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 % -4.37% Development and Reconstruction Solidere A % % Solidere B % % Banking Audi Listed % 0.00% 11.56% BLC Listed % 0.00% BOB Listed % 0.00% Byblos Listed % -1.46% 10.39% BEMO Listed % 0.00% BLOM Listed % 0.00% 12.14% Trading RYMCO % 0.00% Industrial Holcim % 0.00% Ciments Blancs % 0.00% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE USD SOVEREIGN CURVE The prices of Lebanese Eurobonds bounced back again Monday after officials reiterated that there was no intention to restructure the public debt. The surge in the price of sovereign bonds was seen as a vote of confidence in the monetary policy by most international investment banks. President Michel Aoun confirmed, on Monday, that the state was fully committed to paying the dues owed to commercial banks in terms of sovereign bonds. Source: Daily Star, Gulf Base GCC EQUITY INDICES Last Price Daily % YTD % Bahrain % 0.21% Kuwait % 2.89% Oman % -1.01% Qatar % 4.33% KSA % 6.65% Dubai % -1.79% Abu Dhabi % 1.54% 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 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 % 3.16% 0.05% S&P % 4.13% 0.26% Nasdaq % 5.86% 0.72% Sectors Indices Discretionary % 6.47% 0.11% Staples % 2.07% 0.19% Energy % 8.19% -1.08% Financials % 4.32% 0.04% Healthcare % 2.18% -0.15% Industrials % 5.01% 0.41% IT % 3.07% 0.59% Materials % 1.96% 0.41% Telecom % 7.38% 0.53% Utilities % -0.39% -1.16% Real Estate % 3.93% -7.64% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE U.S. stocks edged higher in early trading Tuesday, lifted by technology shares after China said it would increase stimulus measures to combat slowing growth. The S&P 500 opened higher for the first time in 3 trading days, buoyed by the communication services and energy sectors. European stocks advanced, just hours before the U.K. parliament votes on Prime Minister Theresa May s Brexit proposal, which is widely expected to fail, as the euro weakened sharply. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % 4.21% -0.26% Developed % 4.23% -0.17% Emerging % 4.08% -1.52% Frontier % 5.21% 0.17% Europe % 3.17% -0.21% Latin America % 10.18% -6.67% Asia Pacific % 3.92% -1.68% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % 2.22% -0.20% FTSE % 2.48% 0.11% CAC % 1.17% -0.75% DAX % 3.15% -0.01% Swiss SMI % 4.69% -4.76% Nikkei % 2.14% 0.02% CSI % 3.97% -0.67% DEVELOPED VS EMERGING - 30 DAYS CHART EMERGING DEVELOPED INTERNATIONAL EQUITY - 30 DAYS CHART FTSE 100 CAC 40 DAX NIKKEI 225 Source: Bloomberg, Financial Times, Reuters

3 DAILY MARKETS BRIEF I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price Daily % 10D Vol 25RR Major USD Cross Rate USD Index % -0.40% - EUR/USD % -0.31% USD/JPY % -2.66% GBP/USD % 0.16% USD/CAD % -0.44% AUD/USD % 0.13% NZD/USD % -0.20% USD/CHF % -0.17% USD/NOK % 0.05% USD/SEK % -0.02% USD/CNY % -0.17% Major EUR Cross Rate EUR/GBP % -0.38% EUR/CHF % -0.02% EUR/JPY % -1.05% DISTANCE FROM 52 WEEKS LOW/HIGH British pound erases its earlier loss and strengthens 0.2% against the dollar in late afternoon in U.S. ET after Theresa May's Brexit plan was overwhelmingly rejected by Parliament. Before the vote, the pound had weakened as much as 1.5% against the dollar. The Canadian dollar rose against all of its Group-of-10 peers Tuesday, and was on track for its first advance in four days versus the greenback amid an uptick in crude oil prices. Crude was buoyed as analysts predicted a decline in U.S. crude inventories, while China appears to be stepping up efforts to help its economy. 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 Germany s government debt rallied and the euro came under pressure after a report showed growth in Europe s biggest economy cooled to its lowest rate since Risk-on sentiment from Asia hours quickly evaporates in Europe after German Chancellery denies Sun report the nation had offered U.K. further concessions on Brexit divorce deal, prompting a rally in Gilts. Bunds followed, extending gains as stocks dipped into negative territory. 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 (0.0057) USD USD IG 2Y Spread vs 10Y Spread (0.0100) USD IG Spread USD HY Spread 4.3 (0.0800) USD HY Spread 4.5 (0.0600) EU vs US 10Y Spread (0.0391) EU vs US 10Y Spread EU vs US 2Y Spread (0.0601) EU vs US 2Y Spread (0.0399) EM vs Benchmark Spread (0.0140) EM vs Benchmark Spread (2.500) 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 held gains near $52 a barrel on optimism the OPEC+ coalition s production curbs will clear a supply glut that s already showing signs of decreasing. Gold holds decline as investors weigh risk appetite in equity and currency markets with uncertainty surrounding Brexit. 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 FIRST REPUBLIC B FRC EDWARDS LIFE EW NEKTAR THERAPEUT NKTR INCYTE CORP INCY NETFLIX INC NFLX WW GRAINGER INC GWW CITIGROUP INC C BOSTON SCIENTIFC BSX ALEXION PHARM ALXN BRISTOL-MYER SQB BMY S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % PG&E CORP PCG GOODYEAR TIRE GT EDISON INTL EIX ALBEMARLE CORP ALB SHERWIN-WILLIAMS SHW MASCO CORP MAS QUALCOMM INC QCOM CVS HEALTH CORP CVS NEWMONT MINING NEM LOWE'S COS INC LOW S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Facebook plans to invest $300M in local news over the next three years, a defense against flak that it's damaging the business. Airbnb announces it was profitable for a second consecutive year on an adjusted basis but doesn't break out the numbers on its financials. The company says it expects to hit 500M guest arrivals by the end of Q1, up 100M since September. SoftBank's Vision Fund will lead a $700M financing round in construction startup Katerra at an over $4B valuation, according to The Information sources. The deal would push Katerra's total equity capital over $2B. PG&E opens with another sharp drop, triggering a circuit breaker halt; shares have now lost nearly two-thirds of their market value since the company declared its intention to file for Chapter 11 bankruptcy. Apple replaced as many as 11M iphone batteries under its discounted replacement program after a controversial throttling of older devices. The data comes from a new Daring Fireball report, citing comments Tim Cook reportedly made at a January 3 employee meeting. A ruling by the EU Intellectual Property Office went against McDonald's (MCD) yesterday. The restaurant chain lost its rights to the trademark "Big Mac" as the EU ruled in favor of fast-food chain Supermac s out of Ireland. Brazil s power system operator has requested the removal of 662 transformers made by General Electric from the country s grid after several explosions involving the devices, Reuters reports. Sources: Seeking Alpha, Financial Times, Reuters, Wall Street Journal

7 DAILY MARKETS BRIEF I ECONOMIC DATA KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Germany CPI YoY 1.70% 1.70% 1.70% 9:00 Germany CPI MoM 0.10% 0.10% 0.10% 9:00 Germany CPI EU Harmonized YoY 1.70% 1.70% 1.70% 9:00 Germany CPI EU Harmonized MoM 0.30% 0.30% 0.30% 9:00 Italy CPI EU Harmonized YoY 1.20% % 12:00 Italy Industrial Orders MoM % 11:00 Japan Core Machine Orders MoM 3.00% 0.00% 7.60% 1:50 Japan PPI YoY 1.80% 1.50% 2.30% 1:50 Japan Tertiary Industry Index MoM -0.60% -0.30% 1.90% 6:30 Japan Core Machine Orders YoY 0.20% 0.80% 4.50% 1:50 United Kingdom CPI YoY 2.10% % 11:30 United Kingdom CPI MoM 0.20% % 11:30 United Kingdom CPI Core YoY 1.80% % 11:30 United Kingdom PPI Output NSA MoM 0.00% % 11:30 United Kingdom PPI Output NSA YoY 2.90% % 11:30 United Kingdom RPI MoM 0.50% % 11:30 United Kingdom RPI YoY 2.90% % 11:30 United Kingdom Retail Price Index :30 United States DOE U.S. Crude Oil Inventories -2500k k 17:30 United States MBA Mortgage Applications % 14:00 United States Import Price Index MoM -1.30% % 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.