From: Tazia Smith Sent: 7/1/2014 9:49:09 AM To: CC: Paul Morris Nav Gupta Subject: Fw: DB Early Morning Reid 7/1/14 + some Banco Espirito (BES PL) trading color [C) Attachments: EMR 7.1.14.pdf; pic32622.gif; pic23755.gif; pic10168.gif; pic01746.gif Classification: Confidential Hey Rich Just an FYI , pls see color on BES PL as an FYI (have seen some HF interest in the name) also some follow through in incremental demand for euro Banca Monte Dei Paschi (BMPS IM). Let me know if you want more flow color or if peripheral banks are not of interest. Thx, Tazia Forwarded by on 07/01/2014 09:45 AM From: To: Cc: thomas.ororke .corn 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/20/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, OB'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 (see attached file: EMR 7.1.14.pdf) Banco Espirito (BEs PL) Interday Trading 7/1/14 (Embedded image moved to file: pic32622.gif) Banco Espirito (BES PL) 1-Year Price History (Embedded image moved to file: pic23755.gif) C