Transcript for Staples To Restructure, Housing Price Rise
-- hello everyone I'm Tanya Rivero in New York we have some breaking news at this -- staples the office superstore once run by Bain Capital. Is restructuring and turning now to discuss the top business headlines at this hour is -- task. Editor in chief of Yahoo! finance where he also -- the daily ticker Aaron good morning great to see you. Doing time. -- -- would be announcement this morning at staples is restructuring what are you hearing about the plan and you see this is becoming an issue in the election given the company's history with Iraq. Well I certainly think the Democrats hope will want to make it an issue Mitt Romney has has talked about and rightly so. This strain the staples as one of the companies that being helped build -- new jobs created but when you bring it up -- a positive thing any sort of negative could come back to bite you. And the of the company is cutting back I mean there's there's no doubt about it there there's too many stores. You know more of -- are shopping online and -- shopping for different things and they don't have the kind of electronics that in big ticket items that that most people are into these days they -- -- apple products of say it. On her head so they're they're cutting back here in the cutting back in Europe too so it's it's a tough day for staples for sure they're no longer associated with me I'll crack. -- -- -- and and again you know it's a -- -- ancient history for being and for Mitt Romney right. You know he's he's brought it up and so I'm sure in the stated everything is subject. Thirteen minutes I'm sure this will -- -- Absolutely -- -- of have to wait and see what happens there now the case Shiller housing index. Came out at nine reports of housing prices were up one point 2% in July so. We talked about this before but this is another sign perhaps that we're in the middle of a genuine housing recovery. Yeah I think it's pretty fair to say we are in recovery for housing and I think what's interesting is now it's certainly become a regional. Moving again and I think you know you go back before the of the bubble that was like and housing it's all very local amid -- national housing boom national housing bust. We've had a recovery and now we're seeing. In that. The places where that got hit the hardest like Phoenix and Miami there now bouncing back -- strongest. Whereas other places like New York City. The market's soft Carolyn because we never really had the big bust here right so phrases here may be sold at elevated so it's starting to become again a regional thing which is healthy and overall yes we're seeing some signs of a strange. So those sand states -- they call them even those states there are. Showing some strength which is good to hear -- Again coming off a huge drop right that they felt the hardest and now they're bouncing back but the good news is -- bouncing right and that's a positive thing. I'm mistaken want to get there but that's where more -- that we're seeing it that in the really depressed area. Right are -- also do added ten new numbers on consumer confidence. What will you be looking for there and -- the blockbuster sales of the iPhone 5 say anything about where this number might commit. Well it isn't a question I think he you know you talk to most people are -- things are tough they don't have a lot of confidence. And their jobs if they have a job obviously people -- out of work there -- lot of confidence right now but. The American consumer its spending on autos has been strong we've just -- -- the housing market that's obviously huge ticket -- doing better. And that iPhone 5. People are lining up to spend money on a phone that's it's a great product but it's everywhere. Revolutionary thing like oh my gosh what is this new device we have here right so yeah I think the consumer -- Summers will be pretty strong enough and I'll also note that. Historically speaking consumer confidence tracks the stock market the stock markets had -- -- a couple months I think his numbers today and in pretty good. But do you think so that the consumer spending could become a little bit more targeted in the sense that. We've seen some softness in the luxury market so maybe people are saying you know what. I'm gonna spend some money but I'm gonna be a little bit more specific and smarter about where its management by car -- be put into my house and maybe save up for the iPhone five's full stop. You know -- lives. I think people are definitely being war. Smart about their money more discreet about what they're spending their money and I think we've received a luxury and is a lot of that is being driven by what's going on in Europe. And in China to be a wealthy people. In both Europe and China had taken of a big hit in the last year or so because what's on the property markets there is overall economic activity. And that's where a lot of the luxury retailer like a burglary or Tiffany -- that's where they see a lot of their sales and that's why there's some softness there and I think the reality is is. If things are a little bit better for the average American we have job growth it's not -- -- there have been job growth people have paid down their debts of the last couple years and our feeling a little bit. More confident and have more ability to spend. And then if you've been able to refi your house your feeling even more confident right. So so there are some there certainly is not gangbusters and people are going on spinning like crazy but people are feeling a little more confident. That they can spend and the things that they feel they really need to spend money. And that includes an apple products don't. That. Clips you -- All right out -- Keller interestingly is lowering its outlook for -- that -- and we can all remember. The big buzz about emerging markets and everyone wanted to buy -- tractor equipment from the US is that softening now. It's definitely -- Thing in and again you know -- slowdown in China is a big big factor here China. You know huge building -- going on there that's good for caterpillar. China also a huge consumer of commodities from all over the world and when China when their demand starts to slow. You're seeing mining activity all over the world. Starting to you. Come back in and that hurts demand for Caterpillar's products I think -- things are tight -- when he fifteen. There were worried you know this is a couple years down the road -- -- seeing signs of softness or at least that's what they're expecting. And so. The thing that worries me is that maybe we're just starting to see the beginning of this -- global economy that's -- -- -- concern. What other emerging markets that -- were they doing business and India Brazil or was it mainly China. Absolutely all over the world that really China was was it being. Driver of a lot of the activity that was going on in places like Brazil China and Brazil huge trading partners there and so when China slows down. And -- as being effective I was going on in Europe obvious is it in its global economy's very interconnected but. You know what's the -- in China is definitely affecting other emerging markets where China is either the biggest purchaser of their products or the biggest biggest source of their demand. And so China -- and it is a very very big issue for the global economy no doubt about it. Our operates. One local and talk American Airlines and the NFL what you may ask -- these things happened -- very different than. Now what do -- account. -- dealing with labor disputes right now Aaron. And -- nothing like canceled flights at or replacement refs making bad calls -- these two things making lasting impact on these businesses. Well you -- the labor issues it's a big deal and you know again he -- often tied it Chicago teachers' strike teams are. The other deals with the unions or lack of it can be a big problem. I mean NFL obviously gets a huge business. And it's it's entertainment. American Airlines unity of safety concerns you have BO business if people can't travel for business that could hurt business hurt the economy. It's really begin with going on American Airlines you're started -- this brown out where pilots are calling in sick or. Just before the -- about to leave their citing these sort of minor issues. And say we can't fly because -- -- a maintenance concerns. Could signal the end of the company -- because -- people right now are saying you know what I don't wanna fly American I don't wanna Biden ticket. On an airline may not get me where I'm going. -- I wonderment that -- we actually we expert here in here yesterday from China -- are talking about this very same thing the bottom line is that most people. If you're going to search online for played any seen American Airlines -- and it's gotten. In the best fare for you of the times you wanna fly and its direct -- -- probably get. You know. I don't hold your nose or whatever and still buy that ticket. Now if you ago and you get canceled you may not go back the next time right and so that this thing is this is still a new phenomenon offer for American. And right now of people -- there's more complaints about united. We just had some some problems -- its booking system things like that -- are about American if it goes on for a couple weeks. And if it was on to that into the holidays it's a huge issue. But right now yes they still think it hasn't really affected enough. People right. You burn anyone -- the ones you burn it reminds -- I -- picking up -- -- currently -- -- Miami -- are headed our -- take one more look at the -- right now before we let you -- it's up about 24 points this morning. Aaron task now is a pleasure.
This transcript has been automatically generated and may not be 100% accurate.