western frontiers by the removal of all possibility of German aggression. We welcome Russia to her rightful place among the leading nations of the world. We welcome her flag upon the seas. Above all, we welcome constant, frequent and growing contacts between the Russian people and our own people on both sides of the Atlantic. It is my duty how ever, for I am sure you would wish me to state the facts as I see them to you, to place before you certain facts about the present position in Europe. From Stettin in the Baltic to Trieste in the Adriatic, an iron curtain has descended across the Continent. Behind that line lie all the capitals of the ancient states of Central and Eastern Europe. Warsaw, Berlin, Prague, Vienna, Budapest, Belgrade, Bucharest and Sofia, all these famous cities and the populations around them lie in what I must call the Soviet sphere, and all are subject in one form or another, not only to Soviet influence but to a very high and, in many cases, increasing measure of control from Moscow. Athens alone- Greece with its immortal glories- is free to decide its future at an election under British, American and French observation. The Russian-dominated Polish Government has been encouraged to make enormous and wrongful inroads upon Germany, and mass expulsions of millions of Germans on a scale grievous and undreamed-of are now taking place. The Communist parties, which were very small in all these Eastern States of Europe, have been raised to pre-eminence an d power far beyond their numbers and are seeking everywhere to obtain totalitarian control. Police governments are prevailing in nearly every case, and so far, except in Czechoslovakia, there is no true democracy. Turkey and Persia are both profoundly alarmed and disturbed at the claims which are being made upon them and at the pressure being exerted by the Moscow Government. An attempt is being made by the Russians in Berlin to build up a quasi-Communist party in their zone of Occupied Germany by showing special favours to groups of left-wing German leaders. At the end of the fighting last June, the American and British Armies withdrew westwards, in accordance with an earlier agreement, to a depth at some points of 150 miles upon a front of nearly four hundred miles, in order to allow our Russian allies to occupy this vast expanse of territory which the Western Democracies had conquered. If now the Soviet Government tries, by separate action, to build up a pro-Communist Germany in their areas, this will cause new serious difficulties in the British and American zones, and will give the defeated Germans the power of putting themselves up to auction between the Soviets and the Western Democracies. Whatever conclusions may be drawn from these facts- and facts they are- this is certainly not the Liberated Europe we fought to build up. Nor is it one which contains the essentials of permanent peace. The safety of the world requires a new unity in Europe, from which no nation should be permanently outcast. It is from the quarrels of the strong parent races in Europe that the world wars we have witnessed, or which occurred in former times, have sprung. Twice in our own lifetime we have seen the United States, against their wishes and their traditions, against arguments, the force of which it is impossible not to comprehend, drawn by irresistible forces, into these wars in time to secure the victory of the good cause, but only after frightful slaughter and devastation had occurred. Twice the United States has had to send several millions of its young men across the Atlantic to find the war; but now war can find any nation, wherever it may dwell between dusk and dawn. Surely we should work with conscious purpose for a grand pacification of Europe, within the structure of the United Nations and in accordance with its Charter. That I feel is an open cause of policy of very great impor tance. In front of the iron curtain which lies across Europe are other causes for anxiety. In Italy the Communist Party is seriously hampered by having to support the Communist-trained Marshal Titos claims to former Italian territory at the head of the Adriatic. Nevertheless the future of Italy hangs in the balance. Again one cannot imagine a regenerated Europe without a strong France. All my public life I have worked for a strong France and I never lost faith in her destiny, even in the darkest hours. I will not lose faith now. However, in a great number of countries, far from the Russian frontiers and throughout the world, Communist fifth columns are established and work in complete unity and absolute obedience to the directions they receive from the Communist centre. Except in the British Commonwealth and in the United States where Communism is in its infancy, the Communist parties or fifth columns constitute a growing challenge and peril to Christian civilisation. These are sombre facts for anyone to have to recite on the morrow of a victory gained by so much splendid comradeship in arms and in the cause of freedom and democracy; but we should be most unwise not to face them squarely while time remains. The outlook is also anxious in the Far East and especially in Manchuria. The Agreement which was made at Yalta, to which I was a party, was extremely favourable to Soviet Russia, but it was made at a time when no one could say that the German war might not extend all through the summer and autumn of 1945 and when the Japanese war was expected to last for a further 18 months from the end of the German war. In this country you are all so well-informed about the Far East, and such devoted friends of China, that I do not need to expatiate on the situation there. I have felt bound to portray the shadow which, alike in the west and in the east, falls upon the world. I was a high minister at the time of the Versailles Treaty and a close friend of Mr. Lloyd-George, who was the head of the British delegation at Versailles. I did not myself agree with many things that were done, but I have a very strong impression in my mind of that situation, and I find it painful to contrast it with that which prevails now. In those days there were high hopes and unbounded confidence that the wars were over, and that the League of Nations would become all-powerful. I do not see or feel that same confidence or even the same hopes in the haggard world at the present time. On the other hand I repulse the idea that a new war is inevitable; still more that it is imminent. It is because I am sure that our fortunes are still in our own hands and that we hold the power to save the future, that I feel the duty to speak out now that I have the occasion and the opportunity to do so. I do not believe that Soviet Russia desires war. What they desire is the fruits of war and the indefinite expansion of their power and doctrines. But what we have to consider here to-day while time remains, is the permanent prevention of war and the establishment of conditions of freedom and democracy as rapidly as possible in all countries. Our difficulties and dangers will not be removed by closing our eyes to them. They will not be removed by mere waiting to see what happens; nor will they be removed by a policy of appeasement. What is needed is a settlement, and the longer this is delayed, the more difficult it will be and the greater our dangers will become. From what I have seen of our Russian friends and Allies during the war, I am convinced that there is nothing they admire so much as strength, and there is nothing for which they have less respect than for weakness, especially military weakness. For that reason the old doctrine of a balance of power is unsound. We cannot afford, if we can help it, to work on narrow margins, offering temptations to a trial of strength. If the Western Democracies stand together in strict adherence to the principles of the United Nations Charter, their influence for furthering those principles will be immense and no one is likely to molest them. If however they become divided or falter in their duty and if these all-important years are allowed to slip away then indeed catastrophe may overwhelm us all. Last time I saw it all coming and cried aloud to my own fellow-countrymen and to the world, but no one paid any attention. Up till the year 1933 or even 1935, Germany might have been saved from the awful fate which has overtaken her and we might all have been spared the miseries Hitler let loose upon mankind. There never was a war in all history easier to prevent by timely action than the one which has just desolated such great areas of the globe. It could have been prevented in my belief without the firing of a single shot, and Germany might be powerful, prosperous and honoured to-day; but no one would listen and one by one we were all sucked into the awful whirlpool. We surely must not let that happen again. This can only be achieved by reaching now, in 1946, a good understanding on all points with Russia under the general authority of the United Nations Organisation and by the maintenance of that good understanding through many peaceful years, by the world instrument, supported by the whole strength of the English-speaking world and all its connections. There is the solution which I respectfully offer to you in this Address to which I have given the title The Sinews of Peace. Let no man underrate the abiding power of the British Empire and Commonwealth. Because you see the 46 millions in our island harassed about their food supply, of which they only grow one half, even in war-time, or because we have difficulty in restarting our industries and export trade after six years of passionate war effort, do not suppose that we shall not come through these dark years of privation as we have come through the glorious years of agony, or that half a century from now, you will not see 70 or 80 millions of Britons spread about the world and united in defence of our traditions, our way of life, and of the world causes which you and we espouse. If the population of the English-speaking Commonwealths be added to that of the United States with all that such co-operation implies in the air, on the sea, all over the globe and in science and in industry, and in moral force, there will be no quivering, precarious balance of power to offer its temptation to ambition or advent ure. On the contrary, there will be an overwhelming assurance of security. If we adhere faithfully to the Charter of the United Nations and walk forward in sedate and sober strength seeking no ones land or treasure, seeking to lay no arbitrary control upon the thoughts of men; if all British moral and material forces and convictions are joined with your own in fraternal association, the high-roads of the future will be clear, not only for us but for all, not only for our time, but for a century to come. * The text of Sir Winston Churchills The Sinews of Peace speech is quoted in its entirety from Robert Rhodes James (ed.), Winston S. Churchill: His Complete Speeches 1897-1963 Volume VII: 1943-1949 (New York: Chelsea House Publishers, 1974) 7285-7293.

Financing of Working Capital and the Money Markets Essay

Financing of Working Capital and the Money Markets - Essay Example [http://www.hnb.hr/financijska_stabilnost/efinancijka_sustav.htmtsfsg=79cfa8abff72343c706696777f2a1c18]. The most marketable money market security available in Croatia are the "Government Treasury Bills" that are issued with the maturity deadline of 91, 182 and 364 days [http://www.mfin.hr/en/public-debt]. The second form of money market instrument used in Croatia is the "Certificate of Deposit" that is issued by commercial banks and available through brokers. Certificate of Deposit is a kind of time deposit offered by banks to corporations, local & state governments, and foreign investors that competes with other instruments of the money markets. It is the mechanism by which banks consolidate surplus funds from entities and lend them to other entities in need of short term funds whereby they make money by charging higher interest rates to borrowers than what is offered to the depositors. Hence banks function as financial intermediaries that are primarily interested to channel money to the customers paying highest interest rates and manage the risk of defaults effectively. They compete in the money markets primarily by virtue of their services and interest rates (McKinney Jr. 1967. pp71-73). In Croatia, the certificate of de... Banks prefer to pool certificate of deposits from smaller investors and lend limited money to borrowers to reduce risk of defaults. Hence, such instruments are used primarily for short term cash requirements by firms. On the other hand, treasury bills allow deposits of large amounts and are also tax free. Firms can purchase treasury bills for as short as 91 days using surplus cash and achieve returns that are realized at the maturity. Given that treasury bills are available through auctions, firms can plan the minimum desirable returns that they plan from the T-bills. Some firms also prefer investing in treasury notes issued by Croatian government. The current accounts held by the firms for receivables & payables does not provide any returns and hence the firms are compelled to invest in such short term highly secured financial instruments in Croatia. To avail short term loans from banks, the Croatian firms avail bank acceptance & letter of credit in which the treasury bills become h andy as they are considered as kind of secured collaterals by the banks when issuing the finance. The difference between interest paid to bank and the return from treasury bills reduce the interest burden on the firms from short term financing. The other form of short term financing popular in Croatia is Commercial Paper. As defined by Nayar and Rezoff (1994. pp1433-1434) that Commercial Paper issues with backup lines of credits from banks ensures higher ratings and hence both are almost always simultaneously used. Moreover, unrated Commercial Papers (without bank's credit guarantee) are subject to negative perceptions and hence are not preferred. Overall, money

Michellamine A ( A natural product) Essay Example | Topics and Well Written Essays - 3000 words

Michellamine A ( A natural product) - Essay Example Structurally they originate, from the acetate polymalonate pathway and not from amino acids 1. They exist as monomeric and dimeric naphthylisoquinoline alkaloids. The monomeric alkaloids which possess a naphthalene-isoquinolene linkage and the dimeric naphthylisoquinolines include the michellamines. The Michellamines comprise two monomeric naphthylisoquinoline coupled together. The Michellamine dimers A, B and C are isolated from the leaves of Ancistrocladus korupensis 1,5,16, 18, 21. These dimeric alkaloids possess highly useful medicinal properties like antiviral and antiparasitic, which are distinct from their monomeric counterparts 13. In addition they also possess several pharmacological, toxicological and antiviral properties such as the inhibition of the cytopathic effects of the Human Immunodeficiency virus which is the major causative agent of AIDS 1, 9, 12, 19. Experiments show that Michellamines A and B give protection in vitro to human CEM-SS lymphocytes against the cytopathic effects of HIV virus (14)20, 21. Michellamine B has been shown to have inhibitory effect on drug-sensitive ,drug- The naphthylisoquinoline alkaloids are exists as both monomers and dimmers. All the monomeric naphthylisoquinoline alkaloids are biaryls containing a naphthalene moiety and an isoquinoline moiety and these two are linked. They may contain a dihydrogenated (this is present in the said ref: 13,) or a tetra hydrogenated isoquinoline moiety 13. The linkage varies between the different alkaloids. There is also a restricted rotation about this linkage and hence these compounds exist as thermally stable atropisomers 1. This is an interesting characteristic feature among these alkaloids. These alkaloids are also unusual on account of the methyl group present at the 3- position and oxygenation at the 8 and/or 6 position of the isoquinoline ring, which suggest that they have a polyketide origin. These alkaloids can be grouped according