U.S. Morning Call: AMR, U.S. Airways unveil $11bln merger
Wednesday, February 13, 2013 - 03:28
Feb 14 - American Airlines and U.S. Airways said they plan to merge in a deal that will form the world's biggest air carrier.
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Did your morning conference Thursday the American Airlines and US Airways deal finally ready for take off. Sources say that to board separately the eleven billion dollar merger which will be announced later today. Under the all stock deal Americans creditors would -- 72% of the combined airlines and US Airways shareholders the rest. Wall Street analysts say that a marriage of the two carriers is the best shot reversing their fortunes. The airlines are seen as too small to compete against the delta or united and too large to be as nimble as jetBlue. Looking at past data mergers have helped airlines cut -- to gain more I think power boosting industry profitability. Now what you -- -- in the coming months as the DOJ examining the deal and asking airlines to sell some groups that overlap. Taking a look at US Airways stock this morning it's up slightly in the premarket. Investors have been enthusiastic on the potential merger this past year shares up 57%. Since spring 2012. The deal is expected to generate more than one billion in annual synergies by 2015. Next up we've got earnings in GM the auto maker completing its second here as a public company. Following its bankruptcy restructuring and fifty billion dollar bail out. Analysts expect the company's profits almost doubled to fourteen and a half billion which could easily topping it all time record profit of seven billion in 2011. Investors will also focus on how the company's money losing -- business in Europe is performing and whether China where GM as a market leader remains strong. CBS reports after the market closed analysts may ask management about any new plans for publishing division Simon and Schuster. The network also struck a deal with Amazon yesterday to provide its programming as a competes -- more web news. A story out of Milwaukee journal this morning reporting hedge fund investor George Soros made about a billion dollars betting against the yen he's not alone either. Investors David Einhorn in third points Daniel Loeb also made big trading profits by writing the yen down. The currency lost nearly 20% against the dollar between November and early February picking -- SP is Japan's new government push to ease monetary policy. The journal also reporting came -- capital management's Kyle bass made a huge profit -- against the yen. Our own Rhonda schaffler asked him where he saw the currency going -- -- game hedge fund conference last month. I think the yen weakened. Significantly. What does that mean it's in the means north of 200 in the end to the dollar -- it under it. I think we have to realize this when your jets -- 24 times -- central government tax revenue. And you have a secular decline in population and all of the things are finally catching up to you. What happens when you have a debt crisis -- your currency collapses. Japan's economy unexpectedly contracted in the fourth quarter the third quarter in around. Keep an eye out for the thirteen F filing today for more insight into the Smart money has been placing its bets. Taking a look at US stock features this morning they're pointing to losses at the open. On the data front we've got initial jobless claims expected to clock in at tableau over the past week. At 360000. That's different Thursday morning caller remember to follow us on Twitter at Reuters Insider and get more Reuters videos. -- letters dot com slash Reuters TV. I'm Lisa Bernhard this is right.
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