EFTA Document EFTA01479406

Subject: Re: Japanese Equity Basket... [C] From: Vahe Stepanian <MMI MIM> Date: Tue, 14 Jan 2014 16:47:51 -0500 To: Paul Morris Cc: Tazia Smith Classification: Confidential Paul - not sure if Tazia responded to you directly but JE decided against buying the basket below. Alternatively, he bought the DXJ (Wisdomtree Japan Currency Hedged ETF). Thank you, Vahe (Embedded image moved to file: pic25758.gif) Vahe Stepanian Associate I Wealth Investment Coverage Deutsche Bank Securities Inc. Deutsche Asset & Wealth Management 345 Park Avenue - 26th Floor New York, NY 10154-0004 Email From: dbcom Paul Morris/db/- To: Tazia Smith/db/- dbcom@DBAMERICAS, Cc: Vahe Stepanian/db/- dbcom@DBAmericas EFTA01479406 Date: PM Subject: [C] 01/14/2014 03:38 Re: Japanese Equity Basket... Classification: Confidential hi did we ever buy the jap equities? Paul Morris Managing Director Deutsche Bank Private Bank From: dbcom Tazia Smith/db/- To: [email protected], Cc: , Paul Morris, Vahe Stepanian/db/- dbcom@DBAmericas Date: PM 12/18/2013 02:31 Subject: Japanese Equity Basket... EFTA01479407 [C] Classification: Confidential Jeffrey - Now that the FOMC decision is behind us (with the $10bn taper we just talked about), here is the basket of single-name Japanese equities that we put together to build on your bullish view (presently in DXJ). To incorporate your bearish yen view, we could quanto this basket like we talked about...in note form, we priced 13mos with HSBC, comes to a 95% participation eg. if the basket was up 18%, note would be up 17.1%; if basket is down 10%, note is down 9.5%. max loss 95% of principal (indicative levels only, subject to market movement, as of 12/18/13). We can look to add to your yen short position opportunistically as an alpha overlay (USDJPY now at 103.40). Let us know your thoughts, Tazia (Embedded image moved to file: pic28606.gif) Indicative levels, subject to market movement. Source: Bloomberg and DB Global Markets Research 12/16/13. Supplemental Information: DB Research expects Japanese equities could double by 2015 http://pull.db-gmresearch.com/cgi-bin/pull/DocPu11/10496-D6FF/89936366/- The House 18oct2013.pdf Abenomics will lead to higher operational leverage and an improved domestic economy BoJ will ease further as needed; DB expects USD/JPY FX to reach 120 by 2015 Strong macroeconomic data and increase in overseas asset purchases by the Japanese GPIF panel report (a third arrow initiative) strongly positive for Japanese risk assets EFTA01479408 http://www.cas.go.jp/jp/seisaku/koutekisikin_unyourisk/pdf/- e final report.pdf Yen weakening will likely continue to be a theme, benefiting exporters. Toyota: https://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c0877259ad.pdf 7203 JP Buy Current price 6170 Target price (11m) 8000 Upside 29% Panasonic https://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c08795101a.pdf (6752 JP Buy Current price 1158 Target price (12m) 1300 Upside 12% Omron 6645 JP Not rated at DB Current price 4105 Target price (12m) 4426 (Bloomberg avg. Not covered by DB) Upside 8% Kawasaki Kisen: http://gm.db.com/ger/document/ShowPdf.eqsr?productlDMore=0900b8c087790d17 9107 JP Buy Current price 236 Target price (12m) 280 Upside 18% Reflation is the other major theme, which should be positive for retailers and banks, where DB Research is bullish Rakuten and Resona respectively. Rakuten: https://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c087a30eda.pdf 4755 JP Buy Current price 1531 Target price (12m) 1710 Upside 12% Resona: https://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c0879ce3f0.pdf 8308 JP EFTA01479409 Buy Current price 512 Target price (12m) 650 Upside 27% (Embedded image moved to file: pic11466.gif) Tazia Smith Director I Key Client Partners - US Deutsche Bank Securities Inc Deutsche Asset & Wealth Management Email (Embedded image moved to file: pic28052.gif) EFTA01479410