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Tonight - the rogue trader

who cost his bank $8

billion. This is a wake-up call

for everybody, you know, the

fact that anybody could be

asleep at the switch. The

States ready to give up their

powers on the workplace.

Country music serves up the

Australian of the Year. And,

India on top, but Gilchrist

gloves a Test record.

Good evening, Joe O'Brien

with ABC News. The sheer scale

of the fraud has left the

financial world stunned. A

rogue trader is accused of

hiding $8 billion in trading

losses from the French banking

giant, Societe Generale.

Analysts are astounded that the

fraud, thought to be the

biggest in financial history,

went undetected for more than a

year. It's four times the

amount lost by the British

trader who brought down the

Barings Bank in the 1990s.

Europe correspondent, Rafael

Epstein reports. This is every

banker's world nightmare. The

rogue trader, 31-year-old

Jerome Kerviel wracked up $8.2

billion in losses. He was in

effect betting that European

stock markets would rise. They

didn't, and he tried to hide

it. This is a totally one-shot,

exceptional loss. This was not

supposed to happen again. Nick

Leeson lost nearly $2 billion

guessing on movements in Asian

stock markets. The Barings

Bank went under, and he went to

jail. The thing that I wanted

and I'm sure the thing that

this guy wanted as well, was success. Banks introduced thu

rules but this time the junior

French trader knew how to get

around them. It's exactly the

same story as Barings in 1991,

the same story in the Irish

bank a couple of years after

that and then the National

Australia Bank. The banks

focus on making money, they're

not interested in trying to

save it. The trade ser thought

to have lost the country. His

managers will lose their jobs,

but the bank says while it

needs to seek millions in new

Prime Minister Gordon Brown funds it expects a profit.

will be meeting in London next

week with the leaders of

Germany, France and Italy to

see if they can force the banks

to reveal whether they have any

more bad debts. This is a

wake-up call for everybody, the

fact that anybody could be

asleep at the switch and lose

this amount of money. An offer

from the bank's chairman to

resign was rejected by the

board. And the bank wants

journalists to stop what it

calls " a manhunt of the new

renowned rogue trader".

Centralised power, but with the

State's consent - that's the

Government's plan for workplace

relations and Kevin Rudd has a new report spelling out just

how to create his national system. Big business is

cautious about the plan, but it

has the support of the

Opposition. Morning tea at the Lodge for the Australians of

the Year in waiting and

incumbent. Good to meet

you. While the nation stops to

celebrate, the wheels of

Government roll on and more and

more it seems, all roads lead

to Canberra.? One of those

areas is industrial relations,

where you've got different, you

know, State jurisdictions. Not

for long. The Government wants

a uniform system. It's

considering a report suggesting

the States hand over the

remnants of control, or draft

legislation in tandem with the

Commonwealth. This would mean

one simple law, one regulator

and the ability to deal with

workplace relations in a way

that even small business can

understand. One of the

problems they face are these different regulatory

environments from one State to

the other. And this actually

represents an enormous

compliance cost for business.

Makes it harder for business to

go out and earn a quid. Business likes the idea,

to a point. The right question,

but with the wrong solutions.

The key difficulty in the

Williams Report is the idea

that the States should have an

ongoing veto on national

industrial relations reform.

It's in Australia's interest

to have a single national

system, but don't give us a

system which allows unions to

get control of the Australian

economy. There needs to be

discussions about whether it's

the best model. While there's

bipartisan support on one

front, the Opposition is

scathing about the Government's

plan to restrict the Family Tax

Benefit. The razor gang wants

to means test the payment for single income

families. Families are the

building block of Australian

society, they're not the

chopping block. Most families,

though, won't be affected. The

threshold kicks in at $250,000

a year. Police in Emerald have

charged two teenagers over

looting in the flood-ravaged

town. Extra officers are patrolling the streets tonight

to reassure residents returning

to their sodden homes. Police

waded knee-deep through

floodwaters around homes and

businesses in Emerald

overnight, making sure doors

and windows were secure. Extra

officers were called in after

the residents of 15 units evacuated five days ago

returned to find their homes

robbed and scrandallised. The

heightened police presence

proved successful. We were in

the places that we should have

been and as a result a good

night was had by everybody. But

locals can't believe what's

happened. They've come in,

smashed the walls, smashed the

wall as they went down the

hallway. The water damage is

one thing, but the actual

possessions that were upended

that didn't need to be upended,

that's the disheartening part

about it. The victims say it

will add insult to injury if it's revealed that the

teenagers who've been charged

are locals. Geez, I'd be

disappointed if they were

Emerald people. It's a sneak

thief who's knocked people when

they're down. It's just not acceptable. With many properties flood damaged,

residents are removing

appliances before floor

replaced. coverings can be ripped up and

replaced. While it's no longer

flooded, the Vincent Lester

Bridge will remain closed while

engineers check to see if it's

been damaged. Water over the

Fairburn Dam spillway is also

easing. But downstream the

residents at Rockhampton in

Central Queensland are

preparing for possible flooding

early next week. Water is rushing into the Fitzroy River,

which is expected to peak at

about 8 metres. We've done a

letterbox drop to all potentially affected residents

just to notify them to take

necessary precaution s, move

things to higher ground. We

believe we've made the

preparations where we've got sufficient resources and a capacity to handle the

situation. Minor flooding is

likely around some low-lying

properties. The gender gap in

the Australian workplace is

still there. In fact, it's

getting wider at the top. A

new Government study has

confirmed there are still far

fewer women than men heading

Australian companies, and the

women who do make it to the top

are paid only a fraction of the

money lavished on their male

counterparts. Former Qantas chairman Margaret Jackson and

newly-appointed Westpac chief

executive Gail Kelly are among

the Australian female executives who've reached the top of their field. But

according to a new report, they

are the exceptions. The pays of

growth of women at that most

senior level is glacial. The Women's Equal Opportunity

Agency has found that only 7%

of all executive positions in

Australian companies are held

by females, and on average,

their pay is significantly

lower than men in the same

roles. The results are

surprising. The gap is

considerably larger than what

we would have expected. The

study of Australia's top 200

companies shows female chief

financial officers and chief

operating officers earned 50%

less than their male

equivalents, while female chief executives earned two-thirds

less. Well, it does surprise me

that in 2008 the disparity is

so large. The agency cites the

following reasons:

There's no reason why women's

role as primary carer should

reduce their salary-earning

capacity. Research also shows a

gap in pay rates between male

and female employees first

entering the workforce. On

average, male graduates have

higher starting salaries and

receive pay increases faster

than women. We will lose these

talented women if we don't

remunerate them properly. And

the minister says, with the

current skills shortage, it's

talent no company can afford to

lose. The State Health

Minister says the special

commission of inquiry into the

public hospital system will

have broad powers to make

recommendations on patient

care. The inquiry's being set

up in the wake of the

systematic failures uncovered

after the mistreatment and

death of 16-year-old Vanessa

Anderson. The minister

announced today that senior

counsel Peter Garling will lead

the inquiry, and says his brief

will be wide

ranging. Workforce, record

keeping, management of patient

cases, also the delivery of

health services to individual

patients will all be the

subject of the inquiry. The

State Opposition says only the

powers that a royal commission

offers will get to the bottom

of the problems. The rules that

Reba Meagher and Morris Iemma

have set for this inquiry

prevents leads being followed

up in the way in which a Royal

Commissioner could. Reba

Meagher says the inquiry could

last between six months and a

year. It's intended to prevent

pregnancy, but new research has

found another benefit of the

contraceptive pill. A British

study has shown the pill can

help to protect women from

ovarian cancer. The longer the

use, the greater the protection, and the benefit

remains even when women stop

taking it. Ovarian cancer is

an insidious killer, claiming

the lives of 800 Australian

women every year, with no

reliable screening test,

doctors say anything that can reduce

reduce the risk of developing

the disease is crucial. A

study from British researchers

shows women taking the

contraceptive pill for at least

five years will cut their risk

of developing ovarian cancer by

30%. In real terms for every

250 women on the pill, one woman will be saved developing

ovarian cancer. And the

benefits last for many

years. One of the very

interesting findings about the

studies was the protective

event was maintained up to 30

years after the women had

ceased taking the oral

contraceptive cancer. It

protected against ovarian

cancer regardless of the type

of pill, when women started

taking it, or how strong it

was. The pill reduces the

number of times a woman ovlates

and the protective effect is

thought to be associated with

this. The researchers who did

the study say the findings

prove the pill is a powerful

cancer prevention tool and should be available

over-the-counter. Australian

doctors aren't so sure that's a

good idea. The pill can

slightly raise the risk of

breast and cervical cancer but

Australian doctors say the

benefits outweigh any dangers.

Bondi Beach has been a mecca

for generations, but it's only

today that it made it onto the

National Heritage List. The

sweeping beach is the third

most visited place in Sydney

and it's now recognised alongside the Harbour Bridge and the Opera House on the list. What could be more

Australian than Bondi Beach,

the sun, the sand, lifesavers,

the sense of place that is so

strong here. This is a

fantastic day for Bondi Beach fantastic day for Bondi Beach

and it's fantastic to see Bondi Beach recognised in this

way. The listing protects 65

hectares of land, including the

surf-lifesaving clubs, parks,

cliff and ocean under Federal

environmental law. Sydney's

Big Day Out has again lived up

to its name with the annual

music festival attracting a

sellout crowd. While some fans

say the day was marred by a heavy-handed police presence

and the use of sniffer dogs,

the minister is un apologetic.

Some fans had to be cooled off

as a sellout crowd once again

descended on Homebush. For

most, it's about music. For

others it's patriotism. It's about celebrating Australia

Day, some of the maddest times,

everyone getting together and

being sick. The late

cancellation of Bjork one of

the headline acts, was not

enough to dampen spirits. Not

even an afternoon shower could

do that. Oh the whole thing it

works well. The music, the

day. But not all were happy.

Some said police were over the

top as they targeted drug

users. We've been here for five

minutes and been checked twice

already since we got off the

train. We walked 300m. I

don't believe you should start

your day with a heavy-handed

police presence, because I

think young people need a bit

more respect. Long-time critics of sniffer dogs say the operation puts people at

risk. Young people, if they see

police with sniffer dogs will

panic, will swallow quantities

of drugs if they have them on

them. Obviously that's a risk

when people do down their drugs

all at once. I saw a few guy s

dump five ecstasy tablets when

they see them. They definitely

will, yeah, down them. The

Police Minister David Campbell

makes no apology for using drug

dogs. He says anyone who takes

drugs is putting their life at

risk. Six people were charged

with supplying drugs, and

around 30 were detected for

possession. By late this

afternoon, no-one was treated

for drug use. The Big Day Out wraps up

wraps up in Sydney tonight. It

travels to Melbourne on Monday.

Country singing star Lee

Kernaghan has added Australian

of the Year to his list of

awards. The Prime Minister

says the 43-year-old performer

is being honoured for his

dedication to helping people struggling in rural

Australia. I am so honoured and

proud to be recognised by this

magnificent country that I

love. Thank you, Australia. The Senior

Australian of the Year for 2008

is David Bussau. His charity,

Opportunity International, has

given micro loans to more than

a million people in the world's

poorest countries. The Young

Australian of the Year is

21-year-old Casey Stoner, the reigning World Moto GP

Championship. And 'Choir of

Hard Knocks' has taken out Australia's local hero for

2008. A rogue trader has

cheated a French bank out of $8

billion and still to come - the

day the bulls charged back into

the market. In a In a breakthrough meeting,

Kenya's feuding leaders have

pledged to seek an end to the

post-election violence. The

talks were mediated by the

former UN chief Kofi Annan who

said it was a very encouraging

development. The rivals have

until now, refused to negotiate

directly with each other. I

will personally lead our

country in promote ing unit,

peace and harmony among our

Kenyans. My party and I are

ready to take this long-awaited

journey to restore peace and

justice in our troubled

lives. More than 650 people

have died in unrest, triggered

by the disputed presidential

poll in December. The Italian

Prime Minister Romano Prodi has

resigned after his Coalition

government lost a vote of

confidence in the Senate. The

centre left leader defended his

record in a defiant speech but

was forced out after just 20

rocky months in office.

Right-wing senators popped

bottles of champagne in the

chamber to celebrate before being

being reprimanded. No, per

favore. Mr Prodi will remain in

a caretaker role until the

president decides how to

replace a government torn apart

by in-fighting. The cheque's

in the mail for more than 100 million families in the United

States. Congress has approved

President Bush's plan to

stimulate the country's

flagging economy with a massive

tax rebate. Low and middle-income middle-income workers will get

up to $1300 and more if they

have children. The deal that's

been haermed out to jolt

America's slumping economy will

put money in the pockets of low

and middle-income workers. The

incentives in this package will

lead to higher consumer

spending and increased business

investment this year. Individual taxpayers will

get the equivalent of almost

$700 Australian in rebates.

Couples will receive $1300,

with another $340 per child.

Even workers who pay no income

tax will get almost $350. The

tax rebates are a rare sign of

cooperation between Democrats

and Republicans. It is about

putting money in the hands of America's working families. It

is there to strengthen the

middle class, to create jobs. The beauty

The beauty of this package is

that it is simple, it is clean,

it is neat, and it will get the

money back out into the

American economy as quickly as possible. Business tax cuts

will also make up about

one-third of the $170 billion

package. The stimulus plan

comes two days after the

reserve slashed interest rates.

The tax cheques are being

mailed out to about 117 million families. families. Because consumer

spending is the main driver of

US economic activity, the hope

is that people will spend their

cheques quickly, helping the

world's largest economy avoid

falling into recession. To the

markets now, and the buyers are

definitely back. The Australian sharemarket notched

up its biggest 1-day gain in

more than a decade today as bargain shoppers

bargain shoppers stocked up.

Here's Alan Kohler. Well,

share prices are coming back

with a big rush. Today's 5%

rise means the All Ords has

gone up 12.7% in three days.

Either there's a huge amount of

pent-up demand and optimism out

there, or else speculators got

caught and are panic buying.

Perhaps a bit of both. In any

case, 55% of the fall since 1

January has been recovered and January has been recovered and

40% of the total fall since 1

November. The market was down

24%, now it's down 14%. Is

there still a bear market? The

bad news does keep coming from

the world's banks. It's hard

to believe that's it. As this

graph shows the stock market is

basically just rrnd to its

long-term trend line having

stretched itself moderately

above it last year. The bull

market began when the index got

well below the long-term trend

line. The correction hit when

the line got about the same

distance above it as it was

below it. Now it's sitting

right on it again. Here are

some of today's highlights:

Those with money are more

worried about banks than they

were 24 hours.

India took the honours on the

scoreboard, but Adam Gilchrist

made his mark in the record

books on the second day of the

fourth test. Gilchrist broke

the record for Test dismissals

by a wicketkeeper claiming his

414th scalp. The tourists

reached 526. Sachin Tendulkar

scored 153 while Anil Kumble

and Harbhajan Singh both made

half centuries. Australia

finished on 0 for 62. finished on 0 for 62. The

Australians would have hoped

the early morning catching

drill wasn't a sign of things

to come. While the Indians

were also keen to inflict some

pain on day two. MS Dhoni's

aggression led to his downfall.

While Sachin Tendulkar

stylishly passed another milestone.

COMMENTATOR: What a way to go

till 150. The little master

then struck a delivery onto his

knee and he required lengthy

treatment. The next treatment. The next ball - his

master class came to a

close. That should be out.

Brad Hogg takes the

catch. Brett Lee, who was

earlier awarded the McGilvray

Medal as the ABC's Australian

Test Cricketer of the Year,

claimed and prized wicket of Tendulkar. Harbhajan Singh

resumed his battle with the

Opposition, while Anil Kumble's

attack on the bowlers was more

traditional. Harbajan

thrashed Andrew Symonds through

the covers to bring up his

second 50 of the series. Oh,

he's hit that run through the

gap as well. The eighth wicket stand yielded 107 runs before

the offspinner went for one big

shot too many. With his score

on 87, Kumble presented Adam

Gilchrist with a significant

catch. Gone ! There's a record

for Gilchrist. Might have got

there a bit quicker if I hung

onto a few. I don't know what onto a few. I don't know what

it is about milestone matches

and my keeping. When I try to

get 300 I dropped a couple,

400th I dropped a couple. In

pursuit of this record I

dropped one. So be it. The

tourist's total of 526 didn't

seem to intimidate Matthew

Hayden. RP Singh's spell with

the ball was cut short by a

hamstring problem as Australia

ended day two without the ended day two without the loss

of a wicket. Liam Davis has

made the most of a late call-up

scoring his maiden first-class

century against NSW. Doug

Bollinger again led the NSW

attack as the team shared and

honours on day one. Davis was

called into the side to replace

tin juried Shaun Marsh and

repaid selectors. Bollinger

cut short the return of

temporary Test opener temporary Test opener Chris

Rogers, but former batsman

Justin Langer made a

half-century before Bollinger

and Brad Haddin combined a

short time later. 23-year-old

Davis went onto make a century

in just his second first -class

match. This time last year

Jo-Wilfried Tsonga was ranked

212 in the world. On Sunday,

he'll play in the final of the

Australian Open. He moved into

the final with a stunning

straight sets victory over the

world No.2, Rafael Nadal. He

looks like a young Hammurabi

and share s -- Muhammad Ali and

shares his stagger. Last night

he knocked out one of the tournament heavyweights. He is

dropping the hammer. As hard as

Nadal tried he had no answers

to the 22-year-old's powerful

ground strokes, and sublime

touch at the net. That is

absurd, absolutely magnificent

touch. The unseeded Frenchman

hit 49 winners to Nadal's 13.

Due to a series of injuries in

recent years, Tsonga is playing

his fifth Grand Slam and making

up for lost time. He looked

surprised after beating Nadal

in straight sets. It's

ridiculous, for sure. I tried

to play a little bit low, a

little bit faster. I tried to

play more inside the court,

behind the court. No

chance. Having taken care of

seeds, 2, 8, 9 and 14 Tsonga

meets either Roger Federer or

Novak Djokovic in Sunday's final.

REPORTER: Can you keep this

level up for just one more match? Yes. LAUGHTER LAUGHTER Serbia's Ana Ivanovic is

aiming to keep her emotions in

check during tomorrow's final against Russian Maria Sharapova. Vanessa Anderson

let the occasion get the better

of her in Justine Henin in last

year's French Open decider. I

was thinking more, "Maybe I can

win a Grand Slam," and I start

thinking more emotionally and

it was very horrible. This is a Grand Slam

a Grand Slam that I obviously

have not won and won that I'd

love to win and one match away from it. It's a great

opportunity for me. Sharapova

will start a warm favourite to

win her third Grand Slam title.

They're the pride of the pride.

A South Australian zoo has just

introduced its new est lion

cubs to their extended cubs to their extended family.

They're the first newborns at

the zoo and zookeepers are

watching closely to make sure

they get a gentle reception.

The cubs were restless to get

into their new home at Monarto

Zoo about 50 kilometres east of

Adelaide. Mum Tiombe was ready

for brooetding space, too.

Brother Levi seemed less

Brother Levi seemed less

inclined. But with the support

of brother Leroy the 200

kilogram lion mustered up the

courage. It's the first time

the pride has been together in

the 10 hectare enclosure since

the male cubs were born four

months ago. Naturally in the

wild a female will go off by

herself and give birth

naturally by herself. She'll

bring the cubs back 4-6 weeks later. They're later. They're stronger, they're moving by

themselves. The new cubs were

given a clean bill of health

but couldn't be reunited

because of an unexpected

injury. One of the cubs did

have an issue, he sprained a

shoulder being too boisterous,

because they jump up on logs

and all sorts of stuff.

They're just being small

children, basically. Now the

zookeepers will closely watch

the pride to make sure the pride to make sure the new

dad isn't overly

aggressive. Basically if the cubs were going to be a bit

rough with the boys they're

obviously going to be told off.

We didn't want that telling off

to be too aggressive but the

males seemed to be telling them

off enough that the cubs are getting the idea. The cubs

don't have names. That's been left to the public in a

competition ending next week.

Now let's take a look at the

weather. In Sydney weather. In Sydney today the

top temperature was 25 degrees,

2 below the average.

Cloud over southern

Queensland and northern NSW.

Cells of bright cloud across

the north and into central

Western Australia. On the

synoptic chart a slow-moving

trough over the south-east will

generate a warm thundery day

over the interior and

south-east. Cooler

south-westerly winds will develop in South Australia

behind the trough.

Another look at tonight's top

stories - a rogue trader has stunned world financial markets

by defraud ing a major French

bank of $8 billion. A new

report has urged a single

national industrial relations

system, arguing that the State

and Federal approach is

unproductive and expensive.

And, country singer Lee

Kernaghan has been named Australian of the Year. And that's ABC News for now. I'll

be back with updates during the

evening. The '7.30 Report' is

next and for the latest

headlines 24 hours a day, go to

ABC online. Have a great

weekend. Closed Captions by CSI

I've learnt how to farm in

the dry weather, so I'm going

to have to learn how to farm in

the wet weather if this rain

continues, which we hope it does. Tonight on the 7.30

Report r - land of drought and flooding rain, the flooding rain, the silver

lining in summer's storm

clouds. This is a particularly

good crop, I think we've

probably turned the

corner. And, capturing the

faces that make up the

nation. And I found a couple of

times I walked away and I felt

like I just wanted to cry. CC

Welcome to the program, I'm

Ali Moore. For many in

Queensland, the past few weeks

have seen an incredible

transformation from drought to

flooding rains. For those

whose homes and properties have

been inundated, it's been