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American Airlines, U.S. Airways Announce Merger

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  • Description

    FBN’s Diane Macedo breaks down the stories moving the markets around the world.

  • Duration 4:57
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Imus in the morning.

On the -- Good morning everyone US Airways and the parent company of American Airlines have reached an agreement on a merger that will create the world's largest airline by passenger traffic.

-- from both companies met yesterday to approve the deal under the agreement AMR's bankruptcy creditors' -- 72% of the combined airline which will have a market value.

Of around eleven billion dollars and we'll do business under the American Airlines brand.

US Airways shareholders will own the remaining shares getting one share of common stock in the combined airline for each share of US Airways common stock they currently hold.

US Airways chief executive Doug Parker will run the company as achieved hit the chief executive AMR chief executive Tom -- will serve as non executive board chairman.

Until next year US Airways says the transaction is expected to generate more than one billion dollars in annual net synergies in 2015.

And that -- expected to be completed in the third quarter.

Checking the markets now here in the US we've had red arrows across the board -- morning Dow futures are down 61 the S and -- down.

Almost six points the nasdaq's down about eleven some lackluster GDP numbers out of Europe have market there also to the downside eurozone fourth quarter GDP.

Contracted by a larger than expected point 6% from the third quarter same goes.

For GDP in Germany and French GDP contracted as well we have London now down almost fifty points.

Paris is down about 32 and Frankfurt's down almost ninety points a -- a closer look though what's moving those markets that bill who -- chief economist.

At markets dot com in London bill.

The eurozone suffered its third consecutive quarter of economic decline at the end -- -- twelve and all full or.

Of the region's biggest economies Germany France Italy and Spain also contracted compared to the third -- how do you bounce back from that.

Or very quickly salt -- side point happy -- -- -- Maybe the only happy -- happened today I think what is things that you had three memo.

Is remember in January 2012.

The first meeting of the European Central Bank the -- the press conference missed the Euro zone crisis is over.

As you saw this morning I would call it.

Greater than lackluster it's a very serious problem here what we've seen is a major sell off in the Euro -- things we talked about when the Euro was approaching 137.

That it already added eighteen basis points of tightening in the December contract.

So I think what -- whether it's Super Mario magic Mario it's gonna be quite interesting when the ECB meets.

And march in my previous ECB you'll probably still make one more rate cut in -- second quarter but these numbers are true wake up.

Call and speaking of Valentine's Day -- the European Union and the US seem to be showing each other some love announcing that they're discussing.

An overarching transatlantic free trade deal now many have come out saying this could boost growth boost growth on both sides of the Atlantic so what's the catch.

Well I've I don't think there's any catch at all I think it's quite into -- that -- may be is.

What happens here with the UK because -- we've seen over the last year.

With the Euro except except -- the Euro zone crisis.

The net anti Euro faction is grown and grown and I think mr.

-- already said first in this one he would like to act as a broker so I think it's a phenomenal -- again it has to go back.

How much can Obama convinced the Republicans -- that is a great move not only -- -- global but -- US businesses I think this is.

I mean for me.

I think -- -- -- -- -- I do think it will happen sooner rather than later the -- gonna -- is what currency will renew.

-- the -- there's though the -- I don't I that a bill Mubarak over a markets doubt coming up against the special Valentine's Day plans they'll enjoy yourself.

Back and we're getting earnings in now from PepsiCo the food and beverage company is reporting an adjusted profit of one dollar nine cents a share topping estimates for one dollar five cents.

Revenue came in at nineteen point 95 billion dollars yes meant there was for nineteen point seven billion.

Shares of Best Buy dipped after hours on word that the company's founder is weighing whether or not to did you -- -- plan for that struggling electronics retailer.

According to reports Richard selves -- looking alternative options including lining up investors.

To take a minority stake in the company -- is already best buys largest shareholder with a roughly 20% stake but if -- -- To buy a minority stake -- investors that would be separate from his own personal position in the company.

That's shelf has been working since last summer to find the financing to take the company private he has until the end of this month to make a bit.

Let's take a look at commodities now oil and gold have been -- -- searching for direction this morning we have oil down fifteen cents trading around 97 dollars a barrel.

Gold is up almost three dollars at 1647.

Announced.

Imus in the morning continues right now on Fox Business.

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