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

The Round Up

17 December 2009

Issue No. 241

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

QAN (QANKZK) MINI Trading Buy

– Aviation White Paper

ASX (ASXKZI) MINI Trading Buy

– Strong November trading

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

Equities

Move Last % Move Range Volume

ASX 200-11.64661.9-0.2%

-12 to -12.u.c $2.3 bn(L)

SPI - yesterday-10.04654.0-0.2%

-17 to +27 54,299(VH)

Dow Jones-10.910441.1-0.1%

-24 to +58

AvgS&P 500+1.3 1109.2 +0.1%

+ to +8

AvgNasdaq+5.9 2206.9 +0.3%

+2 to +19

AvgFTSE+34.5 5320.3 +0.7%

-2 to +50

Low

Commodities

Move Last % Today % Past Month

Oil-WTI spot+1.97 72.66 +2.8%-7.9% Gold Spot+12.80 1138.00 +1.1%-0.2% Nickel (LME)+22.59 790.80 +2.9% +4.1%Aluminium (LME)+1.91 101.59 +1.9% +12.2%Copper (LME)+6.48 317.38 +2.1% +2.4%Zinc (LME)+4.47 108.75 +4.3% +6.4%Silver+0.27 17.69 +1.6%-3.9% Sugar+1.12 25.37 +4.6% +12.2%

Dual Listed Companies (DLC’s)

Move %Move Last AUD Terms Diff to Aus

NWS (US)+0.27 +1.8% 15.56 17.27

+37.4 c

RIO (UK)+55.5 p +1.8% £31.87 57.78

-1302.3 c

BLT (BHP UK)+1.0 p +0.1% £19.025 34.49

-656.0 c

BXB (UK)-3.0 p -0.9%£3.435 6.23

-4.3 c

American Depository Receipts (ADR’s)

Move %Move Last AUD Terms Diff to Aus

BHP (US)+0.42 +0.6% 74.58 41.40

+34.7 c

AWC (US)+0.05 +0.8% 6.35 1.76

+2.2 c

TLS (US)+0.12 +0.8% 15.83 3.51

+1.5 c

ANZ (US)+0.02 +0.1% 19.23 21.35

-15.2 c

WBC (US)-1.14 -1.1%106.19 23.58

-2.3 c

NAB (US)-0.04 -0.2%24.96 27.71

-24.1 c

LGL (US)-0.01 -0.0%29.40 3.26

+3.4 c

RMD (US)-0.62 -1.2%52.20 5.79

-0.5 c

JHX (US)+0.09 +0.2% 36.19 8.04

+9.5 c

PDN (CAN)-0.11 -2.8%3.80 3.98

-0.5 c

Overnight Commentary

United States Commentary

AnotherinsipiddayoftradingacrosstheUS.SomeupsidesurprisefromBuildingPermitsandbuyingacrossthefinancials,morethanoffsetbyweaknessingrowthandtechnames.HeadinginthebelltheDowtrading19ptslower,theS&P+0.1%andtheNasdaqtrading0.2%higher.

Eco -

HeadlineCPIforNovemberinlineat+0.4%,ExFood&Energyunchangedvs+0.1%expected.CurrentAccountDeficitforthe3Q-$108.0blnvs-$107.5bln.HousingStartsforNovemberinlineat574Kbutupon529KinOctober,BuildingPermits584Kvsconsensusat570K.

Fed Minutes -

Althoughtherhetoricisgettingincrementallylessdovish,theFedonceagainreiteratedtheircommitmenttokeepingrates"exceptionallylow"foran"extendedperiod".Thatsaid,thereweresomeencouragingbullets,Householdspendingappearstobeexpandingandwhilstfarfromoutoftrouble,thedeteriorationinthelabourmarketis"abating.

Growth -

Fedbulletpointsfailedtoinspireanybuyingacrossthegrowthuniverse.EconomicbarometerswerethebiggestdragontheDow,ledlowerbyInteldown1.7%(theDow'sworstperformer),Boeingoff1.2%,3M1.1%lower.

Homebuilders -

OnthebackofthebetterthanexpectedPermitsnumber,USHomebuilderstradingaround5%higher.LeadingthewayKBHomeup6%,DRHorton5.1%higher,Lennarup4.5%,andPulteHomes4.4%higher.

Media -

Notforthefirsttimethisweek,Mediaplayswereafeatureinthepluscolumn.NewYorkTimesthepickofthegroupupnearly6%,Newscorpaddedafurther2.2%(S&P100'stop3)andWaltDisneyup1%andintheDow'stop10.

United Kingdom & Europe Commentary

TheFTSErose0.65%or34ptswithbankshigheronnewsofBaselreliefwithEuropeanboursesalsohelpedbyastrongservicessector.TheFTSEEurofirst300wasup1.25%,theDAXjumped1.6%andtheCACclimbed1.1%.

Finance -

EuropeanandBritishbanksfollowedtheleadofJapanesebanksonthenewsthatthelatestBaselrulesforstrengthenedcapitaladequacyrequirementscouldbedelayeduntilafter2020.AthirdandlastECBofferofunlimitedone-yearloansattractedthelowestnumberofbiddersyetandonly€100bnwasprovidedcomparedtothe€442bnallocatedinJune.

UK Banks -

HSBCwasup1%,Barclaysadded1.9%,StandardCharteredrose1%,Lloydsended0.4%higherbutRBSwasflat.

Euro Banks -

DeutscheBankjumped5.5%,Commerzbanksoared6.7%,BNPwasup2.6%aswasSocieteGenerale.BelgianfinancialgroupKBCwasup2.1%,DanskeBankjumped6.7%,INGadded5.9%andCreditAgricoleended1.7%higher.

Homebuilders -

AbrokernotesayingtobuyBarratt,TaylorWimpeyandRedrowsawthesectorstronger.ThenotesaidthatUKhomebuildingstocksweresetforasignificantrebound.OntheFTSE100Libertyadded4.4%andHammersonadded2.6%whilstontheFTSE350Redrowjumped6.9%,Barrattwasup6%andTaylorWimpeyrose4.96%.

Eco -

UKunemploymentrosebyjust21,000to2.49minthethreemonthstoOctober,thesmallestquarterlyincreasefornearly18months.Joblessclaimswere-6.3kvs+12.5kexpectedthefirstfallsinceFeblastyear.

Commodites Commentary

Miners -

Basemetalpriceriseshelpedthesectoraddtothegainsfromthebanks.BHPekedoutagainof0.1%,Riorose1.8%,Angloadded1.1%,Xstratawasup2.2%andVedantaclimbed0.7%.

SPI Commentary

The SPI traded down 7pts or 0.1% to 4654. Open at 4661 with a high of 4691 and a low of 4633. Volume 63,684. Overnight the SPItraded up 5pt to 4659.

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

MondayAUSUSTuesdayAUSUSWednesdayAUSAus real GDP

USThursdayAUSUSUS core CPI

NZNZ RBNZ cash rate decision

FridayAUSUSUS leading index, US Philadelphia Fed index

*Dates are indicative only and may change