david stockman is sticking with us. mark aren in london -- mark barton for bringing us up to date. coming up, a look at the troubles of deutsche bank. ♪ david: welcome back. coca-cola posted fourth-quarter profits with improved margins with a $3 billion cost-cutting program. that helped offset the impact of the strong u.s. dollar which reduced the value of coke sales and other countries. they have agreed to by holdings and cash value at $11.3 billion, including debt. they will pay 14% to the closing price yesterday. they have the highest rate of return among utility owners. goldman sachs warns volatility in the oil market could lead to prices falling below $20 a barrel. sachs the commodities research told bloomberg tv that prices may swing between $20 and $40 as supply and demand is rebalance. david: thank you. abouthave been talking this morning, concerns mounting about deutsche bank's ability to face their debt. the collect -- the coexecutive addressed the concerns saying, they are rocksolid, and they're trying to conc

david stockman. our budget director of the united states is going to marry a girl by the name jennifer blei, in washington. firstly i'm glad to see david stockman finally getting married. now he is going to find out what real spending is. [ laughter ] [ applause ] >> wait until he tries to cut her social programs. [ laughter ] >> and i'll bet not many of you know that today a william henry harrison's birthday. the ninth president of the united states. he holds the record for one thing, he was the shortest-term of all american presidents, he was in office 32 days. did you know that? >> no. >> yeah, he was the first he never really got to find out with harrison-no mics was going to work. [ laughter ] >> now, for the wild light of the day, and i'm only reporting this, i'm not making it up. it was in the paper, there have been some incidents of people who bought boxes of cracker jacks -- have you read the item? and several people instead of the regular price, have found a little pamphlet, giving sexual p

scarlet: david stockman joined bloomberg this morning with a grim forecast, saying the markets are the mayor but will soon be mold. david: it's not just the end of a bull market, i think it's the end of an era. it's the end of a worldwide era in which central banks printed money, injected liquidity, supported markets, manipulated and intruded in the pricing of financial assets like never before. what it did was create a massive credit expansion. we have 40 trillion of debt in the world and 225 trillion today. everywhere is at peak debt. second, the central banks are all out of dry powder. the fed has painted itself into a corner and we hear the market saying no interest rate increases in the coming year. that is 100 months at effectively zero money market cost. you will destroy a money market system on eight years of zero cost money. china is fighting desperately a massive capital outflow which means they have to tighten. >> we need to break this down. you are painting a bear market picture and recession on the horizon. david: global recession on the horizon, recession coming to th

it's not that different from what happens when david stockman comes to him and says look, you can have the defense buildup and the tax cuts or you can get rid of the deficit but you can't do all three because the numbers don't add up and he describes this frustration not getting reagan to understand these things are contradictory. i don't think he didn't understand it but he didn't have a solution to it and the path of least resistance was to allow it to grow and not fully engage in the problem so i think that he learned through his life in his political career that tuning out was functional behavior and i think people often when they would see the way that he would distance himself and not engage the would think he is clueless but of course at some point, alzheimer's kicks in and there's been an interesting debate for several years since after he wrote this moving letter to the country about when it started to have an effect. they send this book by saying that it was affecting him earlier in his presidency. in fact, i looked at the books and he doesn't say what he accuses her, saying

he just tuned it out and it's not that different from what happens in 1981 when david stockman comes to him and says, look, you can have the defense buildup, you can have the tax cuts or you can get rid of the deficit but you can't do all three because the numbers don't add up and stockman describes this frustration in not getting reagan to be able to understand that these things were contradictory. i don't think reagan didn't understand it but he didn't have a solution to it, and the path of least resistance was to allow the deficit to grow, and to not fully engage in the problem and leave it to aides. so i think he learned through his life and through his political career that tuning out was functional behavior, and effective political technique for him. and i think people often -- when they would see the way he would distance himself and not engage and tune out, they would think, oh, he is clueless and out of it. at the great poignancy of this is at some point alzheimer's kicks in and there's been an interesting debate, probably -- first acknowledged he had alzheimer's several yea

we're talking to david stockman. he is taking a bearish position in this market.he worst isn't over yet. >> coming up, the inside story at twitter and yahoo!. what executives are doing at both of the companies that could move the stocks higher. what is likely to happen next in the battle between apple and the fbi? those details straight ahead. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. they say that in life, we shouldn't sweat the small stuff. but when you're building a mercedes-benz, there really is no small stuff. every decision... every component... is an integral part of what makes the 2016 c-class one of our most sophisticated cars ever. because when you're setting a new benchmark for refinement, it is the small stuff... that makes the biggest impression. the 2016 c-class. lease the c300 for $399 a month at your local mercedes-benz dealer. man 1: he just g

let me just say i love david stockman and i love reading his log.there. i do not agree with him at all. i love reading jim, but i do not agree with him here at we had a nice debate the other day. it does not mean he does not have a lot of interesting things to say. i think the risk on recession is lower than he does. but i do not think anyone can predict a recession. nobody can. what we can predict is what the fed will do. we can predict janet or mario. it has become harder to predict the europeans and the japanese and that is why we gave up on them last year. because we think they are not following the right path and they are becoming unpredictable in their responses. i think janet will deliver a nice speech here that is my bet. i'm sticking with janet. i really do not trust the ecb right now and i do not trust the bank of japan. stephanie: you love janet and you hate the ecb? >> i do not hate them. i'm agnostic. i am trying to wait and see how influential the german contingent on the ecb is going to be. they were influential in december and caused

and the one and only david stockman.in new york, 3:00 in london, and 1:00 in hong kong. from bloomberg world headquarters in new york, good morning, i am brendan greeley. we are a half hour into the trading day, the route that set the nasdaq to its lowest level in october 2014 is deepening. oil also resumed its slide today. chief executive of the world's largest energy trader says low crude prices could persist for a decade. voters in the nation's first presidential library -- primary heading to the polls. we will have more after this weakens contentious republican debate. let's head to the markets desk where julie hyman has the latest. bad news on both sides of the atlantic. isie: the market selloff deepening. if you look at the three major averages, we have the nasdaq leading the