Market Update September 14, 2017 Travis Liu, Jisoo Kim Executive Committee Members Market Update September 14, 2017

Headlines Chinese Government to Ban All Virtual Currency Trading China seeks to tighten foreign investment and decrease risk in its financial system Huge blow to Bitcoin as China was the top market for cryptocurrency trading Since announcement, Bitcoin has fallen more than 20% from above $4,600 to below $3,600 BTC China tweeted that it will stop all trading of bitcoin on September 30 Apple Unveils 3 New iPhones at Keynote First time Apple has released 3 iPhones at once - looking to generate buzz for the iPhone X, while still getting people to buy the upgraded iPhone 8 and iPhone 8 Plus New iPhone X design has raised hopes that Apple can reverse its fortunes in China Apple usually begins selling its iPhones in September; however, production glitches have delayed the release of the iPhone X until November 3 AT&T to Offer HBO Go to More Wireless Customers Move comes as rival T-Mobile partners with Netflix on select data plans In similar vein, Spotify recently partnered with Hulu in a promotion targeting college students as the company seeks to dominate rival Apple Music before going public AT&T promoting HBO content while still awaiting regulatory approval for its proposed $85bn takeover of HBO parent Time Warner https://www.wsj.com/articles/china-to-shut-bitcoin-exchanges-sources- 1505100862

Company of the Week: Equifax (NYSE: EFX) Hackers Gained Access to Equifax Systems Equifax, one of the three big credit-reporting firms in the U.S., maintains credit reports on more than 200mm U.S. adults The hack compromises the personal information of roughly 143mm adults Breach occurred between mid-May and July 2017, but company announced it this week More Dangerous Than A Typical Data Breach Hacked systems contained customer names, Social Security numbers, birthdates, and addresses - “nightmare scenario” because all 4 pieces of information in one place Will be easier for hackers to get approved for fraudulent credit cards and loans Smaller financial institutions such as community banks, credit unions, and online personal loan-lenders are more affected because they are more reliant on the 4 pieces of information Concern of Insider Trading Violations 3 top executives of Equifax, including the CFO, sold shares worth $1.8mm after the breach in early August (breach had not been made public at that time) Senate Finance Committee is determining when executives learned of the data breach https://www.wsj.com/articles/equifax-reports-data-breach-possibly-impacting-143-million-u-s-consumers-1504819765

Market of the Week: Oil W T I The EIA lowered its U.S. crude output forecast for the next year from an early August estimate of 9.91mm per day to 9.84mm per day due to damage from Hurricane Harvey OPEC reported output decline in August and optimism about global demand in 2017 and 2018, citing better than expected global economic growth IEA sees strongest global oil-demand growth in two years, increased estimate by 1.7% Saudi Arabia led talks to extend OPEC’s deal to cut 1.8mm barrels per day by at least three months past the March 2018 expiration date

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