From: Tazia Smith cO To: [email protected] Cc: Paul Morris , Subject: your short yen position presently +$24k (spot ref 104.30) [Cl Date: Thu, 19 Dec 2013 15:39:08 +0000 Inline-Images: unnamed; unnamed(1) Vahe Stepanian Classification: Confidential Good Morning Jeffrey - Posting you that your 101 strike USDJPY zero-cost triple one touch position is presently --$24k bid. Post Fed and then yen sell-off, DB FX Research reiterates expectations of USDJPY at 115 at end-2014. The commentary below is actually on expectations for asset flows from forthcoming investment tax exemptions in Japan beginning in January. I thought you might find the quick comment of interest. We'd reiterate a view that matches yours: bearish yen, bullish Japanese equities (buy on dips). You saw a basket of single-names we highlighted in our email yesterday. Best Regards, Tazia — Forwarded by Tazia Smith/db/dbcom on 12/19/2013 10:20 AM ---- From: 'Taisuke Tanaka. Deutsche Securities Inc." To: Tazia Smith/db/dbcom@DBAMERICAS. Date: 12/18(201312:36 AM Subject: DEutsche JApan View on FX - DB. yen-bear. talks on NISA Deutsche Securities Inc. - Fixed Income Research DEutsche JApan View on FX - DB, yen-bear, talks on NISA 18 December 2013 (1 page/ 117 kb) Download the complete report Reason we have not stressed NISA's yen depreciation impact The Japanese version of the Individual Savings Account system, known as NISA, will come into force in January. Tax exemptions will be granted to new investments of up to )ilm per year for a maximum of five years, thus allowing for as much as 445m per person. Market participants have frequently expressed an expectation that this money will flow to the stock markets and foreign securities, buoying share prices and sending the yen downward. However, we have not put much emphasis on this point despite our consistent bearishness on the yen. Let us consider a simple calculation. Banks and securities brokers have competed fiercely to a