Saxo Bank Releases "Outrageous Predictions" for 2010

COPENHAGEN, December 17 - Saxo Bank has today released its annual "Outrageous
Predictions", this year predicting devaluation of the CNY, the emergence of a
third political party in the US, a massive fall in the price of sugar, a
positive US trade balance for the first time since the 1975 oil crisis, and
that the US Social Security Trust Fund will go bust.

The Copenhagen-headquartered online trading and investment
specialist's ten predictions are an annual thought exercise to predict rare
but high impact 'black swan' events that are beyond the realm of normal
market expectations. The exercise aims to challenge market conceptions.
Compiled as part of the bank's 2010 Outlook, the claims this year paint a
picture of a more positive year ahead but with a few tremors along the way.

Saxo Bank's Outrageous Predictions for 2010:

1. Bunds yields will fall to 2.25%

Deflationary forces and excessive monetary policy will lower
the yield on Bunds and other sovereign fixed income when the government fixed
income traders refuse to buy into the "growth story" that is being told by
the stock market. We believe that the German 10-Year Government Bond could be
forced from 122.6 to 133.3 by the end of 2010 in a general flight to quality.

2. VIX will fall to 14

The markets are showing the same kind of complacency towards
risk as they were in 2005-06. Although the VIX has been trading lower since
October 2008, this could bring the VIX down from 22.32 to 14 as trading
ranges narrow and implied options volatility declines.

3. CNY (China Yuan Renminbi) will be devalued by 5% vs. USD

The efforts of Chinese authorities to stem the credit growth and avoid
bad loans, combined with the creation of several growth bubbles could
ultimately reveal the Chinese investment-driven growth as being deficient.
The massive, Chinese spare capacity and the economic backdrop could be a
deciding factor in devaluing the CNY vs. the USD.

4. Gold will fall to $870 in 2010 but will rise to $1500 in 2014

A general strengthening of the USD could break the back of the
recent speculative element in gold. Although we are long term bullish on gold
(believing it will reach $1500 within five years), this trade seems to have
become too easy and too widespread to pay out in the shorter term. A serious
correction towards the $870 level could shake out the speculative community
while keeping the metal in a longer term uptrend.

5. USDJPY to reach 110

Although the downturn in the USD is rooted in irresponsible
fiscal and monetary policies, we believe that the USD could snap back at some
point in 2010 because the USD carry trade has been too easy and too obvious
for too long. At the same time, the JPY is not reflecting economic reality in
Japan, which is struggling with a huge debt burden and ageing population.

6. Angry American public to form third party in the US

The anti-incumbent mood is approaching 1994 and 2006 levels as
a result of bail-outs and general disapproval of both the big parties. A
demand for real change among American voters could propel a third new party
to become a deciding factor in the 2010 elections.

7. The US Social Security Trust Fund will go bust

This is not so much an outrageous claim as an actuarial and
mathematical certainty. The outrageous part is that social security taxes and
contributions have been squandered for so long. 2010 will be the first year
where outlays for the non-existing trust fund will have to be part-financed
by the federal government's General Fund. I.e. the budget trick, in reality a
"fund" without funds, will be visible for the first time. Part of the social
security outlays will have to be financed by higher taxes, more borrowing or
more printing.

8. The price of sugar will drop one third

Despite a recent spike in prices caused by Indian drought and
above average rainfall in Brazil, the forward curve already indicates
considerable downside beyond 2011 so a return to more normal weather
conditions in 2010 would make sugar one of the less inspiring commodities.
Furthermore, the higher price of ethanol (which is correlated to the demand
for sugar) has made both Brazil and the US lower the ethanol content of
gasoline by five percentage points, consequently lowering the demand for
sugar.

9. TSE Small Index will rise by 50%

Small cap firms have been underperforming the Nikkei, but
their fundamentals indicate this is a "bargain index" compared with its
large-cap peer. With a price/book ratio of only 0.77 and only about 12% of
the index consisting of financials, we know no other index this cheap.
Positive GDP figures in 2010 could very well make this index a surprise to
the upside.

10. US trade balance will turn positive for first time in 34 years

Last time the US trade balance was positive was briefly in
1975 after a large drop in the USD following the aftermath of the oil crisis.
The USD has now become cheap enough again to stimulate US exports and punish
imports. The trade balance has already improved somewhat but change takes
time and once it has momentum we would not rule out a positive US trade
balance for one or more months of 2010.

David Karsboel, Chief Economist at Saxo Bank, comments:

"We believe that 2010 will be a year of reflation, but
structural headwinds lie ahead of us and could turn 2010 into a rollercoaster
ride.

"One of the most likely structural headwinds will be a shift
in investor focus towards slowing GDP and timing issues regarding the path of
FED tightening. This will bring risk aversion back into markets.

"Whilst our annual 'outrageous claims' should be seen as the
black swans of the market rather than outright predictions, we do believe
that the odds of these events happening are somewhat higher than what is
currently priced into the market", says David Karsboel.

About Saxo Bank

Saxo Bank is an online trading and investment specialist, enabling
clients to trade Forex, CFDs, Stocks, Futures, Options and other derivatives,
as well as providing portfolio management via SaxoWebTrader and SaxoTrader,
the leading online trading platforms. SaxoTrader is available directly
through Saxo Bank or through one of the Bank's global partners. White label
is a significant business area for Saxo Bank, and involves customised and
branding the Bank's online trading platform for other financial institutions
and brokers. Saxo Bank has more than 120 white label partners and boasts
thousands of clients in over 180 countries. Saxo Bank is headquartered in
Copenhagen with offices in Australia, China, the Czech Republic, France,
Greece, Italy, Japan, the Netherlands, Singapore, Spain, Switzerland, UK, and
the United Arab Emirates.

Media enquiries: Saxo Bank:, Simon Scott Hansen, PR Manager, +45-3977-6415, press at saxobank.com; David Karsboel, Chief Economist, +45-3977-4330, dka at saxobank.com