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 % % 10.02% 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 U.S.-based Global Finance magazine has named Riad Salameh as one of the world s best central bank governors for the third time. The Governor of Banque du Liban was awarded the A rank among the 85 central bank governors in the world in the 2018 report by Global Finance magazine. Saudi Arabia has started marketing US dollar-denominated sukuk, or Islamic bonds, with the issue expected to be around $2 billion in size. It would be the kingdom s second international sale of sukuk after a $9 billion transaction last year. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain % 0.66% Kuwait % 3.52% Oman % % Qatar % 17.21% KSA % 5.66% Dubai % % Abu Dhabi % 12.19% 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 % 5.18% -0.19% S&P % 8.05% -1.28% Nasdaq % 15.22% -2.04% Sectors Indices Discretionary % 18.51% -1.76% Staples % -4.03% 2.23% Energy % 1.76% -0.22% Financials % 0.14% 1.25% Healthcare % 11.92% -0.35% Industrials % 2.72% 0.21% IT % 17.23% -1.87% Materials % -2.21% -1.24% Telecom % -4.41% 1.06% Utilities % 2.02% -0.23% Real Estate % 1.61% 0.08% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE The S&P 500 ended the session little changed as losses in technology stocks offset optimism that trade talks with China will resume before the Trump administration imposes another round of tariffs. European equities inched higher as energy shares rose along with crude prices and mining stocks bounced back from their recent sharp sell-off. More losses were witnessed in yesterday s Asian markets, before snapping back in this morning s session. Losses were attributed to a multitude of reasons ranging from the U.S dollar to trade. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % 0.37% 0.49% Developed % 2.34% 0.40% Emerging % % 0.45% Frontier % % 0.10% Europe % -3.42% 1.03% Latin America % % -0.70% Asia Pacific % -8.62% 0.39% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -5.06% 0.96% FTSE % -4.87% 1.14% CAC % 0.37% 2.03% DAX % -6.85% 1.60% Swiss SMI % -4.50% 0.54% Nikkei % 0.24% -0.03% CSI % % -0.26% 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 % -0.36% - EUR/USD % -0.97% USD/JPY % 0.05% GBP/USD % -0.43% USD/CAD % -0.41% AUD/USD % -1.32% NZD/USD % -0.32% USD/CHF % 0.06% USD/NOK % -0.83% USD/SEK % -0.76% USD/CNY % -0.17% Major EUR Cross Rate EUR/GBP % -0.03% EUR/CHF % -0.73% EUR/JPY % -0.61% DISTANCE FROM 52 WEEKS LOW/HIGH The U.S dollar lost ground against oil-related currencies as crude gained, with the Canadian dollar and Norwegian krone among best G-10 performers on the day. The yen strengthened as global trade tensions and a slide in Japanese stocks spurred demand for haven assets. The pound jumped to a fresh high against the dollar after a report that the EU Commission will begin to redraft the Irish Brexit protocol in an effort to appease the U.K. The euro slipped as the ECB lowered Euro-area growth outlook before paring losses. 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 U.S. Treasury yields drifted lower on Wednesday after data showed the first drop in August producer prices in 1-1/2 years and ahead of an auction of $23 billion in new supply of 10- year notes. The German bunds gained during afternoon session Wednesday after the Eurozone's industrial production for the month of July disappointed market participants, missing expectations. Focus remains on the ECB s monetary policy decision today. Gilts lagged the broader gains in bund and U.S treasuries. 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) (0.0061) USD IG Spread 1.51 (0.0100) USD HY Spread 4.3 (0.0800) USD HY Spread 3.31 (0.0700) EU vs US 10Y Spread (0.0391) EU vs US 10Y Spread (0.0216) EU vs US 2Y Spread (0.0601) EU vs US 2Y Spread (0.0389) EM vs Benchmark Spread (0.0140) EM vs Benchmark Spread (1.100) 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 hovered around $80 a barrel on Wednesday, nearing a four-year high as traders braced for Hurricane Florence, coinciding with mounting concerns about a global supply shortfall. Gold rose the most in more than two weeks as the dollar tumbled on proposed U.S.- China trade talks. 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 % DISCOVERY INC - DISCA DISCOVERY INC-C DISCK ADV MICRO DEVICE AMD ALTRIA GROUP INC MO FREEPORT-MCMORAN FCX NETFLIX INC NFLX CIMAREX ENERGY C XEC PHILIP MORRIS IN PM INTL FLVR & FRAG IFF COTY INC-CL A COTY S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % MICRON TECH MU SUNTRUST BANKS STI TWITTER INC TWTR COMERICA INC CMA LAM RESEARCH LRCX KLA-TENCOR CORP KLAC SOUTHWEST AIR LUV REGIONS FINANCIA RF WELLS FARGO & CO WFC M&T BANK CORP MTB S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Citigroup promised to bring its expense structure and returns closer to Wall Street rivals, announcing raised targets for cost savings and returns on equity. The bank is now aiming for $2.8bn in cost savings by 2020, through job cuts and automation and cutting its property portfolio, it said. The previous target had been $2.5bn. Apple unveiled its most expensive iphone ever, alongside a new, higher-priced Watch with additional medical features, as it sought to continue revenue growth from its flagship products. rice rises have formed a key part of Apple s revenue growth story in the last year, allowing it to increase revenues despite slower increases in unit volumes. 3M shares tumbled on Wednesday afternoon as management at the Post-it note-maker warned investors that growth at some of its business units would come in at the lower end of guidance. The Minnesota-based industrial conglomerate in April and July. Ernst & Young reported record global revenues of around $35 billion. EY s results showed that its audit practice remained its most important division in the financial year ending in June, accounting for 36 per cent of global revenues. Shares in tobacco companies jumped amid a crackdown by US officials from Food and Drug Administration on the e-cigarette industry, warning that teenage consumption of electronic cigarettes had reached epidemic proportions. Tencent-backed Nio has raised $1bn in its Initial Public Offering, a little more than half the $1.8bn it was targeting, in a worrying sign for Chinese start-ups aiming to tap the public markets. Nio is the first Chinese electric car start-up to list. Sources: Seeking Alpha, Financial Times, Reuters

7 DAILY MARKETS BRIEF I ECONOMIC DATA KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Canada New Housing Price Index MoM 0.10% % 15:30 Eurozone ECB Main Refinancing Rate 0.00% % 14:45 Eurozone ECB Deposit Facility Rate -0.40% % 14:45 Eurozone ECB Marginal Lending Facility 0.25% % 14:45 France CPI YoY 2.30% % 9:45 France CPI EU Harmonized YoY 2.60% % 9:45 France CPI MoM 0.50% % 9:45 Germany CPI YoY 2.00% % 9:00 Germany CPI MoM 0.10% % 9:00 Germany CPI EU Harmonized YoY 1.90% % 9:00 Germany CPI EU Harmonized MoM 0.00% % 9:00 Japan Core Machine Orders MoM 5.50% 11.00% -8.80% 2:50 Japan PPI YoY 3.10% 3.00% 3.10% 2:50 United Kingdom Bank of England Bank Rate 0.75% % 14:00 United Kingdom BOE Asset Purchase Target 435b b 14:00 United States Initial Jobless Claims 210k k 15:30 United States CPI MoM 0.30% % 15:30 United States CPI Ex Food and Energy MoM 0.20% % 15:30 United States Monthly Budget Statement -$187.0b -- -$107.7b 21:00 United States CPI YoY 2.80% % 15:30 United States Continuing Claims 1710k 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.