1. The Global Economic Outlook Tim Quinlan, Economist April 14, 2010

2. Economics 2 OECD Industrial Production Following the worst recession in decades, the global economy is on the rebound Source: Organisation for Economic Cooperation and Development and Wells Fargo Securities, LLC

3. Economics 3 Economic Growth Is recent growth due entirely to stimulus? Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

4. Economics 4 U.S. Auto Sales “Cash for clunkers” gave a boost to auto sales Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

5. Economics 5 Residential Construction The first-time home buyer tax credit helped to boost residential construction Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

6. Economics 6 Retail Spending It would be a mistake, however, to say that there would have been no growth without stimulus Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

7. Economics 7 Capital Spending A rebound in capex appears to be underway Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

8. Economics 8 Real Exports and Imports Stronger growth in the rest of the world is lifting U.S. exports again Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

9. Economics 9 U.S. Business Inventories Inventories should boost growth over the next few quarters Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

10. Economics 10 Real GDP Forecast The worst for the U.S. economy is probably behind us Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

11. Economics 11 Real PCE Forecast Growth in consumer spending should remain sluggish for the foreseeable future Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

12. Economics 12 Consumer Balance Sheet The consumer sector remains rather leveraged Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

13. Economics 13 Net Worth The decline in household net worth over the past year or so has been unprecedented Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

14. Economics 14 Personal Saving Rate The personal saving rate probably will trend higher over the next few years Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

15. Economics 15 Employment It may be some time before payrolls begin to grow significantly Source: U.S. Department of Labor and Wells Fargo Securities, LLC

16. Economics 16 U.S. Economic Forecast Sluggish growth in consumer spending will probably lead to a sub-trend growth rate in real GDP Source: Wells Fargo Securities, LLC

17. Economics 17 OECD Industrial Production A synchronous global snapback represents an upside risk to the U.S. economy Source: Organisation for Economic Cooperation and Development and Wells Fargo Securities, LLC

18. Economics 18 Commercial Real Estate Write-downs related to commercial real estate represent a downside risk to the U.S. economic outlook Source: Moody’s and Wells Fargo Securities, LLC

19. Economics 19 Monetary Base Could the surge in monetary stimulus be inflationary? Source: Federal Reserve and Wells Fargo Securities, LLC

20. Economics 20 Bank Lending Credit growth is negative at present Source: Federal Reserve Board and Wells Fargo Securities, LLC

21. Economics 21 CPI Inflation The risk of deflation exceeds the risk of inflation over the next year or two Source: U.S. Department of Labor and Wells Fargo Securities, LLC

22. Economics 22 United Kingdom Economic Growth The U.K. economy is now about six percent smaller than it was at the peak in the first quarter of 2008 Source: IHS Global Insight and Wells Fargo Securities, LLC

23. Economics 23 United Kingdom Economic Growth Like their U.S. counterparts, households in the U.K. are fairly indebted Source: EuroStat, Federal Reserve, IHS Global Insight, Statistics Canada and Wells Fargo Securities, LLC

24. Economics 24 Euro-zone Economic Growth The Euro-zone economy is starting to grow Source: IHS Global Insight and Wells Fargo Securities, LLC

25. Economics 25 Euro-zone Household Liabilities Three countries are very highly geared—and Greece has had a dramatic rise Source: IHS Global Insight and Wells Fargo Securities, LLC

26. Economics 26 Government Debt in the Euro-zone Greece is not the only country in the Euro-zone where the government’s fiscal position is a bit precarious Source: Eurostat and Wells Fargo Securities, LLC

27. Economics 27 Chinese Economic Growth The Chinese economy is clearly strengthening Source: IHS Global Insight and Wells Fargo Securities, LLC

28. Economics 28 Korean Economic Growth The upturn in Asia is not confined to China alone Source: IHS Global Insight and Wells Fargo Securities, LLC

29. Economics 29 Chinese Lending Stimulative monetary policy in China has engendered a growth spurt in lending activity Source: CEIC and Wells Fargo Securities, LLC

30. Economics 30 Latin American Economic Growth Growth in many Latin countries has strengthened as well presently Source: IHS Global Insight and Wells Fargo Securities, LLC

31. Economics 31 Global Forecast Growth in global GDP will be negative for the first year in decades Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

32. Economics 32 Foreign Currency Forecast Stronger growth prospects in the United States than in many foreign economies should cause the dollar to strengthen in the near term Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

33. Economics 33  The credit crunch caused the U.S. economy to enter its deepest recession in decades. A gradual recovery seems to be taking hold, but business conditions likely will remain challenging for the next few years as consumers retrench.  Most major foreign economies also fell into deep recessions. However, growth seems to be returning abroad as well.  Commodity prices are up from the lows that were reached earlier this year. Prices of most commodities will probably continue to trend higher, but another moonshot in commodity prices, à la 2008, does not seem likely, at least not until global recovery is firmly established.  We project that the dollar will appreciate modestly over the next few quarters versus most major currencies as the U.S. economic recovery prompts foreign buying of higher yielding U.S. assets. “Commodity” and emerging market currencies may weaken a bit in the near term, but they likely will appreciate further on a trend basis as higher levels of risk tolerance causes capital to flow to those countries.  The Federal Reserve will likely maintain an accommodative stance until recovery is firmly established.  Central banks in most major foreign economies have also responded to the crisis by slashing rates. Policy rates in most major countries probably won’t be raised until well into 2010. Title GrowthInterest Rates Insert slide callout Summary of Near-Term Outlook Summary

34. Economics 34  diane.schumaker@wachovia.com diane.schumaker@wachovia.com Diane Schumaker-Krieg Global Head of Research & Economics Wells Fargo Securities, LLC Economics Group  john.silvia@wellsfargo.com john.silvia@wellsfargo.com John E. Silvia, Ph.D. Chief Economist  mark.vitner@wellsfargo.com mark.vitner@wellsfargo.com  U.S. Macro Economy  Real Estate  scott.a.anderson@wellsfargo.com scott.a.anderson@wellsfargo.com  U.S. Macro Economy  eugenio.j.aleman@wellsfargo.com eugenio.j.aleman@wellsfargo.com  U.S. Macro Economy  jay.bryson@wellsfargo.com jay.bryson@wellsfargo.com  Global Economies Mark Vitner Senior Economist Jay H. Bryson, Ph.D. Global Economist Scott Anderson, Ph.D. Senior Economist Eugenio Aleman, Ph.D. Senior Economist  ed.kashmarek@wellsfargo.com ed.kashmarek@wellsfargo.com  U.S. Macro Economy  kim.whelan@wellsfargo.com kim.whelan@wellsfargo.com  U.S. Macro Economy  Business Investment  yasmine.kamaruddin@wellsfargo.com yasmine.kamaruddin@wellsfargo.com  U.S. Macro Economy  tim.quinlan@wellsfargo.com tim.quinlan@wellsfargo.com  Global Economies  Business Investment Ed Kashmarek Economist Tim Quinlan Economist Kim Whelan Economic Analyst Yasmine Kamaruddin Economic Analyst  sam.bullard@wellsfargo.com sam.bullard@wellsfargo.com  U.S. Macro Economy  Financial Services  azhar.iqbal@wellsfargo.com azhar.iqbal@wellsfargo.com  Quantitative Macro- Economic Modeling  adam.york@wellsfargo.com adam.york@wellsfargo.com  U.S. Consumer  Real Estate  anika.khan@wellsfargo.com anika.khan@wellsfargo.com  Real Estate  Retail & Automotive Sam Bullard Economist Anika Khan Economist Azhar Iqbal Econometrician Adam G. York Economist Wells Fargo Securities Economics Group publications are produced by Wells Fargo Securities, LLC, a U.S broker-dealer registered with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Securities Investor Protection Corp. Wells Fargo Securities, LLC, distributes these publications directly and through subsidiaries including, but not limited to, Wells Fargo & Company, Wachovia Bank N.A., Wells Fargo Bank N.A, Wells Fargo Advisors, LLC, and Wells Fargo Securities International Limited. The information and opinions herein are for general information use only. Wells Fargo Securities, LLC does not guarantee their accuracy or completeness, nor does Wells Fargo Securities, LLC assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or as personalized investment advice. Wells Fargo Securities, LLC is a separate legal entity and distinct from affiliated banks and is a wholly owned subsidiary of Wells Fargo & Company © 2010 Wells Fargo Securities, LLC. SECURITIES: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE