This material has been produced by RBS sales and trading staff and should not be considered independent.

The Round Up

12 November 2009

Issue No. 216

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

– Sales remain strong

NWS (NWSKZI) MINI Investment Buy

– Leverage to growth

QBE (QBESZX) SFI Investment Buy

– Investor Update

Round Up Corner NEW MINIs

Equities

Move Last % Move Range Volume

ASX 200+23.4 4757.0 +0.5%

+23 to +23 $5.5 bn(A)

SPI - yesterday+34.0 4768.0 +0.7%

+18 to +46 28,172(A)

Dow Jones+44.3 10291.3 +0.4%

-1 to +95 Avg

S&P 500+5.5 1098.5 +0.5%

+1 to +12 Low

Nasdaq+15.8 2166.9 +0.7%

+4 to +27 Avg

FTSE+36.2 5266.8 +0.7%

u.c to +71 Avg

Commodities

Move Last % Today % Past Month

Oil-WTI spot+0.2 79.3 +0.3% +10.5%Gold Spot+11.7 1117.5 +1.1%

+6.4%

Nickel (LME)+1.4 761.4 +0.2%-10.1% Aluminium (LME)+0.3 87.6 +0.3% +3.0%Copper (LME)+0.4 295.6 +0.1%

+4.8%

Zinc (LME)+1.0 97.9 +1.0% +7.2%Silver+0.2 17.5 +1.1%-0.9% Sugar+0.8 22.1 +3.7%

+6.9%

Dual Listed Companies (DLC’s)

Move %Move Last AUD Terms Diff to Aus

NWS (US)0.03 0.00

+14.7 c

15.79

-15.6 c

RIO (UK)75.00 0.02

+31.2 c

55.53

-1306.8 c

BLT (BHP UK)46.50 0.03

+18.2 c

32.35

-674.8 c

BXB (UK)0.25 0.00

+3.9 c

6.96

-5.6 c

American Depository Receipts (ADR’s)

Move %Move Last AUD Terms Diff to Aus

BHP (US)0.97 0.01

+72.6 c

39.04

-5.6 c

AWC (US)0.02 0.00

+6.2 c

1.67

-1.0 c

TLS (US)0.00 0.00

+15.1 c

3.25

-1.1 c

ANZ (US)0.27 0.01

+21.4 c

22.98

+2.6 c

WBC (US)0.29 0.00

+122.9 c

26.43

+14.7 c

NAB (US)0.20 0.01

+28.3 c

30.37

+10.3 c

LGL (US)0.35 0.01

+31.9 c

3.43

+2.4 c

RMD (US)-0.27 -0.01

+48.7 c

5.24

-1.3 c

JHX (US)0.52 0.02

+34.6 c

7.43

-1.9 c

PDN (CAN)-0.02 0.00

+4.1 c

4.22

-1.6 c

Overnight Commentary

United States Commentary

Another small and unconvincing bounce on the back of the China data. More good news from the Homebuilders and a handful of buytickets amongst the growth names, has the Dow up 42pts, the S&P +0.5%(13 month highs) and the Nasdaq up 0.7%.

Homebuilders

- Toll Brothers followed on from Beazer yesterday, up 15% and leading the builders after saying orders had surged andcancellations slowed. The news got behind the rest of the group, Pulte up 6%, Lennar and KB Home up 5% and Dr Horton 4.8%higher. The sector up 6.5% on solid t/o.

Usual Suspects

- Post yesterdays China data, US investors dipped their toe back into some of the growth names. Intel, Cisco,Dupont , Boeing and Home Depot all posting modest gains and together accounting for most of the days gains.

Financials

- Playing a supporting role to the very measured push into the growth space, financials continued to track higher. For the3rd consecutive session BofA vying for the Dow's top spot up over 2%, Wells, GS and BoNY also sitting on similar gains.

Fed

- Confirming what we already knew, Dallas President Richard Fisher said economic growth and inflation may persist below ideallevels into 2011, reterating the Fed accommodative stance on rates.

Retail

- Macy's down more than 8%(S&P's worst) after the 2nd largest department store chain in the US reported a 3Q loss andprovided FY guidance that fell short of market expectations.

United Kingdom & Europe Commentary

The FTSE closed just off 2009 intra day highs up 0.7% or 36pts with miners adding strength and positive eco news helping sentiment.The FTSE Eurofirst 300 was 0.4% higher, the DAX climbed 1% and the CAC was up 0.8%.

UK Banks

- HSBC up 0.9%, continued its move up after its 3Q update. Standard Chartered and Lloyds added 1.3% and 4.7%,respectively but Barclays fell 0.7% after its 3Q update the previous night and RBS finished down 1.7%.

Euro Banks

- A positive result from Credit Agricole, up 5.6%, lifted the sector with the bank reporting an improvement in net profitbetween second and unveiled a succession plan for when its CEO steps down next year. BNP was 1.6% higher, Deutsche Bank rose1.5% and UniCredit rose 0.4% after saying there had been a slowdown in the number of impaired loans and an improvement in thebalance sheet structure.

Eco

- The increase in the UK jobless claims came in at 12.9k vs 20 expected with the unemployment rate 7.8% vs 8% expected.Comments from the BoE also added weight with the Governor Mervyn King saying emergency action hasn't finished.

Retail

- Sainsbury rose 3.2% as the grocer posted a forecast-beating 19% rise in 1H profit and said it saw signs of a pick-up inspending. Rumours of another bid from Qatar Investment did the rounds again after they sold half their VW stake whilst peers Tescoand Morrison were both up 1%.

Commodiites Commentary

Miners

- Strong factory output from China gave the sector a boost. BHP added 2.6%, Rio rose 2.5%, Anglo was up 1.4%, Xstrataclimbed 2.7% with Randgold and Fresnillo soaring 6.1% and 5.9% respectively.

Energy

- Energy plays tracked crude higher. Shell was up 1.4%, BP added 0.7%, BG Group climbed 1.5% but Tullow fell 1.6%. InEurope Total rose 0.6%, Statoil added 1.35% and Repsol ended flat.

SPI Commentary

The SPI traded up 34pts or 0.72% to 4768. Open at 4755 with a low of 4753 and a high of 4780. Volume 23,167. Overnight the SPItrading up 20pts to 4788

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

Veterans’ Day holiday

ThursdayAUS

Employment and unemployment