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 % % 10.09% BEMO Listed % 20.77% BLOM Listed % % 12.14% Trading RYMCO % 0.92% Industrial BEIRUT STOCK EXCHANGE Holcim % 8.30% Ciments Blancs % 13.33% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE USD SOVEREIGN CURVE Saudi Arabia plans to increase state spending by 7 percent next year in an effort to spur economic growth that has been hurt by low oil prices, according to the 2019 state budget announced by King Salman. Spending is projected to rise to an all-time high of SAR1.106 trillion ($295billion), from an actual SAR1.030 trillion this year. Dubai s property market slump has spread to the construction sector. A Reuters analysis of data from the Dubai Land Department showed a 76 per cent jump in the number of delayed developments and sales of villas and flats between 2016 and GCC EQUITY INDICES Last Price Daily % YTD % Bahrain (BB) % -1.31% Kuwait (KWSE) % 6.36% Muscat (MSM30 Index) % % Qatar (QE Index) % 23.06% KSA (TADAWUL) % 9.92% Dubai (DFM) % % Abu Dhabi (ADX) % 10.34% 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 % -4.22% -3.22% S&P % -4.77% -4.24% Nasdaq % -1.73% -4.57% Sectors Indices Discretionary % 0.98% -3.39% Staples % -8.66% -0.65% Energy % % -1.56% Financials % % % Healthcare % 4.26% -1.25% Industrials % % -7.60% IT % 0.70% -3.79% Materials % % -2.23% Com. Services % % -4.92% Utilities % 2.91% -0.06% Real Estate % -1.95% 0.86% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE U.S. stocks ended flat as energy stocks were pressured by a steep drop in oil prices while the possibility of a partial government shutdown also weighed in. U.S. Senate Majority Leader McConnell said Democrats had rejected his spending bill proposal, which puts several government agencies at risk of a shutdown. Japanese stocks were lower, tracking Monday s losses. European markets followed their American counterparts lower, with investors turning away form equities before the Federal Reserve meeting. Disappointing Ifo business climate data for Germany also weighed in. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % -9.92% 0.90% Developed % -9.28% 0.04% Emerging % % -0.44% Frontier % % 0.28% Europe % % -0.25% Latin America % % 0.50% Asia Pacific % % 0.02% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % % -0.35% FTSE % % -0.47% CAC % % -0.36% DAX % % -0.28% Swiss SMI % -9.10% -0.58% Nikkei % -7.81% 1.41% CSI % % 0.35% DEVELOPED VS EMERGING - 30 DAYS CHART EMERGING DEVELOPED Source: Bloomberg, Financial Times, Reuters INTERNATIONAL EQUITY - 30 DAYS CHART FTSE 100 CAC 40 DAX NIKKEI 225

3 DAILY MARKETS BRIEF I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price Daily % 10D Vol 25RR Major USD Cross Rate USD Index % -0.15% - EUR/USD % -0.09% USD/JPY % -0.48% GBP/USD % -0.24% USD/CAD % 0.03% AUD/USD % -0.19% NZD/USD % 0.04% USD/CHF % -0.82% USD/NOK % 0.72% USD/SEK % 0.36% USD/CNY % -0.39% Major EUR Cross Rate EUR/GBP EUR/CHF EUR/JPY DISTANCE FROM 52 WEEKS LOW/HIGH The dollar was lower against a basket of peers as market participants anticipated that the Federal Reserve may slow the pace of interest rate hikes after today s meeting. The dollar failed to benefit from the flight to safety which lifted the safe-haven Japanese yen and the Swiss Franc. The Canadian dollar weakened to an 18-month low as oil, one of Canada s major exports, continued its decline. The British pound rose as it was confirmed that Prime Minister May will seek parliamentary approval for her Brexit deal in January. The euro rose, supported by the dollar s weakness. 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 prices gained before the Federal Reserve s highly anticipated interest rate decision from its two-day meeting is announced. The Federal Reserve is expected to hike interest rates for the fourth time this year. However, officials have indicated that the rate path for 2019 remains uncertain. German government debt yields fell, as European markets fell and investors fled to safer assets in anticipation of the Federal Reserve decision. Disappointing German Ifo business climate figures also pressured yields lower. 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 continued their decline. The American Petroleum Institute reported a surprise crude oil inventory build of 3.45 million barrels for the week ending Dec. 14th, compared to analyst expectations that the draw in crude would total 2.48 million barrels. Gold firmed in the wake of a weaker dollar and an uncertain rate hike path for 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 DARDEN RESTAURAN DRI AMERICAN AIRLINE AAL NEKTAR THERAPEUT NKTR CBRE GROUP INC-A CBRE NETAPP INC NTAP BOEING CO/THE BA ADV MICRO DEVICE AMD PULTEGROUP INC PHM NETFLIX INC NFLX TEXAS INSTRUMENT TXN TOP 10 LOSERS Ticker Last Price Daily % S&P 500 Stocks PHILIP MORRIS IN PM PPL CORP PPL BIOGEN INC BIIB PG&E CORP PCG ANADARKO PETROLE APC HESS CORP HES BANK NY MELLON BK CONCHO RESOURCES CXO DEVON ENERGY CO DVN HUMANA INC HUM S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Billionaire entrepreneur Elon Musk made a brief public appearance late on Tuesday to unveil the first tunnel completed by the underground transit venture he launched two years ago as an ambitious remedy to Los Angeles heavy traffic. GlaxoSmithKline and Pfizer said they would combine their consumer health businesses in a joint venture with sales of 9.8 billion pounds ($12.7 billion), with the majority owned by the British company. U.S. chipmaker Micron Technology gave on Tuesday quarterly sales and profit forecasts well below Wall Street estimates, citing a market glut of memory chips as consumer and business demand for phones and computers is weakening. Bankrupt U.S. retailer Sears Holdings will take a charge of about $443 million arising from store closures, a regulatory filing showed on Tuesday. FedEx on Tuesday slashed its 2019 forecast after Europe s economy weakened and the U.S. trade row exacerbated a slowdown in China, sending shares in the package delivery company tumbling more than 6 percent after the closing bell. Lockheed Martin has been awarded a $585 million U.S. defense contract for a Homeland Defense Radar in Hawaii, the Pentagon announced. Uber received approval from Pennsylvania to resume self-driving car testing on public roads this week, state records show, nine months after it suspended the program following a deadly accident in Arizona. GM said it plans to cut 50 jobs at a suburban Detroit lithium-ion battery assembly plant. 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 CPI YoY 1.80% % 15:30 Canada CPI NSA MoM -0.40% % 15:30 Germany PPI YoY 3.10% % 9:00 Germany PPI MoM -0.10% % 9:00 Japan Trade Balance -Â 630.0b -Â 737.3b -Â 449.3b 01:50 Russia Unemployment Rate 4.80% % 15:00 Russia Retail Sales Real YoY 2.10% % 15:00 Russia Real Wages YoY 4.20% % 15:00 United Kingdom CPI YoY 2.30% % 11:30 United Kingdom CPI MoM 0.20% % 11:30 United Kingdom CPI Core YoY 1.80% % 11:30 United Kingdom PPI Output NSA MoM 0.00% % 11:30 United Kingdom PPI Output NSA YoY 3.00% % 11:30 United Kingdom RPI MoM 0.10% % 11:30 United Kingdom RPI YoY 3.20% % 11:30 United Kingdom Retail Price Index :30 United States FOMC Rate Decision (Upper Bound) 2.50% % 21:00 United States DOE U.S. Crude Oil Inventories -2500k k 17:30 United States MBA Mortgage Applications % 14:00 United States Existing Home Sales 5.20m m 17:00 United States Current Account Balance -$125.0b -- -$101.5b 15:30 United States Existing Home Sales MoM -0.40% % 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.