Daily Markets Report. MBIA earnings disappoint investors

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1 Daily Markets Report MBIA earnings disappoint investors US stocks closed flat on Tuesday, with Healthcares (+0.5%) slightly above the market after Senate majority leader Harry Reid told he expects to bring legislation on the healthcare reform to debate next week. MBIA (MBI US, - 27%) posted $727 mn loss on credit derivatives. AIG (AIG US, +3.9%) reported it would be able to report Government credits. 10-year note auction was a decent one and Treasuries little changed. In Asia, trading activity was rather low. Japanese Nikkei closed flat, Korean Kospi added 0.7% and Hang Seng rose by 1.6%. Shanghai indices closed slightly lower after mixed data. Industrial production rose a stronger than expected 16.1% and retail sales beat forecasts with a 16.2% increase. Annual deflation in consumer prices narrowed to -0.5%. But the New loans were the reason for concern, with loans rising RMB 253bn, well down from the peak of RMB 1.9tn. European indices opened higher on Wednesday. Dow Jones Eurostoxx 600 added 0.66% at 09:00 GMT with Basic Materials (+1.87%) and Utilities leading. INGA (INGA NA, +5.18%), Credit Agricole (ACA FP, +4.41%), E.on (EOAN GV, +2.49%) and MAN Group (EMG LN, +3.29%) are among the outperformers. German CPI met expectations in October, having risen 0.1%. November 11, 2009 Market Data* CDS HY 5Y ITX Crossover CDS Japan 5Y CDS EM 5Y CDS Russia 5Y US Tsys 10Y 3.75% +0.04% US Tsys 5Y 2.42% +0.03% Brazil 10Y 5.07% -0.04% UK 10Y 3.81% -0.19% Germany 10Y 3.31% -0.25% LIBOR-OIS EUR/USD % USD/JPY % EUR/GBP % Oil Brent % Gold % Copper % Nickel % S&P % Topix % Shanghai Comp 3, % DJ EURO Stoxx % VIX *As of 8:00 GMT, Bloomberg Key European corporate news - Insurer Swiss Life (SLNH VX) said Wednesday that its third-quarter premium income rose 5% from a year earlier to 3.22 billion Swiss francs ($3.2 billion), while operating costs were cut by 3%. That topped consensus estimates of 3.1 bn. - Italy's UniCredit (UCG IM) said Wednesday that its third-quarter net profit declined 26% to 394 million euros as provisions to cover bad loans roughly doubled to 2.16 billion euro, below consensus of 401 mn. - Henke (HEN3 GY) said Wednesday that third-quarter net earnings rose 70% to 172 million euros ($258 million) from 101 million euros in the same period a year ago. Sales fell 7.3% to 3.49 billion euros. For important disclosure information please refer to the back page

2 - ING Group (INGA NA) reported Wednesday it swung to a third-quarter profit of 499 million euros ($747.8 million) from a year-earlier loss of 478 million euros. Per-share earnings for the Amsterdam financial-services giant were 0.25 euro against a loss of Ahead today Today, UK employment data will be released at 9:30 GMT and BOE inflation report will be out at the same time. The CPI forecast will be in the focus of Forex traders. In the US MBA Mortgage applications will be released at 12:00 and weekly jobless claims statistics will be out at 12:30 GMT. In terms of speakers, ECB Weber will speak at 17:00 GMT on financial crisis implications for the regulatory issues. Economic Calendar* Time, GMT Country Data Per Consensus 11/11/200909:30 UK Claimant Count Rate OCT 5.10% 11/11/200909:30 UK Jobless Claims Change OCT 20.0K 11/11/200909:30 UK Avg Earnings ex bonus 3M/YoY SEP 1.80% 11/11/200909:30 UK ILO Unemployment Rate (3mths) SEP 8.00% 11/12/200912:00 US MBA Mortgage Applications 6-Nov -- 11/12/200913:30 US Initial Jobless Claims 7-Nov 510K 11/12/200913:30 US Continuing Claims 31-Oct 5702K 11/12/200916:00 US DOE U.S. Crude Oil Inventories 6-Nov -- 11/12/200916:00 US DOE U.S. Gasoline Inventories 6-Nov -- 11/12/200916:00 US DOE U.S. Distillate Inventory 6-Nov November 2009

3 Earnings calendar, US* Company Name Ticker Date Time Cons. Macy's Inc M US 11/11/ : Green Mountain Coffee GMCR US 11/11/2009 Aft-mkt RailAmerica Inc RA US 11/11/2009 Aft-mkt Advance Auto Parts Inc AAP US 11/11/2009 Aft-mkt Applied Materials Inc AMAT US 11/11/2009 Aft-mkt November 2009

4 Earnings calendar, Europe* Company Name Ticker Date Time Cons. ING Groep NV INGA NA 11/11/2009 5: Henkel AG & Co KGaA HEN3 GR 11/11/2009 5: Holcim Ltd HOLN VX 11/11/2009 6: Lundin Petroleum AB LUPE SS 11/11/2009 6: Swisscom AG SCMN VX 11/11/2009 6: Securitas AB SECUB SS 11/11/2009 7: J Sainsbury PLC SBRY LN 11/11/2009 7: E.ON AG EOAN GR 11/11/2009 7: Banco Comercial Portugues SA BCP PL 11/11/ : Galp Energia SGPS SA GALP PL 11/11/2009 Aft-mkt Buzzi Unicem SpA BZU IM 11/11/ Societa Cattolica di Assicurazioni CASS IM 11/11/2009 Tognum AG TGM GR 11/11/ Scottish & Southern Energy PLC SSE LN 11/11/ Telefonica SA TEF SM 11/12/2009 Bef-mkt Acciona SA ANA SM 11/12/2009 Bef-mkt 0.61 Portugal Telecom SGPS SA PTC PL 11/12/2009 Bef-mkt 0.12 Q-Cells SE QCE GR 11/12/2009 6: Anheuser-Busch InBev NV ABI BB 11/12/2009 6: K+S AG SDF GR 11/12/2009 6: Telekom Austria AG TKA AV 11/12/2009 6: Hochtief AG HOT GR 11/12/2009 6: Lanxess AG LXS GR 11/12/2009 6: Aegon NV AGN NA 11/12/2009 6: Salzgitter AG SZG GR 11/12/2009 6: i Group PLC III LN 11/12/2009 7:00 BT Group PLC BT/A LN 11/12/2009 7: Repsol YPF SA REP SM 11/12/2009 8: Vallourec SA VK FP 11/12/ : Vivendi VIV FP 11/12/2009 Aft-mkt A2A SpA A2A IM 11/12/ Stada Arzneimittel AG SAZ GR 11/12/ Gamesa Corp Tecnologica SA GAM SM 11/12/ Raiffeisen International Bank RIBH AV 11/12/ United Internet AG UTDI GR 11/12/ Banca Monte dei Paschi di Siena BMPS IM 11/12/ Lottomatica SpA LTO IM 11/12/ Azimut Holding SpA AZM IM 11/12/2009 Unione di Banche Italiane SCPA UBI IM 11/12/ Banca Popolare di Sondrio SCARL BPSO IM 11/12/2009 Celesio AG CLS1 GR 11/12/ November 2009

5 S&P 500 Index, 60 min Technically the S&P 500 broke the neck line what can be considered as a bullish signal. Testing 1100 is highly likely and after consolidation new highs are may be seen by the end of the year. Yet, price should hold above 1110 to confirm the bullish scenario 5 11 November 2009

6 Disclaimer. This report was prepared and provided for information purposes only under the condition it will not form the sole basis for any investment decision. It does not constitute an offer and should not be considered as an offer, or solicitation of an offer, to buy or sell any securities. The information and opinions contained in this report have been received from sources believed to be reliable. While every reasonable effort has been made to obtain accurate information and verify it, IC RUSS-INVEST or its affiliates makes no warranty, express or implied, as to the accuracy, completeness or correctness of the information and opinions contained herein. All such information, opinions and forecasts are subject to further change without notice. The forward-looking statements in this report are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. Neither we nor any of our respective agents, employees or advisors intend or have any duty or obligation to supply, amend, update or revise any of the forward-looking statements contained in this report. IC RUSS-INVEST, its directors and employees may have a position in any of the securities mentioned in this report. INVESTMENT COMPANY IC RUSS-INVEST Moscow Telephone: +7(495) Fax: +7(495) mail@russ-invest.com Mailing address: 5-3/12 Nashchiokinsky Pereulok, bldg. 4, Moscow St-Petersburg Telephone: +7(812) Fax: +7(812) spb@russ-invest.com Mailing address: 52, Fontanky Embankment, St-Petersburg 2007 OJSC «IC RUSS-INVEST» Licenses of FCFM и Licenses of FCFM и Licenses of FCFM November 2009