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% -0.27% Developed % 0.35% -0.10% Emerging % -1.88% -0.37% Frontier % -7.12% 0.00% Europe % 0.34% 0.04% Latin America % -6.08% -0.02% Asia Pacific % -0.18% -1.20% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % 0.33% -0.04% FTSE % 0.55% -0.01% CAC % 4.33% 0.02% DAX % 0.16% 0.73% Swiss SMI % -6.64% -0.24% Nikkei % -1.25% -0.57% CSI % -5.11% -1.63% INTERNATIONAL MARKETS INDICES Last Price WTD % YTD % 10D Vol Major Indices DowJones % 0.14% -0.10% S&P % 0.00% 0.08% Nasdaq % 0.00% 0.01% Sectors Indices Discretionary % 7.53% 0.01% Staples % % 0.00% Energy % 2.69% 4.40% Financials % -0.59% 0.13% Healthcare % 0.24% -0.82% Industrials % -0.40% -0.01% IT % 10.51% 0.00% Materials % -2.62% 0.24% Telecom % % 0.34% Utilities % -4.76% 0.02% Real Estate % -5.85% -0.03% The S&P 500 ended the week only slightly higher, up 0.3 percent on the week to finish at 2, Energy stocks were the biggest laggards this week, suffering from the largest weekly drop since early February. The slide came about following a sharp decline in oil prices on Friday, as concerns that oil production could be increased since OPEC and Russia contemplate whether to loosen the cap on the supply cuts which were agreed to roughly a year and a half ago. Geopolitical uncertainty, the threat of new tariffs and soft economic data led to European market volatility last week as markets digested the news. The Euro Stoxx 50, a blue chip representation of sector leaders in the Eurozone, finished the week lower at 3,515.36, down 1.88 percent in tandem with its domestic counterparts as the FTSE 100, DAX 30 and CAC 40 all recorded losses for the week. Japanese stocks declined for the week. The Nikkei 225 lost 2.09 percent, closing at 22, thus ending a string of eight positive weeks following concerns over the US - North Korea meeting as well as the prospect of increased American tariffs on foreign cars. 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 % 0.00% - EUR/USD % 0.00% USD/JPY % 0.00% GBP/USD % 0.00% USD/CAD % 0.00% AUD/USD % 0.00% NZD/USD % 0.00% USD/CHF % 0.00% USD/NOK % 0.00% USD/SEK % 0.00% USD/CNY % 0.00% Major EUR Cross Rate EUR/GBP % -0.21% EUR/CHF % 2.40% EUR/JPY % 0.87% FX PERFORMANCE VS VOLATILITY MARKET COMMENTARY The dollar recorded consecutive weekly gains, albeit slightly, as the dollar index was up 0.4 percent despite longer-term bond yields falling and subsequent strengthening of some peers vis-à-vis the dollar. The yen, strengthened against the U.S. dollar as U.S. Treasury yields declined and increased geopolitical tensions regarding North Korea weighted in, traded on Friday at The Euro recorded. The Euro weakened against the dollar last week despite falling yields as rising bond yields in Italy triggered nervousness among investors while brewing political instability in Spain also played its part. The British Pound was close to hitting a five month low versus the dollar on Brexit worries and further signs of weakness in the British economy. 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 U.K. Sovereign Bond 0 Japan Sovereign Bond USD Emerging Sovereign Bond 0 Corporate Bonds US Investment Grade Bond US High Yield Bond EUR Investment Grade Bond EUR High Yield Bond USD Emerging Market IG & HY Treasuries rallied on Friday with the yield on the US 10-year down 4.6 basis points to 2.93 per cent, while that on the two-year was down 3.2 basis points to per cent. The dovish tone of the Fed minutes and growing demand for perceived safe-haven assets amid geopolitical uncertainty helped push longer-term Treasury yields substantially lower for the week. Italian 10-year yields hit a high on Friday in response to the Eurosceptic government that might be taking shape. UK 10 year gilt yield also tumbled sharply and lost -0.18% over week to close at 1.32% amid added Brexit concerns and signs of a slowdown in the British economy. SOVEREIGN BENCHMARK 10 Y YIELD CHANGES UNITED STATES EUROPEAN UNION UNITED KINGDOM LAST WEEK - CURRENT 30 DAYS HIGH YIELD VS INVESTMENT GRADE 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 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 % Oil prices continued to fall from their highest levels in four years amid reports of a looming output increase from several major producers. Oil prices have been under pressure after news that both OPEC and Russia are likely to boost output in order to compensate for lost supply from Venezuela and Iran, countries hit most by U.S sanctions. Gold prices were able to post a recovery as the U.S dollar rally somewhat paused and took a breather. The release of the latest FOMC meeting minutes confirmed this week that an increase in rates will soon be likely if the economic outlook progresses as expected. Gold received additional support this week with an increase in global risk sentiment as a populist government hopes to take charge in Italy while U.S North Korean uncertainty remains.

5 BEMO WEEKLY INSIGHTS I ECO CALENDAR ENERGY Country Event Surv(M) Prior Time Date Time Canada Bank of Canada Rate Decision 1.25% 1.25% 17:00 5/30/ :00 Canada Quarterly GDP Annualized 1.90% 1.70% 15:30 5/31/ :30 Canada Markit Canada Manufacturing PMI :30 6/1/ :30 China Caixin China PMI Mfg :45 6/1/2018 4:45 Eurozone Markit Eurozone Manufacturing PMI :00 6/1/ :00 France Markit France Manufacturing PMI :50 6/1/ :50 France CPI YoY 1.80% 1.60% 9:45 5/31/2018 9:45 Germany Markit/BME Germany Manufacturing PMI :55 6/1/ :55 Germany Unemployment Change (000's) -10k -7k 10:55 5/30/ :55 Italy Manufacturing Confidence :00 5/29/ :00 Italy CPI EU Harmonized YoY 0.90% 0.60% 12:00 5/31/ :00 Italy Markit/ADACI Italy Manufacturing PMI :45 6/1/ :45 Japan Industrial Production MoM 1.40% 1.40% 2:50 5/31/2018 2:50 Japan Jobless Rate 2.50% 2.50% 2:30 5/29/2018 2:30 Japan Nikkei Japan PMI Mfg :30 6/1/2018 3:30 Russia Markit Russia PMI Mfg :00 6/1/2018 9:00 United Kingdom Markit UK PMI Manufacturing SA :30 6/1/ :30 United States Change in Nonfarm Payrolls 190k 164k 15:30 6/1/ :30 United States Initial Jobless Claims 230k 234k 15:30 5/31/ :30 United States GDP Annualized QoQ 2.30% 2.30% 15:30 5/30/ :30 United States ISM Manufacturing :00 6/1/ :00 United States DOE U.S. Crude Oil Inventories k 18:00 5/31/ :00 United States Conf. Board Consumer Confidence :00 5/29/ :00 United States MBA Mortgage Applications % 14:00 5/30/ :00 United States Markit US Manufacturing PMI :45 6/1/ :45 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.