3 August 2020

The Long and Short of it – Weekly Update

Week in review – U.S. tech giants back in the driving seat… for now It was a week of sharp contrasts: strong numbers from tech giants, Amazon, Apple, Facebook, on the one hand counterbalanced by significant falls in GDP in the U.S. and eurozone combined with growing concerns about the pandemic. On Friday, the World Health Organization reported a record increase in global coronavirus cases, with the total rising by 292,527, and with Brazil, the U.S., India and South Africa having the biggest increases. In Europe, there has been an uptick in infections, which, in the UK, has led Boris Johnson to postpone plans to re-open high- risk venues such as casinos, as well as the government imposing new quarantine conditions on people travelling into the UK from Spain. Against this backdrop, it is hardly surprising that Willie Walsh, the CEO of IAG, which announced a €2.75 billion rights issue, indicated that he doesn’t think air travel will return to pre-Covid levels until 2023. The banks too face a challenging environment and the ECB this week asked that banks not pay dividends or buy back shares at least until January, three months longer than initially indicated, and expects banks “to exercise extreme moderation on variable remuneration to conserve capital in crisis”. It will review its position in Q4, as will the Bank of England, which indicated that it would conduct a review of any plans by the UK’s biggest banks to pay dividends. The S&P 500 rose on the week driven by the strong quarterly results from the tech giants, which will probably lead to even closer scrutiny from politicians and regulators looking at anti-competitive behaviour. In contrast, the FTSE 100 fell as quarterly results from the blue chips reflected the difficulties facing old economy stocks across sectors such as banks and oil and gas. There were some bright spots, BAE Systems reinstated its dividend and the miners are seeing good levels of demand across different commodities. Chart of the week: Eurozone and EU GDP growth rates, % change over the previous quarter based on seasonally adjusted date (Source: Eurostat)

2Q 2020 Change, Qtr-on-Qtr EU: -11.9% Eurozone: -12.1%

Source: https://ec.europa.eu/eurostat/documents/2995521/11156775/2-31072020-BP-EN.pdf/cbe7522c-ebfa-ef08-be60-b1c9d1bd385b Week ahead – Decision time on the BP dividend Eurozone retail sales on Wednesday, Bank of England rate decision on Thursday, U.S. unemployment report on Friday, plus several PMI releases over the week. Earnings: 4 August – Diageo (FY20), BP (2Q20); 6 August – Glencore (1H20), Uber (2Q21) Top performing ETPs over the week – UK Blue Chips and U.S. Tech Leaders +3x Long BAE Systems (3LBA) +6.4% Long ETP +3x Long Apple (3LAP) +46.5% -3x Short Rolls Royce (3SRR) +49.4% Short ETP -3x Uber (3SUB) +18.8%

Past performance is not a reliable indicator of future results. The value of an investment may go down as well as up and can result in losses, up to and including a total loss of the amount initially invested. All ETP performance figures are inclusive of fees and other adjustments. Returns measured in currency of underlying stock.

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3 August 2020

Weekly performance and moving averages – Underlying UK stocks Closing price 31 Weekly Price vs Underlying stock MA 200d MA 50d High - 52w Low - 52w Jul 2020 change 52w High AstraZeneca 8,530.00 -1.4% 7,793.13 8,582.16 10,120.00 5,871.00 -15.71% BAE Systems 490.20 2.6% 549.27 495.20 672.60 428.60 -27.12% Barclays 100.56 -11.5% 138.62 116.45 192.96 73.04 -47.89% BP 275.15 -7.7% 393.92 312.88 533.10 222.90 -48.39% Diageo 2,801.00 0.2% 2,909.82 2,801.77 3,633.50 2,139.00 -22.91% Glencore 174.64 -4.5% 193.25 172.36 264.10 109.76 -33.87% Lloyds Banking Group 26.29 -11.5% 44.99 31.20 69.99 25.50 -62.44% Rio Tinto 4,615.00 -2.8% 4,174.61 4,585.90 4,991.00 2,954.00 -7.53% Rolls-Royce 231.60 -13.6% 501.95 296.35 853.16 231.60 -72.85% Royal Dutch Shell A 1,121.60 -9.7% 1,729.22 1,314.25 2,440.00 946.10 -54.03% Vodafone 115.56 -5.4% 136.49 128.55 169.46 92.76 -31.81% 3x Long ETP performance Underlying stock Ticker 27-Jul 28-Jul 29-Jul 30-Jul 31-Jul 1 Week Last 20 days AstraZeneca 3LAZ -0.17% 1.81% -2.94% 4.72% -7.58% -4.54% -3.62% BAE Systems 3LBA 0.31% 3.71% -4.65% 17.67% -8.79% 6.44% 5.69% Barclays 3LBC -6.82% 2.31% -18.46% -12.01% -0.77% -32.12% -42.10% BP 3LBP -3.66% -0.76% 0.00% -10.73% -8.68% -22.06% -22.06% Diageo 3LDO -1.30% 6.16% 3.63% -1.68% -6.19% 0.14% 0.82% Glencore 3LGL 3.60% -3.09% -1.60% -8.38% -4.18% -13.26% -7.32% Lloyds Banking Group 3LLL -8.09% 3.46% -8.81% -23.00% 1.08% -32.51% -38.87% Rio Tinto 3LRI 5.75% -4.61% 2.07% -7.68% -3.89% -8.64% -9.93% Rolls-Royce 3LRR -10.53% 2.94% -8.57% -9.38% -17.69% -37.18% -38.79% Royal Dutch Shell A 3LRD -2.98% -0.34% -0.34% -16.84% -9.57% -27.54% -34.48% Vodafone 3LVO -2.97% -0.79% 6.05% -11.04% -7.63% -16.11% -22.19% 3x Short ETP performance Underlying stock Ticker 27-Jul 28-Jul 29-Jul 30-Jul 31-Jul 1 Week Last 20 days AstraZeneca 3SAZ 0.10% -1.84% 2.94% -4.72% 7.54% 3.64% -3.50% BAE Systems 3SBA -0.36% -3.77% 4.63% -17.69% 8.77% -10.19% -13.86% Barclays 3SBC 6.83% -2.34% 18.36% 12.08% 0.64% 39.28% 60.82% BP 3SBP 3.67% 0.65% -0.08% 10.66% 8.66% 25.38% 19.61% Diageo 3SDO 1.23% -6.21% -3.64% 1.66% 6.16% -1.27% -4.13% Glencore 3SGL -3.66% 3.06% 1.53% 8.36% 4.08% 13.70% 4.30% Lloyds Banking Group 3SLL 7.99% -3.34% 8.76% 22.83% -0.93% 38.15% 50.84% Rio Tinto 3SRI -5.82% 4.52% -2.05% 7.59% 3.89% 7.77% 7.45% Rolls-Royce 3SRR 9.02% -3.03% 10.82% 9.23% 16.72% 49.37% 37.02% Royal Dutch Shell A 3SRD 2.90% 0.46% 0.37% 16.63% 9.61% 32.64% 41.26% Vodafone 3SVO 2.85% 0.79% -6.09% 10.99% 7.63% 16.30% 21.06% Data and charts All performance data to 31 July 2020. Data and charts sourced from Bloomberg, unless otherwise indicated. Broker forecasts sourced from www.sharesmagazine.co.uk, company events sourced from company websites.

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3 August 2020

Weekly performance and moving averages – Underlying U.S. stocks Closing price 31 Weekly Price vs Underlying stock MA 200d MA 50d High - 52w Low - 52w Jul 2020 change 52w High Alphabet 1,487.95 -1.3% 1,358.07 1,466.91 1,586.58 1,009.00 -6.22% Amazon 3,164.68 5.2% 2,168.24 2,784.84 3,343.81 1,627.00 -5.36% Apple 425.04 14.7% 300.68 358.48 425.66 192.59 -0.15% Facebook 253.67 10.0% 204.83 234.92 255.85 137.11 -0.85% Microsoft 205.01 1.8% 170.36 197.80 216.38 130.79 -5.25% Netflix 488.88 1.8% 378.42 463.55 575.28 252.30 -15.02% NVIDIA 424.59 4.1% 281.72 382.35 431.54 147.40 -1.61% Tesla 1,430.76 1.0% 699.70 1,164.91 1,794.99 211.00 -20.29% UBER 30.26 -3.0% 31.38 32.95 43.00 13.71 -29.63% 3x Long ETP performance Underlying stock Ticker 27-Jul 28-Jul 29-Jul 30-Jul 31-Jul 1 Week Last 20 days Alphabet 3LAL 4.19% -5.06% 3.96% 2.92% -9.85% -4.58% -6.01% Amazon 3LZN 4.58% -5.39% 3.31% 1.81% 11.09% 15.60% 2.70% Apple 3LAP 7.08% -4.95% 5.75% 3.62% 31.39% 46.55% 32.25% Facebook 3LFB 3.61% -4.34% 4.11% 1.56% 24.51% 30.47% 16.70% Microsoft 3LMS 3.77% -2.71% 3.01% -0.25% 1.63% 5.44% -4.57% Netflix 3LNF 9.47% -4.33% -2.50% 0.81% 1.89% 4.89% -21.58% NVIDIA 3LNV 6.66% -5.94% 7.33% 4.26% 0.00% 12.26% 15.73% Tesla 3LTS 25.91% -12.31% 4.58% -2.34% -11.46% -0.15% -20.12% UBER 3LUB -1.89% -1.76% 2.03% -7.56% 0.18% -8.92% -15.58% 3x Short ETP performance Underlying stock Ticker 27-Jul 28-Jul 29-Jul 30-Jul 31-Jul 1 Week Last 20 days Alphabet 3SAL -4.24% 5.04% -3.98% -2.91% 9.82% 2.98% 2.45% Amazon 3SZN -4.62% 5.37% -3.33% -1.80% -11.10% -15.18% -12.22% Apple 3SAP -7.14% 4.93% -5.76% -3.64% -31.42% -39.32% -34.79% Facebook 3SFB -3.65% 4.35% -4.15% -1.56% -24.54% -28.40% -21.17% Microsoft 3SMS -3.83% 2.68% -3.04% 0.23% -1.65% -5.61% -0.14% Netflix 3SNF -9.54% 4.33% 2.47% -0.85% -1.90% -5.94% 18.87% NVIDIA 3SNV -6.69% 5.90% -7.35% -4.25% -0.04% -12.37% -17.91% Tesla 3STS -26.03% 12.35% -4.67% 2.39% 11.39% -9.64% -5.74% UBER 3SUB 1.78% 1.73% -2.08% 7.52% -0.21% 8.79% 8.76%

Data and charts All performance data to 31 July 2020. Data and charts sourced from Bloomberg, unless otherwise indicated. Company events sourced from company websites and third-party sites.

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3 August 2020

UK Blue Chips

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3 August 2020

Company AstraZeneca (AZN) AZN Performance Listed ETPs 3x Long AstraZeneca Daily ETP (3LAZ) 1 week -1.4% 3x Short AstraZeneca Daily ETP (3SAZ) 1 month 0.9% YTD 14.4% Exchange London Stock Exchange Price vs 52w high -15.7% Overview Market outperformer over the week. It announced 1H 2020 results, which were well received by investors. Highlights include total revenue up by 14%, with strong performance in the following areas: new medicines (+45%); Oncology (+31%), New Cardiovascular, Renal and Metabolism (+11%), Respiratory & Immunology (+7%) and Emerging markets (+15%); core operating profit up 23%, core EPS of $2.01 (+26%); first interim dividend maintained at $0.90. Net debt increased to $13.7bn from $11.9bn as a result of the March payment of two-thirds of the annual dividend. Financial guidance for FY 2020 is unchanged. Total revenue is expected to increase by a high single-digit to a low double-digit percentage and core EPS is expected to increase by a mid-to high-teens percentage. DZ Bank maintained its ‘sell’ rating, raised its price target to 7500p from 7300p, Barclays Capital maintained its ‘overweight’ rating, raised price target to 9300p from 9200p. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current $5.3 b $4.03 $2.81 $6.7 b $5.06 $2.87 1 month change 0.2% -0.3% 0.8% 1.2% 0.3% 1.6% Upcoming Events 13/08/20 XD, First interim dividend

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3 August 2020

Company BAE Systems (BA.) BA. Performance Listed ETPs 3x Long BAE Systems Daily ETP (3LBA) 1 week 2.6% 3x Short BAE Systems Daily ETP (3SBA) 1 month 1.4% YTD -13.2% Exchange London Stock Exchange Price vs 52w high -27.1% Overview Market outperformer over the week. It announced 1H 2020 results, which were well received by investors, partly, no doubt, because of the announcement of the payment of the deferred 13.9p FY 2019 dividend in September plus an interim dividend of 9.4p in November for HY20. Compared to 2019, sales increased in the HY20 to £9,871m from £9,416m, EPS fell to 18.7p from 21.9p and net debt increased to £2,038m from £743m. Order intake and order backlog both grew. In terms of full year guidance, sales are expected to increase by low-single digit percentage compared to 2019, EPS expected to be mid-single digit percentage lower than 45.8p in 2019, free cash flow, excluding £1bn non-recurring UK pension contribution, expected to be around £800m. JP Morgan Cazenove maintained its ‘overweight’ rating, cut price target to 750p from 765p.

Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current £1.4 b $0.42 $0.24 £1.6 b $0.49 $0.25 1 month change -0.2% -3.0% 0.4% -0.4% -0.8% 0.4% Upcoming Events No dates announced

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3 August 2020

Company Barclays (BARC) BARC Performance Listed ETPs 3x Long Barclays Daily ETP (3LBC) 1 week -11.5% 3x Short Barclays Daily ETP (3SBC) 1 month -11.4% YTD -44.0% Exchange London Stock Exchange Price vs 52w high -47.9% Overview Market underperformer over the week. It announced its 1H 2020 results, and with the economy stalled, it is no surprise that impairment was increased to £3.7bn “primarily reflecting £0.6bn in respect of single name wholesale loan charges and £2.4bn impact from revised IFRS 9 scenarios (including a prolonged period of heightened UK and US unemployment), partially offset by the estimated impact of central bank, government and other support measures, and lower balances in UK and US cards.” The Corporate and Investment Bank saw income increase by 31%, the principal driver behind the overall increase in income of 8% compared to HY19, however EPS fell to 4.0p from 12.1p, net interest margin fell to 2.69% from 3.11%. Finally, the Common Equity Tier-1 (CET1) ratio increased to 14.2%, up 40bps from 31 December 2019. Guidance included an indication that impairment in 2H20 is expected to remain elevated, but to be below the 1H20 credit impairment charge assuming no change in macroeconomic forecasts. Credit Suisse maintained its ‘neutral’ rating, cut price target to 125p from 130p. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current -$1.6 b -$0.04 $0.36 $4.8 b $0.25 $0.34 1 month change -685.9% -300.0% -1.4% 2.1% 4.5% -2.9%

Upcoming Events 23/10/20 Q3 Results

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3 August 2020

Company BP (BP.) BP. Performance Listed ETPs 3x Long BP Daily TP (3LBP) 1 week -7.7% 3x Short BP Daily ETP (3SBP) 1 month -11.1% YTD -39.0% Exchange London Stock Exchange Price vs 52w high -48.4% Overview Market underperformer over the week. No corporate news of note ahead of results on 4 August. No broker notes. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current £0.3 b $0.05 $0.02 £2.4 b $0.13 $0.05 1 month change -65.4% -6.1% -5.9% 0.4% -11.0% -2.2% Upcoming Events 04/08/20 Q2 Results 27/10/20 Q3 Results

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3 August 2020

Company Diageo (DGE) DGE Performance Listed ETPs 3x Long Diageo Daily ETP (3LDO) 1 week 0.2% 3x Short Diageo Daily ETP (3SDO) 1 month 3.9% YTD -11.7% Exchange London Stock Exchange Price vs 52w high -22.9% Overview Market outperformer over the week. No corporate news of note ahead of results on 4 August, Diageo North America has been recognised by Fast Company’s Best 50 Workplaces for Innovators. No broker notes. Chart with moving averages and RSI indicator

Consensus forecasts 6/30/2020 6/30/2021 Net Income EPS DPS Net Income EPS DPS Current £2.5 b $1.09 $0.67 £2.8 b $1.19 $0.70 1 month change -0.6% -1.4% -1.3% 0.0% -1.7% -1.9%

Upcoming Events 04/08/20 Preliminary results 13/08/20 XD, Final Dividend 01/10/20 AGM

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3 August 2020

Company Glencore (GLEN) GLEN Performance Listed ETPs 3x Long Glencore Daily ETP (3LGL) 1 week -4.5% 3x Short Glencore Daily ETP (3SGL) 1 month 4.3% YTD -25.8% Exchange London Stock Exchange Price vs 52w high -33.9% Overview Market underperformer over the week. It released its half year 2020 production report. Not unexpectedly, marketing performance in 1H 20 was very strong, resulting in full year EBIT expectations being raised to the top end of Glencore’s long-term $2.2-$3.2 billion range. The ‘sizeable increase’ in carried inventory, so called “Carry Trades”, was identified as a contributor to the EBIT performance. In terms of full year guidance for production, only those for nickel and coal have been reduced for the full year. No broker notes.

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Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current $0.8 b $0.06 $0.07 $2.1 b $0.15 $0.11 1 month change 28.2% 12.0% -1.4% 16.1% 11.9% -3.4%

Upcoming Events 06/08/20 Half Year Results 30/10/20 Q3 Production Report

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3 August 2020

Company Lloyds Banking Group (LLOY) LLOY Performance Listed ETPs 3x Long Lloyds Banking Group Daily ETP (3LLL) 1 week -11.5% 3x Short Lloyds Banking Group Daily ETP (3SLL) 1 month -14.4% YTD -57.9% Exchange London Stock Exchange Price vs 52w high -62.4% Overview Market underperformer over the week as its results reflected the fragile state of the UK economy. It announced 1H 2020 results, which included an impairment charge of £3.8 billion, including £2.4 billion in the second quarter primarily reflecting, like Barclays, a significant deterioration in forward looking economic outlook. It reported net income of £7.4 billion, down 16 per cent, loss of 0.3p per share compared to EPS of 2.7p in HY 19, and net interest margin of 2.59% compared to 2.90% in HY19. Its Common Equity Tier-1 ratio increased to 14.6%, up 81bp relative to 31 December 2019. Guidance included an indication that net interest margin is expected to remain broadly stable on the 2Q level at c.240 bps for the rest of the year resulting in a full year margin of c.250 bps, operating costs to be below £7.6 billion, impairment expected to be between £4.5 billion and £5.5 billion. Berenberg maintained ‘hold’ rating, cut price target to 30p from 35p.

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Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current £0.6 b $0.01 $0.01 £2.8 b $0.04 $0.02 1 month change -60.4% -26.3% -11.1% -1.6% -7.3% -9.5% Upcoming Events 30/10/20 Q3 Interim Management Statement

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3 August 2020

Company Rio Tinto (RIO) RIO Performance Listed ETPs 3x Long Rio Tinto Daily ETP (3LRI) 1 week -2.8% 3x Short Rio Tinto Daily ETP (3SRI) 1 month 3.8% YTD 7.3% Exchange London Stock Exchange Price vs 52w high -7.5% Overview Market outperformer over the week as it announced 1H 2020 results that included an increase in the interim dividend to 1.55 cents versus 1.51 cents HY19. Some highlights: underlying EBITDA of $9.6 billion, with a margin of 47%; $5.6 billion operating cash flow, 12% lower than HY19; $2.8 billion free cash flow, 28% lower than HY19; EPS 205.0 cents versus 252.5 cents HY19; $4.8 billion of net debt, an increase of $1.2 billion. It confirmed its 2020 production guidance across all commodities. Capital expenditure is expected to be around $6 billion in 2020 and around $7 billion in both 2021 and 2022, consistent with a three-year spend of $20 billion in guidance given in October 2019. JP Morgan Cazenove maintained its ‘neutral’ rating, raised price target to 5590p from 5500p, Deutsche Bank maintained its ‘buy’ rating, raised price target to 5000p from 4900p.

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Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current $9.0 b $5.71 $3.57 $7.9 b $4.96 $3.24 1 month change 7.3% 7.1% 0.4% 5.8% 6.3% 7.6%

Upcoming Events 16/10/20 Q3 Operations Review

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3 August 2020

Company Rolls-Royce Holdings (RR.) RR. Performance Listed ETPs 3x Long Rolls-Royce Daily ETP (3LRR) 1 week -13.6% 3x Short Rolls-Royce Daily ETP (3SRR) 1 month -18.9% YTD -66.1% Exchange London Stock Exchange Price vs 52w high -72.9% Overview Market underperformer over the week. Boom Supersonic and Rolls-Royce announced an engagement agreement to explore the pairing of a Rolls-Royce propulsion system with Boom’s flagship supersonic passenger aircraft, Overture. Jefferies International maintained its ‘buy’ rating, cut price target to 500p from 700p, Goldman Sachs maintained its ‘buy’ rating, cut price target to 509p from 528p. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current -£0.2 b -$0.19 $0.02 £0.2 b $0.07 $0.04 1 month change 366.0% 272.0% -63.0% -26.4% -34.0% -43.7%

Upcoming Events 27/08/20 Half Year Results

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3 August 2020

Company Royal Dutch Shell A (RDSA) RDSA Performance Listed ETPs 3x Long Royal Dutch Shell Daily ETP (3LRD) 1 week -9.7% 3x Short Royal Dutch Shell Daily ETP (3SRD) 1 month -14.0% YTD -48.4% Exchange London Stock Exchange Price vs 52w high -54.0% Overview Market underperformer over the week. It announced 2Q 2020 results. Some highlights: cash flow from operations excluding working capital of $6.5 billion, free cash flow $0.2 billion; interim dividend $0.16; cash capex reduced by $1.4 billion compared with 1Q20; adjusted earnings $0.6 billion, representing EPS of $0.08 versus $0.43 in 2Q19; impairments of $16.8 billion post-tax, net debt $77.8bn vs $74.4bn (1Q20); on track to reduce cash capital expenditure to below $20 billion in 2020, e.g. Lake Charles LNG and refining growth projects stopped. In what is a tough environment for the business, Ben van Beurden, CEO, commented, “We are focusing on our ability to reduce spend and make choices, minimising the impact on our growth funnel and future cash flows. We are keeping the growth in the Leading Transition themes and balancing our capital spend with Upstream and we continue to invest in Power.” Credit Suisse maintained ‘outperform’ rating, cut price target to 1600p from 1700p.

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Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS DPS Net Income EPS DPS Current $3.5 b $0.48 $0.70 $8.9 b $1.23 $0.69 1 month change 5.4% 17.4% 2.6% -0.5% 4.5% -0.1%

Upcoming Events 29/10/20 Q3 Results

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3 August 2020

Company Vodafone (VOD) VOD Performance Listed ETPs 3x Long Vodafone Daily ETP (3LVO) 1 week -5.4% 3x Short Vodafone Shell Daily ETP (3SVO) 1 month -9.6% YTD -18.9% Exchange London Stock Exchange Price vs 52w high -31.8% Overview Market underperformer over the week. No corporate news of note, there was reported criticism from UK investors about the decision to list Vantage Towers in Frankfurt rather than on London Stock Exchange. No broker notes. Chart with moving averages and RSI indicator

Consensus forecasts 3/31/2021 3/31/2022 Net Income EPS DPS Net Income EPS DPS Current £1.9 b $0.06 $0.09 £2.6 b $0.08 $0.09 1 month change -8.6% -4.7% -1.1% 1.8% -6.7% 0.0%

Upcoming Events 28/07/20 AGM 2020

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3 August 2020

U.S. Tech Leaders

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3 August 2020

Company Alphabet (GOOGL) GOOGL Performance Listed ETPs 3x Long Alphabet Daily ETP (3LAL) 1 week -1.3% 3x Short Alphabet Daily ETP (3SAL) 1 month 3.2% YTD 11.1% Exchange London Stock Exchange Price vs 52w high -6.2% Overview Market underperformer over the week. It announced 2Q 2020 results. Highlights include revenue of $38.3 billion, a fall of 2% from 2Q 19, drop in net income to $6,959 million from $9,947 million, resulting in EPS of $10.21 versus $14.33 in 2Q19. Google advertising revenues fell to $29. 9 billion from $32.5 billion and Google Cloud increased revenues to $3.0 billion from $2.1 billion. Cash and cash equivalents stood at $17.7 billion versus $16.6 billion in 2Q19. It reported free cash flow of $8,602 million. Commenting on the results, and in the context of the ecommerce battleground, Sundar Pichai, said, “One area where we have executed really well to improve the user and merchant experience in the last year is shopping. We know that we and merchants face incredible competition for consumer attention and wallets. We are helping merchants lower their costs and improve their reach in a few ways”, which include free listings on the Google Shopping tab and on Search, plus the removal of the commission fee on Buy on Google. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS CFPS Net Income EPS CFPS Current $36.4 b $51.34 $59.34 $45.9 b $64.73 $76.12 1 month change -3.7% -2.3% 4.1% -5.2% -3.8% 1.5% Upcoming Events October 20 Q3 2020 Earnings

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3 August 2020

Company Amazon.com (AMZN) AMZN Performance Listed ETPs 3x Long Amazon Daily ETP (3LZN) 1 week 5.2% 3x Short Amazon Daily ETP (3SZN) 1 month 9.9% YTD 71.3% Exchange London Stock Exchange Price vs 52w high -5.4% Overview Market outperformer over the week as it announced 2Q 2020 results that beat expectations. Highlights include sales of $88.9 billion versus $63.4 billion in 2Q 19, with net income of $5.2 billion versus $2.6 billion, resulting in EPS of $10.50 versus $5.32 in 2Q19. Year-on-year, North America sales grew by 43%, international by 38% and Amazon Web Services by 29%, North America accounting for 62% of sales and AWS 12%. Cash and cash equivalents stood at $37.5 billion versus $36.1 billion in 2Q19. It reported free cash flow of $31.9 billion for the trailing 12 months versus $25.0 billion a year ago. In terms of 3Q20 guidance, it indicated that net sales are expected to be between $87.0 billion and $93.0 billion, or to grow between 24% and 33% compared with third quarter 2019. Jeff Bezos, CEO, comments on the resulted included, “Third-party sales again grew faster this quarter than Amazon’s first-party sales. Lastly, even in this unpredictable time, we injected significant money into the economy this quarter, investing over $9 billion in capital projects, including fulfilment, transportation, and AWS.” Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS CFPS Net Income EPS CFPS Current $21.9 b $44.76 $97.27 $29.7 b $58.30 $125.17 1 month change 39.8% 29.2% 9.7% 15.0% 9.1% 5.8% Upcoming Events October 20 Q3 2020 Earnings

GRANITESHARES Limited GRANITESHARES.COM 71-91 Aldwych, Aldwych House, London WC2B 4HN [email protected] 18

3 August 2020

Company Apple (AAPL) AAPL Performance Listed ETPs 3x Long Apple Daily ETP (3LAP) 1 week 14.7% 3x Short Apple Daily ETP (3SAP) 1 month 16.7% YTD 45.5% Exchange London Stock Exchange Price vs 52w high -0.1% Overview Market outperformer over the week a it announced 3Q 2020 results that beat expectations. Highlights include quarterly revenue of $59.7 billion, an increase of 11% from 2Q 19. EPS grew by 18 percent to $2.61 versus $2.20 in 3Q19, and it generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics. At a product level compared to 3Q19, iPhone revenue grew 2% to $26.4 billion, iPad’s grew 31% to $6.6 billion, Mac’s grew 22% to $7.1 billion, Services’ grew 15% to $13.2 billion. Cash, cash equivalents and restricted cash fell to $35,039 million versus $52,151 million in 3Q19. It also announced a 4-for-1 stock split, record date 24 August. Chart with moving averages and RSI indicator

Consensus forecasts 9/28/2020 9/28/2021 Net Income EPS CFPS Net Income EPS CFPS Current $56.8 b $12.96 $16.24 $64.0 b $15.42 $18.40 1 month change 3.3% 4.3% 4.0% 2.5% 3.9% 4.5%

Upcoming Events October 20 Q4 2020 Earnings

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3 August 2020

Company Facebook (FB) FB Performance Listed ETPs 3x Long Facebook Daily TP (3LBP) 1 week 10.0% 3x Short Facebook Daily ETP (3SBP) 1 month 6.8% YTD 23.6% Exchange London Stock Exchange Price vs 52w high -0.9% Overview Market outperformer over the week as it announced 2Q 2020 results that beat expecations. Highlights include second-quarter net income of $5,178 million versus $2,616 million in 2Q19, representing diluted earnings per share of $1.80 versus $0.91 in 2Q19, significantly ahead of analyst expectations. The company saw 10% growth in advertising revenues which helped push total revenues up to $18,687 million versus $16,866 million in 2Q19. The company saw increased engagement across its different metrics including daily active and monthly active users. Commenting on the earnings, Mark Zuckerberg said, “We're glad to be able to provide small businesses the tools they need to grow and be successful online during these challenging times.” On the earnings call, Zuckerberg highlighted products and services being developed for small businesses and commerce: Shops, Facebook Pay, and messenging commerce. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS CFPS Net Income EPS CFPS Current $26.3 b $8.77 $10.77 $33.0 b $11.11 $13.57 1 month change 5.9% 5.7% 3.0% 4.3% 2.6% 2.8% Upcoming Events October 20 Q3 2020 Earnings

GRANITESHARES Limited GRANITESHARES.COM 71-91 Aldwych, Aldwych House, London WC2B 4HN [email protected] 20

3 August 2020

Company Microsoft (MSFT) MSFT Performance Listed ETPs 3x Long Microsoft Daily ETP (3LMS) 1 week 1.8% 3x Short Microsoft Daily ETP (3SMS) 1 month 0.2% YTD 30.7% Exchange London Stock Exchange Price vs 52w high -5.3% Overview Performed in line with the market over the week. It announced a partnership with Mastercard to accelerate Mastercard Labs’ cloud native research and development activities, enabled by Azure and AI, to advance Mastercard Labs’ mission to de-risk and commercialize emerging technologies and platforms for digital commerce. Chart with moving averages and RSI indicator

Consensus forecasts 6/30/2021 6/30/2022 Net Income EPS CFPS Net Income EPS CFPS Current $48.9 b $6.45 $8.53 $55.1 b $7.31 $9.33 1 month change 3.0% 3.6% 1.3% 2.0% 2.5% 5.6% Upcoming Events 19/08/20 Dividend payment, 0.51 cents October 20 Q1 2021 Earnings

GRANITESHARES Limited GRANITESHARES.COM 71-91 Aldwych, Aldwych House, London WC2B 4HN [email protected] 21

3 August 2020

Company Netflix (NFLX) NFLX Performance Listed ETPs 3x Long Netflix Daily ETP (3LNF) 1 week 1.8% 3x Short Netflix Daily ETP (3SNF) 1 month 0.7% YTD 51.1% Exchange London Stock Exchange Price vs 52w high -15.0% Overview Performed in line with market over the week. No corporate news of note, Bloomberg reported that it had received the most Emmy nominations of any network. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS CFPS Net Income EPS CFPS Current $3.1 b $6.62 $0.93 $4.5 b $9.46 -$2.19 1 month change -4.3% -3.2% -183.3% 1.8% 3.4% -14.9%

Upcoming Events October 20 Q3 2020 Earnings

GRANITESHARES Limited GRANITESHARES.COM 71-91 Aldwych, Aldwych House, London WC2B 4HN [email protected] 22

3 August 2020

Company NVIDIA (NVDA) NVDA Performance Listed ETPs 3x Long NVIDIA Daily ETP (3LNV) 1 week 4.1% 3x Short NVIDIA Daily ETP (3SNV) 1 month 11.4% YTD 80.6% Exchange London Stock Exchange Price vs 52w high -1.6% Overview Market outperformer over the week. It announced it would release its financial results for the second quarter of fiscal year 2021 on 19 August. Bloomberg reported on Friday that NVIDIA was now in advanced talks about acquiring Arm Ltd, which is currently owned by SoftBank, a move that would probably trigger regulatory scrutiny. Chart with moving averages and RSI indicator

Consensus forecasts 1/26/2021 1/26/2022 Net Income EPS CFPS Net Income EPS CFPS Current $5.1 b $8.22 $9.59 $6.1 b $9.95 $10.76 1 month change 0.3% 0.4% 1.3% 0.3% 0.0% 1.2%

Upcoming Events 19/08/20 Q2 2021 Earnings

GRANITESHARES Limited GRANITESHARES.COM 71-91 Aldwych, Aldwych House, London WC2B 4HN [email protected] 23

3 August 2020

Company Tesla (TSLA) TSLA Performance Listed ETPs 3x Long Tesla Daily ETP (3LTS) 1 week 1.0% 3x Short Tesla Daily ETP (3STS) 1 month 27.8% YTD 242.0% Exchange London Stock Exchange Price vs 52w high -20.3% Overview Market underperformer over the week. Reuters reported that Panasonic plans to boost the energy density of “2170” battery cells it supplies to Tesla by 20% in five years and commercialise a cobalt-free version in two to three years. Meanwhile, the chatter goes on about implications of its possible inclusion in the S&P 500. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS CFPS Net Income EPS CFPS Current $1.5 b $7.76 $24.73 $2.9 b $14.48 $37.05 1 month change 114.3% 98.1% 80.9% 30.6% 23.1% 19.3%

Upcoming Events October 20 Q3 Earnings

GRANITESHARES Limited GRANITESHARES.COM 71-91 Aldwych, Aldwych House, London WC2B 4HN [email protected] 24

3 August 2020

Company Uber Technologies (UBER) UBER Performance Listed ETPs 3x Long Uber Daily ETP (3LUB) 1 week -3.0% 3x Short Uber Daily ETP (3SUB) 1 month -0.6% YTD 1.7% Exchange London Stock Exchange Price vs 52w high -29.6% Overview Market underperformer over the week ahead of its earnings figures on 6 August. Reuters reported that Uber had halted a planned move of its Asia headquarters to Hong Kong and would stay in Singapore at least until December 2022. Chart with moving averages and RSI indicator

Consensus forecasts 12/31/2020 12/31/2021 Net Income EPS CFPS Net Income EPS CFPS Current -$5.4 b -$3.34 -$2.47 -$2.2 b -$1.48 -$0.77 1 month change 6.7% -1.7% -0.8% 23.7% -3.1% 3.4%

Upcoming Events 06/08/20 Q2 2021 Earnings November 20 Q3 2021 Earnings

GRANITESHARES Limited GRANITESHARES.COM 71-91 Aldwych, Aldwych House, London WC2B 4HN [email protected] 25

3 August 2020

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General Notice For professional clients and eligible counterparties only. GraniteShares Limited (“GraniteShares”) is an appointed representative of Duff & Phelps Securities Ltd. which is authorised and regulated by the Financial Conduct Authority. This document does not constitute an offer to buy or sell or a solicitation of an offer to buy securities in any company. This document is not intended for distribution to any other country where such distribution or use would be contrary to local law or regulation. Specifically, this document is not intended for general distribution in the United States or Canada. Investing in financial markets involves a substantial degree of risk. Nothing described herein is intended to imply that an investment is “safe”, “conservative”, “risk free” or “risk averse”. This document does not consider the specific investment objective, financial situation or particular needs of any potential investor and is intended only for those investors who are capable of understanding the risk of loss of all or a substantial part of their monies. Potential investors in the UK are reminded that they will not benefit from the UK investors compensation scheme. Nothing contained herein constitutes investment, legal, tax or other advice nor is to be relied upon in making an investment or other decision. No recommendation is made positive or otherwise, regarding individual securities or investments mentioned herein. Any summary list of risk factors does not purport to be a complete enumeration or explanation of the risks involved in an investment in short and leveraged products. Prospective clients must consult with their own legal, tax and financial advisers before deciding to invest. This document contains the opinions of the author and such opinions are subject to change without notice. The source of data is GraniteShares unless otherwise stated. No guarantee is made to the accuracy of the information provided which has been obtained from sources believed to be reliable. This document and the information contained herein is intended only for the use of persons (or entities they represent) to whom it has been provided. Risk Factors An investment in a GraniteShares short and leveraged exchange traded product (“ETP”) may not be suitable for all investors. They are intended for investors who wish to take a very short term view on the underlying asset and are not intended as buy and hold investments. Performance and capital loss: Past performance is not a reliable indicator of future results. The value of an investment may go down as well as up and can result in losses, up to and including a total loss of the amount initially invested. Generic risks: Investments in ETPs involve numerous risks including, among others, company risks, general market risks, credit risks, foreign exchange risks, interest rate risks, geopolitical risks and liquidity risks. Specific product risks: The Index is constructed to track the performance of an increased (leveraged) and/or short exposure to the underlying asset. A fall (or rise where short and leveraged exposure) in value of the underlying asset can result in a greater reduction in the level of the Index. The Index is designed to do this on a daily basis only which should not be equated with seeking a leveraged position for periods longer than a day. The ETP’s performance over periods longer than one day will not be correlated or symmetrical with the returns of the underlying asset. Potential investors should refer to the section entitled “Risk Factors” and “Economic Overview of the ETP Securities” in the Prospectus relating to the GraniteShares ETPs for further details of these and other risks associated with an investment in short and leveraged ETPs and consult their financial advisers as needed. Counterparty risk: An investment in a GraniteShares short and leveraged ETP involves counterparty risk. GraniteShares Financial plc has entered into a Swap Agreement with a counterparty, Natixis, that is backed with collateral. Failure of the counterparty to make payments may result in an investment in an ETP suffering a loss. Index Disclaimer The Index is created, calculated and published by Solactive AG. No financial instrument is sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index level at any time or in any other respect.

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