BEMO WEEKLY INSIGHTS I EQUITY MARKETS INTERNATIONAL MARKETS INDICES Last Price WTD % YTD % 10D Vol World 1345.22 1.44% 7.27% -0.59% Developed 2248.93 1.26% 6.92% -0.75% Emerging 1273.07 2.79% 9.89% 0.27% Frontier 3187.92 0.72% 6.68% 0.13% Europe 135.19-0.43% 2.88% 0.43% Latin America 3241.47 4.94% 14.61% 0.07% Asia Pacific 187.22 1.80% 7.71% 0.49% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx 50 3647.41-0.49% 4.09% 0.47% FTSE 100 7665.54-0.65% -0.29% 0.58% CAC 40 5529.15-0.23% 4.08% 0.54% DAX 13340.17-0.92% 3.27% 0.00% Swiss SMI 9515.56-0.14% 1.42% 0.00% Nikkei 225 23629.34-0.79% 3.80% -1.63% CSI 300 4302.018-0.80% 6.73% 5.51% INTERNATIONAL MARKETS INDICES Last Price WTD % YTD % 10D Vol Major Indices DowJones 26616.71 1.53% 7.68% 0.19% S&P 500 2872.87 1.41% 0.00% -0.58% Nasdaq 7505.77 1.32% 0.00% -0.69% Sectors Indices Discretionary 868.00 2.12% 10.53% -2.20% Staples 605.24 0.42% 3.04% 0.62% Energy 573.24-0.57% 7.47% -0.89% Financials 501.29 1.35% 8.05% -0.68% Healthcare 1059.33 2.86% 10.77% 0.79% Industrials 678.74 1.20% 6.42% -1.42% IT 1203.89 1.12% 8.83% 0.05% Materials 401.59 1.46% 5.98% -3.87% Telecom 166.88 1.15% 0.49% 0.10% Utilities 259.13 1.96% -3.08% 0.50% Real Estate 199.06 1.28% -2.35% 0.79% Trump is expected to propose increasing U.S. defense spending to $716B in FY 2019 (beginning October 2018) in his budget request to be released next month, the Washington Postreports. Airbus CEO Tom Enders says the company will push ahead at full throttle with plans for a new assembly line in Alabama for Bombardier s CSeries jet following today's legal victory for the European company's Canadian partner against Boeing. British Prime Minister Theresa May says Uber shouldn t be shut down but that the company needs to comply with labor and safety standards. As expected, the ECB leaves its benchmark interest rates in place, and says it continues to see rates at their present level for an extended period. The Trump administration supports bipartisan bills in Congress to toughen U.S. foreign investment rules amid growing concern about Chinese efforts to buy U.S. high-tech companies, the White House said in a statement. The legislation would expand CFIUS' reach to allow it to review, and potentially reject, smaller investments and add new national security factors for the committee to consider. INDICES PERFORMANCE VS VOLATILITY SECTORS PERFORMANCE VS VOLATILITY
BEMO WEEKLY INSIGHTS I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price WTD % 10D Vol 25RR Major USD Cross Rate USD Index 1131.94 1.19% 0.15% - EUR/USD 1.2399-0.23% 0.24% 0.103 USD/JPY 108.97 0.36% 0.50% -1.195 GBP/USD 1.4121-0.28% 0.32% 0.448 USD/CAD 1.2351 0.35% 0.45% 0.098 AUD/USD 0.8082-0.35% 0.47% 0.160 NZD/USD 0.7324-0.35% -0.21% 0.085 USD/CHF 0.9377 0.57% 1.17% -0.860 USD/NOK 7.7111 0.27% 0.63% 0.208 USD/SEK 7.8886 0.26% 0.05% 0.230 USD/CNY 6.3269-0.02% -0.24% 0.058 Major EUR Cross Rate EUR/GBP 0.87801 0.00% 0.02% -0.145 EUR/CHF 1.16264 0.14% 0.11% -0.480 EUR/JPY 135.1 0.10% 0.05% -0.538 FX PERFORMANCE VS VOLATILITY MARKET COMMENTARY Appearing on CNBC, the Treasury Secretary claims he wasn't trying to move the greenback on Wednesday when he said "a weak dollar is good for us." Uh-huh. The end of Davos and the weekend can't come fast enough. The dollar is going to get stronger and stronger, the president tells CNBC. Ultimately, he says, he wants to see a strong dollar. As for Treasury Secretary's Mnuchin's weak dollar words from yesterday, Trump says they were taken out of context. Already shaking up the financial services industry with its no-commission stock-trading app, Robinhood moves into the nascent cryptocurrency trading area. Beginning in February, users will be able to trade Bitcoin and Ethereum with no added transaction fees. The U.S. is pressing Turkey and its Kurdish forces to pull back from a deepening military conflict in Syria, with President Trump taking the case directly to Recep Tayyip Erdogan in a call on Wednesday. While the lira showed signs of nervousness about the campaign last week, Turkey's Borsa Istanbul keeps hitting new all-time record highs. Negotiators from 11 Pacific Rim nations have agreed on a new Trans-Pacific Partnership amid an arrangement on autos with Japan and the suspension of intellectual property provisions that had been a concern for Canada. DISTANCE FROM 52 WEEKS LOW/HIGH 25 RISK REVERSAL
BEMO WEEKLY INSIGHTS I FIXED INCOME GLOBAL BOND INDICES Yield Yield (in Bps) Benchmark Indices US 10 Years Benchmark 2.6973 0.084 EU 10 Years Benchmark 0.646 0.085 UK 10 Years Benchmark 1.444 0.091 Sovereign Bonds US Treasury Bond 2.415 0.049 Eurozone Sovereign Bond 0 U.K. Sovereign Bond 0 Japan Sovereign Bond 0 USD Emerging Sovereign Bond 0 Corporate Bonds US Investment Grade Bond 0 US High Yield Bond 0 EUR Investment Grade Bond 0 EUR High Yield Bond 0 USD Emerging Market IG & HY 0 30 DAYS HIGH YIELD VS INVESTMENT GRADE Voters in southern Cyprus are heading to the polls for a presidential election, seeking more benefits from an economy on the rebound after a severe financial crisis. "I would do TPP if we were able to make a substantially better deal," President Trump said at the WEF in Davos. "The deal was terrible, the way it was structured was terrible. If we did a substantially better deal, I would be open to TPP." As expected, the ECB leaves its benchmark interest rates in place, and says it continues to see rates at their present level for an extended period. South Korea's gross domestic product saw a quarterly contraction in the final three months of 2017, falling by a seasonally adjusted 0.2%. The dip is partly attributable to a base effect from outstanding growth in Q3, as well as the 10-day Chuseok autumn holiday that hit industrial output. Venezuela will hold presidential elections before the end of April as President Nicolas Maduro looks to consolidate power amid a major economic crisis. It comes after the EU slapped sanctions on seven Venezuelan officials for a host of alleged human-rights abuses. SOVEREIGN BENCHMARK 10 Y YIELD CHANGES UNITED STATES EUROPEAN UNION UNITED KINGDOM....... LAST WEEK - CURRENT EU VS US 2Y & 10Y BENCHMARK SPREAD
BEMO WEEKLY INSIGHTS I COMMODITIES ENERGY PRECIOUS METALS BASE METALS Energy Last Price WTD % WTI Crude Future 66.21 2.70% Brent Crude Future 70.31 0.50% NYMEX Gasoline 194.2 1.74% NYMEX Heat Oil 212.85 2.03% ICE Gasoil 627 1.33% NYMEX Natural Gas 3.4-1.28% ENERGY PERFORMANCE VS VOLATILITY Precious Metals Last Price WTD % Gold Spot $/Oz 1347.42 0.46% Silver Spot $/Oz 17.3679 1.86% Platinum Spot $/Oz 1008.09 0.04% Palladium Spot $/Oz 1089.63-0.50% Gold Future 1350.7 0.67% Silver Future 17.35 2.58% PRECIOUS METALS PERFORMANCE VS VOLATILITY Base Metals Last Price WTD % LME Aluminum 2257 1.23% LME Copper 7085 2.34% LME Zinc 3478 1.93% LME Nickel 13650 6.23% LME Lead 2593-0.58% LME Tin 21600 4.30% AGRICULTURAL Agricultural Last Price WTD % Corn CBT 358.5 2.06% Wheat CBT 446.75 5.99% Soybeans CBT 998 1.19% Bean Meal CBT 340.3 0.21% Rough Rice CBT 12.33 1.07% MDE Palm Oil 2514 0.80% Soybean CBT 32.93 1.26% Coffee ICE 125.15 3.47% Sugar #11 ICE 13.36 1.29% Cotton #2 ICE 80.05-2.69% Cocoa ICE 1986 2.95% Ethanol CME 1.38 2.07% Lumber CME 487.3 3.26% Orange Juice ICE 149.8 0.94% Live Cattle CME 124.625-0.14% Feeder Cattle CME 146.725-0.17% Lean Hogs CME 73.8-1.14% The total U.S. rig count increased by 11 to 947 following last week's decrease of 3, according to the latest weekly survey from Baker Hughes. Taking a swipe at the International Energy Agency, Saudi Energy Minister Khalid Al-Falih accused the body of overhyping the impact of U.S. shale growth on the oil market. "I was not disputing the amazing revolution of shale. [But] in the overall global supply demand picture it s not going to wreck the train. That's the core job of the IEA, not to take it out of context." U.S. WTI crude oil surpasses $65/bbl for the first time since December 2014 before pulling back slightly, after data showed the 10th straight weekly drop in U.S. crude stockpiles.
BEMO WEEKLY INSIGHTS I ECO CALENDAR ENERGY Country Event Surv(M) Prior Time Date Time Canada Markit Canada Manufacturing PMI -- -- 16:30 02/01/2018 16:30 China Caixin China PMI Mfg 51.5 -- 3:45 02/01/2018 3:45 Eurozone GDP SA QoQ 0.60% -- 12:00 01/30/18 12:00 Eurozone GDP SA YoY 2.70% -- 12:00 01/30/18 12:00 Eurozone Markit Eurozone Manufacturing PMI 59.6 -- 11:00 02/01/2018 11:00 France Markit France Manufacturing PMI 58.1 -- 10:50 02/01/2018 10:50 France CPI YoY 1.20% -- 9:45 01/31/18 09:45 Germany Markit/BME Germany Manufacturing PMI 61.2 -- 10:55 02/01/2018 10:55 Italy Manufacturing Confidence 110.5 -- 11:00 01/30/18 11:00 Italy CPI EU Harmonized YoY 0.80% -- 12:00 02/02/2018 12:00 Italy Markit/ADACI Italy Manufacturing PMI 57.4 -- 10:45 02/01/2018 10:45 Japan Industrial Production MoM 1.50% -- 1:50 01/31/18 01:50 Japan Jobless Rate 2.70% -- 1:30 01/30/18 01:30 Japan Nikkei Japan PMI Mfg -- -- 2:30 02/01/2018 2:30 Russia Markit Russia PMI Mfg 52.1 -- 8:00 02/01/2018 8:00 United Kingdom Markit UK PMI Manufacturing SA 56.5 -- 11:30 02/01/2018 11:30 United States Change in Nonfarm Payrolls 180k -- 15:30 02/02/2018 15:30 United States Initial Jobless Claims 235k -- 15:30 02/01/2018 15:30 United States FOMC Rate Decision (Upper Bound) 1.50% -- 21:00 01/31/18 21:00 United States ISM Manufacturing 58.6 -- 17:00 02/01/2018 17:00 United States Conf. Board Consumer Confidence 123 -- 17:00 01/30/18 17:00 United States DOE U.S. Crude Oil Inventories -- -- 17:30 01/31/18 17:30 United States U. of Mich. Sentiment 95 -- 17:00 02/02/2018 17:00 United States Durable Goods Orders -- -- 17:00 02/02/2018 17:00 United States MBA Mortgage Applications -- -- 14:00 01/31/18 14:00 Banque BEMO sal Head Office - Private and Corporate Banking 96 Pasteur Building, Pasteur Street, Medawar Area, P.O. Box: 16-6353, Beirut - Lebanon Tel: + 961 1 568 250 Fax: + 961 1 568 266 Wealth & Investment Management research@bemobank.com Beirut Central District Riad El Solh Square, Esseily Building Bloc A, 7th Floor Beirut - Lebanon Tel: + 961 1 992 600 Fax: + 961 1 983 368 www.bemobank.com 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.