♪ manus: good morning from bloomberg headquarters in dubai. i'm manus cranny. itbal stocks mixed as threatens major economies. new york could see another full lockdown. u.s. deaths top 300,000.

joe biden ask americans to look ahead to the urgent work of getting the pandemic under control as his election win is confirmed by the electoral college. recovery gathers pace. china's strong economy continues into the year end, supported by demand and at home and abroad put stocks are not impressed. welcome to daybreak europe this morning. you are looking at the markets through the prism of solid data from china in terms of recovery. whatlescing around less you would expect and i fiscal stimulus. biden has been confirmed as president. on the others, the reality is we have this slight intervening period, mutation of the virus in london. many gray flying around. s&p 500 back in the green.

how long will the reflation and value trade narrative continue? that is the question you need to ask yourself. as the fed meets, will they give more guidance and when will the operation come to bear? stock futures are down by one quarter of 1%. let's have a look at the rest of the markets. you have a number of different themes at play. the oil market, pausing from one of those occasional m oments. amazing how the narrative changes. last week, the vaccine was a silver bullet. today, we are concerned about new york and london going into new levels of lockdown. curb your enthusiasm from opec. they are saying demand outlook will fall about one million barrels per day going into next quarter, the first quarter of next year. stockpiles by 200 million barrels above the five-year moving average. 10 year government bond yields

at .9%, rounding up. the question you need to ask yourself is can you get to 1.4%. they want to be long. everybody wants to be long, consents and straight. let's get to the breaking news because credit suisse delivered top lines. credit suisse says the wealth 5 toement pretax numbers 5.5 billion. taking to the helm and studied some new targets. and a lot of baggage to carry over with him. loan losses and scandals. aboutquities, one tier, 12.5%. that will be achieved by the first half of next year. e capital, on tier on 12.5%.

medium-term investment bank return of 10% to 15%. that is quite wide. $5.5xt targets by 2023, billion. the medium-term, they will deliver a return on equity's of 10% to 12%. these are the lines coming through. contextualize the risk factors in credit suisse at the moment. the ambition, and we will get to our reporter in switzerland at a moment. really by centralizing risk, if you think about the headwinds we have faced, he took on a lot of these particular issues, historical issues. implosion, $450 million hit. some other lines coming through here. credit suisse says the fourth quarter, the trends are pretty much what we saw on the third quarter. some guidance coming through in terms of the right kind of volatility as opposed to the wrong kind of volatility. we will circle back to the

credit suisse story. there you go. ok. let's reset with our perspective on the world this morning. to london and parts of the southeast of england will head into what is known as pier 3 restrictions from wednesday. that is as the u.k. authorities warned of a new variant of the disease. that could be driving the rapid rise in cases. to be you are, heading towards a second full shutdown. cases and hospitalizations continue at their current pace, according to the governor. there are covid risks aplenty. when it comes to the u.s., they began administering vaccine shots. alex azar tried to reassure the public, tried to reassure them of the necessity of the vaccine. >> this vaccine has gone through clinical trials much larger than many vaccine trials. gone through the drug company's

checks. it has gone through the fda's independent advisory committee. it has been subjected to fda guidelines, publicly published stating what fda would require for approval. finally, it has been authorized by fda's career scientific experts, as i promised. manus: that is all about to take up the vaccine. lawmakers have delivered details of the proposed 908 billion dollars stimulus package. it will be split into two parts and the reflects the deep differences over state aid and liability shield for employers remain. for more, we are joined by derek wallbank, the senior editor. great to have you with me. we were $908 billion. what is the quality of the $748 billion where there is bipartisan support?

thing that would stick out to me most here is if you actually did divorce these two and try to run these side-by-side, what you are allowing people to do is vote for the underlying thing everyone agrees on. and if the thing that is a little bit contentious happens to fall, you still have something going on. it is a sort of procedural way and kind of not give democrats and republicans all of the things that they wanted but get rid of some of the other stuff and hopefully, the argument goes this gives you a little bit of room for runway and actually getting something. it is pretty clear that are a lot of disappointed voices with where the stimulus talks have wound up but in washington, sometimes you take that as progress because everyone is little upset but would rather have it and that is a bill that

gets enacted. you are looking at some of the more positive signs that we have seen around stimulus in a long time. a lot of wall street analysts have said for months this was imminent and all of those predictions have crashed and burned so far. this one, you are starting to see some green shoots. there are some positive signs. this week is critical. it's politics --

great to have you with me this morning. as you look at the bipartisan support, $748 billion -- does it reaffirm the progress stance or do you see it as a step one? as you look at the agenda for of1, $2.8 trillion worth central bank stimulus. that is more than double than what we have ever had before this year. with that amount of stimulus, does that cause this equity darket rallied to perpetuate an allow a stretching valuation to something higher? justine: it depends on which market we are looking at. we know they are not agreed. the markets have priced that in and the valuations are straight

but not across the board. we have seen opportunities and others are overvalued. as all-around positioning in the markets and where we can find value according to the valuations driven for historical values. manus: where are those? you split your tech down in terms of how you want to approach tech. the two big consensus narratives that most of my guests have spoken about his about inflation and preparedness for value. as you look across the world, where is value best propositioned for you? justine: if we are talking about value from a multiple perspective, the various areas we can look at are in certain sectors. if we are looking at tech, some of the big names, we spoke about longevity and health care. those are big areas where we see a lot of value and interest at

the moment. you look at a value play relative to growth, we will permit are readily focus back on the u.k. while there has been a lot of value companies that have been heavily hit this year and sectors such as hotels and her ines, industrials, homebuilders. yes, we have seen a rally over the last week in the potential stretch into value. we still see a lot of opportunity in those relative to where they could trade at. manus: i quite like the inflation is trade. everyone thinks bonds cannot break 1%. i am a great disbeliever. morgan stanley says you can hit 1.5% next year. what is the tolerance level from the fed? morgan stanley said 1.45% last year. do you think the fed would sit easily with rates at 1.5%? what does it really mean for the

fed? breakeven above 2%? justine: being a portfolio manager versus a macroeconomists, it is hard to find which rate the fed will agree on eventually. we are looking at a reflation trade and how portfolios are positioned if inflation is introduced into the market it is more of a concern about once the fed ultimately agrees on. manus: ok. i am checked in. we can pick it up in a moment in terms of what 1.5% might do to the equity trade. justine stays with me. we had mickey mouse the last time we were together select like to see the draft come alive at the beginning of the next part of the program. progress, the economic gathers pace but fails to respond to the height.

we have the details. ♪

>> at the time, president trump called his electoral college tally a landslide. by his own standard, these numbers represented a clear victory then and i respectfully suggest you so now. manus: president-elect joe biden there, noting that president trump claimed a comfortable victory in 2016 after receiving the same number of electoral college votes as biden. 306. electoral college setting up his inauguration for january 20. we have the data this morning. the economic recovery is gathering momentum supported by strong demand at home and

abroad. a steady rebound that puts china further ahead than its peers is the only major economy likely to expand this year. james, great to have you with me. the industrial economy basically looks to have recovered all of the losses from earlier in the year but the consumer spending is still lacking. what drives the consumer lower russian mar? james: it was very easy for china to restart in the second quarter of this year. global demand has really pulled that strongly. they were seeking massive exports. the biggest amount of exports in october and new record in november. you are seeing a rebound in house buildings in china but that is helping the industrial sector. chineseetbooks of consumers are still not seeing those effects. we are seeing consumer spending

growing now but it is done for the holiday year. millions of people lost their jobs, lost income, and they have not been made whole by what happens in the first quarter and second quarter of this year. china's consumers are still holding back, or at least, they are spending now but that is not making up for the lack of spending that happened in the first half of the year when they were staying home, unemployed and didn't have any money. we need to see a really strong rebound in chinese consumption owing into next year to see that part of the economy is firing on a engines. prior to the pandemic, consumption to be going up much faster than the industrial sector. we are seeing the industrial sector growing much faster than retail sales. people shopping and going out to restaurants. it is still a very lopsided recovery. even though it is better than other countries in the world. manus: very quickly, we have

seen an injection of cash into the system. $145 billion to the banks. why so? james: it is the end of the year. chinese banks need a lot of money. chinese companies need some of that money to pay for taxes at the end of the year. we have the end regulatory banks to show have enough capital on their books. there is demand from capital. cyclical demand for funds. some loans were coming due this month so those needed to be replaced. is trying toank keep liquidity stable in the economy, not expanding it too much. there is talk the central bank and the government will stop pulling back on the fiscal and monetary stimulus they put in place this year but there are signs of that happening. they are trying to keep it the same without too much and too little. james, thank you so

much. the latest data from china. a quick repack -- recap on the credit suisse headlines. the headlines in the fourth quarter, the current update of where we are in the investment banking side. revenues are ahead of where we were this time last year. a couple of other lines coming through. in januarybuybacks 2021, up to $1.5 billion. some new targets. lemme take some of those top lines. let's get to justine. we have these new figures from credit suisse. i want to put you on the spot to say if you can give me a buy or sell on credit suisse but in principle, the dividend narrative has been the big fullback for a lot of these banks. without those would be allowed to start. your top line on how much bank exposure do you have and what does the painting get you to

take more bank exposure? justine: thanks. when it comes to financials in general, our biggest concern is actually two points. low interest rate environment and how banks could position for bad days. as it comes at the moment, they have over provided which is great and less of a concern from a liquidity standpoint. exposure at the moment is actually giving way to financials. what it would take for us to increase exposure is to be in position in place of uncertainty in the market if that is more of a value play than a growth orientation. we are a quality firm so we to know it is cash flow generation within these financials. we need more clarity in the financials ace in general in order to warrant a position in our portfolio. manus: we just finished talking to james.

i am throwing a lot at you. we will go from banks and then to china. we just have this data that everyone says you have more liquidity and his recovery narrative of 2% for china for this year. , do you up your exposure to china on this quality of data we keep getting from china? bottom stockre pickers. individualus our our companies than macro economic data. we do have an exposure to both china and emerging markets and exposure through any trackers. when we look at china and emerging markets as two examples, yes, the growth figures are encouraging legacy figures returning back to normal.

as you might be aware -- manus: from the bottom up, what was your biggest a closure? sorry, you are about to say that. justine: we recently entered a position into alibaba. it has been topical in the news recently especially with the new bonds. this goes to show our process. we patiently wait and see when valuations are at the current levels. when it comes to a company like haveba, the main things we been focusing on -- we look at the user base and seeing that is growing and how long they have been active for. and how long alibaba is placed to its competitors like amazon and what they charge the users and how much more revenue they generate from that. alibabaing fact is currently charges any vendors 3.8%. amazon actually charges less.

you can see from the numbers of uses increasing and the price they can charge per user, there's a lot of room for opportunity of growth especially in the lack of the increased regulation issues. manus: thank you so much for being with us this morning. what is the name of the giraffe? mickey mouse last time. what is the name of the draft? justine: next quarter sally. manus: sally. ok. ok, we will be back in a moment. my guest host this morning. coming up, we have more to discuss on brexit. deal or no deal? what does it mean for sterling? it is this year's worst g10 currencies supporter even with the rally. this is bloomberg. ♪ wanna lose weight and be healthier?

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manus: this is bloomberg daybreak: europe. i'm manus cranny. the pound has become the worst-performing g10 currencies of the year to date. progress towards a brexit deal could see it clawback some of the losses. not good news for me. the morning call is here and juliette saly. put me out of my misery. maybe i should stepped out to the old money changer. juliette: aren't you grounded? you don't need anything other than your dubai money. you are looking at what you are seeing in terms of the pound versus the euro. this includes peter oppenheimer. if we do see some progress towards a deal against these hard deadlines of december 31, upside of 1.5% to do percent in the pound against the euro. they are saying the best case

scenario is you will see some kind of a thin free-trade agreement. the pound could also rise on the avoidance of a no deal outcome. they are saying any kind of deal could reduce risk in u.k. assets which would benefit the ftse 100. we had goldman sachs strategists once again reiterating their call that they are overweight the ftse 100, particularly when it comes to versus the stoxx 600 . there's a lot of compelling valuation in u.k. stocks but in no deal was returned and could ring the you are rate to one and trigger an 8% fall in domestic stocks. that is there worst case scenario. they are not expecting that, reiterating the call that they will see some finch free-trade agreement and that could see sterling rise against the euro. manus? manus: some interesting calls from goldman. thank you very much, juliette saly with the very latest on the sterling calls. the brexit discussion rolls on. a pathway to a deal narrows.

to consider but is it a chaotic year ahead? our interview right here on bloomberg. ♪

♪ manus: from bloomberg's middle east headquarters in dubai, i'm manus cranny. your top stories. curbing the virus. global stocks mixed as restrictions threatened major economies. london tightens the roles as new york could see a further lockdown. u.s. deaths top 300,000. joe biden ask americans to look

ahead to the urgent work of getting the pandemic under control, as his election when is confirmed by the electoral college. credit suisse will restart share buybacks in january of up to 1.5 billion swiss francs. it sees fourth quarter investment bank revenues ahead of 2019. to the markets. a little bit of hesitancy on the reality of what covid restrictions might mean versus robust in line data from china. industrial production's, mixed assets and retail sales. a little bit of a pullback . s&p futures up. valuations, are they stretched? that is the question i asked. in 1999, we went on to see valuations in the 27th before its theoretical jews came out of the markets. the oil in the

cut. that is weighing a little bit on the oil sentiment this morning. 10 year treasuries unchanged at .89%. morgan stanley says you are 1.25% bysee levels of the end of next year. let me reflect back and make sure it is morgan stanley. i nearly made a faux pas. we don't want to belong. the dollar is back to flat. there is this some uneasiness about what really is happening with the number of major cities going back into lockdown, or potential lockdown. london and the southeast of england, are heading into tier three restrictions from wednesday. that is the latest news in the u.k. the authorities warned of a new variance of the disease that could be driving a rapid rise. in new york, it is heading towards a second full shutdown. as if cases and hospitalizations

continue the current pace, according to the governor andrew cuomo. the u.s. again administrating its first vaccine shots yesterday. the secretary of health and human services alex azar trying to reassure the public of the safety of the vaccine. >> this vaccine has gone through clinical trials much larger than any vaccine trials. it has gone through the drug companies checks. it has gone through an independent data and safety monitoring board. it has gone through the fds independent advisory committee. it has been subjected to fda guidelines publicly published stating what the fda would require for approval. finally, it has been authorized by fda's career scientific experts as i promised. as covid-19 vaccines begin to receive emergency approval, the race is on to distribute the shot. now an opportunities among companies that are responsible

for this global rollout. with the details is dani burger. it is where to go now in terms of investing but you see some pretty amazing returns in covid-19 exposure stocks. good morning. dani: good morning. that is right. the picture is complicated when investing in the vaccine makers themselves, will profits actually look like? and then you have companies like astrazeneca for example which has to have more global tests. still, we have seen companies like biontech rally 50% since late october. pfizer is up more than 20%. if you want to put your money in the supply chain, it is complex. it has been called the most complex distribution puzzle of our time but one of those pieces after you have the vaccine made that has seen their shares rally -- pfizer's vaccine at -70 degrees celsius so we have seen

in south korea surge more than 300%. really more remarkable. some of the companies involved in freezers and moving things in cold storage, those have done well this year also. it is not just the cold storage. it is actually disturbing the vaccine. a variety of strategist call of that different sectors that would do well as a vaccine starts to rollout you have delivery services like fedex and ups. air carriers, this is one like air france, lufthansa come all of them will be very crucial in global distribution of the company. last mile transporters as well as u.s. pharmacy chains. --ins like cvs, wall street walgreen come all of those will be important. the last step, actually getting the shot which starts into the arms of global populations.

of of theely set exposure to covid-19. to airbus. the aviation industry faces a complex set of issues created by covid-19 and the pandemic. >> it is going to be very complex to move from today to a normalized situation probably end of 2021, 2022. medicatedbe problem there is hope. we will probably see in much difficult situation by the end of next year than the one we see at the end of 2020 if we look at in theg-term, it is vicinity of travel by flight. we are still in the business that will grow.

obviously, if we can manage to challenge global co2 emissions. that is what we have put in our agenda, this condition to the carbonized flight as the top priority. >> you see your customer struggling for the past that plus. -- 10 months you will see what the projections are. we have seen three to five years before normal volume returns. how do you plan for production in the face of those kinds of expectations? >> we have to adapt very quickly end of the first quarter, beginning of the second quarter of this year to the new environment. we have to make assumptions. we have worked very closely with our customers. airline by airline, plane biplane, to be able to reschedule and organize in a way that was manageable for us and

acceptable for our customers in the face of a lot of uncertainty. doneis what we have beginning of the second quarter. onhave adapted to the rate the single-line and is proven not to be too far away from the right level of prediction. we have seen that 2014, we anticipate staying at that range. quarter, we have far less planes than we produced. the end of june, we are reducing. how do we plan for the next one or two years? again, by working closely with the customers also understanding, from all the firms with many other organizations access to data. recovery oft the the traffic will look like and the impact this will have.

of fasty, it is a sign change and adaptation of humility of trying to understand what the future will look like and making sure we can change when thanks are modified in the environment. for all governments, all companies, all individuals. a time we have to show a lot of flex ability and change. the airbus ceo speaking to bloomberg. laura wright is with me. laura: thanks. joe biden is now officially the president-elect of the electoral college confirmed his victory. it puts them over the 270 votes needed to win and will be inaugurated as the 46th president of january 20.

speaking after the vote, he noted his 306 electoral votes as exactly the same number president trump current in 2016. >> at the time, president trump called his electoral college tally a landslide. by his own standards, these numbers represented a clear victory then and i respectfully suggest they do so now. >> u.s. attorney general william barr is stepping down after publicly disagreeing with president trump's voter fraud at the 2020 election. president trump confirmed it on twitter saying barr has done an outstanding job. he will be succeeded by deputy attorney general jeffrey rosen. china's recovery gathers pace in november, supported by strong demand from home and abroad. it puts the nation even further have of its peers as the only major economy likely to expand

this year. exports have rocketed in recent months. the return of virus restrictions in many parts of the world has fueled demand for medical equipment and electronic devices. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus? manus: thank you very much for the update. coming up, credit suisse sees the investment bank raking in more money this quarter than the last three months of 2019. we get the details of swiss bank strategies. the update right here on bloomberg. ♪

manus: it is daybreak era. credit suisse is the investment

bank continues to perform well and revenues for this quarter are ahead of last year the bank confirmed the target will turn untenantable equity. also planning to restart the share buyback in january. let's get to our reporter in zurich, our finance reporter. great to have you with me this morning. we have a new set of targets. i got the sense we will see china reset the agenda at torilla galvanize and refocus the market on what we can achieve and not the problems that are inherited. marian: that is correct. credit suisse has indeed had a bumpy year. yes, reconfirming the target of 10% to 12% which is good news since nine months they were at 9.5% given the headwinds this year. increased profit target for wealth management which indicates that think they

can do better. we are looking at between 5 billion and 5.5 billion swiss francs by 2023. that is the share buyback which investors will be happy about, starting in january 2021. they are looking to buy back 1.5 billion' swiss francs worth of shares. manus: in terms of the buyback, the dividend has been a huge story for all european banks and swiss banks. how important is this buyback? is this a small to the market? marion: i think it is definitely significant, but it is in line with peers. ubs also announce potential share buybacks as well. credit suisse had to pause a share buyback we were doing it earlier this year because of the pandemic. it is a little bit of a continuation, but surely, this

indicates they are in strong position to offer that which is good news, i guess. manus: to the investment bank. ubs,usly, the skew at smaller, tighter and leaner versus credit suisse. this is going to be taken quite well, i would imagine. the investment bank ahead of last year's fourth quarter. marion: yes, that is certainly great news. they do indicate performance will be looking a lot like the third quarter, which means a lot of transactional revenues from both clients and in asia, and across investment bank. something to keep in mind, the investment bank is undergoing a restructuring, combining the trading at advisor units. there is still a little bit of uncertainty so what exactly performance will look like. we were remember in the third quarter, he did great in trading but fell short of peers. we will see how that goes for the fourth quarter.

on a full year guidance, 4q guidance is they've had two hits to profit. they have a right down from a hedge fund state. there was some long outstanding litigations in the u.s. that will take another 389 million position which will hit earnings as well. manus: this is part of a narrative that you saw and the rest of the team put together. it is a lovely piece. this reckoning. the baggage he has inherited where the lending perhaps was, some would say a little more aggressive. what do you think his biggest issue is? is it managing those historical issues? does he want to centralize everything? marion: i think there's a lot of indication he wants to take back control to headquarters and try to manage a little better what's going on in this area that

credit suisse has around the world. he will have to sort out these legacy issues. it is something he has been dealing with a lot this year. i think he's trying to turn the page towards where we can grow. notably, they have a few different areas they want to invest in. the wealth division, they want to get into more private market deals in the investment banks will be investing in china platforms. there is also i.t. infrastructure they want to make. he is setting a new page. we can do more, we can do better and don't have to be dragged down by these legacy issues. manus: ok, thank you so much. great reporting as the story contextualizes. the top of credit suisse. ubs up 5%. that. suisse in excess of coming up, oil is sliding on concerns that more lockdowns

could slow the global recovery. we discuss. coming up on >> this is bloomberg.

manus: it is daybreak europe. first word news. laura wright is with me. byra: london is being hit the uk's toughest restrictions from this wednesday. u.k. authorities warning of a new variance of coronavirus may be driving a rapid rise in cases. the switch to tier three means pubs and restaurants will close except for serving takeaway. the health secretary says the new measures are essential to protect lives and jobs in the longer term. u.s. attorney general william barr is stepping down, after probably disagreeing with

president trump's claims of widespread voter fraud at the 2020 elections. trump confirmed the move on twitter saying he has done an outstanding job and will be succeeded by enacting basis by deputy attorney general jeff rosen. government agencies and major corporations out of the u.s. are reviewing their computer systems for signs of security breaches after a hacking campaign inserted malware and software updates from companies solarwinds. it has more than 300,000 customers worldwide, including the uk's national health service and nato. new york is heading toward a second full shutdown, that is according to governor andrew cuomo. he says the new rules will come in place if cases and hospitalizations continue at their current pace. also bill de blasio is warning of new restrictions and urging employees to work remotely where possible. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700

journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. oil is dipping this morning, concerns about lockdowns, slow down in the global recovery. and that potentially hitting fuel demand. opec is cutting its consumption forecast, eroding the earlier optimism from the rollout of vaccines. let's bring in our middle east energy reporter anthony dipaola. good to have you with me. does this indicate the markets have perhaps been overstretched, overdone and overrun on the upside on vaccine and this morning we deal with a little bit of a fresher realistic narrative? manus: good morning. anthony: yeah, i think we have run up to some of the highest prices this year where we were at a nine-month high. at the end of next week. if you look back to the beginning of the year, we were

close to $70 a barrel so that seems like a world away in the market we are looking at. inkets were really pricing opec standing pat on production cuts. they really took a boost when we got the vaccine news that vaccines were coming in. neededd not stand pat they did not roll over those cuts of the same level for another quarter as the market expected and they brought more oil back into the market. the positivity around the vaccines and some of the recoveries in the market we have seen have boosted the prices. until we get those vaccines in people's arms and the economies start to recovery, we will have these back and forths, falling back from a high for nine months that will happen as we see some negative news going forward and

we are coming into a slower month for demand so we might se some ce months. of the supplys side, the one line at the end of the story was it is a five-year average. are 200oped markets, we million barrels above the five-year average. this is something we used to look a great deal at in terms of the balance of the markets. just how oversupplied is it if we think libya and iran, not really talking about those, and iran trying to double its production for next year? that's a lot of headwinds to come next year, aren't there? anthony: potentially there will. libya already got in the market now, about one million barrels a day. that really depends on how long they can maintain that. we have seen libya come back and

have other political issues. hopefully the party can keep the peace. minimum andg to a keep the oil pumping. that will be a positive for the country. under the quota system because they had been producing so little. also noto -- iran under the quota system because they've had productions slashed and exports dropped almost close to nothing compared to what they used to export because of the u.s. sanctions. there's a lot of optimism around iran that potentially the biden administration could get back into the nuclear deal that the obama administration agreed to with iran. we have the iranian president saying they want to get back to

production. manus? manus: anthony, we have to draw a line under it. let's see whether demand and supply manages to balance going into next year. anthony dipaola, resident energy reporter in the middle east. daybreak europe and that market open is next with anna and m att. ♪

anna: good morning and welcome to "bloomberg markets: european open." i'm anna edwards alongside matt miller. matt: good morning, the markets say no time for complacency. 10 days until christmas, and risk sentiments hours. european futures are lower, the cash trade is an hour away. these are your top headlines.