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This material has been produced by RBS sales and trading staff and should not be considered independent.
The Round Up
9 November 2009
Issue No. 214
The Round Up is a comprehensive daily note produced by the RBS Warrantsteam providing an overview of market movements along with quality ideas forwarrant traders and investors.
In today’s issue
Global Market Action
Scoreboard, commentary
Aussie Market Action
SPI Comment, Events & Dividends
DJS (DJSSZX) SFI Investment Buy
– Upgrade
QAN (QANKZJ) MINI Trading Buy
– Beneficiary of high AUD
QBE (QBESZX) SFI Investment Buy
– Investor Update
Round Up Corner RBS Monthly Market Review - October
Equities
Move Last % Move Range Volume
ASX 200+86.0 4594.0 +1.9%
+20 to +86 $4.8 bn(A)
SPI - yesterday+89.0 4601.0 +2.0%
+41 to +92 31,061(A)
Dow Jones+17.5 10023.4 +0.2%
-69 to +39 Low
S&P 500+2.7 1069.3 +0.3%
-7 to +5 Low
Nasdaq+7.1 2112.4 +0.3%
-17 to +12 Low
FTSE+17.1 5142.7 +0.3%
-48 to +33 Avg
Commodities
Move Last % Today % Past Month
Oil-WTI spot-2.277.4-2.8%+9.2% Gold Spot+4.8 1095.1 +0.4%
+5.1% 
Nickel (LME)-18.9784.0-2.4% -4.2%  Aluminium (LME)-0.785.2-0.8%+5.0% Copper (LME)-1.9293.4-0.6% 
+6.2% 
Zinc (LME)-2.197.4-2.1%+13.3% Silver-0.017.4-0.1%+0.2% Sugar-0.321.8-1.5% 
-6.8%  
 
 
Dual Listed Companies (DLC’s)
Move %Move Last AUD Terms Diff to Aus
NWS (US)0.04 0.00
+14.2 c
15.33
-8.1 c 
RIO (UK)43.00 0.01
+29.2 c
52.68
-1231.9 c 
BLT (BHP UK)3.50 0.00
+17.0 c
30.77
-663.5 c 
BXB (UK)5.00 0.01
+3.9 c
7.04
+1.9 c
American Depository Receipts (ADR’s)
Move %Move Last AUD Terms Diff to Aus
BHP (US)0.13 0.00
+68.0 c
36.81
-58.9 c 
AWC (US)0.12 0.02
+5.8 c
1.58
-2.1 c 
TLS (US)0.11 0.01
+14.6 c
3.17
-3.2 c 
ANZ (US)-0.29 -0.01
+20.4 c
22.11
-29.0 c 
WBC (US)2.23 0.02
+121.6 c
26.35
-19.5 c 
NAB (US)0.45 0.02
+26.2 c
28.38
-36.7 c 
LGL (US)0.79 0.03
+30.8 c
3.34
+2.7 c
RMD (US)-2.62 -0.05
+47.4 c
5.14
-41.2 c 
JHX (US)0.31 0.01
+33.0 c
7.15
-2.8 c 
PDN (CAN)-0.05 -0.01
+4.0 c
4.02
-9.0 c 
Overnight Commentary
United States Commentary
 
Despite a less than ideal set of economic numbers, particularly with respect to employment, care of Travellers and GE, the Dowmanaged a 17pt gain. Elsewhere, the S&P and Nasdaq both finished 0.3% higher.
Industrials
- GE up over 6% and the clear standout on the the Dow post broker upgrades to outperform and reports of progress inmgmts efforts to sell NBC Universal unit to Comcast.
Insurance
- Travellers up nearly 2.5%, just behind GE on the leaderboard and together with the aforementioned, accounted for all ofthe Dow's gains. Fridays move followed a broker upgrade to buy, citing the groups repurchase plan and strong balance sheet.
Unemployment
for October 10.2% vs 9.9% and up from 9.8% in the month prior. Non Farm Payrolls -190K vs -170K expected but animprovement on -263K last month. Wholesale Inventories -0.9% vs -1.0% and Consumer Credit -$14.8bln vs -$10.0bln expected.
Gaming
- IGT up nearly 9% on heavy turnover(S&P500's best) despite reporting a 4Q loss of 7cps vs an 18cps profit in the year prior.Upside surprise appears to have come from the outlook statement, mgmt claiming demand for slot machines and gaming systems hadstabilized.
United Kingdom & Europe Commentary
The FTSE rose 0.3% or 17pts, reversing early losses, as banks and miners helped. The FTSE Eurofirst 300 added 0.2%, the DAXeked out a gain of 0.1% and the CAC was flat.
UK Banks
- RBS, up 5.3%, led the sector higher after reporting better than expected 3Q numbers. Fellow part nationalised bankLloyds was up 2.2% after a broker upgrade, Barclays climbed 1.3%, Standard Chartered added 2.1% and index heavyweight HSBCrose 2.5%.
Euro Banks
- BNP was up 1.5% carrying on its good performance post strong numbers earlier in the week. SocGen added 2.1%,Deutsche Bank rose 0.35% and Commerzbank added 1.2% after disappointing earlier in the week.
Travel
- BA jumped 6.7% after strong 2Q results and a broker upgrade. Ryanair was up 0.7%, Air France-KLM added 1.2% andLufthansa ended 3% higher.
Eco
- British finance minister Alistair Darling said G20 policymakers are agreed that it is too early to pull the plug on economic life-support packages, as the global recovery is still fragile.
 
 
Commodiites Commentary
Miners
- BHP climbed 0.2% and Rio was up 1.5% amid talk that Australian Rio shareholders could vote down the iron ore JV. If the JVwas voted down BHP might have another shot at Rio. Antofagasta was up 1.6% after a broker upgrade, Anglo climbed 1.8%, Xstrataadded 0.8% and Vedanta ended 0.9% higher.
Energy
- Crude fell back and the initial reaction to the US data saw demand fears. BP was off 0.55%, Shell dropped 0.7%, BG Groupfell 1.6% but Tullow edged 0.2% higher. In Europe Total fell 0.3%, Statoil dropped 0.7% but Repsol was flat.
SPI Commentary
The SPI traded up 89pts or 1.97% to 4601. Open at 4567 with a low of 4554 and a high of 4604. Volume 29,188. Overnight the SPItrading up 4pts to 4605
SPI Intraday SPI Daily
 
*SPI report taken from the 9:50am open to the 4:30pm close on the previous trading day. Charts taken from IRESS 
Upcoming Economic Events for the Week
MondayAUS
RBA Gov Lowe speaks, ANZ job ads, investor home loans, owner occ housing finance
USTuesdayAUS
RBA’s Broadbent speaks, NAB business confidence, NAB business conditions
USWednesdayAUS
WMI consumer confidence
US
Veterans’ Day holiday
ThursdayAUS
Employment and unemployment
USFridayAUSUS
Trade balance, import prices, Michigan cons confidence
*Dates are indicative only and may change 
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