bank of america ceo and chairman brian moynihan spoke to david westin about why consumer strength shouldinto next year. brian: the idea is the economy is slowing down, and could people be assured it would keep going. that was the debate in the middle of 2019. the yield curve inverted, and other things went on, and the worldwide slow down was another thing. whatevert from 2.5% to it ended up being. 1.7 is our estimate for next year. so will it keep slowing down? it was clear that wasn't the case, but everybody was starting to talk themselves into that was the case. then you add into it a couple of major geopolitical discussions going on, and think about it. just in the last four months, you have seen things resolve even know we had something that people said would affect it, which was impeachment. it hasn't changed to the view of the market and the view of growth. that comes down to the u.s. consumer. david:david: we also had three rate cuts from the fed. how much did that slow the decline? brian: i think as the fed said in their minutes, it was about insurance to put a little more accomm

coming up, banc of america ceo brian moynihan discusses overleveraged companies.is bloomberg. ♪ joe: banc of america ceo brian moynihan sat down with bloomberg to discuss a wide range of topics. david westin asked about the leverage portfolio. >> the exposure on your books is relatively small given the size. if you go way back, we have lending the commercial and the lending book on the commercial side. that is how you manage risk. you go back to the question of what can go wrong, we view anything can go wrong. you manage risk by having diversification. when you think about leverage finance, we have always been is, good kid the question other large companies tend to have problems when the world flows down. s 101.s economic we have to underwrite with the debt turns. you here, let's get concerned when the market moves away from findraditional levels to higher levels from other providers. it usually reverberates back. the real concern is, is there too much leverage in certain companies? that happens all the time. the question is, is enough of a market share that will

brian moynihan sat down with our david westin to discuss his outlook for the u.s. economy.s slowing down, and the question was could people be assured that it would keep going. in 2019.te raged the worldwide slowdown was another aspect. we went from a 3% growth rate to the low 2% to whatever it was. the debate was it is slowing down but will it not keep slowing down? it was clear that was not the case. but everyone was starting to talk into that was the case. then you added into it a couple of major geopolitical discussions going on. think about it. the last four months really you have seen things resolve even though we had something that people said would affect it, which was impeachment. that was not the view of the market or growth, and that comes down to the u.s. consumer. david: we also had three rate cuts from the fed. how much did that help slow the decline? brian: i think as the fed said in the minutes and the discussion around this, there is not insurance to put a little more in the economy to make sure that decline and growth rate bottomed out or people thought it

. >>> up next, an exclusive with the ceo of bank of america, brian moynihan later, u.p.s. cvs joining forces for delivery. we'll speak to both ceos and how they're defending against the growing threat of amazon a huge show still ahead. "squawk alley" is back after this quick break >>> welcome back to "squawk alley. let's get over to our wilfred frost, sitting down with a special guest. wilf, take it away. >> jon, thanks so much for that. as you said here at the goldman sachs financials conference. joined by the chairman and ceo of bank of america, brian moynihan. >> great to be here, good to see you again. >> we heard from you this morning presenting at the conference and some other banks are very optimistic about the consumer it seems. talk us through that you have some unique data about how retail sales is going in the holiday period. >> well, you have to start a little bit from the structure and the u.s. economy is two-thirds, 70% consumer driven. so if the u.s. consumer is doing well, we know the economy will do pretty well if you look at our spending just in general l

bank of america ceo brian moynihan sat down exclusively with bloomberg to discuss a wide range of topicsin banking about the banks leveraged load -- david westin asking about the banks leveraged load portfolio. brian: the exposure on your books is relatively small, especially given the size. back, i balanced the company's commercial lending on the consumer side which is a bigger part than the total lending. the traditional underwriting is how you manage risk, when you go back to the question about what could go wrong. we view everything could go wrong or anything could go on. we have diversification and think about it with client selection. it is not necessarily on our books, but the question is over leverage companies tend to have problems when the world slows down. that is economics 101 or credit underwriting 11. we have to underwrite with the right amount of debt turns. you heroes get concerned when the market moves away from the and bind itlevels -- and major financial institutions. we get concerned about that because it reverberates back at some point. the concern is is there too mu

i talked to bank of america ceo brian moynihan about what he was seeing in holiday sales. t the consumer. last time we talked, we were talking about the year-over-year growth rate for consumers being 5.8%. it is closer to 6% now. holiday spending is up double digits from last year through last friday. you're seeing it now for cyber monday, and you will have discussions about how many days there are between christmas and thanksgiving. even halfway through the period, you are seeing the growth rate up at 6%. there's a lot of spending going on. we feel very good about the consumer in the u.s., and that is 2/3 of the u.s. economy. those are big anchors. in europe, the consumers are spending also. it big part of the world economy is solidly moving forward. david: that was brian moynahan, bank of america ceo. still with us are tobias levkovich of citigroup and thomas digenan of ubs. what about the u.s. consumer? it seems to be holding up rather well. tobias: they are. from mr.ne distinction moynahan, actually, real u.s. consumer activity is about 52% of gdp, not 2/3. david: we al

brian moynihan is telling us there is too much leverage through certain companies and they have trouble, it will impact the economy. it comes at a time when direct lenders are doing many of the big deals traditionally handled by big banks. you are working with these firms as partners and they may do financing, but typically, we are more focused on the short-term and how we finance and they are focused. plans to buy wealth management in a 100 million pound deal according to a source. the price won't include a significant premium to the close on friday. no, from either side, and that is your bloomberg business flash. anna: thank you very much leigh-anne gerran , in london with us. next, credit suisse blames it spying case on the same person who took the fall after the first scandal. we will delve into this one next and remember, bloomberg radio is live on your mobile device or dab digital in the london area. this is bloomberg. ♪ anna: welcome back to the european open. 7:41 in london so 19 minutes until the start of trading. it will be a low-volume week. we are expecting weakness at the s

alix: that was brian moynihan exclusively to david westin.ke a look at how this year's best and worst performing stocks in the s&p in today's technically speaking. if you're heading out and jumping in your car, tune into bloomberg radio heard across the u.s. on sirius xm channel 119 in the bloomberg business app. this is bloomberg. ♪ alix: time for technically speaking. joining me is bloombergs abigail doolittle, who in a former life was a technician on the street. you're looking at the best in the worse of the s&p. abigial: a med tech cardio company down 50% on the year. the worst stock for the s&p 500, heading for its worst year since 2002. sometimes those stocks bounce back but this chart suggests there is more work to the downside to be done. we are looking at a tenure weekly chart. you can see the long-term uptrend. the buyers are in control. they love the stock. you can see this pattern started to confirm to the downside, slowing growth and negative letter from the fda and it is still confirming we will see a measured move to the downsi

brian spoke with ceo moynihan just before christmas, he says his bank has been careful not to hold tooon its books, but that leverage loans could pose problems for others in the case of a downturn. brian: the actual exposure on our books is relatively small, especially given the size of our loan book. 's have balanced company commercial concerned lending. that's how you manage risk. when you go back to the question earlier about what could go wrong, we view anything could go wrong, so you manage your risk by having diversification and thinking about the client selection. when you thick about leveraged finance, we've always been very good at business. the question is overleveraged companies tend to have problems when the world slows down. that's economics 101, or credit underwriting 101. so we have to underwrite with the right amount of debt turns and other things. you hear us get concerned when the market moves away from the traditional sort of levels that major financial institutions have further providers. it reverberates back at some point. the real concern is there's too much lever

i want you to reflect on one hand -- brian moynihan.sumer, athe consumption expenditure in five years. the consumer is strong in the united states of america. how strong is it in europe -- in your view? >> before the break you rightly said it took the q3 event to trigger stimulus. there were signs the consumer was starting to crack amidst what was an ambiguously a manufacturing sector, the trade recession around the world. it appears the consumer has won this particular arm wrestle, the key question mark facing investors. with the consumer get dragged down by trade and industrial weakness? they have not. if brian moynihan is anywhere less partisan sources tell us consumers continue to shrug off industrial sector weakness. they appear to now be dragging the industrial economy back out of the red zone, which suggests they have won. -- by if they have won the way, you're able to read record low rates. , a lot of people have said flagging risks for 2020. uoyed.e so b last year we were fraught. going into 2020 perhaps we are low bit -- a lit

jessica: that was brian moynihan speaking exclusively with bloomberg.h markets have just opened. let's get right to mumbai. talk us through what to expect from today's session. how are things looking? we had a pretty good week last week but a little bit of selling coming through today. absolutely. we are looking at a little bit theeakness coming in for indian markets, considering the benchmarks that includes the nifty and the sensex, declining by around 1% or 2%. we will wait for more development. we are not expecting a lot of participation as we move into the holiday season, but that said, for now, there is a little bit of weakness. rupee is the indian concerned, that continues to stay flat. again, waiting for some work used to come through before we make our final, you know, way and direction. quick word on indigo. concerns about the airbus a320. so it is under pressure ofause the director general aviation has suggested it is going to have to replace more number of engines than previously estimated, which means it will now be 130 engines against 200.

bank of america ceo brian moynihan speaking to david westin.f power continues on bloomberg radio. thank you so much for watching. join me at 2:00 for bloomberg businessweek on bloomberg radio. this is "balance of power" on bloomberg television and radio. ♪ what are you doing back there, junior? since we're obviously lost, i'm rescheduling my xfinity customer service appointment. ah, relax. i got this. which gps are you using anyway? a little something called instinct. been using it for years. yeah, that's what i'm afraid of. he knows exactly where we're going. my whole body is a compass. oh boy... the my account app makes today's xfinity customer service simple, easy, awesome. not my thing. scarlet: i'm scarlet fu. this is "etf iq ." tale of two years. etf flows show caution ring for most of the year until risk took over in november. how does that set us up for 2020? we get passive aggressive with the big three. what is fueling the fire of etf adoptions. the holiday season calls for an etf

bank of america ceo brian moynihan is warning of the threat of the stress on the global economy. market closely for signs of strain. in an exclusive interview with bloomberg, moynahan said the best way to handle risk is to focus on debt. down -- he world slows boeing has suffered another blow to its reputation. newftware glitch forced its capsule to abort a mission to the international space station and that is on top of the 737 max remaining grounded. we are joinedis, by our reporter from singapore. boeing. a rough one for what are the biggest challenges for next year? >> the biggest challenge will be to regain the confidence that it lost. they have lost a lot of faith from customers. and the loss of revenue generated from the whole global grounding we have seen since march. that will be the biggest challenge at boeing and for the ceo. we solve this whole mission when it came to the space -- the star liner i should say. it really was a dead. when it comes -- it really was a dud. is airbus taking advantage of the situation? >> since the grounding of the 737 max happened, orders f

ceo of bank of america, brian moynihan, will join us in just a few minutes on "squawk alley." t to bussreliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second man) virtualize their operations. (woman) and build ai customer experiences. (second woman) we also keep them ready for the next big opportunity. like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. >>> welcome back to "squawk on the street." i'm dominic chu. markets largely in a holding pattern ahead of that big fed rate decision later on this afternoon. we are keeping a close eye on the consumer discretionary sector, as you can see here showing a bit of weakness. one of the big laggards as we head into the all-important holiday shopping season. as if we look at one of the etfs that tracks retail names, we see big movers to the downside the worst performers out of the s&p 500, you've got children's place, gamestop and abercrombie and fitch. american eagle another big laggard after forecasting

. >> earlier today, i spoke with brian moynihan, chairman and ceo of bank of america about the way techedly threatening his usiness, he outlined how with a big scale is a big bonus for bank of america. >> mainstream competitor, we study everybody. get scale out of our investments. 29 million mobile customers. the ability to get the ability to have the natural brand. have a natural franchise first started, now you can have that our ability to go in a place like denver, which we did four, five years ago, get to number eight position, with an average branch size is because our national brand leads us. competitors have to think about that we are growing organically at a faster rate in terms of activity than we've rfr grown at this particular time. having a company that had to go through the early part of my tenure, early part of the decade and restructure it. >> the stock up today. comes off the back of encouraging comments, consumer, outlook on trade four, the markets come into this already, jp morgan in particular are trading at premiums relative to their own history on their earnings mul

and tomorrow we've got a couple more interviews from the likes of brian moynihan, kusung lee and howard marcus aks and john d ron. i've never seen such a different tone and that's not because corporate sentiment has worsened since, c'est, the summer. if anything, it's fractionally improved or stayed flat, but the u.s. consumer sentiment has improved significantly wells fargo, pnc, jpmorgan all striking that tone and it's definitely an optimistic one that despite some other challenges, maybe the yield curve or some other things, they're able to reiterate ghirns ftheir guidancr this quarter and next year and the banks have performed very well over the next couple of months and they're holding that ground today. >> we have some big interviews coming over the next two hours, as well. so wilf, we'll see you soon. thank you. >> see you then. >> let's send it over to mike santoli for today's market dashboard. mike >> morgan, going to follow wilf's lead right there with our first installment here it is a bank run, but the good kind of run in bank stocks we'll put some numbers on that and is eve

brian moynihan telling us there is too much leverage in certain counties. are doing the deals traditionally handled by big banks. >> you are working with these firms as partners. typically they are doing a different tranche, so we are focused on the shorter-term revolvers. >> that is your bloomberg business flash. guy: thank you. says regulations have brought a new danger, illiquidity. she spoke with francine lacqua in london and spoke about globalization in 2020. into 2020, we talk about a potential deal between china and the u.s.. if that does come to the full, that will be helpful. i think that will be helpful. , was the u.k. leaves the eu at the end of january, at that moment the u.k. will be in a position to negotiate new trade deals and have imperatives to do that. after a little bit of difficulty that it goes more positively up the agenda. >> how difficult is it for markets to navigate volatile political events? >> the challenge is not the volatility, per se, and the frequency of geopolitical events, but every single year in year there hasy been geop