From: Jeffrey Epstein <jeevacation@gmail.com>
Sent: Friday, March 15, 2013 5:32 PM
To: Barrett, Paul S
Subject: Re: Interesting angle on KRW and KRW autos.....

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On Fri, Mar 15, 2013 at 1:08 PM, Barre=t, Paul S <███████████████████████ <████████████████████████████>
> wrote:

2MM?=/p>

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=span style="font-size:8.0pt;font-family:"Verdana","sans-
s=rif";color:#5f5f5f">______________________________________________=__________________________________

=span style="font-size:8.0pt;font-family:"Verdana","sans-s=rif";color:#5f5f5f">Paul Barrett= | Managing Director
| Global Investment Opportunities Group | J.P. Morgan Private =ank |

320 Park Avenue, 14th Floor, New York, NY=10022 | T:  | F: 
<mailto: > | NMLS ID# 853441

<=p>

From: Jeffrey =pstein [mailto:=eevacation@gmail.com <mailto:jeevacation@gmail.com> ]
Sent: Friday, March 15, 2013 10:16 AM
To: Barrett, Paul S
Subject: Re: Interesting angle on KRW and KRW autos.....</=>

ok

On Fri, Mar 15, 2013 at 10:12 AM, Barrett, Paul S <mailto:  > wrote:

Jeffrey

Based on our view that the KRW will weaken given what is going on in Jap=n, we should consider a total return
swap to get long the Auto and Transpo=t sector (see what happened to Japanese auto names recently on the back
of=JPY weakness)

*** EVENT: Today's dovish Bank of Korea meeting, Korean Won br=aking 200d MA

Exhibit 1: Korean Won (red) vs. Korea’s Transport Eqmt Sector (white)<=>

=A0

*** Korean Won next currency to weaken: Buy Korean Autos / Transport Equ=pmt {FIFW KOSPTREQ Index GP
<GO>}. The sector is very liquid and tra=es USD 300m per day.

=A0          =A0

*** The second stage of the Yen devaluation could force other Asian coun=ries to weaken their own currencies
too. In 1994, regional central banks j=st 'watched' when China devalued their own currency - only to se= their export
competitiveness being challenged {FIFW CNY Curncy GP M <GO>}. This inactivity will likely not happen =gain.
=A0          =A0

*** Today, the KRW {FIFW KRW Curncy GP <GO>} broke the 1100 lev=l and USD / KRW trades above its 200-day
moving average - for the first time =ince July 2012. In our view, many market participants have not paid attent=on to this
- yet - but closer analysis of today's dovish BoK meeting might change this

*** Interestingly, inflation pressure has clearly eased. CPI {FIFW=KOCPIYOY Index GPC W <GO>} halved over the
last 12 months to just 1.=%. Compare this to the overnight call rate of 2.75%. {FIFW KOCPIYO= Index KOCRD Index GR
<GO>}. Based on Bank of Korea's dovish policy meeting an April rate cut (April 11) is =uite possible, in my view -
especially as it would increase the competitive vs. Yen weakness.=/u>

Exhibit 2: CPI in Korea (red) is far below Korea’s overnight call rate=(white) – rate cut possible

=A0          =A0          =A0          =A0

*** {FIFW KOSPTREQ Index WGT <GO>} for sector weights.</=>

=A0          =A0          =A0

The image shows "Regards," followed by two lines with the placeholder text "</=>". A horizontal line stretches across the bottom of the image, interrupted by an equals sign "=".

Paul Barrett I Managing Director I Global Investment Opportunities Group I J.P. Morgan Private Bank

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The information containe= in this communication is confidential, may be attorney-client privileg=d, may constitute inside information, and is intended only for the use of the a=dressee. It is the property of Jeffrey Epstein Unauthorized use, di=closure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you have received this communication in error, p=ease notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, =nd destroy this communication and all copies thereof, including all attachm=nts. copyright -all rights reserved