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

The Round Up

9 December 2009

Issue No. 235

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

NWS (NWSKZJ) MINI Trading Buy

USD rebound, more value in TV

BXB (BXBKZG) MINI Trading Buy

– Recovery Story

ASX (ASXKZI) MINI Trading Buy

– Strong November trading

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

Equities

Move Last % Move Range Volume

ASX 200-5.94670.6-0.1%

-6 to -6.u.c $2.5 bn(L)

SPI - yesterday-4.04669.0-0.1%

-16 to +31 21,488(L)

Dow Jones-104.110286.0-1.0%

-140 to -4

AvgS&P 500-11.31091.9-1.0%

-15 to -0

LowNasdaq-16.62173.0-0.8%

-29 to -2

LowFTSE-87.55223.1-1.6%

-104 to +13

High

Commodities

Move Last % Today % Past Month

Oil-WTI spot-1.3572.58-1.8% -6.3% Gold Spot-28.301129.80-2.4%+3.2% Nickel (LME)+6.71 728.79 +0.9%-7.0% Aluminium (LME)+0.17 96.51 +0.2% +13.3%Copper (LME)-1.07314.66-0.3%+7.2% Zinc (LME)+0.95 104.03 +0.9% +6.8%Silver-0.5617.63-3.1%+1.4% Sugar-0.2321.65-1.1% -0.9%

Dual Listed Companies (DLC’s)

Move %Move Last AUD Terms Diff to Aus

NWS (US)+0.05 +0.3% 14.57 16.10

-4.1 c

RIO (UK)-82.5 p -2.6%£30.87 55.59

-1631.2 c

BLT (BHP UK)-54.0 p -2.8%£18.565 33.43

-762.0 c

BXB (UK)-3.5 p -1.0%£3.450 6.21

-10.8 c

American Depository Receipts (ADR’s)

Move %Move Last AUD Terms Diff to Aus

BHP (US)-2.17 -2.9%72.70 40.17

-88.4 c

AWC (US)-0.24 -4.1%5.59 1.54

-3.6 c

TLS (US)-0.35 -2.2%15.35 3.39

-2.8 c

ANZ (US)-0.37 -1.8%19.70 21.77

-16.2 c

WBC (US)-1.95 -1.8%106.35 23.50

-34.7 c

NAB (US)-0.42 -1.7%24.95 27.57

-32.1 c

LGL (US)-1.12 -3.6%29.80 3.29

-6.7 c

RMD (US)-0.77 -1.5%51.48 5.69

-5.2 c

JHX (US)-0.47 -1.3%37.04 8.19

-4.4 c

PDN (CAN)-0.01 -0.3%3.90 4.06

-1.5 c

Overnight Commentary

United States Commentary

Jitters overnight night care of more sovereign debt worries, this time a reduction in Greece's debt rating doing most of thedamage. Lower from the opening bell, the Dow has managed a pop off lows, but is still 117pts in the red and with 45minsto trade, any influx of buying looks unlikely. The S&P down 1.1% and the Nasdaq down 0.7%.

Energy -

Chevron and Exxon among the bigger drags on the Dow. Strength from the dollar, subsequent weakness fromcrude and a general aversion to raw material names, has Chevron down 2.1%, Exxon trading 1.7% lower and togetherwith McDonalds, the Dow's biggest pt takers.

Consumers -

McDonalds trading 2.3% lower and the biggest pts drag on the Dow after November sales fell shy ofexpectations. Reporting their smallest monthly gain in global sales for 5 years, within that number, US sales contractingfor a 2nd month.

Financials -

With questions being asked globally around the health/security of sovereign debt, banks were the othercasualty. BofA down nearly 3% and the Dow worst performer, Citi down 4%, JP and Goldman's down around 1%.

Retail -

Kroger Co. down more than 11% and the S&P's worst performer after cutting FY forecasts and missing withnumbers. Excluding write-down's, 3Q earnings of 27cps compares with consensus at 36cps and mgmt now expect a FYnumber of $1.60-$1.70 vs the average estimate sitting at $1.94/share. Elsewhere and rounding out the S&P's bottom 3,Supervalue down 8% and Safeway 6.5% lower.

United Kingdom & Europe Commentary

TheFTSEfell1.7%or88ptsasconcernsofexposuretoDubaidebtsawthebanksweigh.AnunexpectedfallforGermanindustrialproductionandongoingconcernsaboutGreekdebthurtEuropeanbourses.TheFTSEEurofirst300wasoff1.6%,theDAXslumped1.7%andtheCACended1.4%lower.

UK Banks -

RBS,off7.7%,wastheworstontheFTSE100sinkingtoan8monthlowwiththebankbeingthelargestunderwritertoDubaiWorld.TherestofthesectorwasalsolowerwithHSBC2.5%lower,StandardCharteredslumped3.7%andBarclaysfell3.2%.

Euro Banks -

TheGreeknewsdidlittletohelpthesectorinEurope.Irishbanks,whichhavealsobeenunderpressureondebtissuesslumpedwhilstamongstthemajors,DeutscheBankfell2%,Commerzbankdropped1.8%,BNPsank1.6%andSocGenended1.2%lower.

Euro News -

FitchstrippedGreeceofitsAratingcuttingittoBBB+withanegativeoutlookcitingincreasinggovtdebtwiththeGreekPMstrugglingtoshoreupitsfinances.ConcernsarethatS&PandMoody'swouldfollowsuit.Itwasthefirsttimein10yearsthatoneofthethreeleadingratingsagencieshasloweredGreecebelowtheAgradecategory.

Eco -

GermanIndustrialproductionwasunexpectedlylowercominginat-1.8%vs+1expectedwhileBritishIndustrialandManufacturingproductionwerealsobothlowerthanexpected.

Retail -

Tescowasoff2.3%afterpostinglowerthanexpectedquarterlysales.ThesectorwasweakeronthebackofthenewswithSainsburydropping1.2%andMorrisonedging0.1%lower.NothelpingwerefiguresthatshowedRetailsalesvaluesroseattheirslowestannualpacelastmonthsinceAugustwithfoodinflationlow.

Commodites Commentary

Miners -

ThesectorwasweakerasinvestorsmovedoutofcyclicalswithastrongerUSdollaralsohurting.BHPwasoff2.8%,Riofell2.6%,Anglodropped3.2%andXstrataslumped3.5%aftersayingitwouldtakea$2bnchargeforrestructuringitsnickelbusinessandwouldwrite-downsomecopperassetstothetuneof$550mn.

SPI Commentary

The SPI traded up 6pts or 0.1% to 4669. Open at 4669 with a high of 4704 and a low of 4630. Volume 24,140. Overnight the SPItraded down 55 to 4615.

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

Aus ANZ job ads

USTuesdayAUS

Aus NAB business confidence, Aus current account balance

US consumer credit

WednesdayAUS

Aus trade balance, Aus housing finance