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This material has been produced by RBS sales and trading staff and should not be considered independent.
The Round Up
13 November 2009
Issue No. 217
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 RBS Model Portfolio – Recovery Bias
Equities
Move Last % Move Range Volume
ASX 200-9.14747.9-0.2% 
-9 to -9.u.c $3.8 bn(L)
SPI - yesterday-6.04762.0-0.1% 
-17 to +41 23,702(L)
Dow Jones-93.810197.5-0.9% 
-120 to +30 Low
S&P 500-11.31087.2-1.0% 
-14 to +3 Low
Nasdaq-17.92149.0-0.8% 
-21 to +12 Avg
FTSE+9.8 5276.5 +0.2%
-13 to +38 Avg
Commodities
Move Last % Today % Past Month
Oil-WTI spot-2.676.7-3.2%+4.7% Gold Spot-13.51103.9-1.2% 
+4.4% 
Nickel (LME)-29.8731.7-3.9% -14.0%  Aluminium (LME)-0.786.9-0.8%+0.2% Copper (LME)-1.6294.0-0.5% 
+3.5% 
Zinc (LME)-1.696.3-1.6%+2.7% Silver-0.417.2-2.0% -2.6%  Sugar-0.022.1-0.0% 
+4.9% 
 
 
Dual Listed Companies (DLC’s)
Move %Move Last AUD Terms Diff to Aus
NWS (US)-0.27 -0.02
+14.5 c
15.69
-9.7 c 
RIO (UK)-18.00 -0.01
+31.0 c
55.73
-1411.1 c 
BLT (BHP UK)-17.00 -0.01
+18.0 c
32.35
-720.0 c 
BXB (UK)1.25 0.00
+3.9 c
7.05
+6.1 c
American Depository Receipts (ADR’s)
Move %Move Last AUD Terms Diff to Aus
BHP (US)-1.03 -0.01
+71.6 c
38.79
-76.2 c 
AWC (US)-0.25 -0.04
+6.0 c
1.63
-3.6 c 
TLS (US)-0.07 0.00
+15.0 c
3.26
-2.0 c 
ANZ (US)-0.54 -0.03
+20.9 c
22.65
-28.9 c 
WBC (US)-3.81 -0.03
+118.9 c
25.77
-27.2 c 
NAB (US)-0.82 -0.03
+27.4 c
29.65
-42.8 c 
LGL (US)-1.00 -0.03
+31.0 c
3.36
-8.5 c 
RMD (US)0.05 0.00
+48.9 c
5.30
+4.4 c
JHX (US)1.00 0.03
+35.6 c
7.71
+2.6 c
PDN (CAN)-0.06 -0.01
+4.0 c
4.15
-8.3 c 
Overnight Commentary
United States Commentary
 
A drop in the crude price after a larger than expected jump in inventories had the energy plays under pressure and together with abreather from the financials, explained most of the days fall. Heading into the closing bell, the Dow off 102pts, the S&P 1.2% lower andthe Nasdaq down 0.9%.
Techs
- Cisco down 2.4% and one of the Dow's worst performers on news that Hewlett Packard plans to acquire 3Com, trumpingCisco's bid and in so doing, becoming the main supplier of networking and computer equipment.
Financials
- After a reasonably solid showing for most of the week, financials and in particular the banks, gave back some groundovernight. JP's down 2.4%,BofA down 2.1%, Capital One down 3.1%, Wells Fargo and Morgan Stanley both down 2%.
Oils
- Following the crude price lower, Chevron and Exxon both giving back around 1.5% and among the larger pt takers. Elsewhere,Baker Hughes down 4.6%(S&P100 worst), National Oilwell down 4%, Halliburton 3.5% lower and Devon Energy down 3%.
Eco
- Initial Jobless Claims marginally better than expected, 502K vs consensus at 510K. Continuing laims 5631K vs 5700K expectedand down from 5749K last week. Monthly Budget for October -$176.4b vs -$165bln expected and a further detoriation on Septembers -$155.5bln.
Industrials
- One of few highlights, Dow Chemicals nearly 7% higher and a clear standout on the S&P100. Gains followed mgmtflagging cost cutting and rising sales post the Rohh&Haas acquisition set to push earnings past consensus.
United Kingdom & Europe Commentary
The FTSE hit 3 week highs, up 0.2% or 10pts, as merger talk lifted sentiment but weakness in the US kept gains low. The FTSEEurofirst eked out a gain of 0.1% but the DAX fell 0.1% and the CAC was off 0.2%.
UK Banks
- The sector was generally higher with investors dropping their risk aversion. HSBC was up 0.9%, Lloyds rose 0.8%,Standard Chartered added 2%, Barclays climbed 0.3% but RBS was off 3%
Euro Banks
- Legislation to create an Irish 'Bad Bank' was passed overnight. Allied Irish Banks was off 2.3% whilst Bank of Ireland fell1.8%. Deutsche Bank was off 0.8%, Commerzbank fell 1.6%, BNP dropped 1.2% and SocGen ended down 1.6%.
Airlines
- BA jumped 7.5% after it confirmed it was in talks with Iberia which soared 11.8%. Ryanair added 0.5%, Air France-KLM wasup 3.4% and Lufthansa ended 1.6% higher.
 
 
Telco
- A better than expected 2Q result from BT lifted that stock 3.7%. The company raised its FY revenue and dividend outlook afterslashing costs in the period. Vodafone which reported strong 1H results on Tuesday was up 1.3% and Cable & Wireless climbed 1.4%.
Auto
- Peugeot jumped 7% at one stage before closing up 0.4% after saying it would break even in 2H. Renault added 2.4%, BMWclimbed 0.5% but VW sank 5.1%.
Commodiites Commentary
Miners
- A touch of strength in the US dollar saw metal prices drift down. BHP ended 1% lower, Rio dropped 0.6%, Vedanta fell 0.5%and Eurasian Natural Resources was off 2% after releasing 3Q production numbers and saying the outlook was still uncertain.
Energy
- The sector continued to follow the oil price lower with crude falling below $77 after a bigger than expected rise in USinventories. BP fell 0.9%, Shell dropped 0.8%, BG Group was off 1% and Tullow ended down 1.8%. In Europe Total fell 0.5%, Statoilwas off 0.7% but Repsol broke ranks again adding 0.2%.
SPI Commentary
The SPI traded down 6pts or 0.13% to 4762. Open at 4788 with a high of 4809 and a low of 4751. Volume 25,803. Overnight the SPItraded down 33pts to 4729
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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