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(generated from captions) This program is captioned live. This morning - on a rock-fishing trip. five people feared swept away a bid to secure power for his party. Gordon Brown announces he'll go in death row, who's converted to Islam. And the Bali Nine inmate on with Simon Reeve. VOICEOVER: This is Seven Early News Good morning. have drowned Police fear up to five people

from a rock-fishing trip after failing to return north of Sydney on Sunday. believed to be part of the group, The body of a woman in her 50s, late yesterday. was pulled from the ocean will resume later this morning. The search for the other four near Catherine Hill Bay, The woman's body was found the New South Wales Central Coast. a secluded inlet on region's deadliest fishing spots. It's also known as one of the continued the grid search As police boats operations after dark. officers scaled back aerial and land are still missing. Three men and another woman and a 25-year-old man The group of two couples on Sunday afternoon. set out to go rock-fishing raised the alarm The young man's grandmother when they weren't home by Monday. Vincent Chan Family friend and fishing mate for five years. said the group had been coming here and wave conditions before we come. We always check the weather forecast They thought it was safe. We don't even fish in the ocean. away from the open sea. It's a little inlet and weren't wearing life vests. He says they couldn't all swim

and take all the precautions. We know the dangers for the four anglers still missing. Police hold grave fears this morning. The full search will resume is promising no frills Treasurer Wayne Swan Federal budget tonight. when he hands down his third Andrew Greene Seven political reporter takes a look at the Government's

election-year spending plan. highly anticipated has been lowering expectations For several days, the Treasurer on this budget, it's nothing to be excited about. telling voters for the past two of years, After spending big

what it calls a responsible budget Labor is now preparing to hand down we saw the freshly printed copies and last night, of this highly confidential document here at Parliament. arrive hot off the presses papers has already been announced - Much of what's contained in those we'll see new health spending and for companies. and tax cuts for individuals there'll also be new taxes And, of course, and the mining industry as well. on tobacco But there is also some speculation

on bank interest about a possible tax cut in every doctor's surgery. as well as funding for a nurse taking a hammering Now, with the Government's finances during the global crisis for big announcements the Treasurer doesn't have much room this election-year budget and Wayne Swan is unveiling of recent horror opinion polls. as Labor reels from a series sliding popularity Last night, the Government's high on the agenda was almost certain to have been at the Lodge for Labor backbenchers. as Kevin Rudd hosted drinks third budget tonight But whether Wayne Swan's out of its poll slump is enough to get the Government we'll find out in the next few days. from Canberra tomorrow morning And Kochie will be live and how it will affect you. for the Budget wash-up in the UK There's been a dramatic development Gordon Brown announcing he'll quit with the British Prime Minister back in power. in a bid to get his Labour Party to the Liberal Democrats, It's a big olive branch parties to secure a leadership deal. who are in talks with both major emerged into Downing Street The Prime Minister in a few months to announce that he would resign the chance to cling onto power. so that his party might have Mr Clegg has just informed me to continue his dialogue that while he intends with the Conservatives, that he has begun formal discussions he now wishes also to take forward with the Labour Party. a hung Parliament The reason that we have and no single leader is that no single party of the country. was able to win the full support As the leader of my party, that is a judgement on me. I must accept that intend to ask the Labour Party I, therefore, for its own leadership election. to set in train the processes needed So what on earth is happening? and the Tories Well, talks between the Lib Dems seem to be going smoothly. sounding positive. Both sides emerged

Well, we've made further progress Liberal Democrats this morning. in our meetings with the report back to David Cameron again On our part, we're now going to parliamentary colleagues and to have meetings with our working really well together. and the negotiating teams, um, was not a pre-condition of any deal Nick Clegg had always insisted PR but it seems that perhaps it is. the responsible thing, We think it's the right thing, on exactly the same basis to now open talks with the Conservative Party as we've been having

with the Labour Party. discussions with the Conservatives. Plus, of course, continuing our Scott Rush Convicted Bali Nine drug courier is reportedly converting to Islam. inmate has been circumcised Fairfax is reporting the death-row inside Kerobokan jail. in an Islamic ritual has confirmed A prison medical officer the procedure took place last week. Rush has previously said with his Christian beliefs. he's struggled He's been in prison for five years against his death sentence and will lodge a final legal appeal later this year. are on their way to Christmas Island More than 120 asylum seekers off Australia's north-west. after two boats were intercepted with 36 passengers onboard, The first boat, north of Ashmore Island. was detected yesterday afternoon Later in the evening, near Christmas Island, a second vessel was stopped carrying 86 people. so far this year. 54 boats have been intercepted Licensing officials will investigate supermarkets caught selling alcohol online to under 18s.

Woolworths and Coles drivers were caught on camera by Seven News delivering cases of beer and spirits to an underage girl. This is something we need to go away and thoroughly investigate and really get down to the bottom of how on earth this could have happened. The New South Wales Premier has ordered liquor and gaming officials to investigate the extent of the problem. The supermarkets deny claims from drivers and their union that they're under time pressure to make deliveries. A mother whose three children drowned in a Victorian dam says she hates her ex-husband and wants him convicted of their murder. Cindy Gambino broke down several times while giving evidence, once when video of her sons in the bath was played in court. Robert Farquharson allegedly killed the boys by driving his car, with them inside, into a dam on Father's Day, 2005.

Ms Gambino told the court she supported Farquharson for two years after the boys died but her psychiatrist said her denial was stopping her dealing with grief.

The trial continues today. A Sydney jury will resume deliberations this morning in the trial of a man accused of pushing his new wife off a cliff. Des Campbell allegedly murdered Janet Fisicaro in 2005 during a camping trip in the Royal National Park, south of Sydney. The judge told the jury not to be swayed by sympathy for the victim or dislike of the accused. The court heard unflattering accusations about his personal life, including numerous affairs. Police are still trying to work out how long an injured man, found yesterday, was stranded in suburban bushland in Sydney's north. Tennis players heard the 30-year-old's cries for help and found him with a broken ankle lying between rocks in parkland at Baulkham Hills. We thought it was just bushwalkers, then we heard this, "Help, help". Complicating the case, a stolen car was found nearby ready to be torched. There's still no sign of another man the bushwalker claimed was with him. Now for your first look at Tuesday's weather. Around the capitals: Fine and sunny in Sydney before a cool change tonight. Melbourne, a wintry day with showers and possible hail and thunder. Mostly fine in Canberra except for one or two late showers. Cool in Hobart

with a few showers and falling snow on the nearby mountains. Coming up on 'Sunrise' at 6am - what NAPLAN tests really mean for students across the country this week. But next on Seven Early News - the deadliest day this year in Iraq. And a good sign from the US for our trading day ahead. begin to break down so they're absorbed 25% faster than regular Panadol tablets. They're effective on pain while still being gentle on stomachs. A smart choice. welcome Cheerios to the family. It now has 90% more fibre and has earned itself the Heart Foundation Tick. now with 90% more fibre and the Heart Foundation Tick. Australia, I present this Chrysler 300C HEMI V8 for $63,000..., $61,000... Oh! $58,990! Or take possession of this seven-seat Dodge Journey for $42,000..., $40,000..., just $37,990. And bear witness to this legendary Jeep Cherokee for only $42..., $39,000... ..a paltry $36,990. Australia's never had so much bang for its buck. So hit up your Chrysler/Jeep/Dodge dealer today. Almost 100 people have been killed in 20 separate attacks across Iraq in the country's deadliest day this year. In the worst attack, two bombs were detonated in the carpark of a textiles factory

south of Baghdad as workers left to go home. The area was hit by another blast as people were helping victims from the previous attack. Earlier, five bombs were detonated outside the homes of police officers in Baghdad and army troops were killed during a drive-by shooting. BP is busy building a new, smaller containment box to stop oil spewing into the Gulf of Mexico after their first attempt failed.

The new box will have a heating system after freezing water clogged the first dome. The intent there is to be able to use hot water or methanol, and we'll have to get approvals to use methanol, but to do that to stop the formation of the hydrates while we put this device on top of the leak point. The box should be completed by tomorrow. Plan C involves injecting debris, like tyres, golf balls and mud,

into the leak to clog the hole. At least 70 people have been killed in southern China after almost a week of heavy rain. Fierce rainstorms have forced rivers to burst their banks,

triggering flash floods. Hundreds of homes have been destroyed. Authorities say more than 2.5 million people have been affected by the storm. Heavy rain is forecast for the next few days. Deadly flood waters have also swept through north-east Afghanistan, killing at least 10 people. Thousands of people were evacuated from the area as raging waters tore down mountainsides, sweeping away hundreds of homes. The US stock market has soared today after investors were assured by a trillion-dollar plan to avoid a European debt crisis. At its highest, the Dow Jones jumped about 430 points while the stock indexes rose 4%. I think what's happenings is last week investors lost confidence with the European Union and the IMF. They were doing too little, too late and too indifferently and so the markets just sold off thinking they were never going to get their act together. Europe also followed suit with large gains. Checking the latest finance figures now:

Wall Street's rally puts the Dow up

more than 3 per cent before the close.

Coming up on 'Sunrise' at 6am - Aussie singer Lisa Mitchell performs her UK hit live. But next on Seven Early News - Cowboys superstar Jonathan Thurston set to remain in the NRL. And Carlton snaps a 9-year hoodoo against St Kilda

in devastating style. (MELANCHOLY MUSIC) BOTH: I want to live past 65. to help end the disparity Go to: The stories we're following on the Early News - a police search will resume at first light this morning for four people believed to have been swept away while rock-fishing north of Sydney. The British Prime Minister, Gordon Brown, has announced he'll step down by September. And there are reports this morning that Bali Nine death row inmate Scott Rush is converting to Islam. He's been circumcised in a Muslim ritual behind bars. Now it's over to Mark Beretta with all the day's sport.

Fresh from the doctor. Very good

morning from a very refreshing

Armidale this morning. Carlton has shattered a 9-year losing streak against St Kilda with an electrifying 61-point win overnight. The Blues used speed to combat the Saints' renowned defensive pressure and came up trumps in a big way at Etihad Stadium. Carlton hadn't beaten Saint Kilda in 12 matches, dating back to 2001. It didn't look promising for the Blues early on. COMMENTATOR: Gwilt in the square, first goal of the night. Geoff Garlett grabbed Carlton's first major from long-range

and the recalled Jarrad Waite seemed intent on making up for lost time. Waite to fly, yes! A beauty. Saint Kilda's normally watertight defensive wall was leaking badly as the Blues piled on 10 first-half goals. Across to Garlett, he's got four!

Our small crumers had a huge

influence on the game, you know,

Garlett and Betts and their ability

to carry the footy. Jason Gram cut the gap to a manageable 32 points at the main break but while the Saints struggled to find an avenue to goal Carlton simply couldn't miss. O'hAilpin off the ground. He's jigged it home again, the Irishman. Chris Judd joined the party early in the final term and while it wasn't always pretty for the Blues, four final-quarter goals from Eddie Betts sealed a stirring 61-point win. They're putting on a clinic, embarrassing for the Saints.

Saints were a terrific team and we

got a huge amount of respect for

them, almost as much as the boys do

for me, this is a disgrace. The win moves Carlton back into the top eight. Collingwood and Fremantle head the competition at the completion of Round 7. Carlton's overnight win moves the Blues up to seventh. Brisbane is out of the top eight for the first time on the back of three straight losses. Richmond is the only side yet to win. The NRL will strike a serious blow in the battle to retain its biggest stars this morning with Johnathan Thurston to confirm he's re-signing with North Queensland. The Cowboys got the job done without their injured skipper last night, upsetting the Roosters.

North Queensland ran in 6 tries to 3 at the SFS, including a brilliant effort from Matt Bowen in his return from a knee injury. The win snapped a 4-match losing streak but it looks like they'll be without Thurston again this weekend.

He'd be at long odds to play against

the Wariers. We haven't got long to

go until we have got the game on Saturday. Thurston's 3-year deal is believed to be worth around $2 million. The NRL may be on the verge of another recruiting coup with suggestions Mark Gasnier is set to end his French rugby sojourn and return to rugby league. News Limited reports Gasnier is keen to return to the NRL this season, preferably with his old club the St George Illawarra Dragons. Newcastle is also believed to be in the running for Gasnier's signature. Taking a look at the NRL ladder at the end of Round 9 and the Dragons share top spot with the Titans. The Roosters' loss last night sees them drop to 8th. The Bulldogs, Warriors and Raiders are all just one win outside the top eight. A worrying injury toll is set to force Socceroos coach Pim Verbeek into naming an extended 30-man squad this morning for next month's World Cup in South Africa. Harry Kewell is Verbeek's biggest injury worry as he struggles to overcome a lingering groin problem. Star midfielders Mark Bresciano and Vince Grella are also battling injury. There's mounting speculation 18-year-old prodigy Tommy Oar will be selected in the squad

that will be trimmed to 23 players on the first of June. Cadel Evans has surrendered the leader's pink jersey after stage three of the Giro d'Italia this morning. Evans claimed the lead after a strong performance in stage two but was caught in the backwash of a major crash in this morning's stage from Amsterdam to Middelburg

in the Netherlands He now trails new leader Alexander Vinokourov by 43 seconds.

And finally, a Swedish adventurer has set a new world record running down the outside of a building. Tony Berglund sprinted 100 metres down the front of a skyscraper

in a time of 34.76 seconds.

There you go, Simon, probably not

for everyone, but if you wanted to,

you could have a crack at it. More sport in Sunrise. Next on Seven Early News. We'll take a closer look at how today's weather is shaping up in your part of the country. It's just about time for 'Sunrise'. Kochie and Sam are here with a look ahead. Simon, students across the country are sitting those controversial NAPLAN tests this week. But what are they and what are they used for? We'll give you the answers plus the chance to try a couple of questions for yourself.

That's a worry. Live in fear. Heaps of emails have been coming in on the changes to debit cards at the shops. You now can't press credit when you're paying. Find out why retailers have made the change. Plus, the distractions of technology. Do we waste too much time surfing the web, answering emails

and positng to Facebook?

We'll catch up with swim stars Eamon Sullivan and Steph Rice in a 'Sunrise' exclusive. They're still together in a business sense and you'll go behind the scenes for their latest photo shoot.

Underundies business. Plus, Aussie muso Lisa Mitchell with the song that's taking the UK by storm. She'll perform 'Oh, Hark' live. See you soon. Now for a closer look at how the weather's shaping up around the country: Fine and sunny in Sydney before that change tonight. Melbourne is expecting showers with local hail and thunder And that's Seven Early News for this Tuesday. I'm Simon Reeve. Stand-by now for 'Sunrise'. Supertext Captions by Red Bee Media Australia