UK equities post-referendum GTM –UK | 44 Trade-weighted GBP vs. FTSE 100 FTSE 100 vs. FTSE 250 valuations Index level Relative price-to-book value 1.4 FTSE 100 FTSE 250 1.2 expensive vs. FTSE 100 1.0 0.8 Average FTSE 100 0.6 expensive vs. FTSE 250 s 0.4 e '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 i t i u Earnings upgrades by region Eq % balance in analyst upgrades, net EPS upgrades 30 UK US Japan 15 Eurozone EM 0 -15 GBP trade weighted -30 (inverted) -45 -60 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Source: (Left) FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management. (Top right) FactSet, FTSE, J.P. Morgan Asset Management. (Bottom right) Thomson Reuters Datastream, J.P. Morgan Asset Management. Guide to the Markets - UK. Data as of 31 December 2016. 44