22 November 2024
Weekly Market View
The message from Mar-a-Lago
US President-elect Trump has named most of his top cabinet appointees as he prepares to hit the ground running on Day One. Trump’s proposed cabinet, packed with trade hawks, suggest import tariffs are a top priority.
Markets now await the announcement of a Treasury Secretary. A business-friendly name would raise the likelihood of tax cuts and financial deregulation early in his tenure, offsetting the negative impact from tariffs.
The choice of an oil industry veteran as Energy Secretary points to a focus on boosting energy output, which should help curb inflation.
We expect pro-growth policies and increased protectionism to sustain the US economic expansion and equity outperformance in the coming year.
We also see opportunities in European government bonds on rising chances of further ECB rates cuts. Meanwhile, the recent pullback in gold and Indian equities offers opportunities to average in.
What is the outlook for US equity sectors?
What is the outlook for gold amid heightened geopolitical tensions?
What is the outlook for Indian equities and bonds after the recent pullback?
Charts of the week: Pro-business but hawkish on trade
Trump’s cabinet picks imply focus on trade and tariff restrictions, while promoting deregulation and energy independence
Trump’s key cabinet appointments and their policy priorities
Editorial
The message from Mar-a-Lago
US President-elect Trump has named most of his top cabinet appointees as he prepares to hit the ground running on Day One. Trump’s proposed cabinet, packed with trade hawks, suggest import tariffs are a top priority. Markets now await the announcement of a Treasury Secretary. A business-friendly name would raise the likelihood of tax cuts and financial deregulation early in his tenure, offsetting the negative impact from tariffs. The choice of an oil industry veteran as Energy Secretary points to a focus on boosting energy output, which should help curb inflation.
We expect pro-growth policies and increased protectionism to sustain the US economic expansion and equity outperformance in the coming year. We also see opportunities in European government bonds on rising chances of further ECB rates cuts. Meanwhile, the recent pullback in gold and Indian equities offers opportunities to average in, in our view.
The message from Trump’s cabinet picks. Trump, being a second-time president, will have four years (or just two years if the Republicans lose control of the House of Representatives in the next Congressional election in 2026) to deliver his plans to shake up America, and the world. Trump’s choice of China hardliners suggests he is serious about using tariffs early on. The aim is to curb US imports and the budget deficit, boost exports (sell more aeroplanes and farm products to China?), coax overseas manufacturers to relocate plans to the US and use tariff proceeds to partly pay for the proposed tax cuts. Some of his cabinet appointments are controversial and could face pushback from the Senate, although the secure Republican majority there and Trump’s own emphatic victory with a popular vote should help most, if not all, of his nominees get approved.
Commerce and Energy Secretary picks: Following the appointment of known China hawks such as Marco Rubio and Pete Hegseth last week, Trump nominated US financial services firm Cantor Fitzgerald CEO Howard Lutnick as Commerce Secretary with the additional responsibility for the Office of the US Trade Representative. Lutnick’s close ties with
the business community should help further Trump’s agenda to boost US competitiveness through tariffs and attract overseas businesses to invest in the US. His department also oversees federal allocations for semiconductor manufacturing.
However, to counter the negative effects of tariffs, Trump needs a business-friendly Treasury Secretary who will focus on enacting tax cuts and financial sector deregulation relatively early in his tenure. The choice of Chris Wright, a pioneer of the US shale revolution, as his Energy Secretary raises the chance of significant boost to US energy output, which should help offset some of the inflationary impact of Trump’s policies.
Remain overweight US financial, technology and communication sectors. We expect the financial sector to benefit from Trump’s proposed deregulation policies and a pickup in investment banking activity as the economy remains resilient. Technology and communication services sectors are likely to outperform as sustained AI-related investments and efficiencies drive earnings growth (see page 5).
Opportunities in European government bonds, gold. We remain tactically bullish on European government bonds as the ECB is likely to keep cutting rates towards neutral (around 2%) amid slowing inflation and rising trade and political uncertainty. We also see upside to gold prices after the recent pullback amid heightened geopolitical risks and sustained Emerging Market central bank demand. An expected near-term consolidation in the USD should also support gold’s rebound, initially towards USD 2,800/oz (see pages 4-5).
Opportunity to average into Indian equities. Indian equity markets have pulled back lately as valuations adjust to modestly slower economic and corporate earnings growth and a relatively tight monetary policy. Over a 6-12-month period, though, we see this correction as an opportunity to average into Indian equites, given India’s still-robust economic growth outlook and corporate earnings. We expect India to be relatively less vulnerable to the impact of potential global trade disruption (see page 6).
The weekly macro balance sheet
Our weekly net assessment: On balance, we see the past week’s data and policy as Negative for risk assets in the near-term
(+) factors: Stronger than expected US factory data
(-) factors: Weak US housing data; raising geopolitical risks
US core retail sales fell unexpectedly in October, while housing starts fell more than expected
US core* retail sales; US housing starts
Euro area consumer confidence fell below expectations in November amid rising domestic and geopolitical uncertainty
Euro area consumer confidence index
China held key lending rates unchanged as it likely awaits US policies under a new administration
China central bank’s 1- and 5-year loan rates
Top client questions
How has China’s Q3 earnings season fared?
China’s Q3 earnings have been largely muted. Over 94% of companies in the MSCI China index have released earnings as of 21-Nov and Bloomberg data shows overall positive sales and earnings growth at 3.7% and 3.0%, respectively. Sectors such as technology and financials led sales growth. However, sales surprised to a downside for the second consecutive quarter at -1.2%, dragged by the real estate (-25%) and healthcare (-9%) sectors.
Continued deflationary pressures and weak domestic consumption were likely the key drivers behind the relatively lacklustre earnings reports. This, together with trade tariff uncertainty, are behind our retaining a Neutral stance on China equities within Asia ex-Japan. That said, any potential fiscal support announced at the upcoming CEWC meeting would create a more positive backdrop for earnings growth. Corporate reforms initiatives, such as the Nine-point guidelines to encourage dividend payments, should also bolster investors’ sentiment into 2025.
12m forward EPS growth expectations for MSCI China remain elevated at 9.7%. Our preferred sectors include Technology and Communication services, which should benefit from a spill-over effect from potential consumption stimulus. Our opportunistic idea on high-dividend SOEs (excluding financials) is also expected to provide income stability against subdued risk sentiment in China.
— Michelle Kam, Investment Strategist
Information technology and financials sectors led sales growth of China equities in Q3 ‘24
Sales growth across sectors within the MSCI China index in Q3
Markets expect the ECB to cut rate to below 2% by Q2 2025. What are the implications for Euro government bonds?
We maintain our Opportunistic buy idea on Euro area government bonds (FX-hedged), anticipating further interest rate cuts by the ECB. Euro area economic data has been weak, while inflation continues to trend toward 2%, which supports the ECB’s course of action. The market expects another 25bps cut in the ECB rate in December, along with at least four additional cuts in 2025. This contrasts with the market’s expectations of a risk of “hold” by the Fed at its December policy meeting, making Euro government bonds more attractive. Recent political issues in Germany have also not yet led to any significant volatility in German government bonds (Bunds).
We would view any rebound in Euro area bond yields as an opportunity to add to Euro area government bonds (FX-hedged), including if such volatility is led by Bunds, as we expect the ECB to continue cutting rates. Risks to our outlook include a resurgence of inflation in the Euro area and stronger-than-expected economic performance in the region.
— Ray Heung, Senior Investment Strategist
The ECB is expected to cut its policy rate at least in the next five policy meetings
Money market estimates of ECB policy rates
Top client questions (cont’d)
What is your view on US equity sectors?
The financial sector is the top performing equity sector in Q4 so far, driven by expected deregulation under a Republican government and good Q3 earnings (8.7% positive earnings surprise, per LSEG I/B/E/S). On the other hand, healthcare has been the worst performer with high profile misses in obesity drug sales. Furthermore, the expected appointment of Kenney Jr as the Health Secretary is unsettling investors given his past comments suggest he is opposed to vaccines and obesity drugs, amongst other issues.
Looking ahead, we continue to be overweight financials as it would benefit from deregulation and a pickup in investment banking activity as the US economy settles into a soft landing. We also expect the growth sectors of technology and communication services to outperform the broader market over the next 6-12 months. AI investments continue to support chip makers and software providers are using AI to enhance efficiency and upgrade their products. Technology is expected to deliver the highest earnings growth in 2025 (20.6%). The demand for online entertainment would also support strong earnings growth for communication services, which is also more reasonably valued. Our preference for healthcare to provide defensive exposure as part of a barbell strategy is currently challenged by uncertainty in government policy. We would refrain from adding exposure at this point until there is further clarity on the earnings outlook under the incoming government.
— Fook Hien Yap, Senior Investment Strategist
We reiterate our overweight views on the financial, technology and communication services sectors
Performance of US equity sectors in Q4 so far
Does the recent intensification of the Russia-Ukraine conflict support the case for gold? What are your views on commodity currencies?
We believe long-term catalysts are positive for US small caps, driven by Trump’s pro-growth policies. Potential tax cuts on both individuals and corporates are likely to support consumption and cyclical growth. His pledge to impose tariffs on imports would provide a more competitive environment for local businesses. Companies that are able to transfer rising raw material costs to consumers are also set to benefit from higher earnings growth. In addition, our expectations of falling Fed policy rates provide a further tailwind to small-cap stocks given their tendency to hold floating-rate debt.
Positioning is crowded, but valuations remain undemanding versus the S&P 500 index (12m fwd P/E at 17.4x for S&P Small Cap 600 index vs 22.3x for S&P 500 index), helped by rising EPS growth.
Convertible bonds can offer an alternative route to gaining exposure as the size of the issuers are mostly small-mid cap companies. We retain our opportunistic buy on convertible bonds based on our expectation they benefit from further equity market gains and Fed rate cuts over the next 6-12 months.
— Iris Yuen, Investment Strategist
AUD moves have lately aligned with the CNH
AUD/USD, CNH/USD and Gold prices; indexed
Top client questions (cont’d)
India equities and onshore bonds have come under pressure lately. What is the outlook for India assets?
Foreign investor outflows have persisted from Indian equities since late September, driven by investor rotation into Chinese equities, concerns over stretched valuations, normalizing economic growth and muted Q3 earnings performance. More recently, the INR touched a new all-time low against the USD, alongside a surge in domestic bond yields, driven by a sharp rise in US bond yields and expectations of delayed RBI policy easing amid a spike in domestic inflation.
The MSCI India index slipped into correction territory, falling ~11% from its September peak, breaching its key 200 Day Moving Average (DMA) technical support level. While this suggests the possibility of further downside for now, the market does appear oversold near-term.
We expect volatility to remain elevated over the next 1-3 months as investors adjust to the normalization of growth and corporate earnings delivery from the strong pace of last year and the RBI’s policy outlook. Over a 6-12-month period, though, we see this correction as an opportunity to average into Indian equites, given our positive view remains supported by the market’s still-robust economic growth and corporate earnings cycle. We expect India to be relatively less vulnerable to the impact of a potential global trade disruption, given exports are a relatively small share of US of imports (~3-4%). Further, we expect the quantum and pace of outflows by foreign investors to moderate as foreign investor positioning into domestic equities remains close to decade lows.
The recent surge in INR bond yields could also be an opportunity to build moderate exposure to medium and long-maturity bonds as we expect yields to fall on positive government bond demand-supply balance and central bank easing led by US Fed rate cuts and the RBI commencing rate cuts in Q1 2025.
While the INR has come under pressure lately, it remains among the least volatile currency compared to EM peers so far in 2024. We expect the USD/INR pair to remain resilient and trade around ~84 over a 12-month, supported by robust domestic growth, stable external account, improving foreign investors inflows in domestic bonds and the RBI’s strong FX reserves.
— Ravi Kumar Singh, India Chief Investment Strategist
India’s economic and earnings growth estimates are likely to remain robust in the coming year
India’s consensus GDP growth and earnings estimates
Market performance summary*
Our 12-month asset class views at a glance
Economic and market calendar
The S&P500 has next interim resistance at 6,079
Technical indicators for key markets as of 21 November close
Investor diversity in EUR has fallen below a key threshold
Our proprietary market diversity indicators as of 21 Nov close
Disclosure
This document is confidential and may also be privileged. If you are not the intended recipient, please destroy all copies and notify the sender immediately. This document is being distributed for general information only and is subject to the relevant disclaimers available at our Standard Chartered website under Regulatory disclosures. It is not and does not constitute research material, independent research, an offer, recommendation or solicitation to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. You should not rely on any contents of this document in making any investment decisions. Before making any investment, you should carefully read the relevant offering documents and seek independent legal, tax and regulatory advice. In particular, we recommend you to seek advice regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs, before you make a commitment to purchase the investment product. Opinions, projections and estimates are solely those of SC at the date of this document and subject to change without notice. Past performance is not indicative of future results and no representation or warranty is made regarding future performance. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment. You are not certain to make a profit and may lose money. Any forecast contained herein as to likely future movements in rates or prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in rates or prices or actual future events or occurrences (as the case may be). This document must not be forwarded or otherwise made available to any other person without the express written consent of the Standard Chartered Group (as defined below). Standard Chartered Bank is incorporated in England with limited liability by Royal Charter 1853 Reference Number ZC18. The Principal Office of the Company is situated in England at 1 Basinghall Avenue, London, EC2V 5DD. Standard Chartered Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Standard Chartered PLC, the ultimate parent company of Standard Chartered Bank, together with its subsidiaries and affiliates (including each branch or representative office), form the Standard Chartered Group. Standard Chartered Private Bank is the private banking division of Standard Chartered. Private banking activities may be carried out internationally by different legal entities and affiliates within the Standard Chartered Group (each an “SC Group Entity”) according to local regulatory requirements. Not all products and services are provided by all branches, subsidiaries and affiliates within the Standard Chartered Group. Some of the SC Group Entities only act as representatives of Standard Chartered Private Bank and may not be able to offer products and services or offer advice to clients.
Copyright © 2024, Accounting Research & Analytics, LLC d/b/a CFRA (and its affiliates, as applicable). Reproduction of content provided by CFRA in any form is prohibited except with the prior written permission of CFRA. CFRA content is not investment advice and a reference to or observation concerning a security or investment provided in the CFRA SERVICES is not a recommendation to buy, sell or hold such investment or security or make any other investment decisions. The CFRA content contains opinions of CFRA based upon publicly-available information that CFRA believes to be reliable and the opinions are subject to change without notice. This analysis has not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body. While CFRA exercised due care in compiling this analysis, CFRA, ITS THIRD-PARTY SUPPLIERS, AND ALL RELATED ENTITIES SPECIFICALLY DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, to the full extent permitted by law, regarding the accuracy, completeness, or usefulness of this information and assumes no liability with respect to the consequences of relying on this information for investment or other purposes. No content provided by CFRA (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of CFRA, and such content shall not be used for any unlawful or unauthorized purposes. CFRA and any third-party providers, as well as their directors, officers, shareholders, employees or agents do not guarantee the accuracy, completeness, timeliness or availability of such content. In no event shall CFRA, its affiliates, or their third-party suppliers be liable for any direct, indirect, special, or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with a subscriber’s, subscriber’s customer’s, or other’s use of CFRA’s content.
Market Abuse Regulation (MAR) Disclaimer
Banking activities may be carried out internationally by different branches, subsidiaries and affiliates within the Standard Chartered Group according to local regulatory requirements. Opinions may contain outright “buy”, “sell”, “hold” or other opinions. The time horizon of this opinion is dependent on prevailing market conditions and there is no planned frequency for updates to the opinion. This opinion is not independent of Standard Chartered Group’s trading strategies or positions. Standard Chartered Group and/or its affiliates or its respective officers, directors, employee benefit programmes or employees, including persons involved in the preparation or issuance of this document may at any time, to the extent permitted by applicable law and/or regulation, be long or short any securities or financial instruments referred to in this document or have material interest in any such securities or related investments. Therefore, it is possible, and you should assume, that Standard Chartered Group has a material interest in one or more of the financial instruments mentioned herein. Please refer to our Standard Chartered website under Regulatory disclosures for more detailed disclosures, including past opinions/ recommendations in the last 12 months and conflict of interests, as well as disclaimers. A covering strategist may have a financial interest in the debt or equity securities of this company/issuer. This document must not be forwarded or otherwise made available to any other person without the express written consent of Standard Chartered Group.
Sustainable Investments
Any ESG data used or referred to has been provided by Morningstar, Sustainalytics, MSCI or Bloomberg. Refer to 1) Morningstar website under Sustainable Investing, 2) Sustainalytics website under ESG Risk Ratings, 3) MCSI website under ESG Business Involvement Screening Research and 4) Bloomberg green, social & sustainability bonds guide for more information. The ESG data is as at the date of publication based on data provided, is for informational purpose only and is not warranted to be complete, timely, accurate or suitable for a particular purpose, and it may be subject to change. Sustainable Investments (SI): This refers to funds that have been classified as ‘Sustainable Investments’ by Morningstar. SI funds have explicitly stated in their prospectus and regulatory filings that they either incorporate ESG factors into the investment process or have a thematic focus on the environment, gender diversity, low carbon, renewable energy, water or community development. For equity, it refers to shares/stocks issued by companies with Sustainalytics ESG Risk Rating of Low/Negligible. For bonds, it refers to debt instruments issued by issuers with Sustainalytics ESG Risk Rating of Low/Negligible, and/or those being certified green, social, sustainable bonds by Bloomberg. For structured products, it refers to products that are issued by any issuer who has a Sustainable Finance framework that aligns with Standard Chartered’s Green and Sustainable Product Framework, with underlying assets that are part of the Sustainable Investment universe or separately approved by Standard Chartered’s Sustainable Finance Governance Committee. Sustainalytics ESG risk ratings shown are factual and are not an indicator that the product is classified or marketed as “green”, “sustainable” or similar under any particular classification system or framework.
Country/Market Specific Disclosures
Botswana: This document is being distributed in Botswana by, and is attributable to, Standard Chartered Bank Botswana Limited which is a financial institution licensed under the Section 6 of the Banking Act CAP 46.04 and is listed in the Botswana Stock Exchange. Brunei Darussalam: This document is being distributed in Brunei Darussalam by, and is attributable to, Standard Chartered Bank (Brunei Branch) | Registration Number RFC/61 and Standard Chartered Securities (B) Sdn Bhd | Registration Number RC20001003. Standard Chartered Bank is incorporated in England with limited liability by Royal Charter 1853 Reference Number ZC18. Standard Chartered Securities (B) Sdn Bhd is a limited liability company registered with the Registry of Companies with Registration Number RC20001003 and licensed by Brunei Darussalam Central Bank as a Capital Markets Service License Holder with License Number BDCB/R/CMU/S3-CL and it is authorised to conduct Islamic investment business through an Islamic window. China Mainland: This document is being distributed in China by, and is attributable to, Standard Chartered Bank (China) Limited which is mainly regulated by National Financial Regulatory Administration (NFRA), State Administration of Foreign Exchange (SAFE), and People’s Bank of China (PBOC). Hong Kong: In Hong Kong, this document, except for any portion advising on or facilitating any decision on futures contracts trading, is distributed by Standard Chartered Bank (Hong Kong) Limited (“SCBHK”), a subsidiary of Standard Chartered PLC. SCBHK has its registered address at 32/F, Standard Chartered Bank Building, 4-4A Des Voeux Road Central, Hong Kong and is regulated by the Hong Kong Monetary Authority and registered with the Securities and Futures Commission (“SFC”) to carry on Type 1 (dealing in securities), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activity under the Securities and Futures Ordinance (Cap. 571) (“SFO”) (CE No. AJI614). The contents of this document have not been reviewed by any regulatory authority in Hong Kong and you are advised to exercise caution in relation to any offer set out herein. If you are in doubt about any of the contents of this document, you should obtain independent professional advice. Any product named herein may not be offered or sold in Hong Kong by means of any document at any time other than to “professional investors” as defined in the SFO and any rules made under that ordinance. In addition, this document may not be issued or possessed for the purposes of issue, whether in Hong Kong or elsewhere, and any interests may not be disposed of, to any person unless such person is outside Hong Kong or is a “professional investor” as defined in the SFO and any rules made under that ordinance, or as otherwise may be permitted by that ordinance. In Hong Kong, Standard Chartered Private Bank is the private banking division of SCBHK, a subsidiary of Standard Chartered PLC. Ghana: Standard Chartered Bank Ghana Limited accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of these documents. Past performance is not indicative of future results and no representation or warranty is made regarding future performance. You should seek advice from a financial adviser on the suitability of an investment for you, taking into account these factors before making a commitment to invest in an investment. To unsubscribe from receiving further updates, please send an email to feedback.ghana@sc.com. Please do not reply to this email. Call our Priority Banking on 0302610750 for any questions or service queries. You are advised not to send any confidential and/or important information to Standard Chartered via e-mail, as Standard Chartered makes no representations or warranties as to the security or accuracy of any information transmitted via e-mail. Standard Chartered shall not be responsible for any loss or damage suffered by you arising from your decision to use e-mail to communicate with the Bank. India: This document is being distributed in India by Standard Chartered in its capacity as a distributor of mutual funds and referrer of any other third party financial products. Standard Chartered does not offer any ‘Investment Advice’ as defined in the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 or otherwise. Services/products related securities business offered by Standard Charted are not intended for any person, who is a resident of any jurisdiction, the laws of which imposes prohibition on soliciting the securities business in that jurisdiction without going through the registration requirements and/or prohibit the use of any information contained in this document. Indonesia: This document is being distributed in Indonesia by Standard Chartered Bank, Indonesia branch, which is a financial institution licensed, registered and supervised by Otoritas Jasa Keuangan (Financial Service Authority). Jersey: In Jersey, Standard Chartered Private Bank is the Registered Business Name of the Jersey Branch of Standard Chartered Bank. The Jersey Branch of Standard Chartered Bank is regulated by the Jersey Financial Services Commission. Copies of the latest audited accounts of Standard Chartered Bank are available from its principal place of business in Jersey: PO Box 80, 15 Castle Street, St Helier, Jersey JE4 8PT. Standard Chartered Bank is incorporated in England with limited liability by Royal Charter in 1853 Reference Number ZC 18. The Principal Office of the Company is situated in England at 1 Basinghall Avenue, London, EC2V 5DD. Standard Chartered Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. The Jersey Branch of Standard Chartered Bank is also an authorised financial services provider under license number 44946 issued by the Financial Sector Conduct Authority of the Republic of South Africa. Jersey is not part of the United Kingdom and all business transacted with Standard Chartered Bank, Jersey Branch and other SC Group Entity outside of the United Kingdom, are not subject to some or any of the investor protection and compensation schemes available under United Kingdom law. Kenya: This document is being distributed in Kenya by and is attributable to Standard Chartered Bank Kenya Limited. Investment Products and Services are distributed by Standard Chartered Investment Services Limited, a wholly owned subsidiary of Standard Chartered Bank Kenya Limited that is licensed by the Capital Markets Authority in Kenya, as a Fund Manager. Standard Chartered Bank Kenya Limited is regulated by the Central Bank of Kenya. Malaysia: This document is being distributed in Malaysia by Standard Chartered Bank Malaysia Berhad (“SCBMB”). Recipients in Malaysia should contact SCBMB in relation to any matters arising from, or in connection with, this document. This document has not been reviewed by the Securities Commission Malaysia. The product lodgement, registration, submission or approval by the Securities Commission of Malaysia does not amount to nor indicate recommendation or endorsement of the product, service or promotional activity. Investment products are not deposits and are not obligations of, not guaranteed by, and not protected by SCBMB or any of the affiliates or subsidiaries, or by Perbadanan Insurans Deposit Malaysia, any government or insurance agency. Investment products are subject to investment risks, including the possible loss of the principal amount invested. SCBMB expressly disclaim any liability and responsibility for any loss arising directly or indirectly (including special, incidental or consequential loss or damage) arising from the financial losses of the Investment Products due to market condition. Nigeria: This document is being distributed in Nigeria by Standard Chartered Bank Nigeria Limited (SCB Nigeria), a bank duly licensed and regulated by the Central Bank of Nigeria. SCB Nigeria accepts no liability for any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of these documents. You should seek advice from a financial adviser on the suitability of an investment for you, taking into account these factors before making a commitment to invest in an investment. To unsubscribe from receiving further updates, please send an email to clientcare.ng@sc.com requesting to be removed from our mailing list. Please do not reply to this email. Call our Priority Banking on 02 012772514 for any questions or service queries. Standard Chartered shall not be responsible for any loss or damage arising from your decision to send confidential and/or important information to Standard Chartered via e-mail, as Standard Chartered makes no representations or warranties as to the security or accuracy of any information transmitted via e-mail. Pakistan: This document is being distributed in Pakistan by, and attributable to Standard Chartered Bank (Pakistan) Limited having its registered office at PO Box 5556, I.I Chundrigar Road Karachi, which is a banking company registered with State Bank of Pakistan under Banking Companies Ordinance 1962 and is also having licensed issued by Securities & Exchange Commission of Pakistan for Security Advisors. Standard Chartered Bank (Pakistan) Limited acts as a distributor of mutual funds and referrer of other third-party financial products. Singapore: This document is being distributed in Singapore by, and is attributable to, Standard Chartered Bank (Singapore) Limited (Registration No. 201224747C/ GST Group Registration No. MR-8500053-0, “SCBSL”). Recipients in Singapore should contact SCBSL in relation to any matters arising from, or in connection with, this document. SCBSL is an indirect wholly owned subsidiary of Standard Chartered Bank and is licensed to conduct banking business in Singapore under the Singapore Banking Act, 1970. Standard Chartered Private Bank is the private banking division of SCBSL. IN RELATION TO ANY SECURITY OR SECURITIES-BASED DERIVATIVES CONTRACT REFERRED TO IN THIS DOCUMENT, THIS DOCUMENT, TOGETHER WITH THE ISSUER DOCUMENTATION, SHALL BE DEEMED AN INFORMATION MEMORANDUM (AS DEFINED IN SECTION 275 OF THE SECURITIES AND FUTURES ACT, 2001 (“SFA”)). THIS DOCUMENT IS INTENDED FOR DISTRIBUTION TO ACCREDITED INVESTORS, AS DEFINED IN SECTION 4A(1)(a) OF THE SFA, OR ON THE BASIS THAT THE SECURITY OR SECURITIES-BASED DERIVATIVES CONTRACT MAY ONLY BE ACQUIRED AT A CONSIDERATION OF NOT LESS THAN S$200,000 (OR ITS EQUIVALENT IN A FOREIGN CURRENCY) FOR EACH TRANSACTION. Further, in relation to any security or securities-based derivatives contract, neither this document nor the Issuer Documentation has been registered as a prospectus with the Monetary Authority of Singapore under the SFA. Accordingly, this document and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the product may not be circulated or distributed, nor may the product be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons other than a relevant person pursuant to section 275(1) of the SFA, or any person pursuant to section 275(1A) of the SFA, and in accordance with the conditions specified in section 275 of the SFA, or pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. In relation to any collective investment schemes referred to in this document, this document is for general information purposes only and is not an offering document or prospectus (as defined in the SFA). This document is not, nor is it intended to be (i) an offer or solicitation of an offer to buy or sell any capital markets product; or (ii) an advertisement of an offer or intended offer of any capital markets product. Deposit Insurance Scheme: Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. This advertisement has not been reviewed by the Monetary Authority of Singapore. Taiwan: SC Group Entity or Standard Chartered Bank (Taiwan) Limited (“SCB (Taiwan)”) may be involved in the financial instruments contained herein or other related financial instruments. The author of this document may have discussed the information contained herein with other employees or agents of SC or SCB (Taiwan). The author and the above-mentioned employees of SC or SCB (Taiwan) may have taken related actions in respect of the information involved (including communication with customers of SC or SCB (Taiwan) as to the information contained herein). The opinions contained in this document may change, or differ from the opinions of employees of SC or SCB (Taiwan). SC and SCB (Taiwan) will not provide any notice of any changes to or differences between the above-mentioned opinions. This document may cover companies with which SC or SCB (Taiwan) seeks to do business at times and issuers of financial instruments. Therefore, investors should understand that the information contained herein may serve as specific purposes as a result of conflict of interests of SC or SCB (Taiwan). SC, SCB (Taiwan), the employees (including those who have discussions with the author) or customers of SC or SCB (Taiwan) may have an interest in the products, related financial instruments or related derivative financial products contained herein; invest in those products at various prices and on different market conditions; have different or conflicting interests in those products. The potential impacts include market makers’ related activities, such as dealing, investment, acting as agents, or performing financial or consulting services in relation to any of the products referred to in this document. UAE: DIFC – Standard Chartered Bank is incorporated in England with limited liability by Royal Charter 1853 Reference Number ZC18.The Principal Office of the Company is situated in England at 1 Basinghall Avenue, London, EC2V 5DD. Standard Chartered Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Standard Chartered Bank, Dubai International Financial Centre having its offices at Dubai International Financial Centre, Building 1, Gate Precinct, P.O. Box 999, Dubai, UAE is a branch of Standard Chartered Bank and is regulated by the Dubai Financial Services Authority (“DFSA”). This document is intended for use only by Professional Clients and is not directed at Retail Clients as defined by the DFSA Rulebook. In the DIFC we are authorised to provide financial services only to clients who qualify as Professional Clients and Market Counterparties and not to Retail Clients. As a Professional Client you will not be given the higher retail client protection and compensation rights and if you use your right to be classified as a Retail Client we will be unable to provide financial services and products to you as we do not hold the required license to undertake such activities. For Islamic transactions, we are acting under the supervision of our Shariah Supervisory Committee. Relevant information on our Shariah Supervisory Committee is currently available on the Standard Chartered Bank website in the Islamic banking section. For residents of the UAE – Standard Chartered Bank UAE does not provide financial analysis or consultation services in or into the UAE within the meaning of UAE Securities and Commodities Authority Decision No. 48/r of 2008 concerning financial consultation and financial analysis. Uganda: Our Investment products and services are distributed by Standard Chartered Bank Uganda Limited, which is licensed by the Capital Markets Authority as an investment adviser. United Kingdom: In the UK, Standard Chartered Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. This communication has been approved by Standard Chartered Bank for the purposes of Section 21 (2) (b) of the United Kingdom’s Financial Services and Markets Act 2000 (“FSMA”) as amended in 2010 and 2012 only. Standard Chartered Bank (trading as Standard Chartered Private Bank) is also an authorised financial services provider (license number 45747) in terms of the South African Financial Advisory and Intermediary Services Act, 2002. The Materials have not been prepared in accordance with UK legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Vietnam: This document is being distributed in Vietnam by, and is attributable to, Standard Chartered Bank (Vietnam) Limited which is mainly regulated by State Bank of Vietnam (SBV). Recipients in Vietnam should contact Standard Chartered Bank (Vietnam) Limited for any queries regarding any content of this document. Zambia: This document is distributed by Standard Chartered Bank Zambia Plc, a company incorporated in Zambia and registered as a commercial bank and licensed by the Bank of Zambia under the Banking and Financial Services Act Chapter 387 of the Laws of Zambia.