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 % % 10.85% BLC Listed % 0.00% BOB Listed % 0.00% Byblos Listed % % 9.67% BEMO Listed % 19.23% BLOM Listed % % 12.21% Trading RYMCO % 1.54% Industrial Holcim % 14.80% Ciments Blancs % 26.22% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE USD SOVEREIGN CURVE Dubai s non-oil foreign trade recorded $175.5 billion in the first half of 2018, an increase of Dh5 billion from 2017 figures. Additionally, Dubai s re-exports registered a $6.53 billion increase and grew 14 per cent to $55.27 billion while imports touched $103.6 billion and exports totaled $17.7 billion, reported Emirates news agency Wam. Saudi Aramco plans to spend more than $133 billion on oil and gas drilling over the next ten years, as stated by senior vice president of upstream Mohamad Al-Qahtani at the first graduation ceremony of the Saudi Arabian Drilling Academy. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain % 0.63% Kuwait % 3.52% Oman % % Qatar % 15.25% KSA % 5.77% Dubai % % Abu Dhabi % 10.87% 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 % 6.18% 1.13% S&P % 8.63% 0.50% Nasdaq % 15.25% -0.28% Sectors Indices Discretionary % 18.24% 0.84% Staples % -4.68% -1.18% Energy % 3.22% 0.46% Financials % 0.71% 0.60% Healthcare % 13.04% 0.28% Industrials % 4.73% 0.76% IT % 17.68% -1.53% Materials % -1.60% -0.93% Telecom % -4.41% 0.07% Utilities % 2.34% -2.10% Real Estate % 1.06% -0.09% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE U.S. stocks rose amid a new round of tariffs between the world s two largest economies that failed to dent investor hopes that a resolution will be reached. Consumer-discretionary, industrial and energy companies led the gains. European shares managed to edge a small gain as stocks stayed calm after the U.S. s latest tariffs on another $200 billion of Chinese goods appears to be priced in by markets Similarly to stocks elsewhere, Asian stocks largely shrugged off tariffs concerns and were able to extend gains to a second day. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % 1.35% -0.44% Developed % 3.27% -0.04% Emerging % % -2.56% Frontier % % -0.42% Europe % -2.95% -3.05% Latin America % % 0.36% Asia Pacific % -6.84% -2.21% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -4.15% -3.86% FTSE % -5.04% -1.38% CAC % 0.96% -5.34% DAX % -5.88% -3.31% Swiss SMI % -4.97% -1.61% Nikkei % 4.28% 1.44% CSI % % 2.46% 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 % -0.02% USD/JPY % -1.78% GBP/USD % 0.09% USD/CAD % -0.02% AUD/USD % 0.12% NZD/USD % 0.19% USD/CHF % -0.86% USD/NOK % -0.63% USD/SEK % -0.83% USD/CNY % 0.17% Major EUR Cross Rate EUR/GBP % 0.19% EUR/CHF % -1.37% EUR/JPY % -1.54% DISTANCE FROM 52 WEEKS LOW/HIGH The safe-haven yen slipped to its lowest level in almost two months as concerns about a U.S.- China trade war were brushed off while commodity-sensitive currencies such as the Canadian dollar and the Norwegian krone advanced amid higher oil prices. The dollar relinquished modest gains after China announced it will levy $60 billion of retaliatory tariffs on U.S. goods, while the euro touched session highs as global bond yields advanced. The British pound succumbed to some profit taking as it pulled back from six-week highs amid a more cautious Brexit rhetoric in anticipation of the European Union summit this week. 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 Yields across the U.S. Treasury yield curve rose in Tuesday s trading as the safe-haven instruments were sold after the U.S and China imposed a new round of tariffs on each other. Yields have climbed to their highest level since May. Most maturities along the German sovereign yield curve were little changed, while 30-year yields rose in Tuesday s trading. ECB President Draghi s speech yesterday avoided discussion of monetary policy and focused on banking supervision issues. The Bank of Japan reiterated this morning that it would keep interest rates extremely low. 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 1.48 (0.0100) USD HY Spread 4.3 (0.0800) USD HY Spread 3.17 (0.0500) 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 (1.800) 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 % Oil prices were higher on Tuesday as Saudi Arabian officials said they are comfortable with Brent prices going above $80 a barrel as markets adjust to the loss of supply from U.S. sanctions. Gold failed to hold above $1,200 and remained sideways amid higher U.S treasury yields. 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 % UNUM GROUP UNM NETFLIX INC NFLX UNION PAC CORP UNP SYMANTEC CORP SYMC NORFOLK SOUTHERN NSC MICRON TECH MU BRIGHTHOUSE FINA BHF L BRANDS INC LB TECHNIPFMC PLC FTI MARATHON OIL MRO S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % GENERAL MILLS IN GIS FEDEX CORP FDX MARSH & MCLENNAN MMC ABBVIE INC ABBV BORGWARNER INC BWA TE CONNECTIVITY TEL CARMAX INC KMX CAMPBELL SOUP CO CPB KRAFT HEINZ CO/T KHC AUTOZONE INC AZO S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Some of the world s biggest consumer companies such as Nestlé, Unilever and Coca-Cola have submitted non-binding bids for GlaxoSmithKline s nutrition business as competition intensifies to secure the company s prized Horlicks malted drink brand ahead of an auction later this year. Tencent investment director Jonathan Lai has left the company to join the US-based hedge fund Coatue Management, following months of regulatory crackdowns on the Chinese tech giant s core gaming business. Ireland has collected 14.3bn in disputed back taxes and interest from Apple, more than two years after Brussels decided that the tech giant s tax deal with the country violated EU law. The announcement was made by the Irish finance minister. Tesla is under investigation by the US Department of Justice over chief executive Elon Musk s claim last month that he had secured funding to take the electric car company private. Tesla said it had received a voluntary request for documents, and emphasized there had been no subpoena, a request for testimony, or any other formal process from federal investigators. BAE Systems has finalized a 5bn deal to supply Qatar with 24 Typhoon fighter jets after it received the first payment on the contract, the company said on Tuesday. Renault, Nissan and Mitsubishi are set to install technology into their cars that will allow motorists to use Google Maps, control music by speaking and even predict breakdowns. The technology partnership between Google and the three-group Alliance, will roll out into vehicles from Viacom has struck a deal with Netflix to produce an exclusive new Nickelodeon series, the latest move by chief executive Bob Bakish to push the company beyond traditional television. Sources: Seeking Alpha, Financial Times, Reuters

7 DAILY MARKETS BRIEF I ECONOMIC DATA KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Eurozone EU27 New Car Registrations % 9:00 Japan BOJ Policy Balance Rate -0.10% -0.10% -0.10% 5:47 Japan Trade Balance -Â 483.2b -Â 444.6b -Â 231.2b 02:50 Japan Trade Balance Adjusted -Â 144.1b -Â 190.4b -Â 45.6b 02:50 Russia Unemployment Rate 4.70% % 16:00 Russia Retail Sales Real YoY 2.50% % 16:00 Russia Real Wages YoY 7.50% % 16:00 United Kingdom CPI YoY 2.40% % 11:30 United Kingdom CPI MoM 0.50% % 11:30 United Kingdom CPI Core YoY 1.80% % 11:30 United Kingdom PPI Output NSA MoM 0.20% % 11:30 United Kingdom PPI Output NSA YoY 2.90% % 11:30 United Kingdom RPI MoM 0.60% % 11:30 United Kingdom RPI YoY 3.20% % 11:30 United Kingdom Retail Price Index :30 United Kingdom RPI Ex Mort Int.Payments (YoY) 3.20% % 11:30 United States DOE U.S. Crude Oil Inventories -2500k k 17:30 United States MBA Mortgage Applications % 14:00 United States Housing Starts 1238k k 15:30 United States Current Account Balance -$103.4b -- -$124.1b 15:30 United States Building Permits 1310k k 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.