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6.30 With George Negus -

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Tonight - sent to the naughty

corner, America's triple A credit

rating downgraded for the first

niem history. The mission has to be

to get the economy growing faster

and creating more jobs. Seismic

shift in the Australian market, and

Australian shares reacted with

another steep dive today. What is

the long term impact sand your

super safe. I'm Hamish McDonald,

welcome to '6.30'. Also tonight,

why the government's asylum seeker

deal with Malaysia was put on hold

today. And how being a mum can be

big business. First tonight, for

anyone with their money in the

stock market and because of super

schemes that's most of us theories

nervous times with our market

continuing its slide today. It's

now below what it was two years ago.

The US has received a stern warning

from China end its debt obsession

or face the consequences. China may

be the world's biggest critter but

the entire world is affected by the

fall of this super power. That

nudge it is out of the ranks of the

world's most bankable economies.

America downgraded for the first

time in history the U. Is stripped

of its top credit rating. The US

economy is again in the cross-hairs.

The downgrade of America's debt by

a ratings agency... Billions wiped a ratings agency... Billions wiped

off the markets in a week the world

stared into the abyss of recession

again. It was flagged, expected but

is historic nonetheless. For the

first time the US has had its

credit rating downgraded - in

enough to send shudders across the

globe. It's a wakup call for

Congress. Effectively standard and

Poors have given them a fail mark

on their attempt to get their

budget deficit under control. But

many are saying it's not as bad as

it seems. The US is seen as the

global safe haven. The downgrade

came from just one of the world's

ratings agencies. It's symbolic in

a financial sense. But the US

government can borough money at

under 257 per cent. Many Australians would be happy to

borough money that the interest

rate. The US President returned fr

a short break trying to overcome a

three pronged nightmare. First the

Tea Party - they threw out the

steering wheel from the window last

week in the debt negotiations.

Secondly, the US economy is on life

support. Unemployment above 9 per

cent, flat housing price and

American consumers are not spending

any money. Thirdly, Barack Obama

fired all his bullets against the

financial crisis two years ago.

There is nothing left in the

arsenal. The US economy produces

around $15 trillion a year but has

$14 trillion from debt. The best

guess is this means $75 billion a

year extra in interest. The former

federal US reserve Chairman isn't

sure whether the recovery will be

easy, saying the downgrade hit a

nerve. Considering the momentum

with which the market went down

over the last week it's unlikely if

history is any guide that this

won't take a while to bottom out.

So the initial reaction will be

negative. If the US were to go back

into recession, for example, that

might be sufficient to cause

weakness in China. That would come

back to Australia through lower

commodity prices and also

potentially lower commodity volumes. potentially lower commodity volumes.

Panick is continuing. Another $17

billion wiped off the Australian

share market today, sending it to a

25-month low. On Asian markets fear

overcame greed and few are buying.

US law makers are still bikering,

prompting a warning this may not be

the last downgrade. If the fiscal

position of the US deteriorates

further or the political gridlock

becomes more entrenched that could

lead to a downgrade. The outlook

indicates at least a one in three

chance of a downgrade over that

period. So a big question: could we

see a GFC mark 2? Economists

believe it's a real possibility

with so many economies on a knife's

edge, fearing global markets would

find it difficult to pull back from

the brink should there be another the brink should there be another

unexpected event like the collapse

of another major bank. Shoring up

the crumbling economies of Spain

and Italy is now a key priority in

heading off the mounting debt

crisis. Eddy Meyer with that report.

Geoff from super ratings is we me

now. Many Australians are exposed

to this through their superannuation. How much are they

being punished today? Over the last

five weeks super funds have gone

down 5 per cent. So virtualy 1 cent

a week since July. That has come

off the back of two really positive

years where super funds gained 20

per cent. It's a bad short-term

anom mally in the market but over

the last two years it's not bad.

There is talk of pro-tracted market

difficulty. For anyone thinking of

retiring soon it's not comforting?

No, it's not. The most affected No, it's not. The most affected

people are those approaching people are those approaching

retirement and those in retirement.

Since the pre-GFC highs we still

haven't got back to that point -

still around 10 per cent off there.

If you stayed - the average

Australian is in a balanced

portfolio, which is up around 20

per cent since the lows of the GFC

in the middle of 2008. But they

haven't recovered fully? No, the

closest they got was in March this

year to around 4 per cent of the

pre-GFC highs. Since then up to

August they have been hammered hard.

Basically because they have a 55

per cent exposure to Australian and

international shares. When those

markets tank so does your super

fund. You seem relatively upbeat,

contrary to everything we're

reading. The analysis is so

negative. The thing with super -

everyone fall noose the trap. They

look at that time on a short-term

basis T sells papers to say look it

lost 5 per cent in the past two

weeks. Australians because of the

compulsory nature of super will be

in the system for around about 65

years from the beginning of their

working life at 18 right through

until they pass away on a

superannuation pension. We're not

talking short-termism here. You

have to look at 7 to 10-year

performance numbers to say how the

system is working. If you look at

those 10 year numbers it's only 5

per cent per annum but it's

positive and well above inflation.

On that measure, yes, super funds have performed. Unfortunately have performed. Unfortunately

everyone is copping this volatility everyone is copping this volatility

fufplt look over the past 20 years

there have only been three years of

negative performance and two have

been in the last four years. That's

why it's front of mind at present.

They are talking about seismic

shifts in the way the global market

works. How certain are you of what

you are saying? You can only go by

history when it comes to investment history when it comes to investment

and clearly history is not a

perfect guide. A lot of people are

talking out there with hindsight,

which we don't all get to use

unfortunately. But the reality is

most naupbs a balanced portfolio,

yes, it's appropriate for them. For

retirees probably not; it probably

has too much share market exposure.

Having side that, for someone in

their 20s or 30s, someone in a

balanced portfolio, that's probably

too conservative. They should be

more exposed to the cycles because

they can come out. 20 years on

there might be another crash. Who

is to say there won't be another

one in 20 years? Through your

working life and retired life you

will see three or four of these

things. You need understand where

your money is invested, what

exposure there is to shares. If you

can't handle volatility, go for something conservative. Let's move something conservative. Let's move

to a developing story. There is a

major roadblock for the federal

government on asylum seekers

tonight. Its much vaunted Malaysia

solution is on hold following a

High Court ruling. Refugee

advocates have won a two week

injunction that stops any asylum

seekers being moved from Christmas

Island. The government insists it's

only a delay but those who mounted

the challenge say it's only the

beginning. The court has said that

the Australian government at the

moment cannot - is prohibited from

expelling our clients to Malaysia

pending the outcome of the case.

Really, this case is fundamentally

about whether our clients who have

come to Australia seeking refugee

protection have that right to seek

protection in Australia rather than

being expelled to Malaysia. That's

the central issue here. And whether

or not in expelling them Malaysia

they would be properly protected

there and including whether there

would be adequate human rights

standards in Malaysia to

essentially allow for their

expulsion there. The asylum seekers

should have been arriving in KL

later this evening. '6.30''s max

Fucher is there. This High Court

ruling throws a spanner in the

works for the government. They were

ready at this end with security he

is are the courts and accommodation.

But that's on hold for at least a

fortnight. Under the extended

injunction no one can be removed

until the High Court full bench

assists. The government says it

expected legal challenges but it's

not a smooth start to this thing

they are calling the Malaysian

solution. In your travels you are

looking at whether refugees are

being treated well. That whole

issue is central to the case. What

is your understanding from talking

to Malaysian politicians about this.

They don't have a good track record

on human rights especially with

refugees, who live in constant fear

of arrest and caning in depore

takes. - and depore takes. I put

all this to a government spokesman

today, asked him about the

treatment of these people when they

do arrive and here is a bit of what

he had to say. Generally we will

give them their basic human right

needs. OK, I think that will be

handled. I don't think they will

not be mistreated as far as that

area is concerned. They will be

taken care and due process - what I

mean is they will not be able to

jump you. We have people already

here as refugees. These 800 people

will come in and be part of them

and wait for their turn to be

placed in a country. He says

depending on how the first 800 for

4,000 deal goes between Malaysia

and Australia, they are not ruling

out any further deals, not that

this one has any wings just yet.

Still ahead - a new breed of stay

at home mums making a healthy

living in the online world. And making VOICEOVER: Romeo wants Juliet. Juliet wants Romeo. It's an old story with a twist. Enter Commonwealth bankers and a Same Day Personal Loan that brings them together sooner than imagined. Happiness. We're here to see how people react when they try Colgate Sensitive Pro-Relief. I want you to rub some of this toothpaste onto each sensitive tooth for one minute. Now, drink this iced water. Do I have to? Yes, you do. Go on. It's fantastic. It was just an instant reaction. I can actually have the iced water just sitting in my mouth. How does it work? Well, it's the Pro-Argin formula that actually seals the open channels to the nerves.

With regular brushing, you get long-lasting relief. Ice-cream, here I come. To me, the most inspiring thing is that a community of this size can build two turbines. They're capable of providing enough electricity to run the whole township area. WOMAN: People who weren't interested in renewable energy said, "That is fantastic." Going down the street and hearing people talking about them,

in the main street, is awesome.

VOICEOVER: Australians are already working for a clean-energy future, but a carbon price will help us do more. More than half the money raised will go to households. In fact, 9 in 10 households will receive tax cuts, increased payments, or both. And with the rest, we'll be supporting jobs and investing in our clean-energy future. Find out what a carbon price really means for you at:

glamorous Megan Gale. And the

brilliant Masterchef winner Kate.

Did you watch the tpwiepbl? Yeah,

massive. Welcome back. It can be a

family's saddest decision - what to

do with parents facing the prospect

of aged care. The productivity

commission has produced a landmark

report saying people shouldn't be

forced to sell the family them pay

for care. The catch is the

government won't commit to

accepting the findings. Pat Short

still has trouble walking but

believe it or not she is one of the

lucky ones. One evening I was

getting into bed and my walker

didn't have brakes. I pushed it and

fell. She went to hospital and

never returned home. The first day

I came here I cried all night - the

whole night. But now I think it's

lovely. Here is where she is lucky.

The 75-year-old could afford the

cost of an accommodation tpwond buy

her way into a nursing home. They

are usually raised through people

having to conduct a fire sale of

their own home at the point when

they realise they need enter

residential aged care. It's because

we're living longer and the current

aged care system can't cope with

the increased demands and cost. As

a nation we face the challenge of

providing care to these older

Australians knowing that the number

will grow. The Productivity

Commission's solution is to allow

people to unlock the equity in

their home to pay for their care

without it affecting the pension....

Economics doesn't account for and

that's the importance of listening

to people and hearing from them

their story. No one will need to

sell the family home. But if

pensioners want to sell their home

to pay for the care they can; the

proceeds will go into a savings

account which can be spent however

they want. The money won't be

counted in the means test and

therefore their pension won't be

affected. It's about giving people

the care they want. Residents can

choose pay a bond or daily rate but

still have to contribute to their

accommodation and care costs and

after means testing they could

still pay up to 25 per cent of

costs. This report abandons aged

care as a community service and

puts into in its place a user pays

system. It's a declaration of war

on older Australian their children

and grandchildren. For me and for

the government this is not a

savings exercise. The changes bring

relief for Pat. Her husband is

about to undergo surgery and if he

ends up needing care like she does,

he could get it from the comfort of

his own home. He would never be

happy here. He couldn't sit still happy here. He couldn't sit still

for two minutes. While the state of

aged care isn't good the government

will be using this report as its

Trigger to overhaul the system.

Politically it will be hoping to

get some positive traction from

this, addressing something anything

society and the focus is still off

that toxic carbon tax. Now begins

the lengthy consultation stage.

There are issues in aged care today

and they are wages and staffing

levels. We can't wait three to five

years. In 48 hours the long wait

for Australia's livestock industry

will be over. 3,000 head of cattle

will set sail for Indonesia - a

month after the ban on live exports

was lifted. But animal welfare

groups are refusing to let the

animals go lightly, launching a

fresh attack on what they consider fresh attack on what they consider

to be a cruel practice. By

Wednesday, 3,000 head of cattle

will be on their way to Indonesia -

the first shipment since live

exports were suspended in June in

response to animal welfare concerns.

While there is movement at the

station, no one is celebrating. The

trade will trickle for a while.

There are people out there now

hanging on a knife's edge. These

animals were only supposed to spend

a week that the pre-export

quarantine facility near Darwin.

Instead they have been stranded for

more than two months. The stock is more than two months. The stock is

owned by Elders, the first of only

two traders granted export permits

under the federal government's

strict new animal welfare standards. strict new animal welfare standards.

The controversy over the ill

treatment of cattle in Indonesian

slaughterhouses has hurt everybody

in the supply chain. In the two

months we have missed out on 17,000

20,000 head - a big impact on our

business. Even once they leave

Australian shores it won't be plain

sailing. There will be shipping

problems. Vessels relocated to

other markets in the world. It's other markets in the world. It's

just a token gesture. These cattle

were purchased pre-the ban. From

what I sthand there is a lot more

that exporters own sitting in

holding paddocks over here. For the

first three ships producers won't

get any income. The cattle

controversy has already cost more

than 300 jobs. Station owner Don

White says his family has been

forced to lay off staff. We've gone

back to skeleton. We've - me and my

wife and my parents are running

their operation. There is nobody

there. The RSPCA and Animals

Australia are stepping up their

attack on live cattle exports with

a series of new ads - they are not

as graphic as the footage collected

in Indonesian abattoirs but still

the last thing the industry needs

right now. Producers say they are

concerned about the welfare of

300,000 cattle ready for sale now

stranded across Australia. The

agriculture minister says more than

35 million in assistance will help

them through the crisis and demand

for Australian stock remains strong.

But producers have little

confidence in government promises.

It will take that long to sort out It will take that long to sort out

the mess they have created. It's

like a train crash. The locomotive like a train crash. The locomotive

has gone off the bridge and the

train is still coming. Next, how a

group of mums is turning simple

online chat into a growing business.

Next, a tiny carrot on

Welcome back. Just to remind you -

you can always join the

conversations on Twitter. I know

many of you are tonight because of

this story. Mums tend say exactly

what they think but a group of

Australian mums is being paid to do

just that. While the internet

bubble may have burst a long time

ago in the blogosphere some mums

are cashing in on their merely are cashing in on their merely

advice. The world's biggest blog

conference is being held in San

Francisco. They are the new breed

of mums - super funeral social

media queens. - super influential.

This is their Mecca. Thousands of

keyed in women and two a long way

from home. Are you overwhelmed by

how huge it is? It's massive. Back

in Australia these mums led

separate but similar lives - young

kids a computer and a story to

share. It was an infertility blog.

I was lucky enough to get pregnant

on my first try of IVF. So it then

became a pregnancy blog. I thought

when the baby was born I would shut

down the blog. Five days before the

birth of our child from the IVF my

husband was crouched over in our

bedroom going, "What side is your

appendix on?" He cancer. A stomach

full of cancerious tumours. My

husband was vomiting and sick with

cchemo. Michael wouldn't latch on.

It was horrific. I would go online. It was horrific. I would go online.

Straightaway there are people.

Across town... What should we write

about today. Another lady began

writing too, the mundane minutes of

her life she thought no one would

read. It's a lonely job, staying at

home with babies and toddlers can

be lovely but, you know, when they

are having their sleep it's really

nice to reach out online. But it's

become so much more. In the last 12

months with the growth in traffic

to my blog it has become like

another form of media. Of course,

where there is media and readers

there is going to be an opportunity

for sponsorship and advertising.

Because mums hold so much buying

power their Bloggs are attracting

big business. It's important if

there are influential people within

the social media space Qantas is

getting our message across. Qantas

picked up the Australiaise' flights

to America where they are fussed

over like celebrities. To sell off

their side bars to advertisers.

What do you blog about? Who doesn't

love a bit of cash? To some mums

sponsors are paying enough to live

off. It's tricky to negotiate. I

don't want to pimp out. It's a

space that I created and I feel

defensive of it. That's not the

reason I started bloging. You found

her a couple of years ago. She is

just funny, she open and honest

about everything. She definitely

tells it like it is. What started

as story telling... Eden Riley.

Hello, America. Thank you for

having me.... Has at the very least

led to a real off line friendship,

plus a little fame. And for many

mums the prospect of earning again,

letting dad take a break. She has

always promised me in 10 years time

I can be the house daddy and spend

more time with the kids. I can't

wait. Remarkable story. Remarkable

women. The hero tag gets over used

at times but in the case of Nancy

waik it's an understatement. It's

with great sadness that Australia

lost her overnight. Nicknamed the

white Mouse she was in France when

the Nazis invade. She joined the

French resistance and became the

Gestapo's most wanted person and

became so clever at avoiding

capture she became known as the

white Mouse. She was 98. It's been

a busy program for a Monday night.

The '7 PM Project' is next. From me

and all the team, thanks for

watching. Have a good evening.

Supertext captions by Red Bee Media - - www.redbeemedia.com.au.

This program is captioned live.

Tonight - should they say or should

they go? The 11th hour bid to stop

refugees being stont Malaysia.

Holding out hope for a stranded

young one, Megan Gale joins us live

in the studio. And we celebrate

with Masterchef Kate. This is the

'7 PM Project'. Good evening,

welcome to the '7 PM Project'.

Please welcome back to the desk

Kath Robinson and Steve Cannane.

Good to be here. Welcome to you.

You can join in the chat via

Facebook, Twitter and the website.

What is making headlines first? The

Australian stock market has taken a

hammering after the US credit

rating was downgraded on the

weekend. In afternoon trade the ASX

plummeted below 4,000, its lowest

level in over two years. Treasurer

Wayne Swan says the economy is

ready to handle anything the world