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Ten Early News -

View in ParlView

(generated from captions) This program is captioned live.

Good morning, everyone. I'm Ron

Wilson. I'm Frank Coletta. Welcome

to Ten's Early News. to Ten's Early News.

Today - the Federal Government

gives Telstra an offer it can't

for you. refuse. Break in two or we'll do it

Tributes pour in following the

long-anticipated death from cancer Swayze. of Hollywood heartthrob Patrick

And in sport - the Aussies set a

healthy target in their 51-day

international against England. What

a shot that is. That is a

magnificent stroke.

First up this morning - the big

news about Telstra. Frank is going

to explain it to us. What are they

actually doing? Effectively what

has happened here is that the

Government has said to Telstra,

"You break up your organisation -

which includes divesting in the

cable network and a 50% stake in

Foxtel - or we'll do it for you."

It's a bold plan. But if it comes

off, Canberra insists customers

will be much better off. I suppose

at the end of the day, Telstra has

to come back and say they'll do it

voluntarily. It has to be asked -

does it have anything to do with, I

guess we can call it the arrogant

way Telstra has done business in

recent years? There was a sense in

the market that Telstra had a bit

of a free run with the previous

regime and under the previous

minister but Stephen Conroy has

flagged his intentions. But we can

also suggest it was part of the

election promise, wasn't it, to

make it a level playing field ahead

of the $43 billion national

broadband network, so that's

interesting in itself. There's a

bit of that. We're going to take

control again but they promised

this shake-up as well. As soon as

the news came through, the share

price plummeted. Clearly investors

aren't convinced about this. It

doesn't appear so, does it, Ron? I

can tell you that certainly the

federal Communications Minister, as

we said, Stephen Conroy, is rather

unapologetic. We don't make public

policy in the national interest

based on a one-day movement in the

share price of Telstra. If you were

to make that judgment, you'd have

to say that the previous

government's entire political

future should have collapsed,

because the Telstra share price

dropped from $5.20 to $3.20 under

the Sol Frujillo regime. The

Government believes this will

improve consumer prices. The new

management at Telstra are taking a

very constructive approach and I

believe we can get a win-win for

Telstra share-holders and the

country as a whole. The share price

dropped 4.3%, or $1.7 billion as

public. soon as the announcement was made

This is the biggest reform of the

industry since the 1990s

privatisation moves. For more on

the share result I'm joined by

Juliana Roadley at CommSec. Telstra

took a hammering. Can the share

price recover? Look, I think it can.

It was at a 3.5-month low yesterday.

This separation will come at a

large cost to Telstra. It's

estimated to cost up to $1.2

billion, so even more than the

share price reduction yesterday. To

separate the two businesses, long-

term analysts say separation will

lead to new growth and higher

prices but unfortunately for share-

holders it's about how long you can

wait to see a return in your shares.

For customers, with Telstra now

more vulnerable to competition, is

now a good opportunity for

investors to look at other industry

players, perhaps? It's good to look

around but don't jump in straight

away. Do a bit of research. Don't

just think because Telstra won't

have the monopoly you have to go

elsewhere. Telstra still has all

the quality lines, the processes.

Their revenues will be very strong

but it might take longer to recover

a bit more strength. More finance

in a moment, Ron.

Thank you. There are claims this

morning notorious paedophile Dennis

Ferguson has been selling

children's toys for a charity on

the streets of Sydney. The 61-year-

old has been living in Sydney's

north-west for the past two weeks

with locals reportedly angry at his

presence so close to so many

children. News Limited papers say

Ferguson gave another name to

Diabetes Australia to sell toys and

pens in inner Sydney in July.

Debate over the role of women in

Parliament has sparked a furious

row during Question Time. One

member ejected himself as

proceedings hit a new low.

Tested to his limits. Order! Order!

Will the Deputy Prime Minister

resume her seat. Question Time

descended into chaos as the

Opposition vented frustration over

the Government's tactics, inflamed

by accusations of sexism, both in

the chamber and on its website. And

it's got, in the 'women in the

Liberal Party' section - one, two -

no, Julie, you're in it. It's OK.

Mr Speaker, I move that the member

be no longer heard. It was a

pointless move without the numbers

and allowed the minister for the

status of women to roar. We saw

today in the 'Sydney Morning

Herald' that they don't let women

ask questions. It seems now we're

not allowed to answer them either.

Order. That set tempers on edge and

the tone for the afternoon. Tony

Abbott's return after serving a 24-

hour suspension for his disruption

yesterday, was heralded by his side. (CHEERING)

As a Government backbencher chose

to take a break from the hellee

over school stimulus. Mr Speaker,

it wasn't me but unlike those

will go. opposite I'm a team player so I

The member is suspended from the

House under 94A. The Opposition is

on a crusade against long answers

which they say aren't relevant to

their questions. It's not a new

complaint. When she was in

Opposition, Julia Gillard made a

submission suggesting time limits

and new rules. Now, there's no

sympathy. We used to see lengthy

parliamentary answers. We didn't

see cooperation on reform proposals.

Has the Deputy Prime Minister

concluded? Prime Minister? I ask

that further questions be placed on

notice. Until 2pm tomorrow.

Tributes are flooding in from

around the world for actor Patrick

Swayze, who's died after his long

battle with pancreatic cancer. The

star of 'Dirty Dancing' and 'Ghost'

was diagnosed in January last year

but continued working while he

received treatment. Those who knew

him say that was indicative of his

determination to fight any obstacle

that stood in his way. Patrick

lived a thousand lifetimes in one

life and I'll remember him most for

his enthusiasm, his bravery and for

how much he loved his wife, Lisa.

He was an amazing man with an

amazing spirit and, um, I liked - I

loved the way that he continued on

and he just, you know, he went out

like a champ. Patrick Swayze was

aged 57.

And celebrity chef Keith Floyd has

also died overnight. Floyd was one

of TV's most famous chefs in the

1980s and was usually found on

camera with a glass of wine.

Keith Floyd was 68.

Sport this morning and AFL - the

Western Bulldogs are looking to

turn around a poor preliminary

final record against St Kilda on

Friday night. They've lost all five

of the previous matches since their

last Grand Final appearance in 1961.

It's a club that knows all about

heartbreak. Five losses from its

last five preliminary finals but

coach Rodney Eade believes memories

of those failures are just that.

For teams to have a crack at a

Premiership they need to knock on

the door consistently and we're

starting to do that. The Dogs are

unlikely to make any changes at

selection. Ryan Griffin has shaken

off a corked calf. Tom Williams the

only likely inclusion. I've got no

doubt we're underdogs but it should

be 50/50. Both teams have an equal

amount to lose. Port Adelaide are

also in for a fight with the club

in a bat toll keep Sean Burgoyne.

He's requesting a trade to a Victorian club.

We consider it far from decided and

clearly, you know, he's expressed a

view that he'd like to move. We'll

have to go through trade week and

see what unfolds before we know the

final outcome. And changes on the

assistant coaching front with

former Tiger caretaker coach Jade

Rawlings taking up an offer to join

Michael Voss's coaching department in Brisbane.

A huge boost for the Bulldogs with Kevin Moore indicating Brett

Kimmorley will be ready for the

Grand Final qualifier. He ran with

team-mates for the first time

yesterday. The Bulldogs say the

weekend off won't halt their

momentum. No. I'm sure the coaching

staff won't let us get underdone.

We had solid sessions this week and

we've got a session on Sunday

against our NSW Cup team. The Dogs

will play either Parramatta or the Gold Coast Titans.

Australia is chasing 300 for

victory in its 51-day international

against England at Trent Bridge.

Eoin Morgan was the best for the

home side smashing 58 off 41 balls.

In reply, Tim Paine went quickly

caught on 16.

Shane Watson followed in similar

fashion. A short time ago, skipper

Ricky Ponting and Michael Clarke

were at the crease with the Aussies

2/190. Australia leads the 7-match series 4-0.

Woolies is about to go head to head

with Bunnings for our hardware

dollar. Woolworths will base its

new hardware chain in Victoria and

says it will create 15,000 jobs in

retail and construction. CEO

Michael Luscombe says work will

start on the first store at

Coolaroo soon. 30 more stores are

planned for Victoria for the next

five years. We will be different.

You can count on that. We're going

to keep the finer details well and

truly secret till we open the doors.

Mr Luscombe says the company will

use American links to drive prices

down further. Woolies chose

Victoria as a starting point

because that is where Bunnings is

strongest. Japan airlines has

announced plans to lay off nearly

7,000 workers. They lost more than

$1 billion in the second quarter

and needs to find another $1

billion in funding by the end of

the year. JAL management is like

the year. JAL management is like

looking to make an alliance with

either Delta or American Airlines

to prop up its sagging balance sheet.

Checking today's newspaper

headlines - the 'Sydney Morning

Herald' looks at growing links

between the fallout from the murder

of a Sydney businessman and the NSW Government.

The 'Financial Review' says a row

between Treasury and the superannuation industry is

threatening to undermine the Henry

review of the taxation system. The

'Age' reports Victoria's Brimbank

has been sacked. And 'Business Day'

says ASIC is canvasing the idea of

a super securities regulator with

increased consumer protection

powers. Still ahead - more on the

Government's decision to break up

Telstra and Dan Brown's new book. Some (CAR WON'T START) MAN: Hi, you've reached Chris. Please leave a message. (GROANS) (HORN HONKS) (TRAFFIC NOISE) A breakdown can leave you feeling uneasy and alone, no matter where you are. But with NRMA Roadside Assistance, you're never on your own. Join us now.

This program is captioned live.

Headlines every 15 minutes on Ten's

Early News - breaking up is hard to

do. The Government wants Telstra

split in two. The decision wiping

almost $2 billion off shareholdings.

Claims this morning notorious

paedophile Dennis Ferguson used a

different name to do work for a NSW charity.

And the celebrity shoe-thrower

finally out of jail, but says he

was tortured by his Iraqi guards.

The Federal Government is promising

cheaper phone calls and broadband

access under its plan to split

Telstra in two. Australia's biggest

telecommunications company has been

left with little choice but to

accept the Government's deal or be

left out of future technology.

Telstra's day of reckoning arrived

with the Communications Minister

providing an ultimatum. We're

providing a range of choices to

Telstra. The telco will be forced

to separate its network, or

wholesale business, from its retail

arm - the idea - to break its

stranglehold on the industry. It

undoes the mistakes of previous

governments over the past two

decades. If Telstra refuses, the

dominant telco will be shut out of

future-generation technology. This

is a very good day for us. This is

a very good day for consumers and

for competitors. Not such a good

day for Telstra share-holders. Mum-

and-dad share-holders of Telstra

have lost $2 billion in the value

of their company as a result of

this radical and risky proposal.

Telstra says it's disappointed but

it's prepared to talk and supports

the Government's decision for a

national high-speed broadband, a

vision not shared by the Opposition.

What will it cost? How many

subscribers will it have? And what

will they be asked to pay? It is

the right infrastructure for the

future. We will proceed methodically, carefully...

Notorious paedophile Dennis

Ferguson remains holed up in a

Sydney public housing flat as the

NSW Governmented a its it's

powerless to make him move. The

State Government says the 61-year-

old hasn't done anything wrong and

has so far been living within the

law. There are claims this morning

Ferguson used a different name to

sell toys and pence on Sydney

streets on behalf of Diabetes Australia.

Queensland police are hunting a man

who's attacked a woman in her home

in broad daylight. The victim told

police the man repeatedly tried to strangle her.

It was a noise at the back door

that alerted the 25-year-old victim

and, in a moment, she was fighting

for her life. The unknown man tried

to strangle her as she confronted

him. He did rip her top from her

and found a phone charger cord and

put it around her throat and

attempted to strangle her. The

woman told police she felt as

though she was going to pass out

but managed to kick her attacker,

forcing him to let go. She fled to

a neighbouring house. Police hope

someone saw the man running from the area.

Anybody who was in this area and

did see a male person with that

description wearing that vest, we'd

definitely like to hear from them.

This neighbour can't believe such

an attack could happen in his

street. We've moved up from

Victoria, nearly two years ago. And

we wouldn't have dreamt of this

happening here, no way. Forensic

police have examined the home for

fingerprints. Police are hopeful

the attacker may have left behind

DNA clues. The woman was treated in

hospital for bruising and shock.

Thousands of Dan Brown fans across

the nation have snapped up his

latest novel and some didn't take

too long to get through it either.

The 'Lost Symbol' followed 'Da

Vinci Code' character Robert

Langdon into the secret world of

Freemasons. A national speed

reading competition was held in

Sydney to coincide with the launch.

After 2.5 hours, Karly Palmer had

this review. Definitely recommend

it. Great read. Brown's 'The Da

Vinci Code' sold more than 81 million copies worldwide.

Green machines have taken on a

starring role at one of Europe's

largest car shows, the Frankfurt

Auto Show. While there are still

luxury vehicles most of us can only

dream of owning, this year,

manufacturers are out to prove

their green credentials. Companies

have Volkswagen to Toyota have

unveiled a range of electric cars

and hybrid engines. Even Renault

and BMW have turned environmentally

friendly. It seems this is the way

of the future. Analysts the

production of purely electric cars

will expand rapidly in the next few years.

The Iraqi journalist who threw his

shoes at President Bush has been

released. He was hailed a hero by

many Iraqis after his act of

protest, which is considered a huge

insult in the Arab world, but it

deeply embarrassed his government

and he says he was tortured by

Iraqi security forces after his

arrest. His early release has been widely celebrated around the

country and his family expects he

will use his new-found fame to

promote humanitarian causes.

South Sydney co-owner Russell Crowe

has apologised to Bunnies sponsors,

members and fans as well as other

NRL clubs in the wake of coach

Jason Taylor's Mad Monday scandal.

A decision on Taylor's future is

expected within days.

Meanwhile, Brisbane Broncos coach

Ivan Henjak says his side has

nothing to lose in Saturday night's

NRL sudden-death semifinal against St George Illawarra.

His club has never before won a

home semifinal but Ivan Henjak says

the Dragons have more to lose on

Saturday night. They're the minor

Premiers. I don't think there's

been a been a minor premier out the

back door so far under this system

is there's a bit of pressure. The

kick-off still three days away, the psychological game already well

under way. Six weeks ago, no-one

expected us to be here. Everything

for us is just a bonus at the

moment. There's a lot of

expectation on them because they've

been waiting such a long time. John

Cartwright has no regrets over his

half-time outburst at the referees

last weekend, even though it cost

him a $10,000 fine.

I'm sorry I did it and it won't

happen again but I stand by the

reason I... Nothing changes from my

angle as to how that game was refereeed. The Titans play

Parramatta on Friday night.

Mark Thompson and Mick Malthouse

continue to trade blows ahead of

the AFL preliminary finals. The

Geelong coach says his counter-part

at Collingwood is fooling himself

if he thinks the Cats are

harbouring the most pressure of the

four remaining clubs. He's just a

knowledgable man, and he knows the

caper. He's playing the game. If he

thinks we're under more pressure

than the other three sides, he's

fooling himself. We're not. We're

all under the same pressure.

Sledging is coming thick and fast

now. The Cats will be bolstered by

the inclusion of Steve Johnson.

He's conquered the track in every

sense of the word but Usain Bolt is

eyeing off a new discipline. The

23-year-old has arrived home in

Jamaica after winning the 100m and

200 m double in the World

Championships. Now he has a new

goal. I want to try a long jump

before I retire. I don't say I will

do it any time soon but I'd like to

try it before I retire because I

think I would be a very good long

jumper. I'd like to try it before I

retire. Maybe five years from now,

maybe. You never know. They might

have to make the pit a bit longer!

Bolt will take six weeks off before

resuming training.

Wall Street. Stocks had a bit of a struggle on

There are retail sales reports but

also fears the economic recovery

has outpassed the market.

Fresh 2009 highs on Wall Street but

the market's nervous. Why? Look, I

think they're worried about one of

these boom-and-bust scenarios

occurring in the market and hitting

what they call a W-shaped recovery

where it will go up and down and up

and down. Overnight, some positive

news. Retail sales that you

mentioned, producer prices in

positive territory and the Federal

Reserve chairman, Ben Bernanke,

coming out and saying he feels it's

very likely the recession is over.

The market loved this news, Frank.

Investors selling out of safe

havens, buying into material stocks

and retail stocks, the Dow up 56

points and the NASDAQ up by 10 at

the close. Any good news for us?

How are we shaping up? Everything

will work in our favour today, I

think. Overseas markets were higher.

The momentum in the commodities

market is to go up. The SPI has our

market set to open 33 points higher

at the open. The oil price is just

below US$71 a barrel and the gold

Price has added $5 back up at $1006

US an ounce.

And now for business in brief.

The CEO of the national broadband

network says construction will take

eight years and the start is still

a long way off.

The Reserve Bank minutes reveal it

is not so sure about the economic

recovery despite the recent positive data.

Liquidators have drastically

written down the value of Rubicon

Capital from $200 million to $2,000.

And Australian insurers are likely

to lift premiums as low interest

rates cut returns from investments

and claims costs increase.

American special forces have staged

what they call a surgically precise

raid in Somalia and assassinated an feeling uneasy and alone, A breakdown can leave you no matter where you are. But as an NRMA member, you're protected by the reliable service that has earned for Excellence. an Australian Business Award Join us now.

This program is captioned live.

Headlines every quarter hour here

on Ten's Early News: The The Federal Government brings down

the hammer on Telstra. Break up or

be broken up. Is it good news for

consumers? Tributes pour in

following the long-anticipated

heartthrob Patrick Swayze. death from cancer of Hollywood

In sport - the Aussies set a

healthy target in their fifth one-

day international against England.

What a shot that is. That is a magnificent stroke.

Heading our news this morning, the

split in Telstra. The Government is

saying, "We're giving you a range

of options," but when you devil

deeper, it's their way or the

highway. The Government has given

Telstra an ultimatum - break up or

we'll do it for you. It will be the

biggest shake-up since the

privatisation of the telco industry

back in the 1990s. It means they

have to divest several things,

including the cable network and

even 50% of its stake in Foxtel. In

those years under Sol Trujillo, the

business seemed to run in an

arrogant way. Is this a way of

reining it back in? It's getting reining it back in? It's getting

Communications Minister. Stephen greater power for the greater power for the

Conroy has flagged that. We have to

remember as part of the election

pledge, they were going to overhaul

the industry, rein in Telstra and

look ahead to the national

broadband network which, of course,

will cost $43 billion to build.

Investors were whacked around the

announcement. They were hit with a

big bat. Stephen Conroy is

unapologetic about what he's done.

We don't make public policy in the

national interest based on a one-

day movement in the share price of

Telstra. If you were to make that

judgment, you'd have to say that

the previous government's entire

political future should have

collapsed because the Telstra share

price dropped from $5.20 to $3.20

under the Sol Trujillo regime.

The Government believes the split

will improve market competition and

also consumer prices. But the new

management at Telstra are taking a

very constructive approach and I

believe we can get a win-win for

Telstra share-holders and the

country as a whole.

On that - Telstra's share price

dropped 4.3% as soon as it was made

public and you can expect more

volatility today. With more on this

story, I'm joined by Christopher

Zinn from 'Choice'. How will

consumers benefit from this break-

up? There will be definite benefits,

both in the types of products, the

telecommunication products there

are, and in service - better speeds,

new innovation. Telstra have

dominated this market because

they've controlled the network as

well as the retail arm. It's kept well as the retail arm. It's kept

new competition at bay. If we look

at what happened in Britain when a

similar thing happened to the

dominant telco there, there were

new entrants that came in with new

types of offerings and that's

definitely in consumers favour. How

do you expect Telstra to work to

retain customers who would retain customers who would

obviously be excited by the

prospect of increased competition

now. That's the point. They'll now. That's the point. They'll

remain dominant and very large but

they'll have to pull up their socks

in terms of service. We're seeing

slight movement towards that.

They'll have to prove to customers They'll have to prove to customers

that they can do that. And also in

terms of issues like price terms of issues like price and

speed when it comes to broadband

and it's innovate being these new

products and being on the cutting -

- innovating with these new

products and being on the cutting

edge. More finance in a moment.

There are claims this morning

notorious paedophile Dennis

Ferguson has been selling

children's toys for a charity on

the streets of Sydney. The 61-year-

old has been living in Sydney's old has been living in Sydney's

north-west for two weeks with

locals reportedly angry at his

presence so close to so many

children. News Limited painers say

Ferguson gave another name to

Diabetes Australia to sell toys and

pens in inner Sydney during July.

Debate over the role of women has

sparked angry scenes in Parliament.

Tested to his limit. Order! Order!

Will the Deputy Prime Minister

resume her seat. Question Time

descended into chaos in part as the

Opposition vented frustration over

the Government's tactics, inflamed the Government's tactics, inflamed

by accusations of sexism, both in

the chamber and on its website. And

it's got in the 'women in the

Liberal Party' section - one, two,

three - actually, no, Julie you're

in it. It's OK. Order. Order. Mr

Speaker, I move that member be no

longer heard. It was a pointless

move without the numbers and

allowed the minister for the

staysious of women to roar. We saw

today in the 'Sydney Morning

Herald' that they don't let women

ask questions. It seems now we're

not allowed to answer them either.

That set tempers on edge. Tony

Abbott's return after serving a 24-

hour suspension for his disruption

yesterday was heralded by his side. (CHEERING)

Tributes are flooding in from

around the world for actor Patrick

Swayze, who's died after his long

battle with pancreatic cancer. The

star of 'Dirty Dancing' and 'Ghost'

was diagnosed in January last year

but continued to work while he

received treatment. Those who knew

him say that was indicative of his

determination to fight any obstacle

that stood in his way. Patrick

lived a thousand lifetimes in one

life and I'll remember him most for

his enthusiasm, his bravery and for

how much he loved his wife, Lisa.

He was an amazing man with an

amazing spirit and, um, I liked - I

loved the way that he continued on

and he just, you know, he went out

like a champ. Patrick Swayze was aged 57.

And celebrity chef Keith Floyd has

also died overnight. Floyd was one

of TV's most famous chefs in the

1980s and was usually found on

camera with a glass of wine. Keith Floyd was 68.

American special forces have struck

deep inside southern Somalia to

assassinate one of Africa's most

wanted al-Qaeda suspects. The man

was killed when six US helicopters

attacked his car in an insurgent-

held town south of Mogadishu. He's

a Kenyan, wanted for questioning in

connection with a car bombing of a

resort in Kenya and an attempt to

shoot down an Israeli airliner in 2002.

AFL and the Western Bulldogs are

looking to turn around a poor preliminary final record against St

Kilda on Friday night. They've lost

all five of them since their last

Grand Final appearance in 1961.

It's a club that knows all about

heartbreak. Five losses from its

last five preliminary finals, but

coach Rodney Eade believes memories

of those failures are just that.

For teams to have a crack at a For teams to have a crack at a

Premiership, they need to be

knocking on the door consistently

and certainly we're starting to do

that. The Dogs are unlikely to make

any selection changes. Ryan Griffin

has shaken off a corked calf, Tom

Williams the only likely inclusion.

I think it should be 50/50. Both

teams have an equal amount to lose.

Port Adelaide are also in for a

fight with the club in a battle to fight with the club in a battle to

keep Shaun Burgoyne. He's

requesting a trade to a Victorian

club with Hawthorn believed to be

his preference. We consider it far

from decided and clearly, you know,

he's expressed a view that he would

like to move but we'll go through

trade week and see what unfolds trade week and see what unfolds

before we know the final outcome.

Changes on the assistant coaching

front with former Tiger caretaker front with former Tiger caretaker

coach jade raulgs Rawlings -- Jade

Rawlings taking up an offer to join

Michael Voss's team in Brisbane.

Kevin Moore has indicated Brett

Kimmorley will be ready for the

Grand Final qualifier. The Bulldogs

say the weekend off will not halt

their momentum. No. I'm sure the

coaching staff won't let us get

underdone. We had some solid

sessions this week and we've got an

opposed session on Sunday against

our NSW Cup team. The Dogs will

play either Parramatta or the Gold

Coast Titans.

Australia's chasing 300 for victory

in its fifth one-day international.

Eoin Morgan was the best for the home side.

Absolutely nailed it, middle of the

bat. Beautiful shot. In reply, Tim

Paine went quickly, caught on 16.

Shane Watson made 36. A short time

ago, Ricky Ponting and Callum

Ferguson were at the crease with

the Aussies 4/230. Australia leads

the 7-match series 4-0.

It's Mecca to us blokes on the

weekend. The hardware shop. We'll

spend more time down there it looks

like. The question is where do we

go? Woolies is about to go head to

head with Bunnings for our hardware

dollar. They say they'll create

15,000 jobs in retail and

construction. CEO Michael Luscombe

says work will start on the first

store at Coolaroo in a few months'

time. 30 more Victorian stores are

planned in the next five years.

We'll be different. You can count

on that. We're going to keep the

finer details, of course, well and

truly secret until we open the

doors here. But Mr Luscombe says

the company will use its American

links to drive prices down further.

Woolies chose Victoria as a

starting point because that's where

Bunnings is strongest. Bunnings say

they're not worried.

Japan Airlines has announced plans

to lay off nearly 7,000 workers.

The struggling airline lost nearly

$1 billion in the second quarter

and needs to find another $1

billion in funding by the end of

the year. They're looking to make

an alliance with either Delta or

American Airlines to prop up their balance sheet.

I was wondering where you were

going with that...

After the break - authorities in

Italy discover the Mafia have been

dumping tonnes of toxic waste into GOOD MORNING, I'M FIONA NELSON... WITH YOUR LOCAL NEWS ... FIRST UP, OBSTERTRICIANS IN CANBERRA, HAVE RAISED THEIR RATES, SINCE THE MEDICARE SAFETY NET WAS INTRODUCED, ACCORDING TO THE FEDERAL GOVERNMENT. HEALTH MINISTER, NICOLA ROXON SAYS, SOME DOCTORS IN THE A-C-T ARE CHARGING 80 PER CENT MORE, THAN THE NATIONAL AVERAGE. IT COMES, AS THE COMMONWEALTH FIGHTS FOR CHANGES FOR THE SAFETY NET, WHICH WOULD INCLUDE CAPPING BENEFITS, WHICH ARE PAID OUT TO PATIENTS FOR CERTAIN

PROCEDURES. THE GOULBURN MAN, ACCUSED OF DEFRAUDING HIS INSURANCE COMPANY, SO THAT HE COULD DONATE MONEY TO THE CRONULAL SHARKS, IS DUE TO FACE COURT TODAY. 27 YEAR OLD CLINT LEIGH ELFORD, ALLEGEDLY DEFRAUDED THE COMPANY OUT OF MORE THAN HALF A MILLION DOLLARS. HIS PARENTS ARE ALSO DUE IN COURT TODAY. MEANWHILE, A 41 YEAR OLD MAN FROM KALEEN, IS SET TO

FRONT THE MAGISTRATES COURT TODAY, AFTER POLICE ALLEGEDLY, FOUND A HANDGUN, A SILENCER, AND DRUGS, DURING A SEARCH OF HIS HOME LAST WEEK. IT'S ALLEGED, OFFICERS FOUND THE GUN AND AMMUNITION, AS WELL AS A CROSS-BOW, AND 24 GRAMS OF A DRUG, WHICH IS THOUGHT TO BE M-DM-A OR ECSTACY. TO SPORT, AND THE RAIDERS, HAVE NAMED THE UNDER 20 SQUAD, WHICH WILL TAKE TO THE FIELD AGAINST THE WESTS TIGERS THIS WEEKEND... AND DANIEL VIDOT IS BACK. THE GREEN MACHINE, WILL WELCOME BACK THE STAR PLAYER, WHO'S SPENT TWO WEEKS ON THE SIDELINES, FOR ATTEMPTING TO USE HIS KNEE, AGAINST NEWCASTLE, IN ROUND 25. NOW HAVING A LOOK AT TODAY'S WEATHER... FINE CONDITIONS AS A RIDGE OVER SOUTHERN NEW SOUTH WALES GRADUALLY CONTRACTS EAST, AHEAD OF THE NEXT FRONT TO CROSS THE REGION TOMORROW. ACROSS THE NATION - MORNING FROST THEN FINE FOR CANBERRA - THE CHANCE OF A MORNING SHOWER FOR SYDNEY -

CLOUD INCREASING FOR MELBOURNE CHECKING WHAT TO EXPECT ACROSS SOUTHERN NEW SOUTH WALES - SUNNY SKIES FOR DUBBO, WITH A TOP OF 28 - A CLEARING SHOWER AND 21 FOR THE GONG SUNNY AFTER MORNING FOG FOR BATHURST 23 - INCREASING INCREASING SUNSHINE AND 22 FOR BATEMANS BAY 26 DEGREES THE EXPECTED TOP FOR MUDGEE - CLOUDY WITH A TOP OF 25 FOR NOWRA - NINE FOR THREDBO LOOKING AHEAD - TOMORROW - AFTERNOON SHOWERS

TOMORROW - AFTERNOON SHOWERS DEVELOPING - WITH A TOP OF 22 (8 22)

FRIDAY - BECOMING FINE - AND 20 (7 20) SATURDAY - FINE AND SUNNY - WITH 21 DEGREES (5 21)

These are the headlines on Ten's

Early News.

Breaking up is hard to do - the

Government has split Telstra in two.

The decision wipes almost $2

billion off shareholdings.

Claims this morning that Dennis

Ferguson used a different name to

do charity work in Sydney.

And an Italian Mafia informer

admits they've been dumping

hundreds of tonnes of toxic waste, including radioactive material,

into the sea.

The Federal Government is promising

cheaper phone calls and broadband

access under its plan to split

Telstra in two. Australia's biggest

telecommunications company has been

left with little choice but to

accept the Government's deal or be

left out of future technology.

Telstra's day of reckoning arrived

with the Communications Minister

delivering an ultimatum. We're

providing Telstra with a range of

choices. They'll be forced to split

the wholesale business from the

retail arm. The idea - to break its

stranglehold on the industry. It

undoes previous mistakes over two

decades. If Telstra refuses,

they'll be shut out of future-

generation technology. This is a

good day for consumers, and for

competitors. Not a good day for

share-holders. Ufrpblgts mum-and-

dad share-holders of Telstra have

lost $2 billion in the value of

their company as a result of this

radical proposal. Telstra says it's

disappointed but prepared to talk

and it supports the Government's

vision for a national high-speed

broadband, a vision not shared by

the Opposition. What will it cost?

How many subscribers will it have?

What will they be asked to pay? It

is the right infrastructure for the

future. We'll proceed methodically, carefully.

Notorious paedophile Dennis

Ferguson remains holed up in a

public housing flat as the NSW

Government admits it's powerless to

make him move. The State Government

says the 61-year-old hasn't done

anything wrong and has so far lived

within the law. There are claims

this morning he used a different

name to sell toys and pens on name to sell toys and pens on

Sydney streets on behalf of Diabetes Australia.

Queensland police are hunting a man

who has attacked a woman in her

home in broad daylight. The victim

told police the man tried

repeatedly to strangle her.

A noise at the back door alerted

the 29-year-old victim. In a moment,

she was fighting for her life. The

unknown man tried to strangle her

as she confronted him. He ripped

her top from her and found a phone

charger korbd and put it around her

throat and attempted to strangle

her.

The woman said she felt she was

going to pass out but managed to

kick her attacker, forcing him to

let go. She fled to a neighbouring

house. Police hope someone saw the

man running from the area. Anybody

who was in this area and saw a male

person of that description wearing

that vest, we'd like to hear from

them. Neighbour Shannon Mayne can't

believe such an attack could happen

in his street. We moved up from

Victoria. We've been here nearly

two years. We wouldn't have dreamt

of this happening here, no way.

Forensic police have examined the

home for fingerprints. Police are

hopeful the attacker may have left

DNA clues. The woman was treated

for bruising and shock.

Pensioners say they've been let

down by the Federal Government's

new welfare package. Many say next

week's $32-a-week increase will do

nothing to lift them above the poverty line.

Disabled pensioner Nan sully has

left all morning looking for a

place to rent. $289 and...? She's

about to be kicked out of her

Hillcrest home but has nowhere to

go. And I'm afraid at 62 I don't

fancy living on the street. Nan is

part of a growing gay army who

can't afford to pay Queensland's

skyrocketing rents. Angry the

federal rent relief scheme has not

kept pace with landlords' demands.

Live in my shoes for six months, Mr

Rudd. Caramel is on a carer's

pension and while she's in

affordable housing, she can't make

ends met. Kev, come and live on a

pension for 12 months and just live

on your pension and see how you go,

mate. You won't do it. Queensland

mentioners will get a 15% rebate on

power bills and new cheap public

housing is on the way. 45% of State

housing is already taken up by

seniors. Nan sully just prays one seniors. Nan sully just prays one

day she'll be one of them.

Italian authorities have begun

investigating a shipwreck off the

coast of Calabria which is believed

to contain 180 barrels of

radioactive waste. They believe it

may be one of 32 ships sunk in the

area by the Mafia over the past 20

years. An informer has told them

the Mafia accepted large amounts of

money to dispose of toxic waste

legally but instead they'd sunk the

ships and pocketed the cash. There

are fears many dozens more

forgotten ships full of dangerous

waste could lie at the bottom of the Mediterranean.

An Iraqi reporter who hurled his

shoes at President Bush has been

released from brings. Muntadar al-

Zaidi has been hailed by many as a hero.

Muntadar al-Zaidi has been in

custody since last year, he threw

his shoes at President Bush. He

managed to duck the missulous but

not the local reporter's outbursts

and insults. While he laughed it

off, Zaidi was handed a 3-year jail off, Zaidi was handed a 3-year jail

term for assaulting a foreign

leader. With his early release

after an appeal, more embarrassment

for the Iraqi Government. Zaidi for the Iraqi Government. Zaidi

said he plans to tell his story on

television, claiming he was

tortured by government officials

shortly after his arrest. That

accusation, the Iraqi authorities deny.

While the Iraqi Prime Minister

continued talking at the news

conference, I was severely tortured

with various kinds of torture, he

said. "I was exposed to electric

shocks, beaten with cables and iron

bars." His release has reignited

the divide over his actions. Many

Iraqis brand him a disgrace, a ban

on celebration business supporters

has been ignored. In London,

footwear was thrown at Downing

Street during a protest against the

Israeli invasion of Gaza. And

George Bush is still the target on the Internet.

South Sydney co-owner Russell Crowe

is blaming himself for Jason

Taylor's Mad Monday scandal, saying

he should have spoken to the coach

about what was expected of him

before the celebrations. A decision

on his future is expected within

days.

Meanwhile, Ivan Henjak says his

side has nothing to lose in

Saturday night's NRL sudden-death

semifinal against St George Illawarra.

His club has never before won a

home semifinal but Ivan Henjak says

the Dragons have more to lose on Saturday night.

They're the minor premiers. I don't

think there's been a minor premier

that's been out the back door so

far under this system so there's a

little bit of pressure involved. little bit of pressure involved.

The kick-off still three days away.

The psychological game already well under way.

Six weeks ago, no-one expected us

to be here. So everything for us is

just a bonus at the moment.

There's a lot of expectation on

them because they've been waiting

such a long time. Gold Coast coach

John Cartwright has no regrets over

his half-time outburst at the

referees last weekend, even though

it cost him a $10,000 fine. I'm

sorry I did it and it won't happen

again but I stand by the reason I...

Nothing changes from my angle as to

how that game was refereeed. The

night. Titans play Parramatta on Friday

Mark Thompson and Mick Malthouse

continue to trade blows ahead of

the AFL preliminary finals. He says

his counter-part at Collingwood is

fooling himself if he thinks the

Cats are harbouring the most

pressure of the four remaining

clubs. He's a knowledgable man.

He's had a lot of experience. He

knows the caper. He's just playing

the game. He thinks we're under

more pressure than anyone else in

the other three sides, he's fooling

himself because we're not. We're

all under the same pressure. It's

not a game of cat-and-mouse is it?

The Cats are set to be bolstered by

the inclusion of Steve Johnson.

Mitchell Johnson is up against

Andrew Strauss and two endian

players for the cricketer of the

year award.

Johnson took two wickets against

England overnight. That's caught

rather easily. The home sides have

a healthy target of 300. A short

time ago, the Aussie were 5/255 in

reply. Ricky Ponting has just been

dismissed for 126. Australia leads

the 7-match series 4-0.

morning. A struggle on Wall Street this

Investors caught between a stronger

than expected retail sales report

and fears the recent market rally and fears the recent market rally

has outpaced the recovery. Here

again is Juliana Roadley from

CommSec much another day of gapes

but the market's been nervous this

week. What's the problem? Look, week. What's the problem? Look, I

think investors were a little bit

worried. You get retail sales up

there at a 3-year high and it

creates a lot of worry in the creates a lot of worry in the

market about a boom-and-bust

scenario, whether they'll have to

relive the whole recession problem

in the US yet again if the markets

go into a bust. Now, overnight, go into a bust. Now, overnight,

there was a lot of positive news.

Retail sales, producer prices and

the Federal Reserve chairman Ben

Bernanke came out and said it's

very likely that recession is over. very likely that recession is over.

The market liked this news.

Investors sold out of safe-haven

stocks and the US dollar, buying

into the materials, the retailers

and also a lot of the industrial

stocks towards the close. The Dow

was up 56 and the NASDAQ up 10. How

are we shaping up today? I think it

will set ourselves up for a really

good day. If you look at the

overseas markets, all of them were

mainly higher. Commodity prices

worked in our favour as well. The

SPI has our market set to open up SPI has our market set to open up

36 points higher this morning. The

gold price up there at $1,006 US an

ounce. The gold price is just below

$71 US a barrel. All working to see

our market well this morning. Thank

you. Thanks. Ron, that is it in a

big morning in finance.

Certainly was, Frank. Thank you

very much A check of the weather

before we go:

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

first 15 minutes of this bulletin

are available for download from the

Ten News website. I'm Ron Wilson.

We'll see you again tomorrow

morning. I'm Frank Coletta. Have a great day.

Supertext Captions by Red Bee Media Australia.