Transcript for World Watches and Waits For Euro Rescue
At Dow futures were flat this morning the head of the European financial summit that starts tomorrow. -- joining me to discuss that and the morning's other business headlines Suzanne Halloran. From Bloomberg TV Suzanne thanks for joining us this morning good morning Dan are -- -- -- some information you guys have over a Bloomberg -- is reporting European Central Bank may be announcing plans. To stimulate lending what -- you -- -- you have on. That's right that's exactly right very important what we're hearing from sources within the Central Bank is that they are looking. For ways to shore up that economy Edison be an alternative to the government buying bonds -- really tackle their debt crisis. It is very important because for two reasons it does show that the Europeans are looking at ways to control the crisis that has engulfed -- they European nation. But also does signal that perhaps central bankers are a little bit worried about the eurozone region and perhaps a threat of the deeper recession and more likely to see also we do you have a meeting of the EC -- European summit that is at the end of the week and really what we're seeing today in the US as the markets. Waiting for some concrete news coming out of that meeting a lot of conflicting headlines in the news that we covered today Bloomberg with the ECB potentially looking for alternatives is just another example of that as opposed to those -- -- which I -- France and Germany were not in favor of doing. That not straight and that's something we learned overnight that Germany Angela Merkel say hey now -- we don't want to you support combining. Those funds for example that's slightly -- nine new European markets a selloff. Our market sort of off to a slow start right now but again in US investors are looking to Europe we were talking mechanical part Kenny Perry -- I Kopp I -- this morning -- -- -- and we have one have -- and that's as this one headline that says that it's very difficult to figure out what's going on over there also as you know Treasury Secretary -- is over there. A meeting with a number of European officials trying to you. Get -- to focus on solving their problems in what you have is seventeen European nations and really no -- on the same page silly do you wanna see more. Coming together -- these European nations and perhaps we'll get that the end of the week but we deceptively and seeing someone and -- when -- is he making any progress quickly. You know yesterday was -- land today he's in Paris he's going to be meeting with the Spanish prime minister. Later today and he's -- -- to Italy what we're hearing from and is pretty much an upbeat town he said he is encouraged by what's happening year. And the progress that is -- says simply interesting that he is over there. We've heard the President Obama pretty much said get over there. And help these European it leader is getting together because our economy is essentially Europe's economy and they do lunch or recession that is not good news for the US -- It appears he is making progress over there trying to talk to them one on line saying hey guys we really need to work together and it's really interesting seeing him over there with us. -- lot of pressure on that situation definitely -- stateside Citigroup was announced it's cutting 4500. Jobs of this bank. Has already. Done some pretty substantial downsizing so this extra 4500 is that a surprise there was this kind of part of the plan all along yet you know it's not surprising -- look at it on CNN limits their job this is certainly a tough economy but. This number over 4000 markers is actually not that much compared to Citigroup which has the largest bank in the world it represents about one point 7%. Of the workforce he's job cuts are gonna take place globally a lot of than a proprietary trading we know trading has been for particularly slow. In part because of the European crisis investors afraid to put money to work because it there's just too much uncertainty said not a surprise. Financial terms for example back in America as -- know -- -- 30000 markers. Over the next year to yourself deathly not a surprise and Citigroup's CEO Vikram Pandit is under extreme pressure. To -- the banks smaller he's trying to unload a number of assets you spend. Sort of successful it's not going as quickly as investors -- like that's -- the stock is down 37% this year unfortunately not good news if you're sitting -- employee. IA and you may lose your job but certainly it's something the bank needs to do is just today. Yeah and -- in the other timing of these things obviously never -- dispatcher for the holidays yet even that much more difficult Ellison the banking sector permanent out because GE capital's is that they're going to be planning to start taking online deposits. What's the significance of that. -- this very investigating you know I love covering General Electric because there's such a global barometer area and pretty much what -- they say is -- yes. -- did announce yesterday and -- yesterday that starting next year. They're going to start to take to very GE capital unit which is very largest -- -- finance unit they're going to start to take online deposits and essentially. It's an -- that. Potentially you did Barack head open an account online with GE capital and the reason they're dealing as if they're trying to improve funding for their finance arm. Traditionally -- what they've done in the past -- rely on the debt market and that's why they got into trouble in the financial crisis because landing pretty much throws. So that was a big negatives so this is a way to really improve liquidity GE capital and GE capital is -- GE's largest. Revenue source. So they really need -- get that unit back to where was before the financial crisis and they have made a lot of progress doing that it -- -- imagine a General Electric because. A lot of folks not -- -- they didn't -- -- up profits next year. We'll be better than this year and that's very encouraging because they -- business all over the world a lot of business in year out. Lot of business in China and they are well positioned according to CEO -- and how to handle any disruption and in those economies. GE one of that shoot when those huge companies this is so diversified has its hands are pretty much everything -- -- -- Bellwether definitely. I'm everything down the sentence you Edmonton GE capital is their largest -- -- what -- testing daily news try to build tried to build trying to build up. The other units to sort -- Represent more revenue for example turbines in and help carrying he's actually having success of that and that's actually going to -- -- less dependent on the finance unit. Which is still recovering from the recession he had -- started in an inch interesting to spread the risk around on that. The holiday travel season obviously in full swing right now the airlines you know they're kind of saying the rates things like that they're also looking ahead to 2012. What's the forecast looking mind yet you know the forecast is name is angry this again no surprise he had a global industry. Airline association -- -- say that up profits are gonna be down but it. Nearly forty to 50% -- south. Again not a surprise actually cited the European crisis folks particularly in Europe annie's death. Eighty traveling last that -- actually have some encouraging things to say about the United States he's flown recently emailed that. He's the planes that US airlines are flying are completely full there's not -- room to bring on -- carry on bags out. What the US airlines -- actually help and they -- cutting capacity but we are likely to see. A slowdown in year out. There's so there's still going to be profitable that's very important earning a little over three billion dollars because the airlines during the financial crisis actually lost money. So it's not a great forecast here in the US. -- such as delta are in pretty good shape. We do you have oil at a hundred dollars a barrel that could change the scenario if -- was higher even stays at these levels. And then of course don't forget American Airlines is a perfect example recently declaring bankruptcy. They've been struggling to that story we continue to fall as well in terms of when they'll be able to come back out of Chapter Eleven. And start competing with some of these other healthier -- This story caught my eye JC -- taking an interest in all things domestic all things perfectly domestic Martha Stewart Living. That's it seems a -- a very unusual alignment is an well -- -- time you know what's interesting about JC -- -- they have a new CEO his name's Ron Johnson and the reason now we like to talk about him is he's a former apple guy. He was responsible in part for a lot of apple strategies at the retail level. We -- how successful has happened -- get right so the fact -- JC -- what he's trying to do is basically turn -- the retailer. Still look to Martha Stewart really as their first foray into this area much they're going to be doing -- -- understand. It's treating these many stores to see going to JC Penney me. Having an area that's strictly Martha Stewart you'll get her -- her home goods whenever -- she's -- these states. And that will likely for the people who like her style bring more customers into the stores so it's definitely. And Kristine gamble. Particularly retailers are still kind -- Recovering a bit from the financial crisis particularly the housing market home that -- highway eating. It is now the time to do that you name investigate question but -- this -- this season -- executive and he is trying to. Reid DJC penny and it's going to be interesting to see how that works but clearly it is just need to -- strategic decision and something that may actually help JC -- going forward and Martha Stewart it. Yeah now go ahead. -- -- they can get people into the stories he may killing sabaya Martha Stewart I but then -- be able to you. Get something -- in there as well from another. -- designer -- draw men drawn in with the glitter on the hot glue guns ours is now however from Bloomberg TV that night so much for joining us.
This transcript has been automatically generated and may not be 100% accurate.