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

21une 2010

Issue No. 354

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+24.6 4551.9 +0.5%

-1 to +34 $4.7 bn(L)

SPI - yesterday+28.0 4560.0 +0.6%

-6 to +28 18,968(L)

Dow Jones+16.5 10450.6 +0.2%

-10 to +49

HighS&P 500+1.5 1117.5 +0.1%

-2 to +5

HighNasdaq+2.6 2309.8 +0.1%

-6 to +15

HighFTSE-3.15250.8-0.1%

-15 to +35

High

Commodities

Move Last % Today % Past Month

Oil-WTI spot+0.39 77.18 +0.5% +11.2%Gold Spot+11.65 1256.80 +0.9% +2.6%Nickel (LME)-9.57885.42-1.1% -11.6% Aluminium (LME)-0.9886.82-1.1% -5.4% Copper (LME)-0.52290.66-0.2% -3.8% Zinc (LME)-1.5876.98-2.0% -11.1% Silver+0.46 19.18 +2.5% +0.7%Sugar-0.2115.58-1.3%+5.3%

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

Origin Energy (ORGKZC) MINI Trading Buy

– Offtake and set for NSWprivatisation sale

Australian Strategy Monthly Market Review - May 2010

Equity Structured Products and Warrants

Dual Listed Companies (DLC’s)

Move %Move Last AUD Terms Diff to Aus

NWS (US)-0.04 -0.2%16.04 18.22

-38.3 c

RIO (UK)+5.0 p +0.2% £33.25 56.07

-1478.1 c

BLT (BHP UK)+19.5 p +1.0% £19.400 32.71

-641.6 c

American Depository Receipts (ADR’s)

Move %Move Last AUD Terms Diff to Aus

BHP (US)+0.80 +1.2% 67.83 38.52

-61.2 c

AWC (US)+0.14 +2.6% 5.62 1.60

-1.9 c

TLS (US)+0.40 +2.0% 20.28 23.03

-10.8 c

ANZ (US)+1.60 +1.6% 102.63 23.31

-24.8 c

WBC (US)+0.30 +1.4% 21.83 24.79

-32.7 c

NAB (US)+0.92 +2.5% 38.08 4.32

-2.5 c

LGL (US)-1.33 -2.1%63.37 7.20

-29.3 c

RMD (US)-0.28 -0.9%29.59 6.72

+2.1 c

JHX (US)-0.09 -2.3%3.82 4.26

-14.0 c

PDN (CAN)+0.07 +2.0% 3.55 3.96

-4.1 c

Overnight Commentary

United States Commentary

USekedoutasmallgaininchoppytradeonFridaynightwithvolumesboostedbyfuturesandoptionexpiryandanS&Pre-balance.TheDowadded16pts,theS&P100wasup+0.1%andtheNasdaqalsorose0.1%.

GrowthProxies-Caterpillarclimbed1.4%aftertheyreportedmachinesalesandencouragingstrengthinAsia,especiallyChina,whichparedsomeinvestorconcernsaboutAsiandemand.Boeingrose1%,UnitedTechadded0.9%butIBMwasoff0.6%.

Homebuilders-TheS&P500Homebuildingindexwasagainlowerfollowingyesterday’sworriesaboutfadingdemandafterthehomebuyertaxcreditexpiry.DRHortonfell1.7%,TollBrotherswasoff0.4%,Pultedropped1.6%andLennarsank3.7%.

Economy-Theonlyecodatareleasedwasstatebystateunemploymentfigures.Overall,numberswereslightlylowerthanlastmonth(37statesdeclined,6increased,7unchanged).Ofnote,Nevada+0.3%reachedrecordsettinghighs14%inMay,wrestingtheundesiredtitleofhighestunemploymentratefromMichigan13.6%,whohasheldontoitsinceApril2006.

United Kingdom & Europe Commentary

TheFTSEsnappedasevendaywinningstreakonFridaydropping3pointsasinvestorssoldpharmaceuticalsandtobaccoplaysinexchangeforsomeriskierassets.Themarketfinishedtheday-0.1%,theDAX-0.1%andtheCAC+0.1%.Alleyesremainonthebudgetwhichisdueouttomorrow.

Banks -

ItwasarelativelyuneventfuldaywithinthebankingsectordespiteEUleadersagreeingtopublishresultsof"stresstests"onfinancialhouses.Themove,whichwastakenpositivelybyUSmarkets,aimstofirmupinvestorconfidencewithinthesectoranddemonstrateacommitmenttoaddressingsovereigndebtissueshauntingtheEurozone.

Eurozoneproducerpriceswerehigherthanat0.3%vs.0.1%whileindustrialordersbeatconsensusat4.7%vs.0.8%(mom)and20.6%vs.13.5%(yoy).IntheUKpublicfinanceswerelowerthanexpectedat12bvs.20.5bexpandpublicsectornetborrowingwas16bvs.18bexp,possiblysignallingtheworstisbehindthem.

Commodities Commentary

Miners-Minersenjoyedadayintheblackasinvestorsputtherisktradebackon.BHPandXstrataadded1.6%and1%respectivelywhilepreciousmetalminersRandgoldandFresnilloadded2.9%and3.4%asgoldsurgedabove$1260/ounce.

Equity Structured Products and Warrants

Energy-BPcontinuedtoweighonthemarketdropping0.6%andtakingitslossto46%sincetheoilspillintheGulfofMexico.RoyalDutchfell-0.2%whileBGmanagedtostayintheblackadding0.5%.

SPI Commentary

TheSPItradedup32ptto4560.Openat4528withahighof4566andalowof4511.Volume22,873OvernighttheSPItradedup13ptsto4566.

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

Wednesday

AUSUS

Thursday