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DAILY MARKET UPDATE MONDAY, MARCH 15, 2010

EQUITIES _______________________________________________________________________________

Switzerland Europe

Companie Financiere Richemont SA (CFT VX)
• Richemont is in talks to buy the shares in Internet
clothing retailer Net-a-Porter International Ltd. it
doesn’t already own, the Sunday Times reported,
without saying where it got the information.
Richemont controls a 29% stake in the company,
which would be valued at about £350mn ($532.1
mn) if the deal is completed, according to the
Times.
Air France-KLM Group (AF FP)
• Europe’s biggest airline may face new
competition after Turkish Airlines Chief Executive
Officer Temel Kotil said Central Europe is a region
of interest. Turkish Airlines also aims to win market
share from Deutsche Lufthansa AG (LHA GY) and
British Airways Plc (BAY LN).

UBS AG (UBSN VX) BAE Systems Plc (BA/ LN)

• UBS AG is returning to the U.S. mortgage market,
Carsten Kengeter, co-head of UBS’s investment
bank, told the Neue Zuercher Zeitung in an
interview. Separately, UBS is scheduled to release
its annual report.
• Europe’s biggest defense contractor lost a U.K.
Ministry of Defence contract for armoured
vehicles worth more than £1bln to General
Dynamics Corp.

Partners Group Holding AG (PGHN SW) Deutsche Telekom (DTE GY)

• The Swiss money manager, which is focused on • Europe’s biggest phone company wants to
private equity investments, is scheduled to report expand its business by offering new Internet
2009 results. services, aiming at sales of more than €1bln ($1.3
bln) in the near future.

USA

Future Current Chg Pct 1d Trend

DJIA . Mar ’10 10600 -0.33%

S&P 500 Mar ’10 1151.3 0.06% 
Nasdaq 100 Mar ‘10 1926.75 0.08% 

U.S. Market News

AIG has plans to hold back $21mln in bonus payments Monday to former employees (WSJ). JPMorgan and Beijing-based Hopu Investments are advisers
for a $3.1bln energy joint venture between CNOOC and Argentina’s Bridas Energy Holdings (Reuters). Retail apparel giant Phillips-Van Heusen Corp is
nearing a deal to acquire clothing company Tommy Hilfiger for roughly $3bln (WSJ).
COMMODITIES ___________________________________________________________________________
Oil
Crude oil declined for a second day on speculation fuel inventories may remain high as supply from the
Organization of Petroleum Exporting Countries outpaces the recovery in global demand. Oil fell after Iran’s
OPEC governor Mohammad Ali Khatibi said the market may be oversupplied later this year if the group,
meeting March 17, fails to comply with output limits. A report today may show industrial production in the U.S.,
the world’s biggest energy consumer, was little changed in February because of harsh weather, according to a
Bloomberg survey of analysts. Crude oil for April delivery fell as much as 51 cents, or 0.6%, to $80.73 a barrel in
electronic trading on the New York Mercantile Exchange. It was at $80.74 at 2:28 p.m. Singapore time. Futures
have gained less than 2% in 2010. Oil dropped 1.1% to $81.24 a barrel on March 12 after the Reuters/University of
Michigan preliminary index of consumer sentiment unexpectedly declined for a second month. Prices reached
a two-month high of $83.16 that day after the International Energy Agency upgraded its 2010 forecast for oil
demand and the U.S. Commerce Department reported a surprise 0.3% increase in February retail sales.

Gold
Gold rose in Asia as the metal’s drop to a two-week low spurred purchases and a decline in the euro and equity
markets prompted some investors to seek an alternative investment. Gold for immediate delivery gained as
much as 0.3% to $1,105.25 an ounce, before trading at $1,103.65 at 9:10 a.m.in Singapore. The precious metal
fell to $1,098.70 on March 12, the lowest price since Feb. 25. Bullion priced in euro climbed today for the first time
in four days as the 16-nation currency declined.

Soft Commodities
Wheat futures declined in Chicago as the dollar gained, making U.S. crops less attractive to importers and
investors. Soybeans also fell. May-delivery wheat fell as much as 0.6% to $4.825 a bushel in after-hours electronic
trading on the Chicago Board of Trade, before trading at $4.8325 at 1:33 p.m. Singapore time. Wheat exports
from the U.S. dropped to 56 million bushels in December, from 70.6 million bushels a month earlier, the nation’s
Department of Agriculture said March 12. May-delivery soybeans were little changed at $9.25 a bushel at 1:49
p.m. p.m. Singapore time after trading between $9.2175 and $9.275 a bushel. The oilseed may decline this week
as record South American crops slow demand for U.S. supplies, the Bloomberg News survey showed. Twenty-one
of 39 respondents said to sell the oilseed. Soybeans may decline below $9 a bushel for the time since October
as China, the world’s biggest importer, may switch more cargoes from the U.S. to South America, according to a
separate Bloomberg survey. Prices may decline next month as more cancelations may be reported, according
to nine out of 10 traders and researchers contacted in China for the survey. A net purchase of 192,400 tons of
U.S. soybeans from China was cancelled in the week through March 4, the Department of Agriculture said last
week.

FX ____________________________________________________________________________________
The dollar and yen rose amid concern tensions between the U.S. and China will escalate and sovereign credit
ratings will deteriorate, boosting demand for the currencies as a refuge. Japan’s yen strengthened versus 12 of
its 16 major counterparts after Chinese Premier Wen Jiabao rebuffed calls for the yuan to appreciate, risking a
worsening of relations with the U.S. The pound fell for the first time in three days against the dollar after Moody’s
Investors Service said the U.K. has moved “substantially” closer to losing its AAA credit rating as the cost of
servicing its debt rose. The dollar rose to $1.3741 per euro as of 3:08 p.m. in Tokyo from $1.3769 in New York on
March 12. It was at 90.59 yen from 90.56 yen. The euro slipped to 124.47 yen from 124.69 yen. The pound
declined to $1.5165 from $1.5204 in New York on March 12. The currency fetched 90.60 pence per euro from
90.53 pence. The Dollar Index, which tracks the currency against those of six major U.S. trading partners, rose
0.1% to 79.928.

FIXED INCOME ___________________________________________________________________________

The difference between 2- and 10-year Treasury yields narrowed, extending the spread’s longest stretch of
weekly declines since 2008, before reports that economists said will add to evidence growth is slowing. Ten-year
yields were near the lowest in a week on speculation the reports will give Federal Reserve policy makers meeting
tomorrow more reason to maintain their position that interest rates should stay low for an “extended period.” U.S.
industrial production stopped growing last month and manufacturing in the New York region slowed, according
to Bloomberg News surveys before central bank reports today. The 10-year note yielded 3.70% as of 6:31 a.m. in
London, according to BGCantor Market Data. The rate fell to 3.68% on March 12, the lowest since March 9. The
3.625% security due February 2020 traded at 99 3/8. The yield advantage of 10-year debt over 2-year notes
narrowed 3.6 basis points last week, the fourth week it had shrunk. That is the longest stretch of declines since
2008, according to Bloomberg data. The spread narrowed to 2.75% points today after reaching 2.73 points on
March 12, matching the least since Feb. 1.
GLOBAL FIGURES ___________________________________________________________________________________________
Equities Commodities
Index Current Change % Change % YTD Index Current Net Change 1d Change % YTD
MSCI World 1'183 0.20% 1.22% GSCI ER 433.91 -1.33 -1.59%
SPX 1'150 0.40% 3.15% GSCI Agriculture ER 51.39 -0.57 -14.13%
INDU 10'612 0.42% 1.76% GSCI Livestock ER 207.24 -0.19 4.06%
NDX 1'924 0.34% 3.41% GSCI Precious Metal ER 162.83 0.16 1.04%
SX5E 2'896 -0.47% -2.33% GSCI Industrial Metal ER 251.32 -0.44 -0.05%
DAX 5'929 -0.14% -0.48% GSCI Energy ER 275.38 -0.58 0.34%
SMI 6'852 -0.32% 4.67% AIG ER 132.69 -0.92 -4.67%
UKX 5'617 -0.41% 3.78% WTI 82.16 0.05 1.90%
CAC 3'929 -0.37% -0.19% Brent 80.28 -0.20 1.13%
NKY 10'751 0.81% 1.94% Natural Gas 4.46 0.02 -19.00%
HSI 21'156 -0.34% -3.28% Gold 1'112.40 4.20 1.35%
IBOV 69'885 -0.14% 1.89% Silver 17.21 0.04 2.01%
KOSPI 1'663 0.37% -1.19% Aluminium 2'205.30 3.40 0.38%
SENSEX BSE 30 17'169 0.01% -1.69% Copper 7'384.50 -139.50 0.00%
RTSI 1'508 0.24% 4.36% Zinc 2'313.00 -36.75 -9.54%
Tin 17'279.00 -401.00 2.00%
Volatility Nickel 21'224.00 -226.00 14.62%
Current Net Change WTD Net Change 1m Lead 2'226.25 -38.50 -8.35%
VIX 18.06 0.64 -4.67 Corn 365.75 0.50 -13.79%
VSTOXX 21.61 0.73 -6.84 Wheat 479.75 1.00 -13.56%
VDAX 18.42 -0.48 -6.53 Soybean 932.00 1.50 -11.55%
VSMI 15.11 0.52 -4.70 Sugar 19.27 -0.42 -23.62%
Cocoa 2'854.00 10.00 -13.78%
Currencies Coffee 133.75 1.00 -2.80%
Current Change % 1d Change % YTD Cotton 79.05 0.28 3.21%
USD/CHF 1.0669 0.12% 2.97% Live Cattle 91.93 -0.03 4.79%
USD/JPY 90.5700 -0.07% -2.71% Feed Cattle 106.03 0.28 7.37%
CHF/JPY 84.8900 -0.19% -5.85% Lean Hogs 80.30 0.10 3.91%
EUR/USD 1.3700 -0.14% -4.53%
EUR/CHF 1.4626 0.00% -1.50% Credit
GBP/CHF 1.6064 0.17% -4.20% iTraxx Europe IG 5yr 62.91
USD/BRL 1.7639 0.28% 1.10% iTraxx Europe Crossover 5yr 441.81

Libor Rates Swap Rates

USD EUR CHF GBP JPY USD EUR CHF GBP JPY
1M 0.23 0.38 0.09 0.54 0.16 1Y 0.53 1.15 0.48 0.87 0.44
3M 0.26 0.59 0.25 0.64 0.25 2Y 1.16 1.57 0.83 1.64 0.45
6M 0.39 0.91 0.33 0.87 0.45 5Y 2.67 2.51 1.61 2.96 0.70
12M 0.86 1.20 0.64 1.31 0.68 10Y 3.77 3.39 2.39 3.93 1.40

ECONOMIC INDICATORS OF THE WEEK

US: Date Event Survey Actual Prior

15.03.2010 New Motor Vehicle Sales January (MoM) 0.0% -- 2.6%
16.03.2010 Housing Starts February(MoM) -3.6% -- 2.8%
17.03.2010 Producer Price Index February (MoM) -0.2% -- 1.4%
18.03.2010 Initial Jobless Claims (March 13) 455k -- 462k
19.03.2010 Consumer Price Index February (YoY) 1.4% -- 1.%

EU: Date Event Survey Actual Prior

16.03.2010 Euro-Zone CPI February (YoY) 0.9% -- 0.9%
18.03.2010 Euro-Zone Trade Balance January -4.0bn -- 4.4bn

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