silently charging ahead i think it continues. >> joseph. >> sticking with the favorite sector financials. >> okay. >> american express about to make another all-time high. >> all right well see what happens there. thanks very much for watching. that does it for halftime today. the exchange with kelly starts now. thank you scott. hi, everybody here is what's ahead this hour. bank of america ceo brian moynihan joins us exclusively. their push to promote women in the workplace where he sees housing heading and does he think economic slowdown is ahead? we'll ask. plus the lawsuits. a look at the legal costs that could be headed boeing's way and the jourmist that says pilots had been complaining about the plane prior to these fatal crashes. plus snap snapback our apple china problems ending and bring on the beto bucks. all of of the stories in the rapid fire with dom chu and a special guest. >> abilitily doing all kinds of stuff today. such an exciting show. not that it isn't always

but check this out you mentioned snachlt and snapchat parent company. get there in a second. the dow very stable. the s&p 500 right below the 2815 level that all the traders are watching to see if we can get above and beyond the resistance over the past five or six months the nasdaq flat as well. a very stable market for the time being one of the sectors standing out today in trading at least is some of the communications services stocks. you mentioned snap before. also facebook and in the news today. at least the communications services sector issed underperforming food but still upon a month to date basis it's outperforming the market the best performing secretary ner the s&p 500 even though snap is not part of the s&p 500. and check out this our stock of the day, it's dollar general the dollar store in a mixed earnings report. earnings came in worse than expected but sales and comparable store sales better. remember this is a stock that has gone up by about 35% through yesterday's close, only to crop

by you can see here 8% today one of the worst performers in the s&p 500 in today's trading back to you. >> welcome to the exchange everyone i'm kelly evans and weak sign in the housing market new home sales down 7% in january. purchases of homes yet -- homes yet to be purchased plunged nearly 27% u.s. import prices rose more than expected in february as fuel prices surged and toyota announces it will up investments in u.s. plants to $13 billion and add 600 manufacturing jobs let's drill down on today's markets with bob pisani at the new york stock exchange looking at key levels here, bob. >> we are waiting for a break up not happening. the s&p is still having trouble breaking out of the 2,800 range. now we have failed five times in the last six months right where we are right now all five of the six -- all five months last two months here. the good news banks, teching with energy stocks, all cyclicals continue to lead

this continues the pattern we've seen since the december 24th bottom we have straen strength in sectors effect, industrials, communications services and energy the market leaders the defensive sectors like health care, utilities consumer staple are also up but gained less than half that of the cyclicals. after the weak china industrial production numbers which we saw overnight, we can expect more stimulus out of china. maybe that helps stabilize our earnings picture kelly tonight adobe and oracle will be the first large companies reporting first quarter earnings their quarter ends in february if we get deceasant guidance the chance that is the first quarter see negative earnings growth for the s&p 500 currently the case, those chances will be greatly reduce >> great point about the timing. we'll look fwor that bob pisani. shares of boeing lower today and down nearly 11% the past week as more information about the ethiopian airlines crash emerges. contessa brewer with the latest.

>> the data recorder are in paris. investigators are eager to see whether it sheds more light on similarities any see between the lion air and ethiopian air crashes. the black boxes were severely damaged in the crash and require specialize the equipment to extract information. the process of collecting the data has been delayed. now check this chart out the max program expected to account for 48% of boeing's commercial aircraft revenue this year clearly a major contributor to the bottom line. many on the street expect boeing keeping up current production rates of 52 a month. but expect deliveries could be halted with boeing having to carry the inventory until the grounding is lifted. something boeing's balance sheet can handle mm but boeing has lost $25 billion in market cap since march 8. one analyst points lee ricks .1 the expense of implementing the stairs fixes the potential to airlines and

leasing companies who had to ground prans map cory points out hawaiian and alaskan could benefit since southwest planned to use the max aircraft for the new service to hawaii. on the leasing side it's a opportunity for airs castle if they look for short-term mid-fix with short tokyo 737s. >> great point about the hawaii expansion if they don't use the aircraft they use others this is just a side piece of the overall story, though. at this point i'm sure people are going back trying to understand why the announcement came when it did. >> here is what we heard from the faa administrator late yesterday saying we got the satellite data we they came from the flight aware aware and the partner they got the tracking data showing the movement pmt but they said they needed to refine the data. the real question is why did ktd do it on tuesday night and do a quick reverse about face on grounding the planes >> can the u.s. get the black

boxes to read to get the information is that that's in limo. >> they're in paris and the ethiopia is the lead on that with faa supporting the operation. >> contessa, thank you. >> what did boeing know before the planes were grounded when did they know and what could it mean for liability going forward? let's bring in jim broccoli senior counsel with motly rice and former navigate. and kerry as pen withhold a investigative reporter let me begin with you kerry, your story kicked off perhaps the response you saw when you said there were pilots that complained after the downing of the of the first aircraft that there were criminally insufficient flight manuals for the boeing 737 max 8. >> that's right we found the incidents reported in the aviation safety reporting system a database maintained by nasa, not the fa a though the faa has access and the responsible party for funding it and kind of -- the reports can filter through them.

but we found these reports in there. we found at least five we know there might be many others specifically to the max 8 with issues during takeoff where the pilots seemed surprised by how the plane functioned during takeoff, assent portion of the flight and they were concerned that they weren't properly trained on it and that the manual didn't seem to cover it. even when boeing made an update to the manual after the lion air crash last fall, some of the pilots said it wasn't enough. >> wow so, jim, hearing all this, what do you think boeing's liability might be >> well, they have -- i think they have liability on two different fronts one obviously would be the passengers who tragedically lost lives and secondly liability with the airlines because now that the planes are grounded all the airlines have had to take the planes out of service. >> and i also thought, jim it was interesting what you say here that they have often

indemings agreement where if the aircraft have a problem boeing has to pay the airlines. is that right. >> typically when they do a new sales contract many times written into the contract is if there is a technical problem with the airplane where the planes have to be grounded, not only does boeing have to fix the problem but there is some type of liquid eighted damages provision where boeing has to pay the airline a certain amount for the number of days it's grounded and there is other ways that boeing and the airline can come to agreements. perhaps taking discounts on future orders, or working on supplies parts and those kind of things. >> it faces both near-term costs and potentially long-term or bigger costs from this as well kari, what were you able to find out about how unusual complaints might be like this in the database and why it did it take so long for you to discover them even other reporters who tried to find the complaints said it was very difficult to try to do so is there a broken process in terms of how these complaints

are handled? >> yeah, so the problem with the database is that the faa allows them to submit all this anonymously to a degree. they know -- the fa. a has access to information we don't that's not in the database from what we can see the idea was to allow them to submit the complaints anonymously so there is no fear of repercussion, that they wouldn't necessarily be punished for what they report if they had a concern about safety or if they noticed something going on there is all kinds of incidents reported in here for flights that happen every day. the complaints can come from air traffic controllers, ground true crew, flight attendants but the idea is the fa a they want people coming forward with safety concerns they have the system they have nasa maintain the database as a neutral third party. but it's hard to tell the flights don't have numbers associated with them city as exact dates. there is a lag in reporting. we don't even know how many total incidents there might be whenever all the reports finally

appear up until what happened in ethiopia this past week. but there is not a lot of detail to go off. the faa has pushed back a little and cautioned saying these are just you know self-reported incidents by pilots. some of it might be pilot error. we don't nope it's necessarily a problem with the system. and they said that, you know, these wouldn't necessarily have been a heads up to them to look for anything. >> all right. >> i think there are pilots who disagree with that. >> no, great reporting and thank you for joining me jim thank you as well for reporting on the ramifications here let's look at shares of general electric climbing after issuing the 2019 outlook. ceo larry kulp saying the ge aechlt chaelgs are complex but cheer. morgan brennan joins me to explain morgan. >> kelly, that's right g.e. ceo calling it a reset year g.e. expecting industrial free cash flow to be flat down to $2 billion this year to returning to positive trert in

2020 and accelerating in 2021 power continues to be the biggest pain point and ceo larry kulp telling me we will have a greater level of negative cash flow in the business it was negative 2.7 billion last year that's worse thisser year and from there getting significantly better in 2020 and we expect positive free cash flow in 2021. now, g.e. on the investor call today saying health care and renewable face pressure this year also adding that g.e. capital will stop losing money by 2021 but may need more cash next year to fund the insurance liabilities forecasting adjusted earnings of 50 to 60 cents per share but they expect the gps to grow in 2020 and 2021. kelly as you can see investors reacting to this pretty positively stock up 3% because i think the numbers while painful not as bad as feared. >> and what might be the growth areas he is talking about that get them back to that positive figure for 2020 and beyond in.

>> yes, so a key area to watch here is going to be aviation it was a cash generator and area of growth for the company, in particular last year this year going to see a bit of pressure there and kulp saying to me we had 4.2 billion in free cash flow in aviation year on year. we're not seeing a lolt a lot of cash flow dau to transition to leap they have quite a sizable business in terms of defense contracting in the military. talking about that on the call too. >> all right aviation and defense process morgan thanks very much. morgan brennan following shares of g.e be sure to tune in to mad money tonight with jim kramer, g.e. ceo larry kulp joins im? in an exclusive interview beginning at 6:00 p.m. eastern time and here is what else is coming up on the exchange. >> announcer: ahead, we'll speak exclusively with the ceo of bank of america about their efforts to close the gap at work plus, will tumbling mortgage rates juice the housing market

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the etf that tracks about 85% of global equities up double digits this year despite growing uncertainty about the direction of the global economy. we have brexit, the slowdown in china. what it tells us about the disconnect let's bring in kneel ferguson senior fellow at institution jim karen at morgan stanley investment management. and i'm glad you're both here. neal let me begin with you and are equities disconnected from the reality on the ground? or is it possible the global economy will do better than what it looks like certainly in the early days of this year? >> i don't think they're disconnected i think the news media have a tendency to focus on things that are ep i phenomena, not that important. the big story really of this year is the the federal reserve is fundamentally changed the direction, not just the language but i believe the direction. and if you listen carefully to

what jerome powell the fed chair has been saying recently they are moving in the direction of a makeup strategy. they don't mind if inflation goes above target because it was below target for so long i think the media made too little of because 80s paradigm shift in monetary policy under the pressure of the trade yar, meanwhile, the chinese are leveraging up and estimate lating their economy the two largest economies in the world on ease mode i think for that reason it's not surprising that equities this year bounced compared with the end of last year where people were very pessimistic getting into a real panic about some recession that was going to materialize from somewhere wree in different world this year. >> jim would you be agree they're different in nature. can the u.s. change have the fed pro long the cycle and have the right things happen but in china are they pushing on a string. >> this is the debate. how long can stimulus go on. but neal has it right. essentially in 2018 we were worried about the same things.

the difference today is that you've got the fed now changed course so the you've got the second largest economy in the world china easing rates and policy both fiscal and monetary since june of 28 triple r cuts have come down considerably generally takes nine months for the stim laws lus to work through here we are in march china is right now at the point where its forming a bumpy bottom and there could be some recovery here and that could be good for you know the global economy over the next several months. >> i don't understand. how many more -- how many empty apartments does is it have now in how much concrete poured how many steel jobs are they trying to maintain? and also at the same time trying to figure out when there might be the trade deal between the u.s. and china. >> china shifting gears a bit. it's less about credit stimulus and more about tax census he was and investing. that's part of it. but i mean i think you're right. the deal between the u.s. and

china has to have permanence i don't know we need the absolute best deal by the end of the month. we have to be on the right course and the u.s. needs a way to monitor that china is making progress towards that to the u.s. satisfaction. that's the hurdle we have to cross. >> neal, would you say too may be that's why china is interested in opening up to more u.s. financial stupgss if they go that route for example. >> chinese have been trying thgt trade war over more or less since it began last year and they've struggled. it's taken longer than they expected and the thing is they are up against robert lighthizer, the toughest trade negotiate ner the world with experience back to the 1980s. as he made clear going bab to the senate finance committee back on tuesday, he is hanging tough. the chinese were kind of hoping they could get trump to meet xi jinping and be a bromance again. but then they realize you had couldn't rely on trump to do he might walk on xi the way he walked on kim jong un.

>> yes. >> and he got cold feet probably there isn't a summit this month. i think the trade negotiations are by no means over the best case for the chinese is a partial agreement that covers maybe agricultural but it's not comprehensive i don't see lighthizer giving way unless there are big concessions from the chinese on a whole range of issues including state owned enterprises. i don't think there is about to be a comprehensive agreement on trade. i agree with jim on that i think it's a partial agreement. >> yeah. >> and the key will of course lie in the detail on issues such as snapbacks, can the u.s. snap back tariffs if mcis seen not to comply and the chiepz are reluctant to get into a mechanism like that. >> you know, neal we have no time but i have to ask you, brexit, okay what is -- what's the neal ferguson thinking as this plays out as you can help ourp viewers understand what you think the most likely outcome is now. >> well you saw monty python and holy great deal. theresa may is like the black

night insisting 80s flesh wund another go, another vote another meaningless vote because she will lose. with every passing day of every passing week, the further this gets kicked down the road, the lower the chance of brexit actually happening i believe that the brexiters are very close to blowing this and if they do blow it and if brexit ends up not happening they will only have themselves to blame. >> neal, thank you. >> jim thank you as well process wish we had more time neal ferguson and jim karen appreciate it very much. data out today showing new home sales slumped in jarp coming up we talk to bank of america ceo brian moynihan about the housing mechanic, the state of the u.s. economy and the work it's doing to close the rnged jap. >> apple worried behind them we'll talk to one analyst who thinks they are. we tell you why. coming up. like new york! from bus tours, to breathtaking adventures, tripadvisor makes it easy to find and book amazing things to do.

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. welcome back to "the exchange." here are movers this hour. shares of cloud era sinking after reporting a wider than expected loss. the cloud software company also gave a weak outlook for 2019 and the shares down more than 18%. we're also watching the airlines today after the grounding of the boeing 737 planes as you can see, most of the major carriers in the green actually a positive week meanwhile berkshire hathway increased stake in delta which is down fractionally take two interactive in the red after sony denied reports of looking to buy it. they were up 6% yesterday in reaction to rumors

take 2 guy giflg back 3% back to bill griffith for a cnbc news update. >> here is what's happening at this hour. two stanford university students filed what they hope will become a class action lawsuit over the admissions cheating scandal in which wealthy families paid bribes to get children into various schools. eight universities are named in that suit, including stanford, yale and usc nearly 3/4s of american are afraid of self-driving cars. despite car makers funneling the billions of dollars in the technology the triple a survey also found 19% of americans would be comfortable allowing their children to ride at a in a self-driving car. wal-mart getting ready to sberp the world of personal technology, filing an application with the fcc to build and sell its own brand of tablets. no details yet on what the devices will be called or how much they cost. and former senator bertsch bye died the author of two constitutional

amendments including title 9 giving women equal rights on the field and in the classroom senator bye was 91 years old he was a giant on women's rights back in the 70s and '80s long time ago. great guy. kelly. >> thank you, bill great stuff. just about 30 minutes until power lunch and joined by melissa lee to talk about the tesla debut of the latest vehicle. >> as if they didn't have enough on their plate in terms of s.e.c. investigations. it's interesting because the tesla theory goes way on the bullish side or bearish. the bullish side is great it's a crossover unit that everybody wants particularly in the united states great growth for the company the bears though will say, they barely ramped on the model 3 here and maybe this is a sign by pushing the model y unveil that there is waning demand. >> and demand for tesla, all about the growth whatever problems or things they have it's fundamentally desired as a growth company. >> in order to have a growth multiple of you have to have the growth petitions that's the

thing. >> we'll talk tesla. see you then here is what's ahead on the exchange. >> coming up, reit, housing, the market and more. an exclusive with bank of america ceo brian moynihan plus, in rapid fire, a change of heart on snap? beto's big bucks rkgi mke my data, but vee pes. you still stressed about buying our first house, sweetie?

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welcome back let's get you up on a few stories that should be op the radar today. it's time for rapid fire here with takes on john fortt, robert frank and dom chu appear andrew rothman. >> ars himself. >> we have of a ai anchor in new york city. >> andrew comes into the office and i say -- i make you come. >> i'm happy to be here. >> i watch the show. i don't get to be on the show it's great. >> he is looking around stealing the plasmas. >> i love this set i love the show and the zbleet thank you. first up today shares of snap are surging after a new note from btig upgrading to buy from neutral. noting they are set to rally

thanks to better ad shares shares could surge over the next 12 months opinion they have doubled year to date what's going on here. >> i think the issue they got so discounted it's like buying milk duds because they are so cheap not because it's the favorite candy. it's akin to twitter not long ago. it didn't live up to expectations, but people got oh down on it that it became -- >> one of the things they noted this is rich greenfield at btig who never had a buy rating on snap he is a snap hater. but he mentioned in the five reasons why he likes the stock now. he talked about the sticky user base when people talk about the favorite platform he still says there are folks out there who believe in snapchat and like it as the platform. >> but this isn't a story of how like the end of instagram gram and auchlds snap is the taking over that's the thing i think people worry they think something is massively changing >> can they co-exist it's fine

for them to do today and have the user base or do they have to rachest up and addless soles and be in growth moede and all of that. >> they are superfounder controlled in a way that a lot of other companies doesn't they don't have to do anything. just like you have corner hardware stores surviving even with lowes and home depot are running away you can can have lots of companies that groent grow that much not counting snap out. evan spiegel smart guy process they might figure something but thnt this isn't a call on that. >> let's talk about beto it's not beto. he announced the 2020 presidential bid today now o'rourke raise add record $79 million during his failed senate campaign last year. he almost beat ted cruz. this was zpoit not accepting any toongss from political action committees o'rourke showing off the fund raising prowess. he tweeted he are will received donations from all 50 the states and u.s. territories. >> i've been talking to top democratic donors. what's interesting to me are

they in your building. >> no, no. >> on the which town the stairs. >> i was at an event that andrew was at too he is too important he didn't see me there last week but a lot of the top democratic donors there and politicos and it was interesting i thoughted they would be for biden because that's the most electable but any love beto. they think he has the best shot. they think joe in terms of where the big money going we are talking about the little donations but the big donorer was the democrats love him because they think he can win because carrots mat zbliek annie leib wits takes a picture there is a whole thing going on here. >> i talked to two donors who spent time with him reemt because they can they said we weren't expecting much they said we loved him he is really smart really engaging. very chars mattic. >> the interesting piece is he in the center he mass a relatively progressive bent. >> does he or doesn't he.

>> relative to what. >> i was like relative to what beto, beto. >> o'rourke. >> is it beto. >> twos roberto. so beto was -- i think it was beto. >> but he is not latino. you couldn't add him to the panel. >> it sounds like elizabeth warren saying she is not collecting pac moep or anything tp this is the way you differentiate yourself in that field and be more progressive. >> would that be a problem for biden. >> i don't know that's the key you go up against president trump because he is the guy. if you're that person on the other side of the ticket on the left-hand side maybe you have to be more progressive on cloaked as one. >> before we go on what do you think he has the finger on why is he so successful? the fund raising effort why are people from 50 states doaning to his platform >> partly that's it having firm positions and a long track record particularly in congress or the senate, he has a track

record but not long can work against you. he's got in trump-like aura. and i mean that in the sense that his actual positions versus his personal charismatic draw out of sink. the longer he can play that the longer he can provide this field. >> a new study says that skurmt would share data as long a as they get perks or services. >> 80% of consumer he is said they would share more in exchange for gym memberships >> because we are sheep. because we are sheep >> but they are collecting the data anyway people say i want to be paid. >> but andrew you made the point you don't think people care as much about privacy as you might think. >> i think because a lot of hand wringing going on we're always talking about it and we genuinely do care yet if you offer a free service i like facebook or gym memberships whatever they give us people are willing to give it

away i know mr. tech doesn't agree. >> but kelly knows my view i use bing and get grieve for it because they pay me with gift cards and everything else. they do. >> i have to sign up. >> so itching you're wrong i think people do value the data but now they are conscientious of the fact they can get something out of it. >> isn't this what points cards are about? and life is all about this i say this in the sense with real relationships you you give up a bit of privacy to have something else if i invite you over to my house. >> but getting married is not the same. >> it's a marriage kelly it's a relationship with andrew. >> will you marry me here a gift card. >> that these are the banks that have actual replaces with us tracking purchases because they have to. naturally we want something of value in the deal. i think the problem comes when we don't get anything of value in the deal from a lot of the tech companies and we're not even sure what information they're collecting ask me for information i give you information. and i get something i. >> setting chats interesting and

allege brian moynihan come up later in the show in a couple of minutes time and talk to him more about that maybe this lends to apple. shares trending higher on a note from katie hubert she indicated overweight on the shock. saw signs of stabilization for the smartphone marketin china. it's not that bad for apple. >> anybody thinking the iphone was going away was foolish frngly, windows pcs didn't go away even though the pc was dead the iphone is not going away i think it's a danger to pay too much attention to this the real question can apple build a robust services business over time? they have a spotty track record and we will see more. >> we have the big announcement. >> are you excited. >> big day >> it's tv, showtime it's going to be showtime. and it's going to be i use this app my favorite app called texture by they bought about a year ago it's the netflix of magazines they're going to wrap that into this product >> a news stand. >> a paid version of --

>> it's his favorite app. >> my favorite is texture. >> all of this in the context of the greater scheme of the platforms that senator warren is going after and also the eu marguerite vesta guerr pb she says if you even the platform and are competing with others that's not good things. >> bad news for the grocery store which sells their own -- >> i'll tell you the issue the issue is in app purchases that's where the regulators will focus. right now they take a third of not just the purchase of the app but the inapp purchase that makes it more complicate zplood regardless a blow for services which they say is the main thing great stuff guys thanks. heavily discounted. >> dragging it in off the street. >> i'm trying to do it again if that's all right. >> thank you all >> done. >> up next bank of america ceo brian moynihan joins me for a e terview precip touching on tradtax with china to bank execs on the hill.

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the global non-profit catalyst named bank of america as one of its award winners this year recognizing ongoing efforts to support women in the workplace and recognizing the economic empowerment of women in general. three other award winners are at the catalyst conference happening today. joining me now from that is the bank of america ceo brian moynihan thank you for joining me. >> great to be here. thank you for having me. >> and congratulations how did you go from getting 33 process% of women in senior leadership in 44% in three years. >> >> well we leave nothing to chance as we do selection processes and take a look at talent moving through organization and we have a detailed process by every group that reports to me all the way through the -- all the way through to the -- down to the system where we watch to make sure the talent is moving forward on a good basis but it starts from having half

the workforce women and as you promote managers you have the content and numbers of people to continue to increase representation in the management ranks. >> i'm curious how you guys have watched women's careers develop as they have children and then come back to the -- to jobs afterwards does that become a big hurdle? what special ways have you found of helping to manage the careers so women can advance even maybe taking a step back to look after families >> well, we continue to -- provide benefits along all the dimensions in terms of child care, parental care which is becoming a bigger issue and then also what we call off ramp and on ramp. look of this has worked on for years. maintain contact help people come back to the workforce either immediately after the family leave which is 16 weeks or after a few years. and we built programs and those are programs we need to get better at obviously because there is a lot of talent we need to get back into the working

world where there is a shortage of talented people and so we're pushing those systems and building up against over the last two years but it's a combination of all things a benefit you provide. a flexibility to provide the flexibility to for family leave for men and women. and ultimately the on ramp work we do where we basically make ourselves known that we come back in and we'll look at what you want to do and try to find the right jobs for you. >> that's great. what are you seeing in the broader labor market in general, especially you guy haves a lot of staffing at the branch level out there across the country having to constantly look at the pipeline are things too strong? are you seeing wage pressures? what do you see on the ground? >> well stab, start from a couple of basic facts about the company in 2018 we hired 27,000 people from outside our company. and at the same time we reskilled in the language that's used today by providing training capabilities and moving people inside the company to other like amount we have tremendous access to mete view of the markets

the hiring is strong the net head count change is because of job content changes but overly we're hiring a lot of people in the mechanic the people leaving are getting good jobs promotions places maybe the opportunity is not the same here. retiring and other things but it's interesting an play out there. when we look at it overall when the clients tell us the labor markets are tight. wage growth in our company for everybody that would be one, two, three, four times median income or up the last ten years in a row is 6% plus per year in salary and wage growth. >> wow. >> it's very strong. and we started with $15 minimum starting wage almost two and a half years ago now it's a tight market. i'm no different from any other employer out there the good news is we keep bringing people in and training them and getting them ready. and it seems we are able to maintain a talented team. >> what's going on with mortgages lately because last year was a strange one. we had gdp grow but residential investment declined. part of that is new home construction but rates have gone up a bit

mortgage applications wilted are things lacking better in the last couple of woks? what are you seeing? >> well we have seen mortgage activity pick back up. bank of america it's never changing the course of history for us since we changed our position in business we have about 3% direct to consumer market share but the number of application volume has kicked up nicely as rates have come down but back away from just the day to day spot what's depending on in mortgages and volume, the reality is that housing has a lot of investment ahead of it, has a lot of room to run and household information a million plus is solid. i think you'll see housing continuing it's well constructed the financing is there it's not overheated. pricing are moving up. i think that's an area that could extend the recovery. and a lot of people are seeing that when rates rise and people got worried rates flattened out and came down especially the 10-year and obviously mortgage plays off that you saw the expansion there are ebbs and flows every quarter. but generally house something

constructive right now. >> house loan dmanld overall one of the fascinating things is watching the federal reserve ease monetary conditions so much watching the reserves go up at banks and fallout deployed into the real economy because for a while there wasn't loan demand everything ha has been stagnant that's been true lately as it picks up pap how does it loan growth look across industrial and where it was. >> a bit better in some businessing, et cetera you get tradeoffs. but we have driven responsible growth at bank of america. we've been consistent in how our loans have grown i'd say you game from 17, 167, 18 you so you commercial loan slowdown and picked wak up that's good. small business demand which is loans to maybe 5 million under revenue companies of which 40% of bank of america women own just to keep on the theme here today, you see that grow faster more like 9%, 10% and it has self-years we feel good about general loan

demand but it's consistent with the 2 percentage point -- 2 to 2.25% growth maybe 250 better basis points than that. >> that suggests we are moving in a positive direction. one of the things, mr. moynihan, i wanted to ask you about was that story about jp morgan encroaching it says on bank of america's territory expanding into the heart of bank of america country, looking at new markets in charlotte, your hometown, raleigh. greenville, kansas city, nashville what's the company's response >> the company's response is to continue to do what we've been doing the last decade, continue to expand in the markets that we find opportunities continue to fine tune and continue to grow our deposit base and our consumer business. and so you've seen us outgrow everybody in the market over the last three or four years you can look at the data we've we welcome all compellers it's a kmettive industry we have many competitors in alling the markets and our job is just to do better than everybody else.

>> how important is the branch you guys obviously have done a lot with erica to make mobile banking more easy, friendly, accessible for people and so forth. can mobile can my mobile phone supplant my bank branch? and is that better economics for you guy sns are you looking at that as a future strategy? >> it could if you wanted it to. in comes down to customers choice our job is to have a -- a mixed business system which has both the best mobile and digital capabilities we have 36 million digital skers customers. 26 million mobile babying customers. we have 4,200 branchs. 800,000 people come to the branch every day not every day. and so we need to to be excellent in both. we have the call centers to take millions of calls ecalls every year you need to to be excellent at both some customers will do all of one. some customers all of other. but that's the rare tales. the reality is everybody uses

everything and loves having everything that's a good business model that he is which we build in pittsburgh with a quarter million branches already we give them you will the full capability and the inasmus on cleveland and cincinnati and salt lake appear minneapolis we are putting the physical plant because we have a lot of customers who aren't getting the full benefits of the great franchise. >> you are talking about the dirchts parts of the country we know that silicon valley has been strong. nashville has been strong. but where are you seeing the strength and weakness in today's economy? >> it's -- it's solid across the board. and you -- you have lots of experts on a given day that will talk about, you know, the some of the farm areas are -- have been a bit tougherer for people. we're not in them as much. the reality is that there's been a rural to urban move in america. the nature of work has change. but that's a decadeslong process. we feel good about the markets

we're in we don't see any weakness. we see strength in all markets what we see is more strength in some markets the silicon area, nashville, or los angeles, parts of florida, parts of but overalh economy grew nearly 3% last year as best as we could tell we'll see when it finalizes that and think it will grow between 2% to 2.2% this year which is the fastest growth as most of the year since the recovery and we'll take advantage of that >> it's not 3% but finally, what does brian moynihan do for st. patrick's day? >> i do what everybody else does corned beef, cabbage, potatoes, carrots and have a good time with my family >> sounds great. thank you so much for joining me today. congratulations again. >> thank you >> brian moynihan is the ceo of bank of america. coming up, we've got key votes on brexit that are 'll ening right now. weget the very latest on the situation. we'll be back in two

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there to rescue trapped motorists. how about amarillo, texas, where wind gusts up to 75 miles an hour were enough to lift a trailer of a semitruck off the ground and send the entire rig crashing on its side and skidding down the highway, as you can see there. over in south dakota, melting snow and heavy rainfall combined to cause extreme flooding in southeastern parts of the state. rescuers hampered by the rain expected to continue all day today and then followed by snow on friday. even the national weather service struggling with the storm. look at this meteorologist, nearly knocked off his feet while trying to launch a weather balloon in rapid city south dakota he eventually succeeded, although the wind did take one of his gloves. the man in the truck was okay, in case you were wondering. etr nn d, a key brexit vote o whheorot to delay that exit expected in the next hour we'll get you the very latest. stay with us tech sector. it's about technology transforming every sector. ♪

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the uk parliament just rejected a proposal for a second referendum on brexit another key vote is expected in the next hour. let's bring in wilfred frost

>> reporter: none of the amendments tabled by her opponents have passed including that one calling for a second referendum, albeit, that doesn't mean the issue isn't come back in due course. one more minor amendment vote. that's expected already to pass. the government wants it to pass. we don't expect a huge move in the british pound as and when expected it does pass. the key will be in the next few days the next week to see whether the eu grants the extension of article 50, for how long they grant it, what terms they attach, but the main vote, one more small vote due first and then the main vote in the next 20 minutes or so. >> we talked to neil ferguson who thought the longer this process dragged out, the less likely that brexit happens what do you think about that >> i think that's a very fair

point. and the british pounds move from the 126, 127 in terms of year-to-date up to the 132, 133 levels does price that in but not back to the 155s, the pre-brexit one year average which, of course, would really price in expectations that gets overturned what we've seen actually today in the votes is a snapshot of where we stand that is, it's likely we will get mps saying they do want an extension of article 50 which opens up all sorts of possibilities, but today, they also aren't ready yet to vote to say they do want a second referendum yes, the extension of the timeline would be a big step towards overturning the result but still have the hurdles to get over as highlighted by quite comfortably rejected calling for a second referendum yet. >> it's fair to say, it looks like that hard exit of the month is not happening as a result of all this >> yes, it certainly looks like that's not wanted by anyone on either side including a majority

of mps as we saw last night but if as expected, mps vote in the next 20 minutes to look and seek for an extension, the onus is then on the eu to grant the extension. if they don't, we've got 15 days left >> woilf, thanks. wilfred ross i'll be joining tyler and melissa for "power lunch." >> see you in a moment i'm with tyler mathisen. new at 2:00, facebook facing criminal investigation over its data that stock is dropping right now. we've got the fallout ahead. boeing facing major legal problems following the ethiopian airlines crash grounding financial risks facing the company. elon musk taking a bold step into the hottest area of the auto business. will his big bet pay off "power lunch" starts right now >> indeed, it does, melissa. thanks very much welcome, everybody, to "power lunch.