BEMO WEEKLY INSIGHTS I EQUITY MARKETS

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1 BEMO WEEKLY INSIGHTS I EQUITY MARKETS INTERNATIONAL MARKETS INDICES Last Price WTD % YTD % 10D Vol World % 1.24% -0.84% Developed % 2.77% -0.49% Emerging % -9.35% -3.22% Frontier % % -4.34% Europe % -1.69% -0.05% Latin America % % 0.45% Asia Pacific % -5.87% -4.89% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -1.96% -0.29% FTSE % -1.43% 0.09% CAC % 2.62% 0.08% DAX % -3.66% -0.12% Swiss SMI % -3.46% -0.21% Nikkei % 0.15% -9.73% CSI % % 4.29% INTERNATIONAL MARKETS INDICES Last Price WTD % YTD % 10D Vol Major Indices DowJones % 4.33% -0.62% S&P % 0.00% -0.17% Nasdaq % 0.00% 0.70% Sectors Indices Discretionary % 16.27% -0.51% Staples % -5.69% 0.08% Energy % 2.81% -0.34% Financials % 0.83% -1.93% Healthcare % 10.94% -0.01% Industrials % 0.80% -0.71% IT % 17.59% 1.66% Materials % -2.25% 0.09% Telecom % -5.70% -0.11% Utilities % 1.46% 0.18% Real Estate % 1.39% 0.29% U.S equities advanced led by technology and energy shares. The technology-heavy NASDAQ and the Russel 2000 small-cap outpaced the advance of the broader S&P 500 benchmark, boosted by a particularly strong performance from semiconductors. A steady rise in crude oil prices in anticipation of the incoming sanctions on Iran, which are expected to tighten global supply, drove energy stocks. The aforementioned factors helped the S&P 500 reach a record high. European indices were higher for the week with the exception of the FTSE 100 which, recorded a small decline of around half a percent. The pan-european Stoxx Europe 600 snapped three weeks of declines while the Eurozone s Stoxx 50 performed well, gaining almost 1 percent. The French and German benchmarks performed well, the CAC 40 and DAX 30 ending roughly half a percent and one percent higher as of Friday s close. A disappointing performance for the FTSE 100 was attributed to more Brexit related woes, as the British government releasing contingency plans for a no-deal Brexit. The plans would take effect in the event both parties fail to agree to an exit deal before the March 2019 deadline set for the U.K s departure. Japanese stocks recorded their first weekly gain for the month with the Nikkei index advancing around 1.5 percent as of Friday s close. The Chinese and Hong Kong benchmarks performed similarly well despite trade talks in Washington reaching an impasse. INDICES PERFORMANCE VS VOLATILITY SECTORS PERFORMANCE VS VOLATILITY

2 BEMO WEEKLY INSIGHTS I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price WTD % 10D Vol 25RR Major Indices USD Index % 0.15% - EUR/USD % -1.27% USD/JPY % -0.38% GBP/USD % -0.45% USD/CAD % -0.57% AUD/USD % -0.15% NZD/USD % -0.12% USD/CHF % -0.08% USD/NOK % -0.63% USD/SEK % -0.14% USD/CNY % 0.14% Major EUR Cross Rate EUR/GBP % -0.63% EUR/CHF % -1.12% EUR/JPY % -0.08% FX PERFORMANCE VS VOLATILITY MARKET COMMENTARY Highly anticipated comments by Fed Chairman Jerome Powell were perceived as somewhat dovish, causing a decline. The U.S dollar was also pressured earlier in the week after minutes from the Federal Reserve s recent meeting showed support for a further interestrate increase in the near term while also revealing that the escalating trade wars could harm the U.S economy. A weakening dollar as well as abating fears concerning the contagion of the crisis in Turkey allowed the Euro to recover. Looking forward for the Euro, attention remains centered on the European Central Bank s monetary policy decisions. The pound weakened after the U.K government released no deal technical notices which outlines how companies should respond to a no deal Brexit. Looking forward, this week brings about a quiet economic calendar in U.K with no high-impact events and some medium-importance announcements which are likely to weigh in. DISTANCE FROM 52 WEEKS LOW/HIGH 25 RISK REVERSAL

3 BEMO WEEKLY INSIGHTS 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 Corporate Bonds US Investment Grade Bond US High Yield Bond EUR Investment Grade Bond EUR High Yield Bond USD Emerging Market IG & HY DAYS HIGH YIELD VS INVESTMENT GRADE Fed Chairman Powell emphasized the need for gradual rate hikes at the Jackson Hole Economic Symposium, downplaying the need for a more aggressive stance. Powell notably identified two risks: moving too fast and needlessly shortening the expansion, versus moving too slow and risking a destabilizing overheating. He also indicated that there was no clear sign of an acceleration above the Fed s 2 percent inflation objection and stated that there does not seem to be an elevated risk of the economy overheating. A dovish stance seemed to follow as the need for aggressive tightening seemed to be ruled out. Yields on 10 year Treasury yields were down 0.3 percent for the week, settling at ECB policymakers viewed slower-thanexpected growth as temporary amid strengthening wage growth in the Eurozone. The ECB s minutes of the July 26 meeting revealed that policymakers thought any dip in output would be largely temporary while emphasizing that global trade tensions posed a risk to their outlook. Also indicated was that officials were more confident of achieving their goal of a sustainable inflation rate of just under 2 percent in the coming months. The Italian bond market remained in focus amid fears that the country s populist coalition would increase spending as it decides on a budget. Yields on Italian 10 year notes climbed above 3 percent as increased worries that the spending could cause Italy to miss fiscal targets. SOVEREIGN BENCHMARK 10 Y YIELD CHANGES UNITED STATES EUROPEAN UNION UNITED KINGDOM LAST WEEK - CURRENT EU VS US 2Y & 10Y BENCHMARK SPREAD

4 BEMO WEEKLY INSIGHTS I COMMODITIES ENERGY PRECIOUS METALS BASE METALS Energy Last Price WTD % WTI Crude Future % Brent Crude Future % NYMEX Gasoline % NYMEX Heat Oil % ICE Gasoil % NYMEX Natural Gas % ENERGY PERFORMANCE VS VOLATILITY Precious Metals Last Price WTD % Gold Spot $/Oz % Silver Spot $/Oz % Platinum Spot $/Oz % Palladium Spot $/Oz % Gold Future % Silver Future % PRECIOUS METALS PERFORMANCE VS VOLATILITY Base Metals Last Price WTD % LME Aluminum % LME Copper % LME Zinc % LME Nickel % LME Lead % LME Tin % AGRICULTURAL Agricultural Last Price WTD % 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 futures rose on Friday with the U.S benchmark booking its first weekly gain in around two months amidst focus on tightening Iranian output in anticipation of new sanctions coupled with a weakening dollar also contributed to the mostly bullish oil trend last week. According to S&P Global Platts, initial estimates suggest that Iranian exports have significantly decreased to 1.68 million barrels a day in the first 16 days of August. The decrease constitutes a 600,000 barrel per day drop, as Global Platts estimated that July output was averaging 2.32 million barrels per day. The Energy Information Administration reported that domestic crude supplies fell by 5.8 million barrels for the week ending August 17th, further putting a strain on global supplies. Gold prices ended higher Friday, recording their first weekly advance in seven weeks following a weakening of the U.S dollar in the wake of a closely monitored and somewhat dovish speech from Federal Reserve Chairman Jerome Powell which drove the dollar lower. Gold settled at its highest level in three weeks. Sugar prices have fallen to their lowest levels in fourteen years at around 8 cents a pound. The significant drop in prices has been attributed to generally healthier worldwide eating habits hampering demand as well as increased production in India and Thailand who are among the world s four largest producer.

5 BEMO WEEKLY INSIGHTS I ECO CALENDAR KEY ECONOMIC INDICATORS Country Event Surv(M) Prior Time Date Time Canada Quarterly GDP Annualized 3.10% 1.30% 15:30 8/30/2018 China Manufacturing PMI :00 8/31/2018 Eurozone M3 Money Supply YoY 4.30% 4.40% 11:00 8/28/2018 France CPI YoY 2.20% 2.30% 9:45 8/31/2018 France GDP QoQ 0.20% 0.20% 9:45 8/29/2018 Germany IFO Business Climate :00 8/27/2018 Germany Unemployment Change (000's) -8k -6k 10:55 8/30/2018 Germany CPI YoY 2.00% 2.00% 15:00 8/30/2018 Germany CPI MoM 0.10% 0.30% 15:00 8/30/2018 Italy Manufacturing Confidence :00 8/28/2018 Italy CPI EU Harmonized YoY 1.70% 1.90% 12:00 8/31/2018 Italy Consumer Confidence Index :00 8/28/2018 Italy GDP WDA QoQ 0.20% 0.20% 13:00 8/31/2018 Japan Industrial Production MoM 0.20% -1.80% 2:50 8/31/2018 Japan Jobless Rate 2.40% 2.40% 2:30 8/31/2018 Japan Tokyo CPI Ex-Fresh Food YoY 0.80% 0.80% 2:30 8/31/2018 Japan Job-To-Applicant Ratio :30 8/31/2018 United Kingdom Nationwide House PX MoM 0.10% 0.60% 9:00 8/31/2018 United Kingdom Nationwide House Px NSA YoY 2.70% 2.50% 9:00 8/31/2018 United States Initial Jobless Claims 213k 210k 15:30 8/30/2018 United States GDP Annualized QoQ 4.00% 4.10% 15:30 8/29/2018 United States U. of Mich. Sentiment :00 8/31/2018 United States DOE U.S. Crude Oil Inventories k 17:30 8/29/2018 United States Conf. Board Consumer Confidence :00 8/28/2018 United States MBA Mortgage Applications % 14:00 8/29/2018 Banque BEMO sal Head Office - Private and Corporate Banking 96 Pasteur Building, Pasteur Street, Medawar Area, P.O. Box: , Beirut - Lebanon Tel: Fax: Investment & Research 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.