Epstein Secrets

2 Q3 Qs Source: BofA Merl Lynch Global Research, Bloomberg Source: Cleveland Federal Reserve We continue to

ng As a reminder our research team estimate that euro area banks could see as much as €26bn in earnings upli

is starting to approach silver 300% 250% 200% 150% 100% 50% 0% 3M-rolling annualized stdev of daily returns -Silver —Sltcoln —Gold Source Blomberg BoWAMm11 Lynch Gbbal Research A wide array of risks obscure the future of cryptocurrencles When examining the safety of any asset, volatility is no

terest rate 7 Real 10 year yield based on headline CPI 6 5 4 3 1 0 -1 -2 -3 -4 97 99 01 03 05 07 09 11 13 15 17 —US —Japan —Euro Area Source Bloomberg Chart 12: The term premium means that currencies maintain a positive spread between their 2 year and their 10 year interest 2Y10

ico} ico} SSR ERE EERE ES SSR eRe EER EES Source: Bloomberg Source: Bloomberg 4 Global Cross Asset Strategy -

ur China ACT indicator continues to indicate steady growth there too. Our economists forecast 3.5% global GDP growth with EM growth around 4.7%. Our Euro Area growth numbers have been nudged back up towards 1 %% with Brexit not proving to be as much of a drag as feared. We still expect the UK economy to see

een improving Growth indicators have been improving around the world of late. Data since the US election would seem to support that with the PMIs in the Euro Area improving again and their equivalent in the US sustaining the gains seen last month. Our EM indicators remain robust and our China ACT indicator con

(SD) Source: BofA Merrill Lynch Global Research, Bloomberg Chart 5: Financials valuations have recovered si

from the voters) or will we find relief for the markets if by the end of 2017 froma Fillon/Merkel duo being in charge of the two largest economies in the Euro Area. Recovery - the world looks a better place going into 2017 Reflation has been the big theme of the second half of the year. As we had noted in previ

obal Research Reversal: There is good taper and bad taper The outcome of that would likely affect ECB behaviour too. Our central expectation is for Euro Area growth of around 1 %% and inflation nudging only modestly higher. A much more robust global economy and a stronger USD (presumably weaker EUR} would