we are coming off of our highs of the session. >> just over the highs of the day. that performance of the stoxx 600, an increase of almost 5%. biggest rally since 2011. 400 10 billion euros added in the last couple of hundred days. down to one man, mr. mario draghi. the ecb has plenty of instruments and the determination and willingness and capacity to use them. .6 talks fell volatility falling by 10%. it was all about the oil and gas industry. them, thes among index jumping 5%.

the most since august. biggest gain since 2009. what an amazing couple of the days. decline against the against the -- dollar in light of mario draghi's comments. feeling a bit bolder, feeling a bit bearish on the euro. we need to get him to defend himself. it arose 3%. feeling bullish or bearish. it could fall to $.95 against

the dollar. >> european strategists are still bullish. 20% off of yesterday's close. they are looking for a level -- a month ago they were going for 415. ecb stimulus, the improving domestic economy. bases, european stocks are trading on 14.2 times estimated earnings. 9% to load the u.s. peers and the cheapest level in almost two years. year we woulds have risen for five consecutive years.

last friday the stoxx 600 fell 20% from the april record. >> let's check in on the bloomberg first world news this hour. much more ahead. courtney: forecasters say the store may be one for the record books. a blizzard taking aim at the east coast. it may drop a few feet of snow on washington. new york may get up to a foot by tomorrow. has become a nightmare. all must 5000 flights have been canceled for the next two days. there is a report that russian president vladimir putin and -- vladimir putin asked the shot al-assad to step down. putin sent the head of the military intelligence to deliver the message. putin is a sod's most powerful protector. removal as a

precaution. the new stadium for the nfl's return to los angeles hasn't even been built yet. could interfere with radar at los angeles international airport. is changing the design or coding the materials that absorb radar waves. news 24 hours per day powered by our 2400 journalists and 50 news bureaus around the world. to dov vos -- to davos. struggling with a surplus of oil. feeling thatally supply shock is iraq. >> it is very hard to anticipate with the collapse of oil prices every day.

this will be particularly -- if you take protection, there won't be much, we are at war. successful oil trader that has been betting on falling prices since december 2014. >> founder and chief investor of the commodity focused hedge fund. manages $615 million out of london. gaining by 8%. joining us today. you have witnessed the rebound in the last two days. has oil blossomed?

>> i expect the market to be in balance by december. quite a lot. 15% of worldwide productions -- i think the market is way enough on the downside. >> you have been remarkably press see into. the downward move in oil, you said it could fall to $25 or lower. back then it was $35. prices an outlook for ixt year and the year after,

think that would be fantastic. >> as long as we live in a state guesthe higher -- my best we are guess would be -- not going to go back up very fast. up to $50 and possibly $70 in 2008. we still have a chance to see a big blue market. >> you mentioned the longer we are lower the higher the price will go. >> the industry is struggling. prices are not going down and it is working.

eventually production will go down. that is a large part, over 50 million barrels of production. production based. it they are declining. we have seen declines accelerate. the declines we carry on. prices don't go too fast. you for saw this and you made the -- and you made the right that's. the coo of goldman sachs was saying if you look at the oil

markets, it is really just simple math here. you figure out what is the gap and where the price goes. how can many people miss this correction in oil prices? >> i'm not too sure. we are understanding what impacts prices. .here was a clear oversupply there ises overproduction in the supply markets and a limited amount of capacity. prices have to go down fast .nough >> you said oil could go as high as 100. are we looking at a volatile price? >> there is very little spec

capacity in the system. u.s. will be able to increase volatility fast. i think these are very volatile prices where we can see low prices followed by high prices. >> your fund rose roughly 8% last year. the industry was .6%. 30% in 2014. you are outperforming the industry on a yearly basis. you say it could rise in the

next two years, possibly three years to $100. >> i think the key is to move that appeal to the one in the markets. i think the possibility will be there. >> great to see. officer.nd chief the charts and next, just how stellar is the u.k.'s sovereign bond market? it is the best performer in 2016. will at last to you: matt miller is in town, bring it on.

looking at when -- at the charts of the day come a what they mean for investors and kicking things matt miller. >> i am very good friends, but i pull any punches. this is a charge clients absolutely love. i am making it available. you will see the #. i added it as space 100. these flags that look like the birch hotel, they represent a different quantitative easing course by the fed. this blue line is the s&p. these flags have powered the s&p up to more than 100% gains since the bottom of march 2009.

this pink one is s&p total net income. it doesn't rise nearly as steeply as the blue line. analysts expected to fall earlier -- fall further when analysts release earnings this quarter. and even further next quarter, so the question is without these quantitative easing flags -- >> mark, your turn. >> here's a question for mr. matthew miller. what is the best performing solver and mont -- sovereign --d market in the world best-performing sovereign bond market in the world? this is normalized at 100. showne rest of you i have you treasuries above 1.6%. the world's worst performing solver and bond market roughly

by 12%. why is the u.k. bond market so attractive? every single sovereign bond market has risen this year except for greece, portugal, and hong kong. market. sovereign bond has benefits for repricing expectations, don't forget the words earlier this week. now is not the child -- now is not the time to raise interest rates. throw in the upcoming referendum. that causes traders to push back their expectation for the you -- for the first u.k. rate hike. stellar start for the u.k. bond market remain? no. he has had a fixed income. he says further bad news for the u.k., relative to others is required to continue the rally.

and the head of u.k. rate strategy says the rally is overdone and investors and expectations are too bearish. top of the leaderboard and 2016 but not everyone is convinced it will last. get a piece of that. listening and watching both of you, you guys have a history. >> i worked in london, it was fantastic. memiller used to sit next to for two years in london. i still have the scars spirit -- have the scars. >> thank you. >> i didn't know we had that track. >> i never get collapse. -- get collapse -- i never get claps. of serious talk

about the global economy at the world economic forum. there has been a lot of partying and late night at the p&l bar. behind thee you scene with some davos regulars.

>> you are watching the european close, let's get a quick check on how stocks are trading. we are coming off of our highs of the session. abigail doolittle has more from the nasdaq. >> that is true for big tech. shares are higher today ahead of earnings. facebook's outlook is positive. several catalysts including instagram and the potential extension into china. oppenheimer is also bullish. the company is expected to perfect -- expected a strong

fourth quarter. turning to the index itself, the stock is nicely higher after apple could rally 50% by september. he is making the bold call to buy stock into september. if shares are likely to trade higher into the intro of the iphone seven later this year. >> abigail doolittle at the nasdaq. a time for the bloomberg business flash. a look at the biggest business stories. how much is having a search bar -- he iphone this came out of oracle's copyright laws. apple gets a cut of the revenue google makes through that search bar. shares of sprint climbed the most in five months. the nation's fourth largest wireless carrier moved up the date it will report earnings.

and bonds fell to a multi-year low. the company is expected to report its first full years of inset -- of subscriber gains eight years. shares of american express are down the most. fourth-quarter profit dropped 38 percent. and amex shares have been costly to its biggest shareholders. about $1 billion today. -- it is down about $1 billion today. that is the leg -- that is the latest bloomberg business flash. >> we can't cover luxury without talking about doubles. it has been a scene of late nights and dinner parties. who better to talk all about this? they have been in the thick of the beluga caviar and the first champagne area is he sitting?

where are the parties to be seeing? i'm not going to mention i wasr or not i got in or rejected in shame or whether or not my colleague matt campbell cotton or whether or not another one of our colleagues got an. a lot of deals are done. we shouldn't give too much credence to what happens here. we had an exclusive interview with the prime minister of greece. he talked about greece being open for business. s&p credit rating. we are not even wearing coats.

them a give us the party highlight of your week. the party us highlight of your week. >> it has been a strange year. some of the parties have dialed back a little bit. a big party thrown by mckinsey. lots of action on the dance floor. some poodle kratz getting down. kratz -- some plutocrats. whatever party you are at there is always a better party. >> i am convinced you guys have and start -- haven't stopped .artying how has that played into your >> it wasn't quite like last year. expensive to more

everyone, which doesn't matter because they can afford the 20% increase. absurd.es are i think i paid 18 swiss franc for a hot dog earlier in the week. things are expensive. there was a reception at j.p. morgan chase. jamie dimon, he welcomes you. it was in an art alaric. we have some -- an art gallery. paintinget a kershner for 15 million pounds. beautiful location. the captains of finance. i think they are more interested in doing deals. matt and i are art historians. we are more important that we are more focused on the sourcing -- we are more focused on the

sourcing. >> i don't think i'm going to see any of my american colleagues. i think they are just going to stay there in the outs. you fly to miami, spent 24 hours in miami, then come out. can read more about luxury at bloomberg pursuits, your destination for the finest things including travel, watches, dining, and property. >> a quick reminder about how europe finished the day. blink and you would have missed it. forest two-day gain the stoxx 600. see you at 11.

>> it is known in new york, 1:00 a.m. in hong kong. welcome to bloomberg market. in new york.

from bloomberg world headquarters in new york, good afternoon. i am alix steel. here is what we're watching at this hour. like the situation after the human crisis. bank of japan governor is not worried. he says even if china's economy is down more, there will be no global recession. he is not alone, black rock larry fink says he is advising people to buy. on theg of buying addict, gene munster says apple shares are about to pop. apples why he expects shares to go up 50% by the end of summer. for more on today's activity, going to the markets desk.