DAILY MARKET UPDATE

19 April 2010

EQUITIES
Switzerland USA
Kuehne & Nagel International AG (KNIN VX):
• The freight transport company, said first-quarter profit rose Future Current Chg Pct 1d Trend
2.3% as economic growth led companies to ship more goods. DJIA . Jun ’10 10935 -0.45%

Net income gained to CHF 131 Mn from CHF 128 Mn the S&P 500 Jun ’10 1185.6 -0.39%

year earlier. Nasdaq 100 Jun ‘10 2002.75 -0.35%

Novartis AG (NOVN VX):

• The company agreed to buy closely held U.S. drugmaker
Oriel Therapeutics, gaining generic medicines for asthma and
smoker’s cough and a potential share of a $32 Bn market
Kuoni Reisen Holding AG (KUNN SW)
• The largest Swiss travel offered full refunds to holidaymakers
with departures scheduled for April 17 and 18.
Europe
Lafarge SA (LG FP):
• The building materials company is among several
international groups in talks to buy India’s Bharathi Cement.
Royal Philips Electronics NV (PHIA NA):
• The lighting company said first-quarter net income gained to
200 MN Eur from a loss of 59 Mn Eur year earlier.
U.S. market news
Goldman Sachs Group Inc. faces a regulatory probe in Britain
and scrutiny from the German government after the U.S.
Securities and Exchange Commission sued it last week for fraud
tied to collateralized debt obligations. DynCorp International Inc.
that has helped train Iraqi police was sued by a stockholder
claiming his shares are undervalued in a $1.5 billion takeover bid
by Cerberus Capital Management LP. Shenandoah
Telecommunications Co. will buy the cable operations of
JetBroadband Holdings LLC for $148 Mn. The Federal
Communications Commission suspended the deadline for
comments Comcast Corp.’s proposed purchase of General
Electric Co.’s NBC Universal unit while the companies prepare
reports on the deal’s economic effects.

Telecom Italia SpA (TIT IM):

• Italy’s Agcom communications regulator approved a plan that
allows Telecom Italia SpA to raise the so-called unbundling
fee it charges competitors who seek access to its network for
high-speed Internet services.

COMMODITIES
Oil
Crude oil fell for a third day on speculation the commodity’s climb to
an 18-month high has outpaced a recovery in global demand. Oil
extended losses after tumbling 2.7% on April 16, the most in 10
weeks. The dollar strengthened against the euro, reducing the
appeal of commodities. Crude oil for May delivery fell as much as
$1.58, or 1.9%, to $81.66 a barrel. It was at $81.94 at 12:09 p.m.
Singapore time. Prices have declined in eight of the nine trading
days after touching $87.09 on April 6, the highest since October
2008. The May contract, which expires tomorrow, lost $2.27 on April
16 to $83.24 a barrel, the biggest drop since Feb. 5. Prices slumped
after the U.S. Securities and Exchange Commission accused
Goldman Sachs Group Inc. of fraud, triggering a selloff in commodity
and equity markets. The more-widely held June future was down
$1.10, or 1.3%, at $83.57 today.
Gold
Gold for immediate delivery fell as much as 0.3% to $1,134 an
ounce before trading little changed at $1,137.10 at. The metal
tumbled 1.9% on April 16. The Securities and Exchange
Commission alleged that Goldman created and sold securities linked
to subprime mortgage-backed securities. The firm failed to disclose
to investors that hedge fund Paulson & Co. was betting against the
instruments and influenced the selections in the portfolio, the SEC
said. Paulson wasn’t accused of wrongdoing. As of Dec. 31,
Paulson was the largest holder of the SPDR Gold Trust, the biggest
exchange-traded fund back by the metal, and Goldman was the 11th
biggest. Paulson is also the top investor in AngloGold Ashanti Ltd.,
Africa’s largest producer. Silver was little changed at $17.72 an
ounce, platinum fell 0.3% to $1,687.50 an ounce and palladium lost
0.5% at $527.25 an ounce.

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, soybeans and wheat dropped after U.S. regulators sued
Goldman Sachs Group Inc. for fraud and Britain and Germany
announced probes of the bank, curbing investment demand for
stocks and commodities. Corn fell as much as 1.3% today. Asian
stocks tumbled after U.K. Prime Minister Gordon Brown called
yesterday for the Financial Services Authority to start an inquiry into
Goldman, while Germany’s financial regulator, Bafin, asked the
Securities and Exchange Commission for details on the suit. Corn
for July delivery lost as much as 5 cents to $3.69 a bushel and was
at $3.70. The grain rose 4.7% last week on speculation cooling
FX
The yen rose for a third day against the euro on speculation
investors are buying Japan’s currency as a refuge against concerns
that probes into Goldman Sachs Group Inc. will widen and Greece’s
aid package may falter. The yen strengthened versus all 16 of its
main counterparts after U.K. Prime Minister Gordon Brown
yesterday called for an investigation into Goldman Sachs, while
German regulators asked the U.S. Securities and Exchange
Commission for details on its suit filed against the bank last week.
The euro fell to a one-week low against the dollar after European
Union finance ministers told Greece to prepare itself for the
FIXED INCOME
Treasury 10-year yields were near the lowest level in more than
three weeks as Asian stocks declined after the U.S. Securities and
Exchange Commission sued Goldman Sachs Group Inc. for fraud.
Notes rose after U.K. and German officials said authorities in the
countries may probe Goldman’s activities in light of the SEC suit,
and before an International Monetary Fund mission visits Athens to
discuss aid for Greece. The difference between two- and 10-year
yields was near the least in three weeks on speculation inflation will
remain subdued. The yield on the benchmark 10-year note fell one
basis point to 3.76%. The 3.625% security due February 2020 rose
1/32, or 31 cents per $1,000 face amount, to 98 29/32. Japan’s
bonds rose for a fifth day, the longest winning streak this year, as a
ECONOMIC INDICATORS OF THE WEEK
US-Date Event
20.04.2010 ABC Consumer Confidence
22.04.2010 Producer Price Index (YoY)
22.04.2010 Initial Jobless Claims
EU-Date Event
22.04.2010 Euro-Zone Govt Debt / GDP Ratio
22.04.2010 Euro-Zone Consumer Confidence
23.04.2010 Industrial New Orders SA (MoM)
EFG Financial Products
Daily Market Update, 19 April 2010
Pacific Ocean waters will boost the odds of a drought in the U.S.
Midwest, reducing yields in the country’s biggest crop. Soybeans for
July delivery fell as much as 1% to $9.8525 a bushel and were last
at $9.8875. The oilseed rose 4.5% last week, the biggest weekly
increase since Nov. 20, after touching $9.99 on April 16, the highest
since Jan. 12. The gauge fell 1.6% on April 16 after the SEC sued
Goldman for misstating and omitting facts about collateralized debt
obligations. Wheat for July delivery fell as much as 1.2% to $4.965 a
bushel and last traded at $4.97. The grain touched $5.035 on April
16, the highest price since March 5. The price rose 4.9% last week,
the third straight increase.
International Monetary Fund’s conditions on a bailout package. The
yen climbed to 123.79 per euro from 124.44 York last week. Japan’s
currency advanced to 91.99 per dollar from 92.17, after rising to
91.82, the strongest since March 25. The euro fell to $1.3457 from
$1.3503 after dropping to $1.3446, the weakest since April 9. The
U.K. pound fell 0.8% against the dollar. The pound traded at
$1.5239, versus $1.5363 the previous trading day. It weakened to
88.34 pence per euro, from 87.86. The Swiss franc fell 0.3% against
the dollar. The franc traded at 1.0642 per dollar, versus 1.0614 the
previous trading day. It was little changed at 1.4331 per euro.
decline in stocks boosted demand for the relative safety of
government debt. Benchmark 10-year yields fell to the lowest in five
weeks. The yield on the 1.4% bond due March 2020 fell two basis
points to 1.32%. The price rose 0.176 yen to 100.701 yen. The yield
earlier dropped to 1.305%, the lowest since March 11. Ten-year
bond futures for June delivery gained 0.34 to 139.27. The Nikkei 225
Stock Average slid for a second day, losing 1.7%. Japan’s bonds
often move in the opposite direction to stocks. Ten-year yields had a
correlation of 0.6 with the Nikkei this month. A value of 1 means the
two moved in lockstep.
.
Survey Actual Prior
-47
6.0% 4.4%
450K 484K
Survey Actual Prior
78.5% 69.3%
-17 -17
1.0% -2.0%
2
GLOBAL FIGURES

Equities Commodities
Index Current Change % Change % Index Current Change % Change % YTD
YTD
S&P GSCI ER 444.25 -1.65% 0.75%
MSCI World 1,222 -1.57% 4.60%
S&P GSCI Agriculture ER 50.76 -0.23% -15.18%
SPX 1,192 -1.61% 6.91%
S&P GSCI Livestock ER 217.48 0.24% 9.20%
INDU 11,019 -1.13% 5.66%
S&P GSCI Precious Metal ER 166.95 -2.25% 3.59%
NDX 2,013 -1.27% 8.20%
S&P GSCI Industrial Metal ER 268.86 -2.20% 6.92%
SX5E 2,950 -2.09% -0.52%
S&P GSCI Energy ER 281.72 -1.92% 2.65%
DAX 6,181 -1.76% 3.75%
DJAIG ER 135.13 -1.19% -2.91%
SMI 6,894 -1.06% 5.31%
WTI 81.88 -1.63% 0.95%
UKX 5,744 -1.39% 6.12%
Brent 85.99 -1.83% 6.70%
CAC 3,987 -1.94% 1.28%
Natural Gas 4.04 0.07% -27.11%
NKY 10,919 -1.65% 3.53%
Gold 1,136.40 -0.04% 3.42%
HSI 21,515 -1.60% -1.63%
Silver 17.65 -0.17% 4.62%
IBOV 69,421 -1.56% 1.21%
Aluminium 2,402.05 -1.55% 9.33%
KOSPI 1,701 -1.91% 1.11%
Copper 7,905.50 0.39% 7.62%
SENSEX BSE 30 17,323 -1.52% -0.81%
Zinc 2,390.75 -3.51% -6.85%
RTSI 1,643 -2.01% 13.70%
Tin 19,128.00 1.22% 12.76%
Nickel 26,645.50 -1.92% 43.70%
Volatility
Lead 2,237.25 -3.41% -8.20%
Current Net Change Net Change
WTD 1m Corn 369.50 -1.20% -14.67%
VIX 18.36 0.00 1.39 Wheat 496.50 -1.19% -12.28%
VSTOXX 22.44 0.00 1.94 Soybean 986.00 -0.90% -6.92%
VDAX 19.61 0.00 1.02 Sugar 16.18 -5.27% -29.71%
VSMI 14.45 0.00 0.00 Cocoa 2,988.00 3.39% -9.65%
Coffee 130.80 -1.95% -5.93%
Currencies Cotton 80.67 -1.13% 4.79%
Current Change % Change % Live Cattle 94.65 0.37% 7.89%
YTD
USD/CHF 1.0644 -0.28% 2.74% Feed Cattle 115.28 0.13% 15.56%

USD/JPY 92.0400 0.14% -1.06% Lean Hogs 86.15 0.09% 11.48%

CHF/JPY 86.4700 0.43% -3.92%

EUR/USD 1.3461 0.31% -6.39% Credit

EUR/CHF 1.4415 0.01% -3.53% iTraxx Europe IG 5yr 61.20 4.07% 0.79%

GBP/CHF 1.6230 0.46% -3.14% iTraxx Europe Crossover 5yr 383.23 3.52% -11.18%
USD/BRL 1.7582 -0.53% 0.78%

Libor Rates Swap Rates

USD EUR CHF GBP JPY USD EUR CHF GBP JPY
1M 0.26 0.37 0.08 0.55 0.16 1Y 0.52 1.10 0.48 1.03 0.44
3M 0.31 0.58 0.24 0.65 0.24 2Y 1.10 1.41 0.81 1.54 0.46
6M 0.46 0.89 0.34 0.89 0.45 5Y 2.61 2.36 1.58 2.86 0.70
12M 0.94 1.19 0.64 1.33 0.68 10Y 3.73 3.24 2.30 3.83 1.37

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, 19 April 2010