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From: Ens, Amanda | Sent: 4/7/2017 12:24:59 PM To: jeffrey E. [jeevacation@gmail.com]; Richard Kahn [inn Subject: EU BANKS: BIG EQUITY OUTFLOWS BUT REMAIN UPBEAT ON REFLATION TRADE: SALES TOP PICKS = SOC GEN, INTESA, NORDEA Attachments: image001.gif; image001jpg01D2AF7627BB3E30.jpg; image012png01D2AF7627BB3E30.png; image014jpg01D2AF762A2ADEA0. jpg; image015jpg01D2AF762A2ADEAQ.jpg; image016jpg01D2AF762A2ADEA0. jpg; image017jpg01D2AF762A2ADEA0. jpg; image018jpg01D2AF762A2ADEA0.jpg Importance: — High We remain positive on banks that can make acceptable returns in the current environment and are geared into the upside when rates begin to recover... ING, KBC, Intesa, Unicredit, SocGen, Erste, BKIR are all Buy rated. Global Equities Z Bank of America Specialist Sales — European Financials Merrill Lynch MAR disclosure EU BANKS: BIG EQUITY OUTFLOWS BUT REMAIN UPBEAT ON REFLATION TRADE Spec Sales Comment: BofAML SESE ee ee oe ee eee outflows in 40 weeks and first outflows YTD (click here). Our BofAML Bull & Bear Indicator is now at 7.1, the highest level since Jul'14 and not far from "sell" signal. So is this just a pause for breath in the reflation trade? BofAML strategists think so. In our updated thoughts this morning we think reflation is real so stay long equities, short rates, selectively long USD (click here). Chart 12: BofAML B&B Indicator (scale from 0 to 10) Extreme Bearish Bullish Source: BofA Merrill Lynch Global Investment Strategy The main reasons for equity investor concern in recent weeks = the gap between hard and soft data, plus the delay in the Trump fiscal package HOUSE_OVERSIGHT_014860