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

The Round Up

1 December 2009

Issue No. 229

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

UGL (UGLKZC) MINI Trading Buy

– Top sector pick

BXB (BXBKZG) MINI Trading Buy

– Recovery Story

TLS (TLSSZX) SFI Investment Buy –

Regulatory risk falling

Round Up Corner Banks Update – ANZ,CBA,NAB,WBC

Equities

Move Last % Move Range Volume

ASX 200+129.2 4701.3 +2.8%

+129 to +129

SPI - yesterday+99.0 4695.0 +2.2%

+28 to +124

Dow Jones+34.9 10344.8 +0.3%

-47 to +54

S&P 500+4.1 1095.6 +0.4%

-5 to +6

Nasdaq+6.2 2144.6 +0.3%

-18 to +8

FTSE-55.15190.7-1.0%

-55 to +25

Commodities

Move Last % Today % Past Month

Oil-WTI spot+1.10 77.15 +1.4%-0.1% Gold Spot+0.67 1178.30 +0.1% +12.8%Nickel (LME)+14.38 740.95 +2.0%-10.3% Aluminium (LME)+1.95 92.03 +2.2% +8.2%Copper (LME)+3.53 313.11 +1.1% +6.9%Zinc (LME)+4.18 103.99 +4.2% +7.4%Silver+0.13 18.43 +0.7% +13.2%Sugar-0.1322.07-0.6% -0.4%

Dual Listed Companies (DLC’s)

Move %Move Last AUD Terms Diff to Aus

NWS (US) unch unch13.69 14.95

-16.8 c

RIO (UK)-1.5 p -0.0%£30.88 55.48

-1618.4 c

BLT (BHP UK)-6.5 p -0.3%£18.575 33.37

-793.0 c

BXB (UK)-8.3 p -2.3%£3.510 6.31

-29.4 c

American Depository Receipts (ADR’s)

Move %Move Last AUD Terms Diff to Aus

BHP (US)+0.60 +0.8% 75.29 41.12

-18.5 c

AWC (US)-0.04 -0.7%5.62 1.53

-0.5 c

TLS (US)+0.13 +0.8% 15.53 3.39

-1.8 c

ANZ (US)+0.84 +4.3% 20.25 22.12

-3.3 c

WBC (US)+4.74 +4.5% 110.58 24.15

+1.5 c

NAB (US)+1.25 +5.0% 26.15 28.56

-6.0 c

LGL (US)+0.43 +1.3% 32.82 3.58

-1.5 c

RMD (US)-0.09 -0.2%50.31 5.49

-1.5 c

JHX (US)+0.93 +2.6% 36.97 8.08

-0.4 c

PDN (CAN) unch unch3.94 4.08

-4.5 c

Overnight Commentary

United States Commentary

US investors a little unsure what to make of the UAE's pledge to back Dubai banks. After a reasonable start, the Dowquickly gave back early gains, spent most of the session in and out of positive territory but heading into the last 20minshas seen some late buying. A night of better than expected economic data together with a push back into financials haskept bears at bay, the Dow up 40pts, the S&P 0.4% higher and the Nasdaq up 0.2%.Financials - A clear standout after the UAE's pledge to stand behind Dubai's banks and as a consequence, defaultspreads started to head back in the right direction. US Bancorp currently the S&P100's best up 3.4%, Regions not farbehind trading nearly 3% higher, GS and Morgan Stanley up 2% and on the Dow Amex top off of the list up 1.4%, BofA+0.9% and JP's trading 0.7% higher.Eco - Chicago PMI for November 56.1 vs 53.0 expected and up on October's 54. NAPM Milwaukee 57.0 in November up50.0 in the month prior. Dallas Fed Manufacturing Activity +0.3% vs consensus looking for a flat reading and a bigimprovement on last months 3.3% contraction.Steels - On an otherwise mixed night for cyclicals and resource stocks, steels were the standout, the sector up nearly 2%post a broker uprade.The report in question arguing steel prices in the US had bottomed , prompting a shift from neutralto attractive.

United Kingdom & Europe Commentary

European markets drifted off again last night with most indices off around 1% as investors come to terms with the fact theBritish banks are likely to feel the most impact by the repercussions of the Dubai's debt payment restructuring. Notsurprisingly the financials led the way lower.Financials - British Lenders including HSBC and Standard Chartered have about $50bn invested in the region. DubaiWorld has announced this morning that $26bn is the amount that is effected by the standstill request, however we haveseen this number change many times over the course of the last 3 days.Energy - BP , Europe's 2nd largest oil company and Italy's Eni SpA plan to produce the worlds first coal-bed methane forliquefaction as global demand expands. They have signed a production sharing contract with Indonesia. The suggestionsare that Indonesia may hold as much as 450 trillion cubic feet of gas.Currency - The pound fell against all 16 of their most traded currencies tracked by bloomberg last night after theconsumer confidence number showed a fall for the first time in 10 months. Expectations are for further reductions in GDPforecasts.

Commodites Commentary

Oil

.6%;Gold

+0.2

%,Nickel

+2.0

%,Aluminium

+2.2

%,Copper

.1%,Zinc

.2%,Silver+0.9%

SPI Commentary

The SPI traded up 115pts or 2.5% to 4696. Open at 4581 with a high of 4720 and a low of 44534. Volume 39,097. Overnight the SPItraded up 10 to 4706.

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

TDMI inflation gauge, HIA new home sales, RBA private sector credit, Wages bill, small business profits, companyprofits, real business sales, real business inventories

Chicago PMI, Milwaukee NAPM, Dallas Fed Manufacturing

TuesdayAUS

AIG/PWC manufacturing PMI, Building approvals, Real public final demand, RBA cash rate decision

ISM, Construction spending, Pending home sales

WednesdayAUSUS

ADP employment report

ThursdayAUS

Nominal retail trade

Non farm productivity

FridayAUSUS

Non-farm payrolls, unemployment rate, average weekly hours, factory orders

*Dates are indicative only and may change