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 % -0.01% -0.68% Developed % 0.00% -0.80% Emerging % -0.08% 0.57% Frontier % 0.02% -0.44% Europe % 0.00% -1.63% Latin America % 0.00% -3.91% Asia Pacific % -0.04% 0.19% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % 0.00% 0.00% FTSE % 0.00% 0.00% CAC % 0.00% 0.00% DAX % 0.00% 0.00% Swiss SMI % 0.00% 0.00% Nikkei % 0.00% 0.00% CSI % 1.40% 0.41% INTERNATIONAL MARKETS INDICES Last Price WTD % YTD % 10D Vol Major Indices DowJones % 0.00% 0.00% S&P % 0.00% -1.15% Nasdaq % 0.00% 0.28% Sectors Indices Discretionary % 0.00% -0.59% Staples % 0.00% 0.19% Energy % 0.00% 0.60% Financials % 0.00% -3.33% Healthcare % 0.00% 0.23% Industrials % 0.00% -0.32% IT % 0.00% 1.24% Materials % 0.00% -0.95% Telecom % 0.00% -0.26% Utilities % 0.00% 0.08% Real Estate % 0.00% 0.51% India looks set to leapfrog Britain and France next year to become the world's fifth-largest economy in dollar terms, according to a report by the Center for Economics and Business Research. China's ruling Communist Party will meet this month to discuss amending the constitution for the first time since 2004, the Xinhua News Agency reports. Speculation has swirled that Xi Jinping might seek to stay in office beyond 2022 after unveiling a leadership lineup in October that didn't include a potential heir. The Trump administration is rescinding proposed rules for hydraulic fracturing and other drilling practices on government lands, drawing praise from industry groups and condemnation for environmentalists. The rules developed under Pres. Obama would have required oil and gas drillers to disclose the chemicals used in fracturing, which the companies say would have duplicated state rules and added unnecessary and expensive burdens. 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 USD Cross Rate USD Index % 0.15% - EUR/USD % -0.38% USD/JPY % -1.71% GBP/USD % 0.03% USD/CAD % -0.49% AUD/USD % 0.10% NZD/USD % -2.27% USD/CHF % -0.24% USD/NOK % -2.90% USD/SEK % 0.10% USD/CNY % 0.08% Major EUR Cross Rate EUR/GBP % -1.72% EUR/CHF % -1.68% EUR/JPY % -2.63% FX PERFORMANCE VS VOLATILITY MARKET COMMENTARY Mexico's central bank board aims to keep inflation under control at 3% toward the end of next year and some believe further interest rate increases may be needed to contain price pressures. "They signaled the inflation outlook has deteriorated and it is likely they will need to raise interest rates again, perhaps as soon as the next meeting, which is scheduled for Feb. 8," said Gabriela Siller, an economist at Banco BASE. Street protests hit Iran for a third day on Saturday, spreading to the capital Tehran with crowds attacking some state buildings, while a social media report said two demonstrators had been shot dead in a provincial town. Those protesting the government are frustrated with the economy, which has suffered rising prices and high unemployment, and are demanding an end to the rule of Supreme Leader Ayatollah Ali Khamenei. 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 Saudi Arabia's plan to erase its budget deficit by 2023 relies on a scenario that would see oil revenue surge by about 80%, sources told Bloomberg. Officials predict rising crude prices and output will push income from oil sales to 801.4B riyals ($214B) from 440B riyals this year. The six-year fiscal program also assumes the price of oil will reach $75 a barrel. SOVEREIGN BENCHMARK 10 Y YIELD CHANGES UNITED STATES EUROPEAN UNION UNITED KINGDOM Corporate Bonds US High Yield Bond DAYS HIGH YIELD VS INVESTMENT GRADE India to borrow an additional 500B this fiscal year raising the fiscal deficit to 3.5% against a target of 3.2% that may trigger a hit in bond and equities markets. The federal government spent over $200B (60% of budgeted spending) in eight months to October, while revenue collections were just 48 percent of the target, amid the launch of the national Goods and Services Tax LAST WEEK - CURRENT EU VS US 2Y & 10Y BENCHMARK SPREAD

4 BEMO WEEKLY INSIGHTS I COMMODITIES Energy Last Price WTD % WTI Crude Future % Brent Crude Future % NYMEX Gasoline % NYMEX Heat Oil % ICE Gasoil % NYMEX Natural Gas % ENERGY PRECIOUS METALS BASE METALS 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 EIA Petroleum Inventories: Crude -4.61M barrels vs M consensus, -6.49M last week. 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 % The total U.S. rig count fell by 2 to 929, stabilizing for the third straight week following five consecutive weeks of increases, Baker Hughes reports in its latest weekly survey.

5 BEMO WEEKLY INSIGHTS I ECO CALENDAR ENERGY Country Event Surv(M) Prior Time Date Time Canada Unemployment Rate 6.00% 5.90% 15:30 01/05/ :30 Canada Markit Canada Manufacturing PMI :30 01/02/ :30 China Caixin China PMI Mfg :45 01/02/2018 3:45 Eurozone Markit Eurozone Manufacturing PMI :00 01/02/ :00 France CPI YoY 1.20% 1.20% 9:45 01/05/2018 9:45 France Markit France Manufacturing PMI :50 01/02/ :50 Germany Industrial Production SA MoM % 9:00 01/09/2018 9:00 Germany Factory Orders MoM % 9:00 01/08/2018 9:00 Germany Markit/BME Germany Manufacturing PMI :55 01/02/ :55 Germany Unemployment Change (000's) -13k -18k 10:55 01/03/ :55 Italy CPI EU Harmonized YoY 1.10% 1.10% 12:00 01/05/ :00 Italy Markit/ADACI Italy Manufacturing PMI :45 01/02/ :45 Japan Nikkei Japan PMI Mfg :30 01/04/2018 2:30 Qatar M1 Money Supply YoY % 12/29/17-01/03/18 United Arab Emirates M1 Money Supply MoM % 12/18/17-01/02/18 United Kingdom Markit UK PMI Manufacturing SA :30 01/02/ :30 United Kingdom Nationwide House PX MoM 0.10% 0.10% 9:00 01/04/2018 9:00 United States Change in Nonfarm Payrolls 188k 228k 15:30 01/05/ :30 United States Initial Jobless Claims 248k 245k 15:30 01/04/ :30 United States ISM Manufacturing :00 01/03/ :00 United States DOE U.S. Crude Oil Inventories k 18:00 01/04/ :00 United States Durable Goods Orders % 17:00 01/05/ :00 United States MBA Mortgage Applications % 14:00 01/03/ :00 United States Markit US Manufacturing PMI :45 01/02/ :45 United States Unemployment Rate 4.10% 4.10% 15:30 01/05/ :30 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.