The purpose of this report is to present you with an opinion which is as clear as possible about the present situation on the financial markets. The information presented in this report is provided to you for information purposes only and is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. Information and opinions presented in this report have been obtained or derived from sources believed by RFP to be reliable, but RFP makes no representation as to their accuracy or completeness. RFP accepts no liability for loss arising from the use of the material presented in this report.

Summary:

Since last month, the situation on financial markets has not changed a lot. Europe is preparing itself for an organized default of Greece, which should also create big uncertainties in the European banking industry. Moreover, the Western governments will have to reduce their expenses and raise taxes in order to preserve their debt from a crisis of confidence. In this light, even if the monetary policies will remain very loose, we think that the higher taxes and the lower expenses will lead Europe and the United States into another recession. Of course, emerging countries should suffer from this and their stock markets should follow. In this light, we still think that investors should remain very prudent, all the more as the volatility of stock markets is still very high. In this context, short-term notes in Euro (which should rebound soon) are still to prefer while waiting for more affordable levels on stock markets.