1. Issuer of report: Disclosures & Disclaimer: This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it HSBC Securities (USA) Inc June 2016 Ryan Wang US Economist HSBC Securities (USA) Inc. ryan.wang@us.hsbc.com +1 212 525 3181

2. Global industrial production 2 Source: Federal Reserve, Netherlands Bureau for Economic Policy Analysis In this document HSBC may comment on the potential economic impact dependent on the outcome of the UK Referendum. HSBC is not taking a political position and this document and the information contained herein are not intended to promote or procure, or otherwise be in connection with promoting or procuring, a particular outcome in relation to the question asked in the UK Referendum.

3. US: Composition of GDP growth, 2015 versus 2014 3 Source: Bureau of Economic Analysis

4. US: Weakness in business investment holding back growth 4 Source: Bureau of Economic Analysis

5. US: New orders for capital equipment in a downtrend 5 Source: US Census Bureau

6. US: Housing activity continues to expand 6 Source: US Census Bureau

7. US: Government spending starting to support growth 7 Source: Bureau of Economic Analysis

8. US: Net exports have been a drag 8 Source: Bureau of Economic Analysis

9. US: Employment gains slowed in April and May 9 Source: Bureau of Labor Statistics

10. US: Weather “payback” after mild winter? 10 Source: National Oceanic and Atmospheric Administration

11. US: Decline in Fed’s labor market conditions index 11 Source: Bureau of Labor Statistics

12. US: Inflation remains below the FOMC’s target 12 Source: Bureau of Economic Analysis

13. US: Oil production and oil prices 13 Source for both charts: Energy Information Administration, Bloomberg

14. US: Core services prices are rising; core goods prices are not 14 Source: Bureau of Labor Statistics

15. US: Rents continue to rise 15 Source: Bureau of Labor Statistics

16. US: Some workers starting to see modest wage increases 16 Source: Bureau of Labor Statistics

17. US: Unusually weak productivity growth in this expansion 17 Source: Bureau of Labor Statistics

18. 18 Source: HSBC, Federal Reserve US: Projected path of FOMC rate hikes could be lowered in June

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21. 21