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Live.

Militants strike in Pakistan.

Dozens killed in a series of

gun and bomb attacks. Asylum

seekers on a boat in Indonesia

declare a hunger strike. 20

bushfires now burning in

Queensland from the State's

central region to the

south-east. And Victoria stamps

its authority on the Champions

League with the biggest win of

the tournament so far. Good

morning. It's Friday 16

October. I'm Joe O'Brien. And I'm Mary Gearin. The top story

on News Breakfast - at least 3

# people have been killed in a

series of terrorist attacks in Pakistan. Gunmen launched

queernt aid assaults on police

interested in the city of

Lahore And a suicide bomber

also hit a police station in

the country's north-west. More

than 100 people have died in

similar attacks in Pakistan

over the last ten days. South

Asia correspondent Sala Sari reports. Police ran for cover

as terrorists launched

coordinate aid tabs in Lahore. The heavily armed gunmen

stormed the headquarters of the

Federal investigation agency

and two police training

centres. Hundreds of recruits

were caught offguard. Commandos

were called in to hunt and kill

the attackers.

TRANSLATION: We are searching

the area at the moment. The

dead bodies of tris are lying

inside. We have seen about five

dead bodies, some of them have

blown themselves up. The others

have been killed by our Supreme

Court forces. It took more than

three hours for security forces

to regain control. Several

senior officers were killed.

Dozens of police recruit s were

injured. The FIA headquarter a

the police academy have both

been bombed by terrorists in

the past two years. The

filled the emergency casualties from the latest velz

departments of nearby

hospitals. In the north-west of

the country doctors were

dealing with the victims of

another attack. 11 people were

kill when a suicide bomber

drove a car packed with

explosives into a police

station at Kohat. The blast demolished part of the police

station just as officers were

prepared to start work. Several

civilians were also killed and injured.

TRANSLATION: Suddenly a

powerful bomb blast took place

and the roof of the room fell

on us and we got stuck under

itment. Some people came and

dug us out and brought us to

the hospital. The latest

violence comes off a suck

success of attacks which -

comes after a succession of

attacks. The bloodshed will

continue in retaliation for

operations by the Pakistani

army. Certainly we will react

at a time when we will have

some strategy which we have one

but the timings will be

determined at an appropriate

time Security forces are on

alert across Pakistan and

there's a great deal of tension. The terrorists have

shown that they can strike high

value targets at will. There

are fears that the violence

could worse when when the

military starts its planned

offensive in South Waziristan.

That operation is expected to

be a flash point. The Taliban

have already shown they're

willing and able to inflight

multiple atabs. Many Pakistanis

are worried about their safety

when the security forces are

struggling to protect their own

troops and bases. In other

news, 255 a Sri Lankan asylum

seekers in western Java have

gone on a hunger strike. The

ethnic Tamils are refusing to

leave their boat in Merak

Harbour. They were intercepted

at sea on the weekend. On shore, Indonesian authorities

are surveying local option fos

accommodate them in hotel and

guest houses. Firefighters

across Queensland are fighting

about 20 blazes from the

State's centre to the

south-east. Homes were

evacuated at Mt Archer near

Rockhampton in central

Queensland. The State's fire

and rescue service said

firefighters were also

Bundaberg. Bushfires in combatting two blazes near

northern NSW z have scorched

more than 20,000 hectares of

land. Australian Foreign

Affairs Minister Stephen Smith

has paid tribute to victims of

last year's Mumbai terror

attack. He signed a book of

condolences during a visit to

the city. Mr Smith said also met political and business

leader to try to restore

Australia's reputation after

attacks on Indian students in

Sydney and Melbourne. The PM

Kevin Rudd has added another 33

million to Government spending

to ease the impact of the

Brotherhood of St Laurence economic slowdown. He used the

Sambell Oration to launch measures to help low income

earners. These include no interest loans and new

education programs. He also lambasted corporate behaviour

sayling unrestrained and

unregulated agree was at the

core of the global financial

crisis. And Opposition

frontbencher Christopher Pyne

is predicting a win for Malcolm

Turnbull on Emissions Trading

Scheme. He's told the ABC's 'Q

and A' program Sunday's

Coalition party room meeting on

the ETS will overwhelmingly

accept the Opposition Leader's

position on moving amendments

to the Government legislation.

Mr Pyne says the Coalition

would record improving a flawed

Emissions Trading Scheme

legislation as a major win. More now on those

Queensland fires and homes have

been evacuated about the

outskirts of Rockhampton in

central Queensland and several

fires have also flared up in Queensland's south-east. The

wall of smoke is edging closer

to the outskirts of Rockhampton

in central Queensland. 2500

hectare of National Park have

already been destroyed and the

fire is show nothing signs of

stopping. We have a small

community up there where we'll

put some contingencies in place. Authorities spent the

night monitoring homes at the

summit of Mt Archer. To the

south-west of Brisbane, winds

fanned the flames. We've got to

make sure we black it out and

that no further fire comes from

this one. Six fire brigade

units from the region were

called in to help. On the Gold

Coast motorests came

dangerously close to flames.

Authorities were inundated with

triple 0 calls as water bombers

made their way to a large grass

fire next to a motorway and

Nohr of Brisbane a a fire jumped capement lines.

Residents used whatever they

could to hold the flames at bay

until crews arrived. Where the

hell's the fire brigade, that's

what I want to bloody

know. This is ruin many lives

this fire, you know? It's a

great friend but a very bad

enemy. Extra crews are being

called in from the metropolitan

region to help batle the fire.

Authority say this is one of

the worst fire seasons in the

last few years. 1,500 crews

have already fought 2500 fires

across the State in the last

three weeks. We can bring you

some vision from the US that's

airing at the moment. There is

a balloon that was an

experimental flying saucer and

a boy is trapped inside A

6-year-old boy untethered it

from his family's hope and it's

flying thousands of metres into

the air in Colorado. It's still

gloating. That vision is as live. Authorities are trying to

figure out how to get the boy

down. These are the latest

pictures and this is apparently

he's thousands of metres into

the air in Colorado. The Denver

post newspaper reported that

the boy got into the aircraft

at his family's home in Fort

Collins. It then came loose

from its tether so there's a

6-year-old boy up from floating

around and authorities are

doing all they can as we speak

now to work how to get that

down and get this 0.home safely. We'll update you on

this story later as we find out

developments. The # 55 ache

seriesers have started a hunger

strike. Original bound for

Australia the Sri Lankas are

refusing to leave the boat in a

bid to avoid being sent to an

immigration centre. With its detention centre stretched to capacity Indonesian officials

are struggling to find accommodation. Another day

aboard this wooden cargo boat

unfit for human needs but still

home to 2555 men, women and

children. All Tamil asylum

seekers from Sri Lanka.

Journalists were invited aboard

the boat to see the hundreds of

faces of disappointment. After

a call to Indonesia's President

from Kevin Rudd cut their

asylum bid short. First of all

I'd like to say thank you to Mr

Kevin Rudd because he has

accepted many refugees in the

past and those refugees can be

anyone of our brothers or

sisters who have found refuge

and found safety in Australia. We are thankful to

him Attention is now turning to

peace ply persuading these

people leave to their boat

journey behind and begin the

longer haul of being processed

by immigration officials and

the UNHCR. Any humanity

operation. But Indonesia says

many of hiss itself detention

centres are also overflowing.

Your detention centres are full

at the moment Yes,. It is a a

problem for you to find a place

for them? Yes,, of course. This

boarding house below the cliff

behind me sit just opposite the

Port where the Sri Lankas boat

is moored a pay provide a

temporary option. A new option

may be a longer term answer.

Able to house 500 people it was

built with Australian aid. The

Sri Lankas spokesman named Alex

was led off the boat to check

out the local accommodation on

offer. But after protest from

others on the boat he returned

to help unfurl a banner and

declare a hunger strike seeking attention from the international community. There's no time

limit on how long they can stay

on the boat. Maybe one two,

maybe two days, maybe three

days. We don't know For now the

Tamils remain boat-bound and

say they will not leave. On

Sunday the Federal Coalition

will finally vote on amendments

to the Government's Emissions

Trading Scheme. The issue has

split Coalition MPs for weeks

but last night Opposition

frontbencher Christopher Pyne

was confident the party could

reach a united front. He told

'Q and A' the program would

even vote for legislation

before the Copenhagen climate

conference in the Government

accepted all its amendments. I

predict on Sunday that Malcolm

Turnbull's position of moving

amendments to the Emissions

Trading Scheme legislation will

be overwhelmingly adopted by

the party room. Those

amendments will then be

announced, they'll be sensible

and comprehensive to try and

improve what is a flawed scheme

at the moment and then the good

faith will be on the side of the Government to actually negotiate rather than simply

seek a political solution which

to them is the opportunity to

have an election and a double

discollusion trigger. The ball

will be in their court. Malcolm

Turnbull, his leadership is in

tatters, accept a range of

amendment, the test isn't

whether they come up with

amendments or not, the test is

whether those amendments are

financially responsible, where

is the money coming from, and whether they're Victorianally

credible or not. We'll wait and

see whaptates are. They've had

a long time to development them

but will they commit to a vote

in the next four weeks of

parliament? Christopher Pyne

earlier on 'Q and A' last

night. For more Dana Robertson

joins us flow Canberra. Are

things actually looking up a

little for Malcolm Turnbull on

the ETS now? Well I guess to

some very small degree, his

supporters like Christopher

Pyne are claiming the fact that

he's even managed to get the

Liberal Party to this point as

some sort of stellar victory,

the fact that he's managed to

talk them into getting them

into a room to talk about negotiating with the

Government. That to some degree

has brought the party a long

way to dealing with the

Government. But that said, I

hardly think that this Sunday's

meeting will be a picnic for

Malcolm Turnbull. There is

still quite a lot of division

within the Liberal Party and certainly significant rump of

MP and Senators who really are

opposed to emissions trading at

all and don't want to support

the Government's legislation in

any way. But once the Liberal

Party finally comes up with

these amendments on Sunday, the

real political games will begin

as we heard Albanese just now

saying there's only four sitting weeks of parliament

left and the Senate is only

sitting for three of those

because of the estimates next

week so time is really

beginning to run out if this

legislation is to be passed

before Copenhagen. The Government's saying that's

really what it wants. It will

be interesting to see whether

they're prepared to put any of

their money on the table and

really begin serious

negotiations and it will be

interesting to see how much

ground the Government's

prepared to give to try and get

its legislation passed before

the end of this year Even if

Malcolm Turnbull does make it

through this Sunday you would

have to think it's going to be

impossible for the Government

and the Opposition to reach

agreement on amendments, then

there'll be the double

desclietion tryinger with the

ETS legislation and the

Opposition will still be faced

with the prospect of going to

an election with a party

divided on that issue? It is a

thriky sort of situation. I

don't think there's any heart

evidence that the Government

really wants to go to a double

dissolution even though that's

what the Coalition are trying

to make out. They're not

necessarily in any hurry to

have an election. It looks as

though, really, if there was

one any time in the next year

they would almost certainly win

but that certain could happen

if this legislation is held um

in the Senate for the next

three weeks, if the Coalition

manage to filler buster debate

and drag it on so there doesn't

end up being a vote even. The

legislation still isn't passed.

As you say, there certainly is

a threat that this could become

an election issue although if

there was to be a double

discollusion at some point next

year that of course would be an

election fought on a wide range

of issues, not just e Emissions

Trading Scheme. The PM spoke

overnight in Melbourne and once again spoke out against

corporate greed in He did. On

this, I guess he's on the same

page as his wife H we heard

from wife wife at a function

where she criticised the

so-called wiz kids of Wall

Street for wreaking destruction

on the economy, that they would

never really be around to see

the consequences for the most

marginalised people in society.

And that's a theme that Kevin

Rudd has picked up as well

speaking to the brotherhood of

St Lawrence last night he, got

stuck into corporate greed. If

you want a definition of social

in-Justice, this was it in

living brutal colour. Millions

of innocent workers losing

their jobs because a few

thousand financial executives

around the world surrendered

any pretense of social

responsibility in their blind

pursuit of absolute greed. Of

course Kevin Rudd is not the

first politician to criticise

corporate greed. Peter Costello

when he was Treasurer was

forever getting stuck into

executives about their massive

bonus and exit payments and

then just a couple of weeks ago

we've seen a report from the

Productivity Commission which

is looking at giving

shareholders more power to rein

in executive bonuses so it

would be interesting to see in

light of what the PM has said

whether or not the Government

intends to act on that

report. Dana Robertson in Canberra, thank you for

that? Now to the front pages of

the major newspapers around the

country. The 'Australian'

dollar headed towards parity

with the US dollar. The

'Financial Review' says

investors have increased their

expectations of a rate rise

after a warping from the

Governor of the Reserve Bank

Glenn Stevens. The 'Age'

reports widespread Brackouts

could be caused as two of Victoria's blown coal power

stations are closed in the next

decade A baby boy was lucky to

escape with a few Brisbanes

after his pravm rolled off a

platform and in front of a

stopping tram in Melbourne

yesterday. The 'Sydney Morning

Herald' says the Kevin Rudd has defended the need to keep

spending to stimulate the

economy. The cost of the Sydney

metro tunnel has blown out to

$7 billion or $1 billion per

kilometre says the 'Daily

Telegraph'. The soldier who

raped a 15-year-old girl when

left the territory for

Queensland has returned to face

trial 30 years later reports the 'Northern Territory News'.

The 'Courier-Mail' reports a

proposal for a Queensland

conjestion tax from Ken Henry

and it's got a shot there of

the fires, one of the 20 fires

burning across Queensland. In

the West Australian, reports

that the managering director of

WA es power generator got a

$94,000 pay rise last year

despite overseeing a $171

million loss. A theatre

production in Hobart claims

it's been shut down because the

show included topless women

says the 'Mercury'. And the

Adelaide 'Advertiser' shows

that nine in ten South

Australian voters would still

support the Premier in spite of

the controversy surrounding his

attack with a rolled up

magazine. If you'd like to send

us your feedback on any of the

stories we're covering today - The top stories on ABC News

Breakfast - dozens of people

have been killed in a series of

terror attacks in Pakistan. Gun

and bomb blasts left at least

38 people dead with the

majority of strikes targeting

police. 255 Sri Lanka asylum

seekers aboard a boat in

Indonesia have gone on a hunger strike. They were intercepted

at sea on their way to

Australia and are refusing to

leave their boat in western

Java. And about 20 blazes are

continuing to burn across

central and south-east

Queensland. Homes have been

evacuated at Mt Archer near Rockhampton in central

Queensland, where firefighters

moved in defend the properties. The dollar, world

markets and interest rates are

all on their way up and the

Reserve Bank Governor has

signaled once again that more rate rises are coming. Glenn

Stevens says the period of

greatest weakness in the

Australian economy is probably

over. In his first comments

since last week's official

interest rate rise of a 0.25%,

the Reserve Bank Governor Glenn Stevens declared Australia was

back on track. The period of

greatest weakness in the

Australian economy is probably

past. Barring another serious international setback, the

economy is likely to continue

along a path of gradual

expansion in 2010. Glenn

Stevens told a business

breakfast in Perth that the

RBA's positive view has not

been taken lightly. I can

assure you that contrary to

what is sometimes said the

board is no rubber stamp and

its members are now group of

shrinking violets. The Governor

says the bank makes its

decisions based on a vast array

of statistical and survey

information and the current

cash rate of 3.25% is designed

for a much weaker economy than

has materialised. That means

not holding interest rates at a

very low level when that isn't

needed any longer. The hammer

and tongs pace of the recovery

is welcomed by the Federal

Treasurer, even if there is

political pain in rising home

loan rates. I think Australians

understand that interest rates

couldn't stay at 50 year lows

forever. The economy is

beginning to recover, that much

is certain, there still is an

uncertain international outlook

and of course fiscal policy and

moneyar policy are both

expansionary at the moment, to

support jobs. For the Federal

Opposition it's evidence of

Labor's extravagance. Oh no. Mr

Swan wants to keep on spending

like there's no tomorrow. No

matter how much economic data

demonstrates that they should

be winding back their reckless

spending and borrowing these

Paris Hiltons of Government

finance are determined to keep

spending. Glenn Stevens's

comments have pushed the local

share market higher and the

Australian dollar is now riding

over 92 US cents. In New York,

the Dow Jones index marked a milestone, passing through the

10,000 point barrier on the

back of some strong company

results and retail sales. In

once sense it means a lot and

in another it means absolutely

nothing. But the everythings of

global financial crisis are

still rebounding through the

Australian economy. It's

delaying taxation changes that

the Treasury secretary Ken

Henry wants to bring in to

allow the economy to weather other challenges? With the

budget surpluses having having

gone, some of those tax reform options that might otherwise

have been the delivered quite

quickly, perhaps, will not be

capable of being delivered for

quite some time One of the

biggest public policy

challenges Ken Henry wants to

tack simple Australia's road

users prices system. When cars

drive on a conjested road they

impose costs on other

drivers. And that results in a

predictable what economists

refer to as tragedy of the

commons, which in this case is

estimated to waste around $#

billion a year in avoidable

congestion costs an amount

estimated to increase by 2020

to some $20 billion a year.

Such cost also onlies increase

with what now look like faster population growth. And of

course would increase with

faster economic growth. That

argument lead to a congestion

tax a London initiative that's

so far not travelled to

Australia. Taking you back to

that breaking story in the air

above Colorado. These are live

pictures now of the home-made

helium balloon in which a

6-year-old boy is thought to be

alone and trapped. It was a

home-made helium balloon, a

sibling saw him climb into it

and there is a possibility

according to CNN and the county

office that he might have

fallen out authorities have

been trying and operating on

the basis that he is trapped

inside. We can see here that

the balloon is deflating and

the authorities have actually

said that that is the only way

that this balloon is going to

come down and they won't be

able to get to him

otherwise. So that's in the sky

above Denver Colorado and we'll

be talking to Kim Landers our

Washington correspondent later

this morning and we'll cover

how that story unfolds.

Apparently the boy is inside. A

spokesman confirmed the boy was

inside the balloon and that's

been described as a home movie

made helium balloon made to

look like a UFO. So hopefully

there'll be a happy resolution

of that story and that boy will

get back to ground safely. Now

the financial crisis is over

for one of the world's most

prestigious banks. Goldman

Sachs have announced large

profits for third quarter. Its

net earnings were almost four

types higher than this time

last year. The profit comes

after the bank was bailed out

with billions of dollars from

the US taxpayers The concerns

about the hell of Thailand's

king has sent the country's

storkt plummeting by 5%.

Rhymers swirled that King

Bhumibol Aduljadej's health was

deteriorates. It was admitted

to hospital suffering fatigue.

The monarchy is a key

institution for political

stability in Thailand. To the

markets now -

In a few minutes vam will be

with us for a look at the national weather and also a

review of some of the

newspapers. This morning we'll

be joined by the 'Plain English' editor Andrew Pegler. But now with all the

sports news stheer Paul

Kennedy. Thank you. Good

morning. Victoria has pelted

its way to another victory of

the Champions League Twenty20

tournment in India. Keep in

mind that's the biggest win of

the competition and all but

gives the Bushrangers a

semifinal spot. Smashed back.

Beautifully struck. Cheek y.

Very cheeky. That's a good

shot. It's beat yep the man at

point. Going for the big shot.

It's got the desired result.

Catch it is the call and it's

taken. A good catch. It's

taken. He's right in... That's

in the air. He's caught in the

deep. Shot. What a shot. Right

through him. Gone. And that's

big. That is big from Hussey.

The biggest six of the game so

far. Six more. One to when

. Great effort there by the

Bushrangers and Andrew McDonald

took four wickets there. To

horse racing now, Bart Cummings

is determined to add a 7th

Caulfield Cup trophy to his

trophy kaubility. There's

weight in numbers this year and

will start three runners, more

than any other trainer. The

walk out to the centre might be

getting a bit taxing for Bart

Cummings, but the veteran

trainer vows there's nothing

slow about his three Caulfield

Cup runners. Viewed worked in

the dark and Cummings says he's

a good chance despite carrying

the top weight and a wide

barrier but he warns last

year's Melbourne Cup winner

suspect his only champion.

Roman Emperor is very pleasing

and if filly is going pretty

good too, so take your

pick. With door rack handicap

winners, it's a three pronged

attack. Got a few nice stayers

this year, so the owners would

like to have a crack t at

it And trainer Danny O'Brien is

still optimistic about the

chancers of Vigour and Master

O'Reilly despite drawing horror

barriers. There's so many

variables in this industry you

can't control and if you start

worrying about them, you'll

send yourself crazy. It is what

it is and you just move

forward At Sandown the

international runnersed a hair

final piece of work and it

seems like this one didn't like

the attention of being one of

the new favourites. He saw a

photographer and then she came

up behind me and it was a good

excuse to to have a buck and

can a kick In the punters are

right, Godolphin is on back

track for back-to-back cups

with Kirklees firming as

favourite. And just before I

hand back we'll look at some

cycling pictures from the great

tour that's going through

Victoria at the moment. That

one is the stage which brings

us up to today's big stage at

Geelong and it's more of the

same there. Terrible weather,

well great weather actually

because we love the rain but

not good for cycling and Chris

Sutton won the stage, Jonathon

Cantwell finished second and

Bradley Wiggins from Britain is

on the same team as Chris

Sutton and helped lead him out

to win that sprint there.

Bradley Wiggins is in third position at the moment and

we'll hear a very interesting

interview one-on-one a little

later in the program and he's a

bit of a character. He's having

a good time down and here and

he could still win this race

because there's the time trial

to go in Geelong today. So

where does that leave the

father-son come into. Chris sut

ongoing - he's leading at the

moment and he's going to try

and do what his dad did back in

'846789 he was got a really

good chance and but Bradley

Wiggins who knows what he can

do. He's one of the world's

greatest bike riders. News

Breakfast can be watched live

on the web from anywhere. Just

visit - Now with the weekend

weather and the's looking

pretty dry here is Vanessa

O'Hanlon? That's right Joe.

It's been great to see all the

rain about the south-east,

however, there are a few

showers left but most of them

will clear by tomorrow. Cry

into the weekend for the whole

country. Frt to today cold

again over the south-east with

patchy cloud in cool south wsly

winner. A few showers and

storms with cloud over the

north-west but clearer for the

rest of the country. A dry is

causing dry winds, they become

warm and gusty in WA N will

lead to a high fire danger . A

complex low pressure system is

sitting down over mere the

extending a trough into the Tasman Sea and that is

south-east. A high will move

towards Adelaide on Saturday

night and that will clear most

- of the showers. For Queensland

Of a

family home in the stator cold

rod yeahor it tarps 6-year-old

boy climbed inside it. How it

actually came to take off,

whether he unteethered it we

just don't know but since then

it has been sailing across the

air space of Colorado. It got

quite high at one stage,

several thousand feet into the

air now the balloon is rapidly

losing altitude. As you can see

from the pictures this is a

balloon that's like a cross

between a balloon and a flying

saucer it's filled with helium,

the boy is in a little basket

it's attached at the bomb only.

It's enclosed so we can't

actually see him. The situation

we've got now is the Colorado

national guard has launched a

couple of helicopters, they are

trying to figure out a way of

bringing this balloon down

gently, whether they attach

some weights to it, whether

somebody tries to repel don

into the balloon to get the

little boy so what we're seeing

is a procession of emergency

vehicles actually following

this balloon along tracking its

path, hoping to be there to

bring the balloon down safely

with the little boy

inside. Ers that thaemplt

we're looking at live picks

right now and it seems from

this angle quite close to the

ground. You're saying that

authorities are right right

from in place, obviously, the

cameras are pretty close. Has

there been any sighting of this

boy inside. There was some speg

lakes that the dire might have

been open or there was a plywood bottom that might have

given away. Nobody can actually

see the little boy and there is

a bit of confusion about

whether or not he fell out

right at the beginning. That is

absolutely unclear. There was a

politician official earlier at

the family home saying this was

an aircraft, experimental. It

wasn't meant to fly and perhaps

that explains why we've seen it

losing altitude. The heliumets

scaping from the balloon.

That's why rescue officials,

they have to make the

assumption that the 6-year-old

boy is still inside and that is

why they're trying to figure

oufrt the best way to rescue

him. The best case scenario is

if the balloon just gradually

losing altitude and

subsequently land in a paddock

somewhere but they've cleared

some of the air space, stopped some of the take you haves from

the Denver international

airport. This has been a major

mrnl situation there in cold

roddo. In fact, I think that

we're about to see it very

close to the groundment this

must be about to planned. I'm

not sure if you can see those

picks, Kim. No I can't. I can't

see those picks but it seems to

be from the description that

I'm also hearing it seems to be

getting almost gently I think,

if I can just interrupt . We're

seeing a man towards this

helium balloon now with can see

the scale of it. It's not that

large a man. He's got hold of

the rope. Running towards us.

He's gently landing on the

ground. He's got old of that

rope, that tether and now we're

state waiting to see is the

little 6-year-old boy inside

that very small basket. Obviously we'll be

staying with these picks. As

you say, these pictures have

been beamed live and we're

obviously seeing them here.

This must be just receiving

blanket coverage in the US as

well? Top top it's been a local television helicopter that has

followed the ba London now for

some time on its journey. Rise

rise now it is on the ground

because of the big silver

canopy, the mushroom canopy we

can't see see little the Basque

tote see if the little boy is

inside. Other the paramedics

and the mrnl services are there

on the scene. They've been

following obviously within

metres even though it has been

travelling so eratically. The

cameras are just trying to get

around the see what is

happening. Of course. Do we

have any idea of where his

parents are? No. The family was

at home. The farer this didn't

actually see the pa loon take

off and it was another child

that ran inside and said that

the balloon had taken off with

the other little boy inside and

it was a day off school today.

The local school was shut and

they have been mucking around

in the become yard there in

Colorado and we're seeing those

rescue workers now trying to

sort of teth they're balloon

down. Making sure it doesn't

take off again. There's a lot

of them gathered around that

basket but we've not seen

anyone yet try to actually

enter that little silver

basket Of course this being

expertal and this as far as I'm

concerned being pretty

unprecedented, no-one would

actually know what they might

encount owner what this little

boy has been through. The temperatures for one thing must

have just been freezing. It's

been very cold across that part

of the United States and of

course with those high

attitudes as I said at one

stage, this balloon was clocked

by a radar gun at going 40km/h

and it get to several thousand

feet, one can only assume that

it would have been very cold up

there. We don't know what the

Lille boy was wearing. And you

know how he might have been

able to endure those cold

temperatures but for some time

now it has been hovering at a

much lower level very close to

ground before as we saw gently

landing in that paddock. So the

priority for the emergency

workers in this situation is

obviously getting that pa loon

deflated. We all want to see if

this 0.is OK but their number

one priority is ensuring this

thing doesn't fly off again. It

looks look like now they have

got it deflated. We should see

soon. I can see them welling

stakes into it if you like to

pin it down but there was confusion earlier because this

was one media report saying

maybe he'd fallen out a few

hundred metres from his home

when it wasn't that high off

the ground. Certainly we have

had no word that anybody has

been able to find this

6-year-old boy and that is why

the rescue workers, the

Colorado national guard, the

helicopter pilots all those

people involved were making the assumption that the little

6-year-old boy is still

inside Yet the officials there

obviously now that they have

got it deflated they're not

November manage a manner that

would suggest immediately

obviously to untrained eye s

that we have a little boy in

there. It's hard to tell of

course from this distance? No,

it's very difficult to tell, we

can see emergency services

workers at the scene, fire and

rescue personnel but we haven't

seen anyone actually try to

broke over that little basket

beneath the now deflated silver

balloon. Kim Landers, thank you

very much for joining us. We'll

obviously be keeping right

across this story and see what

the outcome of that was. That

extraordinary rescue

effort. Indeed. Thank

you. Dozens of people have been

killed in Pakistan after a

series of terror attacks across

the country. Bomb and gun

blasts have targetsed police

and come as the military

increases air strikes fauging

people from their homes and

villages. In South Waziristan

tens of thousands of civilians

are on if move fearing they

could get caught up in the

approaching military offensive. The exodus of people

from South Waziristan began in

August but has now new

intensity . A steady stream of

vehicles is taking thousands

out of the region. As many as

200,000 people may on the move.

An increase in air strikes by

the Pakistan military is

forcing them from their homes

and villages. This family is

among the displaced. Our life

is very miss rabble due to

fighter jet bombing and mortar

shelling. It's difficult to sur

Dr Survive there At this

checkpoint alone 80 vehicles a

day are passing through. The

Pakistan army has not announced

whether it's started its

offensive against the Taliban

strong holds. But there are

reports 28,000 soldiers are in

the area blockading roads. The

military has barred access to

the media. The army's push into

South Waziristan may be

difficult with three previous

offences into the Taliban

heartland proving futile. The

soldiers may be spurred on my

recent attacks staged by

militants clouding the siege at

the weekend where they breached

the security of Pakistan's army

headquarters. In other news

this morning, the 255 Sri Lanka

asylum seekers on a boat in

West Java have gone on a hunger

strike . They're refusing to

leave their wooden bee. They

were stopped at sea on the

weekend. Naern authorities are

hoping they'll agree to move

into local hotels and guest

houses. There are about 20

bushfires in Queensland now.

From the State's centre to the

south-east. Homes were

evacuated at Mt Archer near Rockhampton in central Queensland is. The State's fire

and rescue service said

firefighters were also

combatting two blazes near Bundaberg. Bushfires in

northern NSW have scorched more

than 2,000 hectares of land and

continue to burn. The

Australian frorn affairs

Minister Stephen Smith has paid

tribute to victims of last

year's Mumbai terrorist attack.

He also met political and

business leaders to try to

restore Australia's reputation

after attacks on Indian

students in Sydney and

Melbourne. The PM Kevin Rudd

has added another 33 million to

Government spending to ease the impact of the economic

Brotherhood of St Laurence meltdown. He used the

Sambell Oration in Melbourne to

launch measures to help law

income earners. These include

no interest loanses and new

education programs. He also lambasted corporate behaviour

saying unrestrained and

unregulated greed was at the

core of the global financial crisis. The Opposition frontbencher Christopher Pyne

is predicting a win for Malcolm Turnbull on Emissions Trading

Scheme. He's told the ABC's 'Q

and A' program that Sunday's

Coalition party room meeting on

the ETS will overwhelmingly

accept the Opposition Leader's

position of moving amendments

to the Government legislation.

Mr Pyne says the Coalition

would regard improving a flawed

scheme as a major win Just

returning to that story that we

covered before about a

6-year-old boy who is thought

to be in peril in the air and

caught in an experimental

balloon. We're crossing back to

Kim Landers who joins us now

from Washington. There's been

news Kim? That's right.

Authorities are now confirming

that thelile 0.is not inside

that mushroom shaped silver

balloon that has been floating

across the skies north of

Denver in Colorado but there's

still a a mystery because the

report initially was from his

brother at the family home that

he was inside when this balloon

took off from the family's

backyard. So it's unclear now

exactly where the 6-year-old

boy is. Because apparently I think there was a door that

hadn't been quite secured on

the bottom. It's quite an

experimental little vessel so

therefore obviously no-one

really knows the capacities of

that vessel or the boy's able

to get out? Well one local

official has been saying

earlier that this was an

experimental aircraft Ha they weren't even sure if it was

supposed to be able to fly.

floated several thousand meet It's proven that today. It's

intors the air. It's travelled

many many commoorts, they were

also concerned that the basket

of this little what loon wasn't well attached to the rest of

the flying saucer shaped part

of the balloon, it's unclear if

this little boy got out shortly

after the p balloon took off,

if he's somewhere close by to

his home or if something else

has happened to him but there

are now several reports

confirming that this little boy

is not in that balloon which

has landed gently in a field in

Colorado. Kim landers thank you

for joining us from

Washington. Let's just hope

Foreign Minister Stephen Smith he's found OK. Australia's

has paid tribute to the victims

of last year's Mumbai terror

attack. Mr Smith made the

gesture as part of his visit to

India which is mostly to sure

up Australia's damaged

reputation as a place for

foreign students. Stephen Smith

went where Victoria's Premier

Jonathan Brown wouldn't. Mr

Brumby cancelled his visit to

Mumbai last month based on advice about the security situation there however the Australian Foreign Minister

made a point of including

India's largest city into his

schedule. And he took time to

sign a registry remembering

those killed when terrorists

opened fire on the historic Taj

Mahal hotel. We're making and

sending our expressions of

sympathy and condolence to the

friends and families of those

people who lost their lives in

the trerible attack But there

was also a wider purpose for

the visit. Mr Smith is the

latest politician to visit

India to help mend the damage

done to Australia's reputation

after a series of violent

attacks on Indian students. I

know you should rely upon the

wisdom and advice of your

teachers and your peers who

have gone to Australia, who

have almost exclusively had a

good experience. The Foreign

Minister's also pushing for a

free trade agreement with

India. Stephen Smith's visit is

intended to pave the way for

the PM Kevin Rudd who comes to

India in November. Then, it's

expected the free trade

agreement will be high on the agenda. And we're hoping that

we can take the level of the

relationship to a strategic

partnership and under the

umbrella of that look at

advancing a free trade

agreement. But the focus wasn't

all on those benefitting from India's economic growth.

Stephen Smith's public

relations tour also included

this day care centre for run

away children. But whether or

not the visit kicks any

long-term PR goals remains to

be seen. You're watching News

Breakfast. The top stories -

dozens of people have been killed in Pakistan after a

series of terror attacks. Gun

and bomb blasts left at least

38 people dead with the

majority of strikes targeting police. 255 Sri Lankan asylum

seekers on a boat in West Java

have gone on a hunger strike.

The ethic Tamils were

intercepted at sea on their way

to Australia and are refusing

to leave their boat in Merak Harbour. And about 20 blazes

are continuing to burn across central and south-east

Queensland. Hopes have been

evacuated at Mt Archer near Rockhampton in central

Queensland where firefighters

moved in to defend the

properties. For a look at the

national papers we're joined by the 'Plain English' editor

Andrew Pegler. Good

morning. This morning thorng it

seems that we're almost on par

with the Americans? The parity

party could be kicking off

break out the champagne and

cigars. Not quite yet but

target to a rather hawkish

speech from Glenn Stevens,

there is a scenario painted

that the dollar could go to

$1.10 and in fact after his

announcement the dollar then

jumped. He also mentioned in

his speech the word, the

Reserve Bank would not be "too

timid" when it comes to raising

interest rates further and we

know of course reading between

the lines for Reserve Bank

Governor lamb that's almost a

very loud call to action that in fact interest rates are

going to ratchet up over the

next little while Some commis

are now tape tipping a half

percent rise next month. I

heard this Joe, yeah. 50 basis

points. In one

hit. Shocking? That's a huge

hit. I also read something to

the effect of there is a

possibility there'll be search

rate rises over the next seven meetings taking the interest

rate to around about 5% in May. This sul because the

economy is improving but it's

not necessarily cause for

people to start jumping around

celebrating? Not absolutely. A

political level it's dividing a

little bit the Reserve Bank and the Government, the Reserve

Bank is pretty keen on them to

wiped back the stimulus and

Wayne Swan is of course keen to

sort of talk down the

possibilities of that. This is

all for political reasons.

Ultimately how that will play

out is just something up to

time. This is just one of the

latest articles that is kind of

forensic tea leaf lading that

is happening now with us every

day on the economy, we measure

every single strength of verb

that Glenn Stevens has, that

Wayne Swan, his sintasm, how

did his eye move move when he

said those words. Speak of

words I thought dish thick

Glenn Stevens is either beyond

a maths man and a bit of a word

man but whacking the word

emergency before the whole rate

rise situation was a stroke of

yeenous because of course it

gives him an out at every

point. Every emergency needs a

hero and that her wro is

Glen Keeping on finance, the

hero for consumers in yesterday

and today, the NAB? It is. It's

an unusual move by one of the

big fours to I don't think be a

bit nice I guess. What they've

done is they have abolished

fees for two of their most

popular accounts. This is some

fees, not all fees? Not automaticle All but one I

believe. Just on their premium

package? If you overwithdraw on

your cred card you use to get

whacked $3.5 million for doing

that, that's an exageration.

They've riced that to nothing.

What NAB have done is come

through, they've basically got

the run on the other three

panks, as being sort of

reacting against the woefr

overwhelming public distaste

with this fee situation,

they've taken the fees off

their classic and ebanking

accounts and the 25 dollar over

limit fee for credit cards and

late payments of $30 has been

reduced to $5. This is

basically something that's

costing them $130 million or

something like that but is

essentially a marketing move.

It's them advertising saying

that we're great? They would

have done the maths on this and

an advertising campaign would

cost X, Y and Z over five

years. It seems to the be the

way that banks will do

something about their fees. Surprised they've taken

the trouble considering there's

the competition has decreased pretty substantially over the

past couple of

years? Absolutely. Good point.

What can you say? People

magazine got the scoop that

everyone would have been

waiting for. They did. As we've

covered on the show before,

Jacyee who was the young girl

abducted and who spent 18 years

in captivity in the back of the

sex offenders yard in the US,

has released first photos of

herself as an adult and her

first statement through 'People

sct magazine in the US. She's

snapped in the magazine in

photos with her mother and her

sister and her two daughters

which were fathered by the

gentleman who... So the

children are actual

photographed? They're in the

photos but you do not see their

faces which is good

move. Apparently they're as

well educated, her children, as

other children have been,

despite the fact that they've

never been to school but have

been taught by Jayvee and she

was abducted at the age of 11

or something like that and was

able to educate them in that

process? I didn't know that.

That's an ad for home teaching

which is something that is happening. Hardly? Ure iegt.

There's also a shot of her on a

horse which she rides for

therapy we is a good thing and

she's adapting slowly but

sirely. This is the words

escape one when it comes to

this story Exactly. You would

look at this magazine most

readers would buy it obviously

through curiosity, but also

with a measure of relief that

they've heard this horrendously

traumatic story and seen this

smiling, such a smorl happy

face on top of a magazine,

that's surely what people have

been wanting to see Of course

looks are deceptive. You can

put the make-up, on do the

hair, take the shot but the

individual has to walk away and

live inside their own head As

your last story indicates? It

does. Looks are definitely

deceptive. A former raffle

Lauren model, if we can can get

that shot up, has, whose image

in a roundly criticised image

was digitalal slenderised as we

can see. The 'Age' has used 'slenderised' Don Watson might be interested in that

word. That world is not as

manged as that image that on

the left is one of the most

bizarre. What's the thrust of

the story. She's come on, had

the shot, raffle laurp has ral

ch Lauren have felt that she's

a little too big for their

shot. They've overslenderised

because her hips from broader

than her head and she looks

more like an alien than a model

so she's come out and been

sacked and she's come out and

said, "Listen that's not me. I

was slenderised and I'm not

very happy about it." Hope that

might be the end of those sort

of manipulations?. Let's hope

sew I don't think so. Thank you

for joining us. Bye. With sport here sport here is Paul

Kennedy. Thank you. Looks like

flat Stanley from the bookous

used to read. Straight to the

Crick fret India overnight. The Champions League, Victoria all

but ensured it will play in the

semifinals. That's lots of money for the Bushrangers

there. In racing, the old champion Bart Cummings is looking forward to having three

runners in the Caulfield Cup.

Viewside one of them and Bart

Cummings is a chance to win a Caulfield Cup for the first

time in many, many years and in

cycling, in the tour through

Victoria at the moment, Chris

Sutton is in the lead and

there's a big time trial today

in Geelong and ever everyone is

keen to see whether Bradley

Wiggins is make up the 30 or

second seconds and win that

race. Thank you. With a look at

the weather here is Vanessa

O'Hanlon. Thank you. A look at

today's satellite image shows

another cold day for the

south-east with patchy cloud ,

in cool south-westerly winds. A

little alpine show and snours.

Also a bit of cloud over the

future but a much clearer day

for for the rest of the

country. A high is drauz

causing dry - gustly winds A

complex low pressure system is extending a trough into the

south-east. A high will move towards Adelaide on Saturday night and that should clear

most of the showers. Around the

States for today -

Still ahead on News Breakfast

- we speak to Archie Law from

Action Aid as a new report

shows Australia lags behind

other developed countries when

it comes to foreign aid. And

we'll also bring you the latest

from the US where that little

boy was swept up in a home-made

air balloon, it's crashed back

to groundment he's not inside.

We don't know what's happened

to him at this stage. That's

coming up after this short

break.

This Program is Captioned

Live.

Militants strike in Pakistan,

dozens killed in a series of

gun and bomb attacks. Asylum

seekers on a boat in Indonesia

declare a hunger strike. Still

to word on a f-year-old

American 0.who was feared to be

on board a home-made balloon

swept into the air And Victoria

stamps its authority on the

Champions League with its

biggest win of the tournament

so far. Good morning. It's

Friday 16 October. I'm Joe

O'Brien. And I'm Mary Gearin.

The top story - at least 38

people have been killed in a

series of terrorist attacks in

Pakistan. Gunmen launched

coordinated assaults on police

centres in the city of

Lahore And a suicide bomber

also targetsed a police station

in the country's north-west.

More than 100 people have died

in similar attacks in Pakistan

over the past ten days. Police

ran for cover as terrorists

launched coordinated atabs in

Lahore. The heavily harmed

gunmen stormed the headquarters

of the Federal investigation

agency and two police training

centres. Hundred of recruits

were caught offguard. Commandos

were called in to hunt and kill

the attackers. We are searching the area at the moment. The

dead bodies of terrorists are