(generated from captions) This Program is Captioned Live.Making news tonight - a 24-year-old alleged computer hacker faces up to 12 years in jail after being arrested by the Federal Police. It's alleged the IT professional from the New South Wales Central Coast hacked into a Government website to access sensitive information. Police say he claims to be in charge of an international hacking group called Lulz Security. Qantas is being sued by a group of eight aboriginal men after they were removed from a flight. The group was returning from an indigenous leadership program in 2010 when they were allegedly taken off a flight and locked in a bus. An affidavit from a Qantas flight attendant said the men were rowdy and abusive. But Federal Independent MP Rob Oakeshott was on the plane and backs the group's version of the events. Economists are divided whether today's lower than expected rise in inflation will lead to another interest rate cut. Official figures so the Official figures Consumer Price Index road 0 hadn't 4% in the first three months of the year. And a car reportedly stolen by a Townsville escapee has been recovered in north-west Queensland. A search is continuing for 25-year-old Tyrone Speechly who fled from a low security correctional facility on Monday night. A second man who was recaptured appeared in court today. These are the latest headlines from are ABC News.

This ABC Program is Captioned Live.Tonight - Woodside says Browse is back. Two weeks after dumping the $45 billionion sure project, a new commitment offshore. Commitment to the development of the Browse resources at the right time in the right way.I'm Ticky Fullerton and you're watching The Business.

you're watching The Business.

7 you're watching The Business. Coleman has been talking to his joint venture partners celebrating the end of James Price Point but floating a future for Browse. What's eating Apple profits as earnings fall for the first time in a decade? And the White House terror tweet, the Twitter hoax sparking a $130 billion sell-off. First a quick look at good day on the local bourse quick look at the markets. with Japanese stocks good day on the with Japanese stocks leading
the charge in with Japanese the charge in the region supported by bullish US earnings. earnings.

What a difference two weeks makes after very publicly declaring Browse was dumped, Woodside's taken the mega project off the backburner.The company now says it is committed to the development of the Browse Basin. At the AGM today shareholders welcomed the news and their special dividend. It was thumbs up too for boss Peter Coleman's $7 mill pay packet. Here's resources reportser Sue Lannin.Members of the
Wilderness Society gave the thumbs up to Woodside chairman thumbs Michael Chaney over the company's decision to abandon plans to build a gas processing hub at James Price Point. Inside the AGM in Perth, the savage shareholder beast was soothed by a string quartet. Instead it was the Woodside claim who was up in arms over the high cost of doing business in Australia, a key reason why Browse was shelved. The sector here continues to face cost pressures and productivity challenges and Australia really remains at the top of the international cost sector cur.Woodside says the protest over James Price Point had 30 effect op its decision to abandon the project. It is still considering the options. It says it still intends to develop Browse.We'll propose a work program and budget to the joint venture for the remaining 20 months of the retention leases with a commitment to the development of the bows resources at the right time in the right way.And boss didn't give much away in terms of new details.We'll look at all those options. Clearly, some of them will fall off.Woodside was also focusing on new developments like the Leviathan gas field in us raltd and potential projects in Asia. Most investors brushed off the Browse decision and welcomed their 63 cent a share special dividend.A little bit of a rather than being criticising change to say some nice things the company. It was a rather than being the company. It was a good the company. It outcome.If it saves money I
think it is

think it is a good idea. I honestly think that the gas has got to go somewhere and creating more job on landThe big challenge facing Woodside how does it expand its business without Browse and when if the LNG boom fizzles out .We should be worrying about what US is doing and East Africa. East calf is going to be a competitive environment. Browse or not, most investors supported Peter Coleman's more than $7 million salary package.Reports that Australia's top-notch credit rating was under threat put a dampener on Government's celebrations over inflation. The latest March quarter numbers confirm inflation is well and truly under control, but the Treasurer was forced to field questions about the Government's commitment to deliver a surplus. Here's finance correspondent Phillip Lasker.It is the new normal, there are some places where consumers are king. Closing a sale is more difficult than it was before. There's a lot of choice for consumers.Jano Gibson says retailers sending products that consumers can do without are under increasing pressure pressure. We have to be mine full we need to find cost cutting mesh dwresh to maintain our margins whilst working in an environment where consumers are expecting the greatest discounts or more for the money compared to what they maybe would have done a cup of years agoIf the latest maybe inflation numbers are I in a guide many retailers don't have the pricing power to deny consumers discounts. The March quarter price rise was subdued quarter price rise leaving Australia's annual inflation quarter price rise was inflation rate in the middle leaving Australia's inflation rate in the middle of Reserve Bank's two to 3% comfort zone. The quarterly increase in prices for energy, health and education was more than offset by falls across a range of products and services with big price reductions in holiday, travel, thanks to the strong Australian dollar. Contained inflation and the low interest rates we have is good news for family budgets.But it isn't all good news. It tells us that there's some weakness in the economy clearly. It also tells us the Australian dollar being so high is having a big disinflation effect through the economy. It is not only hurting the manufacturers and the tourism sectors, for example, but the really pushing a lot of price falls through the economy.The Prospect of lower interest rates from the Reserve Bank remains.I think there's a case to be made perhaps the Reserve Bank's wait to see the budget and then move shortly after that at the next board meetingInternational credit ratings agencies will a twaching the budget. The Federal Opposition facing business criticism over the possible abandonment of its corporate tax cut jumped on reports that Australia's top credit rating was threatened. The report said that the AAA credit rating could be threatened without a government credit commitment to return to surplus in around five years. What we saw from Standard & Poors this morning on the front page of one of our major newspapers, is clear warning of what could happen to our country if there is no path for a return to surplus. There is going to be a return to surplus under the coalition. There will be no path to return to surplus under the Labor Party because the the Labor Party Labor Party is simply addicted to spending.Wayne Swan says the ratings agencies are exactly where the Government is.The Government is operating within its medium term fiscal strategy. First and foremost, supporting jobs and growth, but also committed to a medium term fiscal strategy which means surpluses on average over the cycle. That's the Government's fiscal policy, that's why we have a AAA credit rating from three major global ratings agency s and nothing has change
over the last 24 agency s over the last 24 hours.The last agency s and nothing has over the last last 24 hours has seen a change in Reserve Bank policy. It has revealed it will invest about $ billion in Chinese Government bonding for the first time, a move that's seen a deepening financial ties.Apple has amassed a mountain of cash with technology first, the technology Titanses made news post its first fall in profits in 10 years. The company's doubled the money returned to investors announcing the biggest share buy-back in corporate history. Apple has been at the top of its game for the past decade. It is disturbing this would just be. For the first time in years, the technology giant has posted a fall in quarterly earnings. It's been about half a year wince since we've seen a new product out of Apple, a significant new product out of Apple.The company made $9.3 billion in the three months to March, down almost 20% on the same time last year. Despite selling more products this quarter, including 37 million I-phones and almost 20 million IPads, margins dropped around 10%.You've got to 10%.You've got almost half of those are the older 4S modz Madonna /* models. They don't tell at the same price tag as the IPhone 5. Squl analysts say the company is also facing higher costs.Apple is selling into a lot more foreign markets right now. In the set up costs of going into certain countries Asia certain countries within Latin America in terms of setting up retail stores and setting up app stores, getting local language, this is all a very large expense.Apple shares have slumped by more than 40% time high of around $700 US each in September last year. They're now worth about $406 US and shareholders are frustrated. In a bid to appease investors, Apple has doubled the amount of cash it will return to them. By 2015, it will give back more than $100 billion. Apple also increased its dividends by 15% to around $3 a share. To prove management's conviction for the future, Apple has launched the largest share buy-back operation in corporate history. It will buy-back more than $60 billion worth of shares, up from $10 billion. It is so much more capable.Technology commentator Josh Taylor says the heady days when Steve Jobs was alive can't be replicated. There's no step judgment in inknowsation. There's no shiny new smartphone that's going to wow everyone eltsz at the moments. It is not only Apple wow affected. Samsung is not that different from the old phone.Tim cook is promising big things but won't say exactly what. In the meantime, Apple's falling back on its apps.Johnny Ive who designed a lot of the hardware for Apple is moving into the software side of Apple. We'll see a lot of changes I think within the operating system platform that they've got on the Apple hardware.With the android system growing in popularity and the threat of new products like Google glasses, Apple is looking at a very competitive future.The local bourse surged future.The local to a five week high as banking stocks led an across the board rally.I spoke to Ken Howard as RBS Morgans a little earlier. Ken Howard it's been a broadly positive day. Take us through some of the highlightsCBA and Woolworths and Flight Centre and a number of other stocks hitting record highs. It was a very strong market on our day up 80 points on the All Ordinaries. Cup for thebly above 5,000 points. The equity above market lead from international markets were positive and were particularly strong in Europe. The commodity markets were mixed with oil and copper being down. Of the companies that were down today, predominantly resource companies. There was about 90% of companies in the top 200 that were in positive territory but companies like Fortescue and Iluka were down a couple of percent. A tough day
and couple of percent. and tough market for resource stocks. Rest of the and tough market for doing fine.Announcements keep
coming in coming in the airline sector. Singapore Airlines has taken its stake in Virgin its stake in Virgin Australia to 19.9%. What's the significant there? I think
there are a couple of things you can read into it. The Australian market is obviously Australian market a very important market for Singapore Airlines. It provides quite a degree of traffic with Australians being known for their desire to travel globally. When you look at the Virgin register, you also have Air New Zealand at 19.9% and Etihad with pretty close to 10%. It remains to be seen whether they've maintained their snake post that Tiger raising yesterday. I think it is just highlighting the significance of the Australian market there for Singapore Airlines and they're obviously keen to keep a seat at the table and a strong hold on the Australian market.More tense area really. Billabong international extending its takeover negotiations for another 10 days. Is that an indication of a successful deal or not? No. For me it is an indication of concerns. The conditional offer is there at 60 cents and the shares are trading at 50 cents. One of the problems that Billabong has had their acquisition program of several years ago led to the company become overly complex and some would argue out of control as far as the the administration and the tax and the audit and the accounting is concerned. I would see that as another warning as far as Billabong is concerned. It's been a very tough 12 months. The first takeover offer was close to $3. We're locking at one at 60 cents. It is conditional and still subject to finalising the accounts.In industrial pat let giant Brambles provide industrial pat Brambles provide aid quarterly updateA solid result out of bram bills. The shares perform bram broadly in line with the rest of the market. Their of the market. Their topline revenue growth of the market. Their revenue growth was 6%, although revenue when you a just it for currency moves revenue was only up 4%. moves It is one of the few stocks on Australia market will give vesters to ex woesier to food clothing and household. They have a strong presence in Europe and US. A lot of investors are getting he's exposure to that US economy as it moves through to the exposure recovery phase. Investors ho have a view the Australian dollar has reached its peak, all those international earnings will be leveraged to a fall in the Australian dollar. Brambles is a stock that's done very well. Today's result simply reaffirmed that position for investors.Ken Howard, thank you for joining us.Thank you.To some other key movers you.To on the loltd sharemarket. Suncorp is up almost 4%. It's reporting stronger lending in the latest quarter. APN News the and Media jumped 7%. The company announced a shake up in management ranks. Pharmaxis halved in value after disappointing trials in a disappointing respiratory treatment. Range
Resources announced a (10) 500-0000 merger with Resources announced International Petroleum. The Australian dollar ended higher against

Let's Resources announced and tomorrow we'll find out whether Britain will slide into the much feared triple dip the recession. Meanwhile, across the channel, austerity has become a very dirty word, much to the annoyance of German Chancellor Angela Merkel. I'm joined now from London by senior economist from Westpac senior James Shugg. Good morning there.Hello.Big day for British tomorrow. Will we see shrinkage in the economy for the first three months, do you think? Our forecast is modest growth of about just under point 2 of a percent. About a quarter of economists are expecting a negative. That would be the second consecutive negative which makes your definition of a recession. The fourth quarter last down fourth quarter last year was the Olympics boost to the down because of a pullback from third-quarter. It is not the Olympics boost to really a genuine third-quarter. It is really a genuine recession, really a genuine recession, but the press will scream triple dip recession because it will be the third recession, the third one of at least two negative quarters negative quarters since 2008. It is certainly is a significant risk.I see the worsened outlook for economic growth was one of the reasons given for this big deal falling over, the deal for the cooperative bank to buy those 63 2 branches in Lloyds. That was a long time in the making, wasn't it.It was. It is part of this process by which Lloyds wants to rid itself of its government ownership. We saw Fitch, for example, downgrade the UK, they stripped them of the AAA rating for exactly the same reasons, the worsening outlook for the economy, which means that the budget position of the Government's going to detire rate rel to their expectations. It is a very common theme. The current formal forecasts for 2014 of the Government is for 1.8% growth in the UK. We think it is going to be point 2 of a percent because of the drag from ongoing recession in Europe. The British Treasury has announced a big funding program for business or for small business at least. Is that too little too late? Not really. It is an extension of the program they've announced last year where they lend money cheaply, the Bank of England lends money cheaply to the banks who are supposed to lend it for housing or small business loans. They've lended $14 billion so far but lending to those sectors have gone down since the program started. That's mainly because of problems at RBS and Lloyds T S B, they have legacy issues, but the runs around in the bag yet in terms of whether or not this scheme is successful. The government needs to be seen to be doing something. They're not going to relax on austerity. They're trying to stimulate the economy that way.Speaking of interesting on it. She Angela Merkel was interesting on it. She said
everyone is using interesting on it. She everyone is using this term austerity. That makes it sound like something evil. It reminded me of that great saying all it takes for evil to triumph is for good men to do nothing. Of course we're sitting here all waiting for this German election, aren't we? That's right. In September we have Federal elections and up until then, I think you're going to hear Germany maintain a very strong voice we cannot relax on our insistence on austerity. It is up to governments in other parts of Europe to sort parts that I be problems. Hospitals have been closed, medical services have been cut, suicide rates have gone up in these countries, it is devastating for the people involved. The Germans are insisting for their own purposes, for the electorate in Germany basically, on austerity. I think what will happen after the elections, if Merkel is re-elected, is that we'll see substantial write-down of the debt of countries like Greece and signs Cyprus /* Cyprus. They can't do it before the elections because they would be voted out straight away.In the meantime, of course, the market seems to be careering ahead no matter what happens. How do you trade against the market, I suppose? Look, there is a real disconnect in markets. Peripheral bond yields in Italy and Spain, for example, have fall Plenn to 3, 4%. That's a sign that risk appetite has sign come back into markets. Yet the Australian dollar is down and some commodity prices are down. There's a real disconnect that's hard to explain. At some point there's going to be a snap in some market, we don't know which one it is going to be necessarily, so that things properly get aligned again. Watch out.I was noticing a bits of chat in the 'Wall Street Journal' today that Spain might be downgraded to junk by Moody's. In Italy we've got the previous tech knock see that's changed to what could you call it ager ran tock seeThe President has been re-elected. He's 87. Leaked for another 7 year term. Do you know who is going to run the show? Nathan van Berlo. The come back kid will be pulling the strings whoever becomes the sental Prime Minister on this. Markets rally on this. A convicted criminal. It's crazy. That's the way criminal. behaving. There's going to be a shock with bond yields in this country likely to sore when it comes pear shaped. It's going to be devastating when it happens.On that note thanks very much for joining us. Thanks, Ticky.It was a case of revenge of the in other words on Wall Street overnight us. after a Twitter hoax sparked a did $130 billion sharemarket sell-off. Tweeters set out a fake tweet that the White House and the President was under attack. It exposes the vulnerable of markets to automated trading. Neal Woolrich reports.It could have and been a case of life imitating life. Unlike The Block and life. Unlike The Block buster 'Olympus Has Fallen' it was tweeter rather than terrorist putting the White House under fictitious attack. The president is fine. I was just with himHandlingers send out a tweet from the Associated Press account saying there had been two explosions at the White House and the President was injured. Within major injured. Within seconds, the
major share indices nearly 1% wiping major share indices were down nearly 1% wiping 130 billion dollars off the value of the S&P 500. Associated Press S&P 500. Associated quickly alerted the world to the hoax and markets recovered to where they were. Investor cover confidence was rattled. It is important for us to understand what happened. Make sure no investors were harmed. For those enacting such high risk strategies may be questioning right now as we speak whether it was a good strategy to employ.While how mans were behind the Twitter hacking many investors blame technology for the subsequent plunge on the markets. Within seconds of the fake tweet, trading volumes soared. Some say that was driven by programs that scour the internet for news headlines anarchy phrases and respond accordingly. Computers don't have emotions. They don't have indue. Computer trade off one variable and one variable only. Human that use their intuition. We can look, feel and touch, we knew pretty quickly it was not a true headline.When you get some sort of disruption in the market like this, they'll pile in and make it much more volatile much more extreme down and up. On the Australian sharemarket three major companies have been the tar get of hoaxes in the past year. Whitehaven Coal, David Jones and Macmahon Holdings. Last November the Financial Services Minister Bill Shorten introduced extreme trading rules to suspend a company's shares in the event of wild price swings. From June next kill switches year, brokers will need to kill switches to shut down their Alexander kill switches to shut their Alexander trading programs if they pose a threat to the market. Elio D'Amato says those charges are to the market. Elio says those charges are welcome but like the US-Australia remains volume ubl to Hee man and technologically induced panic attacks. Where it will become very complex and difficult is in the finer detail, particularly with regards to the type of events that actually enact such a kill switch being flicked. On this occasion at least it might have been a victory for the little guy with most retail investors blissfully ignorant of the five minute panic and correction that played out among the most sophisticated investorsThere are new Signs of Life Melbourne's property market. The city's median house price grew 3.6% in March compared to Sydney he 1.7% according to Sydney Australian Property Monitors. Annually, Sydney continues to outperform Melbourne with a record median house price of $673,000. Only Adelaide and Canberra posted price falls.The bitter territorial spat between China and Japan is taking its toll on trade. Japanese car sales have plummeted in China despite overall car sales rising 17% in the first three months of the year. Volkswagen and Ford sales have overtaken Toyota and Honda sales as Chinese buyers snub Japanese brands. The China Association of Automobile Manufacturers is predicting no growth for Japanese models in 2013. China is the runway leader when it comes to cyber attacks. China accounts for 41% of all hack attacks 41% according to the. Sum. Internet Technologies. It says the top cyber assaults in 2012 came from China with fingers pointed at the Red Army. Beijing denies any responsibility. The in second place with 10% is the US, home to infamous hackers like anonymous Antisec.Before we go, a look at what's making newspapers. 'The Wall Street Journal' says while the front seat TV viewing is banned in most of the driving world, Japanese motorists are turning to their favourite shows with kits that convert sat-nav gadgets into televisions. That's 'The Business'. Alan Kohler is here with 'Inside Business' on Sunday. I'm Ticky Fullerton, thank you for watching. This program is not captioned.

This program is not captioned. This program is not captioned.

Tonight on 'The World', modern warfare. An alleged hacker areftded in Australia. This individual was operating from a position of trust. Who had access to sensitive information. From clients, including government agencies. And a fake Tweet sends Wall Street into a spin.

This Program Is Captioned Live.

Also ahead tonight - it's 1pm in Belgium, where schoolchildren have walked in the footsteps of World War I soldiers keeping the Anzac spirit alive. It's 1pm in Paris, where supporters have taken to the streets celebrating the passing of marriage equality laws. And it's 4am in Cupertino California, where Apple has announced its first quarterly loss in the decade but the results are better than many expected.

Hello. I'm Nick Grimm. It's Hello. 9pm in Sydney, and Federal Police have arrested a man who claims to be the kingpin claims to be the kingpin of an international hacking group. The man is a young computer technician from the New South Wales Central Coast, but police say he has a global reputation and he poses a serious security risk to Australia. Police say this is the face of a national security threat.I've decided to announce my return to the Internet.His name is Matthew Flannery but on the Internet he is allegedly known as AushOk.His on-line identity is known to international law enforcement. Last night, the Federal Police arrived at his Sydney office. A company that's meant to safeguard information against hackers.Access to this type of information presented a considerable risk to Australian society. The 24-year-old was arrested and charged with hacking into a government web site . He could be jailed for a decade.The potential for damage is immeasurable. Police say Matthew Flannery is a self-proclaimed leader of a notorious international group. The group known as LulzSec has claimed responsibility for a series of high-profile security breaches. It's shut down the CIA web site, and stolen information and personal details from the US Senate, News Corporation and the Australian Government.This individual was operating from a position of trust. What had access to sensitive information. From clients including government agencies.No personal information has been compromised and obviously enquiries are continuing generally into what has been the degree of compromise.