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Tonight - world financial markets

go into melt down, wiping billions

off the value of Australian shares.

Is it time to hit the panic button

on bunker down? You can sense, you

can feel the tone in the market

that it is not over yet. We have

reporters in London and the US, but

the big question we are ask: How

will these global jitters afpbgts

your finances. It is 6: bo. I am

Hamish MacDonald and we have all

the basis covered on this unfolding the basis covered on this unfolding

story. Good evening, you have heard

a lot of jar done about the share

market today, even talk of a second

global financial crisis. Tonight we

are boiling it down and getting

some answers. The news is bad, but

perhaps not as bad as the headlines

suggest. Within minutes of the

Australian market opening this

morning, a staggering $55 billion

was wiped off the value of the

local share market. They never

recovered. That is on top of the

$60 billion lost on Wednesday. The

total market of our market is $1.4

trillion, that is plenty of 0s it

all started with the European and

the US markets went into melt down.

We know all too well just how

fragile or broken many of the European economies are. We will

head to the US shortly, but first

Daniseise beginning our coverage

from London. The nervous faces of

the debt crisis. Waiting for the

lastest economy to self-destruck.

It is more a question of when, than

why. It is confusing a financial

market, that is the main problem,

and the other problem is we have

still no perspective for Spain,

grease, for Italy, for Ireland.

That is what is clearly missing and

that is very disturbing as what is

a clear sign of weakness for the

European Stock Exchange.

The latest debt fears are Spain and

Italy, dangerously close to triggers bailouts. Ireland and

Portugal have already but the

crisis, of course, began in Greece.

And from there it couldn't be

contained. Still, just a fortnight

ago, Europe's leaders boosted in

Brussels they had saved the day by

offering a fresh second bailout for

Greece and tripling the European

bailout fund by September for stave

off problems everywhere else. Now,

Jose Manuel Barrosso, the European

Commission President,, has weighed

in to call for an immediate rethink.

The fund, his spokeswoman says,

needs to be much bigger, much

sooner. Your area, financial

stability must be set out with all

institutions playing their part.

When the market looked to the

European central bank to quash the

fears, to deliver some good news,

it didn't. We will continue to

monitor very closely all

developments with respect to upside

risks to price stability. As long

as there is no clear solution, fear

across the region spreads far

beyond this currency. Others too, have plenty to lose.

Westminster is a huge To say it is a worry for

Westminster is a huge

understatement. The UK isn't a

member but half of all of this

country's export goss to the

Eurozone. Is bad news there means

big trouble here. And here an

already jittery Wall Street woke up

spooked by the closing bell the

market had taken its biggest nose

dive in three years. We have just

seen the worst one-day fall on Wall

Street since those dark days of

2008. Free fall. The bottom follows

out late in the day There is real

fear on the street today. Palpable

on the faces of the Wall Street

traders. You know it is not good. traders. You know it is not good.

points. Ending in the red there, down 512

The Dow offers its 9th biggest drop

in his tris why the Nasdaq flum

metted five pect. All three major

index down a total of 10% from

April highs. That is what Wall

Street calls market correction. It

is corrected any gains made this

year. They are all gone. Globally

another day of mayhem on stock

markets. Fundamentally it is the

same story, there is a reassessment

going on by investors across the

world about the outlook for

economic growth. Oil and gold fell

too. The only nation is up is the

fear index - fear that America is

headed for another recession. The

negative environment has been so

overwhelming that investors are

simply disgusted and just taking

risk at the table.

Europe's fall is just part of the

problem. Global markets rallied

slightly after the US Congress

finally reached a debt deal, but in

reality $14 trillion in debt and a

deal with no clarity about future

budget cuts, doesn't given vestors

much faith. We know we still have a

lot of work to do on the economy.

Not much of a 50th birthday present

and it is not over yet. I'm not

saying I can hold your hand and we

won't go down more, I think we will,

but there is nowhere, nowhere as

bad as I was in 2008.

US job numbers come out in the next

few hours. The only certainty the

market has is they won't be good.

Alright, don't forget you can

always join the conversation using

using Twitter. This is legally the

start of another global recession

and what is the impact here in

Australia? Chris Caton is the chief

economist of B. The Australia.

Thanks for talking to us. They are

suggesting now this could be GFC

mark 2. Is that as you see it? I

think that is very unlikely. It is

true that we have something of a

slow down in the world economy

going on right now but it still has

for ward momentum and I think it is

unlikely it will be dip into

recession, particularly in the

United States. The slow down is

caused by higher oil following the

tsunami, believe it or not.

Elsewhere, there are other issues,

Eurozone debt, that is supposed to

be GFC too. The Eurozone debt

problem is smaller than the

subprime debt problem was and what

is different from last time is the

complete transparency, everyone

knows who is holding what, everyone

knows what its market price is.

This is certainly a hang over after

the GFC binge, but I doubt very

much whether there is a rerun. So

you don't believe any of the panic,

this is not in any way related to

the whole debt celling Chris nis

the US over the past -- crisis in

the US over the past few weeks? No,

actually the debt ceiling is last

week's story. The market fell in anticipation that they wouldn't anticipation that they wouldn't

raise the debt celling, they did

raise it and the market fell again.

The trigger for the weakness of the

market this week was a set of at

least three major pieces of

economic news in the United States economic news in the United States

which suggest that the loss of

momentum of that economy was even

greater than we thought it was

before. But it is just loss of

momentum, it is not falling output

which is what you need to generate

a recession. You are talking to us

from the Gold Coast tonight. Plenty

of superannuation members there.

How does this affect Australians?

Obviously it does because

superannuation members are exposed

to the Australian market and we

must be, we will be down five

months in a row by the end of

August, almost certainly, and the

market will be down by 15%. So to

the extend that whether you are

retired or not, to the extent you

are exposed to that, yes, it has

been a significant loss ofth. That

is one way where by the mall lays

and the effect of the world effect

the rest of the world. We are not

immune to this by any means. There

was some cushions the last time

this emerged in Australia. A lot of

the analysis suggests that the

cushioning is no longer there. Are

we reliant on China piggy-backing

us through this? Well, we do

actually have some cushioning.

Although I said this won't be a rerun of the global financial

crisis, there is one thing that is

worse now than it was then for the

rest of the world, and that is they rest of the world, and that is they

have run out of ammunition, misscal

and monetary ammunition. We still

have monetary ammunition. We can

generate our own cushion if it is necessary simply by cutting

interest rates. We still is a

cushion here. Chris Caton from BT

thanks for talking to us. My

pleasure. Alright, moving on now,

two days ago she was just another

Sydney cop which is never a walk in

the park but Constable Karen Lowden

couldn't have managed what lay

ahead. She is the officer who sat

bravely with Madeline Pulver with

what they thoughts with a bomb

strapped to their throat. Here is

Karen's story this afternoon. I was

not exactly clear what we were

going to but I knew there was a

girl that needed help and my main

concern was getting to her. She was

quite distressed which is totally

understandable in that situation.

But she just held herself with such

composure. She was so level-headed.

She knew what she needed to do to

get through that situation. My

reaction was unexpected, of course.

And then from there I just stayed

calm because I knew she needed that

calmness. I suppose as usual there

would be that bit of shock. I

haven't dealt with that type of

thing but I just knew I had to do

my job, I had to be there. I didn't

feel like - I didn't want to move

from that situation. It was a

difficult situation for both of us.

I think we were both trying to get

through that process. I definitely

felt like there was a connection

there. Having a child myself I news

knew that I just wanted to be there

for her, I didn't want to move. You

don't necessarily think of

everything that could go wrong but

- but then being there for that

three hours as well you do have

little moments of thinking of

things. We also talked about her

HSC, just anything to keep her

reassured. Talked about her art

studies. Just anything to make her

feel as comfortable as she could

and that she was very brave and I

just know that she is a strong,

very level-headed girl. Very bright,

intelligence girl and very brave.

Did you crack any jokes? What was

the demeanour like? Was it all doom

and glam or a few moments of

levity? She had her moments of

great poise, she was very calm.

Under that ordeal she was Under that ordeal she was stressed

as well but level-headed. Just

dealt with it perfectly. What about

you? How did you feel going through

it? I mean, being in the police you

come to deal with the unexpected.

Maddy she was just wonderful. She

did everything right. Chef was just

an amazing person. The strongest

girl in the world at the moment,

definitely. All the best to her and

her family as well. That was the

very brave Constable Karen Lowden

there. Still ahead, we are back in

Afghanistan where the Taliban is

fighting with renewed strength. And

later, the soul-searching lyrics

and sand-paper voice of music

legend Randy Newman. (PENSIVE ROCK MUSIC) VOICEOVER: You can tell you've got the world's smartest phone when it's slimmer, lighter and brighter than your ex. Smartphone, that is. The Samsung Galaxy SII: Harry, where did you get all that? With a mix of 8 Hot & Spicy and Original Recipe chicken pieces, nuggets and sides for only $24.95, KFC's Mixed Hot Dinner is unbelievably good value. That's so good. VOICEOVER: The opportunity. The cost. The facts. The gas project that could change the Kimberley,

in 'The Weekend Australian'.

Welcome back. We hear stories of

medical breakthroughs all the time

but tonight a development that

really does seem to stand out.

Australian researchers may be

poised to change the way we treat

some of our deadly viruss. They

have developed a compound to stop

hepatitis and HIV and other cancers

to spread throughout the body.

Professor Adam McCluskey from the

University of Newcastle was

instrumental for making this

discovery. Thank you for your time.

We do hear a lot of stories about

big breakthroughs. Is this really

one of them? Look, there is a

number of ways we can look at this.

My team, we prefer to think of it

has we have opened up the door that

will lead to these new

breakthroughs. We have a couple of

compounds coming through that allow

us to study the function of this

particular protein that stops

viruss getting into the clels, so

this is the first step of thism

that we need to go through before

we get to the major breakthrough

which is a drug in the clinic. If

this does all work, what would you

be able to do? How would you be

able to stop these viruss from

spreading through someone's bodies?

OK. Typically a virus can't

replicate without infecting one of

the host organism cells. So for the

virus to actually multiply it needs

to get inside the cell, it hijacked

the cell from doing its normal job,

makes lots of copys, all the little

viruss will come out and spread

around the bloodstream looking for

another cell. The compounds we have

developed stop that entry into the

cell for the viruss you have

actually mentioned already. So if a

virus gets into the cell it can't

replicate and if can't replicate it

can't go on and make the illnesses

as we know them.

So you can put up a dam wall inside

someone's body? That is the idea.

We are at very early stages but so

far the trials were done in cells

with the colleagues in Germany and

Sydney and it suggests that the

compounds have a good level of

activity stopping the viruss

entering the cells. I know you have

mentioned in a way this is all a

long way off. How long? What is the

timeframe we are looking at? Look,

everything is resource dependent in

this world. I have been thinking

about this a lot because of the way

things have happened recently. This

is the shortest pro ject I have

worked on so far. We got to this

stage in about two, two-and-a-half

years. If we have the right

resources in terms of time, staff

and finances I would like to think

we would be at clinical trial stage

in three years and that might be

sufficient to get the big

pharmaceutical companies interested.

That sounds like your pip for

funding. Thank you for talking to

us. Thank you. To Afghanistan now,

where the presence of international

forces is being wound down over the forces is being wound down over the

next few years, as the Afghan

government prepares to take greater

control of its own security. But

the reality is things on the ground the reality is things on the ground

look as unstable as ever. In recent

months, the Taliban has been taking

its fight to the heart of the

Afghan establishment, taking out

key figures and making its presence

felt. Natasha Exelby has filed this

report from the southern province

of Kandahar. Thousands of troops,

billions of dollars. Ten gears and

countless civilian and military

lives. So, who is winning this war?

At the end of the day we are making

a significant difference here. The

soldiers who are serving here

believe in what they are doing.

They believe they are making a

difference. That may be, but the

political landscape has never been

more volatile. The Taliban has

killed several high-profile

political power brokers in the past

few months. In mid-April the

Kandahar police chief Mohammed

Mujahid was killed in a suicide

bomb attack. In July, Ahmed Wali

Karzai - the President's half-

brother and Kandahar Provincial

Council Head - was shot by his

bodyguard. Days later senior aid to

the President Jan Mohammed Khan was

killed in a suicide bomb attack.

And just last week the Kandahar

Mayor Ghulam Haider Hamidi was

killed when a suicide bomber

concealed explosives in his turban.

Any time any death occurs by

anybody, the Taliban claims the

responsibility of that death.

It is not as simple as one side

against another. The murky

political world is summed up by the

Afghan saying - an enemy of an

enemy is a friend. Kandahar is the

spiritual home land of the Taliban,

and it as always been said that

whoever rules Kandahar rules

Afghanistan. That is why the recent

assassinations of these strongmen

is so significant and that

instability is reverberating right

across the nation.

The sentiment is - if the

government can't protect itself how

can it protect the people? The

people cannot consider themselves

protected neither by the government

of Afghanistan or by the pors here

in this country. Khan is an elder

in Uruzgan Province where the bulk

of Australian troops are based. It

is not safe there any more he says.

His cousin was stabbed with a knife

and then shot and killed. The

Taliban sent him a letter

threatening his life, so he fled

with his family. But poverty is

rife so most of his friends have

joined the Taliban to survive.

TRANSLATOR: There is no work here.

In the winter people are joining

the government side and then

escaping back because of money N

this side they are joining the ban,

because the Taliban are cleating wheat from people.

Many families hedge her bets

placing one son in Afghan forces

and the other in Taliban. Progress

or not, the Afghan government wants

Australia there. The national

budget is financed almost entirely

by foreign aid. In the last ten

years many powerful figures and

powerful personalities they took

advantage of the war situation here

in this country and they collected

a lot of billions, million,

hundreds millions dollars in their

own property. As the United States

drawed down its troops, the

security of each province is

gradually being handed back to the

Afghan military. When and if

Australia hands over security of

Uruzgan Province, many anticipate

civil war. Natasha Exelby with that report.

Still ahead, he has written some of the most memorable and

controversial songs of our time but

you have probably neveren seen him.

First though, what is happening on

the Project? It is knives at ten

paces with the final two Masterchef

contestants VOICEOVER: The new AIR WICK Ribbons candle, with essential oils, to wrap the whole room with indulgent scent. Like Crackling Fire and Cinnamon Spice. The new Touch of Luxury collection. Here we go! SONG: # It's tricky to rock a rhyme

# To rock a rhyme, that's right, on time... # New Le Snak Deli: Chriss. That is at 7.

As the man behind dozens of hit

songs and movie scores, Randy

Newman has won more Oscars and

Grammys than just about anyone in

the business. But he's in Australia

following his other passion -

performing. Randy has teamed up

with the Sydney Symphony Orchestra

and his concerts are as much for

the purists as they are for the

nostalgics. Eddy Meyer met the

maestro. You may not recognise his

face, you probably recall his voice, you certainly know his music.

SONG:# Love me true

# But I will never get over losing

you# For more than four decades,

Randy Newman knew has been telling

his stories through song, placing

him among the legends of American

song writing. What do you enjoy

most? It is the pure writing or the

performing as well? Performing.

Clearly. To me it is clear. I like

performing better. Maybe because it

is easier for me. Writing I have

always found difficult and I never

look forward to going in there in

the morning to work. Difficult or

not, the results speak for

themselves. His music has been

covered by a score of the industry's

industry's greats.

SONG:# You can leave your hat on#

It is his work writing memorable

movie hits which has won him an enormous following.

SONG:# You have a friend in me#

That is your career, it is spread

across a couple of different areas?

It would appear so. I always think

of myself - somehow first as a song

writer - it is hard to say because

certainly the most noteworthy

things, meaning that things I have

been noticed by the most are the

Pixar movies. There is no way I had

8 year olds as part of my odd yen,

it is not that kind of thing. Now I

do. Randy Newman's style can be

irreceive vent, sometimes misunderstood.

SONG:# Don't want no short people

# Don't want no short people around

me# His song 'Short People' was

controversial. The appeal of your

shocks you don't just write music,

you write stories. That is what

appeals to me. The favourite songs

of mine have characters in them and

if I can see them, if it is that

evocative for me I consider that a

real success. And he has had

success, a string of awards and

nominations, including Grammys,

Emmys and two Oscars.. The academy

awards are a kind of silly thing,

but for a few days there, I mean,

it is really important to the world,

you know. So a good deal of luck is

involved. He says that playing with

an orchestra is very different for

him. He appreciates the musicians

but it take as different discipline

because he cannot shop and chat

with the audience as easily. I hope

it adds a different element. I love

the sound of an orchestra, love it.

It has been 20 years since Randy

Newman was last in Australia. For

those and there are many keen to

see him here nor often, he offers

there. I don't know whether I have

people beating down the doors to

get me to come. Fans have asked me,

"Why didn't you come earlier in",

but generally if askedly come. Wow.

What an amazing talent. His last

two Sydney concerts are this

evening and tomorrow night. Next

week, the mums who have taken to

the intertd and are making a for

tune. It is a lesson in making

parenthood pay. That is the program

fortnight. The 7pm Project is next.

I am Hamish MacDonald and from all

the team, have a good weekend. We will see you Monday.

- Supertext captions by Red Bee Media

- www.redbeemedia.com.au.

This program is captioned live.

Tonight - with markets crashing is

our super not looking so super any

more. Andrew Ginsburg goes ape with

James Franco. Why the unseasonable

warm weather isn't good for some

dogs. And we chat with the

Masterchef fine lists, Michael and

Kate. This is the 7pm Project. Good

evening and welcome to the 7pm

Project Nicole Livingstone, Lehmo Project. Please welcome back to the

and Kris Smith!.

(CHEERING AND APPLAUSE)

Guys just before we get into the

show can we look at last night's

promo for tonight's show. This will

give you an idea of what is on

tonight but I just want to make an

observation. Tomorrow, Andrew G

meets the stars of 'Rise of the

Planet of the Apes'. We chat with

Masterchef's final two and I get to

sit between Chris and KriS. Jealous

much, girls. Yeah, I am in the room

Nicole. I know you don't need it,