What economic future are markets currently pricing in Essay

What economic future are markets currently pricing in - Essay Example Consistent actions such as quantitative easing in money market, though helped to control the money supply in the market, but it also hinted at the weakening of major currencies of the world also specially dollar. UK’s current debt situation and the debate on it during recent past indicated that there are subtle doubts within the minds of investors that countries like UK can default too. This was mostly due to higher budget deficit and faltering in the credit ratings of the country itself. It has been reported in the Bank of England (BoE) financial stability report that the markets have started to put strain on different markets including the sovereign markets. This clearly indicates the overall sentiments in the market and how market actually perceives the future risks. It has been discussed in the financial stability review of the BoE that the overall conditions are improving for the economy as a whole and the financial system of the country has been able to manage its essential activities. This signifies the slow recovery and stability which is emerging in the financial markets of the country and a such the sign of stability in the financial markets can also serve as one of the important indicators for the improved investor confidence and hence the correct pricing of risk of the assets. Financial stability review also indicates that the financial institutions have been able to cushion themselves against the losses which can erode their capital with the systematic increase of their capital base to meet the Basel II requirements. Thus the overall risk faced due to higher sovereign risk in cases of Greece and Ireland may be easily absorbed by the larger UK firms. (Bank of England, 2010) A closer look at the discussion and data presented in the financial stability report would suggest that the overall market sentiments are not good enough. The increasing level of sovereign risk especially in the wake

Operation management Essay Example | Topics and Well Written Essays - 4000 words - 1

Operation management - Essay Example conomic crunch has made customers to shrink their budgets thereby preferring airlines that charge relatively less than others one of them being Southwest Airlines. This airline is an example to many the world over due to its consistent profitability streak since its establishment. Southwest Airlines is one of the most profitable and respected airlines in the world. It is a no-frills airline having been established in 1971 as a low cost choice for Americans. It has its base in Dallas, Texas and it serves more than 85 million passengers annually (Southwest 2011). Its net income is well over 100 million dollars a year which it uses for expansion and other strategies. During its establishment the airline had only 3 aircrafts but it currently has a fleet of over 500. All these aircrafts are from Boeing and they help the airline to traverse the US skies while serving more than 70 cities (Southwest 2011). Due to its point-to-point strategy it records one of the highest numbers of flights at 3,100 per day. For it to support these services it has employed 35,000 people many of whom are able to multitask in various departments which makes them some of the most highly paid in the American airline industry. Considering the huge customer base and the demand for its servic es, the airline has done pretty well as it currently stands to be the best in customer service in the US airline market. The company management has for decades managed to stick to the low cost initiative by minimising operational costs and improving on efficiency. Unlike its rivals Regional Airlines and AMR, it has all along charged low fares and offered simplicity in its service range. The above information is summed up by the airline’s mission statement which partly states; The Chief Executive Officer Gary Kelly who is also the President is following his predecessors by ensuring that customers receive the best service and utmost attention from the company staff. This has been possible throughout the years