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This material has been produced by RBS sales and trading staff and should not be considered independent.
The Round Up
3 December 2009
Issue No. 231
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+43.4 4762.4 +0.9%
+43 to +43 $5.3 bn(A)
SPI - yesterday+38.0 4765.0 +0.8%
+35 to +79 27,890(A)
Dow Jones-19.410452.2-0.2% 
-50 to +42
AvgS&P 500+0.4 1109.2 +0.0%
-4 to +7
AvgNasdaq+9.2 2185.0 +0.4%
+2 to +23
AvgFTSE+15.2 5327.4 +0.3%
-29 to +36
High
Commodities
Move Last % Today % Past Month
Oil-WTI spot-1.6576.72-2.1% -2.1%  Gold Spot+18.90 1215.50 +1.6% +14.4%Nickel (LME)+2.13 736.19 +0.3%-9.9%  Aluminium (LME)+2.38 96.42 +2.5% +12.9%Copper (LME)+2.10 321.79 +0.7% +8.6%Zinc (LME)+2.55 108.80 +2.4% +10.6%Silver+0.12 19.22 +0.6% +16.9%Sugar+0.38 22.47 +1.7%-1.8% 
 
 
Dual Listed Companies (DLC’s)
Move %Move Last AUD Terms Diff to Aus
NWS (US)+0.02 +0.1% 13.97 15.09
+11.5 c
RIO (UK)+82.0 p +2.6% £32.92 59.18
-1435.6 c 
BLT (BHP UK)+19.0 p +1.0% £19.420 34.91
-700.7 c 
BXB (UK)-5.5 p -1.5%£3.643 6.55
-9.2 c 
American Depository Receipts (ADR’s)
Move %Move Last AUD Terms Diff to Aus
BHP (US)+0.53 +0.7% 77.78 42.02
+10.1 c
AWC (US)+0.03 +0.5% 5.88 1.59
+1.8 c
TLS (US)+0.07 +0.4% 16.06 3.47
-1.9 c 
ANZ (US)+0.01 +0.0% 20.50 22.15
+4.0 c
WBC (US)-0.87 -0.8%112.37 24.28
+1.3 c
NAB (US)-0.02 -0.1%26.53 28.67
-13.4 c 
LGL (US)+0.64 +1.9% 34.75 3.75
+2.5 c
RMD (US)+0.87 +1.7% 52.00 5.62
+8.9 c
JHX (US)+0.25 +0.7% 38.25 8.27
+2.6 c
PDN (CAN)-0.03 -0.7%4.03 4.14
-5.6 c 
Overnight Commentary
United States Commentary
 
Heading into the bell, the Dow off c30pts on the back of weaker financials, selling across the energy space andcomments from the Fed Beige Book that were good without being spectacular. S&P flat and the Nasdaq 0.3% higher.
Financials-
JP Morgan down 1.4%, one of the worst performers and larger pt takers on the Dow. Weakness followed abroker report suggesting a change in rules over derivatives could crimp earnings. That was enough to cast a shadow ofthe rest of the group, Morgan Stanley down 3%, Wells Fargo 2.2% lower.
Financials -
BofA trading down 2% (Dow's worst). With financials already under pressure, BofA was dealt an additionalblow by a WSJ article reporting that the 2 Chief Exec candidates said group should consider breaking itself up.
Eco -
ADP Employment Change -169K vs -150K expected and a relative improvement on -203K in October. The Fedwent for adjectives over superlatives with the Beige Book, saying the economy had expanded "modestly" on the back ofan uptick in consumer spending across most of the Fed districts. Labour and commercial property remain "weak".
Energy -
Following the oil price lower, heavyweight energy plays conspired with the financials to keep the Dow in the red.Chevron and Exxon down 0.7% and 0.5% respectively but together accounting for c20% of the days fall. Elsewhere,Devon Energy down 2%, Baker Hughes 1.8% and Halliburton 1.7% lower.
Resources -
Alcoa up over 5% and currently the Dow's best after a solid showing from Aluminium on the LME. The clearstandout in what was a mixed session for the resource stocks, now up 8% for the week so far.
United Kingdom & Europe Commentary
TheFTSEadded0.3%or15ptsasstrengthinminersoutweighedsomeweaknessinthebanks.InEuropeantradingdrugmakersoutweighedweaknessinbankswiththeFTSEEurofirstgaining0.5%,theCACwasalsoup0.5%andtheDAXekedoutagainof0.1%.
UK Banks -
AcautiousbrokernoteonthesectorandanothernotesayingthatanalystsnumbersforBarclaysweretoohighweighedonthebanks.RBSwasoff2.1%,Lloydsfell1.9%,StandardCharteredsank0.6%,HSBCwas0.5%lowerbutBarclaysrecoveredearlylossestobeup0.5%.
Euro Banks -
Abrokernotesayingtheywerestillunderweightfinancialsduetoregulatoryrisksawthebanksweaker.DeutscheBankwasoff1.4%,Commerzbankdropped2.9%,SocGenfell0.2%whileBNPandCSwereoff1.3%and2.1%respectivelyaftertheydowngradedEPSestimatesfollowinganinvestorday.
 
 
Commodites Commentary
Miners -
Thesectoragainhadanumberofstocksnearthetopoftheleaderboardwiththesectorfollowingmetalpriceshigher.BHPadded1%,Riowasup2.55%,Anglorose0.3%whileLonminwasthebestontheFTSE100up3.2%.
Energy -
Crudefellhoweverwiththeenergymajorsholdingbackthemarket.CairnEnergywastheworstontheFTSE100off2.6%,BPwasoff0.2%,Shelldropped0.4%,BGGroupwas0.75%lowerbutTullowwasup1.3%.InEuropeStatoiledged0.2%lower,Repsolwasalsooff0.2%butTotalwasup0.4%.
 
SPI Commentary
The SPI traded up 40pts or 0.8% to 4765. Open at 4725 with a high of 4806 and a low of 4725. Volume 26,926. Overnight the SPItraded up 2 to 4771.
 
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
US
Chicago PMI, Milwaukee NAPM, Dallas Fed Manufacturing
TuesdayAUS
AIG/PWC manufacturing PMI, Building approvals, Real public final demand, RBA cash rate decision
US
ISM, Construction spending, Pending home sales
WednesdayAUSUS
ADP employment report
ThursdayAUS
Nominal retail trade
US
Non farm productivity
FridayAUSUS
Non-farm payrolls, unemployment rate, average weekly hours, factory orders
*Dates are indicative only and may change 
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