EFTA00711075.pdf

From: Paul Morris < To: "Jeffrey Epstein" -4 Subject: Re: Fwd: Japanese Equity Basket... [C] Date: Fri, 20 Dec 2013 23:01:25 +0000 Importance: Normal Inline-Images: unnamed Classification: Confidential Spoke with Caroline. will circle back to you. Noting is more important than getting the best resources in front of you and getting this right. Thanks for the time today. From: Jeffrey Epstein Sent: 12/20/2013 09:34 AM EST To: Paul Morris Subject: Fwd: Japanese Equity Basket... [C] Forwarded message From: Tazia Smith < Date: Wed, Dec 18, 2013 at 2:31 PM Subject: Japanese Equity Basket... [C] To: Cc: Paul Morris < >, Vahe Stepanian Classification: Confidential Jeffrey - Now that the FOMC decision is behind us (with the $10bn taper we just talked about), here is the basket of single-name Japanese equities that we put together to build on your bullish view (presently in DXJ). To incorporate your bearish yen view, we could quanto this basket like we talked about...in note form, we priced 13mos with HSBC, comes to a 95% participation eg. if the basket was up 18%, note would be up 17.1%; if basket is down 10%, note is down 9.5%. max loss 95% of principal (indicative levels only, subject to market movement, as of 12/18/13). We can look to add to your yen short position opportunistically as an alpha overlay (USDJPY now at 103.40). Let us know your thoughts, Tazia EFTA00711075 Indicative levels, subject to market movement. Source: Bloomberg and DB Global Markets Research 12/16/13. Supplemental Information: DB Research ex ects Ja.anese e. uities could double b 2015 • Abenomics will lead to higher operational leverage and an improved domestic economy • BoJ will ease further as needed; DB expects USD/JPY FX to reach 120 by 2015 • Strong macroeconomic data and increase in overseas asset purchases by the Japanese • GPIF panel report (a third arrow initiative) strongly positive for Japanese risk assets http://www.cas.go.jp/jp/seisaku/koutekisikin unyourisk/pdf/e final report.pdf Yen weakening will likely continue to be a theme, benefiting exporters. Toyota: https://gergm.cib.intranet.db.com/ger/document/pdf/0900b8c0877259ad.pdf 7203 JP Buy Current price 6170 Target price (11m) 8000 Upside 29% Panasonic https://gergm.ci b. i ntranet.d b.com/ger/docu ment/pdf/0900b8c08795101a.pdf (6752 JP Buy Current price 1158 Target price (12m) 1300 Upside 12% Omron 6645 JP Not rated at DB Current price 4105 Target price (12m) 4426 (Bloomberg avg. Not covered by DB) Upside 8% Kawasaki Kisen: http://g m.db.com/ger/document/ShowPdf.eq sr?prod uctl DMore=0900b8c087790d 17 9107 JP Buy Current price 236 Target price (12m) 280 Upside 18% Reflation is the other major theme, which should be positive for retailers and banks, where DB Research is bullish Rakuten and Resona respectively. Rakuten: https://gergm.cib.intranet.db.com/ger/document/pdf/0900b8c087a30eda.pdf 4755 JP Buy Current price 1531 Target price (12m) 1710 EFTA00711076 Upside 12% Resona: https://ger gm. ci b i ntra n et.d b com/ger/document/pdf/0900b8c0879ce3f0.pdf 8308 JP Buy Current price 512 Target price (12m) 650 Upside 27% Tazia Smith Director I Key Client Partners - US Deutsche Bank Securities Inc Deutsche Asset & Wealth Management 345 Park Avenue, 26th Floor New York, NY 10154 yr This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00711077 This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA00711078