EFTA02422086

To: Jeevacation[jeevacation@gmail.com] From: Jeffrey M Matusow Sent: Tue 5/25/2010 1:25:30 PM Subject: Update On top of the financial issues, we now have the Korea situation heating up - European stock markets are down 3.4"% and US futures are down 2.2.5%. On the positive side, the Euro is below 1.22, GBP hitting fresh lows around 1.43, the short interest rate positions are working. The two big worry positions are: Euro dividends - down a point at 85. Nothing to do here. 30 year swap rates - down another 10bps. I think we should buy some protection on the 30y swap position. If Korea disintegrates further we will see more safe haven buying of Treasuries and the USD which will keep long term rates low. Goldman is indicating opening around $134.50 - down $2 from yesterday's close. The other safe haven, Gold, is at $1195. That is up from the recent low at $1180 but down from last week's high at $1240. Give me a call. Jeff Jeffrey M. Matusow JPMorgan Private Bank 140 West 57th Street. 33rd Floor, New York. NY 10019 Work IRS Circular 230 Disclosure. JPMorgan Chase & Co and its affiliates do not provide tax advice Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used. in connection with the promotion. marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. EFTA_R1_01488631 EFTA02422086