Euro Equity Update

Baader have issued a price target of €93 on Adidas. They expect quarter 3 results to be weak but a strong recovery is expected in the fourth quarter. We are comfortable with our Neutral Stance and a price target of €81. We believe that Adidas is an exceptional brand and presents long -term value. While not adding Adidas in the short -term we definitely remain holders.

Deutsche Post CEO was quoted saying that Asia remains the most important market. Currency devaluation in India and Indonesia is not hurting DPW as returns are being reinvested in these countries. DPW is a global growth indicator and DPW's performance will be leveraged on economic growth. Our price target of €28 on DPW is based on a slow recovering global economy.

Jefferies analyst Peter Misek has upgraded Apple share to buy with a price target of $600. We are constantly monitoring Apple and updating the price target regularly. We have a neutral stance on Apple. As an upgrade to the iPad approaches we expect positive price movements. We are holders of Apple but find it difficult to justify adding Apple at this point. Independent of Apple's outlook may I remind investors of the potential risks of overexposure to one asset or to one asset class.

Antoine