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Dozens of arrests as G-20

while Barack Obama and Gordon protesters clash with police

Brown maintain a united front

in the face of opposition from

France and Germany. Wayne Swan

says treasury will revise up Australia's unemployment figures in the May Budget. He

expects the jobless rate to

climb above 7%. The clean-up

is under way on the NSW north

coast but the extent of the

damage from the region's once

in a century floods may not be

known for days. And the

Socceroos still a hair's breath

away from securing a spot in the World Cup. Despite their

2-nil win over Uzbekistan. Good morning, it is

Thursday, the 2nd of April. I

am Virginia Trioli. I am Joe

O'Brien. The top story on ABC

News Breakfast - France and

Germany have united in calling

for tougher regulations on

financial markets ahead of the

G-20 summit. Meeting a day

before the summit gets under

way in London the French President Nicolas Sarkozy said the demands were

non-negotiable. World leader, including PM Kevin Rudd have

all gathered now at Buckingham

Palace where the Queen is

hosting a special dinner.

Earlier in the day thousands of protesters took to the streets

of London. Demonstrators smashed windows in the Royal

Bank of Scotland and dozenens

were arrested as they clashed

with police. As though

protests were going on, the US

President Barack Obama was

calling for global co-operation

at the G-20 summit saying now

is the time to act. All of us

here in London have the

responsibility to act with a

sense of urgency and every

nation that will be

participating has been affected

by a crisis that has cost us so

much in terms of jobs, savings

and the economic security of

our sit Zens. So make no

mistake, we are facing the most

severe economic crisis since

World War II. And the global

economy is now so fundamentally

interconnected that we can only

meet this challenge together.

For more the ABC's political

editor Chris Uhlmann joins us

now from London. Now Chris as

this meeting gets closer does

it appear the gap between

Europe and the ang Angelo

American nations is growing or

narrowing it? It would appear

it is growing because of course

on one side we have the US,

Britain and Australia on that

camp talking about the need for

more fiscal stimulus. Although

they have begun playing that

down a little this week because

they are saying of course there

has already been an enormous

amount of money poured into the

world economy, $2.5 trillion in

this calendar year they will

say. They had been arguing

earlier this want more next

financial year to keep that

growing. There has been a fairly vicious reaction from

Europe, and today after that

press conference with Barack

Obama and Gordon Brown there

Nicolas Sarkozy, the French was one with Angela Merkel and

President and they were talking

about the fact they wanted

regulation so. There are two

camps that appear to be set up.

So one talking about financial stimulus and the other one

talking more about regulation.

You might think that's a very

sharp divide but don't forget

they are also playing to domestic political audiences

and President Obama said he did

believe this was being

overplayed a little bit. The

divisions as we head into the conference. Well we will see.

But I did think during the

course of the press conference

if this is a crisis about

confidence it probably does

help to have a American

President who is jazz-cool.

The jazz-cool US President met

the Russian PM Dmitry Medvedev,

announcement. How significant and there was a nuclear

is that announcement? I think

it's very significant. They

are going to restart talks on really winding down the amount

of nuclear weapons those

country do have. And they

haven't been talking about that

since 1997. So that's a fair

while ago. And the

relationship between Russia and

the United States really did

deteriorate during the Bush

years and particularly over the

last few years. With them

feeling very threatened by

NATO's expansion. Essentially

they were feeling encircled by

that and we have seen outbreaks

on that over the last little

while. Thrargly in George -

particularly in Georgea. It is an important step for Barack

Obama. He does d say he is

here to listen as well as talk

and it looks like he is

beginning to mend some fence s

that were really knocked down during the last years of the

Bush administration. So I

think it's a very significant

thing and widely welcomed. Now

does it appear the worst of

these protests are over? Or is

it just a taste of things to

come? Well no you have moved

on there. But it is still

April Fools Day here and it has

been dubbed financial fools day

by those who took to the

streets today. About 4,000

people. A much smaller protest

really than we saw on the

weekend when 45 p, people - 35,000 people marched. That

was an entirely peaceful

protest. This was a mostly

peaceful protest. I did go

down to Trafalgar square and

there is a reasonable carnival

Royal Bank of Scotland they atmosphere. Although at the

broke windows there. A lot of anger about the Royal Bank of

Scotland of course. It was the

biggest - they lost $24 billion

and had to be bailed out by the government and the guy who used

to run it is now being called

"Fred the shred" here because

he left with a lot of money

while his bank had a lot of

debt. There had been ugly

scenes here but they have been reasonably contained. Anything could happen tomorrow. The

police have been worried about

this all week so we have to

wait and see. On a lighter

note Chris, Kevin Rudd usually

likes to tightly control eg but

it hasn't - everything but it

hasn't all gone to plan. Best

laid plan, outside the

residents of the Australian

High Commissioner in London.

He had a press conference this

afternoon with Wayne Swan. I

would have thought there was a

light breeze blowing. When he

had a little flag trouble.

The discussions in this

summit begined to but the

action happens tomorrow. P And

that action is critical for the

future of jobs around the

world. Person What sort of

action are we talking? First

we are... And Kevin Rudd didn't

miss a beat there Chris.

Hopefully not an omen Joe one

would hope. Chris Uhlmann in

London. Thanks very much for

that. In other news this morning the Treasurer Wayne

Swan says treasury will revise Australia's unemployment and

budget revenue predictions in

the May Budget. In February

the treasury forecasts that

Australia's jobless rate would

hit 7% by the middle of next

year. Wayne Swan says it is now clear that unemployment

will rise further. The

clean-up operation on the NSW

mid-north coast begins this

morning after this week's deaf

stating throods - deaf stating

floods, the area has been

declared a disaster zone. Of co-cough's mayor - Coffs

Harbour can's mayor says it

will be some time before the

extent of the damage is known.

Israel's new Foreign Minister

says his country won't be bound

by commitments made by the

previous government at a US sponsored peace conference two

years ago. Leeb - Avigdor

Leiberman says the Anapolis

Conference which pushes for a

Palestinian state has no

validity. The Obama

administration says it remains

committed to a two-state

solution to the conflict. A

42-year-old man will appear in

a South Australian court later

this morning after a violent rampage through the Mid-North

town of Snowtown. He allegedly

stabbed two women before driving his four-wheel drive

into two men. He has been

charged with four counts of attempted murder. Police say

there is no link between the

victims, some of whom are from

interstate. The captain of the

ship at the centre of a major

oil spill along Queensland's

south-east coast has been

summonsed to face court on

Friday. If the 47-year-old Phillipines national is found

responsible for last month's

spill he could be fined up to

$350,000. The owners of the ship, the 'Pacific Adventurer',

are already facing a

multi-million dollar cloon-up

bill.Returning to those

comments by the Federal

Treasurer Wayne Swan about the

expected rise in the jobless

rate. Wayne Swan spoke on

'Lateline' last night.

Certainly unemployment will be

higher than is currently

forecast. But we do update our

forecasts in the budget which

has been brought down early in

May. You see, the contraction

in the global economy and the

speed with which that has

happened is simply enormous.

There is no doubt there will be

tough choices in the Budget.

You correctly say that revenues

have been downgraded to the

tune of $115 billion. And I

think the downgrades will

certainly be greater than that

given these global forecasts we

are now seeing. Wayne Swan

speaking on 'Lateline' there.

A major search for survivors is

under way after a helicopter

crashed into the north sea off

the coast of Scotland. At

least 8 people have died and 16

people were believed to be on

board at the team. - time The

helicopter was flying back to

shore from BP's Miller Field

and came down off the

Aberdeenshire Coast. It was a

clear, bright day, there a gentle breeze but for some reason the helicopter came down

in the North Sea as it returned

to Aberdeen. The emergency

response was swift. As soon as

that distress call came in the

coastguard immediately got a

search and rescue operation

into place. Requested lifeboats to launch,

helicopters to get mobilised.

They all made their way

straight to the last known

position of this ditched

aircraft. Bond helicopters runs regular transfers to the

rigs. It trains its passengers

to survive a ditching. The sea

today is 8 degrees, survivable

fom some - for some hours but

coastguards found upturned life

rafts. It is the second super

puma the company lost last

year. The first all made it

out alive. Considering the

conditions in the North Sea the

operation has a good safety

record. The crews are

extremely well trained. A lot

of them are ex-military. Some

very experienced people here,

have been here almost since the

operation first started getting

on for 40 years ago.

Helicopters are vital to North

Sea oil and gas rigs, boats are

simply too slow. Tonight as an

investigation begins the

service is mourning a terrible

loss. Now let's take a look

at the front pages of the major

newspapers around the country.

'The Australian' reports a

federal treasury is preparing

for a new round oof fiscal stimulus next month's budget.

The paper runs with a photo of Kevin Rudd meeting the queet. The 'Financial Review' says

the Rudd Government will use

the May budget to offer more

support for the nation's 2

million small businesses.

'The Age' reports senior fundamentalral ministers and

industry leaders are laying the

ground for a sharp rise in unemployment which is now

forecast to pass 7% next year.

The 'Herald Sun' says a man

convicted of bashing a

91-year-old woman had 24

convictions, including previous

violent crimes but he never had

had been jailed. Aboriginal

sites and artefacts are being destroyed and disturbed at

record rates in NSW. The

'Daily Telegraph' says a string

of senior RTA executives have

been named in a NSW Ombudsman

report which has been referred

to the state's corruption

watchdog. The Adelaide

advertiser reports South

Australian Police have

impounded and clamped an

average of 8 cars a day in the

last nine months as they crack

down on hoons. Northern

Territory News says a former

police officer caught with

child pornography in his police

locker will serve just one

month of an 8 months sentence.

And the 'Courier Mail' reports a former Queensland police

officer who allegedly punched

and kicked a handcuffed tourist

faced court yesterday. The

mercury says a Tasman man

mutilated and murdered his

neighbour and then died trying

to conceal the crime by burning

down the victim's home o. And

the 'West Australian' reports

beer, wine and brandy drinkers

will be tarted by the Federal

Government in a - targeted by

the $3 billion budget spoop

swooch. We - swoop. We will

see the headline returns for

the "beer, Cigs up". Remember

those headlines? If you would

like to send an email -

Let's look at the top stories

this morning - Dozens are arrested in London as police

clash with protesters ahead of

the G-20 summit. US President

Barack Obama says world leaders

need to unite behind an action

plan to fight the global recession. But France says it

has called for tougher

financial regulation is non-neg

oshable. The Federal Treasurer

Wayne Swan says he now expects Australia's jobless rate to

rise above 7%. He blamed the

knock-on effect of the financial crisis but wouldn't

expect how high the

unemployment prediction will be

in the May budget. The

clean-up operation on the NSW

mid-north coast begins this

morning after this week's

devastating floods. The area

has been declared a disaster

zone and Coffs Harbour mayor

says it will be some time

before the extent of the damage

is known.

In WA, the State Government

has begun a crack down on

safety breaches at BHP Billiton

work sites after the deaths of

five workers in 8 months. The

government has described BHP

safety record as unacceptable

and is forcing the miner to

suspend operations at locations

where safety problems are

identified. Con Andrew

O'Connor is in the Perth news

rule. What is the government

doing to try to deal with the

safety breaches. The mines

minister has described this as

an unprecedented move. Saying

the situation at these BHP iron

ore operations in the Pilbara

is just unacceptable. I think

it's a measure of just how deeply concerned they are about

this latest series of deaths

under this new system what is

happens is government mines

ministers are issuing what's

called prohibition notices for

any safety breach they consider

is a hazard to workers.

Normally what happens on the

mines is if there is a safety

issue they are issued with

what's known as an improvement

notice. Which means the hazard

is identified but the work can

continue until such time as the

problem is wreckitified. Under

this new system work has to

stop until this problem is

fixed. This hardline approach

has been issue in the last

fortnight. There is a comprehensive safety review of

BHP under way. Why has the

government acted now ? It is

looking at all the safety

management systems that are in

place at BHP operations in the

Pilbara. But I suspect the

government just felt it simply

couldn't wait and act. It

issued a very stern warning to

BHP says it would not stand by

and let this situation

continue. The government

minister met with BHP last

Friday. And repeated that

warning, so I suspect they felt

they had to act straightaway

until that report is handed to

them. Which is due at the end

of this month. And has BHP

responded yet? BHP has not

made anyone available for

interview but they did issue a

statement yesterday

acknowledging the current

situation was in their words unacceptable to the business,

they apololgised to all those

involved and they did point out

they put in place a number of interim safety measures,

including things like cutting out all non-essential work

outside of daylight hours,

improving contractor safety and

a number of other measures that

they say will improve safety

until such time as the

recommendations of this more

come pro hence - comprehensive report are dealt with at the

end of the month. Andrew

thanks so much. Let's take a

look at finance news now and

the Ford motor company has

released a mixed report for

March. Sales for the number

two US car manufacturer slumped

by 40%. Compared to the same

time last year. On a more

positive note sales rebounded

sharply from February.

Analysts say the lift might

indicate a bottom in the

troubled sector. Splits

between word leaders are

threatening to derail talks at

London's G-20 summit. The Editor-In-Chief of the 'Economist' magazine John

Micklethwait told 'Lateline' it

was unlikely delegates will

come up with a compromise of

providing a second stimulus for

the global economy in 2010. He

disit missed threats by - he

dismissed threats by Nicolas

Sarkozy to walk out of the

summit as grandstanding. I

think there is more chance of a

deal on say the IMF where the

IMF could get a lot more money.

There is not much chance of a

deal when it comes to a global

financial regulator, despite

Nicolas Sarkozy threatening to

storm out if that didn't

happen. Did is one of those

meeting where in the end

something emerges, probably

less than the world needs,

perhaps little more than looks

likely when they go into the

room. But it is in everybody's

interest to at least give

appearance of unity I think.

In finance and stocks are

trading higher as world leaders

meet. The Dow is almost 2%

higher and the NASDAQ was up by

almost 1%. The S&P 500

increase bid 1.5%. The in

Europe the FTSE closed almost

1% higher. Oil is $49.6 US.

The Aussie dollar is buying -

in a few minutes Vanessa

O'Hanlon will be here with a

look at the national weather.

Also ahead we will have a

review of some of the newspapers today and this

morning our reviewer is Don

Henry, the executive director

of the Australian Conservation

Foundation. Now with sport and

some great news for the

Socceroos. Here is Paul

Kennedy. Thanks good morning.

Australia must wait until June

before celebrating the

Socceroos official entry into

the 2010 South Africa World Cup

but with a 2-nil victory over

Uzbekistan last night the team

is virtually assured its place.

Matt Conway has the match

report. Wet conditions

threatened to spoil the

Socceroos hopes of a stylish

entry into South Africa. And

it was the opposition that made

the more fashionable start. No

flag. Coparto with a shot

across the fate goal - face at

goal.

Australia struggled to find

cohesion as the inform Uzbeks

again broke forward. Mark

Bresciano latched on to the

best of the Australian chances shortly before the half time

break but the Socceroos found

themselves heading into the

change rooms empty-handed. He

has picked out the goalkeeper.

Doesn't look like a happy

coaching bench. It was a far more determined Australian

line-up that emerged from the

half time break. Garcia is

trying to pick out Kewell.

Kewell with the volley.

Uzbekistan looked like

matching the home side before

Mark Bresciano again found the

space and set up the Australian

break through. Bresciano,

Kennedy. Josh Kennedy. Made it

a goal to set Australia to the

World Cup. The midfielder was

again involved when he put

Richard Garcia through on goal.

Garcia goes down. Penalty.

Australia with a chance from

the spot. Harry Kewell was the

man chosen to send Australia

through in a fashion eerily

similar to the qualification

for the 2006 tournament. Same

stadium, stai same spot, same

result. Kewell. Cool.

Australia 2-nil. The World Cup

beckons. Congratulations to

them but again congratulations

to us because they worked very

hard and I am proud of every

sing the one of them. We will

send a statement to the rest of

the group now and possibly the

world we might be the first

team to qualify for the World

Cup. Australia will next meet

Qatar away before two home

matches against Bahrain and

Japan. We saw a demonstrable

Pim Verbeek on the side lines

after that Kennedy goal but he

was back to his cool and

calculated best. Let's hear

from Aussie Pim. We still have

a few tough game to come in

June. The sooner the better we

have the 13 points that should

be fantastic. And it is still

a tough team. Still a tough

team to play against and we had

had some players with injuries.

I didn't know they could play

for 90 minutes and they did a

great job. I'm very happy with

them. We knew Josh could never

play 90 minutes, it is a great

moment to bring him in. They

had some very good attack sos they made us a little bit

scared. Because they are the

first half we played too slow

tem tempo. We were afraid to

go forward. At half time we

spoke with the boys and said

"you go for it. You have to

win the game and play the ball

faster and put them under

pressure. The goal will come".

Exactly that happened. The

Aussies wand the Bahrain and

Qatar to draw their game this

morning. It would have meant automatic qualification for the

Socceroos but Bahrain won that

game 1-nil with this goal.

Driven low. It didn't get a

touch. Iesh as give Bahrain

the lead. And what a crucial

goal that could be. As Bahrain

try and stay alive on the road

to South Africa 2010. In the

other Asian pool South Korea

and North Korea remain on top likely to progress to South

Africa. The two teams played each other last night in Seoul.

It was a tense game as expected

but it was South Korea that

scored the only goal from a set

piece. The celebrations in

Sydney were mild compared to

the noise generated by the home

crowd. Or by the crowd here on

the coach. What are you doing?

Could have done a serious

injury there. A hook like

that! Spewing. My highlight

apart from the two goals last

night was the reaction of the

Uzbek who gave away that

penalty. I think we have got

the vision there. There he

goes. It was a 50-50 call that

one. Very wet conditions.

Very slippery. So hard to make the calls I reckon in

conditions like that. I am not

sure it justifies this man

predenieding he is on -

pretending he is on death's

door. Cynical Paul. It was a

bit of by-play because he

wanted to put more pressure on

Harry Kewell of course, but as

all the headlines are this

morning, he was Kewell as a

cucumber and settled himself.

Waited for the guy to get

stretchered off. There was a

point made in that package

about how it was the same goal,

same field as the Aloisi.

Exactly the same spot. The

goalkeeper guessed the right

way but it was expertly taken.

So what basically happened last

night for those who didn't

watch or listen to the game was

that the Uzbeks were really

good, really polished and quite

well set up defensively. And counter attacked to the first

half. But in the last 20

minutes they just seemed to run

out of legs. The game they

played against Qatar only four

nights ago really took its toll

in the last 20 minutes. A

little bit of space opened up.

Kennedy actually, Verbeek said

he knew Kennedy couldn't play

the 90 minutes so he left him

as an impact player and brought

him on with 25, 30 minutes to

go and virtually I think it was

his second touch of the ball

was that header that went into

the goal. It would have been

so tough heading a slippery

ball into the net like that.

Amazing. They were different conditions but the good thing

for the Aussies was the

conditions were a little bit

like European conditions. They

play in a lot of slippery

conditions over there. And Tim

Cahill didn't even - wasn't

even needed to come off the

bench once they went 2-nil up

McKay - Tim Cahill just sat it

out and relaxed. Going into

the game they said the

Australian strategy was going

toing attack, attack, attack

and the Uzbeks were going to

keep it pretty tight. Is that

how it played out? The Aussies

tried to attack in the first

five or 10 minutes but what

happened was a couple of

counter attacks from thes becks

really - Uzbeks really rattled

them a little bit and so they

played defensive slower type of

football until the half time.

And then they got around, had a

bid - bit of a word and decided

to attack in the second half.

It opened up for them. A bit

of a stat here. The ticket

sales have been opened to the

public. It's a ballot system

but you can put in your

preferences and I think there

is 2 million people have

responded to that. This is

already for South Africa? For

South Africa next year and the

5th most applications from a

country have been Australia.

So that just goes to show that

we are pretty close. Pretty

optimistic too. And that

tremendous local support here

in Australia for any, really,

tour that's going on. We will

all head off and go and get on

board if we can. We can sniff

a tour. And regardless of

those conditions last night it

looked horrible in Sydney but

there was a big crowd there.

There was a big crowd there.

Up near 60,000 people. There

is a lot of World Cup

qualifiers going on as we speak

and too many for us to get

across. Italy is 1-nil up at

the moment against....

Against. Who are they

playing? Sorry to put you on

the spot here, Against Ireland

and so they are 1-nil up

against Ireland and Germany is

1-nil up against Wales. We

will show you those goals a

little bit later on but we

can't show you everything. So

if you want to Twitter or text

or do what you want to do ask

us for a result and we can get

that for you. Come on Paul. We

want everything! No worries,

just ask and I will give it to

you. ABC News Breakfast can be

watched live on the web from

anywhere. Visit -

Here is Vanessa O'Hanlon with

the weather and there is still

warnings in NSW. That's right.

Rain is expected again today.

The warnings are for flash

flooding current for the rivers and Mid-North coast. There is a chance there will be major

surf conditions as well. A

trough is moving into SA. This

is bringing a cool change to

Adelaide around lunchtime

today. By tomorrow morning

that change will have reached

the whole of the state. And by

the weekend the temperatures

will be back around 20 degrees.

The trough off NSW is

weakening. We also have a low sitting off Queensland and that

is drifting north but won't

weaken until tomorrow. Combined with thick cloud

though there will be frequent

showers, heavy at times in NSW

and at South East Queensland

and the cloud sweeping into the south-west will cause a few

showers over the coast. For

Queensland rain and

thunderstorms spreading across

the south-east. Some of the

falls expected to be heavier

near the south coast of

Bundaberg. NSW rain and thunderstorms with most

easterly winds over the

eastern parts and coasts Victoria showers in the east,

decent falls up to 25mm

expected tomorrow. Evening

drizzle over the south-west

coast. Tasmania, apart from

morning drizzle over the north

and north-east and isolated

morning fog patches you are in

for a line day with light -

fine day with light

north-easterly winds. SA, warm

north-easterlies will persist.

By midday that cool change

sweep through Adelaide. This

morning there will be isolated

showers near the west and

south-east coast of WA.

Isolated showers and storms

near the north east Kimberley

coast and more signs the dry

season is here, another fine and sunny day in the territory -

See you in half an hour.

The top story on ABC News

Breakfast - France and Germany

have United in calling for tougher regulations on

financial markets ahead of the

G-20 Summit. Meeting a day

before the summit gets underway

the French President says the

demands were non-neg ocialable.

Earlier in the day thousands

of protesters took to the

streets of the British capital. Demonstrators smashed windows

at the Royal Bank of Scotland

and dozens were arrested as

they clashed with police. This

report from the BBC.

It was the moment when

protests turned to disorder.

As anarchists surrounded by

photographers smashed their way

into the Royal Bank of Scotland

right next to the Bank of

England. There were moments

when the police came close to

losing control, as the crowd

swirled around the maze of

streets in the heart of the

city. London's financial

district. But the demonstrators

only numbered a few thousand

and the real trouble-makers far

fewer than that.

At times the police chose to

deploy in riot helmets. And

at least one of the crowd

appeared to have been injured.

Though he continues to taunt

officers.

And once again, scuffles broke out between police and

protesters. They got stick

and helmets and we have got

nothing at all. They knocked

his teeth out. They hit me in

the head twice. The disorder

didn't compare to the polt axe

riots or the June the 18th

protests of 1999 but on more

than one occasion the police

were forced to make a tactical retreat.

And several people were

arrested. This man for

allegedly breaching the peace.

It is our right to protest,

to show these people up here

what people are prepared to do

to show them what people feel.

Much of the anger was

directed at the bankers but it

wasn't allowed to spiral out of

control. In a tactic we have

seen before police officers

have hemmed in the protesters

on all sides around the Bank of

England preventing anyone from

leaving the dem it station or

join - demonstration or joining

it. There were certain

elements in that crowd that

were being provocative to

police. They have caused

damage to at least one bank.

We will see what other damage

has been caused as we move

forward and I think they were

determined to spoil the day and

spoil the message for some of

the other protesters who have

come to the city of London

today. Police in London didn't

only have to deal with

protesters converging on the Bank of England from four

different directions, they also

had to handle a separate

demonstration just up the road

in bishop's gate. This time a

climate camp. The campers had

run on to the road and quickly

blocked the traffic with their

easy to assemble tents. They

say they planned to ospend the

night in the city to highlight

their concerns about global

warming. I think protest ing

is the only way we can do it

now. I don't know what else to

do. Everyone feels powerless

and everyone is angry and there

is not anyone in this country

who doesn't care about the

future of their children. But

the peaceful climate change

protest was drowned out by the bloody clashes around the Bank

of England. So the protests no

doubt will continue for the

next couple of days. What is

your view on the protests? The

arguments of the protesters are

making? Remember you can

always make a contribution

yourself to ABC News Breakfast.

Send us an email to -

In other news, the Treasurer

Wayne Swan says treasury will

revise Australia's unemployment

and budget revenue predictions

in the May budget. In February

the treasury forecasts that

Australia's jobless rate will

hit 7% by midway through next

year. Wayne Swan now say it is

is clear unemployment will rise

further. The clean-up operation

on the NSW mid north coast begins this morning after this

week's devastating floods. The

area has been declared a

disaster zone. It will be some

time before the full extent of

the damage is known. More rab

has been fore - rain has been

for cast for today and there

could be more flash flooding

here the Queensland border as

the rain front moves north.

Israel's Foreign Minister says

his country won't be bound by

commitments made by the

previous government at a US

sponsored conference two years

ago Avigdor Leiberman said the

Anapolis Conference which

pushed for an independent

Palestinian state has no

validity. The Obama

administration responded by

saying it remained committed to

a two-state exclusion to the

conflict. A 42-year-old man

will appear in a South

Australian court later this

morning after a violent rampage

through the Mid-North town of

Snowtown. He allegedly stabbed

two women before driving his four-wheel drive into two men.

He has been charged with four

counts of attempted murder.

Police say there is no link

between the victims, some of

whom are from interstatement -

interstate. The captain of the

ship at the centre of a major

oil smile along Queensland's -

spill along Queensland's south

east coast has been ordered to

face court on Friday. If the

47 Phillipines national is

found responsible for last

month's spill he could be fined

up to $350,000. The owners of

the ship, the 'Pacific

Adventurer', are already facing

a multi-billion dollar -

multi-million dollar clean-up

vil. Villagers in the Indian

state of Uttar Pradesh have

banded together to politicians

to improve living standards.

Now the villagers want

candidates to sign a pact to

honour their promises. India correspondent Michael Coggan

reports.

The locals in this village in Uttar Pradesh say the

groundwater in this region has

been contaminated for decades

by chemicals from thousands of

factories operating nearby.

TRANSLATION: This problem

started in 1972. Government

promises they have come and

gone. They promised that they

would do something about it but

nothing has happened so far.

Even the governor came but

nothing happened. The problem

continues. The water hasn't

been tested, but the village

chief says 25% of people living

in this area have serious

health problems caused by the

water. TRANSLATION: People

have no choice but to drink

that water. And that water

contains fluoride and pollutans

from chemical industries and

leather industries from Kam

pur. Here the failure of

politicians to deliver on water

quality has lead villagers to

consider boycotting this

month's general election s. In

response to these concerns a non-government organisation is

encouraging the villagers to

pressure candidates to sign

development pacts. Agrees to

honour their promises to improve water quality if they

win office. We help people

prepare the pact, which is a

piece of paper basically where

they put down demands and when

political representatives from

parties, different party they

come asking for votes they ask

them to sign on a pact. The

man who leads the 8 village

assembly in this area has

embraced the idea. TRANSLATION: Initially we

thought of boycotting the

election. But on assurance of

intervention of transparency international India we have

decided to vote. But we will

demand politicians sign the

development pact. No election

candidates have agreed to

support a development pact yet

but if they come looking for

votes here they will have to

sign up or face a boycott.

it wasn't supposed to happen

until next year, but soon

Malaysia will have its 6th PM. Malaysia's PM Abdullah Badawi

is due to meet the King to

inform him of his decision to

resign from the country's top

job. It marks the end of a

short and tumultuous reign at

the helm. One undoubtedly

hastened by the government's

unprecedented set back at last

year's elections. Huey Fern

Tay reports.

Malaysia's PM, Abdullah

Badawi, once seemed

untouchable. He had the image

of a clean and gentle man. He

made promises about stamping

out corruption. And with that

he won the hearts of many

Malaysians. Abdullah Badawi

came in had with an enormous

amount of goodwill and a lot of

hope. Hope there would be some

kind of a change. And he

initially capitalised on that

hope that he will be a reformer

or an agent of change and won

an enormous mandate at the 2004

elections. People then believed he would deliver that

change.

But the honeymoon was soon

over and last March for the

first time in history the

government was humbled at the

polls. PM Abdullah Badawi's predecessor and mentor was

furious. My view was he had

destroyed a mood. Destroyed

the end. And he had been

responsible for this massive,

massive, massive behaviour.

What went wrong in the space

of just four years? Public

disappointment specially with

the level of corruption. The

PM insisted his clean-up drive

was working. I have taken two

approach. I have said so. One

is preventive. You must

prevent. Preventive measures

is very important. The other

one is curetive. That is what

we are doing. With perception

is too strong. Perception is

too strong. Perception that

people in public office are

corrupt. Long time observers

of Malaysian politics say the

plan was just too ambitious.

Anyone in Malaysia what wants

to be a reformer has to take on

and disentangle a knot of very,

very murky interesting that are

not simply influential upon or

within, but they are the Umno

these days so to do anything

about them Badawi would have

had to dismantled the very

basis of his own power and the

Umno's power and what else he

may have been, Badawi was never

a Malaysian Gorbachev, Yet the

PM has persisted in trying to

leave behind a leg of reform.

- legacy of reform. Despite

having to fend off calls for

his resignation over the last

year. Rchts TRANSLATION: Umno

must change and I want to hear

those voices calling out for

change. This is what we need

to do, as well as the brave

acts to reform internally. It

is unfortunate if Umno fails to

change but if we don't change

ourselves Umno will not be

changed. PM Abdullah Badawi's term

will come to an end soon. He

denies he was pushed to make

way for his deputy. But even

before the handover is

complete, there is much anxiety

about what future holds. Huey

Fern Tay with that report. In

Sydney police say they have

arrested an associate of the

Rebels bikie gang as part of

their crack down on law

motorcycle gands. The Fairfax

media reports the NSW

government is expected to rush

anti-bikie legislation through

the state parliament today.

For more Tracy Kirkland joins

us from Sydney. What did

police find? They went into a

unit in rockdale which is in

Sydney's south with a search

warrant around found a large

selection of weapons, including

a pump action shotgun. They

found drugs, mostly steroids

and the 36-year-old man who

they say this is an associate

of the Rebels bikie gang, he was discharged with weapons

offences and drugs offences.

For possession of weapons and

drugs and he will appear in

court today. So he is known or

regarded by police as an

associate rather than a member

of the bikie gang? Is that a

accept difference there? They

are not saying exactly why they

are saying that. They know he

is involved with the bikie

gangs. That he hangs around

them, if you want to say, he

meets with them. But they are

not saying that he was a member, an official member of

the club. The reason I ask that of course is in relation

to the legislation the

government is going to rush

through. Of course that still

won't be through in time to -

for this case to be dealt with.

He will be charged under

current legislation. That's

right. That's right. But

Nathan Rees is trying to bring

this legislation forward. He

was going to try it in a few

months but they are really,

really trying to crack down on

the bikie gangs meeting

together or the bikie clubs

meeting together and that's

what this new legislation aims

to do. What they want is to

give the Police Commissioner

power to call these clubs

criminal organisations, if

that's what they think did - is

going on and that will mean the

club members won't be able to

actually meet and if they do

meet they face prosecution. So

we are expecting to see that in

state parliament today and we

will know from there. Thanks

so much. Now for more on the

G-20 summit and not all eyes

are on the world leaders

gathered in London. Most have

now arrived with their spouses,

and the world as most high

powers first wives club with

Michelle Obama as the leader.

The BBC with this report. With

their husbands pointing the way

for the world economy Mrs Brown

and Mrs Obama have their own

path to follow. The wives are

busy conducting a little

personal diplomacy all of their

own. Michelle Obama was

dressed glamourously but said

the fashion experts, without a

levy price tag. Clearly a nod

to the times. Despite the

intense security and secrecy

surrounding their visit news

soon got out she was here and

workers stopped to watch and

passers by lined the streets to

get a glimpse and perhaps a

shot of the first lady.

Spouses tend to be scene but

not heard. About I asked - Mrs

Obama how is it to be in

Britain? great, she said. But

that's all she said. Clearly

wanting to leave the public

speaking to her husband. At

Sarah Brown made the tea

Michelle Obama chatted to

visitors of the centre. It is

for cancer sufferers and Mrs

Brown is patron for the

charity who runs it. But dot American guests do tea? I

will. Perhaps she would have preferred coffee but when in

England do as the English was

clearly her motto. Askancer

sufferers - as cancer

sufferers who met her were

charmed. A lovely lady. And

very interested in the

children. Her daughter Maisy

had a very special autoograph.

The times spent together by

the two first ladies would have

been invaluable. For getting

to know each other and for

cementing that special

relationship. This evening all

the wives will enjoy a meal at

number 10 cooked by Jamie

Oliver. On the menu the best

of British Scottish salmon

and lamb. And she will be

seated between Katy Holmes and

JKRowling. The BBC seem to be

going absolutely nuts for

Michelle Obama. I think it

follows them everywhere they

go. You are watching ABC News

Breakfast. Dozens are arrested

in London as police clash with

protesters ahead of the G-20

summit. US President Barack

Obama says word leaders need to

unite behind an action plan to

fight the global recession but

France says it has called for

tougher financial regulation is

non-negotiable. The The Federal Treasurer Wayne Swan

say s he now expects Australia's jobless rate to

rise above 7%. Wayne Swan

blames the knock-on effect of

the financial crisis but he

wouldn't speculate over how

high the unemployment

prediction will be in the May

budget. The clean-up operation

on the NSW mid-north coast

begins this morning after this

week's devastating floods. The

area has been declare aid disaster zone and Coffs

Harbour's mayor says it will be

some time before the extent of

the damage is known.

And for a look at the national papers today we are

joined by Don Henry the

executive director of the Australian Conservation

Foundation. Good morning.

Good morning Virginia. Hi

Joe. How are you? With your first story this morning you

are playing to your strength of

course. I thought I would try

to get off on a first spot

that's not too uncomfortable.

Virginia, in the 'The Age' it is also in the 'Sydney Morning

Herald' toold there is a pick -

today there is a pick-up that

congressman Waxman in the US,

has released new US legislation

for a US Emmissions Trading Scheme and I think there is a

couple of interesting things in

it that we can see. One is, it

has got stronger targets than

what's on the table of legislation here in Australia,

the other is it really boosts regulation of renewable energy

and fuel efficiency and growing

green jobs. So some ways it's

a wake-up call for us here in

Australia that now the

legislation coming into the US

is stronger than what we have

got here. Do you hold out any

hope it might drag Australia

along that path? In terms of

directing more stimulus money

towards green initiative? I

hope so, because I think it

says - the rest of the world is starting to move and this is good news on climate change.

But it also means we have got

that opportunity to grow green

jobs, and we will be foolish if

we let the US get too far ahead

of us. So I hope it does send

a signal to our parliament and

decision mag er s - makers we

can and should do more here.

It can be good for the climate

and jobs as well. And it shows

Bruce Walpy is doing his job.

He used to be the chief PR at

Fairfax. He is now the chief

adviser to congressman Waxman.

He is doing a very good job. The government of Victoria is

really urging us to do our own

bit in our own lives. He is

saying we should use more

public transport. Smaller

homes and really look as ways

of cutting our own emissions.

We have got a juxtaposition of

the global and local here.

That's not bad. It should be

pointed out that US legislation

is draft legislation. It is

draft legislation, just as our legislation here is in

Australia. It is a very

important time for us to be

look agt what the rest of the

world is doing and make sure we

are not left behind, It's also

a topic pushed off the front

pages by your next topic you

want to talk about. Which is

the possibility for another

stimulus package by the Rudd

Government. Yes. So this just

starting to air now and it also

reflecting in the debates of

the G-20. But what we are

seeing in the Australian

reported is some serious

thinking that the government

will look at a new stimulus

package as part of the budget

process. And the idea behind

this is obviously to try and

boost jobs now, and that's

probably quite important given

how that the recession is now

perhaps looking more serious and people have anticipated

even a couple of weeks ago. It

is going to open a debate as to

how much of our children's

money we should be spending now

on this recession, So I think

there's a fair bit to wash

under the bridge on that as

well. It will be interesting

to see the opposition's take on

that, considering what it has

had to say about the previous

stimulus packages. Exactly. I

think this will have a link to

the G-20 as well by the way

because we are seeing unfold in

the news this morning this

debate France and Germany, not

that keen on stimulus and

saying "we have got to do more

regulation" and Australia, US,

and Britain saying "look

stimulus is the way to go". So

this is going to be a very

important global and domestic

debate over the next couple of

weeks. It will be a very

fascinating budget to see how

it is framed then because we

know there will be severe

cutbacks in the budget as well

as spending option as well.

That's going to be a very unwieldy little machine they

wheel out. It is going to be a

mix of tough machine and lolly

and I suppose depending where

your interests lie you hope you

will be on the local English

lollies side. And the

'Financial Review'. I thought

with the G-20 meeting on, I

mean we see a lot of politics

we see on the televisions the

protests and the like.

Probably like most people I

struggle to get in behind it.

What's going on. And this is

quite a good piece in the

'Financial Review' which looks

at what is actually being

discussed in the G-20. So apart from the froth and

bubble, I wouldn't suggest that

Mrs Obama's interests she is

generating over there is in

that class at all. But into

the details, this actually

looks at, what's gone wrong,

what are the leaders really

need to talk about? What's the

different options they are

looking at? And it also gives

a little bit of a historical

perspective on international

decisions before. So I find

that quite useful for a little

bit of background in what's

going on. And did that give

you an insight as to how far

the countries are apart?

Europe and the Angelo American

countries in turns of greater

regulation? There are other

pieces in the 'Financial

Review' and in the rest of the

press today that looks at those

issues and once again on

breaking news now, we are

seeing the French dig in and

say "hoy, regulation has got to

be passed now. We are not

going to back stimulus unless

that happens". We may even see

some brinksmanship tonight

Australian time. What did you

find in that piece that was

particularly illuminate ing for

you? In some ways what is

interesting is 50 years ago at

Bretton Woods leaders got

together and tried to fix what

was perceived to be a broken

financial system. And it's a

little bit surprising for me we haven't actually gone in to fix

that before now. We have

waited for the train crash

before we say "whoops, the

leader better get together and

see if we can do better here".

I hope in some ways it is a

real chance to refresh what we

are trying to get out of our

financial systems. I think the

important thing here is not

just money, they have got to

work for our common good as

well. Enough of the politics,

let's have sport. Excuse me on

this one. But I thought

overnight... No need for you to

be excused. We have been talking about this all morning.

I think for a lot of Australians their hearts would

have beaten just a little bit stronger knowing Australia won

in the soccer last night and we

are literally now just a

heartbeat away from qualifying

from the World Cup soccer. I

think no matter what sport one

follows in Australia the World

Cup grabs everyone's

imagination. Quite exciting.

Not quite there but within a

whisker. The World Cup dream

is such a long and cherished

one in Australia. It does seem

with this remarkable team, it

stops me a bit and I wonder why

it has taken so long for us to

get as far along that path as

we have wanted to. I think -

and Joe may know a bit more

about this than I I suspect.

But the qualification has made it difficult for Australia in

the past. We have got - a

better process now assuming we

can do the right thing with the

boot. So this could be quite

interesting this time around I

think. You are feeling

confident aren't you Joe? We

are a shoe-in now. I am glad

he is feeling that way. Always

good to see you Don. Thanks so

much. Great pleasure. Thank

you. A reminder you can watch

all of ABC News Breakfast

streamed every morning. With

more sport here is Paul

Kennedy. We won't stray too

far away from the football this

morning. The Socceroos beat

Uzbekistan 2-nil last night.

About 60,000 people turned up

despite the rain in Sydney.

The second half saw Kennedy

brought off the bench with immediate success and when

Uzbekistan gave away a penalty,

there is Pim Verbeek going off

on the sidelines. A penalty a

little while later it was asked

of Harry Kewell to step up and

take the penalty. He slotted

it very coolly. Now Bahrain

beat Qatar 1-nil. So Australia

hasn't yet qualified for the

finals but by jooup June it

will be made official. Let's

hear from that man now. Here

is Harry Kewell. It is nice to

be in this position, but again

we are - we can rely on this

game today but we have still

got three games and we want to

continue winning form and we

want to go into a World Cup

winning all the games possible.

You don't want to come in off

three or four bad games, you

want to come off three or four

good wins. Everyone thing s

these teams are easy. They are

not. They can all play. They

are quick and strong. People

have got to realise that we are

not playing the likes of the

other teams we used to play

when we used to win 15, 16-nil.

This is World Cup qualifying

and these players can actually

play the game. 1-nil. 2-nil.

3-nil. They are all great

results. 18 other World Cup

qualifiers are being played

this morning. These are progress scores from five

match, England just scored

before half time. Let's look

at a co