From: Richard Kahn

From: Richard Kahn To: "Jeffrey E." <jeevacation@gmail.com> Subject: Fwd: GS: Market ripples from a weaker CNY Date: Wed, 12 Aug 2015 15:14:30 +0000 Attachments: Market_ripples_from_a_weaker_CNY.pdf Goldman commentary on CNY Richard Kahn FIBRK Associates Inc. Begin forwarded message: From: "Taylor, Judie" Subject: GS: Market ripples from a weaker CNY Date: August 12, 2015 at 9:28:08AM EDT To: "Kahn, Rich" GIR views modest impact from devalued Yuan: Market ripples from a weaker CNY • For the second day running, the PBoC has raised the $/CNY fix by close to 2%. • This shift in the currency is consistent with weak underlying activity in China. • We think the move in the currency so far will have only a modest impact on exports ... • ... and does not change our view of sluggish China commodity demand. • While on the margin the resulting strength in the USD reduces the likelihood of near-term Fed tightening ... • ... we think the overall impact on US growth and inflation will be limited compared with other economies. • We continue to favour the USD over commodity currencies and the EUR • ... and think that US data will be the primary driver of US rates over coming months. • Consistent with our core view, we remain cautious on EM equities. Full report attached. Best, Judie Z. Taylor Investment Management Division Goldman. Sachs & Co. EFTA01191119 This e-mail does not constitute an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. This e-mail may contain confidential or privileged information. If you are not the intended recipient. please advise us immediately and delete this message. If you are sending confidential information (e.g. name, tax ID). please ensure you are using a secure method of delivery. You may fax confidential information to 212-493-0451. For additional information. including how to opt-out of future messages. see http://www.gs.com/disclaimer/pwm.htrril. For prospectuses of recent initial public offerings to which this message may be related see httpJhwAv.gs.com/disclaimertipoi. See www.goldman.comigsrldaccounts/CFTC.Disclosure for important disclosures related to CFTC-regulated swap transactions. If you currently hold CFTC-regulated swaps. you may access the Dodd-Frank Regulatory Daily Mark through the Client Web. Please contact us if you do not have access to these links or to the Client Web. EFTA01191120