>> welcome to bloomberg markets. equities ending on a sour note. traders turning from their risk appetite to risk off. let's check on the markets. the s&p 500 quickening those losses a little bit. we have a .3% move lower on the day. tech names holding on. the nasdaq roughly flat. holding on to some green territory but not by much. two-year yield at 4.68% on the day. what a week we have had in the bond market. let's see we can break the 420

level. the vets for rate customer the week of hell the end of friday. -- have held up into friday. tech names holding on. adobe going against the trend. the biggest intraday gain since 2020 after reporting earnings. the measure of new creative business top estimates by over $24 billion, bringing in $460 million in revenue this quarter. we have to talk about tesla. tesla's investors overwhelmingly approved elon musk's proposal to reward him stock options up to $55 billion, roughly 1% less than what he received when he first proposed the pay package in 2018. shareholders also approved his plan to move the company's legal home to texas. tesla breathing today at 1.9% lower on the day. apple on pace for its best week since 2021. it added over $700 billion in market value since april.

investors are betting the new iphone's ai features will spur a massive upgrade cycle for users. the ft reporting the eu was set to charge apple over anticompetitive practices within its app store. apple still holding on against over five days, up 7.6%. we will discuss the week that was now with alex semenova. if you look at apple this week, at nvidia, we certainly saw a lot of exuberance. what are investors feeling? alex: when we look at the move lower today what is driving that is a measure of consumer sentiment ended it on effectively fell to a seven-month low. most are worried about inflation on personal finances. we did have a pretty incredible week with investors optimistic the fed's next move will be a rate cut, whenever that may be, which was driving up risk assets and leading stocks all-time highs. it is pretty normal we are seeing some profit taking after

the remarkable run we got. across the atlantic and europe we have some term over -- turmoil after emmanuel macron called for a snap election. and that led to a $200 billion selloff in french stocks, the size of greece pose entire economy. if you look at you little pullbacks they have proven to be really good buying opportunities and not necessarily something to worry about long-term. sonali: when you think about how this sets up the second half of the year, you have hit new record highs and seen a lot of promising numbers out of companies. jitters are normal after seeing these valuations. does that sort of negative undertone -- alex: if we look at the data, the economy is incredible strong. it is normalizing from unsustainably high levels in the labor market and retail sales.

more so than pointing to any slowdown. earnings expectations are being upwardly revised. we are expecting to see double earnings growth this year. as long as that data stays consistent the trajectory of the market will still be a move higher even after an first half of the year. you might be a little bit slower in terms of gains but things are pointing up for the second half of the year. sonali: alex, thank you for your analysis. keeping an eye on the feelings under the surface of the market. now the trial of bill vaughn at archegos. a lot of headlines and investors keeping a close eye on the trial. his top trader giving damming testimony, telling a jury that he told him to do the opposite of what a normal fund we do. when you look at how this has been progressing, what is the latest in terms of what the prosecution has been bringing to the table by means of their witnesses?

eva: one of the prosecutions key witnesses is the former chief trader william spader. he has been key in speaking to the prosecution's market manipulation side of the case. he was directed to light to banks and use aggressive trading tactics. many this tactics are thanks market participants use every day. trading before the close and high-volume. the prosecution is saying the underlying intent was to manipulate share prices. the jury has heard from another key cooperating witness scott baker who lied to bank to increase their credit levels. sonali: how does the child move on from here? what can we expect next? eva: we are getting to the end of the prosecution's case. maybe the defense open their cases as early as next week and

the big question is, will bill hwang testified? -- testified? y? it's been a very interesting insight into how the banks reacted during that period and the lead up to the collapse. i think they relied on a lot of assurances and to give out more money to archegos. it's interesting to see a lot of them did not know what was going on across the street. sonali: thank you so much for joining us today and for all your reporting from the courthouse. that is the latest of the trial of bill hwang. coming up, i look at shares of cava. it's market capitalization puts the value of each restaurant above $30 million. it is our stock of the hour. this is bloomberg. ♪

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sonali: this is bloomberg markets and i'm sonali basak. it is time for the stock of the hour. cava went public at year ago and shares have more than tripled since the company's ipo. evaluation equates now $33 billion -- $33 million per restaurant. that's an eye-popping number the mix a few million per year. bailey lipschultz joins us now. the valuation feels a little bit of a way to navigate a risk factor for valuations. what are people across the street saying about what that means? bailey: the downgraded jp

morgan was predicated on that. is higher than the value that chipotle gets and is the gold standard. whether double what -- when you look at each restaurant on average over the last year is closer to 2.75, less than $3 million in revenue per storefront, that's kind of a job dropping multiple. for the $10 billion valuation. the stock is up 4x, 300% from going public year ago. that is join questions. when you look on the comp races, portillos. wing stop only at $5 million per store. this is a company predicated on the fact they want to get to 1000 restaurants in the next decade. when you look at the growth it's predicated on it's really outstripping the current valuation for the company that only has a handful of proteins. sonali: yeah. have you had cava? bailey: i have not, which feels a good crime. sonali: plenty of protein.

the stock has risen more than double this year. if you see a little bit of a decline this day, about 3.7% for the day, it's interesting. when you normally see downgrades it's because of negativity around something else about the company. it seems a lot of the downgrade is on valuation alone. bailey: the question gets to how can you go into a $10 billion valuation. yes people want to ascribe to the fact they are getting to north of 1000 stores within the next decade. when you look at the growth struggles some restaurants have had in the past, look it to fully, -- at chipotle. you are training staff on the fly. handling things like meat. some issues that can come of cooking that. a lot of uncertainty about being able to grow not only on the east coast where it is predominately based tour in california but throughout the midwest which they see as untapped potential. some consumers with spending

budgets and how they can play out. sonali: why do you think the valuation has flown away so quickly? bailey: scarcity value. there are some people that want to buy some of these fast casual companies. cava, chipotle, wingstop, mcdonald's. it has outperformed the s&p by 2x year-to-date. investors want to buy some of the stocks given the argument that consumers are either going to downgrade what they are spending so maybe less eating out at nicer restaurants or people on wall street can spend $16 on a salad going to sweet green or $40 on a bowl at cava for the lunch items that are high margin for the company. sonali: you are saying we should start a fast casual company? bailey: i think so. up 300% in wen yu for a company that has been going strong but from the valuation perspective getting weary for investors. sonali: thank you so much, bailey lipschultz. another highly read story of the day.

we are seeing shares of nvidia of more than 6%, giving it a market cap above $3 trillion. helping jensen wing bill the net worth of $113 billion. diana lee has been reporting on the rise and a day after seeing another record and nvidia back on the rise. how does this translate into the growing empire for jensen? daine: jensen wong is not really rich. he's now the 12th richest person on the bloomberg billionaires index with a net worth of over $130 billion. most of that is coming for the ownership of nvidia stock, which just passed one record after another. we see the market cap surpassing $3 trillion. his net worth up above over many rich billionaires on the index. we see him over passing michael dell last week and america's richest family. it's been a wide for him -- wild

ride for him. sonali: bridgert -- richard and walton and the michael -- richer than the waltons and michael dell. the more nvidia grows the more jensen wong's wealth grows. what does it mean? daine: he's becoming a celebrity in the ai era with his signature black leather jacket. a lot of analyst would describe it signifies a trend of new ai hardware\ software. they are taking over the old generation of billionaires. traditionally we see the tech billionaires are coming from the software industry like meta's zuckerberg and bill gates. we see hardware companies like nvidia's jensen wong and other beneficiaries like amd's lisa

sue and charles leong of micron. sonali: interesting to draw this into a broader trend. it is not just jensen wong although his wealth has become enormous. it is other people as well. for jensen, what is unique about his leadership style? daine: one thing to keep in mind is that jensen wong cofounded the company and has been leading for over 30 years. that stability is very unique among the tech industry and nvidia started as a provider for the graphic chips for gamers but then jensen wong realized they are very well suited for the ai software. that is why they brought the company to a new market and why nvidia is at the center of this ecosystem for hardware, essentially giving them a jumpstart of competitors. sonali: diana, thank you so much. diana li of bloomberg wealth keeping an eye on all that money being accumulated in the ai boom. coming up, the miami area is

setting record rainfall right now. as the area remains under a flood watch we will talk more about wall street south of next. this is bloomberg. ♪ you know what's brilliant?

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sonali: this is "bloomberg markets." time for the wall street eight. miami is referred to as wall street south. the region has been hit hard this week by record rainfalls. according to one report, north miami received 20 inches of rain over 48 hours. that compares to an average of

10.5 inches of rain for a typical june in the area. melissa cohn is working in real estate in new york and florida and also with us is abigail doolittle. melissa, in the vein of all the rain it harkens to this one worry under the surface. particularly moving from the new york area of florida about climate, about the weather, about what it means for homes. what would you tell them? melissa: unfortunately we are experiencing extreme weather all throughout the country. while in south florida we do have the hurricane season which is more heavily an issue in florida than it is elsewhere, you know, we are equipped being in florida to deal with the weather. extreme weather will happen everywhere. if you buy a home that is properly built in hurricane proof you are safe and sound and its still a good investment. abigail: given the fact we have

this tragedy down there in florida, or at least unfortunate circumstances, what is this doing to real estate activity and your clients? are you still active or is this just frozen everything up? melissa: it has been pretty much business as usual this week. we have had a pretty busy beginning of the summer season as well. i'm actively engaged with multiple buyers throughout the state of florida. we are purchasing everything from first-time homebuyers the second homebuyer, someone buying a larger home. people with wealth coming down and purchasing. i have seen activity all along the price spectrum. sonali: that's a little puzzling in terms of this week. my sources told me that housing in florida is similar to the rest of the nation, gets down. you are seeing more activity this year but it sounds a little formal. people are afraid to miss out on

an opportunity despite 20 inches of rain in miami. what do you make of it? melissa: i think there are a lot of people who have made the decision over the course of the past number of months that they are going to look beyond the high interest rate environment we are in and want to buy and have waited long enough and are just stepping into the marketplace. obviously the level of activity today is slower than it was over the course of the past -- during the pandemic for sure. there is still business going on. i think that's a good sign. sonali: it's fascinating and funny for me in particular to ask you this question. i was one of those people that looked past the high interest rates to look for a house. why are people not waiting? is there a worry that interest rates will start to subside and then prices will start to go up at a very rapid clip?

it is counterintuitive in some ways when you know the rate cut could be just around the corner. melissa: the answer is yes. when interest rates come down more buyers come into the marketplace because of increased affordability. therefore prices are likely to go up. even in the face of higher rates this year the average price of a home has increased by 4%. there are people who want to get in now and figure they can take a higher rate mortgage knowing he will refinance when the fed starts to cut rates and they will be able to take advantage of today's price point. there is more inventory. people have more time to look around and decide which homes they want to buy. this will be an opportunity. when the fed starts to cut rates mortgage rates will drop. more people will come in and prices will go up. abigail: a lot of commercial real estate folks sonali and i

have talked to have talked about the tremendous sensitivity to rates within a week or two of big moves up or down can affect business. are you seeing that sort of sensitivity for residential even within the strength of florida? and talk about the tri-state area because you are a peer. melissa: the answer is absolutely yes. the average rate of the 30-year dropped below 7% and more people were like i can do this now. let's get the process going. there are a lot of people who just need to move for lifecycle reasons. you get married, have children, get divorced, die. people need to relocate. so many people are working remotely -- were working remotely during covid and now have to go back to the office and they have to move back. we are seeing a lot of that type of real estate activity moving the marketplace. yes, the level of activity is

lower than it has been but i think it is busier now than it was during parts of 2023. people think, you know, the end is in sight. relief is in sight. the fed will at some point start to cut rates and mortgage rates will come down and why not get into the marketplace now. sonali: it's interesting to see whopper in the tri-state area and florida. that narrative on migration has been alive for a while. there is skepticism and how much that is actually happening. a lot of changing dynamics in the tri-state area as well. howdy see the narrative unfolding in the next six to 12 months? melissa: there are still people that are moving down to florida. many businesses have started to open up offices in florida. people have the opportunity to work down in florida. we have better winters in florida. more daylight. a lot of positive reasons when you look beyond the summer

hurricane season to actually live in florida. there are people who moved to florida who realize they can no longer work remotely and need to move back up to the northeast for business reasons. there will always be people of retirement age to say i would like to live in a warmer environment and move down to florida. people who have retained its second homes in new york and spend winters in florida. there are a lot of snowbirds in this area. sonali: melissa cohn and abigail doolittle, thank you for the latest on real estate. it has been a very hot topic this week and a complicated one during that rainfall in florida. that does it for "bloomberg markets" for the day and for the week. what a week it has been. stocks down on the day but up on the week. stick around for mike mckee's interview in a few minutes. that's a big one after this week. this is bloomberg. ♪

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>> live from washington, d.c. >> president biden wreps the g7 in italy as the world watches developments in ukraine and israel. i am joe mathieu alongside kailey leinz. live in washington here on "balance of power." kailey: deliverables that are tangible outcomes, the decision among g7 countries to use $50 billion in frozen russian assets to fund ukraine and security pact that the u.s. and ukraine and the presidents of those, countries signed. we had a lot in regard to ukraine. we know there were other topics of conversation. joe: