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

The Round Up

1 February 2010

Issue No. 263

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

News Corp (NWSKZJ) MINI Trading Buy

‘Avatar’ Profits

Qantas (QANKZK)

MINI Trading Buy

– Guidance confirms recovery

Paladin (PDNKZK) MINI Trading Buy

– Long-term value hidden by noise

Round Up Corner Reporting Season Looms

Equities

Move Last % Move Range Volume

ASX 200-103.74569.6-2.2%

-107 to -17.u.c $7.3 bn(VH)

SPI - yesterday-47.04499.0-1.0%

-59 to +42 46,494(VH)

Dow Jones-53.110067.3-0.5%

-77 to +119

Very HighS&P 500-10.71073.9-1.0%

-13 to +12

Very HighNasdaq-31.72147.4-1.5%

-39 to +24

Very HighFTSE+42.8 5188.5 +0.8%

u.c to +84

High

Commodities

Move Last % Today % Past Month

Oil-WTI spot-0.7572.89-1.0% -7.6% Gold Spot-6.251080.85-0.6% -1.5% Nickel (LME)+7.21 836.16 +0.9%-3.5% Aluminium (LME)-1.3092.83-1.4% -8.4% Copper (LME)-6.93304.96-2.2% -7.1% Zinc (LME)-1.9595.03-2.0% -16.6% Silver-0.0416.21-0.2% -5.2% Sugar+0.90 29.90 +3.1% +11.7%

Dual Listed Companies (DLC’s)

Move %Move Last AUD Terms Diff to Aus

NWS (US)+0.13 +0.9% 14.68 16.61

+10.2 c

RIO (UK)+45.5 p +1.5% £30.99 55.94

-1206.0 c

BLT (BHP UK)+23.5 p +1.3% £18.660 33.68

-571.7 c

BXB (UK)+10.0 p +2.8% £3.660 6.61

+5.7 c

American Depository Receipts (ADR’s)

Move %Move Last AUD Terms Diff to Aus

BHP (US)-2.40 -3.3%69.37 39.25

-15.0 c

AWC (US)-0.25 -4.4%5.47 1.55

+0.7 c

TLS (US)-0.40 -2.6%14.75 3.34

-0.2 c

ANZ (US)-0.31 -1.6%19.19 21.72

-1.4 c

WBC (US)-3.24 -3.0%104.78 23.71

-213.6 c

NAB (US)-0.45 -1.9%23.11 26.15

-21.9 c

LGL (US)-1.50 -5.8%24.25 2.74

-2.6 c

RMD (US)-0.96 -1.8%51.14 5.79

-0.3 c

JHX (US)-1.30 -3.8%33.19 7.51

-2567.8 c

PDN (CAN)-0.02 -0.6%3.43 3.63

-0.7 c

Overnight Commentary

United States Commentary

TheDowcloseddown53ptsinlighttradingonFridaydespitebetterthanexpectedGDPfiguresandsolidnumbersfromsomeheavyweights,ascommentarywassubduedandconcernsoverPIIGSstillweighed.TheS&Pended1%lowerandtheNasdaqfell1.5%.

Eco -

4QGDPwas5.7%vs4.8%expectedwhichsawtheUSDollarrallytoa5monthhighasinvestorsbetonasoonerthanexpectedratehike.TheGDPnumberwasthefastestgrowthfor6years.UniofMichiganConfidencewasaheadofexpectations74.4vs73expectedandupfrom72.8previously.

Energy -

Chevronfell1.5%afterreportinga37%dropinprofitforthefourthquarter.Thecompanymissedanalystsexpectationsduetoasteeplossinitsrefiningandmarketingbusiness,asegmentthecompanysaidwillcontinuetobechallengedbylowdemandforfuels.Exxondropped0.5%ascrudeslippedbelow$73,togethertheystripped12ptsofftheDow.

Tech -

Microsoftdropped1%despitereportinga60%jumpin2Qprofitandtoppinganalystsexpectationsastheoutlookfortheirenterprisebusinesswaspoor.IBMsank1.4%andtogethertheystripped18ptsofftheDow.

Airlines -

HoneywellIntlfell1.2%aftertheaircraftenginemakerpostedadropin4Qearningsayingthatmarketswerestillweakascustomersintheaerospaceandbuilding-equipmentsectorscontinuedtodelayrestockingthininventories.BoeingwastheworstontheDowoff2%andstripped15pts.

Retail -

Amazon,off0.5%,felldespiteaverystrongquarterwhereitexpandeditsshareofU.S.retailduringanotherwiseflatholidayseasonforstores.Mattel,off1.6%,alsofelldespitereportingajumpinsalesandabigimprovementinprofitability.Wal-MartwasthebestontheDowup0.8%afterannouncinganalliancewithglobalbuyingagentLi&Fung.

United Kingdom & Europe Commentary

TheFTSEbounced0.8%todayadding43pointsasinvestorsreturnedtothemarketafteraweeklongselloff.BanksandminersaddedmostofthepointsendingtheJanuarysession-3.9%.TheDAX+1.2andtheCAC+1.4%.

UK Banks -

Agoodbounceinthebankstodaywithinvestorsonceagainseeingvaluewithinthesector.HSBC,BarclaysandStandardCharteredthebetterperformersfinishing+2.6%,+2.1%and+1.4%respectivelyaddingacombined16points.

Commodites CommentarySPI Commentary

The SPI traded down 105pts or 2.2% to 4546. Open at 4651 with a high of 4653 and a low of 4527. Volume 40,142. Overnight the SPItraded down 41pt to 4499.

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 AIG/PWC manufacturing PMI,Aus ANZ job ads,

USTuesdayAUS

Aus RBA cash rate decision,Aus NAB business conditions

US personal income, US construction spending

WednesdayAUS

Aus trade balance

USThursdayAUSUS

US ADP employment report, US non-manufacturing ISM,Aus nominal retail trade,Aus building approvals