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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. And I'm Kathryn Robinson.

Welcome it Ten's Early News.

It's a big day of news.

A frantic search is under way to

the north-west of Australia for a

group of Sri Lankan asylum seekers

who may have drowned when their

boat sank. After a raft of good

economic news, the Reserve Bank are

tipped to spoil the party and raise

interest rates this afternoon. And

about half an hour after that

announcement, the nation will make

its annual 3-minute pause for the

big race. We'll cross rive to

Flemington this morning for the

latest. Later in other business

news, it's being called the great

Aussie bounce. A cautious but happy

better than expected. treasurer says the economy is

The asylum seeker crisis has turned

deadly. 11 people, believed to be

Sri Lankans, are missing, feared

drowned, after their boat sank drowned, after their boat sank near

the Cocos Islands north-west of drowned, after their boat sank near

Australia. Australian authorities

are leading a major search-and-

rescue operation and have so far

pulled 27 people out of the water.

One person is confirmed dead. There

is no sign of 11 others. We've got

the deployment of vessels. We've

got the deployment of aircraft.

We've had rescue rafts released

from those aircraft. But we have

grave fears. While Mr Rudd says the

focus is on rescuing the people at

sea, the crisis has intensified

political debate. It's reported the drowned Sri Lankans were going

around the north of Australia to

avoid being caught in the

Government's Indonesian solution.

Meanwhile senior Australian foreign

affairs officials are headed to

Jakarta this morning in a last-

ditch effort to solve the 'Oceanic

Viking' crisis. The 'Australian'

newspaper reports officials have

been dispatched to a secret meeting

for talks on how to help Indonesia

deal with people smuggling. I'm

under no illusions that this policy

and our implementation of it will

be in any way popular in the

Australian community. The stand-off

between 78 asylum seekers and

authorities shows no signs of

ending soon. Indonesia maintains

it's up to Australia to resolve the

situation.

The asylum seeker stand-off is

hammering the Rudd Government's

popularity. With the latest opinion

poll showing Australians demand

strong border protection.

The latest Newspoll shows Labor's

narrowest lead since the 2007

election with the Coalition closing

the gap by 14 points in just two

weeks. Despite that, Kevin Rudd

still holds a substantial lead over

Malcolm Turnbull as Australia's

preferred prime minister.

Another attempt will be made this

morning to kill the Timor Sea oil

rig fire by pumping heavy mud into

the leaking well. the leaking well.

4,000 barrels of mud have been

prepared for crews to try to cut

fuel to the fire which has been

raging at the west at last rig for

more than 24 hours. Meanwhile, a

massive 10-year spill has now

reached the coast of eastern reached the coast of eastern

Indonesia, killing fish and

villagers. destroying the livelihoods of

Hamid Karzai has been officially

declared president of Afghanistan

for another five years. The for another five years. The

troubled country's electoral

commission says, because the only

challenger, Abdullah Abdullah, has

pulled out, there's no reason to go

ahead with the run-off election

this weekend. The

The announcement drew a line under

months of political uncertainty but

hasn't satisfied observers, who are

convinced President Karzai won the

first round by extensive fraud.

The Bart Cummings-trained Viewed

has been backed into outright

favourite for the Melbourne Cup

just in front of the Bush-trained

South Australian galloper Alcopop. South Australian galloper Alcopop.

Bookmakers have taken a huge amount

of money on the Kiwi Daffodil.

There's no shortage of colourful

currency changing hands, especially

from one of Australia's biggest from one of Australia's biggest

gamblers. To win $100,000, Sean

Bartholomew. My investment would be

between $200,000 and $400,000. You

could buy a house with that? You

could buy 10,000 houses with what I

might win.

There were a series of bookmaker-

busting wagers. As the money

streamed in for Viewed and Alcopop,

Mark Kavanagh knows who he has to Mark Kavanagh knows who he has to

beat to win the race. Bart. Which

one? Just Bart. Cup King Bart

Cummings with three runners,

including one whose jockey,

Michelle Payne is aiming to become

the race's first female winner. She

couldn't be changed by a better

trainer. Despite an early toast

from alcopop's owners, Bush jockey

is treating it like any other race.

Just a bigger occasion. More money

attached to it. Just any other race,

huh?

Australia has levelled the stakes

against India at two-all. Shane

Watson made 49 with the bat as the

250. tourists could only manage a paltry

That's a positive shot from Shane

Watson. Watson and bolger took

three wickets as the Aussies

dismissed the Indians for 226.

Time for all the morning's finance

news. Kath, the Treasurer excited

about the economy? And for good

reason. The Federal Government's

outlook on the state of the economy

has improved considerably since the

May budget. The jobless rate is

expected to peak at 6.75% this

financial year, rather than the

forecast peak of 8.5%. The economy

is also expected to grow by 1.5%

having been earlier forecast to

contract by 0.5%.

Now, one of the reasons for the

Treasurer's cautious optimism on

the economy has been the strength

of the housing market.

Now, one company which had a less

than cheery day yesterday was Myer.

Shares in Australia's iconic

department store tanked on their

debut on the Stock Exchange, down

8.5%. The company pre-sold the

stock for $4.10 to customers,

employees and institutions but at

the close of business, the shares

were worth $3.75. Myer, though,

raised $2 billion from the float.

To overseas news now and the Ford

Motor Company has surprised

everyone by announcing it made

nearly $1 billion US in the third

quarter. Ford said the rise was

fuelled by market share gains,

cost-cutting and the cash for

clunkers rebates. The company says

it expects to be solidly profitable next year.

Let's check the markets. Checking newspaper headlines around

the country this morning, the

'Herald Sun' says a Melbourne man

has faced court having allegedly

strangled Rachel Betts to death

before dismembering her body and

throwing her remains into the sea.

The 'Financial Review' says the two

private equity firms which own PBL

and Seven media has suffered

combined writedowns of more than $4

billion since '06.

The 'Age' reports a fertiliser

company seeking to access the La

Trobe Valley's coal fields was a

major sponsor of last week's major

Labor Party fundraiser. And

'Business Day' says Macquarie

Generation has lost more than $400 million.

Here's an interesting story - a man

gets into a fight in a pub so what

does the hotel owner do? He sues

him for giving the pub a bad name.

We've got the details when we

return. VOICEOVER: While you're doing your bit to save water, at ACTEW, we're doing our bit to make sure water is always just a turn of the tap away. Our project to enlarge Cotter Dam is progressing well. Designs and surveys are complete, with plans put in place to retain the history of the Cotter area and to protect the environment. To keep up-to-date with the progress of Cotter Dam and our other major projects, visit our website. ACTEW Corporation - working with our partners to secure water for life. Start your day with a McMuffin

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This program is captioned live.

This is Ten's Early News.

Just in case you've missed it, it

is Melbourne Cup day, the day we

all become punters, whether we know

anything about horses or not. Last

year we splurged a whopping $171

million on Cup day, that figure

expected to be even higher today.

Flemington receiving her last- minute finery.

While the sparkling is being

chilled, it's hard work for those

carrying out the finishing touches.

A headache for some before the big party.

As the Birdcage prepares to receive

the chosen few, behind the scenes,

hundreds are toiling away to make

sure punters aren't running on

empty. We're hoping to have a few

here. We've probably got about

4,000 meals for the members and the

public. While Olivia Newton John

will add some magic to the day,

singing one of her signature tunes.

But the headlines -- headline act

is the $5.6 million Melbourne Cup.

It's a day to have a flutter,

regardless of your equine...

A difficulty there. We apologise for that.

Preparations at Flemington are

pretty much complete now and people

are already starting to turn up in

their racing best to stake their

part of the carpark. Ten's Matt

Doran was there nice and early to

get a spot and he joins us early live.

It wouldn't be Melbourne if the

weather didn't look dodgy? Dodgy

indeed. As you say, this is, after

all, the Melbourne Cup. There's

been light rain falling out here at

Flemington just over the last hour.

That should continue throughout the

morning. The bureau tells us to

expect gusty winds and a

temperature of 20 degrees. Even

still, there's a crowd of 100,000

expected to roll out here today for

the running of the $5.5 million

Melbourne Cup. Now, um, we're told

- sorry, the horses this morning

have gone through their paces.

They've been put through early-

morning track work, but it will be

a while until the punters turn out.

The gates open at Flemington in

just over two hours. Any updated

news we should know about on the

runners themselves? The big

question this morning and today

will be whether the sentimental

favourite Bart Cummings can get a

horse over the line to claim what

would be his 13th Melbourne Cup.

Now Viewed is the horse most

Australians believe will deliver

him that victory. It's last year's

winner and probably goes into the

race a $4.57 chance. It was

inspected by racing Victoria

stewards late yesterday and should

be fit to run. There's a fitness

close over the David Hayes-trained Changing-of-the-Guard. There's been

some speculation for the last few

days as to whether that will take

the course today.

And a decision won't be made until

a vet inspection is under way shortly.

The other main chances in the race

- Shocking, Alcopop and Roman

Emperor. They're all been heavily

backed and should be good to go.

Thanks for that, Matt. The big race

jumps at 3 o'clock this afternoon.

In other news this morning, 11

asylum seekers are feared dead

after their boat sank off

Australia's north-west coast. 27 of

the men on board have been rescued.

One was found did. The ongoing

crisis is enticing massive voter

backlash with the latest Newspoll

lowering Labor's lead over the

Coalition to its narrowest margin since the election.

The flying doctors have been

charged with an almost impossible

task - rescuing 11 people missing,

feared drowned. It's extremely hard

to find people in a vast expanse of

ocean. We have grave fears.

39 men were on board a boat when it

sent out distress signals 350

nautical miles off Australia. 27

men have been rescued. One was

found dead. The asylum seeker saga

keeps getting worse for the keeps getting worse for the

Government. The 78 Sri Lankans on board Australia's 'Oceanic Viking'

who are refusing to leave the

vessel to go to Indonesia are now

threatening to drown themselves if

they aren't brought to Australia.

Our Government is not budging. The

'Oceanic Viking' will continue to

be docked at the port in Indonesia.

I'm under no illusions that this

policy, and our implementation of

it, will be in any way popular in

the Australian community. He's got

that right. The latest Newspoll

shows Labor's narrowest lead since

the 2007 election, with the

Coalition closing the gap by 14

points in just two weeks. Malcolm

Turnbull isn't enjoying the same

shift. He's still on 19 points as

preferred PM.

Another attempt will be made this

morning to kill the Atlas oil rig

fire, by pumping heavy mud into the

leaking well. Crews have repaired - leaking well. Crews have repaired -

- prepared 4,000 barrels of mud to

try to cut fuel to the fire, which

has been raging at the Timor Sea

rig for more than 24 hours.

Meanwhile, 10 weeks after the spill

began, reports today that it's

reached the coast of eastern

Indonesia, killing fish and

destroying the livelihoods of villagers.

Four people have been charged over

the death and dismemberment of

Melbourne childcare worker Rachel

Betts. 55-year-old John Leslie

Combs has been accused of Combs has been accused of

strangling the 27-year-old and

cutting up her body before dumping

it off the coast of Phillip Island.

He's been remanded in custody along with 26-year-old Nicole Godfrey, with 26-year-old Nicole Godfrey,

charged with being an accessory.

Another man and woman, charged with

related offences, have been granted

bail. All four appear in the

Melbourne Magistrates' Court tomorrow.

In an Australian first, a pub is

suing one of its own patrons. The

owners of Brisbane's Chalk Hotel

are saying a man who allegedly

glassed another man hurt the

reputation of the pub. The man

could face jail, accused of

glassing a 26-year-old man. The

victim may lose sight in one eye.

The owner of the pub says they want

to send a clear message to patrons

that they won't put up with violence.

Queensland's Premier says she's

glad to be rid of Dennis Ferguson.

Premier Bligh's comments come after

an interview on the ABC last night

where the 61-year-old admitted to

the Brisbane child sex offences,

but with a catch. If it satisfies

everyone, I'll plead guilty to

something I didn't do just to be

left alone. The convicted

paedophile says he would consider

undergoing chemical castration if

it proved effective. He claims he's

lost all interest in children and

is not a threat to the community.

Ferguson now lives in north-western Sydney.

Winter has arrived in parts of

Britain with torrential rain and

howling winds. People in north and howling winds. People in north and

eastern Scotland are cleaning up

this morning after two rivers burst

their banks and flooded homes.

People couldn't stop the water

gushing in. It's left a trail of

damage and forecasters say the

threat of more flooding hasn't gone

away just yet.

At least 16 people have died in a

fierce blaze which tore through a

shantytown in the Philippines. The

fire broke out during the night and

spread quickly because of strong

winds. Many of the dead perished in

their sleep. More than 60 shacks their sleep. More than 60 shacks

were destroyed. The shantytown was

home to people who worked at a nearby market. The European Space Agency has The European Space Agency has

successfully launched two

satellites to explore the impact of

global warming. The soil moisture

and ocean salinity mission will

give researchers a better

understanding of the planet's water

cycle. It will map sea surface

salinity and soil mist our on a

global scale. It will also improve

meteorologists' predictions of

extreme weather conditions. The

second satellite will conduct

experiments related to solar

observation and space weather.

The Bart Cummings-trained Viewed

has been backed into outright

favourite for today's Melbourne Cup

just in front of the Bush-trained just in front of the Bush-trained South Australian galloper Alcopop.

While Shocking's trainer, Mark

Kavanagh, knows who he has to beat

to win the race. Bart. Which one?

Just Bart. Just Bart indeed! The

winner will take home $5.5 million.

Former St Kilda star Robert Harvey

has revealed his desire to coach at

senior level after being promoted

to an assistant's role at Carlton.

Harvey hinted Matt McGuire could be

heading to the Blues. Robert Harvey

is one of the hard-luck stories of

the AFL. He pushed his body through

21 seasons, amassing 383 games, but

the champion never got to taste a

Premiership. While he was unable to

do it as a player, Harvey's dreams

of success in September could still

be alive, revealing for the first

time he wants to lead his own side.

The first year was good. I really

enjoyed it. This year is another

step up, responsibility-wise. I've

enjoyed every part of it. At the

moment it's something I'd look at

down the track. Carlton is

considering throwing Matt McGuire a

Lifeline. They're set to invite the

sacked Saint to pre-season training,

which kicked off yesterday Mini

Brenda Fevola. Harvey quick to put

down speculation that Fevola was

kicked out after falling out with

Chris Judd. A lot of that was

hearsay. From our point of view

there was no differences. The

decision has been made. We're happy

with our list.

Wallabies vice captain Barnes --

Berrick Barnes is breathing a sigh

of relief after avoiding surgery on

his ankle. It's good news for

Barnes and for the Waratahs, who

have begun training for next season.

It gives his body a little bit of a

break. I'm sure he'd trade that off

for the experience of the Grand

Slam tour. Barnes is expected to be

fit for the match against the Queensland Reds.

It's been a choppy end to the

session on Wall Street. Strong

manufacturing numbers and a

surprisingly strong quarter profit

from Ford not enough to keep shares

in the bank. We're noind by Nick Walter from Macquarie Private Wealth.

The Dow Jones right now is showing

down 13 points. It was up

considerably earlier in the day on

the back of news from Ford. Ford is

a bellwether of the US economy and

gives an indication of the strength

of recovery. We saw the

manufacturing data which showed the

US manufacturing sector is growing

at the strongest pace of the last

three years. That sent the market

up. We had negative comments from

the US Federal Reserve official

which said the US banking system is

far from robust and that sent

markets down. Back home now I'm markets down. Back home now I'm

sure a lot of Aussies will have a

punt on the big race today. If you

were going to take a punt on what

the RBA will do, what would that

be? Historically they take a step-

by-step, measured approach to

raising rates. It's our expectation

that we'll see a 0.25% rise today

and they'll take that -- take that

approach in the next six months.

We've had strong unemployment

numbers, low inflation numbers and

yesterday the upgraded budget

forecasts from Wayne Swan. OK, 25

points. Thank you, Nick Walter at

Macquarie Private Wealth.

Still ahead - for from Flemington

as we frock up, spend up, saddle up

for today's Melbourne Cup. JAMES BROWN: (SINGS) # I feel good... # The Chicken Tikka Sub from SUBWAY restaurants. Succulent chicken strips in an authentic tikka marinate, piled high with salad on freshly baked bread. Feel good with the Chicken Tikka Sub. # Hey! #

This program is captioned live.

These are the headlines:

A frantic search is under way for a

group of Sri Lankan asylum seekers

believed to have drowned when their

boat sank. Don't spend all your

money on the horses today. The

Reserve Bank may have bad news for

your mortgage repayments at around

$2 -- at around 2:30 Australian

eastern. Oh, come on, Kathryn.

Forget about money for today. We're

crossing to Flemington for the latest soon.

11 people, believed to be Sri

Lankans, are missing, feared

drowned, after their boat sank near

the Cocos Islands. Australian

authorities are leading a major

search-and-rescue operation and

have so far pulled 27 people out of

the water. One person is confirmed

dead. There are no signs of 11

others. We've got the deployment of

vessels, deployment of RAAF

aircraft, we've had rescue rafts

released from those aircraft. But

we have grave fears. While Mr Rudd

says the focus is on rescuing

people at sea, the crisis has

intensified political debate. It's

reported the drowned Sri Lankans

were going around the north of

Australia to avoid being caught in

the Government's Indonesian solution. Meanwhile, senior Australian

foreign affairs owes officials are

heading to Jakarta this morning in

a last-ditch effort to solve the 'Oceanic Viking' crisis.

I'm under no illusions that this

policy and our implementation of it

will be in any way popular in the

Australian community. The stand-off

shows no signs of ending soon.

Indonesia maintains it's up to

Australia to resolve the situation.

The asylum seeker stand-off is

hammering the Rudd Government's

popularity, though, with the latest

opinion poll shost showing

Australians demand strong border

protection. Newspoll shows Labor's

narrowest lead since the 2007

election, with the Coalition

closing the gap by 14 points in

just two weeks. Despite that, Kevin

Rudd still holds a substantial lead

over Malcolm Turnbull as

Australia's preferred Prime Minister.

-- prime minister.

Another attempt will be made this

morning to kill the west Atlas fire.

4,000 barrels of mud have been

prepared for crews to try to cut

fuel to the fire, which has been

raging for more than 24 hours.

Meanwhile, the massive 10-week

spill has now reached the coast of

eastern Indonesia, killing fish and

destroying the livelihoods of villagers.

Hamid Karzai has been officially declared president of Afghanistan

for another five years. The troubled country's electoral

commission says, because the only

challenger Abdullah Abdullah has

pulled out, there was no reason to

go ahead with the run-off election

this weekend. The announcement drew

a line under months of political

uncertainty, but hasn't satisfied

observers, who are convinced

President Karzai won the first

round by extensive fraud.

Terrorists have struck repeatedly

in Pakistan yet again. At least 15

people have been hurt in the latest

explosion at a police checkpoint.

Just hours beforehand, a deadly

explosion near the capital killed

more than 35.

Sierps wail after another deadly

suicide attack -- sirens wail after

another deadly suicide attack in

Pakistan. The charred ruins belong Pakistan. The charred ruins belong

to the bomber. It went off near a

bank where workers were lined up to bank where workers were lined up to

pick up their pay cheques. This man pick up their pay cheques. This man

panicked when the bomb went off. He

had left his young son in the car.

His child is still missing. At His child is still missing. At

least 35 people were killed and least 35 people were killed and

dozens more injured in the city of

Rawalpindi, just a few miles from

Pakistan's capital. The city is

home to the main army headquarters.

Pakistani police say soldiers are

among the victims. The bomb blast

triggered the United Nations to

pull out all foreign staff and

suspend aid operations in the

region. They say it's just too dangerous.

A second bomb went off near a

police checkpoint in the city of

Lahore, injuring more than a dozen.

UN workers are among more than 300

people who have been killed in a

string of attacks over the last few weeks.

The assaults are seen as

retaliation for Pakistan's military

offensive against Taliban and al- Qaeda militants.

Well, it will come as no surprise

if I tell you it's Melbourne Cup

day, the day we all become punters,

whether or not we know anything

about horses. Last year, we

splurged a whopping $171 million on

Cup day. That figure is expected to

be exceeded today. Flemington received her last-minute finery.

While the sparkling is being

chilled, it's hard work for those

carrying out the finishing touches.

A headache for some before the big party.

As the Birdcage prepares to receive

the chosen few, behind the scenes,

hundreds are toiling away to make

sure punters aren't running on

empty. We're hoping to have a few

here. We've probably got about

4,000 plated meals we're hoping to

do for the members and the public.

While Olivia Newton John will add

some magic to the day, singing one

of her signature tunes. But the

headline act is the $5.6 million

Melbourne Cup. It's a day to have a

flutter regardless of your equine

expertise. I'm having view, Roman

Emperor and Master O'Reilly,

trifecta. It seems everyone has a

tip. I'm tipping Shocking. I wouldn't normally support the

favourite but you've got to say

Viewed is pretty good. The most

coveted prize is in the fashion

stakes. Hundreds of entrants

doneing their racing best to win

best dressed and spying someone in

the same frock a major fashion faux

pas, especially if you're friends.

We didn't really talk beforehand.

The forecast is looking up, with

light showers clearing in Melbourne

this morning, but with gusty winds

and a top temperature of 20, the

most suitable attire has a sleeve.

Oh, well, for some people it's all

about the fashion, but Bart

Cummings-trained Viewed has been

backed into outright favourite for

the Cup, just in front of the Bush-

trained South Australian galloper

Alcopop. Bookmakers have also taken

huge money on the Kiwi Daffodil.

There's no shortage of colourful

currency changing hands, especially

from one of Australia's biggest

gamblers. On a race like this, my

investment is somewhere between

$200,000 and $400,000. You could

buy a house with that. You could

buy 10 houses with what I might win.

Bartholomew supporting Viewed and

Shocking as others joined in with a

series of bookmaker-busting wages.

As the money streamed in for

Alcopop and Viewed viewed, scab shocking's trainer Mark Kavanagh shocking's trainer Mark Kavanagh

knows who he has to beat to win the

race. Bart. Which one? Just Bart.

Cup King Bart Cummings with three

runners, including Allez Wonder,

whose jockey, Michelle Payne, is

aiming to be the race's first

female winner. She'll run it out

strongly. She's trained by Bart

Cummings. Couldn't have a better

trainer. Despite an early toast

from Alcopop's openers, Bush jockey

Dom Tourneur is treating it like

any other race. Just a bigger

occasion with more prize money.

Australia has levelled the one-day

series against India at two all

following a 24-run win at Mohali.

Shane Watson was the here owe for

the Australians with an all-round

effort, making 49 with the bat as

the tourists could only manage a

paltry 250.

That's a good shot.

Positive from Shane Watson. Watson

and Doug Bollinger took three

wickets as the Aussies dismissed wickets as the Aussies dismissed the Indians for 226. the Indians for 226.

Being Melbourne Cup day, I think

I'll put five bucks on Interest

Rate. It's running at 2:30. Given

the state of the economy... I don't

think it will pay much given it's a

sure bet. It's being referred to as

the recession we never had.

The Government has painted a rosie

picture of the economy.

News from the Government's mid-year

economic forecast was better than

expected. Economic growth forecasts

are up and estimates for

unemployment have been slashed. The

jobless rate is expected to peak at

6.75% in 2009/10 rather than the

forecast peak of 8.5%. The economy

is also expected to grow by 1.5%

this financial year, having been forecast

forecast in the May budget to contract by 0.5%.

It means that Australia has avoided

a deep recession.

Despite that, the Budget is still

expected to be 57.7 billion dollars

in the red this year, a fraction

more than what was forecast in May.

They're running seven years of

deficit for just one-quarter of

negative quote. That's a huge price

to pay. The largely positive to pay. The largely positive

economic news has most economists

tipping an increase in official

rates of at least 25 basis points

later today and possibly another 25

in a month's time.

This comes as new figures show the

average house price index in

Australian capital cities has risen

4.2% in the September quarter.

The Government's positive read on

the economy strengthens the case

for the RBA to raise rates when it

meets today at 2:30 Australian time.

I'm joined again by Nick Walter

from Macquarie Private Wealth.

What's your expectation for rate

rises? One month ago, the Reserve

Bank was the first central bank

anywhere around the world to raise

rates and that was an indication of

the strength of the Australian

economy and it sent a positive

signal to the rest of the world

that we're emerging through this

recovery. Since then, we've had

strong economic numbers, strong GDP,

low inflation and just yesterday we

had upgraded budget forecasts from

Wayne Swan. That points to rate

rises over the next few months.

Today what we're going to see is, I

think, 25 basis points. That's

certain ly the expectation. If we

see a 0.25% rise today, how likely

is it that banks will pass on this

to consumers and within which time

frame? Due to the financial crisis

of the last couple of years, the

banks have been offering high

deposit rates. They'll be keen to

balance that with higher mortgage

rates. As soon as the Reserve Bank

pulls the trigger, you'd expect the

major banks will also raise their

rates 25 basis points. There is

some Government pressure for them

not to raise rates higher than that.

It will be interesting to see. Time

to tighten the belt, I think. Nick

Walter from Macquarie Private Wealth, thank you.

To company news now and Myer had a

less than impressive start on the less than impressive start on the

boards when it listed yesterday on

the ASX. The iconic department

store tanked on debut. Shares down

8.5%. The company pre-sold the

stock for $4.150 a share to

employees, and institutions but

yesterday the shares were worth

$3.75. Myer, though, raised $2

billion from the float.

A check of the markets now.

Still ahead - James Bond gave them

the idea and now scientists have

worked out how to make you drive

your car using your cellphone.

We'll tell you how after this. GOOD MORNING, I'M FIONA NELSON. FIRST UP, CANBERRA'S HOUSE PRICES ARE CONTINUING TO RISE, IN LINE WITH THE REST OF THE COUNTRY. THE AUSTRALIAN BUREAU OF STATISTICS, HAS RELEASED FIGURES, FOR THE EIGHT CAPITAL CITIES, AND SHOWS, PRICES WERE UP, FOUR - POINT - TWO PER CENT, OVER THE PAST THREE MONTHS. THAT FOLLOWS THE RELEASE OF THE PROPERTY MONITORS REPORT, LAST WEEK, WHICH SAID PRICES WERE UP ABOUT THREE - POINT - SEVEN PER CENT. AS THE A-C-T PREPARES FOR THE COMING FIRE SEASON, THE TERRITORY HAS A NEW RURAL FIRE SERVICE CHIEF. THE MINISTER FOR EMERGENCY SERVICES, SIMON CORBELL SAYS, ANDREW STARK, WILL TAKE ON THE TOP JOB AT THE END OF THIS MONTH. HE COMES TO THE A-C-T, FROM THE FAR SOUTH COAST R-F-S. CANBERRANS WILL CELEBRATE THEIR LAST FAMILY AND COMMUNITY DAY ON MELBOURNE CUP DAY THIS YEAR, BUT THE TRUCKING INDUSTRY, IS CALLING FOR SOME REGULATION. THE TRUCKING ASSOCIATION SAYS, DIFFERENT PUBLIC HOLIDAY DATES, IN DIFFERENT STATES, ARE AN UNNECESSARY BURDEN ON LOCAL BUSINESSES. TRUCKIES SAY, PRODUCTS ARE HAVING TO BE STORED TOMORROW, BECAUSE BUSINESSES CAN'T TAKE DELIVERY OF THEM UNTIL WEDNESDAY. AND VIGOR HAS BEEN LEFT OUT OF THE MELBOURNE CUP, WITH

CONNECTIONS, YET TO THE HORSE'S CANBERRA TRACK. DETERMINE ITS FUTURE ON THE CAULFIELD ONLY THREE WEEKS DESPITE FINISHING THIRD AT OWNED BY CANBERRA'S JASON AGO, VIGOR, WHICH IS PARTLY THE STARTERS FOR TODAY'S MATHIE, WASN'T INCLUDED IN MAIN RACE. NOW HAVING A LOOK AT TODAY'S WEATHER DETAILS... WARM AND HUMID CONDITIONS WILL CONTINUE ACROSS THE A-C-T - A TROUGH IS EXPECTED TO TRIGGER ISOLATED SHOWERS AND THUNDERSTORMS TODAY LOOKING ACROSS THE NATION NOW - CANBERRA, COULD GET A LATE STORM - MOSTLY FINE FOR SYDNEY - WET AND WINDY FOR RACE DAY IN MELBOURNE CHECKING WHAT TO EXPECT ACROSS SOUTHERN NEW SOUTH WALES - CLOUD INCREASING FOR DUBBO 35 THE TOP - A POSSIBLE SHOWER AND 31 FOR BEGA A LATE SHOWER AND 30 DEGREES FOR BOWRAL - A POSSIBLE SHOWER AND 32 FOR BATEMANS BAY A POSSIBLE STORM WITH AN EXPECTED TOP OF 34 FOR MUDGEE - LATE THUNDER AND 11 FOR THREDBO SHOULD BE FINE AND PARTLY LOOKING AHEAD - TOMORROW - CLOUDY. (9 24) CLOUDY. (9 20) THURSDAY - MAINLY FINE AND FINE DAY. (9 20) FRIDAY - SHOULD BE ANOTHER I feel good JAMES BROWN: (SINGS) # Ow! # I knew that I would now... # low-fat Chicken Tikka Sub Introducing the delicious new from SUBWAY restaurants. in an authentic tikka marinate, Succulent chicken strips just the way you like it. piled high with salad, freshly baked multi-grain bread? And why not try our new with the Chicken Tikka Sub, Feel good available for a limited time only. # Hey! #

This program is captioned live.

This is Ten's Early News.

Well, there's probably only one

question on the lips of most

Australians today. Who will win the

cup? Preparations at Flemington are

complete and people are turning up

in their racing best. Ten's Matt

spot this morning. Doran is among them there on the

Matt, weather a bit dodgy this

morning in Melbourne. It's

certainly been your typical morning

in Melbourne. There's been light

rain falling over the last hour.

It's chilly at floming tonne.

There's gusty winds and the bureau

tells us to expect a top today of

just 20 degrees. Even still,

organisers are hoping a crowd of

about 100,000 people will roll out

for the running of the $5.5 million

Melbourne Cup, which is now in its

149th year. It will all get under

way very, very shortly. The gates

open here at Flemington in just

under two hours. What about the

runners? Any fresh news for us? The

big question today has got to be

whether the 80-year-old sentimental

favourite, Bart Cummings, can notch

up a 13th win. His biggest chance

is Viewed. He goes into the race

outright favourite and should start

a $4.75 chance. There's a question

mark this morning over the David

Hayes-trained Changing-of-the-Guard.

There's been speculation for a few

days as to whether it will make it

up for the race. A decision won't

be made until a vet inspection is

carried out this morning. The other

big chances are Shocking, Alcopop

and Roman Emperor. They're all

heavily backed. Puppeters are

tipped to dump $60 million on the

big race. I know you're a

fashionista. Any tips for what

people should ware to the race,

given the wear, etc? I don't know

about that. But an umbrella will

obviously be a required accessory.

We can expect out here today a mix

of the high end and also the weird

and the wacky as Melbourne

celebrates one of the premier days

on the calendar. Matt, good on you.

Thank you very much.

In other news this morning, 11

asylum seekers are feared dead

after their boat sank off

Australia's north-west coast. 27 of

the men on board have been rescued.

One was found dead. The ongoing

crisis is enticing mass voter

backlash, with the latest Newspoll

lowering Labor's lead over the

since the election. Coalition to its narrowest margin

The Flying Doctors have been

charged with an almost impossible

feared drowned. task - rescuing 11 people missing,

It's extremely hard to find, um,

find people in a vast expanse of

ocean. We have grave fears.

39 men were on board a boat when it

sent out distress signals 350

nautical miles off Australia. 27

found dead. men have been rescued. One was

The asylum seeker saga keeps

getting worse for the Government.

Australia's 'Oceanic Viking', who The 78 Sri Lankans on board

are refusing to leave the vessel to

go to Indonesia, are now

threatening to drown themselves if

they aren't brought to Australia.

Our Government's not budging. The

'Oceanic Viking' will continue to

be docked at the port in Indonesia.

I'm under no illusions that this

policy and our implementation of it

will be in any way popular in the

Australian community. He's got that

right. The latest Newspoll shows

Labor's narrowest lead since the

2007 election, with the Coalition

closing the gap by 14 points in

just two weeks. Malcolm Turnbull

isn't enjoying the same shift. He's

still on 19 points as preferred PM.

Another attempt will be made this

morning to kill the Atlas oil rig

leaking well. fire by pumping heavy mud into the

Crews have prepared 4,000 barrels

of mud to try to cut fuel to the

fire, which has been raging in the

hours. Timor Sea rig for more than 24

Meanwhile, 10 weeks after the spill

began, reports today are that it's

reached the coast of eastern

Indonesia, killing fish and

destroying the livelihoods of local villagers.

Four people have been charged over

the death and dismemberment of

Betts. Melbourne childcare workers Rachel

55-year-old John Leslie Cooms has

been accused of strangling the 27-

year-old and cutting up her body

before dumping it off the coast of

Phillip Island. He's been remanded

in custody along with 26-year-old

Nicole Godfrey, who's been charged

as an accessory. Another man and

woman, charged with related

offences, have been granted bail.

All four will appear in Melbourne Magistrates' Court tomorrow.

In an Australian first, a pub is

suing one of its own patrons. The

owners of Brisbane's Chalk Hotel

say a man who allegedly glassed

another man during a fight damaged

more than the other man's face. It

hurt the reputation of the pub. The

man could face jail, accused of

glassing a 25-year-old man. The

victim may lose sight in one eye.

The owners of the pub say, by suing

the charged man, they want to send

a clear message to patrons that

they will note put up with violence.

Queensland's Premier says she's

glad to be rid of Australia's

notorious paedophile Dennis

Ferguson. Her comments come after

an interview on the ABC last night,

where the 61-year-old admitted to

the Brisbane child sex offences,

but with a cast. If it satisfies

everyone, I'll plead guilty to

something I didn't do, just to be

left alone. The convicted

paedophile says he would consider

undergoing chemical castration, if

it proved effective. He claims he's

lost all interest in children and

is not a threat to the community.

Sydney. Ferguson now lives in north western

People in parts of Scotland are

cleaning up this morning after two

rivers burst their banks and

flooded homes. The start of the

British winter has brought

torrential rain and howling winds.

24 hours of heavy rain swamped many

parts of north and east Scotland.

This was Stonehaven last night, one

of the worst hit areas. Two rivers

burst their banks and within an

hour water of gushing into homes

and businesses. By morning, the

water had receded, leaving behind a water had receded, leaving behind a

trail of devastated homes,

businesses and lives. businesses and lives.

We're trying to stop it coming in.

It just still came through the door

and it was like a river. It was

really quite frightening. There was

nothing you could do. Within half

an hour, it was coming through our

front door and coming into the flat.

We tried to barricade the door but

nothing was helping.

I came up - there was nothing I

could do. I couldn't even get down

to the shop. I came in about five

o'clock this morning and there was

about 1.5 feet of water inside the

bakery. Many schools, roads and

train services remain closed across

north and east Scotland. Hundreds

of families are unable to return home.

The worst of the weather is over,

for now, but the threat of flooding isn't.

A US Navy ship built with steel A US Navy ship built with steel from the World Trade Center has

arrived in New York on its maiden

voyage. The bow of United States US

'New York' contains about 7.5 'New York' contains about 7.5

tonnes of steel from the fallen

towers. It was welcomed into the

city with a 21-gun salute. Navy

personnel have been queueing up to

serve on the ship, which will be

officially commissioned in a ceremony on Saturday.

Fans of the iPhone are always Fans of the iPhone are always

showing off their latest apps but

now there's one which budding James

Bonds will definitely want to

download. A team in Germany has

come up with a way of driving an

unman car by remote control using

an iPhone. It works using special

modifications and an Internet

connection, which, of course, means

if the Internet crashes, well, I

guess the car will too! The phone

can make the car steer, break and

accelerate, even though, of course,

you're not supposed to use your

phone while driving.

As Kathryn keeps telling me.

The Bart Cummings-trained Viewed

has been backed into outright

favourite for today's Melbourne Cup

just in front of Alcopop. While

Shocking's trainer, Mark Kavanagh,

knows who he has to beat to win the race. Bart. (LAUGHTER)

Which one? Just Bart. Yeah, just

Bart alright. The winner will take home $5.5 million.

Former St Kilda star Robert Harvey

has revealed his desire to coach at

senior level after being promoted

to an assistant role at Carlton.

Harvey also hinted former team-mate

Matt McGuire could be heading to the Blues.

Robert Harvey is one of the hard-

luck stories of the AFL. He pushed

his body through 21 seasons,

amazing 383 games, but the champion

Saint never got to taste a

Premiership. While he was unable to Premiership. While he was unable to

do it as a player, Harvey's dreams

of suck sis in September could

still be alive, revealing for the

first time he wants to lead his own side.

The first year was good. I really

enjoyed it. This year is another

step up responsibility-wise. I've

enjoyed every part of it. At the

moment, yeah, it's something I'd

look at down the track. Carlton is

considering throwing Matt McGuire a

Lifeline. They're set to invite the

sacked Saint to pre-season training,

which kicked off yesterday minus

Brendan Fevola. Harvey quick to

host down speculation Fevola was

kicked out after fouling -- falling out with Chris Judd.

From our point of view, there was no point of difference. The

decision has been made. We're happy with our list.

Wallabies vice captain Berrick

Barnes is breathing a sigh of

relief after avoiding surgery on

his injured ankle. It's good news

for Barnes and his new super14 team,

the Waratahs, who begin training for next season.

From a physical point of view, it

gives his body a little bit of a

break but I'm sure he'd trade it

off for the experience of the Grand

Slam tour. Barnes is expected to be

fit for the round one match against the Queensland Reds.

Strong economic and company data

has turned US stocks around this

morning. I'm joined Ben by Nick Walter from Macquarie Private

Wealth. What's behind the turn

around in fortunes? Some positive and some negative announcements

overnight. Firstly Ford, which is a

bellwether for the US economy,

reported a quarterly profit of

almost $1 billion and indicated

that, based on higher sales,

they'll return to full

profitability by 2011. That sent

the market higher by conversely,

some comments from the US Federal some comments from the US Federal

Reserve that the banking system in

the US is far from robust sent the

market falling. Just in the last

few minutes of trade, the market

has punched back up and is set to

close around 38 points higher. The

SPI is up around one point at this

stage. Do you think it will close

higher if rates are raised today?

The US movement will give us a

positive lead in the morning. But

all eyes throughout the day will be

on the races and the Melbourne Cup than on the market.

You'll see low volumes traded today

and the market will close almost

early in the afternoon. Before with

he go, have you got a tip on the

cup? Always be nice to be -- nice

to your mother. That's it. A busy

day - Your mum's running at three

o'clock? Something like that, yeah.

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

The first 15 minutes of this The first 15 minutes of this

bulletin are now ready for download bulletin are now ready for download

from the Ten News website and

shortly as a free podcast from the shortly as a free podcast from the

i tiens store. Just search for 'Ten

News'. Good luck on the cup. We'll

see you again tomorrow morning.

Thanks for your company. Have a

great day. Good morning.

Supertext Captions by Red Bee Media Australia.