DAILY MARKETS BRIEF I LOCAL MARKETS

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1 DAILY MARKETS BRIEF I LOCAL MARKETS Last Daily % YTD % Dividend % MSCI Lebanon % % Development and Reconstruction Solidere A % % Solidere B % % Banking Audi Listed % % 11.53% BLC Listed % 0.00% BOB Listed % 0.00% Byblos Listed % % 10.24% BEMO Listed % 20.77% BLOM Listed % % 12.14% Trading RYMCO % 0.92% Industrial BEIRUT STOCK EXCHANGE Holcim % 7.19% Ciments Blancs % 13.33% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE USD SOVEREIGN CURVE A new fund accelerator has been announced by the UAE finance ministry with the aim of identifying and supporting innovative local and international businesses in the country. The Mohammed Bin Rashid Fund Accelerator was launched by Sheikh Hamdan bin Rashid Al Maktoum, deputy ruler of Dubai and Minister of Finance to boost growth in the future UAE economy. Total foreign currency assets held by the UAE s Central Bank stood at $94.28 billion in November against $89 billion in October 2018, according to new figures released by the Central Bank of the UAE on Monday. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain (BB) % -0.93% Kuwait (KWSE) % 6.72% Muscat (MSM30 Index) % % Qatar (QE Index) % 23.06% KSA (TADAWUL) % 10.27% Dubai (DFM) % % Abu Dhabi (ADX) % 10.42% 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 Major Indices Last Price Daily % YTD % 10D Vol DowJones % -4.56% -1.47% S&P % -4.78% -1.50% Nasdaq % -2.17% -1.92% Sectors Indices Discretionary % -0.05% -2.92% Staples % -7.57% 2.77% Energy % % -6.60% Financials % % -2.17% Healthcare % 5.09% -0.10% Industrials % % -2.68% IT % -0.17% -3.10% Materials % % -4.24% Com. Services % % 1.09% Utilities % 3.57% 11.93% Real Estate % -2.87% 6.96% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE Major indices on Wall Street all fell in excess of 2 percent yesterday, effectively falling back into correction territory, on concerns about slowing growth. Investor focus remains on the Federal Reserve s rate decision scheduled for tomorrow. European equities fell in tandem with their American counterparts also on concerns over global growth. Europe s major national benchmarks all fell, led by losses in retail and technology sectors. Japanese equities rallied yesterday, buoyed by dip buying after a tumble late last week. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % -8.70% -1.91% Developed % -8.99% -2.72% Emerging % % -0.05% Frontier % % -1.02% Europe % % 0.24% Latin America % % 0.48% Asia Pacific % % 0.31% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % % 0.07% FTSE % % 0.30% CAC % -9.65% 0.18% DAX % % -0.15% Swiss SMI % -8.31% 0.26% Nikkei % -7.25% -1.78% CSI % % -0.23% DEVELOPED VS EMERGING - 30 DAYS CHART EMERGING DEVELOPED Source: Bloomberg, Financial Times, Reuters INTERNATIONAL EQUITY - 30 DAYS CHART

3 DAILY MARKETS BRIEF I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price Daily % 10D Vol 25RR Major USD Cross Rate USD Index % -0.12% - EUR/USD % 0.00% USD/JPY % -0.38% GBP/USD % -0.05% USD/CAD % -1.09% AUD/USD % -1.33% NZD/USD % 1.76% USD/CHF % 0.00% USD/NOK % -0.03% USD/SEK % -0.73% USD/CNY % -0.12% Major EUR Cross Rate EUR/GBP % 0.00% EUR/CHF % -0.02% EUR/JPY % -0.38% DISTANCE FROM 52 WEEKS LOW/HIGH The dollar fell from an 18-month high reached the previous session, ahead of the Federal Reserve's policy meeting tomorrow that will likely result in an increase in interest rates but signal a more cautious tone for the economy next year. The euro, supported by weakness in the dollar, rose even though EU statistics office Eurostat lowered November's inflation reading. The British pound also rose as British Prime Minister May rescheduled a delayed vote in parliament on her Brexit plan for mid-january. The safe-haven Japanese yen strengthened against the dollar as equity markets faltered. EUR/USD 30 DAYS SUPPORT & RESISTANCE Source: Bloomberg, Financial Times, Reuters 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 U.S. Treasury prices gained as weak stocks boosted demand for the low-risk debt ahead of Wednesday's conclusion of the Federal Reserve's two-day meeting at which the U.S. central bank is widely expected to raise interest rates. German yields were relatively unchanged despite losses in equity markets, following the release of final inflation numbers, which showed that consumer prices in the Eurozone eased in November. French government yields fell as the yellow vest protests continued. 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 USD HY Spread 4.3 (0.0800) USD HY Spread 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 Source: Bloomberg, Financial Times, Reuters, Econotimes 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 fell more than 2 percent, with U.S. crude hitting the lowest since September 2017, on signs of oversupply in the U.S and as investor sentiment remained under pressure from concern over global economic growth and fuel demand. Gold rose in the wake of losses in equity markets and a weaker dollar. Source: Bloomberg GOLD 30 DAYS SUPPORT & RESISTANCE SILVER 30 DAYS SUPPORT & RESISTANCE

6 DAILY MARKETS BRIEF I COMPANY NEWS TOP 10 WINNERS Ticker Last Price Daily % S&P 500 Stocks SMITH CORP AOS STANLEY BLACK & SWK HARTFORD FINL SV HIG EVEREST RE GROUP RE HUMANA INC HUM ALLSTATE CORP ALL HUNT (JB) TRANS JBHT NEWMONT MINING NEM BAKER HUGHES A BHGE COMERICA INC CMA TOP 10 LOSERS Ticker Last Price Daily % S&P 500 Stocks XEROX CORP XRX WESTROCK CO WRK PACKAGING CORP PKG ALLIANCE DATA ADS TWITTER INC TWTR AES CORP AES NEKTAR THERAPEUT NKTR FORTINET INC FTNT MACERICH CO MAC PG&E CORP PCG S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Alphabet Inc. s Google is investing more than $1 billion on a new campus in New York, becoming the second major technology company after Amazon to pick America s financial capital to expand and create thousands of jobs. South Korea unveiled a policy package to support its embattled car parts makers industry that includes providing financial support worth over $3.10 billion and encouraging the use of electric cars. Oracle Corp. forecast current-quarter profit above estimates after growth in its cloud services and license support unit helped the business software maker surpass Wall Street expectations for the second quarter. Johnson & Johnson said it plans to buy back up to $5 billion of its stock, after a Reuters report on Friday that the company knew for decades that its Baby Powder contained cancer-causing asbestos wiped about $40 billion from its market value. General Dynamics Corp. put pressure on the Canadian government over the sale of armored vehicles to Saudi Arabia, warning that the federal government would incur billions of dollars of liability by unilaterally scrapping the deal. Malaysia has filed criminal charges against Goldman Sachs Group, related to its dealings with the sovereign wealth fund 1MDB. Goldman Sachs fired back, stating that the previous Malaysian government had lied to the investment bank. Siemens and Alstom have offered to sell either one of their high-speed train technology to address EU antitrust concerns about their plan to create a Franco-German rail company. Sources: Seeking Alpha, Financial Times, Reuters, CNBC

7 DAILY MARKETS BRIEF I ECONOMIC DATA KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Canada Manufacturing Sales MoM 0.40% % 15:30 Eurozone ECB Main Refinancing Operation Result 12:30 Finland Bank of Finland Economic Forecast; Rehn Speaks 11:00 Germany IFO Business Climate :00 Germany IFO Expectations :00 Germany IFO Current Assessment :00 Japan 20Y Bond Average Yield % 0.61% 5:35 Russia PPI YoY 16.90% % Russia PPI MoM 1.00% % Russia Bloomberg Dec. Russia Economic Survey 10:30 United States Housing Starts 1228k k 15:30 United States Building Permits 1260k k 15:30 United States Housing Starts MoM 0.00% % 15:30 United States Building Permits MoM -0.40% % 15:30 United States The George Washington University holds an event 0:00 United States The National Press Club holds an event 0:15 United States National Economists Club Reception 0:30 United States The National Press Club holds an event 1:30 United States Department of Veterans Affairs holds a meeting 15:30 United States Department of Transportation holds an event 16:00 United States Aeronautics & Space Admin. holds an event 16:30 United States International Trade Commission holds an event 16:30 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.