Equity Structured Products and Warrants

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

The Round Up

18 May 2010

Issue No. 333

The Round Up is a comprehensivedaily note produced by the RBSWarrants team providing an overviewof market movements along withquality ideas for warrant traders andinvestors.

Equities

Move Last % Move Range Volume

ASX 200-143.94467.2-3.1%

-144 to + $6.6 bn(A)

SPI - yesterday-115.04495.0-2.5%

-143 to -58.u.c 39,406(H)

Dow Jones+5.7 10625.8 +0.1%

-184 to +41

HighS&P 500+1.3 1136.9 +0.1%

-21 to +6

HighNasdaq+7.4 2354.2 +0.3%

-43 to +18

AvgFTSE-0.35262.5-0.0%

-31 to +65

Avg

Commodities

Move Last % Today % Past Month

Oil-WTI spot-1.1070.51-1.5% -15.3% Gold Spot-11.081222.10-0.9%+7.4% Nickel (LME)-38.78935.63-4.0% -22.6% Aluminium (LME)-5.1789.13-5.5% -18.2% Copper (LME)-20.80291.91-6.7% -16.7% Zinc (LME)-7.0984.75-7.7% -21.8% Silver-0.4618.89-2.4%+6.5% Sugar-0.2413.89-1.7% -12.9%

Global Market Action

Scoreboard, commentary

Aussie Market Action

SPI Comment, Events & Dividends

Newcrest (NCMKZG) MINI Trading Buy –

Flight to GOLD

Equinox (EQNKZA) MINI Trading Buy

– Costs in focus

ANZ (ANZKZN) MINI Trading Buy

– Still Restoring

Australian Strategy US Reporting Season

Equity Structured Products and Warrants

Dual Listed Companies (DLC’s)

Move %Move Last AUD Terms Diff to Aus

NWS (US)+0.06 +0.4% 16.45 18.74

+25.8 c

RIO (UK)-95.5 p -3.0%£31.15 51.40

-1274.5 c

BLT (BHP UK)-19.0 p -1.0%£18.955 31.29

-560.5 c

American Depository Receipts (ADR’s)

Move %Move Last AUD Terms Diff to Aus

BHP (US)-0.82 -1.2%65.57 37.34

+45.5 c

AWC (US)-0.07 -1.2%5.74 1.63

+0.5 c

TLS (US)+0.09 +0.7% 13.11 2.99

+1.7 c

ANZ (US)-0.33 -1.7%19.40 22.10

-5.2 c

WBC (US)-0.64 -0.6%106.66 24.30

+101.9 c

NAB (US)-0.15 -0.7%21.80 24.83

-1.8 c

LGL (US)-0.89 -2.4%36.05 4.11

-5.4 c

RMD (US)+0.43 +0.6% 68.72 7.83

+9.8 c

JHX (US)-0.07 -0.2%33.60 7.65

-0.5 c

PDN (CAN)-0.15 -4.1%3.52 3.88

+1.2 c

Overnight Commentary

United States Commentary

TheUSekedoutagainof6ptsthankstoabounceintheEurooffa4yearlow.EnergysharesledtheDowdown185ptsearlyasoildippedunder$70forthefirsttimethisyear.TheS&Padded0.1%andtheNasdaqrose0.3%.

Eco -

EmpireManufacturingwaswellbelowexpectationsat19.11vs30expectedanddownfrom31.86priorbutimportantlystillexpanding.NAHBHousingMarketConfidenceIndexwas22vs20expectedandupfrom19prior.

Growth Proxies -

Caterpillarwasoff1.7%thankstotheweaknessinNYmanufacturingdata.Alcoafell2.1%tobetheworstontheDowandtogethertheytook10ptsofftheDow.

Retail -

Lowe'swasoff3.1%afterforecasting2Qearningsbelowanalystexpectations.TheCEOsaidconsumersarestillconcernedaboutunemploymentandhomeforeclosures.HomeDepotrose1.1%afterbeingweakerearly.Wal-Martrose1.2%aheadofearningslaterthisweek.

Homebuilders -

TheNAHBindexshowedconsumersrushedtosigncontractsbeforeaApril30deadlineforanupto$8,000taxcredithelpingtriminventories.DRHortonwasup1.5%,Pulterose0.5%,KBHomesadded0.9%andLennarended0.1%higher.

United Kingdom & Europe Commentary

TheFTSEfinishedtheday0.3pointsbelowwereitstartedasearlygainswereerodedbyminersandtravelfirmswithglobaldemandconcernsandtheIcelandicashcloudthebigissues.ThemarketfinishedthedayflatwhiletheDAXadded0.2%andtheCAClost0.5%.

Banks -

BankswereundercontinuedpressureasEurodebtconcernsandpossiblenewfinanciallegislation,aimedatreducingBritain'sdeficit,weighedonthesector.Barclays,LloydsandRBSthebiggestunderperformers,off0.7%to1.4%,asJPMorganreleasedareportidentifyingthe3asthemostlikelytobeeffectedbynewprovisioningrequirements.TheFTSEEurofirst300closed0.1%lowerastheEurohit4yearlowsandcopperandoilpricesflirtedwithkeysupportlevels.AirlineswereweakerastheIcelandicvolcanocontinuestospurtash,grounding1000flightsthroughoutEurope,Ryanair-3.5%,KLMAirFrance-3.6%.TravelgiantsTUIandThomasCookwereunabletoescapetheselloffshedding2.9%and3.2%astheyclaimedprofitswouldbeloweredby70mpounds.Hochtief,theGermanconstructiongroupfell7.7%afterreportinglowerthanexpectednewordersandrumourscirculatedaboutfaultysupportstructuresina500meuroprojectinHamburg.

Equity Structured Products and Warrants

Commodities Commentary

Miners -

Minerswerethebiggestweightsonthemarkettrackingsubstantiallycommoditypricesloweronthebackofglobaldemandfears.ConcernsthatChinesedemandmayhavealreadypeakedtriggeredaselloffacrosstheboard.BHP,RIO,Fresnillo,KazakhmysandXstrataoff1%to3%removingover10pointsfromthebroadermarket.

SPI Commentary

TheSPItradeddown112ptto4495.Openat4607withahighof4611andalowof4467.Volume44,855OvernighttheSPItradedup20pts4524.

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

Monday

AUSUS

Tuesday

AUSUS

US PPI, US housing starts

Wednesday

AUS