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Ten Early News -

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(generated from captions) This program is captioned live.

Good morning, everyone. This is

Ten's Early News.

I'm Ron Wilson. And I'm Kathryn

program. Robinson. Welcome to Tuesday's

counting down to The headlines this morning - The headlines this morning -

counting down to the Budget. Can

the Government balance the books

affections? and buy its way back into voters'

One dead and four missing in a

fatal fishing trip. This morning,

rescue teams are resuming their

search.

In sport, Carlton snapped their 12-

game losing streak against St Kilda

with a 61-point drubbing.

Then in finance - thanks a trillion.

Stocks rocket off the back Stocks rocket off the back of a

massive European rescue plan to

avoid a major debt crisis. Kevin Rudd

Kevin Rudd is desperately hoping

today's Federal Budget can win big

his wavering voters. The PM is

under no illusion that it will

election prospects. prove crucial to Labor's re-

The Budget that the Government

hopes will save its bacon was

delivered last night to Federal

Parliament. At the same time, MPs

were at the loj for drinks with the

Prime Minister after a caucus Prime Minister after a caucus

meeting that saw a stark assessment

of the Government's prospect. We

always have full and frank

discussions at caucus and that

happened today. We always have a

meaningful caucus. Veteran MPs

quizzed the Prime Minister on

climate policy, asylum seekers and

even if he was spending too much

time through hospitals. The time through hospitals. The

catalyst is the polls, Nielsen

showing a collapse in the Prime

Minister's approval rating with the

Coalition now neck and neck. I

don't have tickets on myself and I

know I have a job ahead of me.

The Prime Minister conceded to his

MPs these are difficult times for

the Government. He says the Budget

will be critical in highlighting

what he says is Labor's formidable

record in handling the economy.

This is a budget which will build

for the future. Expect no frills, a

focus on drawing down the deficit

on fiscal discipline. When you look

what's happened overseas in regards what's happened overseas in regards

to the global financial crisis, I

think the Treasurer and the Prime Minister have been fantastic and

looking forward to the Budget. With

Julia Gillard now daily having to

hose down suggestions she's in the hose down suggestions she's in the

frame to take over the leadership,

the Prime Minister will be hoping

turnaround. the Budget does begin the

Later in the program we'll be

looking in detail at how today's

finances. budget is likely to affect your

Rescue crews are set to resume

their search for four missing

anglers south of Newcastle this

hour. A rescue operation was

launched yesterday after launched yesterday after

authorities learned they were

missing. Five Sydney adults had

been fishing at a popular spot near

Craig Hill bay. Locals say the area

can be dangerous. Does it surprise

you what's happened, mate? Not

really. For people who don't know

the area. You get a freak wave,

especially with the swells down

here, you might get three or four

sets that might just come over the

rocks and the next one might come

right over, you know? One woman's

body was recovered yesterday and

police say they're looking for

another woman and three men. another woman and three men.

And three fishermen have been And three fishermen have been

winched to safety in heavy seas

after their boat sank 200km from

the WA south coast town of

Esperance. They set off an

emergency beacon sparking an 8-hour

operation, involving five aircraft

and six boats. The drama comes just

a fortnight after the same boat was

engine trouble. rescued in the same area with

The seemingly unstoppable wave of

asylum seekers heading our way is asylum seekers heading our way is

showing no signs of slowing down.

Another two boats have been

intercepted just a few hours apart,

the 53rd and 54th boats this year.

The first was seen near the ale The first was seen near the aleds

and the other close to -- Ashmore

Islands and the other close to Christmas Island itself.

Students across the country will

start sitting the controversial

NAPLAN literacy and numeracy tests

today. Pupils in years 3, 5, 7 and

9 should finish the tests on Thursday. The Australian education

union backed off a threatened

boycott of the plan last week after

reaching a deal with Education

Minister Julia Gillard.

She's offered to form a working

party of educational experts,

including unionists, to provide

results. advice on the use of the test

results.

Two men are in hospital after

separate shooting incidents in

western Sydney last night.

Witnesses say several shots were

fired into a van parked at

Guildford at around 7:30. The

driver was later treated for a

gunshot wound to the leg. In

another incident, a man was shot in

the leg in nearby Auburn. The British Prime Minister Gordon

Brown has fallen on his sword today Brown has fallen on his sword today

and announced he's stepping down.

There's still no clear result from

the UK election and the wrangling

over who will form government and

who will become PM has entered its

fifth day. I have no desire to stay

in my position longer than is

needed to ensure the path to

economic growth is assured and the

process of political reform we have process of political reform we have

agreed moves forward quickly. Mr

Brown is hoping his decision to

step down as party leader and

eventually PM will pave the way for

the parties to form a coalition

government more quickly.

At least 68 people have died in the

bloodiest day in Iraq this year.

Two car bombs exploded minutes

apart at a factory south of Baghdad.

Dozens of workers on their way home

were killed. Then, as emergency

workers treated victims at the

scene, a suicide bomber killed even

more. The surge in violence comes

forming a new government. as the country moves closer to as the country moves closer to

Sports news this morning and

Carlton has ended its 9-year losing

streak against St Kilda in style,

crushing the Saints with a shock

61-point win. The Blues burst out

of the blocks from the start and of the blocks from the start and

never looked back. St Kilda's once

watertight defence was blown apart

by Jarrod Waite and Jeff Garlett.

The pair booted four goals apiece

before Eddie Betts put the icing on the cake.

Embarrassing for the Saints. The

place. win moves Carlton into seventh

NRL and North Queensland captain

Johnathon Thurston is today

expected to announce he will re-

sign with the Cowboys for a further

three years. The move will put an

end to speculation over the future

of the staff halfback.

After threats of strikes, offers

from other clubs and lures from the

rival code, it seems the future of

Johnathon Thurston lies at the

Cowboys. Talks went on today and,

um, hopefully there'll be an

announcement tomorrow and it will announcement tomorrow and it will

be a positive one. And his North

Queensland team-mates could not be

happier. Mate, we'll be lucky

enough to have him. I hope he stays.

He's massive to rugby league. He's

massive to Queensland, NRL,

everything. The news capping off a

great couple of days for the

Cowboys after an 18-point victory

over the Roosters in Sydney last

night. Matt Bowen marked his

comeback from injury with a try and

Michael Barney rubbed a double but

it wasn't without controversy. The

Roosters thought it was forward.

The officials don't agree. You know,

I would say he got it wrong. But

despite the decisions, the dismal

showing of the Roosters gave coach

Brian Smith a reality check. I'm

under no illusions about where we

are in relation to the top teams.

You know, we're not one of them. That's for sure.

Pakistan has knocked South Africa

out of the Twenty20 World Cup and

boosted their slim hopes in the

process. It was the Akmal brothers

who set the platform. Kamran's 37 who set the platform. Kamran's 37

and a half century from Umar lifted

the total to 148. Another glorious

hit for another six. This is a

massive over for Pakistan! The

Proteas struggled in refly and fell

victim to some sharp fielding. They

fell 11 runs short and are now

packing their bags.

Kathryn Robinson has all the

morning's finance news and as Monty

Python would say, blessed are the

Greeks. Yes, indeed. For today Greeks. Yes, indeed. For today

anyway. A trillion-dollar bail-out

plan appears to have stabilised the

embattled euro. Stock markets have

responded positively to the

agreement. Investors have warned

the region's problems are not over. Foreign markets soared after

finance leaders delivered a big-

bucks bail-out. Europe was attacked and, um, Europe reacted.

Reacted with $1 trillion in loan

guarantees to countries in trouble

including Greece. Markets plunged

last week when Greece erupted in

violence over its debt crisis. It

looked like the chaos could spread

to other European countries like

Portugal, Spain and Ireland. The

euro took a hammering as investors

lost confidence in Europe. The

currency slid to 14-month lose

against the dollar. The euro has already bounced back.

It's a good currency. It's going to

be in the future. Even though the

euro isn't used here in Britain,

the bail-out made stocks surge here

too because a financially healthy

Europe is in everybody's interest.

If the euro slides, Europeans stop

purchasing goods, including

products in the United States,

while the world is trying to

recover from a recession. But

investors warn Europe's problems are far from over.

Back home now and the latest NAB

business survey indicates

Australia's economic recovery may

be starting to slow. Market

confidence remains high but there's

been a marked drop in orders and

sale, particularly in the retail

and construction industries. But

workers feel upbeat about the

economy with one in six applying

for a new job in the 6-month period

to February. Some simply want a

change but others are annoyed that

companies are not increasing

salaries despite profits being on

the rise.

Now let's take a look at the market

numbers and Wall Street has soared

on what's being called the "shock

and awe" rescue plan for Greece,

the Dow closing up 406 points and

the USSEC and others agree to

circuit breakers after last week's shock plunge.

Now to business in brief and mining

giant Xstrata says the future of

operations in Mount Isa are up in

the air due to uncertainty over the

proposed super profits tax.

Shares in Virgin Blue surged

yesterday after the airline was

named as part of the Government's

air travel budget and Royal Bank of

Scotland is laying off more than

2,500 jobs to try and rebuild

itself after the GFC and its bail- out deal.

Checking newspaper headlines around

the country, the 'Australian' says

five Sri Lankan asylum seekers who

died at sea had left their fishing

boat to try to find help. The 'Age'

reports Bali Nine drug mule Scott

Rush has been circumstance sized in

jail amid rumours he's converted to

Islam. And the 'Courier-Mail' says national numeracy and literacy

tests will go ahead today after

weeks of protests if from teachers.

Still ahead - a tasty row over a

favourite snack. And what's Wayne

got in his wallet? How today's

Budget will affect your purse. Stay with us.

This program is captioned live.

Welcome back to Ten's Early News.

It's going to have a big impact on

Kevin Rudd as well as our wallets.

Today, the Government is handing

down its third Federal Budget.

Kath's here with the latest. Kath,

what can we expect in this? It's

not a case of expect the unexpected

because so much of this has already

been leaked and it's pretty much

going to be a pedestrian, even dull,

Budget. All will be revealed this

evening but here's some of what we know already:

And miners will have to hand over

40% of super profits starting next

year. As Kath says, don't expect

too many Goodies tonight. As the

paperwork arrived at Parliament

last night, the Prime Minister was

telling Labor MPs the Budget will

stress fiscal discipline. While

Kevin Rudd concedes the Government

faces difficult times, some backbenchers openly questioned

policy backflips on climate change and asylum seekers.

Do you care? We always have full

and frank discussion at the caucus

and that's what happened today.

It's a caucus. We always have a

very meaningful caucus. Polls show

the Coalition and the Government

neck and neck after a dramatic

collapse in the Prime Minister's

personal approval ratings, although

he does remain more popular than Tony Abbott.

The search is starting again for a

group of missing anglers south of

Newcastle in NSW. Their trip ended

in tragedy. One woman died and four

others have yet to be found. Ten correspondent Melinda Nucifora is there.

Well, police are preparing for day

two of their search for the missing

group of rock fishermen. The group

of five were due to arrive home in

Sydney from Catherine Hill Bay at

around midnight on Sunday, but they

never arrived. Police have so far

found the body of a woman. Another

woman and three men are still missing.

Local fishermen have been lending a

hand to police. They've got a lot

of local knowledge and they say the

area is treacherous. Here's what

they told us.

Does it surprise you whead, mate,

given you know the area so well?

Not really. To people that don't

know the area, yeah. You get a

freak wave, especially with the

swells down here, you might get three or four sets

three or four sets that might just

come over the rocks and then the

next one might come right over, you

know? Family and friends stayed

here at the Craig Hill bay site

during the night. They told us that

the family knew the area very well.

They'd fished here for about five

years but they also said they never

come with life vests and that they

weren't strong swimmers. The car

belonging to the group has been

towed away by police and their

investigation is continuing.

Melinda Nucifora reporting from the

scene just south of Newcastle.

British Prime Minister Gordon Brown

has fallen on his sword in the hope has fallen on his sword in the hope

his resignation will keep his party

in power. The Liberal Democrats

have now agreed to start formal talks with Labour after negotiations with the Conservatives

stalled.

Backwards and forwards past the

gate to Downing Street, almost

taunting Gordon Brown, the

negotiating teams for the

Conservatives and the Liberal

Democrats traipse up and down.

Behind the gates inside Number 10,

Gordon Brown has been trying to

work out how to frustrate their

efforts and keep Labour in power. A

couple of hours ago, Gordon Brown

stepped out to announce what he stepped out to announce what he

hopes could achieve just that. No

single party and no single leader

was able to win the full support of

the country. As leader of my party

I must accept that that is a

judgment on me. I therefore intend

to ask the Labour Party to set in

train the processes needed for its

own leadership election. In private

conversations, Nick Clegg had left

Mr Brown they could not do a deal

with Labour as long as he was

leader. For many Lib Dems, their

hearts beat closer to Labour than

the Conservatives. Mr Brown will

hope that he's done enough to

destabilise talks with the Tories

at least. Some senior Lib Dems and

Tories had hoped for agreement

today. The delay and starting-up of

rival talks with Labour behind the rival talks with Labour behind the

Tories' backs, is adding to

questions about whether Nick Clegg

can bring the party with him doing

a deal with David Cameron. We've

made progress but haven't yet

reached a comprehensive partnership agreement.

The Queen was back in residence in

Buckingham Palace, ready with the

employment contract for the next

prime minister. But it will be

sitting in the drawer a bit longer.

We can all see the results of last

still very unclear. week's election but the outcome is

A over who makes the best houmous

is being stirred up in the Middle

East. Relations between Lebanese

and Israeli chefs have "dipped"

after the humungous houmous won a

record for the biggest ever service.

Israel is prettity "chick-peed off"

them. saying the recipe was stolen from

In sport, the Brisbane Lions are

battling a form slump and injury

crisis. Michael Voss's men have

lost their last three and the news gets worse.

It's the toughest tested to date

for Michael Voss the coach - three

losses in succession and a mounting

injury list. Josh Drummond is gone

for the year and needs a knee

reconstruction. I think we can

categorically say it's ACL. At

least that's the suspicion. We'll

go through the options of, um, you

know, what his rehabilitation's got

to look like. Brennan also out but

the news is better than first

thought. We suspected on Saturday

fibula. that he might have broken his

It doesn't appear that he has.

We're probably looking at more a 4-

to 6-year break for him, which is

good. Warren Tredrea is

good. Warren Tredrea is undergoing

surgery to two torn ligaments.

He'll need a sin thetdic ligament

between his tibia and fibula. It

could be a sad end to a fine career.

Chance Bateman's decision here has

proved costly. He'll have something

to answer for with the Match Review

Panel. Even with an early guilty

plea, he has a 3-match ban.

There are reports this morning that

Mark Gasnier is keen to return to

NRL after two years in French rugby.

He's rushed back to Australia to be

with his father-in-law who was

diagnosed with cancer and that's

where he wants to stay. It's

believed Gasnier is keen to return

to the Dragons. Club boss Peter

Doust is investigating ways to fit

him in under the salary cap and

back-end the deal. Gasnier has just

Stade Francais. completed a 2-year constract with

North Queensland captain Johnathon

Thurston is today expected to

announce he will re-sign with the announce he will re-sign with the

Cowboys for three years. It comes

on the back of months of on the back of months of

speculation over the future of the

halfback and has been met by relief

from cue boy team-mates. He's massive to rugby league. He's

massive to Queensland, NRL,

everything. Certainly is. It caps

off a great couple of days for

North Queensland who last night

thrashed the Roosters by 18 points in Sydney.

Socceroos coach Pim Verbeek will

name his preliminary World Cup

squad in Sydney today. Harry Kewell

is expected to be named. Australia's Graeme Brown has

finished second on stage three finished second on stage three of

the Giro d'Italia. And India

defeated the Kookaburras for the

Aussies lost 4-3. first time in seven years. The

Global stocks have rocketed off the

back of that massive deal to

stabilise the euro and stop the

Greek debt crisis spreading. For

more, let's speak with Nick Walter

at Macquarie Private Wealth. We've

seen Spanish stocks rise 14%,

Greece up 9%. No doubt that will

filter through to our market today.

Yes, Kath. What a fascinating time

to be involved in investment

markets. We saw the European Union

move in a very emphatic fashion,

very decisive leadership. The

European markets up very strongly

overnight. As you said, the French overnight. As you said, the French

market up 9%, Italians up 11%, UK

and Germany up 5.5%. It gave the US an

an opportunity to perhaps focus

more on their domestic issues and

the US market recovered some of the

losses experienced last week. The

US market up 350 points. Our market

here in Australia was up very

strongly yesterday in anticipation

of what may have happened overnight.

We were up 119 points. But we

expect this to be a potential 2- 3-

or 4-day rally. We expect our

this morning. market to open about 50 points here

And the Federal Budget is just

hours away. What does the financial

sector want from Wayne Swan today?

Well, emotions are running high in

global markets all over the world

and I think what most market

participants are looking for is a

steady hand. We need to remember

the Australian economy is moving

along as well or better than most

developed economies around the

world. We need Wayne Swan and the

Government to show a steady hand

and maintain that stability. We're

cautiously optimistic that that

will be the case but obviously

we'll know a bit more tomorrow.

Thanks very much, Nick.

Wealth. Nick Walter at Macquarie Private Nick Walter at Macquarie Private

One question we can ask today.

What's happening in Wayne's World?

we return. We'll cross live to Canberra when

Revitalift does more New Revitalift Gentle SPF15.

powerful formula One, two, three...

This program is captioned live.

The headlines on this morning's Early News:

Counting down to the Budget - can

the Government balance the books

and buy its way back into favour

with voters?

One dead and four missing in a

fatal fishing trip this morning.

Rescue teams resume their search.

In sport, Carlton snap their 12-

game losing streak against St Kilda

with a 61-point drubbing.

In finance - thanks a trillion.

Stocks rocket off the back of the

massive European rescue plan to avoid a major debt crisis.

Kevin Rudd is desperately hoping

today's Federal Budget can win back

his wavering voters. The PM is

under no illusion that will prove

crucial to Labor's re-election

prospects. For more on this, we're

joined by Ten's political

correspondent Natasha Exelby in

Canberra. Today's Budget comes on

the back of two very bad weeks of

polling for Kevin Rudd. Can today's

Budget win him back those votes?

Well, um, yeah, after yesterday's

catastrophic polls, you'd certainly

be hoping so. But from all reports,

we're hearing that this Budget

isn't really a vote-buying measure.

The Prime Minister spent last night

trying to win back the support of

his own party after his

catastrophic slump in the polls,

wining and dining the MPs at the

Lodge. The message was the Government faces difficult times

and the Budget is critical to its election prospects. And Labor

really is stuck between a rock and

a hard place on this one. In wake

of the global financial crisis,

we've seen big-spending buej yets

from this Government on pom --

budgets from this Government on top

of tense of builds of dollars in

stimulus funding. The Budget this

year will be more focused on

slimming that debt and showing that

the Government is fiscally

responsible and it goes back to

Kevin Rudd's core line about being

an economic conservative, which

you'd have to say he's certainly

strayed from in recent years. But

in an election year, some would say

that it is a dangerous gamble not

to throw in some sweeteners to

soften up the voters in time for

the election. Well, Tash, they were

promising us a boring budget, so

perhaps there aren't many leaks to

be had. But health is a

centrepiece? There's no secret that

Kevin Rudd's reform package for

health will play a pivotal role in

the budget. There's reports that

around $1.9 billion will be spent

on shaving the costs of medications.

But a lot of this is planning on

being funded by the super profits

tax, that $9 billion. And as we

know, that's received a very

hostile response from the resources

sector, the Opposition and I have

to say a large chunk of the

community. So it's not, um, - the

Budget is not all checked and

balanced just yet so the Budget

papers may be in but Wayne Swan,

Kevin Rudd, the Labor Party as a

whole, certainly has a fiscal fight

on their hands. Thanks for that.

Rescue crews are set to resume

their search for four missing

anglers south of Newcastle this hour. Yesterday, authorities learned they

were missing. Five adults from

Sydney had been fishing at a

popular spot near Craig Hill bay.

Locals say the area can be

dangerous. Does it surprise you

what's happened, mate? Not really,

to people that don't know the area,

yeah. You get a freak

yeah. You get a freak wave,

especially with the swells down

here and you might get three or

four sets that might just come over

the rocks and then the next one

might come right over, you know?

One woman's body was recovered

yesterday and police say they're

looking for another woman and three men.

And three fishermen have been

winched to safety from heavy seas

after their boat sank 200km from

the WA south coast town of

Esperance. They set off an

emergency beacon sparking an 8-hour

operation involving five aircraft

and six boats. It comes a fortnight

after the same boat was rescued in

the same area with engine trouble.

The seemingly unstoppable wave of

asylum seekers heading our way is

showing no signs of slowing down.

Another two boats have been

intercepted just a few hours apart.

The 53rd and 54th this year. The

first was seen near the Ashmore

Islands, while the other was close

to Christmas Island itself. 122

people are now being processed.

Today's Budget is expected to

divert millions of dollars towards immigration issues.

Students across the country will

start sitting the controversial

NAPLAN literacy and numeracy test

today. Pupils in years 3, 5, 7 and

9 should finish the tests on

Thursday. The Australian education

union backed off a threatened

boycott of the plan last week after

reaching a deal where Education

Minister Julia Gillard. She has

offered to form a working party of

educational experts, including

unionists to provide advice on the

use of the test results. Two men

are in hospital after separate

shooting incidents in western

Sydney last night. Witnesses say

several shots were fired into a van

parked at Guildford at 7:30. In

another incident a man was shot in

the leg at nearby Auburn.

Police believe two trucks may have

been involved in fatal motorbike

accident near Melbourne airport accident near Melbourne airport

overnight. The male driver died at

the scene. No-one else was injured.

Police are investigating if the

motorbike collided with two passing trucks.

Carlton has ended its 9-year losing

streak against St Kilda in style,

crushing the Saints with a shock

61-point win. The Blues burst out

of the blocks from the start and

never looked back. St Kilda's once-

watertight defence was blown

watertight defence was blown apart

by Jarrod Waite and Jeff Garlett.

They booted four goals apiece

before Eddie Betts put the icing on

the cake. This is embarrassing for the Saints.

The win moves Carlton into seventh place.

NRL and North Queensland captain

Johnathon Thurston is today

expected to announce he will re-

sign with the Cowboys for a further

three years. The move will put

three years. The move will put an

end to speculation over the future end to speculation over the future

of the halfback.

After threats of a strike, offers

from other clubs and lures to

another code, it seems Johnathon

Thurston's future is at the Cowboys.

Talks went on today and hopefully

there will be a positive

announcement tomorrow. His team-

mates could not be happier. Mate,

we'll be lucky enough to have him.

I hope he stays.

I hope he stays. He's massive. You

know, he's massive to rugby league. know, he's massive to rugby league.

He's massive to Queensland, NRL,

everything. It caps off a great

couple of days for the Cowboys

after an 18 points victory in

Sydney over the Roosters last night.

Matt Bowen capped his comeback with

a try. But the match wasn't without

controversy. The Roosters thought

that was forward. You know, I would

say he got it wrong. Bus despite say he got it wrong. Bus despite

the decisions, the dismal showing

of the Roosters gave coach Brian

Smith a reality check. I'm under no

illusions about where we are in

relation to the top teams. You know,

we're not one of them. That's for sure.

Pakistan has knocked South Africa

out of the Twenty20 World Cup and

boosted their slim hopes in the

process. It was the Akmal brothers

who set the platform. Kamran's 37

and a half rentry from Umar lifted

the total to 1 38.

The Proteas struggled in reply and

fell victim to some sharp fielding.

They fell 11 runs short and are now packing their bags.

For finance now with Kath and I

think investors around the world -- think investors around the world --

traders around the world are saying

thanks a trillion. Yes. It's been

called the shock and awe rescue

package and it sent global stock

markets surging overnight but

investors have warned the region's

problems are not over yet. Foreign

stock markets soared after finance

leaders delivered a big-bucks bail-

out. Europe was attacked and Europe reacted.

Reacted with $1 trillion in loan

guarantees to countries in trouble,

including Greece. Markets plunged

last week when Greece erupted in violence over its debt crisis. violence over its debt crisis.

It looked like the chaos could

spread to other European countries

like Portugal, Spain and Ireland.

The euro took

The euro took a hammering as

investors lost confidence in Europe.

The currency slid to 14-month lows

against the dollar.

The euro has already bounced back.

It's a good currency. It's going to

be in the future. Even though the

euro isn't used here in Britain,

the bail-out made stocks surge here

too because a financially healthy Europe is in everybody's interest.

If the euro slides,

If the euro slides, Europeans stop

purchasing goods including products

in the United States, while the

world is trying to recover from a recession. But investors warn

Europe's problems are far from over.

The success of that rescue package

has managed to overshadow market

jitters over political instability jitters over political instability

in the UK. Traders want a firm and

swift decision over who will swift decision over who will be the swift decision over who will be the

next PM. Fears the toing and froing

would destabilise the markets have

so far failed to materialise. We've

got away with it because there's

been more pressing business. Anyway,

I think people will want to see

this situation resolved by

Wednesday at the latest. Analysts

warn a weaker government coalition

could lead to financial instability.

Back home now and the latest Back home now and the latest NAB

business survey indicates

Australia's economic recovery may

be starting to slow. While market

confidence remains high, there's

been a marked drop in orders and

sales, particularly in the retail

and construction industries. But

workers do feel upbeat about the

economy with one in six applying

for a new job in the 6-month period

to February. While some simply want

a change, others are annoyed that

companies are not increasing salaries despite profits being on the rise.

Uncertainty over the mining super

profits tax is being blamed for the

suspension of a project in

Queensland. Extractia suspended the

search for new deposits around

Mount Isa. A $30 million program on Mount Isa. A $30 million program on

ice. We've suspended the program on the the basis of uncertainty with the

resource tax. The resource sector

took its case against the 40% tax

to the Queensland Premier. This

package can work but it needs more

thinking in some of the details.

Details she says like how to

protect the new liquefied natural

gas industry and what constitutes a super profit.

Get real. These are companies that

aren't looking for a 6% return.

They're looking for a return They're looking for a return of 12%

to 15% so their boards will go

ahead with these investments. But

it's the return on mum and dad's

super that concerns many

Australians. It took about $57 off

their super. This had a negligible

effect on people's retirement

savings. Mining shares have bounced back.

A look at the markets now.

The British PM has opted to take

the money and run. And what does

the financial industry want from today's Budget? We'll find out after the break. GOOD MORNING, I'M FIONA AFTER THE EARLY RELEASE OF THE MINING TAX, AND HEALTH GILLARD FIGHTS OFF IT'S BEEN IN FOUR YEARS. NABBED DOING A HUNDRED 58 WITH CURRENT ENTERPRISE SERVANTS HAVE BEEN CALLED HUNDRED AND 30. NOW HAVING A LOOK AT AND WINDY FOR MELBOURNE ACROSS SOUTHERN NEW SOUTH

POSSIBLE SHOWER FOR THREDBO MIN 0 MAX 14

This program is captioned live.

Welcome back to Ten's Early News.

Well, it's going to have a big

impact on Kevin Rudd and on our

wallets today. Today, the

Government is handing down its

third Federal Budget. Kath, exactly

what can we expect today? With so

much of it leaked already, it's

expected to be pedestrian, even

dull, but all will be revealed this

evening. Here's what we know so far.

$7.4 billion is going into the

health service to train doctors and reduce waiting times.

Superannuation will be lifted to

12% by 2019. The final round of

promised tax cuts will deliver $450

a year to someone earning $60,000

per annum. A tax hike on cigarettes

will burn a pretty big hole in

smokers' profits. The company tax

rate will be cut to 28% from July

next year and miners will have to

hand over 40% of super profits starting next year.

As Kath says, it will be a

pedestrian budget so don't expect

too many Goodies tonight. As too many Goodies tonight. As the

paperwork arrive at Parliament last

night, the Prime Minister was

telling Labor MPs the Budget will

stress fiscal discipline. Some backbenchers openly questioned policy backflips on climate change and asylum seekers. Do you care? We always have full

and frank discussion in the caucus

and that's what happened today.

It's a caucus. We always have a

meaningful caucus. Polls show the Government and Coalition Government and Coalition are neck

and neck after a dramatic collapse

in the Prime Minister's personal

approval ratings. Although he does

remain more popular than Tony Abbott.

The search is starting again for a

group of missing anglers south of

Newcastle in NSW. Their trip ended

in tragedy. One woman died and four

others are yet to be found. We're

joined by Melinda Nucifora in Craig

Hill bay.

Melinda, what's the

Melinda, what's the latest you have

on this this morning? Well, police

are preparing for day two of their search

search for a group of five people

missing here at Craig Hill bay. The

two couples, aged in their 50s and

60s and a 25-year-old man failed to

return home to Sydney at midnight

on Sunday. The alarm was raised on

Monday morning and by Monday

afternoon, police had found the

body of a woman. The other woman

and the three men are still missing. and the three men are still missing.

Police will begin scouring the area

within the next hour by lapped, sea

and air. Locals are also assisting

in the search. Here's a bit of what

they told us last night about this

particular fishing spot.

REPORTER: Does it surprise you

what's happened, mate, because you

know the area so well? Not really.

For people who don't know the area.

You get a freak wave, especially

with the swells down here, you

might get three or four sets that

might just come over the rocks and

then the next one might come right

over, you know? Melinda, a very

difficult situation there and a lot

of time has now passed. Is there

any chance of finding these people

alive? Police are not ruling that

out at this stage. They still hold

out hope for the group. The family,

who arrived here last night, said

they knew the area well, they've

fished here for five years and they

always checked the tides and

weather before arriving. But they

also told us that the group never

took life vests with them and that

they weren't strong swimmers.

Melinda, thank you very much for

that report. Melinda Nucifora

reporting for us at Craig Hill bay. The British Prime Minister Gordon

Brown has fallen on his sword today

and announced he's stepping down.

There's still no result from the UK

election and the wrangling over who

will form government and who will

be PM, has entered its fifth day. I

have no desire to stay in my

position longer than is needed to

ensure the path to economic growth

is assured and the process of

political reform we have agreed

moves forward quickly. Mr Brown

hoping his decision to step down as

party leader and eventually PM will

pave the way for the parties to

quickly. form a coalition government more

At least 70 people are dead after

torrential June pours that lasted

for days in China. The flooding has

affected 275 million people and

destroyed almost 10,000 homes.

Rescue crews are working to repair

roads and power supplies as well as

dig out basic supplies which are

buried under the mud. Just a month

ago, farmers in this area were

suffering from the worst drought in

a century. Now their lands are

swamped with water.

Nearby, another disaster has forced

villagers from their homes. 28 sink

homes have appears in and around

could one community. Geologists say they

could be caused by underlying

limestone. Some locals blame a

nearby coal mine.

For some Wallabies in Britain - and

there really are some - it looks

like the grass really is greener on

the other side of the world.

They've been used by some Brits to

now their lawns and with all the

rain in the UK, they're munching on

really green grass. Some lawn

mowers can't trim so nicely. They

can trim already. Wallaby owners

say there's no shortage of people

looking to rent the hungry marsupials.

The Brisbane Lions are battling

Bolt a form slump and an injury

crisis. Undefeated after four

rounds, Michael Voss's men have

lost their last three and the news gets worse.

It's the toughest test to date for

Michael Voss the coach. Three

losses in succession and a mounting

injury list. Josh Drummond's fate

was sealed most match, gone for the

year and needing a knee reconstruction. We can

categorically say it's ACL. At

least that's the suspicion. We'll

go through the options of what his

rehabilitation's got to look like.

Brennan is also out but the news is

better than first thought. We

suspected on Saturday that he might

have broken his fibula. It doesn't

appear that he has. We're probably

looking at more a 4- to 6-week

break for him. Port Adelaide

veteran Warren Tredrea is

undergoing surgery to two torn

ligaments. He will need a synthetic

ligament between his tibia and

fibula. It could be 12 weeks out

and could be a sad end to a fine

career. Chance bateman's decision

to iron occupy Brad Shepherd has

proved costly. He'll have something

to answer for when the Match Review

Panel looks at that. Even with an

early guilty plea, he has a 3-match ban.

There are reports this morning

former Dragon Mark Gasnier is keen

to return to the NRL this season

after two years in French rugby.

The former Test centre has rushed

back to Australia to be with his

father-in-law, who has been

diagnosed with cancer. That's where

he wants to say. It's believed

Gasnier is keen to return to the

Dragons. Peter Doust is

investigating ways to fit him in

under the salary cap and back-end

the deal. He's just completed a 2-

year contract with Stade Francais.

Johnathon Thurston is today

expected to announce he will re-

sign with the North Queensland

Cowboys for three years. It comes

on the back of months of

speculation over the halfback's

future and has been met with relief

by team-mates. He's massive to

rugby league, massive to Queensland,

the NRL, everything. It caps off a

great couple of days for North

Queensland who last night thrashed

the Roosters by 18 points in Sydney.

Other sport briefly, Socceroos

coach Pim Verbeek will name his

preliminary World Cup squad in

Sydney today. Harry Kewell is

expected to be named despite

reinjuring his troublesome groin.

Australia's Graeme Brown has

finished second on stage three of

the Giro d'Italia and India

defeated the kookaburras for the

first time in seven years. The

Aussies lost four goals to three.

European stocks have surged off the

back of that massive $1 trillion

deal to stabilise the euro on - to

stop the Greek debt crisis for

spreading. Nick Walter, that will

no doubt filter through to our

markets today. Kath, over the last

couple of weeks, European markets

have lacked decisive decision-

making but that's what we got over

the weekend and European markets

overnight reacted to that very

strongly. The $750 billion euro

package is a package for all

Europeans to tap into and will provide

provide a high level of stability

for European markets, particular

think debt markets. You'll recall

that debt markets were the ones

that were dysfunctional during the

global financial crisis. European

markets strong to reacted. UK and

German markets up 5%. Italian and

French markets up 10%. The Dow

Jones up 400 overnight so the

Australian market will have a

strong day today. We were up

strongly in anticipating of last

night yesterday. We still expect

our market to be up about 55 points

this morning. Looking to tonight,

the Federal Budget will be released.

What is the financial sector

looking and hoping for? Well,

there's quite high emotions

globally at the moment and I think

most market participants are really looking

looking for the Government to show

a steady hand, remembering that the

Australian economy is performing as

well or better than many developed

economies around the world and we

hope the Australian Government hope the Australian Government

shows a level of cautious control

and we are cautiously optimistic

that that willble the case but we'll know more tomorrow.

we'll know more tomorrow. Thank you, Nick.

So Ron, we'll have all the analysis

and details in the Budget tomorrow morning.

That's it for Ten's Early News. Our

next news is at 9am and the first

15 minutes of this bull tip are now

up on the Ten News website. I'm Ron

Wilson. See you tomorrow morning.

I'm Kathryn Robinson. See you then, bye bye.

Supertext captions by Red Bee Media Australia.