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American Airlines Files for Bankruptcy

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  • Description

    FBN's Dennis Kneale breaks down details of the second-largest bankruptcy on record.

  • Duration 1:53
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This is the time -- -- the morning program on the Fox Business Network.

-- -- -- Good morning every -- American Airlines and its parent company AMR have filed for Chapter Eleven bankruptcy protection.

The airlines says it's taking the action in order to change its cost and debt structure.

The company has listed assets of almost 25 billion while liabilities totaled 29 and a half billion dollars.

Earlier this -- I -- -- repeatedly defended itself against speculation of an impending bankruptcy.

And the company stressed it had no plans to restructure in court.

But American Airlines was the only major carrier not to turn a profit last year and it looks set for another full year loss in 2011.

The company also announced that Thomas Horton has been named chairman and CEO.

He'll replace -- out our pay rather who is retiring the company says it expects to continue with normal operations.

FaceBook may soon be going public according to the wall street journal of social networking web -- is inching closer to an initial public offering.

With hopes of being valued at more than 100 billion dollars the journal says the website is targeting an April to June 2012 timeframe.

And is looking to raise ten billion dollars in its IPO in what would be one of the largest offerings ever.

CEO Mark Zuckerberg reportedly owns about two point -- percent of the company.

Which of course means if FaceBook listing values at 100 billion dollars up -- share would be worth 2.4 billion.

Consumers seem just as excited -- hit the web on Cyber Monday as they were to hit the stores over Black Friday weekend.

According to data from IBM benchmark online sales were up 18% from a year ago.

While sales from mobile devices rose by seven point 4%.

Web sites operated by department stores were among some of the day's biggest gainers.

IBM smarter commerce -- said sales at Macy's Nordstrom and similar retailers were up 39%.

As of Monday afternoon Cyber Monday sales are projected to total around one point two billion dollars.

Up one billion from last year.

And earnings that Tiffany rose 63%.

In the third quarter on higher global sales.

The luxury retailer reported a profit of seventy cents a share that topped the 61 cent estimate.

Revenue came in at 821 million that also beat analysts' expectations of 803 million.

But while the company raised its profit forecast for the year its outlook for the current quarter as shy of Wall Street expectations and that has shares lower in -- premarket.

Taking a look at the markets now futures have been in the Green all morning.

They still there's still there but off earlier highs Dow futures are up by forty points meanwhile over in Europe.

It really solid.

Ten billion dollars in three year and other government bonds that -- -- high yields this morning.

That had markets up but a new outlook for the UK economy from Britain's treasury chief is starting to turn things around there we -- -- London is now down about eight points.

Paris is up just three and Frankfurt is up.

By about 1415 points now turning over to the European markets and taking a closer look at what's moving them let's go to nick Hastings senior correspondent with Dow Jones Newswires -- It's -- bond auction helped boost -- but now it seems its outlook for the UK economy -- taken the wind out of their sales a little bit.

Now he's currently addressing parliament right now what do you make of the reduced forecast by Osborne and this increased tax on the bank.

Well I mean I think that's basically what most people were expecting head that you that he was being -- how to come out with something traceable funds because it isn't that that is the big hole essentially in the deficit.

It was going to be bigger than -- actually X anticipated not only have things been announced yet.

Before this government came into power and put the austerity program and place but also because of Europe the whole -- is not gonna be extended.

Because you know there are so many uncertainties over what's gonna happen with the Euro we just look at the result economically this morning as you said you know you wrote you -- highs but Italy.

On well over seven -- -- sent.

Actually paying puts -- will attend their money which is you know unheard of and unsustainable and they can't continue like this.

And they quickly we have that eurozone finance ministers meeting coming up what can we expect.

Well there -- a couple of things that everybody's hoping for as well yes they probably will say that we can go ahead and get Greece can go ahead again and then next trucks.

Great I think most people expect that.

But I think people are hoping praying that something a little bit more concrete will come -- the extensions of the EFSF.

Ways they can actually is sort that the European banks actually survived.

-- hoping for that -- this meeting but having said that I think these markets like it'd be disappointed once again.

When ever have the politicians.

Ever come up with anything -- surprised the markets it's always that incremental -- and that's not what we're seeing and I think that's what's gonna happen nothing.

Very exciting out of Brussels and the -- I think will eventually -- once again more investors will pour out of view as a.

-- -- -- -- -- -- -- -- Here's a look at commodities -- now oil and gold are up across the board Imus in the morning continues right now on Fox Business.

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