david stubbs of jp morgan saying by the bond move, and lisa shalett turning around and saying that is a religion of the growth difficulties still do come. as you get that change and it develops even further, the nature of save -- of selloff in the equity market, that changes too. tom: this is about your belief construct. the call it a set up. you have a set up as a belief of educating -- of executing a trade. but the real issue is you have to have a belief system of which to invest in. that is really what is being asked in here. jonathan: i think we've been tested more than once. you get comfortable with an idea, and then this market punches you in the face. yields lower by three basis points on the 10 year. futures positive 0.9%. i wasn't talking about maria. [laughter] she did the same thing, i'm sure. this is bloomberg. ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. president biden will highlight efforts to stem inflation today at a time when soaring prices certain democrats -- threatened democrats' slim chances of holding ont

from new york,, david stubbs of jp morgan.bloomberg surveillance." ♪ >> you have all of the three worlds biggest economies suffering from these shocks at the same time. >> we also run the risk of a second repricing lower if we see demand destruction rollback. >> could see prices peak backup, complicating the picture for the fed. >> i wonder in july whether the fed will have the stomach to do another 50. >> the fed has been way behind the curve. >> this is "bloomberg surveillance." jonathan: this market needs a therapist. from new york city, good morning, good morning. for our audience worldwide, alongside tom keene and lisa abramowicz, i'm jonathan ferro. futures up .8%. there is a bounce. will it stick? tom: with a li

david stubbs is so chiseled, he is on the palatine about 11 hours a day. jonathan: he joins us now. david, we will not talk to you about your workout regime. we will talk to you about this market. it has been brutal. i want your thoughts on what has happened and how you are allocating capital right now. david: it has been brutal for equity and debt. we have seen is the creation of significant value in the fixed-income space. we are now starting to move some of our cash, our short-duration fixed-income out of the curve. yes, your bond yields could go higher, we have asymmetric return profiles in the government bonds around the world. you could lose a couple of percent if we see basis points up from here, but if we do see a growth scare or recession next year into 2024, you will get a double-digit return on those government bonds. we are calling now for adding a little bit of duration in portfolios. on the equity side what we are seeing is a bit of a morph from the fears of what the central banks are going to due to the fear of the growth slowdown. we have seen earnings be pretty stell