Brief Equity Report Card

Interest Rates
- Headed lower in US -Headed up in Japan
- Flat or up in UK and Europe

Imploding Risks
- Subprime: some bodies being uncovered but ghastly deeds have been done and murderer caught already ... room for more anxiety but should be controlled
- Yen carry trade: Risk getting higher as BOJ very likely to raise rates at least once maybe twice over the next 6 months ... however unwinding may not turn into an avalanche, it is more likely to be gradual ... expect yen/usd to reach 118 again over the next 3 months

Asia & Emerging Markets
- Bubbles not evident either in equity markets or housing except in China
- Best looking in Asia: Japan, South Korea and Taiwan
- Best Currency Play: Malaysia, Taiwan
- Best Theme For Rest Of The Year - Oil & gas as I expect oil to stay btw US65-80 for rest of year, with a bias on the high side

Best Malaysian Holdings For 2H2007 (6 month view - not for trading purposes)
- Sapuracrest
- UEM World
- Ekovest
- Epic
- Samudra
- Petrochina-CWs (any)
- China Mobile-CWs (any)

Best Thai Holdings For 2H2007
- Somboon Advance
- Bangkok Land
- Thanachart Capital

Best Singapore Holdings For 2H2007
- Techcomp
- Hong Fok Corp
- Hiap Seng Engineering

Best HK Holdings For 2H2007
- China Everbright
- Xinyi Glass
- Soundwill Holdings