DAILY MARKETS BRIEF I LOCAL MARKETS

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1 DAILY MARKETS BRIEF I LOCAL MARKETS BEIRUT STOCK EXCHANGE Last Daily % YTD % Dividend % MSCI Lebanon % % Development and Reconstruction Solidere A % % Solidere B % % Banking Audi Listed % % 10.72% BLC Listed % 0.00% BOB Listed % 0.00% Byblos Listed % % 9.88% BEMO Listed % 19.23% BLOM Listed % % 11.40% Trading RYMCO % 1.54% Industrial Holcim % 11.69% 14.69% Ciments Blancs % 26.22% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE USD SOVEREIGN CURVE Lebanon is the lowest-ranking Arab country for economic competitiveness, according to a new report by the International Finance Corporation and the World Economic Forum. The Arab World Competitiveness Report 2018 ranks and analyzes countries based on 12 factors considered crucial for economic growth. Recommendations for improved performance included more reforms and increased enlisting of the private sector for infrastructure projects. Qatar pledged $15 billion (Dh55.09 billion) of investment in Turkey that will be channeled into Turkish financial markets and banks, a government source told Reuters yesterday. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain % 0.87% Kuwait % 3.52% Oman % % Qatar % 12.54% KSA % 8.85% Dubai % % Abu Dhabi % 11.09% 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 Last Price Daily % YTD % 10D Vol Major Indices DowJones % 1.79% 0.53% S&P % 5.41% 0.89% Nasdaq % 12.61% 0.85% Sectors Indices Discretionary % 13.29% 2.52% Staples % -6.04% -1.35% Energy % -0.72% 10.18% Financials % -0.86% 0.51% Healthcare % 8.69% 0.11% Industrials % -1.45% 0.25% IT % 15.14% -0.01% Materials % -4.68% 1.91% Telecom % -7.23% 0.27% Utilities % 1.39% 0.47% Real Estate % 0.80% 0.68% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE U.S. equities resumed their retreat as unexpected poor earnings releases in the technology and retail sectors, and a drop in commodity prices, drove down indices. European stocks slid as miners extended declines amid a meltdown in metal prices. The Stoxx Europe 600 Index dropped 1 percent as risk aversion dominated global markets. Japanese equities fell as investors remained in risk-off mode as cosmetics and other consumerrelated companies were driven lower after reports of tourist growth slumped to its slowest rate in more than five years in July. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % -0.95% 1.52% Developed % 0.58% 1.48% Emerging % % 0.13% Frontier % % 0.16% Europe % -2.66% 1.70% Latin America % % 2.63% Asia Pacific % -6.90% -0.93% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -4.13% 0.82% FTSE % -2.47% 1.45% CAC % -0.14% 3.03% DAX % -5.84% 0.25% Swiss SMI % -4.86% 0.95% Nikkei % -2.61% -0.40% CSI % % 0.43% DEVELOPED VS EMERGING - 30 DAYS CHART EMERGING DEVELOPED INTERNATIONAL EQUITY - 30 DAYS CHART FTSE 100 CAC 40 DAX NIKKEI 225 Source: Bloomberg, Financial Times

3 DAILY MARKETS BRIEF I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price Daily % 10D Vol 25RR Major USD Cross Rate USD Index % 0.07% - EUR/USD % 0.55% USD/JPY % 0.07% GBP/USD % -0.34% USD/CAD % 0.65% AUD/USD % -0.63% NZD/USD % 0.56% USD/CHF % -0.46% USD/NOK % 0.34% USD/SEK % 0.50% USD/CNY % 1.75% Major EUR Cross Rate EUR/GBP % 0.03% EUR/CHF % 0.68% EUR/JPY % 0.69% DISTANCE FROM 52 WEEKS LOW/HIGH The US dollar was driven lower against most G-10 peers following the announcement of further US-China trade talks scheduled for late-august. The Euro slightly recovered against the dollar on easing pressures on the Turkish lira and new hopes for a solution to the US-China trade dispute, but reports of slow euro-area growth could maintain pressures on the currency. The offshore yuan surged the most since March, jump amid tighter cash supply and upcoming trade talks with the US. EUR/USD 30 DAYS SUPPORT & RESISTANCE Source: Bloomberg, Financial Times 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 Treasury yields and the yuan rose after China said its vice commerce minister will visit America for trade talks in late August. Italian Fixed Income futures improved as the Turkish lira continued to strengthen and reduce contagion risk, while Bunds turned lower as volumes picked up amid positive risk sentiment on the announcement of US-China trade talks The BoJ may allow a gradual increase in long-term interest rates to around 0.4% under new guidance introduced last month, according to central bank s former executive Hayakawa. 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 (0.0115) USD USD IG 2Y Spread vs 10Y Spread (0.0100) (0.0048) USD IG Spread 1.51 (0.0100) USD HY Spread 4.3 (0.0800) USD HY Spread EU vs US 10Y Spread (0.0391) EU vs US 10Y Spread (0.0174) EU vs US 2Y Spread (0.0601) EU vs US 2Y Spread (0.0275) EM vs Benchmark Spread (0.0140) EM vs Benchmark Spread (2.900) Source: Bloomberg, Financial Times 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 % Despite China s removal of crude from its tariff list of U.S. goods, exports of U.S. crude from the Gulf Coast to China fell to zero for the first 10 days of August, down from almost 300,000 barrels a day shipped in July. Gold was swept up with the commodity selloff despite the support of a weaker dollar, as global risk sentiment increased. Source: Bloomberg GOLD 30 DAYS SUPPORT & RESISTANCE SILVER 30 DAYS SUPPORT & RESISTANCE

6 DAILY MARKETS BRIEF I COMPANY NEWS S&P 500 Stocks TOP 10 WINNERS Ticker Last Price Daily % CHIPOTLE MEXICAN CMG KIMBERLY-CLARK KMB BOSTON SCIENTIFC BSX PROGRESSIVE CORP PGR HOST HOTELS & RE HST ALLEGION PLC ALLE VENTAS INC VTR HCP INC HCP CLOROX CO CLX WELLTOWER INC WELL S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % MACY'S INC M FREEPORT-MCMORAN FCX MARATHON OIL MRO ANADARKO PETROLE APC NEWMONT MINING NEM BAKER HUGHES A BHGE EOG RESOURCES EOG MICRON TECH MU CONSTELLATION-A STZ CONOCOPHILLIPS COP S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY The US Securities and Exchange Commission has subpoenaed Tesla, according to a person familiar with the matter, as part of an investigation into a tweet by founder Elon Musk over plans to take the electric carmaker private. Uber s losses widened in the second quarter as the car-booking company ramped up spending on food delivery and expansion in competitive international markets. Adjusted net losses increased to $659m from $577m in the first quarter as rising expenses outpaced revenue growth, according to a financial report shared with the private company s investors on Wednesday. Corona beer maker Constellation Brands doubled down on its bet on the budding marijuana industry, pumping just under $4bn into a Canadian group that has sought to capitalise on the spreading legalisation of weed. The company said it would buy 104.5m shares of Canopy Growth at C$48.60 apiece, lifting its stake to 38 per cent. Tencent's stock was in focus after the company posted a quarterly earnings report on Wednesday that missed analyst expectations. The company s inability to obtain Chinese regulatory approval for the sale of in-game items on some mobile games was considered to be a major factor. GlaxoSmithKline s HIV division has welcomed the results of a trial that could see the drug regime of patients cut from a daily dose of three drugs to a monthly injection of two. The study showed the two drugs, injected once a month, had similar efficacy to the three-drug regimen at week 48 of the trial. Amazon wants to turn its Twitch gaming property into a broader video service to take on Alphabet s YouTube, according to Bloomberg. Sources: Seeking Alpha, Financial Times, Reuters

7 DAILY MARKETS BRIEF I ECONOMIC DATA KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Canada Manufacturing Sales MoM 1.00% % 15:30 China Foreign Direct Investment YoY CNY % Eurozone Trade Balance SA 16.9b b 12:00 Eurozone Trade Balance NSA b 12:00 Germany Wholesale Price Index MoM % 9:00 Japan Trade Balance - 41.2b - 231.2b  721.4b 2:50 Japan Trade Balance Adjusted  20.7b - 45.6b  66.2b 2:50 Japan Exports YoY 6.30% 3.90% 6.70% 2:50 Japan Imports YoY 14.20% 14.60% 2.50% 2:50 United Kingdom Retail Sales Inc Auto Fuel MoM 0.20% % 11:30 United Kingdom Retail Sales Ex Auto Fuel MoM 0.00% % 11:30 United Kingdom Retail Sales Inc Auto Fuel YoY 2.90% % 11:30 United Kingdom Retail Sales Ex Auto Fuel YoY 2.80% % 11:30 United States Initial Jobless Claims 215k k 15:30 United States Housing Starts 1260k k 15:30 United States Philadelphia Fed Business Outlook :30 United States Continuing Claims 1740k k 15:30 United States Building Permits 1310k k 15:30 United States Bloomberg Economic Expectations :45 United States Housing Starts MoM 7.40% % 15:30 United States Building Permits MoM 1.40% % 15:30 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.