Market Update February 16th, 2017 Travis Liu, Abhi Gupta Executive Committee Members Market Update February 16th, 2017

Headlines Swiss Voters Reject Corporate Tax Overhaul Plan Voters rejected the plan to bring tax policies in line with international norms (Rejected by 59.1%) Would have kept corporate tax rates globally competitive and abolished special treatment for many multinational companies Important because the legal uncertainty of tax rates could have negative consequences on the investment activities of enterprises such as Nestle and Swatch Group Bitcoin Drops By $100 as China Central Bank Corrals the Market In January, PBoC began inspecting bitcoin exchanges for anti-money laundering systems PBoC prompted the three main Chinese bitcoin exchanges (BTCC, Houbi, and OKCoin) to disable bitcoin withdrawal for the next 30 days to improve their anti-money laundering systems Caused price of Bitcoin to drop from $1063 to $954 on Thursday Toshiba $6.3 Billion Nuclear Writedown, Chairman Resigns Unveiled a $6.3 billion writedown on its US nuclear business due to cost overruns and delays Shigenori Shiga, chairman of Toshiba, who led its US nuclear subsidiary Westinghouse, resigned Willing to sell its profitable memory-chip business and other assets to avoid being downgraded Stock is down over 18% in the past month, and just below 41% in the last three months

Company of the Week: Snapchat Inc. (NYSE: SNAP) IPO investor concerns SNAP is hoping for a $25 bn valuation and trying to raise $3 bn however investors are worried about slowing daily-user growth and ability to compete with Facebook Another rising concern for investors is the structure of the company, which puts a large majority of the company’s power in the hands of the original co-founders In initial paperwork, SNAP describes itself as a ”camera company” (hardware maker) and not a social media network, which came as a surprise to many SNAP starts 5 year streak with Amazon SNAP will use Amazon’s cloud services, which will cost $50 million for the first year of operations and will have incremental rises to $350 million by 2021 SNAP previously announced a $2 billion deal with Alphabet to use their cloud services, but this new deal with Amazon shows that SNAP wants diversity Many analysts believe that SNAP will however cut on or both of these deals early as cloud services account for 30% of their expenses and that SNAP has showed previous interest in developing their own cloud services to cut costs

Market of the week: U.S. Equities S&P 500 tallied its fourth straight week of gains (0.96%) after Trump vowed a major tax announcement in the next few weeks Jump in oil prices lifted energy and industrial shares This continues how the S&P 500 has surged 8.3% since Trump’s Nov. 8th election – fueled by expectations of lower corporate taxes, reduced regulations, and increased infrastructure spending

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