EFTA01458591.pdf

Glossary Here we explain central terms of the Macro outlook The Bank of Japan (B0J) is the central bank of Japan. The MSCI Emerging Markets Indiiix captures large- and mid-cap representation across 23 emerging-market countries. The dividend yield is the dividend that a company pays out each year divided by its share price. Non-tradable goods are goods that are not easily traded between countries (e.g. prepared food for immediate An emerging market (E M; is a country that has some consumption). characteristics of a developed market in terms of market efficiency, liquidity and other factors, but does not meet The output gap refers to the difference between a country's standards to be a developed market. actual GDP and its believed potential GDP, if all inputs were being used efficiently. The European Central Bank (ECB) is the central bank for the Eurozone's single currency, the euro. The periphery is defined as the outer limits or edge of an area. Within the context of the euro area, the periphery comprises The Eurozone, also called the cure area, is a monetary union of those countries which are less developed than the core 19 of the 28 European Union (EU) member states which have countries. adopted the euro as their common currency. The term purchasing power parity (PPP) defines the rates of The federal funds rate is the interest rate at which banks currency conversion that equalize the purchasing power of actively trade balances held at the Federal Reserve. different currencies by eliminating the differences in price levels between countries and are used for making inter-country The U S. Federal Reserve Board {Fedi is the board of governors comparisons in real terms of GDP. of the Federal Reserve; it implements U.S. monetary policy. A recession is. technically, when an economy contracts for two Financial crisis refers to the period of market turmoil that successive quarters but is often used in a looser way to indicate started in 2007 and worsened sharply in 2008 with the collapse declining output. of Lehman Brothers. Renminbi (RMB) is the currency of the People's Republic of The gross domestic product (GDP) is the monetary value of all China, also referred to as the yuan. the finished goods and services produced within a country's borders in a specific time period. Valuation attempts to quantity the attractiveness of an asset, for example through looking at a firm's stock price in relation to its Monetary policy focuses on controlling the supply of earnings. money with the ulterior motives of price stability, reducing unemployment. boosting growth etc. (depending on the central bank's mandate). The MSCI AC World index captures large- and mid-cap representation across 23 developed- and 23 emerging-market countries. Macra oodo,k I ArocrmavEdre-..-v I Ocubw 7015 tl i tinesO CONFIDENTIAL — PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0118570 CONFIDENTIAL SDNY_GM_00264754 EFTA01458591