DAILY MARKET UPDATE

03 May 2010

EQUITIES
Switzerland USA
• UBS AG (UBSN VX)
The bank may report a profit of between 2.2 billion Swiss Future Current Chg Pct 1d Trend
francs ($2 billion) and 2.5 billion Swiss francs when it DJIA . Jun ’10 10985 0.21%

announces results for the first three months of the year on S&P 500 Jun ’10 1187 0.32%

May 4, SonntagsZeitung reported. The newspaper added that Nasdaq 100 Jun ‘10 2003.75 0.28%

CEO Oswald Gruebel plans to stay in his post for another 18
months to three years.

• Xstrata Plc (XTAN SW) U.S. market news

The world’s biggest producer of coal burned by power
stations is studying a merger with Glencore International AG
that would create a mining and trading group valued at $84
billion, the Sunday Telegraph reported.
• Transocean Ltd. (RIGN SW)
The offshore drilling contractor that listed in Switzerland on
April 20 faces lawsuits over environmental damage and
personal injuries caused by the oil spill in the Gulf of Mexico.
Europe
• Allianz SE (ALV GY), Munich Re (MUV2 GY) and Deutsche
Bank AG (DBK GY)
The three companies want to contribute to financial support
for Greece from Germany’s private sector, Financial Times
Deutschland reported. Deutsche Bank may offer a EUR 500
million loan ($664 million) with the same conditions as the
German government is giving and Allianz might lend more
than EUR 300 million and Munich Re more than EUR 200
million.
UAL Corp. and Continental Airlines agreed to merge in a stock
swap valued at $3.7 billion that would create the world’s biggest
carrier. The airlines’ boards approved the transaction yesterday,
and the deal will be announced today it was reported. Lloyd
Blankfein, Goldman Sachs’s chief executive officer, faces
another test of his leadership this week when he addresses the
firm’s annual shareholder meeting 10 days after a showdown with
U.S. senators. Shopping-mall owner General Growth Properties
on Sunday selected as its preferred option for exiting bankruptcy
a revised proposal led by Brookfield Asset Management over a
competing offer from rival mall giant Simon Property Group, it
was reported. Aon, the insurance service holding, reported a
profit of $178 million, or 63 cents a share, down from $280 million,
or 96 cents, a year earlier. On an adjusted basis, earnings from
continuing operations rose to 83 cents from 75 cents as revenue
increased 3.1% to $1.9 billion.

• Bayerische Motoren Werke AG (BMW GY)

The world’s largest maker of luxury cars plans to start
manufacturing its own batteries for electric cars, Focus said,
citing an interview with Klaus Draeger, head of BMW’s
development.

• Ageas (AGS BB)

The Belgian insurer formerly known as Fortis had its credit
ratings placed on CreditWatch with negative implications by
Standard & Poor’s Ratings Services, which cited AG
Insurance SA’s holdings of Greek and Portuguese
government bonds.

COMMODITIES
Oil
Crude oil rose 1.2 per cent to a three-week high and gasoline
surged as the dollar weakened and a report showed the U.S.
economy grew in the first quarter. Crude oil for June delivery rose 98
cents to $86.15 a barrel on the New York Mercantile Exchange, the
highest settlement price since April 6. Futures climbed 2.9 percent in
April for a third straight monthly gain. Gasoline for May delivery
climbed 4.07 cents, or 1.7 percent, to $2.3963 a gallon in New York,
the highest settlement since Sept. 30, 2008.
Gold
Gold climbed to the highest price since December on signals that
sovereign-debt risk may erode the value of currencies, boosting
demand for the precious metal as an alternative asset. Holdings in
the SPDR Gold Trust, the biggest investment fund that buys bullion,
jumped the most in a year. Gold futures for June delivery advanced
$11.90, or 1 percent, to $1,180.70 an ounce on the Comex in New
York, after reaching $1,182.50, the highest level since Dec. 4.

EFG International AG acts as Guarantor for the issuer’s obligations according to the relevant terms of the products. 1
EFG Financial Products AG
Brandschenkestrasse 90, P.O. Box 1686, CH-8027 Zurich
Phone +41 58 800 1000, www.efgfp.com
Soft Commodities
Corn rose, capping the biggest three-day gain since February, on
signs that U.S. ethanol refiners are using more of the grain to make
fuel as an improving economy boosts energy prices. Corn futures for
July delivery jumped 6.25 cents, or 1.7 percent, to $3.7525 a bushel
on the Chicago Board of Trade, capping a three-day gain of 6.1
percent, the most since February. Wheat futures for July delivery
rose 7.5 cents, or 1.5 percent, to $5.03 a bushel on the Chicago
FX
The euro fell from a one-week high against the dollar on concern a
110 billion-euro ($146 billion) bailout package for Greece will fail to
contain the region’s sovereign-debt crisis. Europe’s currency
weakened versus 13 of its 16 major counterparts on prospects the
European Union will struggle to win agreement from its members on
the aid. South Korea’s won fell for the first time in three days after
China raised bank reserve ratios for a third time this year, fuelling
concern growth will slow in the world’s fastest-growing major
FIXED INCOME
Banks are increasing purchases of U.S. government securities to
pump up profits while lending to businesses languishes near the
lowest levels since credit markets started to freeze almost three
years ago. Holdings of Treasuries rose each of the past five weeks,
an increase of $63.2 billion to $1.5 trillion, according to Federal
Reserve data. At the same time, commercial and industrial loans
climbed less than 1 percent to $1.27 trillion and are down 23 percent
from the record high level in October 2008. Banks, facing increased
regulation after posting $1.78 trillion of writedowns and losses since
the start of 2007, are taking advantage of the record gap between
their borrowing costs and yields on U.S. debt instead of lending,
ECONOMIC INDICATORS OF THE WEEK
US-Date Event
03.05.2010 Personal Income
03.05.2010 ISM Manufacturing
EU-Date Event
03.05.2010 PMI Manufacturing
04.05.2010 Euro-Zone PPI (YOY)
EFG Financial Products
Daily Market Update, 03 May 2010
Board of Trade. Soybean futures for July delivery rose 3 cents, or
0.3 percent, to $9.99 a bushel on the Chicago Board of Trade. The
commodity rose 6.2 percent in April after reaching a three-month
high of $10.20 on April 26.
.
economy. The euro dropped to $1.3245 as of 7:06 a.m. in London
from $1.3294 in New York last week, after earlier rising as high as
$1.3361, the strongest level since April 27. The 16-nation currency
declined to 124.54 yen from 124.78 yen. The dollar was at 94.03
yen from 93.85 yen. The won fell 0.9 percent to 1,118.40 per dollar.
The Australian dollar fetched 92.52 U.S. cents from 92.43 cents on
April 30, when it touched 93.25 cents, the highest since April 21.
according to data compiled by Bloomberg. Bank demand for
Treasuries is helping cap yields as President Barack Obama sells
record amounts of bonds to finance a budget deficits that exceeds
$1 trillion. Yields on benchmark 10-year Treasury notes fell 15 basis
points last week to 3.66 percent, the biggest decline since February,
according to BGCantor Market Data. The yield is down from the high
this year of 4.01 percent on April 5. Treasury futures contracts
dropped for the first time in three days today. The implied yield on
10-year contracts for June delivery climbed to 3.85 percent as of
9:24 a.m. in Singapore, from 3.83 percent at the end of last week.
Survey Actual Prior
0.3% 0.0%
60.0 59.6
Survey Actual Prior
57.5 57.5
0.9% -0.5%
2
GLOBAL FIGURES

Equities Commodities
Index Current Change % Change % YTD Index Current Change % Change % YTD
MSCI World 1'199 -0.80% 2.58% S&P GSCI ER 448.96 1.01% 1.82%
SPX 1'187 -1.66% 6.42% S&P GSCI Agriculture ER 50.77 0.90% -15.16%
INDU 11'009 -1.42% 5.57% S&P GSCI Livestock ER 217.26 1.29% 9.09%
NDX 2'001 -2.07% 7.54% S&P GSCI Precious Metal ER 173.64 0.94% 7.75%
SX5E 2'817 -0.40% -5.00% S&P GSCI Industrial Metal ER 255.35 1.68% 1.55%
DAX 6'136 -0.15% 2.99% S&P GSCI Energy ER 287.17 0.94% 4.64%
SMI 6'617 -0.74% 1.08% DJAIG ER 134.70 0.90% -3.22%
UKX 5'553 -1.15% 2.59% WTI 86.11 -0.05% 5.54%
CAC 3'817 -0.62% -3.03% Brent 87.44 0.62% 8.50%
NKY 11'057 1.21% 4.84% Natural Gas 3.94 0.61% -29.76%
HSI 20'795 -1.48% -4.93% Gold 1'179.10 -0.14% 7.31%
IBOV 67'530 -0.66% -1.54% Silver 18.62 -0.13% 10.24%
KOSPI 1'721 -1.17% 2.28% Aluminium 2'225.00 2.61% 1.27%
SENSEX BSE 30 17'450 -0.62% -0.08% Copper 7'365.00 -0.41% 0.26%
RTSI 1'573 -1.00% 8.88% Zinc 2'259.25 0.77% -12.21%
Tin 18'190.50 0.49% 7.20%
Volatility Nickel 26'253.00 3.55% 41.42%
Current Net Change Net Change 1m Lead 2'208.25 -0.07% -9.60%
WTD Corn 374.00 -0.33% -13.63%
VIX 22.05 0.00 4.58
Wheat 502.25 -0.15% -11.26%
VSTOXX 28.89 0.00 8.89
Soybean 996.00 -0.30% -5.97%
VDAX 23.29 0.00 5.44
Sugar 15.15 -0.92% -34.19%
VSMI 19.79 0.00 5.92
Cocoa 3'239.00 0.87% -2.06%
Coffee 135.30 0.52% -2.70%
Currencies
Cotton 83.80 -0.39% 8.86%
Current Change % Change % YTD
Live Cattle 94.23 0.37% 7.41%
USD/CHF 1.0821 -0.42% 4.33%
Feed Cattle 116.08 0.22% 16.37%
USD/JPY 94.0400 -0.20% 1.08%
Lean Hogs 86.33 2.98% 11.71%
CHF/JPY 86.9100 0.22% -3.39%
EUR/USD 1.3242 0.39% -8.15%
Credit
EUR/CHF 1.4329 -0.01% -3.54%
iTraxx Europe IG 5yr 68.47 -2.70% 12.76%
GBP/CHF 1.6500 -0.27% -1.45%
iTraxx Europe Crossover 5yr 393.98 -1.08% -8.69%
USD/BRL 1.7394 -0.67% -0.29%

Libor Rates Swap Rates

USD EUR CHF GBP JPY USD EUR CHF GBP JPY
1M 0.28 0.38 0.08 0.55 0.16 1Y 0.65 1.13 0.47 1.15 0.45
3M 0.35 0.61 0.25 0.68 0.24 2Y 1.20 1.42 0.81 1.72 0.47
6M 0.53 0.91 0.33 0.93 0.45 5Y 2.60 2.35 1.55 2.98 0.68
12M 1.02 1.22 0.63 1.37 0.67 10Y 3.66 3.21 2.27 3.84 1.33

This information is issued to qualified investors only and is not research. The information contained in this paper is based on or derived from information generally available to the public from
sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice.
This paper has been prepared solely for information purposes and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy. Products mentioned
in this document qualify as structured products and are derivative financial instruments. The products do not qualify as units of a collective investment scheme pursuant to art. 7 et seqq. of
the Swiss Federal Act on Collective Investment Schemes (CISA) and are therefore neither registered nor supervised by the Swiss Financial Market Supervisory Authority FINMA.Investors
should be aware that they are exposed to the credit risk of the issuer and the guarantor, respectively. Charts and market data provided by Reuters.

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Daily Market Update, 03 May 2010