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☆ Americans are spending record amounts at casinos and airlines — but recent warnings from Amazon and Apple suggest the party may soon be over
▼ + stars: | 2022-11-03 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

Despite inflation, Americans are still shelling out at casinos, airlines, and restaurants. In October, both American and Southwest Airlines reported record operating revenues for their respective companies in the third quarter. Following "record summer leisure travel demand," consumers continued to hit the skies in September, Southwest CEO Bob Jordan said. A Deloitte survey of nearly 5,000 Americans found that Americans plan to buy 44% fewer gifts — an average of nine versus 16 last year. "Spending should slow down significantly with the holiday hangover and as savings continue to dwindle," RSM economist Tuan Nguyen told USA Today.

☆ US economy seeing a 'mitigation' in growth not a slowdown, says Bank of America CEO
▼ + stars: | 2022-10-28 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

The U.S. economy is experiencing a "mitigation of growth" but not a slowdown, Bank of America CEO Brian Moynihan said Friday. "If you raise rates and slow down the economy to fight inflation, the expectation is you have a slowdown in consumer spending. "You're seeing a mitigation of the rate of growth, not a slowdown. Bank of America expects the Fed to hike rates by 75 basis points and 50 basis points at its two remaining meetings this year, followed by two 25 basis point hikes next year. Economists, politicians and business leaders are split on whether the U.S. economy is heading for a recession or is already in one.

☆ 'I don't lose sleep': Bank of America CEO isn't worried about financing the Twitter deal
▼ + stars: | 2022-10-28 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +1 min

The CEO of Bank of America , one of the financiers of Elon Musk's Twitter takeover, doesn't appear worried about the deal. In an interview with CNBC on Friday, Bank of America CEO Brian Moynihan, seemed unfazed however. When asked if he would lose sleep over the deal, he said: "I've got experts that handle the clients and I don't lose sleep on them. I lose sleep for a lot of other things, but not for that." When the acquisition closes, the funds will be handed to Musk to finance the deal.

☆ U.S. consumer spending seeing a 'mitigation' in growth not a slowdown, says Bank of America CEO
▼ + stars: | 2022-10-28 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

U.S. consumer spending is experiencing a "mitigation of growth" but not a slowdown, Bank of America CEO Brian Moynihan said Friday. But he stressed that consumer spending remains strong. "If you raise rates and slow down the economy to fight inflation, the expectation is you have a slowdown in consumer spending. "You're seeing a mitigation of the rate of growth, not a slowdown. One basis point equals 0.01%.

☆ Bank of America CEO: Seeing a 'mitigation' of growth, not a slowdown
▼ + stars: | 2022-10-28 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of America CEO: Seeing a 'mitigation' of growth, not a slowdownBrian Moynihan, CEO of Bank of America, discusses the liklihood that Europe and other major economies are entering a recession.

☆ Bank of America CEO says he doesn't lose sleep over Musk's Twitter deal
▼ + stars: | 2022-10-28 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of America CEO says he doesn't lose sleep over Musk's Twitter dealBrian Moynihan, CEO of Bank of America, discusses the bank's involvement in financing Elon Musk's $44 billion Twitter takeover and the wider landscape for corporate dealmaking.

Bank of America CEO Brian Moynihan will give an exclusive live interview on CNBC's "Squawk Box Europe" at 8.00 a.m. London time. The bank released its third-quarter earnings on Oct. 17 and stressed that the resilience of the U.S. consumer was a reason to lower concerns for an economic recession. You can watch the interview live on CNBC here. — Hannah Ward-Glenton

☆ Overwhelming workloads, back-to-office complaints, and frustrations over pay: Why Merrill Lynch's support staff is leaving
▼ + stars: | 2022-10-26 | by ( Rebecca Ungarino | Hayley Cuccinello | ) www.businessinsider.com time to read: +13 min

Less visible, though just as much the lifeblood of the firm, are Merrill's client associates. But we're not treated that way, and we're not stupid," an associate who recently left the firm said. "Our client associates are essential to the fabric of the firm, how we serve clients and grow," a company representative said. Yagyaev said client associates were "grossly underpaid" across the industry and their base should really be in the area of $80,000 to $90,000. An advisor who recently left Merrill and worked with CAs said some were leaving for raises of about $30,000 to work at other banks.

☆ U.S. consumer is soldiering on despite soaring inflation and recession risk, credit card giants say
▼ + stars: | 2022-10-21 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

The company said overall customer spending jumped 21% year over year, driven by growth in goods and services as well as travel and entertainment. "Card member spending remained at near-record levels in the quarter," American Express CEO Stephen Squeri said Friday on an earnings call. "We expected the recovery in travel spending to be a tailwind for us, but the strength of the rebound has exceeded our expectations throughout the year." Bank of America isn't experiencing any slower growth in spending either, despite inflation having reached historic highs. "Analysts might wonder whether the talk of inflation, recession and other factors could [result] in a slower spending growth," Moynihan said Monday during a conference call.

☆ Jeff Bezos is the latest to warn on the economy, saying it's time to 'batten down the hatches'
▼ + stars: | 2022-10-19 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Amazon founder Jeff Bezos has become the latest corporate leader to warn about the state of the economy, cautioning that rougher times are likely ahead. "Yep, the probabilities in this economy tell you batten down the hatches," Bezos said in a comment attached to a clip of Solomon's "Squawk Box" interview. Solomon, the head of the Wall Street financial giant, said it's time for both corporate leaders and investors to understand the risks building up, and to prepare accordingly. Solomon spoke after his firm had just posted quarterly earnings results that beat Wall Street estimates. Moynihan acknowledged that the Fed's efforts could slow the economy, but noted that "the consumer's hanging in there."

"There's a reasonable chance of a recession in the U.S., but it's not certain," Solomon said on Tuesday after the company released third-quarter earnings. "Fitch expects the U.S. economy to enter genuine recession territory — albeit relatively mild by historical standards — in 2Q23." David Solomon, Chairman and CEO of Goldman Sachs, speaks at the 2022 Milken Institute Global Conference, in Beverly Hills, California, U.S., May 2, 2022. "Private equity activity gets reset at a time like this because values have to come down because financing costs have gone up," he said. "So there's been less private equity activity right now."

☆ Bank of America CEO’s Optimism Defies Economic Gloom
▼ + stars: | 2022-10-17 | by ( Ben Eisen | ) www.wsj.com time to read: 1 min

High inflation and rising interest rates haven’t done much to weaken the health of the American consumer, Bank of America Chief Executive Brian Moynihan said Monday. The company’s data show that spending growth remains strong in terms of both amounts and number of transactions. Americans are spending in particular on travel and entertainment, which tend to be discretionary items. Deposit balances remain higher than prepandemic levels by multiple times and delinquencies remain low.

Oct 17 (Reuters) - Bank of America Corp (BAC.N) on Monday reported a smaller-than-expected 9% drop in quarterly profit, as its interest income was bolstered by rising interest rates that offset a slump in investment banking. BofA holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates. "Consumers remain resilient," Bank of America Chief Executive Officer Brian Moynihan told analysts on a conference call. The bank, however, added $378 million to its loan-loss reserves as it braces for a weakening economy. Citigroup Inc (C.N) wrote down $110 million on leveraged loans in the third quarter, down from $126 million in the previous quarter.

Bank of America holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates. Its net interest income jumped 24% in the third quarter. JPMorgan Chase & Co (JPM.N) Citigroup Inc (C.N), and Wells Fargo & Co (WFC.N) also saw their net interest income rise in the same period. read moreThe bank's leveraged loan losses were lower in the third quarter than in the second, Borthwick said. Peer Citi also wrote down $110 million on leveraged loans in the third quarter, down from $126 million in the previous quarter.

The second-largest U.S. bank added $378 million to its loan-loss reserves as it braces for a weakening economy. The U.S. Federal Reserve's aggressive monetary policy actions to tamp down inflation have sparked concerns that the economy could slip into a recession as interest rates rise. The bank's consumer business reported a 12% jump in revenue, helped by higher balances and a rise in interest rates. Investment-banking fees fell 46% as global dealmaking shrank for the third consecutive quarter after a blockbuster 2021. Net profit applicable to common shareholders was $6.6 billion, or 81 cents a share, for the quarter ended Sept. 30, compared with $7.3 billion, or 85 cents a share, a year earlier.

☆ Current consumer environment is quite strong, says Bank of America CEO Brian Moynihan
▼ + stars: | 2022-10-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCurrent consumer environment is quite strong, says Bank of America CEO Brian MoynihanBank of America CEO Brian Moynihan joins 'Power Lunch' to discuss the company's performance this quarter, its plans to initiate stock buybacks in Q4 and the bank's readiness for a recession.

☆ Bank of America CEO says latest spending and savings data show that the U.S. consumer is healthy
▼ + stars: | 2022-10-17 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Consumers are financially resilient, despite high inflation and concerns the U.S. is nearing a recession, according to Bank of America CEO Brian Moynihan. "Analysts might wonder whether the talk of inflation, recession and other factors could [result] in a slower spending growth," Moynihan said Monday during a conference call to discuss third-quarter results that topped analysts' expectations. Customers' account balances remain higher than before the coronavirus pandemic struck in early 2020, Moynihan said, indicating that they were in a good position to continue spending. That is especially true for those who had the smallest balances, which were about 5 times higher than before the pandemic, according to a Bank of America chart. "We're just now seeing [a] gradual move off these lows in early-stage delinquencies; late-stage delinquencies are still 40% below pre-pandemic," Moynihan said.

☆ Watch CNBC's full interview with Bank of America CEO Brian Moynihan
▼ + stars: | 2022-10-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Bank of America CEO Brian MoynihanBank of America CEO Brian Moynihan joins 'Power Lunch' to discuss the company's performance this quarter, its plans to initiate stock buybacks in Q4 and the bank's readiness for a recession.

☆ Moynihan has done an excellent job of de-risking Bank of America, says KBW's bank analyst, David Konrad
▼ + stars: | 2022-10-17 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMoynihan has done an excellent job of de-risking Bank of America, says KBW's bank analyst, David KonradDavid Konrad, KBW's large cap bank analyst, joins 'Power Lunch' to discuss Q4 forecasts by Brian Moynihan, the likelihood of a Fed pivot later this year, and when to expect a net interest income peak.

☆ Bank of America tops estimates on better-than-expected bond trading, higher interest rates
▼ + stars: | 2022-10-17 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Bank of America said Monday that profit and revenue topped expectations on better-than-expected fixed-income trading and gains in interest income, thanks to choppy markets and rising rates. Here are the numbers:Earnings: 81 cents vs. the 77 cents a share estimate of analysts surveyed by Refinitiv. Bank of America, led by CEO Brian Moynihan, was supposed to be one of the main beneficiaries of the Federal Reserve's rate-boosting campaign. Bank of America shares have fallen 29% this year through Friday, worse than the 26% decline of the KBW Bank Index. Last week, JPMorgan and Wells Fargo topped expectations for third-quarter profit and revenue by generating better-than-expected interest income.

☆ Earnings playbook: How to trade a big week of results including Netflix and Goldman Sachs
▼ + stars: | 2022-10-16 | by ( Fred Imbert | ) www.cnbc.com time to read: +13 min

Tuesday Johnson & Johnson is set to report earnings in the premarket, followed by a call at 8:30 a.m. What history shows: FactSet data shows Johnson & Johnson has beaten earnings expectations every quarter since 2011. Goldman Sachs is set to report earnings before the market open. Netflix is set to report earnings after the bell, followed by a conference call between management and analysts at 6 p.m. What history shows: American Airlines has beaten earnings expectations 89% of the time over its history, according to Bespoke.

☆ All eyes turn to bank earnings for clues on slowing U.S. economy after Dimon’s recession warning
▼ + stars: | 2022-10-13 | by ( Hugh Son | ) www.cnbc.com time to read: +4 min

Big American banks have mostly resisted bulking up loan loss reserves this year as the financial health of consumers and corporations has held up despite mounting recession concerns. For much of the year, bank managers have told one story, while stocks have told another. Retail customers were spending briskly and still had ample cash in their accounts, executives including Bank of America CEO Brian Moynihan have said . In April, JPMorgan was the first big bank to begin boosting reserves for credit losses, taking a $902 million charge. Analysts expect the New York-based bank to generate $2.90 per share in third-quarter earnings, 22% lower than a year earlier.

☆ Punishingly strong dollar is still a fair trade
▼ + stars: | 2022-10-13 | by ( John Foley | ) www.reuters.com time to read: +6 min

NEW YORK, Oct 13 (Reuters Breakingviews) - Everybody wants the dollar; everybody hates the dollar. That makes dollar assets relatively more attractive and puts pressure on other central banks to raise rates too. The strong dollar kicks other countries in the shins, with varying degrees of pain. Follow @johnsfoley on TwitterCONTEXT NEWSThe International Monetary Fund and World Bank are holding their annual meetings in Washington from Oct. 10 to Oct. 16. The dollar is up 21% since October 2020, according to the U.S. Dollar Currency Index, which measures the greenback against a basket of six currencies.

☆ JPMorgan, Citigroup say higher capital requirements may hurt lending
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, Oct 13 (Reuters) - Leaders from U.S. banking giants on Thursday said strict capital requirements, which were bolstered after the 2008 financial crisis, could restrain economic activity. Higher capital requirements for big banks may curb lending and amplify a potential recession, Citigroup (C.N) Chairman John Dugan told attendees at the Institute of International Finance conference in Washington. Register now for FREE unlimited access to Reuters.com RegisterRestraining banks from lending during a slowdown could "amplify the recessionary effect," he said. The U.S. Federal Reserve is conducting a "holistic" review of bank capital requirements and might impose tougher rules on large regional lenders, its new regulatory chief said last month. But the biggest banks, which face the strictest set of capital requirements and have lobbied for years for relief, face an uphill climb with regulators.

☆ Bank of America CEO says U.S. consumers still in good financial health
▼ + stars: | 2022-10-12 | by ( ) www.reuters.com time to read: 1 min

NEW YORK, Oct 12 (Reuters) - Bank of America Corp (BAC.N) Chief Executive Officer Brian Moynihan said U.S. consumers are still in good financial health. "Right now, they're in very good shape," Moynihan told attendees at an Institute of International Finance conference in Washington. He cited high savings rates, strong credit quality, and a 10% increase in consumer spending so far in October. Register now for FREE unlimited access to Reuters.com RegisterReporting by Lananh Nguyen and Saeed Azhar Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

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