DAILY MARKETS BRIEF I LOCAL MARKETS

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1 DAILY MARKETS BRIEF I LOCAL MARKETS Last Daily % YTD % Dividend % MSCI Lebanon % % Development and Reconstruction Solidere A % % Solidere B % % Banking Audi Listed % % 11.53% BLC Listed % 0.00% BOB Listed % 0.00% Byblos Listed % % 10.24% BEMO Listed % 20.77% BLOM Listed % % 12.14% Trading RYMCO % 0.92% Industrial BEIRUT STOCK EXCHANGE Holcim % 7.26% Ciments Blancs % 13.33% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE USD SOVEREIGN CURVE Moody's Investors Service said it has changed the outlook on the Lebanese government to negative from stable and that it affirmed the ratings at B3. Minister of Finance Ali Hassan Khalil said that Moody s change in outlook underscores the importance of forming a new cabinet and starting the implementation of reforms. The outlook for non-financial corporates in the GCC is stable, Moody s Investors Service said in its annual corporate outlook on the regions. Moody s cited generally supportive oil prices, coupled with governments ongoing commitment towards public spending as drivers. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain (BB) % -0.93% Kuwait (KWSE) % 6.71% Muscat (MSM30 Index) % % Qatar (QE Index) % 23.15% KSA (TADAWUL) % 9.43% Dubai (DFM) % % Abu Dhabi (ADX) % 9.63% LOCAL/GCC FOREIGN EXCHANGE Cross Last Price Lebanese Pound Spot USD/LBP Bahraini Dinar Spot USD/BHD Kuwaiti Dinar Spot USD/KWD Omani Rial Spot USD/OMR Qatari Riyal Spot USD/QAR Saudi Riyal Spot USD/SAR UAE Dirham Spot USD/AED Source: Daily Star, Gulf Base MSCI GCC INDEX - 30 DAYS CHART GCC INDICES DAILY PERFORMANCE

2 DAILY MARKETS BRIEF I EQUITY MARKETS UNITED STATES EQUITY MARKET INDICES Major Indices Last Price Daily % YTD % 10D Vol DowJones % -2.50% 0.55% S&P % -2.76% 0.16% Nasdaq % 0.11% 0.86% Sectors Indices Discretionary % 2.85% 0.50% Staples % -5.41% 1.71% Energy % % 2.01% Financials % % -2.07% Healthcare % 7.36% 4.34% Industrials % % -1.52% IT % 2.09% 1.15% Materials % % -0.71% Com. Services % % -0.06% Utilities % 7.07% -2.06% Real Estate % 0.88% -0.87% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE U.S. stocks were markedly lower on Friday in the wake of disappointing economic data. China reported weak monthly retail sales growth and industrial output numbers, with disappointing economic data from Eurozone, France and Germany also weighing in on the decline. Large losses in Johnson & Johnson pressured American benchmarks lower. European equities were lower, largely pressured by the aforementioned disappointing economic data. Utilities continued to outperform as a shift to defensive stocks took place. Japanese equities turned sharply lower, hit by a wave of selling after a two-day rally. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % -7.23% -2.83% Developed % -7.65% -1.75% Emerging % % -3.70% Frontier % % -4.04% Europe % % -1.14% Latin America % -9.87% -2.12% Asia Pacific % % -3.25% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % % -1.63% FTSE % % -1.36% CAC % -8.64% -0.90% DAX % % -3.25% Swiss SMI % -7.12% -0.41% Nikkei % -5.53% 0.32% CSI % % -4.20% DEVELOPED VS EMERGING - 30 DAYS CHART EMERGING DEVELOPED Source: Bloomberg, Financial Times, Reuters INTERNATIONAL EQUITY - 30 DAYS CHART

3 DAILY MARKETS BRIEF I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price Daily % 10D Vol 25RR Major USD Cross Rate USD Index % 0.05% - EUR/USD % 0.01% USD/JPY % -1.79% GBP/USD % 0.01% USD/CAD % -0.31% AUD/USD % 0.19% NZD/USD % -0.07% USD/CHF % 0.00% USD/NOK % -0.38% USD/SEK % 0.03% USD/CNY % -1.53% Major EUR Cross Rate EUR/GBP % -0.04% EUR/CHF % -0.02% EUR/JPY % -1.72% DISTANCE FROM 52 WEEKS LOW/HIGH The dollar rose, reaching a 19-month high against a basket of currencies, as investors preferred the safety of the world's reserve currency in the wake of worrisome political and economic news outside the U.S. The Chinese yuan notably fell after data showed retail sales grew in November at their slowest pace since 2003 and industrial output rose the least in nearly three years. The euro weakened as the Eurozone economy showed more signs of a slowdown. The British pound tumbled as PM May struggled to secure assurances from the E.U. over her Brexit deal. EUR/USD 30 DAYS SUPPORT & RESISTANCE Source: Bloomberg, Financial Times, Reuters GBP/USD 30 DAYS SUPPORT & RESISTANCE USD/JPY 30 DAYS SUPPORT & RESISTANCE USD/CAD 30 DAYS SUPPORT & RESISTANCE

4 DAILY MARKETS BRIEF I FIXED INCOME GLOBAL BOND INDICES Yield Yield (in Bps) Benchmark Indices US 10 Years Benchmark EU 10 Years Benchmark UK 10 Years Benchmark Sovereign Bonds US Treasury Bond Eurozone Sovereign Bond Japan Sovereign Bond US TREASURIES YIELD CURVE EUR GENERIC YIELD CURVE Corporate Bonds US Corporate TR US High Yield Bond TR EUR Aggregate Corporate TR EUR High Yield TR USD Emerging Market IG & HY U.S. Treasury yields fell in line with declines in U.S. equities, weighed down by worries about global growth after poor economic numbers out of Europe and China. The fall in losses was mitigated by a surge in U.S. core retail sales for the month of November. Yields on German government debt fell after Germany s central bank, the Bundesbank, said growth in Germany will slow in the coming years, cutting its forecasts after a string of disappointing data in recent months. Friday marked the first day since the European Central Bank formally ended its quantitative easing program. OVERNIGHT RATES - SWAPS Yield Yield (in Bps) 3M USD LIBOR M EUR EURIBOR M GBP LIBOR Y USD SWAP Y USD SWAP Y USD SWAP Y USD SWAP Spread (in FIXED INCOME SPREADS r Spread Bps) USD 3M vs 10Y Spread Spread Spread (in Bps) USD 2Y 3M vs vs 10Y 10Y Spread USD USD IG 2Y Spread vs 10Y Spread (0.0100) USD IG Spread USD HY Spread 4.3 (0.0800) USD HY Spread EU vs US 10Y Spread (0.0391) EU vs US 10Y Spread EU vs US 2Y Spread (0.0601) EU vs US 2Y Spread EM vs Benchmark Spread (0.0140) EM vs Benchmark Spread Source: Bloomberg, Financial Times, Reuters, Econotimes USD CORPORATES - 30 DAYS SPREAD EU VS US - 30 DAYS SPREAD

5 DAILY MARKETS BRIEF I COMMODITIES GLOBAL COMMODITIES MARKET Last Price Daily % Commodity Index % Energy WTI Crude Future % Brent Crude Future % NYMEX Gasoline % NYMEX Heat Oil % ICE Gasoil % NYMEX Natural Gas % COMMODITY INDEX SUPPORT & RESISTANCE WTI OIL 30 DAYS SUPPORT & RESISTANCE Precious Metals Gold Spot $/Oz % Silver Spot $/Oz % Platinum Spot $/Oz % Palladium Spot $/Oz % Gold Future % Silver Future % Platinum Future % Palladium Future % Base Metals LME Aluminum % LME Copper % LME Zinc % LME Nickel % LME Lead % LME Tin % Agricultural Corn CBT % Wheat CBT % Soybeans CBT % Bean Meal CBT % Rough Rice CBT % MDE Palm Oil % Soybean CBT % Coffee ICE % Sugar #11 ICE % Cotton #2 ICE % Cocoa ICE % Ethanol CME % Lumber CME % Orange Juice ICE % Live Cattle CME % Feeder Cattle CME % Lean Hogs CME % Oil prices fell, weighed down by falling U.S. stock markets, while weak economic data from China pointed to lower fuel demand in the world's biggest oil importer. The International Energy Agency said it expected a deficit in oil supply by Q Gold eased as the dollar rose but was supported by falling equities. Source: Bloomberg GOLD 30 DAYS SUPPORT & RESISTANCE SILVER 30 DAYS SUPPORT & RESISTANCE

6 DAILY MARKETS BRIEF I COMPANY NEWS TOP 10 WINNERS Ticker Last Price Daily % S&P 500 Stocks SCANA CORP SCG SEALED AIR CORP SEE PUBLIC STORAGE PSA ROYAL CARIBBEAN RCL ALASKA AIR GROUP ALK KEYSIGHT TEC KEYS NUCOR CORP NUE BANK NY MELLON BK MICHAEL KORS HOL KORS UNDER ARMOUR-A UAA TOP 10 LOSERS Ticker Last Price Daily % S&P 500 Stocks JOHNSON&JOHNSON JNJ COSTCO WHOLESALE COST UNIVERSAL HLTH-B UHS ADOBE INC ADBE HCA HEALTHCARE I HCA NEWFIELD EXPLORA NFX TECHNIPFMC PLC FTI MCKESSON CORP MCK CONCHO RESOURCES CXO SCHLUMBERGER LTD SLB S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Renault has requested a full Nissan shareholder meeting, appearing to escalate the carmaker s standoff with its Japanese alliance partner in the wake of the pay scandal engulfing Chairman and CEO Carlos Ghosn. In related news, the French government is considering backing Michelin chief executive Jean-Dominique Senard for the chairmanship of Renault. Qatar is considering increasing its stake in Deutsche Bank, newspaper Handelsblatt reported. The Qatari royal family already holds a 6.1 percent stake in Deutsche Bank, according to Deutsche Bank s website. Qatar Petroleum is looking to invest at least $20 billion in the United States over the coming few years, its chief executive told Reuters, after the Gulf Arab state unexpectedly quit OPEC this month. Tesla Inc. has cut prices on its Model S and Model X vehicles in China after Beijing suspended additional tariffs on U.S.-made cars. According to the electric carmaker s Chinese website, the price of certain Model S cars was cut by up to $15,200 and Model Xs by up to $9,400. Luxury goods maker LVMH has agreed to buy Belmond, the owner of hotels including Venice s landmark Cipriani, for a total of $3.2 billion to raise its profile in upmarket hospitality. Volkswagen s talks with Ford on the two companies cooperating are progressing, though a few details still need to be worked out, the German carmaker said on Friday. Shares of Johnson & Johnson fell and were on track to post their biggest percentage drop in more than 16 years, after Reuters reported that the pharma major knew for decades that cancercausing asbestos lurked in its Baby Powder. Sources: Seeking Alpha, Financial Times, Reuters, CNBC

7 DAILY MARKETS BRIEF I ECONOMIC DATA KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Canada Int'l Securities Transactions b 15:30 Canada Existing Home Sales MoM % 16:00 Eurozone CPI YoY 2.00% % 12:00 Eurozone CPI MoM -0.20% % 12:00 Eurozone CPI Core YoY 1.00% % 12:00 Eurozone Trade Balance SA 14.0b b 12:00 Eurozone Trade Balance NSA b 12:00 France France to Sell Bills 15:50 Italy Trade Balance Total m 11:00 Italy Trade Balance EU m 11:00 Japan Tokyo Condominium Sales YoY % 2.80% 6:00 Japan BOJ Outright Bond Purchase 1~3 Years 3:10 Japan BOJ Outright Bond Purchase 3~5 Years 3:10 Russia Industrial Production YoY 3.50% % United Kingdom Rightmove House Prices MoM % -1.70% 2:01 United Kingdom Rightmove House Prices YoY % -0.20% 2:01 United States Empire Manufacturing :30 United States Net Long-term TIC Flows $30.8b 23:00 United States Total Net TIC Flows $29.1b 23:00 United States NAHB Housing Market Index :00 United States Department of Commerce holds an event 16:00 United States The Heritage Foundation holds an event 17:00 Source: Bloomberg Banque BEMO sal Head Office - Private and Corporate Banking 96 Pasteur Building, Pasteur Street, Medawar Area, P.O. Box: , Beirut - Lebanon Tel: Fax: Wealth & Investment Management research@bemobank.com Beirut Central District Riad El Solh Square, Esseily Building Bloc A, 7th Floor Beirut - Lebanon Tel: Fax: Disclaimer: This report is published for information purposes only. The information herein has been compiled from, or based upon sources considered to be reliable (Bloomberg, SeekingAlpha, DailyStar ), but we do not guarantee or assume responsibility for its completeness and accuracy. This document should not be construed as a solicitation to take part in any investment, or as constituting any representation or warranty on our part. This report is not to be relied upon in substitution for the exercise of specialists. We may not have taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. The investments and services contained or referred to herein are not purported to be exhaustive, any person considering an investment should seek specialist advice on the suitability of an investment. Nothing in this report constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation. Clients understand that it is their responsibility to seek legal and/or tax advice regarding the legal and tax consequences of their investment transactions. The consequences of any action taken on the basis of information contained herein are solely the responsibility of the recipient. Investment instruments are subject to risk, including possible loss of principal amount invested. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. The value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financial instruments. Some investments mentioned in this report may have a high level of volatility. High volatility investments may experience sudden and large falls in their value causing losses when that investment is realized. Some investments may not be readily realizable and it may be difficult to sell or realize those investments, similarly it may prove difficult to obtain reliable information about the value, or risks, to which such an investment is exposed. This report may provide the addresses of websites or references. We have not reviewed any such site and takes no responsibility for the content contained therein. Such address or reference is provided solely for convenience and information. Accessing such website through this report shall be at the recipients own risk.