EFTA01461266.pdf

Cc: Paul Morris, vahe Stepania Date: 12/18/2013 02:31 PM Subject: Japanese Equity Basket... [C] classification: confidential Jeffrey - Now that the FOMC decision is behind us (with the 510bn 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 Dx7). 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 (Embedded image moved to file: pic28606.gif) Indicative levels, subject to market movement. Source: Bloomberg and DB Global Markets Research 12/16/13. Supplemental Information: DB Research expects Japanese equities could double by 2015 http://pull.db-gmresearch.com/cgi-bin/pull/DocPu11/10496-D6FF/89936366/The_mouse_18oct2013.pdf Abenomics will lead to higher operational leverage and an improved domestic economy BO] 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://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c0877259ad.pdf 7203 JP Buy Current price 6170 Target price (11m) 8000 upside 29% Panasonic https://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c08795101a.pdf (6752 JP Buy Current price 1158 Target price (12m) 1300 upside 12% Onmon CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 123201 CONFIDENTIAL SDNY_GM_00269385 EFTA01461266