Deutsche Bank Reports Q3 Pretax profit €18M (includes €1.2B in litigation related charges)) v €642Me; Rev €7.7B v €7.66Be - Q3 total Rev -10% - Corporate Banking and Securities Net Rev €2.9B (includes DVA gain of €24M) v €3.9B y/y - Debt sales and trading Net Rev €1.3B v 1.6Be, -48% y/y (rates and credit tarding hurt by lower client activity and difficult trading conditions; fx revenues hurt by subdued market environment; commodities hurt by weaker client activity) - Equity sales and trading Rev €643M, +8% y/y (supported by equity derivatives business) >- GTB -2% y/y - Asset Management Rev +2% - Loan loss provisions €512M v €406Me - Equity origination €135M v €142Me - Debt origination €364M v €325Me - Litigation reserve €4.1B - 9-month ROE for core bank 10.3% - Tier 1 common equity ratio 9.7% - Post tax ROE avg 4.9%; Core bank 10.3%
UBS Reports Q3 Net profit CHF577M v CHF601Me, Op Pretax profit adj CHF484M (incl CHF586M litigation charge) v CHF937Me, Rev CHF6.26B v CHF6.7Be Group metrics: - Net interest income: CHF1.55B v CHF1.53B y/y - ROE: 4.9% v -17.3% y/y - BIS Basel III common equity tier 1 capital ratio (fully applied): 11.9% v 11.2% y/y - Net new money growth: -0.2% v +2.5% y/y - Net fee and commission income: -2% y/y - Net trading income: -33% y/y - Provisions for litigation, regulatory and similar matters: CHF586M v 239M y/y
- Wealth management net new money growth: 2.3% v 3.9% y/y - Wealth management Americas net new money growth: 0.9% v 2.4% y/y
Investment banking: - Pretax Op profit CHF251M v CHF92M y/y - Op income CHF1.71M v CHF1.83M y/y (Advisory -26%, Equity Capital Markets -6%, Debt Capital Markets -25%, Investor Client Services +5% (equities +23%, FICC -25%)) - Average VaR: CHF10M v CHF26M y/y - Compensation ratio: 51.4% v 59.9% y/y
Global asset managment: - Net management fees -2% y/y - Net new money growth: -5.1% v +1.2% y/y
Comments: - FINMA to impose temporary 50% add-on to advanced measurement approach-based operational risk-related RWA in relation to litigation, compliance and operational risk matters - To result in ROE goal of 15% by 2015 to be delayed at least one year and an additional operational risk-related RWA of approx. CHF28B - To effect fully applied Basel III CET1 ratio by 130bps with a net effect of 30bps after 100bps contribution from Stab-Fund
France : • Ipsen (IPN FP), 7:00 a.m., 3Q rev. EU296m • Eutelsat (ETL FP), 5:30pm, 1Q rev. EU324m • Mersen (MRN FP), 5:30pm, 3Q rev., no est. • M6-Metropole Television (MMT FP), 5:30pm, 3Q rev. EU288m • Nexity (NXI FP), 5:30pm, 3Q rev., no est. • Store Electronic (SESL FP), 5:30pm, no est.
Germany : • Deutsche Bank (DBK GR), 7am, 3Q earnings, click here for estimates • Linde (LIN GR), 7:30am, 3Q earnings, click here for estimates • DMG Mori Seiki (GIL GR),7:30am, 3Q earnings, click here for estimates • Dialog Semiconductor (DLG GR), 7:30am, 3Q earnings, click here for estimates • MAN SE (MAN GR), 7:45am, 3Q earnings, click here for estimates • PSI (PSAN GR), 9:00am, 3Q earnings, click here for estimates • Deutsche Boerse (DB1 GR), 7:00pm, 3Q earnings, click here for estimates • Qiagen (QIA GR), 9pm, 3Q earnings, click here for estimates
UK : • BP (BP/ LN) 7am, 3Q rev. $90.3b, adj. net $3.36b • Lloyds Banking (LLOY LN) 7am, 3Q rev. GBP4.61b, pretax GBP1.43b • Standard Chartered (STAN LN) 4am, 3Q sales, IMS • Glanbia (GLB ID) 7am, 3Q sales, IMS • Playtech (PLAY LN) 7am, 3Q sales
Nordic : • Alfa Laval (ALFA SS) 7:30am, 3Q, see ests. • Innofactor (IFA1V FH) 7:30am, 3Q • Poeyry (POY1V FH) 7:30am, 3Q • Saab (SAABB SS) 7:30am, 3Q, see ests. • Lindab International (LIAB SS) 7:40am, 3Q • Swedish Match (SWMA SS) 8:15am, 3Q, see ests. • DSV (DSV DC) 8-9am, 3Q, see ests. • Vattenfall (VATT SS), 9am, 3Q • Affecto (AFE1V FH) 11:30am, 3Q • Nokia (NOK1V FH) 12pm, 3Q, see ests. • Nokia Solutions and Networks (752212Z FH) 12:30pm, 3Q • Sydbank (SYDB DC) 1:30pm, 3Q • Aspiro (ASP SS) • Borregaard (BRG NO) 3Q • Dantax (DANTB DC) 1Q • Exiqon (EXQ DC) 3Q • Fred Olsen Energy (FOE NO) 3Q • HMS Networks (HMS SS) • Itera (ITE NO) 3Q • Kabe (KABEB SS) • Multiq (MULQ SS) • Prevas (PREVB SS) • QPR Software (QPR1V FH) 3Q • Telio Holding (TELIO NO) 3Q • Scanfil (SCL1V FH) 3Q
Italy : market close: Luxottica Group (LUX IM) 3Q, net est EU146.1m
Samsung Electronics remains in the hunt for BlackBerry
Samsung Electronics, a listed South Korean semiconductor and appliance maker, remains in the hunt for BlackBerry, reported NSP News Agency.
Without citing a source, the Korean language report claimed Samsung was known to have participated in the sale process for the Canada-based mobile-device maker. The report claimed five bidders - Samsung Electronics, Google, Lenovo, Cisco, and Fairfax Financial Holdings - are the main contenders.
An earlier report which cited unspecified insider claimed Samsung Electronics is not interested in buying BlackBerry
Source NSP News Agency
Asian Market Update: PBoC injects funds into money markets but tension continues; RBA Gov Stevens talks down AUD
***Observations/Insights*** - Apple beat on the top and bottom line but shares fell about 1% in extended session, with Mac and iPad shipments missing estimates and margins turning slightly softer. Initial knee-jerk response was lower afterhours, before management alleviated concerns over margin pressure being the result of sequential increase in deferrals; Apple was also upbeat on iPad shipment growth. - Australia's ANZ bank reported full-year results; Net interest margins deteriorated 9bps, but cash profit was up marginally; ANZ also forecasted a 4-5% revenue growth in Q4, helping shares rise nearly 2%. - As speculated, the PBoC has resumed its open market operation activity due to rising money market rates, conducting its first liquidity injection in 2 weeks. Despite the initial rush in risk appetite, investors have presumably deemed the CNY13B operation to be too modest, as repo and Shibor rates hit fresh multi-week highs and Shanghai Composite quickly pared its opening gains. - Unable to temper its formal policy statement hawkishness for fear of stoking housing inflation, RBA Gov Stevens employed some verbal intervention at a local conference, forecasting AUD to be "materially lower in the future" given subdued business investment outlook and anticipated decline in terms of trade. - Japan retail sales increase at the fastest pace in 16 months as shoppers line up ahead of the rollout of the higher sales tax. JPY remains bid however, with all eyes now on the BOJ Outlook for Economic Activity and Prices report later this week.
***Economic Data*** - (JP) JAPAN SEPT RETAIL TRADE Y/Y: 3.1% V 1.8%E (16-month high); RETAIL SALES M/M: 1.8% V 0.5%E; LARGE RETAILERS' SALES: 0.7% V 0.7%E - (JP) JAPAN SEPT OVERALL HOUSEHOLD SPENDING Y/Y: 3.7% V 0.5%E (6-month high) - (JP) JAPAN SEPT JOB-TO-APPLICANT RATIO: 0.95 V 0.96E; JOBLESS RATE: 4.0% V 4.0%E - (KR) SOUTH KOREA SEPT CURRENT ACCOUNT: $6.57B V $5.68B PRIOR; GOODS BALANCE: $5.70B V $5.28B PRIOR
***Fixed Income/Commodities/Currencies*** - (CN) PBoC to conduct CNY13B in 7-day reverse repos (first liquidity injection in two weeks) - (AU) Australia MoF (AOFM) sells 1.25% A$200M in 2022 indexed Bonds; avg yield: 1.3483%; bid-to-cover: 3.38x - update - JGB: (JP) Japan MoF sells ¥2.68T in 0.1% 2-yr notes, Avg Yield: 0.094% v 0.093% prior; bid to cover: 7.96x v 5.50x prior - SLV: iShares Silver Trust ETF daily holdings rise to 10,502 tonnes (2-week high) from 10,442 tonnes
- AUD is under outsized pressure following a downbeat set of comments from RBA Gov Stevens calling for a much lower exchange rate. AUD/USD hit 2-week lows around $0.9505, AUD/JPY also at 2-week lows below 92.70, while AUD/NZD reversed some of its recent strength to fall 40pips below NZ$1.15 level. NZD/USD also pressured by general modest risk-off sentiment, falling 0.3% below 0.8260, down 0.4%. - In other dollar majors, Sterling unexpectedly fell to 2-week lows below $1.61. EUR/USD and USD/JPY traded sideways in 25pip ranges around $1.3780 and ¥97.60 respectively.
***Speakers/Political/In the Papers*** - (AU) RBA's Stevens: AUD likely to be materially lower in the future; high AUD not supported by costs, productivity; Terms of trade likely to fall - (NZ) According to one survey, economists are near-unanimous in expectation for the first RBNZ rate hike to take place in March of 2014 - NZ press
- (JP) BOJ expected to maintain its 2% inflation target within 2 years timeframe as part of the Outlook for Economic Activity and Prices report expected on Oct 31st - Nikkei News - (JP) Japan Vice Fin Min Furusawa: Japan requires fiscal reform to keep market confidence - financial press - (JP) IMF dep director of Asia-Pacific Schiff: Japan needs steady growth path, not just stimulus
- (CN) China may loosen second child policy nationwide - Chinese press - (CN) China may grant higher crude imports quota; Teapot refineries may obtain quota to process imported crude - Chinese press - (CN) China Ministry of Housing may issue housing industrialization policy in 2014 - financial press
- (KR) Bank of Korea (BOK) Official Jung: Oct exports in very good condition; South Korea to see $63B current account surplus in 2013 - (KR) South Korea Minister of Trade, Industry and Energy Yoon held talks with planning officers of the country's top 30 conglomerates, calling on companies to boost investment and hiring - Korean press
***Equities*** Market Snapshot (as of 03:30 GMT): - Nikkei225 -0.1%, S&P/ASX -0.5%, Kospi flat, Shanghai Composite -1.0%, Hang Seng -0.1%, Dec S&P500 -0.1% at 1,757, Dec gold +0.3% at $1,356, Nov crude oil -0.3% at $98.43/brl
US markets: - X: Reports Q3 -$0.14 v -$0.43e, R$4.13B v $4.31Be; -5.2% afterhours - STX: Reports Q1 $1.29 v $1.31e, R$3.49B v $3.55Be; Raises quarterly dividend 13% from $0.38/shr to $0.43/shr; -4.8% afterhours - AAPL: Reports Q4 $8.26 v $7.89e, R$37.5B v $36.7Be; Exec: iPhone sales grew in all regions, especially in emerging markets; also remain strong in the US - conf call; -1.2% afterhours - HLF: Reports Q3 $1.32 v $1.14e, R$1.21B v $1.20Be; Raises FY13 EPS guidance; -1.0% afterhours - RVBD: Reports Q3 $0.26 v $0.23e, R$262M v $268Me; flat afterhours - CNO: Reports Q3 $0.33 v $0.34e, R$1.09B v $1.06Be; +1.2% afterhours - HIG: Reports Q3 $1.03 v $0.83e, R$2.85B v $2.78Be; +2.4% afterhours - KORS: To be added to S&P500 index after the close of trading on Friday, November 1; +3.8% afterhours - MAS: Reports Q3 $0.29 v $0.25e, R$2.20B v $2.10Be; +4.7% afterhours
Notable movers by sector: - Consumer discretionary: Cosco Pacific Ltd 1199.HK +1.1% (Q3 results); Japan Airlines 9201.JP -1.0% (press speculation on H1 results) - Consumer Staples: Yamazaki Baking 2212.JP -2.9% (expansion plans) - Industrials: SITC International Holdings Co Ltd 1308.HK +8.6% (Q3 results); Kawasaki Heavy Industries 7012.JP -3.6% (H1 results), Mitsui Engineering & Shipbuilding 7003.JP -2.0% (H1 results), Komatsu Ltd 6301.JP -8.0% (H1 results; lowers FY13/14 guidance) - Materials: Anhui Conch Cement 914.HK +0.8% (Q3 results); Kuraray Co Ltd 3405.JP +4.2% (H1 results) - Financials: ANZ Bank ANZ.AU +1.9% (FY results); Chongqing Rural Commercial Bank 3618.HK +1.6% (Q3 results); China Everbright Bank Co 601818.CN +0.7% (Q3 results); Poly Real Estate Group Co Ltd 600048.CN -0.7% (Q3 results); Gemdale Corp 600383.CN -1.0% (Q3 results); Bank of China 3988.HK +1.5%, AgBank 1288.HK +2.0%, ICBC 1398.HK +1.7%, China Construction Bank 939.HK +1.0%, Bank of Communication 3328.HK +1.3% (may issues preferred shares) - Technology: Hynix Semiconductor 000660.KR -1.7% (Q3 results); Kyocera Corp 6971.JP +0.9% (press speculation on H1 results) - Utilities: TEPCO 9501.JP +4.7% (press speculation on H1 results)
McKesson-Celesio deal to trigger shake-up
McKesson’s $8.3bn planned takeover of Celesio of Germany is set to foreshadow further consolidation in the European medicines distribution sector, analysts believe. The US company, which revealed a deal last week to acquire the controlling Haniel family’s majority stake for €23 a share in Celesio and is tendering to buy the remaining shares, will seek economies of scale and use of its data management expertise to help boost margins. John Hammergren, head of McKesson, said that some savings would come through procurement and global sourcing of products, but also through enhanced efforts to use information on medicine supplies to help retailers, healthcare systems and manufacturers. "We move both drugs and information," he said, adding that clients were very interested in "where and how drugs are used . . . proper reimbursement and the opportunity to improve adherence." His comments came despite the fragmentation of Europe’s market for medicines, and tight regulatory controls and competition that have been squeezing profits in recent years. Unlike the US, most countries including France and Germany tightly control the ownership of pharmacy outlets to limit chains, and each government regulates drug pricing closely. Pharmaceuticals companies have also imposed tougher terms with distributors in an effort to control arbitrage between different prices across the EU. Marion Helmes, chief financial officer at Celesio, said last week that "we do see some heavy competition in Germany" during a "fierce rebate war", while arguing there was growth in many other European countries. Scott Bardo, an analyst with Berenberg, argues that such conditions could drive further consolidation in Europe, as US distributors seek to diversify abroad and European ones come under growing regulatory and commercial pressure. "There have been a lot of challenges in pharmaceutical distribution in European over the last five years, and I fail to see how they are going to abate," he says. "One can’t but help see it as a good defensive move to be part of a larger global organisation." Ahead of the Celesio transaction, Alliance Boots forged a partnership with Walgreens in the US and has more recently linked up with AmerisourceBergen . Phoenix of Germany is the other large European medicines distributor yet to cut a transatlantic deal. Other smaller distributors have been bought up in recent years. Girp, the European trade body for wholesalers providing the full range of medicines to pharmacies, has warned that current profit margins are below 1 per cent and falling. "There is a clear danger that with rapidly lowering profitability levels the distribution chain will be pushed beyond its natural breaking point," it says. A study for the European Commission concluded that average margins for drug distributors were 1.5-3.5 per cent across the EU, with pressure coming from the rise in internet supplies and government initiatives to bring down the cost of medicines. While there has been strong pricing pressure among off-patent, generic drugs, their high and growing volumes across Europe also provide a source of significant business to distributors. Mr Hammergren argued there was also considerable scope to exploit Celesio’s pharmacy chains – such as Lloyds in the UK – to provide more healthcare services to patients such as vaccination and diagnostic blood tests. Leerink rated McKesson "outperform" in a research note, calling the multiple bid of 10.5 times Celesio’s 2012 earnings before interest, tax, depreciation and amortisation "reasonable".
Batista creditors strike gasfield deal
Eike Batista’s creditors and one of his main business partners, Germany’s Eon, have struck a deal to prepare for the potential bankruptcy of his oil company OGX in what is set to be Latin America’s largest ever corporate default. Eneva, known as MPX before the Brazilian tycoon ceded control of the energy company to Eon this year, agreed on an option to buy out OGX’s natural gas business should the company file for bankruptcy protection. OGX, once the flagship of Mr Batista’s oil and mining empire, has until Thursday to secure a debt restructuring after missing a payment on its $3.6bn in bonds at the beginning of this month. But with no deal in sight, the company is preparing to file for bankruptcy protection over the next few days, people close to the situation said. Eneva said on Monday that it had signed an option with the creditor banks of Mr Batista’s natural gas company OGX Maranhão to buy 66.7 per cent of the shares it does not already own in the venture for R$200m ($91.5m) in the event of bankruptcy. However, the put option can be exercised only after February 19 next year and was still subject to regulatory approval, Eneva said in a statement. Eon first acquired a stake in MPX in April last year, becoming the largest shareholder in the company this year with a stake of about 38 per cent. The deal comes as OGX’s restructuring process has been increasingly hampered by infighting, prompting creditors and partners to scramble for assets as they prepare for the worst. There is also speculation that OSX, Mr Batista’s oil services company, would file for bankruptcy at the same time as OGX. But the company, which owes $500m to bondholders, is said to be in better shape than OGX. It owns an $800m floating oil platform, a state of the art vessel that OGX has contracted to operate at its Tubarão Martelo oilfield. Scheduled to begin production next month, the field is the company’s last hope of generating substantial revenue in the short term. If OGX can secure a restructuring with creditors, Malaysia’s Petronas could enter as a partner in Tubarão Martelo under an earlier $850m deal. OGX’s natural gas Maranhão venture has eight blocks in Brazil’s Parnaiba basin, and although small, the operation is considered one of the tycoon’s better companies. OGX said on its website that OGX Maranhão was producing 4m cubic metres of gas a day, or about 26,000 barrels of oil equivalent. That is more than the output of Mr Batista’s oilfields that are already in production in Brazil’s Campos Basin near Rio. Those are expected to cease production next year due to technical problems.
Troubled loans double at Europe’s banks
European banks’ non-performing loans have doubled in just four years to reach close to €1.2tn and are expected to keep rising, according to analysis that provides a disquieting backdrop to the region’s forthcoming assessment of lenders’ balance sheets. A report by PwC found that non-performing loans (NPLs) rose from €514bn in 2008 to €1.187tn in 2012, with rises in the most recent year driven by deteriorating conditions in Spain, Ireland, Italy and Greece. It predicted further rises in the years ahead because of the "uncertain economic climate". Richard Thompson, a partner at PwC, said the "reshaping" of European bank balance sheets had several more years to run as lenders shed troubled and unwanted loans and attempted to strengthen their balance sheets. He estimates European banks are sitting on €2.4tn of non-core loans that they plan to wind down or sell off. The first eight months of 2013 have seen €46bn of European loan portfolio transactions, equal to the entire amount recorded in 2012. The PwC figures come after the European Central Bank this month unveiled plans for a comprehensive assessment of the health of the eurozone’s banking system as it prepares to take on responsibility to oversee the region’s banking sector. The ECB’s probe will encompass a wide range of bank assets and will go on to subject balance sheets to "stress tests" aimed at assessing how resilient lenders are to shocks. The review of banks’ asset quality will attempt to use more closely harmonised definitions of NPLs in a bid to offer greater clarity about the respective states of different euro-area banking sectors. As things stand, cross-country comparisons are riddled with uncertainties because of the different methodologies used. PwC’s figures, which are derived from lenders’ accounts, showed that Germany, the EU’s biggest economy, had the highest amount of non-performing loans at the end of 2012, at €179bn, unchanged on the previous year’s number. Spain had €167bn of NPLs, up sharply from the €136bn recorded for 2011. Britain’s €164bn of non-performing loans represented a decline from €172bn in 2011. Lee Tyrrell-Hendry, an analyst at Royal Bank of Scotland, said there was likely to be an increase in loan provisioning and sell-offs of distressed assets by banks as the ECB’s asset quality review takes its course over the coming months. "I expect the banks would accelerate the deleveraging process," he said. Mr Thompson said PwC was seeing increasing numbers of outside investors consider purchases of loan portfolios, with major US funds the most active but interest also coming from sovereign wealth funds and far-eastern investors. "We know of over 150 different investor groups who are taking a close interest in this market," he said. "As the banks try to position themselves to meet the Basel III capital requirements and react to the ECB’s stress tests following the asset quality review we expect more assets to come to market in 2014 and beyond."
Michael Kors to Replace NYSE Euronext in S&P 500, Change to take place after close Nov. 1.
Apple upbeat over iPhone sales drive
Apple stands at a turning point with Wall Street as it suggested that earnings could return to growth on the back of renewed momentum in iPhone sales. Tim Cook, chief executive, said Apple was "stronger than ever" and would consider returning more cash to shareholders by the beginning of 2014, amid calls for an increased buyback programme. The more positive outlook comes despite an 11 per cent drop in full-year net profits and after a year when Apple’s share price fell heavily after hitting an all-time high. The iPhone maker reported a 5 per cent year-on-year decline in earnings to $8.26 per diluted share in its fiscal fourth quarter, beating consensus forecasts at $7.93 per share. Revenues were up 4 per cent to $37.5bn while net income fell to $7.5bn. The results mark a sharp slowdown in growth compared with a year ago as its gross margin narrowed from 40 per cent to 37 per cent. While iPhone unit sales grew 26 per cent year over year to 33.8m, exceeding expectations, iPad sales of 14.1m were flat on the previous year and below analysts’ forecasts, as customers awaited new devices. However, Apple’s guidance on revenues and margins implies that its earnings could return to growth for the first time in a year, according to Walt Piecyk, analyst at BTIG Research. Gross margins, a metric watched closely by Wall Street, are depressed by $900m worth of revenue that will be deferred to future years, as a result of Apple’s decision to give away its Mac operating system and its iWork and iLife apps for iPhone and iPad. Mr Cook said the quarter represented a "strong finish" to its financial year and again hinted at the prospect of "new product categories with significant opportunities" in the coming year. A stronger push into television and a new wearable "iWatch" are rumoured for 2014 launches. "We are winning with our products in all the ways that are most important to us," namely usage, customer satisfaction and loyalty, Mr Cook added. Apple said more than $36bn had been returned to shareholders in the past five quarters through dividends and share buybacks, as the company comes under pressure from activist shareholder Carl Icahn to scale up its cash return programme to $150bn. Mr Cook said the board was engaged in an "ongoing" discussion about capital reallocation, and would "actively seek" feedback from investors on its future plans. "We will announce any changes to our programme in the first part of the new calendar year," he said. Apple said that with more than three-quarters of its cash now held offshore, its domestic cash reserves that are available for paying dividends and buying back shares have "stopped accumulating". "We have invested essentially all of the increase in net cash since the beginning of our capital return programme in 2012," said finance chief Peter Oppenheimer. Apple gave guidance on revenues for the crucial Christmas quarter of $55bn to $57bn, ahead of Wall Street’s current expectations, but with gross margins of 36.5 per cent to 37.5 per cent, on the lower end of analysts’ expectations. Its stock initially fell 4 per cent in after-hours trading but then recovered to gain as much as 1 per cent, as Apple explained that margins would be closer to 38.5 per cent if not for the deferred revenues from its software giveaway. It launched its latest iPhones in the last few days of September. The company said it had sold 9m of its flagship devices in the opening weekend, up from 5m over the previous launch weekend the year before. The smartphone went on sale in China on the same day as in the US and Europe for the first time, but the iPhone 5s, which boasts gold casing and a fingerprint reader, has faced supply shortages. Anecdotal reports have suggested that the more expensive 5s has been outselling the cheaper, plastic 5c, which comes in a range of colours. The iPhone’s average selling price continued to fall in the last quarter, to $577 from $619 a year ago, Apple said, as more customers opted to buy cheaper or older versions of its smartphone. The iPad stabilised at an average of $439. Last week, Apple revealed its latest iPads, which will go on sale on Friday, completing its Christmas line-up for 2013. The company said it had sold almost 170m iPads in total since its tablet first emerged in 2010. Apple stock is still trading below its all-time high of $702.10 but has seen a 20 per cent rally in the past three months. It closed at $529.88 on Monday, up less than 1 per cent for the day.