>> we are 30 minutes into the start of the trading day. nvidia delivers, projecting second-quarter revenue of $28 billion as a high spending continues to benefit the chipmaker breathing fresh life into the s&p 500 record run. elf defeated conservative guidance for the fiscal year. we will discuss the results and the state with many fields. exclusive conversation with anna paglia. we will get her views on

industry. an uptick in investing and how etf's fit into retirement. i am katie greifeld. welcome to bloomberg markets. taking a look, the s&p 500 currently up .1%. a record high and all that strength is really coming from the tech sector. specifically from nvidia. the nasdaq is higher by about .5%. take a look at the semiconductor index. stocks are higher and it is all about nvidia blowing past expectations. really delivering and showing growth.

it is only just beginning. joining us with the details, you and i were on, talking about paper scalars and that the base is starting to expand beyond. walk us through that a bit more. ed: all of the big spending has not only not slow down but it is growing to new areas. nvidia makes chips that can handle a lot of data processes but the first iteration was a very small number of plays. they would sell gp use. microsoft, google cloud running very big data centers. when does it move beyond that? in the outlook for the second

quarter, 20 $8 billion plus or -2% but also the commentary. ai moved to the next wave were smaller companies are buying from nvidia to train models. that is an interesting development. katie: let's talk about the talk -- stock split. i think that surprised a lot of people. they do not impact the fundamentals of a company's business, so what is the logic behind this stock split for nvidia? during the earnings call, i was looking on at and -- i do not know if you can pull up the shares, but trading at $1000 a share. a split effective june 7 lowered the barrier for entry.

it gives everyday investors a chance to be a stockholder. i think they were very conscious of that. he wants people to be involved beyond the companies that they do business with. katie: you can catch and coming up next hour on bloomberg technology. i imagine they will talk about nvidia with shares moving higher. let's zoom out and get to the broader markets. sarah, i am taking a look at your notes and you like nvidia, but you do not love nvidia. is that still the case? sarah: it is. they are not the only player in the game. the thing that makes them such an interesting name will be the thing that drives a slowdown. their margins are crazy high.

that is great if you have been writing it up, but we are seeing names like apple that we sometimes forget that apple is a huge chip designer in their own way and have been focusing a lot more on ai chips, so that means they will probably be buying less from nvidia. we saw that amazon is slowing down there ordering and everything is amicable. they are slowing down because they want to wait. but either way, a slowdown in orders is not necessarily what you want to see. i think nvidia is a solid company that has turned almost into a meme stock. there is excitement around a company that is not the only game in town. katie: when it comes to retail interest is off the charts.

someone could push back and say they are the only game in town. really establishing their lead on the rest of the field. nvidia has just laughed them. how do you think about that and how big that headstart nvidia has? sarah: the reality is that they have had this amazing run but at the same time, chip design is not as linear as we might think. nvidia does have this advantage because other people were not focused because they were not making chips for gaining -- gaming. as people are looking around at that, as they were saying, actually, this is a much bigger business than gaming design, they have the capabilities. they have been hiring engineers who can do this for years.

i do think that nvidia has had a head start. i do not think that long-term it stays that way. this is not a quarter by quarter call. but i do think that in the next year and next two years, a lot of this advantage is really going to go away. they might pull another rabbit out of the hat, but if they continue the way that they are, the reality is that people are designing lordships and house than other companies and a lot of these companies are likely to catch up. katie: point taken on valuations. he could argue that nvidia looks cheap, but then you look at how far shares have come. it is really breathtaking. let's take a look at a name that you do like, the taiwan semiconductor. thinking about the geopolitical tensions and issues around that name, how do you square that with the company's fundamentals?

sarah: you see that they are working to move manufacturing to other countries so they are not solely tied to taiwan. there was news out the other day that they had the capabilities to effectively turn off the factory in taiwan, if there is an invasion. the other reality is, as we are seeing in russia, it is hard to prosecute a war at any scale. it is hard to do that at any real scale without getting a lot of global involvement. while not remain something to keep and i are in, i think we have a lot more problems than just taiwan semiconductor. in the short, they are the people making the chips. apple can also design their own chips. at the end of the day, there are

very few places to actually manufacture them. taiwan semiconductor's are one of them. while it is getting more expensive, it is a company broadly undervalued in the market, given its role for everybody designing chips and actually producing them. katie: i would love to go into the portfolio and talk about some of the holdings you have in the private market. let's talk about this. it is a name that certainly has buzz. sarah: elon copied as he does. but it is a company that is really fascinating because they are focused on language processing units. they spun out of google years ago because the big companies have a lot of this tech talent in there. i have been lucky enough to back them since 2018. they started with self driving

cars and now it is a really high focused company and what they can do around inference with which processing units and is really interesting and faster and cheaper. it is where the industry seems to be going. that is definitely a name that i am excited about at a name i am hearing a lot of excitement about outside my portfolio. katie: before i let you go, we do not have much time left. i wanted to talk about private markets. staying private for longer. you are seeing that in the ipo volume. is that something you are seeing as well? are there more opportunities than they had been -- and there have been in the past with company staying private? sarah: unfortunately, i do not think there are many opportunities to go public.

they tend to did and not go back up. the market has just gotten incredibly tough because than the big companies tried to buy, they tend to say no. i think we will have a private for longer narrative. i think they are ready and able to fund that, even if we are not as enthusiastic as we were a few years ago. katie: always enjoy speaking with you. we hope you will come back soon. let's take a look at what is moving underneath the markets. italy is sitting to my left. what do you have? emily: stock is falling since 2009. this is the parent company of the ends and north face. do not see a lot of vans. that classic sneaker is falling. you can see that in the parent

company earnings. seventh consecutive quarter of falling sales. vans revenue fell year-over-year. stock is down you today. it seems like the earnings is not helping. katie: it is just getting worse there. let's talk about ralph lauren. when we talk about their numbers, they did great, but it all comes down to their forecast. emily: aca growing. the average estimate was 4.4%, so not a large this, but a miss nonetheless. falling a little bit in the premarket. they did say it might be a little bit low, so perhaps leaving room for a surprise for ralph lauren in the future.

katie: let's talk about spinoffs. so hot right now. emily: we are seeing a three-way spinoff. dupont is planning to split their company into three publicly traded units that will be separating their electronic and water unit. the remaining company will be more narrowly focused on industries like biofarma and medical devices. the process will take two years. it follows conglomerates. overall, although it is paring gains, they seem to be cheering the split. she bank strongly supporting the move. research saying that the assets together did not play well, but perhaps separately they look interesting. that bodes well with the prices.

perhaps the split will boost that. katie: thank you so much. coming up, elf beauty posting a sales spike in its latest quarter. we will get the highlights from many fields, next. this is bloomberg. ♪

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katie: elf beauty crushing earnings estimates the passing month billion dollars in sales for the first time. also issuing weaker than expected guidance. many fields is here. sales are absolutely flying today. i see them up on my screen. some of that guidance.

analysts have been expecting $3.56, so a bit of a disappointment there, but looking through the notes and the past quarters, this seems like it is a strategy for you guys to under promise. talk us through that. why give conservative guidance, going ahead? mandy: i am pleased where we have landed. 77% net sales growth. it is building strength upon strength. 20 to 22% sales growth. as i said, strength on strength. we are being prudent with our guidance. we have been very balanced in our approach. katie: one quarter at a time.

what are you seeing, in terms of demand? you said strength on strength, but many fears about the consumers starting to pull back from maybe spending less on discretionary items. what do you see from your vantage point? mandy: we see a lot of demand. it compares to others in the beauty space. when you get into prestige, over $20 on average. from a value proposition, you pair that with what we are able to offer and we continue to see our community coming back. katie: you mentioned your value. any think about elf wedding market shares, is that because of the value that you offer? would you chalk it up to their

factors? it seems like gen z also has a connection with this brand in particular. mandy: we are celebrating our 21st consecutive market share gains. over 300 on the year. we continue to gain shares. the last 12 weeks we became the number one brand. we are very pleased with this. in terms of what is driving it, it comes down to the three things i mentioned, our value proposition paired with the holy grail strategy. when you think about the products that they offer, elf is able to bring it to life and even better at $10. we had a great holy grail strategy that we continue to build upon year after year. this is where the fun happens.

we have done a lot of collaborations. most recently we did a collaboration with liquid death. our corpse paint. they are there for all of the fun things that we do with this brand. katie: did you say liquid death as in the water company? mandy: yes. it is makeup that you can have fun with. katie: you have strong advertising campaigns. i want to talk a little bit more about whether you are seeing any differences among regions, especially when it comes to different types of products as well. mandy: not so much from a regional standpoint, but we are offering products that the community is asking for. our bronzing drops, we just launched those a few months ago. they were go into retail this summer and is becoming our most

popular item. if you think about how this came to be, it was the community asking us, when are you going to do this? we were able to provide those for our community. katie: i also want to talk about the relationship with sephora. elf is going to be in sephora in mexico in the fall. that is the first partnership you are having with them. could we see more in the u.s.? what is the potential timeline? mandy: we are excited about going into sephora in mexico. it is very exciting. we will take it one market at a time. from a u.s. standpoint, sephora is more focused on prestige. not as likely that we will end up in u.s. sephora stores, but you can check us out in mexico,

in the fall. katie: when you think about regions that you would like to expand in, what else is on your list for where you would like to go? mandy: international expansion is a huge opportunity for us. it compares to over 7%. we know that there is a huge opportunity for us outside of the u.s. over 115% growth. today we are mainly in canada. the rest of the world really opened to us, so we're excited about the expansion that we will continue to talk about. we talked about sephora mexico and we launched in italy in -- we launched in italy. it is a really big opportunity

for us. katie: great to catch up with you. i know it is early, so we appreciate your time. we will point out that shares are up i about 15%, the best day for the stock and about a year. people take a look at the companies making the most social buzz. this is bloomberg. ♪ i can't believe you corporate types are still calling each other rock stars. you're a rock star.

we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

katie: it is time for social climbers. a look at the stocks making waves on social media this money. americans are putting away the pipes and packing up the bowl. more americans smoke marijuana daily then drink on a daily basis. it reflects changes in public policy. next up, bj's delivering

underwhelming results. comparables grew slightly but it left its outlook unchanged. finally we have hasbro breaking out the toy chest on an upgrade from jp morgan. impressive growth this year despite the shortened holiday season. you can follow the latest on your bloomberg terminal. take a look at markets right now. the s&p 500 pretty much unchanged. nvidia shares up by 9%, not making much of a dent. 410 names in that index are lower. nvidia doing a lot of heavy lifting but not much when you have that volume of names. of course, the chips index higher by 1.5 percent.

coming up a bloomberg exclusive. we will hear from anna paglia. her first interview since taking the post. this is bloomberg. ♪ feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management. sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

>> anna paglia is the global advisory for state street. i am pleased to say she joins us in her first tv interview in her new role in a bloomberg exclusive. it is great to see you. let's talk about your title. chief business officer. i have not heard before.

lay out exactly what that means. anna: i am not surprised to hear that you have not heard about it before because it is new and it is one of the things that attracted me to state street global advisors. the ceo has a very dynamic view and vision for leadership so she created this role which is really new in the industry and my job spans across the different business lines and i am responsible for building a plan and executing on this plan and bringing together all of the stakeholders, invested distributed marketing. it is really exciting and i'm having a great time so far. mandy: you have two or three months under your belt. what is on the top of your priority list? anna: the top of the priority

list is innovation, reigniting and accelerating the innovation engine for global advisors. the company is very known in the industry for the flagship capabilities, gld, sector, spider just to name a few. keeping up with the changing industry, keeping up with the trends to maximize the capabilities and building on top of that is top of mind. mandy: are you talking about the product line, distribution areas. anna: it is all of the above. products are essential. if you cannot show an invasion when it comes to the end, do not have a great conversation with your clients.

the mission goes outside of our experience is about how you think partner for your client, a very important partner. throughout, it is those people as the top of the rolodex for people who know what that is. mandy: i have heard of it. anna: that is about technology. it is about solutions. we are looking at companies pfs building in portfolio but also department of the effectiveness of the market from his reflections on the consumer market where our clients are operating it is important to provide a full package of solutions. mandy: when it comes to, if you think about your time at invesco , you will driving forces and it was always curious to me that state street did not have a

filing given that you are home to gld, the biggest buff commodity etf. is that a decision that you are thinking about? anna: i really cannot talk about plans but i can tell you a couple of things which are obvious because we have known each other. am i a believer in digital assets? yes. am i excited about the bitcoin bringing numbers into the u.s. market, no. that's not exciting to me. what is exciting to me at this point is thinking about digital assets and how do you integrate bitcoin and other currencies of the blockchain technology into products, not just a single currency. it is really what is exciting right now.

mandy: i have her before if you are not first -- i have heard before, if you are not first come you are last. i want to talk about the cast business. state street global advisors cash business has grown 52% to $529 billion in 2023. incredible growth. where is the money coming from? is it coming from bank deposits? is it coming out of the risk assets or the equity market? anna: it is a combination of all of the above. the cash business is not a business that peaks and then goes away. even before these interest rate hikes, that business was healthy. $250 billion in assets. the business market environment and the macro market environment

has taken hold of that. that comes from institutional investors putting their cash to work. right now with these high interest rates cash can work for you but also other investors are really immune from interest rate hikes and are using money market funds is a good way to put their cash to work. there are definitely market dynamics that make this conversation on this part of the business very important today but this is an organic growth that we continue to seek despite and regardless -- we continue to see despite and regardless of environments. mandy: when you think about money market funds which are cheap in the grand scheme but expensive, how meaningful has the growth been in terms of the contribution to state street global advisors overall revenue picture? anna: you have to look at the entire business of state street global advisors.

the business has now crossed $4 trillion which is phenomenal growth. $4.3 trillion. half of $1 trillion retirement. almost $1 trillion and everything else is a mix of institutional customized mandates and etf's. the revenue mix has been healthy and is about not focusing on one or the other but working across that entire spectrum, that entire barbell that is working really well for global advisors today. mandy: before we leave behind money market funds, your market share has increased to 5.9% at the end of 2023. do you have a target of where you would like to share to go? anna: we do not have targets for the market share. we look at growth, that business is growing.

we will work and try to continue to celebrate that growth and obviously if we do it well, which we will, that will translate in increasing market share. we do not have a defined target right now. mandy: let's talk about retirement. when you think about etf's, they do not fit into traditional retirements account. 401(k)s do not incorporate etf's. do you see that changing? how can etf's fit into an investors retirement plan? anna: we are working really hard with regulators, with investors, plan sponsors to make sure that etf's find a way. 401(k) plans do not buy etf's for all the reasons that are very known to us. technology, regulation. we believe these things will converge at some point.

etf just like mutual funds are used in other parts of the retirement industry. for example, require a's -- for example, ira's. technology. we have solution oriented technologies in portfolios and annuities to follow them investor, -- to follow an investor. we believe there is room for etf's in that conversation. mandy: before i let you go, you do see a future where etf's can be in 401(k)s? anna: i definitely see that. i believe they will play out fantastically. mandy: from one etf lady to

another, it is great to see you. hope to continue this conversation soon. anna paglia of state street global advisors. let's get a check of the markets right now. natalia: the s&p 500 is flat, trading around 5300. there was an acceleration in business activity here in the u.s.. inflation remains elevated and yesterday's meetings show that fed officials are discussing higher for longer interest rates. the nasdaq is doing slightly better, up by 0.7%. prude is moving higher as well. it is now trading slightly above its three-month low. this can be do to a slight decline in the u.s. dollar. wti trading at $77 per barrel.

according to the minutes, yields are moving higher. the 10 year yield trading currently at 4.9%. let's flip up the board and talk about individual stocks. nvidia is the most important. it is now up by 9.7%. the results were better. the forecast was strong. the company announced a stock split which is really encouraging for retail traders. we will get back to this in a moment. morgan stanley is down by 1% on the news that james gorman is stepping down at the end of this year. live nation is moving lower, 4.9% on news that the doj will sue the company over some antitrust concerns. viad corp is moving lower -- vf

corp. is moving lower after some analysts downgraded the stock. let's look at nvidia five-year chart. this is why the stock split is so important. in 2021 when the company announced a stock split, the stock gained about 20% between the announcement and the effective date. now some traders are saying that this stock split connect so the reactivity from retail traders between now and this effective date which is two weeks today -- two weeks from today. katie: coming up, how to ease china's property crisis. we will explore with henry mcveigh. this is bloomberg.

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>> it is time now for our daily wall street week conversation and we are looking at china's post-covid economy. david westin spoke with henry mcvey, head of kkr's global balance sheet. >> the is bottoming. we heard a couple of different data points that are seeing the u.s. consumer pickup and things have bottomed in europe. there is a little more demand overall it is a sluggish economy post-covid with very low inflation. david: the growth that is there is not evenly distributed. some areas are growing more than others. henry: i have been to china four times in the last five quarters so i am giving you how i think the evolution of the economy is

changing. focus are -- people are focused on fixed investments and exports. the government is pushing toward a couple of different things. one is this idea of digitalization particularly as it relates to the industrial sector. they're trying to automate that sector to be more competitive globally. in the past people thought about china in terms of e-commerce, alibaba and domestic consumption. the focus industrial automation. china has half of the world's robots on the industrial side which is amazing. the second big drivers around the green effort and they are trying to dominate batteries, ev's and solar panels and trying to export some of that globally. those are the growth drivers. the offset which is still problematic is around housing and our estimate is they have between 20 million and 30 million too many homes so they are trying to clean that out.

that clearly have an impact on domestic psychology. david: someone investing in the green tradition has gotten the attention of europe and the u.s. whether it is solar panels or ev's because there is a concern of overcapacity. do you see overcapacity and what does that do to margins? henry: industries like autos will become of national interest. we have seen that in technology. it could expand to other sectors. there will definitely be sensitivity. president biden talked about the tariffs increasing there. europe will do a similar type of strategy. you can have capacity. the question is where can that capacity go. for china you will see more of it go into places like latin america. maybe eastern europe where they have partners. maybe there is increasing bilateral trade. that does not seem to be the case in the u.s. and europe.

david: what about the animal spirits? there are reports that individual people might be sitting on money because they don't have the confidence. henry: we have seen a 300 basis point increase in the savings china has a high savings rate, about 28% normally. sometimes 31%, 32%. if they were to bring that down by increasing confidence, that could add 200 billion dollars to $300 billion in additional spending per year which is meaningful. in a post-covid world, businesses did not do as well during that period and people are looking for more direction around the housing market as well as what is the strategy for exports and domestic business posture. the more the government can encourage that visibility around the world -- where they will go, it will be better for domestic growth as well as global growth. remember, china even in its

current state is still about 25% of global growth which is a massive number. david: let's turn to the question of what china can and should do. you mentioned real estate. nobody talks about the chinese without talking about the real estate problem. how bad is it and what did they need to do? henry: we looked at a bunch of different housing crises to see what the best past it. we usually have two factors. price and volume. china has had a slowdown in volume. that will be a headwind. what can they do? they can actually encourage more urbanization. they still have a way to go with their urbanization rate. 66%. they need to get it north of 70%. the second thing to do is grant more licenses to the migrant population which is very meaningful. you can give them permits that would allow them to take up more permanent residence. those are easy supply-side reforms. nothing is easy, but you could

do that. the third thing would be to consolidate the number of developers. they have to committee developers. i would back strong winds and do a government -- i would back the strong ones and do a government guarantee. then i would invest and create visibility around the good homes so that the chinese population feels strong about that. katie: that was henry mcvey, kkr head of global macro balance sheet and risk and wall street week host david westin. tomorrow we will hear from restaurateur melba wilson. this is bloomberg.

you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring if you think about it.

katie: the justice department is

suing live nation for antitrust violations. regulators are looking to force a breakup and force ticketmaster's control of ticket sales. merrick garland will hold a news conference on this in just a few moments but as we count down to that, let's get some insight from kevin of bloomberg intelligence. walk us through what you are expecting. i read your analysis and it seems like this is something that could take years. kevin: very much so. this is based on past president. in the case that live nation were to lose, they would appeal. this will take a long time and we are getting details in real time but the case is fairly broad. the doj is arguing that there has been malpractice related to either the exclusivity that live nation is imposing. the other side of the case they are looking at is if they are

illegally tying in ticketmaster or any product or service to other parts of their business. katie: speaking of details, live nation issuing a statement on the lawsuit saying that the suit igs basic economics of entertainment and that the suit will not reduce ticket prices or service fees. the 1.4% net profit is not monopoly power. you think about how this complaint out over a number of years, -- how this can play out over a number of years, what is your best guess? kevin: a forced asset sale is a tall order but we do think there is an avenue. the consent agreement that they signed said that if they are in fact doing what they said they will not be doing which is imposing consequences on venues that are not using ticketmaster, they would be fined $1 million for every violation of that.

certainly monetary, a breakup is what the doj is seeking after past. katie: we will hear from the doj in a couple of minutes. another headline from live nation saying that it is the artist teams that send prices, not ticketmaster. kevin of bloomberg intelligence, really appreciate your insight on this. before we go to that press conference, let's look at some stocks hitting highs. we have to start with nvidia hitting a 52-week high of a bullish sales forecast showing that ai computing spend remains strong. we also have macron technologies hitting highs. what is amazing though is the 9% gain in nvidia, the s&p 500 is pretty much flat right now. coming up john t. stankey joins bloomberg technology with caroline hyde and ed ludlow.

that does it for bloomberg markets. i am katie greifeld. this is bloomberg. do you want to close out? should i? normally i'd hold. but... taking the gains is smart here, right? feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management.

>> from the heart over innovation, money and power collide in silicon valley and beyond this is "bloomberg technology with caroline hyde and ed ludlow. caroline: i am caroline hyde at bloomberg headquarters in new york. coming up, full coverage on