EFTA Document EFTA01447915

Date: 07/01/2014 08:22 AM Subject: DB Early Morning Reid 7/1/14 + some Banco Espirito (BES PL) trading color [C] Classification: confidential Good Morning - Please see Jim Reid's 1H/20k/month-end summary below citing multi-century low sovereign yields, concerns vs. elation over persistent asset price performance, and a highlight of the underperformance of European financials - Portugal's Banco Espirito Santo (BES PL) tumbled 17% yesterday. see today's inter-day bounce in chart below (be aware that naked short selling was temporarily banned today). On that note, DB's BES PL trader points out that the name was crowded to start the year (long onlies as well as US HFs), and now sees selling pressure from pan-european continent long-only sellers. Note the bounce (but also increased supply) post the company's 1.04bn euro capital raise on 5/22 (rights of, struck at 0.65). Recall Portugal's Espirito Santo Financial Group (ESFG) owns 27.4% (Reuters) of Banco Espirito post raise. Please call the desk to discuss further. Please see the Early Morning Reid below/attached. Speak with you soon, Tazia [attachment "EMR 7.1.14.pdf" deleted by Tazia Smith/. Banco Espirito (BES PL) Interday Trading 7/1/14 (Embedded image moved to file: pic22599.gif) Banco Espirito (BES PL) 1-Year Price History (Embedded image moved to file: pic26649.gif) Deutsche Bank - Fixed Income Research Early Morning Reid - Macro Strategy 01 July 2014 (6 pages/ 178 kb) Download the complete report: http://pull.db-gmresearch.com/p/17805-c28E/90612075/DB_EMR_2014-07- 01_0900b8c088724b5b.pdf Key Market Data (Index 0 close // change) (ITX crossover 0 242 // +3) (ITX Europe 125 4 62 // +1) (CDX 125 0 59 // +1) (CDX HY - pts @ 108.66 // -0.154) (S&P 500 4 1960 // -0.04%) (Brent 0ilA @ 112.55 // -0.66%) (GoldA 4 1327 // +0.83%) (10 yr TreasuryA 4 2.52 // -1 bp) A - Change from previous day's 5:30 GMT to 05:30 GMT Mcr Sraeg (. ei, . urs,A.Ip Illbehoes ad aytht eserays MRwa abi o adae.I ada elte prt fr y Ot o Studa ad pet irualyth etie riaynihtawkewih y uides ryngtopu ahosebak ogthr ha hs ee one b to uides or8 onhs Iha 1 pope hee ntl amFrda ngh wth3 f he wrkngno-sopunilth frs gess rrve a 20p. evr av Iben o trssd ndtied S al aySuda ad CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 102701 CONFIDENTIAL SDNY_GM_00248885 EFTA01447915