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(generated from captions) Korea. If the Chinese

leadership regard this missile

defence system in the same way

as the Russian leadership has

regarded the one the United

States and Europe wants to put into eastern Europe, you're

going to have a serious

diplomatic problem on your

hands, aren't you? Well, Tony,

it is a concern, if

it is a concern, if it's held,

which is not based in the facts

and the reality of what is

actually being developed and

Australia's relationship with

China is such that under no

circumstance would we be

wishing to be supportive of

something which was destabilise

ing to the security of the

destabilise, and this is region.Towny, what's

something at times I think some

people in the people in the media lose track

of, what's destabilising our

region is not the fact that

Japan and the United States are

developing an anti- ballistic

missile defence capability for

a rogue state like North Korea.

Sit the fact that we have the

North Korean regime with

missile development, nuclear

development and detonation

program and also the obscene

and inhumane treatment of North Korean people that Korean people that is being

very tardy in complying with

the United Nations Security

Council resolution 1718. Tony,

that's the real problem. OK but

when you pointed the media

here, the media's looking at

statements coming from senior

Chinese military people who are

worried about this missile

defence system. We're not just

making it up. And here's the

point, should the - should

Australia's defence not look Australia's defence not look at

worst-case scenarios and the

worst-case scenario in our

region is a Chinese military

invasion of Taiwan and the

question in the Chinese minds

and in my mind right now is

whether that military - whether

that missile system could

protect Taiwan under those

circumstances? Well, Tony, I'd

also suggest that you listen to

statements that are made by

senior US, Japanese and

far Australian leadership and as

far as any sort of missile

defence capability being

developed by Japan and the yous

US having an extension to any

other nation or indeed any

other part of it, such as

Taiwan, that that's not

something I'm prepared to

discuss publicly and I would

expect that Japan and indeed

the United States would discuss

that privately. But I again can that privately. But I again can

only emphasise that this

defence capability is

specifically in relation to

North Korea and as with so many

other things, if you start

getting in the business of

ruling something in or ruling something out, well the next

thing I suspect, Tony, you'll

get a map of the region and

start to work through every

part of it and I'm not prepared

to do it, I'm sorry. We thank

you very much for taking the

tonight, whether there are time to come and talk to us

tonight, whether there are some

things you can or can't talk

about or not, thank you. Thank

you, Tony.

Well the Federal Health

Minister has refused to condemn

the Catholic Archbishop of snoi

Sydney George Pell for his

threats against the Premier of

NSW. Card Nell Pell has warned

Premier morse Iemma could Premier morse Iemma could face

religious consequences if he

goes ahead with State

legislation to liberalise stem

cell research. Tony Abbott says the Catholic Premier has the

right to disagree with kard

Nell Pell but should search his

conscious on the issue. Tony

Abbott's speech tonight dipped

into the moral quagmires

politicians sometimes have to

wade through in pursuit of

their goals. One man's lie is

observation another's judgment call. An

observation that neatly

describes the quick sand

surrounding NSW Premier morse

Iemma - Morris Iemma a Catholic

who's supporting a bill to lift

a ban on some stem cell research. Kard Nell George Pell

isn't happy about it saying the

bill could lead to embryos that

are part human and part

animal. It will allow an embryo

with three genetic parents and

I think that is a human I think that is a human embryo

and I think that is grotesque. But sporers of the

bill say the kard Nell's

concerns are misguided and the

bill would simply allow

researchers to test for healthy

human sperm. Say you have a

fertility problem and you're a

man you go along to a clinic and they test your sperm and

they test it on an animal egg

in order to see what's wrong

with it. That's all that it's

used for and it's only up to 48

human hours. It doesn't create a

human hybrid. But that didn't

stop kard Nell Pell from

issuing this warning. It is a

serious, moral matter and

Catholic politicians who vote

for this legislation must

realise that their voting has realise that their voting has

consequences for their place in

the life of the church. Given

Tony Abbott's muscular

religion came up Catholicism it was no surprise

religion came up in his speech

tonight at the Sydney

Institute. I was a student of

theology a long time ago and

I've forgotten most of it. Mr

Abbott told the audience

religion does have a place in

politics. I think that people

should be more conscious of the

role Christian faith has played

in the evolution of Western

society. I don't believe that

governments should be explicit

think conscious of it, although I

think it would be difficult for

their members not to be implicitly conscious of

it. That would be putting it

mildly when it comes to the

stand off between Mr Iemma and

Card Nell Pell. Card Nell Pell

is the official head of the

Catholic church in Australia

and he speaks for the church.

Whether individual Catholics or

the rest of the community obey

him, that's really entirely him, that's really entirely up

to them. But he's not just

speaking, he's making a threat,

albeit a veiled threat to withdraw communion something

that could be important to Mr Iemma's personal life s that

crossing the line ? Again, it's

his call to make. It's Premier

Iemma's decision as to what

he's going to make of that. Mr

Abbott voted against similar

by Federal parliament legislation when it was passed

by Federal parliament last

year. A military judge of the

Guantanamo Bay prison camp has dismissed charges against two

detain yees, one of them a man

accused of being Osama bin

Laden's driver. Both cases

collapsed because military

authorities had failed to

designate the men and unlawful

enemy combatants. Another blow

to the US Government's atems to

put terrorist suspects on trial

and a raises questions how much

longer the Bush Administration

will stick with its Guantanamo experiment. For five years

hundreds of prisoners have

languished at Guantanamo Bay

without trial. Today two of

them thought they were getting

their day in court. Instead,

the cases were thrown out

because of a discrepancy in the

military complition rules.

The Pentagon tried to put the

best possible spin on the development. These judges are acting independently and they

are making rulings on the

evidence that is presented in

front of them. But for others

it's yet another misstep in the

chaotic 5-year Guantanamo legal experiment which has already

been ruled unconstitutional

once by the US Supreme

Court. Once again the military

commission system has

demonstrated that it's a

failure. Once again we see a demonstration that we can't

just set up a new system of

justice and call it justice. Neither prisoner will

be released. The US will

continue to hold both as enmshs

in the war on terror. One of

them, Omar Khadr is only 18.

Just 15 when he was captured in

Afghanistan. The grounds on

which the court has made that

decision are far reaching and

they're going to have real

consequences not only for Khadr

but for other prisoners who

have been tried and maybe tried

in the future. There is no impact on Australian prisoner

David Hicks who accepted the rules of the military

commission by pleading

guilty. For David all that lay

ahead was further uncertainty.

He made his choices

accordingly, he's back in

Australia. The US Secretary of

Defence, Robert Gates has

already said he'd like to close

Guantanamo Bay. This latest

setback will only increase

pressure on President George W

Bush to heed his advice. Before

we go tonight, the Fairfax

press will report torrent that

convicted Melbourne drug dealer

and fugitive Tony Mokbel has been arrested in Greece.

If you would like to look at

our trichts you can see our

website. Here's Ali Moore.

Tonight, narrowing the trade

gap. We are sternly seeing some

ongoing strength in our coal

and our iron ore

exports. What's in store?

Uncertainty over Coles's

future, clouds an orwise solid

result for Metcash. And act

local, think global. The case

for a regional rather than

national carbon trading

scheme. It would be good for Australia in meeting its

emissions trading targets to be

doing that in a low cost way

and potentially purchasing credits not only from within

Australia but from outside, be

it in the region or more widely

from the global market.

To the markets and profit

taking saw Australian shares

close lower. The all ord s shed

20 points. The benchmark ASX

200 gave up 22 points. In Japan

the Nikkei closed above the

18,000 level for the first time

in three months. The Hang Seng

gained 0.5% buoyed by a late

rebound on China's key exchange

and in London the FTSE has lost

its earlier gains. More

evidence today that it is the

best of times for the

Australian economy with the latest statistic suggesting

economic growth is

accelerating. Today's figures

show the country's trade

deficit is less of a drag on

the economy and many analysts

now expect tomorrow's quarterly

GDP result to be the strongest

in nearly two years. But robust

growth is not expected to force

the Reserve Bank's hand on

interest rates until after the

federal election. Here's

economic's correspondent Philip

Laskar. It's Peter Costello's

baby tand Treasurer was beaming

as the latest statistics showed

more than 265,000 babies were

born last year. The highest in

35 years. A lot of it has to do

with the fact that people are

confident, that they're feeling

secure about employment, they

think it's a time to start a

family and that they'll be able

to raise their family and I

think some of the policies have

helped as well. Also the

immigration intake was at a

17-year high with nearly

150,000 people arriving. It

helped boost a stretched work

force but kept the pressure on

housing. Building approvals

rose a solid 8.1% in April but

they are still below the levels

needed to satisfy d demands

suggested by population growth.

This could be the start of a

turn around but nobody's

expecting property to take off

just yet. Maybe with the

exception of, you know,

Brisbane and I don't think

other parts of the markets

around Australia are going to

see a surge because in a

long-term sense I think they're

pretty fully valued and in some

markets you could say they're overvalued and clearly that's

the case in Perth and parts of

the Sydney market, clearly

affordability remain askey

issue. And the key issue of

Australia's export performance

was in focus with the current

account deficit. It narrowed to

nearly 15.4 billion in the

March quarter. The trade

deficit fell to 3.6 billion but

the net income deficit blew out

to nearly 123 billion.

Representing money paid to - 12

billion. Representing money

paid to foreign

investors. Should we be

concerned that foreign owned resource companies are making profits in Australia. Those

numbers are included as part of

our current account deficit

even if the dollars remain in

Australia and are used for

investment. Should that be a

big concern for snus no, I

don't think it should. But

while import growth continued

to outstrip export growth, the

price equation has not been

better since at least 19 #59d.

Export prices continued to rise

and import prices fell although

Australia's rural ex ports are

still weak. Look, I think it is disappointing, particularly in

the impact of the drought on

the data. We are sternly seeing

some ongoing strength in our

coal and our iron ore exports

and given that the data we saw

yesterday suggests miners have

a fair amount of inventry on

their book, we should be seeing

still better numbers coming

through from the trade

performance over the next few

quarter. And better numbers

coming through in tomorrow's March quarter national accounts

which are expected to reflect a

better trade performance,

robust government and consumer

spending, and a pick up in the

business sector. The Reserve

Bank board met today to

consider interest rates and

will learn the outcome of that

meeting tomorrow morning. But

none of today's figures changed

the majority view that interest

rates will stay where they are

at least in the short at least in the short term. If

you're an inflation targeting

central bank and the inflation

rate that you target and all

the other ones that you can

think of are all within your

target range and if anything

going down rather than up, you

really can't raise rates no

matter how much inflation

pressure see see out there. But today's numbers did intensify

the threat of future rate rises

which saw the Australian dollar

and bond rates higher. Metcash

has emerged as a potential new

player in any carve up of the

Coles Group with CEO Andrew

Reitzer openly expressing

interest in the supermarket.

Australia's biggest grocery

wholesaler could add weight to

a consortium prepared to

compete with Wesfarmers or bid

alone should Coles decide to

sell off the group in parts. I

was a key theme of today's

Metcash profit results with

investors punishing the company

after it forecast single digit

growth this year, citing

uncertainty over the Coles

sale. Metcash is the third

force in Australia's grocery

trade and while its name is

largely unknown among shoppers,

the company is expanding its

presence through IGA Supermarkets. Metcash has

reported normalised profit of

$174 million, up 41% on last

year. But the results sparked a

7% plunge in its share price,

leaving the company's chief

executive stumped for an explanation. No idea. It can't

be the numbers. The numbers are

- could not possibly be

stronger and we've shown very,

very good performance, very

strong cash flows. A much

higher dividend pay out, and

you can have a look at our

business and see that we've got

good growth potential. I would

have no idea why the market's

reacted like that. Analysts say

the result was in line with

expectations but the market was

unimpressed with the company's

cautious profit outlook for

next year. Very much looking

forward to the 08 numbers. We

were expecting a 20% earnings

growth which you'd expect

following a 41% earnings

growth. However they have given

guidance of high single digit and that of course has impacted

on the shares quite

heavily. Metcash is Australia's

largest grocery wholesaler,

supplying 2,500 independent IGA

supermarkets. It says market

share is increasing, thanks in

part to the upheaval at Coles

after it was put up for

sale. Andrew Reitzer expects

competition to intensify if new

own eshs takes over at Coles

and says the uncertain future

is clouding his company

asoutlook. Suppliers would go

out of their way to make sure

that we have a more level

playing field and a stronger

number two, which I think

long-term will be a very, very

good thing for Australia. It

will be good for Australian

manufacturers, grower, farmers

and the consumer. But Henry

Edgar doesn't think a change in

ownership at Coles would

significantly affect Metcash's

profitability. I don't think

that the landscape will change

so much by Coles changing and

improving their efficiency that

they will have a massive impact

on market share and that's the

key. If Coles simply cut costs and improved their business

that way, market share may not that way, market share may not follow. Andrew Reitzer says

Metcash plans to grow the business by doing more of the

same, opening new stores,

refurbish ing existing outlets

and offering more fresh

food. We're very, very focused

on being the champion of the

independent retailer. We fight

hard to get them deals, and

pass them on, suppliers are

supporting our industry very,

very strongly and, you know,

and that delivers the sales

results like the one you've

just seen which St Strong. The

outcome of the Coles sale

remains the great unknown in

the industry. But Andrew

Reitzer says Metcash is ready

to capitalise if the Coles

auction drags on. Overall

investor fls the local market

were in a cautious mood today.

For more on how the session

unfolded I spoke with Marcus

fad Padley. Welcome to the

program. China was the trigger

for a bit of profit taking on

our market today? Yes, it was,

although by the end of the day

China had actually recovered.

At one point it was down 20%

from the top on 29 May but it

seemed our market shrugged it

off and it did that today.

Market was down 22 points. The

best performance today was the

resources sector. There was an

article in Barons saying the resources stock were cheap and there was also a good

performance from the property

trust sector as well, the likes

of Westfield in particular

performing well. There is also

talk of a private equity bidder

on the prowl in the sector at

the moment. You say our market shrugged off China but we

didn't entirely, did we? It

seems that no matter how much

we're told that China's market

doesn't reflect its economy, we

still have one eye on what

Chinese investors are doing. Absolutely. There's an

element of herd driving the

market at the moment. You

really can't say that the

resources rally, for instance,

has been built entirely on the

numbers. There is a lot of, you

know, blind buying and when the

herd's in control, they will

react to anything and China's obviously one of the influences

that they will watch. So yes,

it is important but I think

people have put it into

perspective now, it's not going

to have a big economic impact

on us. Metcash gave a pretty

down beat outlook nor the

retail sector today. Did that

flow through to other retail

stocks? Well, I don't think

Metcash's did but we have seen

a poor performance today from

Woolworths but that's probably

more to do with a Coles bid

where it looks like Woolworths

is going to have to shoulder

more of the assets because a

lot of the private equity guys

have pulled out so it did look

like the whole retail sector is

down. But the retail sector is

on the nose a bit at the

moment. Metcash's results today

was pretty poor and their

guidance was bad. We've seen a

speciality fashion group with a

profits warn. We've seen poor

numbers from Coles. So it is

one of those sectors that is

not kicking goals when the rest

of the market is. You talked

about resource stocks being

higher today, but we've also

seen a fairly bullish broker

report on resources haven't

we? Well actually yesterday

Southern Cross equities put out

a very nice piece of work on

the resources sector basically

saying they do think we're on

the cusp of a significant

period of out performance and

domination of the resources

sector and they put some fairly

sexy three to six month target

prices on a lot of the major

stocks and I think in the

market when people are just

running with the tide, you put

a label on a stock, a target

price and the market will

deliver and I think that's

going on a little bit at the moment. The market will deliver

but do you think the

fundamentals are there? Was the

report right? Yes, I think they

are right. The - if you look at

all the PEs on the market in

the ASX 200 huddled in the

cheap end are all the major

resources stocks and these are

based on consensus forecast

which are still based on

commodity prices which are well

below spot prices. So the risk

is still on the up side. We've

seen some significant comments

from JB we're as well today

which we're saying people -

companies like Newcrest, they

are something like 100% above consensus forecast on Newcrest

because of their copper price

forecast. There is Israeli a

lot of risk on the upside and I

think yes, Southern Cross

Equities have got it spot on. With companies like

Newcrest, a little bit of

takeover talk in there as well? I think so. The main

story in the short-term has

been that they might reengineer

their hedge book which sort of

clean out their hedge book and

that is seen positively. If we

look beyond resources to other

sectors ahead of the profit

reporting season, what's the

outlook? Well I think the

themes that we're seeing at the

moment can be expected to

continue. We've seen a very

strong oil price in the last

quarter, for instance, and

metal prices and energy prices,

that means all the resources

stocks probably have good

results and wealth management's

a booming business with the

superannuation extra

contributions going in at tend

of the year and with the

Platinum Asset Management float

clearly that sector is booming

along at the moment. Health

care's doing very well as well

and there are a number of

sectors that will, I think,

deliver. Sectors

deliver. Sectors dela won't

probably include retail sector

and also the media sector is

probably a little pricey at the

moment for their prospects and

also the building material

sector is not doing too much at

the moment. Thanks for bringing

us up to date. Now far quick

look at other major movers on our market.

Rupert Murdoch has finally

met with the biggest obstacle

to his $6 billion dream of

owning Dow Jones, the Bancroft

family. Overnight the media

baron met family members who

have been tied to Dow Jones for

over 100 years to try

over 100 years to try to

convince them to sell their

controlling stake. The

Bancrofts used the talks which

News Corp described as

constructive to seek

reassurances about the

independence of its flagship newspaper the 'Wall Street Journal'. An emissions trading

system may now be certain no

matter who wins this year's

election. But as we heard on

this program last night, the

question business wants answer

ed is how lit work and how

ed is how lit work and how much

it will cost. Europe has the

world's first and largest emissions trading market, but

as Andrew Robertson discovered,

opinion is divided as to whether that's the right model

for Australia. John Howard

says Australia will have an

emissions trading scheme by

companies it's already a 2012 but for many local

reality. Renewable energy

of them operating producer Pacific Hydro is one

of them operating in the

fledgling European carbon

market for projects it's

developing in Chile and Fiji. It's ensuring that

development of renewable energy

projects is getting done in developing economies and that

those projects are then able to

generate carbon credits and

sell them into the EU emissions

trading scheme. Rob Grant

believes the European Union carbon trading market is

evidence the Kyoto protocol is

working and he's convinceds our

market, like the European one,

should be reedge naling . The

thing about carbon credits is

they are fungible instruments

and it would be good for

Australia in meeting its

emission targets to be doing

that in a low cost way and potentially purchasing credits

not only within Australia but

from outside be nit the region

or more widely from the global

market. The Government has

announced Australia's scheme

will be cap and trade, will

operate nationally and will

have a target for carbon

reduction which will determine

the price. Experts lais line

business has spoken to over the

past few days say when the

finer details are announced

they should contain both spot

and future markets in carbon,

stringent governance with all

permits to be trait bought not

given away. He says where

Europe made a mistake was

allowed big heavy polluting

companies to get their carbon

trading permits for free. The

polluters said thank you very

much and they went on typically

to charge their customers where

they could the market price for

those permit, even though

they'd paid nothing for them. Professor Outhred said

governance will be the key to

success for Australia's

emissions trading skom which in

his opinion must include an

emission target which shows the

government is standing up to

vested interested. Providing

the government restricts the

number of permits available so

they're equivalent to a lower

level of pollution we're seeing

on annual basis, then year

after year we have to find ways

of getting the job done f you

like, of doing what we want to

do in our economy with less

pollution. Jerome Suere is head

of carbon research at investment research house

Reputex and was an energy

analyst in Europe when the EU

emission trading system was

introduced. He say there's are

other lessons for Australia to

learn from that

experience. Making sure that

the Australia has a robust set

company. There has been a lot of greenhouse data for every

of controversy in the ver

occasion of greenhouse go fr

companies. John Howard says the

target won't kn announce ed

until next year and it could be

another four years after that until trading actually

begins. The danger of not

moving forward now and not

starting it until 2012 is that

there is a significant amount

of electricity generation, for

example, that needs to be built

between now and then just to

meet our growing demands and

without some clarity and

without some clear signal on

what that framework is going to

look like, it's unlikely that

that investment is going to get

made and hence we might have

problem with leck trusity

production and brownouts or blackouts in the future. What

business wants is certainty and

the Australian carbon trading

market to start as soon as

possible. The clachs collapse of Australian Capital Reserve

with debts of more than $500

million has once again focused attention on the risk of

property investment. The image

of the broader sector has been

hit twice before with the

failure of Westpoint and

Fincorp but major developers

insist these are fringe players

with different structures to

listed property groups. Mirvac

is a listed diversified

property group that builds,

develops and has a fund

management section. Established

in 1972, the company relies on

bank money to fund its

projects. Unlike smaller

companies such as Australian

Capital Reserve, it doesn't

rely on money from small

investors. Every development

company will have some

difficult projects but by and

large they're so well

diversified and so well managed

that they don't cause loss to

investors and that's the case

with the big listed property

trusts and the listed development companies. Two

months ago the Australian

Securities and Investment

Commission ordered ACR to stop

raising money to fund its

building projects. ASIC was

concerned about the level of

disclosure in the prospectus.

Administrators are now working

out why the company collapsed

owing more than $500 million to

banks and many individual

investors. Mirvac says all

developers face cost blow-outs

and time delays but listed

property groups have a

these structure in place to cope with

these problems. If Mirvac has

cost overruns they deal with

them internally. I usually in

involves an injection of extra

equity from the company itself

or they simply draw on further

funding lines from banks if

they're within the parameters

set by the banks. The property

industry doesn't believe the

collapse of companies such as

ACR will have a negative impact

on the sector. But it is

hopeful people will now look at

the fine print of any deal

they're investing in. When

people drill down and

understand what is happening,

as I said earlier, we have a

healthy property market, we

have a healthy credit market,

um, there is something

fundamentally wrong with the

structure here when these

companies are collapsing under

those circumstances. People

distinguish between sophisticated investment

companies and these sorts of

companies. But there are still

lesson dos be learnt from the

problems that have arisen. The

Property Council believes many small investors don't fully

inform themselves about the

risk s associated with all

developments. It wants ASIC to

make sure companies reveal the

risk. It's not provided in a

format which is friendly for un

sophisticated investors. You

really need a PhD in semionics

to understand what's on page 62

in very small print. So there's

a need to provide all of the key information right up front. The admin traitors are

now expected to take months

sort ing through ACR's

documents meaning it will be a

long time before investors see

any money. Well love them or

loathe them, England's Barmy

Army of travelling cricket fans

have proved to be an economic

hit. On the field their team

was thrashed 5-0, off it the

Barmy Army opened their wallets

injecting $317 million and

creating 800 jobs. On average,

the thirsty tourists spent

nearly $9,000 each during their

30-day stay. Now a look at

tomorrow's business diary and

shares in Toll Holdings

infrastructure spin off assian

o will begin trading. We'll get

the Reserve Bank's decision on interest rates, no change is

expected. And staying with monetary policy the European

Central Bank is expected to

raise rate s 0.25% tomorrow. Before we go let's

look at what's making news in

the business secs otomorrow's

papers. The Age looks ats

Metcash's new found interest in

the Coles Group. The Australian

leads on the same story and the

'Australian Financial Review'

examines the Queensland State

budget. That's all for tonight.

As I leave you the FTSE is down

24, the Dow is down 25 on the

opening but the futures are

down 35. If you want to review

any part of tonight's program

you can visit our website. You

can watch the whole thing

online or download it as a

vodcast. We'd love to groirt

feedback. Our email is: I'm Ali Moore. Goodnight. Closed Captions by

CSI

Jack ManAllistar. Normally one down from Jackson Michael. Not on the list. I am. Step aside, please. Look up Jack "McAlison", please.

The homophobic guy who does the bookings thinks it's hilarious to put me on guest lists as Alison. People are starting to call me Alison to my face. The guy's an arsehole. The really upsetting thing the ambitious social-climbing bitches who now know I'm down as Alison try to get in as me.

I owe you. Name? Belinda Kurnow. In you go. Name? Amanda Turner. Yep. Name, please. Jack. Alison. I'm on the list.

You're being willfully obtuse, Martin. Shadow spokewoman for pensions. A prestigious client. Have you met spokes-bore Joanne Standing in the flesh? Oh, Charles. Are we any closer to getting Melinda back into the celebrity house? Not unless she breaks in. I'll push for Nell next series. Fine.

Of all the anti-labour campaigns, I end up with the graveyard shift. Old people have rights too, Charles. Making my life interlorable. Yes? Martin, this came by hand. I've no idea who it's from. SHARPLY DRAWS BREATH Disembowels. Perfectly ordinary word. Why the apostrophe? God, I should have known. What?

If Liz Hurley says yes to something you think she'll turn up. Not unless you trundle her there yourself! This is to do with Jan Franco Tutti, isn't it? It could be. The restaurant opening was a fiasco then? Howling, yes. Psychotic celebrity chef wants your head. Sort of thing. He learnt to cook in prison. Martin, the solution is as plain as the nose on your face.

Fly to Naples, seek out the grandmother. Wine and dine her. Squeeze her thigh under the table. to stop being beastly to you. She'll go home and tell Franco an obstacle for Italian families. His grandmother's dead. Death isn't He almost certainly killed her. There's nothing more I can do. You've had my advice.

And you, young man. Alison. My office. Now. Ooh. asking for reasons to trust him. I sent round a questionnaire The Terry Venables campaign. She confused him with Terry Waite. from yesterday's receptionist. And? Only one came back

Then use them. Were the answers good? Not bad. Erm, where's Jamie? Hiding from me. for two at Meccano, one o'clock. Right. Nick, I need a table I'd rather tear my head off. Are we on show? No we are not. Sounds ideal. Why? Table 12. Kaufman's table.

I've got champagne looking for a dark, moist hiding place. Right. Nick, Martin and this tutti frutti idiot, do I have to worry about that? Mmm, yes, I'm afraid you do. Make a note to worry after lunch.

There he is. It was a terrible party full of stuck-up ponces. I chatted to Brad and George but things only loosened up when we got to Century. You'd have hated it.

right-to-retire thing through. the guts to see this I want to be remembered for having