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 % -0.06% -3.16% Developed % 1.62% -2.61% Emerging % % -4.82% Frontier % % -0.24% Europe % -4.21% -1.03% Latin America % % -1.84% Asia Pacific % -7.90% -4.20% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -6.01% -2.47% FTSE % -5.33% -0.46% CAC % -1.14% -1.67% DAX % -7.42% -3.45% Swiss SMI % -5.74% -0.68% Nikkei % -1.72% -0.98% CSI % % -5.29% INTERNATIONAL MARKETS INDICES Last Price WTD % YTD % 10D Vol Major Indices DowJones % 4.84% -0.03% S&P % 0.00% -0.63% Nasdaq % 0.00% -0.88% Sectors Indices Discretionary % 16.88% -0.34% Staples % -5.19% 0.02% Energy % 0.29% -1.23% Financials % 1.01% -0.06% Healthcare % 11.68% -0.33% Industrials % 1.87% 0.27% IT % 16.47% -1.37% Materials % -2.49% -1.06% Telecom % -7.21% -0.77% Utilities % 1.87% 2.59% Real Estate % 1.00% 1.98% Equities were lower. Energy shares were down within the S&P 500 as oil prices fell following a fall in U.S inventories while concerns about demand in emerging markets also weighed in. Technology stocks were under pressure last week as executives from Twitter and Facebook testified before Congress regarding efforts to curb foreign intervention in elections. A selloff in Chinese technology equities continued last week which also weighed in the broader group. Semiconductors shares lagged later in the week after analysts downgraded Micron Technology amid fears regarding demand prospects from China in the wake of rising trade tensions. Markets succumbed to profit taking after the recent records while uncertainty regarding trade policy weighed in on the general sentiment as markets braced for new tariffs by the White House on Chinese imports. On Friday, President Trump stated that his administration could impose tariffs on a further $267 billion in products. The proposed tariffs imply that the entirety of Chinese imports in the U.S would be subject to higher tariffs. As escalated trade tensions and political uncertainty clouded investor outlook, the pan-european Stoxx Europe 600 and the DAX 30 Index fell to their lowest levels in five months. European technology stocks followed their American counterparts lower with the declines being led by semiconductors. Italian shares were the best performers last week in Europe as Italy s populists signaled they would respect the European Union s fiscal restrictions and both parties. The FTSE 100 fell to its lowest levels in six months amid commentary by Chancellor Merkel stating that Brexit is regrettable and the European Union must negotiate to achieve very, very close relations with the United Kingdom. Japanese equities posted their largest weekly decline in over two months in the wake of a typhoon and an earthquake in the north of Japan. The Nikkei 225 fell over 2 percent, and consequently turned lower for the year. The ramifications of these natural disasters and their impact on infrastructure are speculated to significantly weigh in on the Japanese economy. 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 % -0.23% USD/JPY % -0.03% GBP/USD % 0.00% USD/CAD % -0.58% AUD/USD % 0.08% NZD/USD % -0.50% USD/CHF % -0.08% USD/NOK % 0.85% USD/SEK % -0.60% USD/CNY % -0.15% Major EUR Cross Rate EUR/GBP % -0.37% EUR/CHF % 0.06% EUR/JPY % -0.30% FX PERFORMANCE VS VOLATILITY MARKET COMMENTARY The US dollar made significant gains last week following a deterioration in market sentiment coupled with the increased rate hike expectations, sparking safe-haven demand for the greenback. Emerging market shares and rival currencies plunged amid worries of a U.S-led rise in borrowing costs that may destabilize emerging markets which in turn offered the dollar support. Release of the jobs and wages figures on Friday showed that wage inflation has soared to a nine-year high. Looking ahead, Consumer Price Index figures for August and political uncertainty in Europe amidst Brexit and the Swedish elections remain in focus as catalysts of the dollar s performance. The euro was mixed last week as it lost ground against four major currencies while gaining against three with a notably bad performance versus safe haven currencies. On the other hand, the euro gained against all the commodity currencies. Looking forward, the European Central Bank s main refinancing rate due on Thursday remains in focus. The pound sterling made significant gains against a wide range of currencies last week buoyed by more conciliatory tone surrounding Brexit negotiations with the German government signaling willingness to drop key demands and positive commentary regarding the Irish border issue. A slew of economic data is due for release in the U.K this week such as the Bank of England Bank rate, jobless claims change and industrial production figures are sure to weigh in as are any development surrounding Brexit negotiations in Europe. The Yen strengthened towards the end of the week as indications began to show on Thursday that President Trump might be beginning to set his sights on Japan for potential discussions regarding tariffs. Risk aversion due to increased global uncertainty and trade tensions remain in focus for the safe haven. 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 U.S treasuries fluctuated for most of the week before posting losses for the week as yields crept up following positive jobs and wage data in the U.S on Friday. Longer-term interest rates increased as the yield on the benchmark 10-year Treasury note briefly touched 2.95%, the highest level in nearly a month. Trade talks with Canada as well as well as the escalation of trade tensions remain in focus this week. A rate hike by the Federal Reserve looks increasingly certain following the jobs and wages data. A seemingly more conservative approach to fiscal policy by the ruling coalition s populists gave Italian government debt a much needed boost amid previous losses during periods of risk-related selling. The news sent the yield on 10-year notes as low as 2.94 percent German bunds suffered losses for the majority of the week and ultimately settled lower as yields crept up. The rise in yields likely came amid disappointing German manufacturing orders figures which showed a fall in output for July. The slump was exacerbated by goods trade figures falling in July as well. Looking forward, political developments in the European Union remain in focus while Thursday s European Central Bank s main refinancing rate is sure to weigh in. 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 % U.S benchmark oil prices were lower last week, recording their first weekly loss in three weeks. The federal government s Energy Information Administration revealed that crude inventories fell by 4.3 million barrels for the week ending August 31st, following a decrease of 2.6 million barrels for the previous week. Concerns over weaker demand amid global trade tension equally pressured prices. Figures released in the U.S on Friday indicating a sharp increase in pay and better than expected jobs growth for the month of August strengthened the U.S dollar which, in turn, pressured prices for dollar-denominated oil. The release of weekly data from Baker Hughes indicating the number of active oil rigs in the U.S fell by 2 to 860, failing to impact the market significantly. Numerous monthly oil market reports are due for release next week from the EIA, OPEC and the International Energy Agency. Gold ended lower on Friday, building on a loss for the week in the wake of strong U.S jobs and wage data which provided a boost to the dollar as well as supporting expectations for additional interest rate hikes this year. Increased rates could prove to be worrisome for gold since it is a non-interest bearing asset, hence investors might shy away from the precious metal in search of greater returns while a strengthening dollar would also keep it under pressure. Looking forward, the August U.S producer price index reading is due Wednesday, while the consumer-price index data is due Thursday with both readings expected to give insight into the likely interest rates hikes and consequently influence the price of the precious metal.

5 BEMO WEEKLY INSIGHTS I ECO CALENDAR KEY ECONOMIC INDICATORS Country Event Surv(M) Prior Time Date Time China CPI YoY 2.10% 2.10% 4:30 9/10/2018 China PPI YoY 4.00% 4.60% 4:30 9/10/2018 Eurozone ECB Main Refinancing Rate 0.00% 0.00% 14:45 9/13/2018 France CPI YoY 2.30% 2.30% 9:45 9/13/2018 Germany ZEW Survey Expectations :00 9/11/2018 Germany ZEW Survey Current Situation :00 9/11/2018 Italy CPI EU Harmonized YoY 1.70% 1.70% 11:00 9/14/2018 Italy Industrial Production MoM -0.40% 0.50% 11:00 9/12/2018 Japan Industrial Production MoM % 7:30 9/14/2018 Japan GDP SA QoQ 0.70% 0.50% 2:50 9/10/2018 Japan BoP Current Account Balance  b  b 2:50 9/10/2018 Japan GDP Annualized SA QoQ 2.60% 1.90% 2:50 9/10/2018 Japan Core Machine Orders MoM 5.50% -8.80% 2:50 9/13/2018 Japan PPI YoY 3.10% 3.10% 2:50 9/13/2018 Japan Tertiary Industry Index MoM 0.10% -0.50% 7:30 9/11/2018 United Kingdom Bank of England Bank Rate 0.75% 0.75% 14:00 9/13/2018 United Kingdom Jobless Claims Change k 11:30 9/11/2018 United Kingdom Industrial Production MoM 0.20% 0.40% 11:30 9/10/2018 United States Initial Jobless Claims 210k 203k 15:30 9/13/2018 United States CPI MoM 0.30% 0.20% 15:30 9/13/2018 United States U. of Mich. Sentiment :00 9/14/2018 United States DOE U.S. Crude Oil Inventories k 17:30 9/12/2018 United States MBA Mortgage Applications % 14:00 9/12/2018 United States Retail Sales Advance MoM 0.40% 0.50% 15:30 9/14/2018 United States Industrial Production MoM 0.30% 0.10% 16:15 9/14/2018 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.