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Ten Early News -

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(generated from captions) This program is captioned live. Good morning. I'm Frank Coletta. And I'm Catherine Kennedy. You're watching Ten's Early News.

Iraq casualties - Our top stories this Monday morning, killed two former Australian police officers in a roadside bomb attack in Baghdad. Freedom fight - an accused Australian terrorist in court seeking bail,

let two suspects go. while police in the UK Clergy payout - hundreds of million of dollars the Catholic Church to spend sex abuse cases in the US. settling more than 500 breaks the 87 US cent mark And in finance, our dynamo dollar in almost two decades. for the first time of the markets with Catherine, Now let's take our first check for the Dow Jones? and a strong week ahead US stocks rallied to record highs That's right, Frank, numbers out over the weekend. despite weak consumer spending And when I return, in the mining sector. more consolidation in an ambush attack near Baghdad. Two Australian men have been killed The men had been in war-torn Iraq which trains local police recruits. working for a private company security contractors The two Australian of Baghdad were driving about 8km south-east they were travelling in when the convoy of armoured cars was ambushed by insurgents. They were in Iraq security company BLP International, working for Brisbane-based training Iraqi police recruits. both men were from Queensland, Aged 38 and 34,

as police officers. where they had worked a 38-year-old former prison officer, Another Aussie, and a Filipino

were also injured in the blast.

in hospital. They remain in a stable condition on BLP vehicles The attack is the seventh

the war-torn country three years ago. since it began working in A spokesman for the company says by the tragedy. the team is absolutely devastated with the men's families back home. DFAT officers are now working Australians to be killed The men were the 10th and 11th since the war began in 2003.

Australian soldier to have died. Private Jake Kovco is the only Rakhal Ebeli, Ten News. Mohamed Haneef Accused terrorist supporter if he is to be released on bail. will learn today has spent the weekend behind bars The 27-year-old doctor

after being charged a terror organisation. with recklessly supporting Attorney-General Philip Ruddock says won't be extradited to the UK. the Indian national surrender a person for extradition Australia would not normally that had to be dealt with here. where there were outstanding matters If found guilty, behind bars. Haneef faces up to 15 years Sydney is gearing up biggest ever security operations. for one of the country's parts of the city closed off, The APEC summit will see it won't be a total lock-out. the Prime Minister promising the harbour city should expect It's just a taste of what come the start of September - the Opera House a no-go zone, Government House also fenced off. the Botanic Gardens surrounding and American heads of state in town, With the Chinese, Russian the largest Australia has ever seen. the security operation will be among presence in part of the city There will be a significant security

the city is going to be locked down but any suggestion

is completely false. at the APEC venues Closed-off areas will be set up Bridge and Macquarie streets. as well as along become a special declared zone, A large section of the city will also with extra powers. and patrolled by police businesses will remain open. But ferry services will still run, of the restricted area, you will be allowed in and out is spending $169 million on security. The Commonwealth and NSW Government Daniel Sutton, Ten News. And the New South Wales Premier the State's rail network has threatened to privatise if services don't improve. Less than a fortnight on the Harbour Bridge after a train breakdown crippled the Sydney network, has told RailCorp management Morris Iemma a massive overhaul is needed. And he says long-running war with rail unions. it's time RailCorp ended its the involved parties today. Mr Iemma will meet The Catholic Church in Los Angeles more than $700 million has agreed to pay by the clergy. to victims of sexual abuse to the 1940s. Some of the offences date back of a sad saga, The settlement marks the end one that has spanned decades against more than 200 priests and involves allegations and Catholic workers. what was going on In many cases Church leaders knew to continue working. but allowed those priests to receive more than ?500,000. Each of the victims is expected be able to pay It just means that I will I should have gotten long ago, for some of the treatments that I've loved - but because this Church this was my Church - and didn't believe me... didn't want me As part of the settlement, that were made Church leaders must hand over notes of accusations against priests and how they were dealt with. its mission will be impacted The Church says

but not crippled. At least 70 people have been killed across Pakistan. in a weekend of violence ripped through the streets, In the latest attack, car bombs killing more than 30. of pro al-Qaeda extremists, The area is full and police departments. who are targeting government offices The escalation of violence comes at the Red Mosque in Islamabad, just days after a stand-off mostly hard-line extremists. which killed at least 100 people, The pilot of a small plane of a family home in the United States that crashed into the backyard has died. The single-engine Russian-built plane neighbourhood of Everett went down in the suburban in the state of Washington. to air traffic controllers The pilot had reported trouble saw a small plane fall from the sky. a short time after witnesses say they extinguish the flames Locals ran to help but the pilot couldn't be saved. have been dealt a blow Fremantle's slim finals hopes following a heart-breaking 4-point loss to the Kangaroos, the visitors' win taking them into the top four. A high-stakes game - Freo desperate to keep their finals hopes alive. COMMENTATOR: He's excellent this time. Scores are level. Scores grid-locked in the first term, but Brent Harvey kicked his second He beats the siren take the quarter-time lead. The Roos with a 5-point lead at the half and came out in the third term with a touch of magic. Oh, my goodness! Is that a goal? It's a freakish goal. The intensity lifting, saw Glen Archer at his best. but a defensive blunder from Freo saw Glenn Archer at his best. Archer, Archer - a terrific grab! A steadier from Peter Bell reduced the margin to 17. That only sparked the Dockers into action with three unanswered goals. The captain - time to deliver. Game on! Anxiety levels soared in the final stanza - Freo hitting the lead with nine minutes remaining. But that didn't last long. Archer puts the Roos back on top. The Kangaroos into the top four, while Fremantle's season is all over. Tim Hipsley, Ten News. To rugby league, and Scott Prince has sent a scare through the Gold Coast camp after reinjuring his collarbone. The decision to play the skipper could prove crucial in the run to the finals. and could be out for several weeks. He's booked in for scans today We were pretty confident that he'd get through the game. We wouldn't have risked him otherwise. He did cop a knock in the same area. It's not as bad as last week. He may have been able to continue, at a pinch. But, yeah, I don't know about next week. Prince's injury is not the only concern for the Titans, with the Gold Coast thumped 56-10 by Canberra. The Socceroos will attempt to save their flagging Asian Cup campaign tonight when they meet tournament co-hosts Thailand. The team and coach are under intense pressure following a disappointing 3-1 loss to Iraq on Friday. Everyone's pride is hurting, the whole team as well as my own,

and, you know, there's a lot of frustration around, but there's also a lot of positiveness. Australia must beat Thailand or they'll be eliminated from the tournament. Time for finance now. Catherine, more consolidation in the resources sector? That's right, Frank, another massive takeover in the mining sector is apparently imminent.

The market is speculating BHP Billiton could launch a $70 billion bid for its American rival Alcoa in the next fortnight. Analysts say it's likely BHP will offer US$55 a share for the aluminum giant, but so far both companies have refused to comment. Reports say BHP has already briefed Merrill Lynch on its plans for the takeover but some market sources say any bid could be scuttled by competition regulators across the globe. The Australian dollar has smashed the 87 US cent mark

for the first in more than 18 years. The local currency climbed as high as 87.2 US cents and analysts say it could move even higher. The recent strength follows more weaknesses in the US dollar over the weekend, which fell to a record low against the euro on the back of a weak consumer spending report. A short time ago A$1 was buying 87.14 US cents. Now for a look at the national weather. Let's take a look at today's newspapers. The 'Sydney Morning Herald' says the NSW Premier has given an ultimatum the management of Sydney's rail network and unions to fix the ailing network or face privatisation. The Australian Tax Office is battling with a list of hundreds of complaints from taypayers over mistakes and lengthy delays, that story in the 'Financial Review'. And the stars come out to cheer Sydney's beloved Swans - Sydney's 'Daily Telegraph' spots Nicole Kidman, Keith Urban and Hugh Jackman in the crowd. Kevin Rudd maintains the upper hand in the latest poll - we'll have those details when the Early News returns. SONG: # Hey, where's my Weet-Bix? #

Win with Weet-Bix and the mighty Socceroos. You could score one of five fantastic Hyundai Santa Fes or a trip to the Radisson, Fiji. There's thousands of other prizes and a Socceroos collector card in every pack. So for real energy, hook into wholegrain Weet-Bix. Mate! How many do you do? # Hey, where's my Weet-Bix? # This program is captioned live. Welcome back to Ten's Early News. This morning - moment of truth. A Gold Coast doctor linked to the failed UK terror plots to learn if he'll get bail

as police free two accused conspirators. Baghdad blast -

two Brisbane contractors killed in a roadside attack,

taking Australia's casualties to 11 since the Iraq war began. a woman in the US tumbles 20m to her death after the rope snaps. And in sport - Tour de Crash. An awful day for Australia as Stuart O'Grady and Michael Rogers tumble out of the cycle classic. Another check of the markets now. Catherine, more gains expected for the local market today? That's right, Frank, and it's after US stocks rallied Which carrier is considering selling the popular Apple iPhone in Australia? Protesters will this morning gather outside the court where accused terrorism supporter Mohamed Haneef will learn if he's to be granted bail. is the latest person to be charged In London, Haneef's cousin over the failed British bomb plot. Two other men have been freed. As Mohamed Haneef waits to hear if he will be released on bail,

his Gold Coast apartment, his lawyer Peter Russo visited and other affairs. seeking to sort out rent you know, who wants to make sure he's the type of person are properly sorted out. that all his affairs his wife pleaded his innocence. In his home town of Bangalore, upon my husband Whatever charges that have been put and senseless. are completely baseless I guess that everyone in the country knows that he is innocent now.

Haneef faces up to 15 years in jail supporting a terror organisation. if found guilty of recklessly Federal Police argue his mobile phone SIM card the 27-year-old gave Kafeel and Sabeel Ahmed, to second cousins in the failed UK car bombings. both suspects Haneef won't be extradited to the UK. Attorney-General Philip Ruddock says surrender a person for extradition Australia would not normally that had to be dealt with here. where there were outstanding matters surrender a person for extradition Australia would not normally that had to be dealt with here. where there were outstanding matters before being charged, Held for 12 days critical light the Haneef case has thrown new anti-terror laws. on the Federal Government's as being balanced and appropriate, The Government defends them there won't be some fine-tuning. but says that doesn't mean Leonie Mellor, Ten News. in a roadside attack in Iraq. Two Australians have been killed The men, both aged in their 30s, of Baghdad were driving about 8km south-east when the convey was ambushed. were also injured in the attack. Another Australian and a Filipino training police recruits They had been in Iraq security company, BLP. security company BLP. working for international since the war began in 2003. 11 Australians have now died to the polls continues. Kevin Rudd's barnstorming run The latest ACNielsen poll suggests his popularity the Opposition Leader has increased as preferred prime minister by one percentage point to 49. John Howard trails on 41.

on a two-party preferred basis. Labor leads the Coalition becoming a key election battleground, Meantime, housing affordability is the survey showing have cut their spending more than a third of respondents to deal with rising costs. Political leaders say during APEC, Sydney will not be locked down

despite tight security. Road blocks and searches will be enforced Roadblocks and searches at the week-long September summit, but the PM says only two areas - and Government House - the Opera House will be complete no-go zones. are spending $169 million The Commonwealth and NSW Government on security. to bring their own guns. they will not need Two deadly suicide bombings this morning in Pakistan. in the latest attacks, More than 30 people died killed since Friday. bringing to 70 the number of people

of deadly suicide bombings It's been a weekend in the north-west of the country. aimed at security forces In this one, explosions blew apart a military convoy. The human cost was very high - dozens of soldiers killed and wounded. elsewhere Others were killed and wounded at a police recruitment centre, by a suicide bomber in the heart of the capital, Army commandoes raided the mosque and Islamic radicals. taken over by pro-Taliban clerics Most of those killed were students from the mosque's religious school, the North-West Frontier region. many of whom came from the mosque was also used as a base The Army says with links to the Taliban by hard-core militants

in the north-west. It's that area which may now see an increase in violence. thousands of extra troops there. The Army has deployed a tribal area bordering Afghanistan In response, pro-Taliban militants in a 10-month-old peace deal have scrapped has plunged to her death A woman in the United States on a bungee jumping ride. an annual Christian music festival The woman was attending in Wisconsin when she fell off the ride. they heard a snapping sound Witnesses say about 20m to the ground. before the woman tumbled what caused the woman to fall, It's not known but one person taking the ride with her managed to survive. a critical condition in hospital An American zoo keeper is in after being mauled by a tiger. launched himself at the keeper Officials say the male Sumatran tiger of the San Antonio Zoo. in a non-public area The tiger was four to five years old. but has since been reopened. The zoo was closed after the attack at the Tour de France, A terrible day for Australians and Stuart O'Grady with Michael Rogers both crashing out of the event on Stage 8.

a suspected broken collarbone Rogers has after hitting a roadside barrier with 55km remaining.

gone down as well. COMMENTATOR: Oh, Rogers has

Rogers battled on with his injuries into a tearful exit. before being forced with Robbie McEwen disqualified The bad news continued for Australia on the eighth stage. for finishing outside the time limit the yellow jersey. Denmark's Michael Rasmussen secured and the New Zealand Warriors NRL - Canberra, Parramatta after Round 18. are back in the winner's circle for the Gold Coast - The news not so good their decision to play Scott Prince backfiring to the Raiders. during their 46-point defeat lining up Skipper Scott Prince

last week - after injuring his collarbone a welcome sight for Gold Coast fans. soon turned into a nightmare. But scenes at Canberra Stadium Prince booked in for scans today, on the sidelines. staring at up to six weeks We were pretty confident that he'd get through the game.

otherwise. We wouldn't have risked him It's not as bad as last week. He did cop a knock in the same area. at a pinch. I don't know about next week. But, yeah, The Raiders on a rampage, in the second half scoring six unanswered tries four-game losing streak, to break their 56-10. The Dragons' fairytale turn-around was brought to an abrupt end in Auckland. The Warriors dominating 44-16, their fourth win in five starts. Definitely coming home with a good finish for the season. The season's not dead and buried. It just makes it harder, that's all. Parramatta also impressing their home crowd. Timana Tahu returning from injury in style, helping the Eels to a six-point victory. COMMENTATOR: Tahu scores! Victoria Murphy, Ten News. The Kangaroos have continued their dominant form with a nail-biting 4-point win over Fremantle. The Dockers were hoping to keep but the Kangaroos held them off with a touch of magic.

It's a freakish goal. The game brought out the best in Glenn Archer. Fremantle's season is now all but over. Catherine's back with more finance and the iPhone on its way down-under? That's right Frank, Telstra is reportedly considering bringing the popular iPhone to Australia. Last month, thousands of Americans lined up for days to snap up the phone that also includes an iPod, camera

and access to the Internet. Telstra says it would consider becoming the main carrier of the device in Australia, because it has the only national network that is compatible with the device. The move comes despite Telstra's initial opposition to phone when it was first unveiled, which included comments from senior executive Greg Winn who said Apple should stick to its knitting. And victims who lost millions in WA's finance brokers scandal will this week start to retrieve some of their lost money. have been posted out Thousands of cheques compensation package. as part of a Government's 87-year-old Hilda Clark lost around $300,000 during the 1990s after money she'd invested was lost to unscrupulous finance brokers. The State Government agreed to the $30 million settlement earlier this year. It represents about 20% of their losses and the amounts vary from about $1,000 up to almost $500,000. I've never let it really get me down because I think I'm not the only one. The Government's $30 million compensation package includes a $3.4 million payment to fund litigator IMF Australia for legal, administration and assessment fees. This issue was an election issue in the election before this and certainly Mr McGinty and others here promised they would get to the bottom... Promised they would sort it, yeah. ..and it has taken a while. We delivered on our election commitments and we felt that in order to try and bring closure, we would add this compensation fund.

IMF is still pursuing millions of dollars in compensation from law firms involved in the scandal. Jamie Freestone, Ten News. Now for a look at the national weather.

Two Australian contractors killed in Iraq, those details next. British singer-songwriter Phil Collins

has brought a touch of paradise to Italy. The 56-year-old and his Genesis band members

entertained an audience of over 500,000 at a free concert in Rome. Collins sang the lead vocals on eight American chart-toppers between 1984 and 1989. Two Australian contractors killed in Iraq, those details next. And the CommSec finance report when the Early News returns.

This program is captioned live. Our top stories this Monday morning, Iraq casualties - two former Australian police officers killed in a roadside bomb attack in Baghdad. Freedom fight - an accused Australian terrorist in court seeking bail, let two suspects go. while police in the UK Clergy payout - the Catholic Church to spend hundreds of million of dollars settling more than 500 sex abuse cases in the US.

And in finance, our dynamo dollar breaks the 87 US cent mark for the first time in almost two decades. Time for another look of the markets with Catherine,

and US stocks put in an impressive performance. That's right, Frank, US stocks rallied to record highs despite weak consumer spending numbers out over the weekend. All the latest from CommSec in about 10 minutes. A Brisbane magistrate will decide today Two Australian men have been killed in an ambush attack near Baghdad. The men had been in war-torn Iraq A Brisbane magistrate will decide today whether Gold Coast terror suspect Mohamed Haneef is entitled to bail.

British authorities have meantime freed two men being held over last month's failed UK terror attacks. Mohamed Haneef has been charged with recklessly supporting a terrorist organisation and, if convicted, faces up to 15 years in jail. His wife has spoken on Indian television, pleading her husband's innocence. Whatever charges that have been put up on my husband are completely baseless and senseless. I guess that everyone in the country knows that he is innocent now. Federal Police argue Haneef provided his mobile SIM card to his second cousins Kafeel and Sabeel Ahmed, who are considered key suspects in the failed UK terror plots. It's alleged Kafeel drove the Jeep into Glasgow Airport loaded with fuel canisters. The SIM card was found inside the burnt-out four-wheel drive.

They are very serious issues and we appreciate they are very serious issues. They're not brought lightly. Matters are considered by the police on the basis of evidence available. Overnight, British authorities freed two men, believed to be trainee doctors, who were being held over the plots. Back home, Haneef's lawyer is working on more than just his client's defence - Peter Russo settling an outstanding rent account

with the doctor's landlord. Haneef has been out of the Southport unit since his arrest almost a fortnight ago. Anthony Donaghy, Ten News. The APEC summit will see parts of the city closed off, the Prime Minister promising it won't be a total lock-out. Quick-thinking neighbours have pulled six people from a burning boarding house in Brisbane. They woke the residents from their sleep late last night, just moments before the flames took hold. Emergency crews were called to the inner-city-address, but it was too late. They did manage to save surrounding buildings. One of the residents is in hospital with minor burns. Authorities are still yet to track down 120 Australian passengers who shared a flight with a man diagnosed with polio. Those who have come forward have been given emergency immunisations. Lining up for a polio booster vaccine is not how the Gath family imagined their overseas holiday

would come to an end. (Child screams) They were 4 of 249 passengers who travelled with a Melbourne student diagnosed with the infectious disease after a recent trip home to Pakistan. We were a bit shocked at first, and I read up on the Internet about polio to know more information about it. David Irvine says his wife has been experiencing what he fears could be polio symptoms

after returning on the flight. I had a chap sitting beside me for the flight, who I talked to, He's in the same age group, he was a student

and that was the main reason we came and made contact. Health experts say while the jabs are necessary, the likelihood of passengers contracting the disease is low. Anyone who was aboard

Thai Airlines flight TG 999 from Bangkok on July 2 can call: Veronica Buck, Ten News. The Catholic Church in Los Angeles is to pay dearly for its child sex abuse scandal. It's agreed to pay at least $700 million to people preyed upon by the clergy, that's about $1.5 million each.

It just means that I will be able to pay for some of the treatments I should have got long ago.

The archdiocese is expected to sell some real estate to meet its liabilities. A sombre ceremony this morning in Texas - the casket containing Lady Bird Johnson has been moved from the State Capitol building in Austin, the funeral procession winding its way

past her late husband's boyhood home ahead of her burial later today. The former first lady will be laid to rest next to her husband, Lyndon Johnson, at their ranch. She was 94 when she died last week. Parts of Japan remain on high alert this morning as a powerful storm threatens the country's north-east. The typhoon, which has been downgraded, managed to miss the capital Tokyo but forced tens of thousands to evacuate

and left at least five people dead. Weather forecasters say heavy rains, high winds and powerful seas will continue to lash the coast, but conditions are weakening. Airlines have cancelled flights, with a number of highways and train services closed. Fremantle's slim finals hopes have been dealt a blow following a heart-breaking

4-point loss to the Kangaroos, the visitors' win taking them into the top four. A high-stakes game - Freo desperate to keep their finals hopes alive. He's excellent this time. COMMENTATOR: Scores are level. Scores gridlocked in the first term, but Brent Harvey kicked his second just in the nick of time. He beats the siren and the Kangaroos take the quarter-time lead. The Roos with a 5-point lead at the half

and came out in the third term with a touch of magic. Oh, my goodness! Is that a goal? It's a freakish goal. The intensity lifting, but a defensive blunder from Freo saw Glenn Archer at his best. Archer, Archer - a terrific grab! A steadier from Peter Bell reduced the margin to 17. That only sparked the Dockers into action with three unanswered goals. The captain - time to deliver. Game on! Anxiety levels soared Freo hitting the lead with nine minutes remaining. But that didn't last long. Archer puts the Roos back on top. The Kangaroos into the top four, while Fremantle's season is all over. Tim Hipsley, Ten News. The Socceroos will attempt to save their flagging Asian Cup campaign tonight when they meet tournament co-hosts Thailand. The team and coach are under intense pressure following a disappointing 3-1 loss to Iraq on Friday. Everyone's pride is hurting, the whole team as well as my own, and, you know, there's a lot of frustration around, but there's also a lot of positiveness. Australia must beat Thailand or they'll be eliminated from the tournament. Time for more finance and a milestone week expected in the US. Yes, Frank, all eyes will be on Wall Street this week with the Dow Jones eyeing more record highs. The index is within striking distance of the 14,000 mark after putting on another 45 points over the weekend.

This week marks the start of the second-quarter earnings season with market watchers predicting a raft of strong profit results which should continue to buoy the Dow. The strong corporate activity is expected to offset any weakness

sparked by weak retail sales and the meltdown in the market. For more on what we expect out of the US this week and on our market we're joined by Craig James from CommSec. Craig, the Dow's solid run is set to continue?

It looks like that for 10 Gaza

market will be a formality. It was

a good earnings results from

General Electric on Friday.

Similarly good results are expected

this week for other companies. So

what is expected locally this way?

Not too much.

Not too much. Figures on consumer

credit will be out on Thursday.

Most interest is likely to be in Most interest is likely to be in

terms of corporate events. Rio

Tinto releases Tinto releases second-quarter

production figures midweek and

Harvey Norman comes out with its

4th quarter sales figures. The

Aussie dollar stellar run

continues? It is good news if

you're travelling overseas. you're travelling overseas. It has

smashed through 87 US cents. Good-

news if you are going overseas news if you are going overseas or

play into by an imported car or television. Now for a look at the national weather.

Let's take a look at today's newspapers.

Terrorism supporter Mohamed Haneef back in court this morning. What's expected? We'll tell you when the Early News returns.

This program is captioned live. Welcome back to Ten's Early News. This morning - moment of truth. A Gold Coast doctor linked to the failed UK terror plots to learn if he'll get bail as police free two accused conspirators. Baghdad blast - two Brisbane contractors killed in a roadside attack,

taking Australia's casualties to 11 since the Iraq war began. Bungee tragedy - a woman in the US tumbles 20m to her death after the rope snaps. And in sport - Tour de Crash. An awful day for Australia as Stuart O'Grady and Michael Rogers tumble out of the cycle classic. Last look at the markets, here's Catherine. Thank you, Frank. US stocks rallied to record highs

despite weak consumer spending numbers.

And before the end of the bulletin why a coffee giant has closed one of its main stores in China. Protesters will this morning gather outside the court

where accused terrorism supporter Mohamed Haneef will learn if he's to be granted bail. In London, Haneef's cousin is the latest person to be charged over the failed British bomb plot. Two other men have been freed. if he will be released on bail, As Mohamed Haneef waits to hear his lawyer Peter Russo visited his Gold Coast apartment,

and other affairs. seeking to sort out rent

you know, Whether he comes back here or not,

who wants to make sure he's the type of person

are properly sorted out. that all his affairs

his wife pleaded his innocence. In his home town of Bangalore, upon my husband Whatever charges that have been put and senseless. are completely baseless knows that he is innocent now. I guess everyone in the country Haneef faces up to 15 years in jail supporting a terror organisation. if found guilty of recklessly

Federal Police argue his mobile phone SIM card the 27-year-old gave Kafeel and Sabeel Ahmed, to second cousins in the failed UK car bombings. both suspects Haneef won't be extradited to the UK. Attorney-General Philip Ruddock says surrender a person for extradition Australia would not normally that had to be dealt with here. where there were outstanding matters before being charged, Held for 12 days critical light the Haneef case has thrown

new anti-terror laws. on the Federal Government's as being balanced and appropriate, The Government defends them there won't be some fine-tuning. but says that doesn't mean Leonie Mellor, Ten News. to the polls continues. Kevin Rudd's barnstorming run The latest AC Nielsen poll suggests the Opposition Leader has increased his popularity as preferred PM

by 1 percentage point to 49. John Howard trails on 41.

on a two-party preferred basis. Labor leads the Coalition becoming a key election battleground. Housing affordability is meantime more than a third of respondents The survey showing

to deal with rising costs. have cut their spending in an ambush attack near Baghdad. Two Australian men have been killed The men had been in war-torn Iraq which trains local police recruits. working for a private company security contractors The two Australian of Baghdad were driving about 8km south-east they were travelling in when the convoy of armoured cars was ambushed by insurgents. They were in Iraq security company BLP International, working for Brisbane-based training Iraqi police recruits. both men were from Queensland, Aged 38 and 34, as police officers. where they had worked a 38-year-old former prison officer, Another Aussie,

and a Filipino were also injured in the blast. in hospital. They remain in a stable condition

on BLP vehicles The attack is the seventh the war-torn country three years ago. since it began working in A spokesman for the company says by the tragedy. the team is absolutely devastated with the men's families back home. DFAT officers are now working

Australians to be killed The men were the 10th and 11th since the war began in 2003. Australian soldier to have died. Private Jake Kovco is the only Rakhal Ebeli, Ten News. North Korea is preparing its nuclear program to completely disable of its only reactor. following the shutdown is making it clear But the communist regime that further moves are conditional all sanctions. on the United States lifting 6,000 tonnes of oil Yesterday the country received as a reward for the nuclear shutdown. The Catholic Church in Los Angeles more than $700 million has agreed to pay to victims of sexual abuse by the clergy.

Some of the offences date back to the 1940s. The settlement marks the end of a sad saga,

one that has spanned decades and involves allegations against more than 200 priests and Catholic workers. In many cases Church leaders knew what was going on but allowed those priests to continue working. Each of the victims is expected to receive more than ?500,000.

It just means that I will be able to pay for some of the treatments I should have gotten long ago, but because this Church that I've loved - this was my Church - didn't want me and didn't believe me... As part of the settlement, that were made Church leaders must hand over notes of accusations against priests

and how they were dealt with. The Church says its mission will be impacted

but not crippled. A woman in the United States has plunged to her death on a bungee jumping ride. an annual Christian music festival The woman was attending n annual Christian music festival in Wisconsin when she fell off the ride. Witnesses say they heard a snapping sound It's not known what caused the woman to fall, but one person taking the ride with her managed to survive. A massive bushfire is threatening the Turkish resort town of Bodrum. At least 100 hectares have so far been destroyed, with several villages evacuated as

At the moment tourists are not being told to avoid the region, but thick smoke is blanketing most of the region. It's not yet clear what started the fire but a blaze scorched forests in a similar area just last week.

A terrible day for Australians at the Tour de France, with Michael Rogers and Stuart O'Grady both crashing out of the event on Stage 8. Rogers has a suspected broken collarbone after hitting a roadside barrier with 55km remaining.

COMMENTATOR: Oh, Rogers has gone down as well. Rogers battled on with his injuries before being forced into a tearful exit.

The bad news continued for Australia with Robbie McEwen disqualified for finishing outside the time limit on the eighth stage. Denmark's Michael Rasmussen secured the yellow jersey. NRL - Canberra, Parramatta and the New Zealand Warriors

are back in the winner's circle after Round 18. The news not so good for the Gold Coast - their decision to play Scott Prince backfiring during their 46-point defeat to the Raiders. Skipper Scott Prince lining up

after injuring his collarbone last week - a welcome sight for Gold Coast fans. But scenes at Canberra Stadium soon turned into a nightmare. Prince booked in for scans today,

staring at up to six weeks on the sidelines. We were pretty confident that he'd get through the game. We wouldn't have risked him otherwise. He did cop a knock in the same area. It's not as bad as last week. He may have been able to continue, at a pinch.

But, yeah, I don't know about next week. The Raiders on a rampage, scoring six unanswered tries in the second half to break their four-game losing streak, 56-10. The Dragons' fairytale turn-around was brought to an abrupt end in Auckland. The Warriors dominating 44-16, their fourth win in five starts.

Definitely coming home with a good finish for the season.

The season's not dead and buried. It just makes it harder, that's all. Parramatta also impressing their home crowd. Timana Tahu returning from injury in style, helping the Eels to a six-point victory. Tahu scores! The Kangaroos have continued their dominant form with a nail-biting 4-point win over Fremantle. The Dockers were hoping to keep their slim finals hopes alive but the Kangaroos held them off with a touch of magic. COMMENTATOR: Oh, my goodness! Is that a goal? It's a freakish goal. The game brought out the best in Glenn Archer. Fremantle's season is now all but over. Now our final look at finance and changes expected for Rio Tinto. Rio Tinto is expected to sell off some assets in the wake of its $44 billion takeover for Canada's Alcan.

Chief executive Thomas Albanese says the group may be forced to sell off some business units to help pay off debt following the huge takeover. The miner's current debt to equity ratio is at 64% but management is looking to lower that figure. The decision comes as speculation grows BHP Billiton is about to make a $70 billion takeover for US-based aluminium giant Alcoa. And a dramatic backflip for one of the world's biggest corporations in China. Starbucks shutting down one of its most controversial stores located at Beijing's Forbidden City. The closure ends seven years of often fierce debate, which included protests at the ancient site. The store closed after the Imperial Palace's management decided they wanted all stores to operate with palace branding. Starbucks was given the opportunity to stay on with the new branding but decided against it. The American-based coffee chain still has 250 stores in China. all the day's finance news. And that is Now for a look at the national weather.

A quick recap of the morning's top stories. Deadly ambush - two former Australian police officers killed in a roadside bomb attack in Baghdad. Bail application - an accused Australian terrorism supporter to learn his fate in court, while overseas, police free two of the failed UK attack suspects. And compensation win -

agrees to pay scores of sexual abuse victims more than $700 million. That's it for Ten Early News. The Morning News starts at 11:00am I'm Frank Coletta. 'Bye for now. And I'm Catherine Kennedy. Good morning. Supertext captions by the Australian Caption Centre. www.auscap.com.au