smith? >> smith is based on -- in london. the main takeaway that they are separating their medical business's putting that off from the main group. they are concentrating under industrials. the technology while freeing the medical unit to deliver on its full potential, alongside this, they reiterated their full-year expectations. matt: thanks for a much. -- very much. you can get all the latest stocks the stories by typing first go on your bloomberg terminal and by the mobile app under the news heading. ofing up, we have the start trading across europe, four minutes to go until the open on a really important day for europe, for brexit, and for oil. this is bloomberg. ♪ anna: less than a minutes to go to the start cash equity trading. the euro-dollar is fairly flat, oil prices and focus. we continue to see some weakness. even though these factors into the equity session. this is the picture over in asia, a fairly seesaw session, but china came up pretty badly. you can see it's weaker at the end of the session. the pound, a lot of focus on the yesterday, arse, big surge in the pound as a result of the deal. how will this go down in eu 27? how will this go down in the? she has to convince the before the house of commons. , this isthat in mind what we expect from the equity markets. we are expecting to go a little weaker at the start of the day. concern once again about trade tensions. just how negative is that for oil majors and where else does that take us? as we say, there are headlines as well. will we see oil majors bounce a little bit as a result of these headlines? president trump is not going to take action. generally, the director travel is a negative one. opening down by a tenths of 1%. the ibex down by a tenths of 1%. it looks pretty red from here. matt: that's right, a lot of red across the imap. floor,take a look at our you can see that almost all sectors are trading down. sliver next tole what we have labeled other, which i believe is information technology. sliver is real estate, that is the only gaining sector at all. energy is leading the way down as you might expect because of the oil price. crude dropping for a 13th consecutive session after a 7% drop yesterday. materials also down, financials down, and the i.t. labeled other also in the red. everything, with the exception of some consumer discretionary, some utilities and real estate really dropping this morning. what do you see as far as the individual names? anna: let's have a look at the function there. upside, we've got the tech group. on,ing about this earlier spitting up the medical business. they try to sell it back in september, that deal fell through. now we see them making headlines talking about splitting off. that was a fascinating conversation over at ap mueller. yes, there is, some inventory building people are trying to get ahead of any tariffs still to come. broadly speaking, they have a slow but reasonable growth rate in terms of the overall trade story. let's have a look at the downside briefly. we do have a bit of an oil flavor to what is going on. lundin petroleum in there as well. worth keeping an eye on. in terms of that car story, we seeing the car stocks a little higher, bmw a little higher. turning to the oil story, crude is showing little sign of recovering from its unprecedented decline. turning to the oil story, crude is showing little sign of recovering from its unprecedented decline. wti plunged more than 7%, its biggest drop in three years. that as opec warns demand is falling faster than expected, underlining why saudi arabia and other members are signaling output cuts. joining us now is opec president and uae energy minister. good to have a witness. do you think that opec needs to act and act soon? yeah, first of all, it's good to be with you. had the monetary committee meeting. we have said that we need to change in strategy. 2019 is going to have its own challenges, and we are ready at our next meeting to change strategy and adapt to whatever is needed to maintain the balance on the supply and demand. we closely monitor the inventories and fundamentals. we are intending to keep the inventories at the level where riskare with avoiding the of the buildup. but at the same time, avoiding the risk of a major throw down from the inventories. people, consumers, as well as at the point of balance bring in investment. but at the same time, enabling the world economy to grow. ask, how much does the increase in production in the u.s. with their shale resources and the unexpectedly high amount of waivers given out for the iranian sanctions thatase other oil demand you were not expecting for other oil supply you were not expecting how much does that play into the equation? it does play a significant role in the equation. whenever we look at our balanceon, it is to whatever it comes from, from those producers outside the group. right, most of the exceeded one comes to the production from the united states and from other producers as well. that is why we need to always monitor those factors and adjust as needed to the markets balance. past tocuts in the , and if wets balance need to cut production to adjust to keep the market balanced, we will do that. but we will not overdo it, we are always going to keep that isance and our reference going to be the five-year average that we worked very hard with our non-opec members to achieve. it comes to the question are we going to act and act fast, i think, in early december, we have been meeting. thoseam expecting that groups of responsible producers will reach a consensus on the right measures to keep the market balanced. december is still a way off, but your best guess as to how much needs to be cut in september? mc,hen we met at the g.m. we asked to look at recommendations on the required adjustment. as you can see, october has been a very fluctuating month. we are moving now in november and seeing fluctuations. but there are things outside of our control, which are the speculations of market fundamentalists, they are still justify theot to drop we had yesterday, but at the same time, we are dealing with so many other factors. i think that when we talk about the level, we will need to monitor, after a mentioned, how non-opec.ming from will be studied by the technical group and they inl ring that to the meeting december. is that thatn adjustment and that group will reach a consensus on whatever is required to adjust the market. i cannot throw in a number prematurely, but whatever is thatred, i have confidence the groups that have worked very hard to achieve what they have achieved when not just let go of it in 2019. matt: assuming you make those cuts, and we have heard numbers, for example, the secretary general -- the secretary-general and others that the should be about one million barrels cut among opec and friends next month, where you think that the right supply energy equation would put the oil price? you for a right to price on brent crude next month? >> when it comes to what feels isht it is the results, it not a target for us. we are targeting a balance in and it is aies focus for us to look at. the average five years would be a good reference. lastannot fit it to the dollar, but we will try to keep it at the level we had in the past. i would say 3-4 months. the price of oil is a target, and we cannot target a price. we conserve and we hear the consumers, whether they are from the united states, whether they are from china, india. opec has transformed significantly, and hearing those voices in june when we merged and there was an acquirement -- that available production was not enough, we made sure to bring that production. and theber when we meet whatevernts to cartel, the required cut, we will cut in accordance to what we agree on. whatever price they end up with, the market will decide the price, but not us as a group. we are targeting what is good for consumers to keep the economy growing. and at the same time, enable us through investments and require investors to continue investing in this important commodity. the market will decide. anna: minister, thank you very much. the opec energy minister joining us there, a very timely interview, with oil prices continuing to fall. down by .4%. up next, we talk about brexit. the most recent headline over the last 10 minutes. benches,s on the back said she thinks this deal is as good as it gets. we talk about that next. this is bloomberg. ♪ anna: welcome back to the european open. we are 14 minutes into the trading session. month after month of deadlock, theresa may has struck a brexit deal. agoshe has to convince her with it and overcome nearly impossible on. joining us now is a bloomberg u.k. policy reporter. great to get your perspective. i guess how ministers decided to vote might depend on how relevant they think the backstop is. it is still a backstop, it's not supposed to be needed, but i've seen lots of different perspectives. what is the news you are here? -- hearing? >> that's right, anna. the backstop suggests it might be invoked if nothing else is. that if theyem is get this deal a grade, something has to change for future agreements to come into play. think that if nothing changes, that backstop may have to be invoked. it may well have to choose. anna: one of the factions we need to watch for on this than. -- then. easy to seein, it's things that labor won't like, the brexiteers more like, and surely the dup says they don't want to vote for it. so what are the factions to watch for? >> you've got hurt loyalists, people who will vote for her plan. as you have just mentioned, and a super he, a lead -- anna subari has tweeted that this plan is the best we will get. suggesting she will vote for it and her colleagues will as well. last night and this morning, we have had brexiteers saying that this is absolutely unacceptable, and she needs labor on the side. labor really wants a general election. they have to weigh whether or not they can back this plan. they say they want the u.k. to stay in a customs union. actually, you know, this plan they have put forward looks quite similar to labor's plan, whether it is enough for them to back it. it remains to be seen. matt: it looks quite similar, jess, to the eu's plan. is this not what they wanted? >> what may has been trying to put forward this whole time is drawing a compromise that and that iseryone .otentially an apostle tax it is really going to be down to the details. we will see that document, potentially later today or in the week. it is going to be a case of people going through those details, see whether it fits in with the uk's relationship. years potentially becoming decades. thank you so much, a busy day for the u.k. politics day team here. we go to an indispensable market perspective. maria, great to have you with us. this shows overnight pound volatility spike in, but the increase we saw, it is up by more than 1% and we are back down. we have not moved very far this week overall. just outlining how difficult it will be to get the next bit of politics is done. what is the upside though? the upside potential for the pound if we do see this get through. maria: first of all, thanks for having me. view is that the pound is about 10% undervalued at the current level. having said that, it is very, very hard convince investors right now to go and buy sterling. i think your chart tells a perfect story, it is just so volatile. even if you happen to be on the not many are allowed to have risk limits that go into the street. positioninginvestor is probably close to the benchmark. so yes, sterling is undervalued, we all know it, but by the nature of the outcome, it's almost like you're reconcilable differences.ble u.k. equities are pretty much uninvestable. not because there are going to go down, they're actually ,ositive on earnings prospects energy staples doing better after a long time for structural weakness, you cannot just invest. given the spikes in volatility. anna: ok, matt. that therere saying are positive prospects for u.k. stocks and assets i wonder about the pound. is already priced in for a deal? none of what we are getting here is surprising. clearly, theresa may is up against big odds it through but it seems like the deal is going through exactly as expected. no.ja: yes and the market is probably expecting some sort of deal, but having said that, as i said, we're still pass the income. we still have strong volatility. it is still extremely hard to convince investors to act on this. anna: let me ask you about the bank of england. i think it was nomura calling this wage data blockbuster. setting the course for rate hikes. if we get some stability on brexit which is a big if, just how high that they have tied? if we did not have brexit, we would be hiking a lot more. but it is impossible to ignore brexit. is hard to expect anything more than one-year. matt: our guest is going to stick with us, the senior multi-asset charges at state street. we are plenty more to talk about. we have italy to talk about, the oil situation is amazing. and of course, german gdp is interesting, german gdp contracted more than expected in the quarter. german shows making a splash outside the country in the last years, i'm talking about television shows. how is the market for tv inside europe's biggest economy? pushwithout accelerating into local language content by netflix and slowing advertising broadcaster professionals have responded with a near 500 million euro -- bet on german programming. joining us on the phone from of the company. max, thanks for joining us. first off, let me get your expectation for the payoff on this investment you are making in programming. is revenue going to rise next year? max: links are having me, matt. -- thanks for having me, matt. this is about investing in the future. entertainment and broadcasting is at a pivotal moment of change. investing in the future to ensure we can grow for next year and the years to follow. we are putting the consumer view in the middle, focusing on content in sewers -- consumers love. that, we are thatng to be a company will be 50-50 percent digital in the future. we will grow from about 4 billion in revenue to 6 billion. to do that, we must make some investments, so you are right, we are taking up it investments on local content, digital and tech, starting next year at about 120 million euros. we have adjusted our dividend policy to return half of the money directly to shareholders and invested the other half for future growth. a couple questions here, max. one, r germans, who are tory asleep difficult consumers, willing to spend more on television and entertainment as they spend less in the cinema? interested inore german content? to your first question, germans are privileged to have access to a lot of content, including hours. -- ours. we are confident that will continue the, we see a stable television market. i think that is good. time, same point in germans, like everywhere else in the world, are taking on more streaming offers and working very hard to create a streaming platform that is already in place and will be upgraded. the best way to think about is the german hulu, one aggregate platform writing get all of the things i love use of content to sports. excited about that. good morning, max. he saw a drop your share price, a bad one day fall. can you say to your investors to make sure they come along with you? anna.ood question, the markets reacted because, of course, the combination. investments are needed in the future, adjusting dividend policy. that is a bit of a package. but it has got to be done to get us right for the future. topve spoken with a lot of investors and we have had a lot of feedback. people are largely saying we are doing the right thing. invest in the future of the business, which is what we are doing. they are looking for the probe points, can you do that? we believe yes. can you take your exciting portfolio e-commerce businesses, grow them at an accelerated rate , and then can you take your studio business, which is german we make for amazon and other things, and can you scale back and increase the level of synergy? we are focused on all of those three things. today's capital market day is all about putting proof. matt: thanks for your time, max. up next, investment grades adhere. -- bad yar. this is bloomberg. ♪ i am a family man. i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. matt: it is a deal. theresa may riches of brexit agreement, but ken sheikh -- but can she secure enough votes? sterling volatility spikes though the price doesn't move. wti extended declines. opec warned demand is falling faster than expect and maersk raises its forecast range. global trade growth will be slow, but reasonable. welcome to "bloomberg markets: the european open." i am matt miller in berlin alongside anna edwards at bloomberg's european headquarters in london. anna: we have a host of news flow to deal with on european equity markets. let's see how this played out for individual stocks. autos, oil,round italy, the list goes on. iliad is a telecoms operator in france with results out. is also up 60%, added to the msci index, driving them higher. a couple of german names here. metro go higher. smithst off from its company. the ipo to announce would not be possible. to the downside, we have wirecard moving lower. certain digital payment flavor. the regional index on the ipo. they talk about margins being ambitious, marching -- margin targets being ambitious. let's get a first word news update with desley humphrey. after more than a year of negotiations, prime minister theresa may has clinched a exit deal with the european union. rallied onround -- preventing a border emerging in ireland. she now faces getting the deal past in your own party with many on both sides of the debate reportedly unhappy ministers meet at downing street later today where they will have to decided to back it or resign. the white house says the u.s. and china have resumed contact at all levels and president trade in xi will talk argentina at the end of the month. larry kudlow it is better to talk the not to come yet he warned there is no certainty china will agree to u.s. demands. the u.s. is said to have pu