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

The Round Up

13 January 2010

Issue No. 252

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

– Guidance confirms recovery

ASX (ASXKZI) MINI Trading Buy

– Strong November trading

Round Up Corner December Quarterly review

Equities

Move Last % Move Range Volume

ASX 200-51.24899.5-1.0%

-51 to -51.u.c $2.8 bn(L)

SPI - yesterday-42.04891.0-0.9%

-54 to +2 22,053(L)

Dow Jones-36.710627.3-0.3%

-95 to -1

AvgS&P 500-10.81136.2-0.9%

-15 to -3

LowNasdaq-30.12282.3-1.3%

-40 to -14

AvgFTSE-39.45498.7-0.7%

-78 to +12

Avg

Commodities

Move Last % Today % Past Month

Oil-WTI spot-2.0280.50-2.4%+15.6% Gold Spot-23.551128.30-2.0%+1.1% Nickel (LME)-8.71799.56-1.1%+6.7% Aluminium (LME)-2.19101.92-2.1%+0.3% Copper (LME)-5.03336.93-1.5%+9.3% Zinc (LME)-4.39110.86-3.8%+8.0% Silver-0.3018.26-1.6%+6.3% Sugar+0.61 27.36 +2.3% +16.8%

Dual Listed Companies (DLC’s)

Move %Move Last AUD Terms Diff to Aus

NWS (US)-0.61 -3.7%15.86 17.23

-51.0 c

RIO (UK)-65.5 p -1.8%£35.58 62.51

-1585.8 c

BLT (BHP UK)-48.5 p -2.3%£20.560 36.13

-736.2 c

BXB (UK)-6.5 p -1.6%£3.970 6.98

-10.4 c

American Depository Receipts (ADR’s)

Move %Move Last AUD Terms Diff to Aus

BHP (US)-2.91 -3.6%78.89 42.85

-63.8 c

AWC (US)-0.67 -8.8%6.95 1.89

-7.3 c

TLS (US)-0.38 -2.4%15.16 3.29

-1.6 c

ANZ (US)-0.56 -2.7%20.20 21.94

-31.5 c

WBC (US)-3.19 -2.7%113.62 24.69

-49.3 c

NAB (US)-0.90 -3.5%24.50 26.62

-33.4 c

LGL (US)-1.30 -4.1%30.79 3.34

-7.5 c

RMD (US)-1.41 -2.7%51.43 5.59

-11.3 c

JHX (US)+0.51 +1.3% 40.39 8.78

+8.6 c

PDN (CAN)-0.16 -3.9%3.99 4.17

-8.1 c

Overnight Commentary

United States Commentary

Post the Alcoa miss, red ink overnight, particularly across the resource space and any stock viewed as a barometer foreconomic growth. The Dow had a brief look at positive territory mid morning, but since then, nothing but selling. Headinginto the last 30mins, DJIA down 50pts, the S&P 1% lower and the Nasdaq down 1.5%.

Resources -

In line with after market trading yesterday, Alcoa down more than 11%, the Dow's worst performer and oneof the bigger pt takers. Higher energy and currency costs did the damage and the days fall erased 2010's gains and thensome. Elsewhere, Freeport down 3.3% and US Steels down 3% on high volume.

Growth -

The Alcoa miss meant a reasonably severe case of the jitters across the bellwether growth names. Caterpillarthe biggest pts drag, giving back roughly half of the previous sessions gains down 3%, Intel down 2.5%, Dupont, Boeingand United Tech all trading 1.3% lower. The group accounting for roughly two-thirds of the days losses.

Homebuilders -

KB Homes suffered its biggest single day fall in 3 months(-6%) despite a swing back into profit. NetIncome of $1.31 was well ahead of expectations, however, the numbers were largely a function of yet another tax changeand masked a 27% drop in revenue for the period. The all important new home order component fell shy of the streetsexpectation.

Banks -

Not spared from what was a broad based sell-off, investment banks also weighed heavily. BofA down more then4%, JP's down 2.6%, Citigroup, Wells and Morgan Stanley all gave back around 3% and featured in the S&P100'sbottom 10.

Bonds//FX -

With the nerves, came a push back into Treasuries, yields down 10 and 11bps on the 10yr and 30yrrespectively. The USD index more or less unchanged but the AUD gave back a full cent vs the greenback.



United Kingdom & Europe Commentary

The FTSE shed 40 points last night with the mining and energy plays the hardest hit. Investors were banking profits lastnight as oil fell and fears the resource sector may have run too hard continued to loom. Retailers failed to save the marketas Tesco and J Sainsbury both posted better than expected Christmas sales. The market closed -0.7%, the DAX -1.6%and the CAC -1.1%.

UK Banks -

With no material news on the wires the banks succumbed to the overall momentum of the market with thesector finishing -0.6%. Lloyds, Barclays and HSBC closing -0.5%, -0.7%, -0.3% respectively.

Eco -

The Chinese central bank stated it will increase capital requirements for banks by 50 basis points in a bid to curbinflation. This sparked fears that Chinas' growth may not continue at previous levels.

Commodites Commentary

Miners -

The miners were the hardest hit today as China implemented economic reforms to cool the economy. Fresnillo,Kazakhmys and Xstrata were all off between 3% and 5% with the major miners responsible for 20 of the 40 point loss.

Energy -

Energy took a hit today as oil fell 2% with talks the current cold snap will ease this week. Royal Dutch and BPthe biggest points takers claiming 6 points between them and finishing -1.7% and -0.5% respectively.

SPI Commentary

The SPI traded down 42pts or 0.85% to 4891. Open at 4934 with a high of 4958 and a low of 4879. Volume 23,951. Overnight the SPItraded down 56pt to 4841.

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

MondayAUSUSTuesdayAUS

Aus investor housing finance

USWednesdayAUSUS

US trade balance

ThursdayAUS

Aus unemployment

USFridayAUSUS

US retail sales, US CPI

*Dates are indicative only and may change