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(generated from captions) This program is captioned live. Welcome to Ten's Early News. Good morning. I'm Kathryn Robinson. Today - the Reserve Bank meets widely-condemned interest rate rise. to discuss a widely-anticipated and in the latest news poll The Coalition extends its buffer the party into the next election. amid news John Howard will steer on southern Lebanon Israel unleashes more attacks despite agreeing to 48-hour stoppage. an off-field player incident And in sport - speculation over for the Brisbane Broncos. causes more trouble and for the rest of the day: Now for a look at today's weather at finance. And now for our first look Good morning Frank Coletta. Good morning Kath. yesterday. Well, Australian stocks rose The Reserve Bank meets today for the second time this year. to consider lifting interest rates to curb borrowing The RBA is under pressure showed inflation surging at 1.6%. after the latest consumer price index to lift beyond a cash rate of 6% We don't expect the Reserve Bank

are indebted. largely because households effective. Monetary policy is still reasonably of higher mortgage payments. So households face the challenge of higher personal income. They also face the challenge to the average Australian mortgage. The rise would add $35 a month ad campaign. Kath, this is no small fry billion-dollar plan shortly. Details on a leading banks' Liberal leadership speculation John Howard has cast aside he'll fight the next election. telling his colleagues saying he'll remain Treasurer. Peter Costello has fallen into line to Far North Queensland On a flying visit

efforts. the PM inspected cyclone recovery Hello there! he faxed fellow Liberals Just hours earlier, to the next election. telling them he would lead the Party and vigour I commit myself with enthusiasm of my colleagues. to responding to the wishes The school motto more than fitting. Keep on keeping on. Good advice. to one side. The Treasurer put his ambitions including public and colleagues, It is clear to me that most people,

transition at the current time. do not support a leadership as Treasurer. Mr Costello also staying put That's the outcome. It doesn't matter what I feel. on the back-burner, With the leadership issue what will be a tough election battle. the Government can now focus on A campaign has started. and a fight I'm going to win. This is the fight I want team we're just about invincible. I think with the Howard-Costello Murray McCloskey, Ten News. and fears of interest rate hikes High petrol prices, rising inflation Federal Coalition's popularity. haven't dented the Labor's primary vote down The latest Australian Newspoll shows heading for next year's election. while the Coalitiion's is up slightly will be taking on Beazley. In the end, Howard and Costello for a republic says The man behind the 1999 campaign referendum on the issue - there's no need for another at least not now. has told the ABC Liberal MP Malcolm Turnbull

isn't right the current political climate of Queen Elizabeth's reign. and may not be until the end He's even gone as far as to note to PM John Howard a pro-republic successor a case for another referendum. would not necessarily bring about

to catching the killer Victorian police are inching closer in an underworld murder. Former lawyer Mario Condello home in February this year. was gunned down outside his Melbourne of a man Detectives have released an image

in the slaying they regard as a suspect seen near the victim's home and a description of the car on the night of the murder. on charges of incitement to murder Mario Condello was to face trial the day after he was killed. are gathering at the Lebanese border. Thousands of Israeli soldiers last military onslaught It's believed they're planning one before diplomacy stops the violence. First, we heard them arrive overhead then we saw why they were here. bombing Hezbollah positions. Israeli jets right in front of us. It happened at least twice offered this aerial ceasefire Now the PM of Israel, Ehud Olmert, under intense political pressure, and doing it has put him to keep flying. but it always allowed for the jets an enormous force is gathering. Behind the shelling, This is the new front. The focus of a ground campaign would be expanded and deepened. Israel's defence minister said

it is a fight. But here on the border Hezbollah still respond. hit back and hurt the Israelis. This is a good example they can

that this is one last Israeli push. There is a view here before diplomacy stops the fighting. One last onslaught on Hezbollah was all about. One last chance to do what this war

military offensive, Despite Israel's growing George W. Bush says American President this week. a peace deal could be struck and the US is building But anger towards Israel

to condemn Israeli actions. with thousands taking to the streets Syria and India. Protests have also erupted in Iraq, Rice wrapped up extensive talks, As US Secretary of State Condoleezza he would work towards lasting peace President Bush said through the UN security council. has given Iran 30 days The UN Security Council or face the threat of sanctions. to stop its uranium enrichment, France and Germany The resolution was framed by Britain, refer Tehran to the Security Council after Russia and China agreed to its enrichment programme. when it ignored incentives to suspend with Qatar representing Arab states, The draft passed by 14 votes to one casting the lone dissenting vote. NRL side to be embroiled The Brisbane Broncos are the latest in an off-field player controversy. Brett Seymour Media reports placing halfback at the centre of an alleged incident, early yesterday morning. Queensland police say this popular Brisbane watering hole, they are aware of an incident at but no complaint has yet been made. Brett Seymour Yesterday, Broncos halfback met with senior club officials. players and contacted other people We also had a meeting with other because, as I said, a complete investigation of our own. we're carrying out to investigate. The club also asking police It's an unwanted distraction for the club, but with three losses in a row, don't mention the 'S' word. It's not a form slump. The Tigers have stitched up dazzling rookie Chris Lawrence

for the next three years, though the 17-year-old has no time to celebrate. He's doing his trial HSC exams this week. And Eels hard-man Fuifui Moimoi

faces a suspension of between seven and ten weeks after he was charged for a grade three reckless high tackle. Anthony Goodridge, Ten News. Melbourne's bid for a top two finish has been dealt a double blow with Aaron Davey and Byron Pickett ruled out for a month with torn hamstrings. A hamstring injury has also sidelined Richard forward Nathan Brown for two weeks, while Geelong's Gary Ablett will miss a fortnight with a shoulder injury. Meanwhile, Cameron Mooney

has been given a one-match suspension for charging. Richmond ruckman Greg Stafford has copped two weeks for this bump while team-mate Troy Simmonds has been given a week for a jumper punch so, too, Saint Steven Baker. Wallabies coach John Connolly has hinted at resting key players from the end of season tour of Europe. Up to half a dozen players have been ear-marked for a break ahead of next year's World Cup. Captain George Gregan drawing most of the attention. George was actually probably number 4 or 5 on the list, and he's been plucked from 5 up to 1 and made a headline out of so I don't know where it came from. There were 2 or 3 other guys that we'd spoke of ahead of that.

Gregan's possible omission will give the Wallabies a chance to blood a number of new players

including Australia under-21 half-back Josh Holmes. Finance now with Frank and Westpac pulling out all stops to win-over customers? Kath, they're putting in a big effort but they're spending big too as they try and get the message across. Westpac will spend $1 billion over the next three years on an advertising and sales campaign to try and stem negative consumer backlash. Its foreign transactions jumped from $1.50 to $2 earlier this year, enough to see Westpac slip to third behind ANZ and the NAB in a satisfaction survey. The push for a positive consumer response is to be designed by the bank's new advertising firm Campaign Palace. And new battle-lines have been drawn in Australia's supermarket war. Our largest retailer Coles Myer is changing its name and logo in an attempt to make it more competitive. The Coles boss was all smiles

when he delivered the history-making announcement. It's a whole new beginning for Coles. for retailing in this country, I think it's a new era for customers. The company set to operate under the name Coles Group, severing ties with Myer chain which it sold for $1.4 billion last month. Bi-Lo, Liquorland, Coles Express and Kmart stores

will eventually all take on the Coles name. More than $900 million will be spent in upgrading supermarkets and reassigning staff. The process of taking people out of offices It will continue to trade as Coles Myer until the name changes are officially ratified at November's annual general meeting. Analysts belive the move is a positive step in regaining vital ground on retail rival Woolworths. Making more efficient their every day business and that's the area that, if you like, competes directly with Woolworths. Shares closed 3 cents at $11.37. Rakhal Ebeli, Ten News. Now for a look at today's weather and for the rest of the day:

Stay with Ten's Early News. After this short break - a 'Big Brother' house-mate laps up his newfound fame and fortune. You can reduce the total of your docket at BI-LO. And why? 'Cause it's cheap. It is cheaper. If you want to escape with a great book, get the '2006 Books Alive Great Read Guide'. With 50 titles, there's something for everyone, from children's books to biographies, thrillers to fantasy. They're so good, everyone will want to read them. Buy any book in the guide and receive by bestseller Monica McInerney. Get your free copy in this month's 'Australian Women's Weekly' or at participating booksellers. LIGHT-HEARTED MUSIC STEALTHY MUSIC VROOM! METAL CLATTERS With 245 kilowatts of power and all-wheel drive, the new Ford Territory Turbo eats sports cars for breakfast. Coles is listening. So of their 2,000 specials every week, And how are you today? She's all smiles. And so am I. How special is that? This program is captioned live.

This is Ten's Early News. Making headlines - Israel rejects pleas for a ceasefire strengthening its military muscle on the ground in Lebanon. Fuming muslims take to the streets in protest as international leaders struggle to reach a resolution. The Coalition increases its primary vote in a poll released on the back of the PM's leadership pledge. And $400,000 richer and smiling - Australia's new reality TV show winner, Jamie. To the financial markets now. Frank, the market cautious ahead of an expected rate rise this week? A positive start to the week Kath, but that is expected to change. We'll have more finance news later. Israel is refusing to agree to a ceasefire and despite promising to halt air-strikes, is continuing its military offensive from the sea, air and ground. As thousands of troops move into southern Lebanon, jets bombard towns and villages on the border. The United Nations fears Israeli forces will step up its assault on Lebanon before diplomacy halts the violence. Fighting in the region is now in its 20th day. Israel was supposed to stop air strikes on southern Lebanon for two days, but their jets are still active

in support of troops fighting Hezbollah militants. It did not feel as if the war had stopped more like a long, fearful pause. Village after village from which the people have been driven by fear of Israeli attack. Now they escape however they can. By mid-morning we reached a village close to the Israeli border. Mothers pleaded for lifts north. Many families had just arrived here by foot but others seemed too old, too tired to struggle any longer. A man showed us his American passport. Unbelievable what I've seen. Human beings, bodies on the street. Houses burnt down and the children - children on the ground. We drove on to the place they had just fled. This is what is left. Hezbollah killed nine Israeli soldiers here. The Israelis shelled this into rubble. In the ruins of houses we found old people trapped by the fighting. She was desperate for water. A local man, still dignified in spite of it all. We could do little but give them water and get the elderly to ambulances. The home they knew is no more. A sense of urgency is growing to end the violence in the Middle East with the US saying it will try to broker a deal for lasting peace by the end of the week. But anti-US and Israel feeling appears to be growing with chilling displays of anger across the region. Calling for the death of Israel thousands of women in Tehran dressed themselves as suicide bombers. Their show of support for Lebanon

armed with a promise to help the embattled country.

Children gathering in front of a UN building say they want the children of Lebanon to know they aren't alone. Children gathering in front of a UN building say they want the children of Lebanon to know they aren't alone. Protests have escalated since Israel's devastating attack on the southern Lebanese village city of Qana. Demonstrations also erupted in Syria, Iraq and India with warnings Israel will be punished. But there is renewed hope of a lasting ceasefire after US Secretary of State Condoleezza Rice wrapped up extensive talks. President George Bush says the US will push for a UN resolution, possibly this week. We will work with our allies

to bring about a resolution for lasting peace. The PM will attempt to win an historic fifth term in office at the next election. John Howard has ended Liberal leadership speculation for now

by agreeing to stay on as Prime Minister. I commit myself with enthusiasm and vigor responding to the wishes of my colleagues. Peter Costello has put his ambitions to one side and will remain Deputy Liberal Leader and Treasurer. It's a case of survival of the fittest for this year's 'Big Brother'. West Australian personal trainer Jamie Brooksby has gone the distance to win the most controversial series yet. If you thought the 'Big Brother' gang had a wild time in the house, just catch them in action at the finale party. $426,000 richer and still unable to keep his pants up, 23-year-old Jamie Brooksby lapped up the attention. A couple of Jamie things - The headband and the pants don't look any good like this.

Jamie beat 22-year-old Camilla Severi, the woman at the centre of the turkey-slap incident. How much of the furore are you now aware of?

Not a lot. I'm happy with everything I did in the house. The pair were neck and neck throughout the show but a certain romantic moment - the reunion of Katie and Jamie might just have tipped the balance in Jamie's favour. 2006 was without a doubt 'Big Brother's most controversial year but it also looks set to be the first to produce a housemate idol. 19-year-old Danielle Footjc premiering her debut single on the show appropriately called 'Underneath the Radar'. I'm so happy. Angela Bishop, Ten News. Mass rescue and relocation operations are under way in western India as record floods continue to spread. Although four days of torrential rains have temporarily eased, major rivers are still rising. Rescue crews are evacuating thousands of villagers many perching on roof tops to escape the water. Millions of dollars worth of crops have been destroyed while farm animals have been left to fend for themselves. Fears of a major oil spill off India's west coast this morning after a ship became stranded along the coast. The Panama vessel ran aground when it's engines failed in rough weather. its engines failed in rough weather. It's laden with more than 220 tonnes of oil and diesel. Authorities say a leak could cause an environmental disaster in the region. Local coast guards are trying to de-fuel the ship to avoid a spill. Geelong will face its must-win match against the Brisbane Lions on Saturday without key big man Cameron Mooney after the Cats accepted a one-match ban from the Match Review Panel. For the third time this season, Cameron Mooney has felt the sting of the match review panel, this time for a late spoil on Kangaroo Daniel Pratt. While the Cats have already accepted the 1-match suspension. Richmond is yet to decide if it will contest Greg Stafford's 2-week ban for a bump that KO'ed Brendon Goddard. The Tigers ruck stock further depleted, with Troy Simmonds given a week for a jumper-punch. So, too, Saint Steven Baker. Melbourne's bid for a top-2 finish has been dealt a double blow with Byron Pickett and Aaron Davey to miss the next month with torn hamstrings. It's unfortunate and we'll just both have to get ourselves fresh

and hopefully the team keeps playing good footy and, you know, be fresh for the finals. Richmond's Nathan Brown another with hamstring woes. He'll miss two weeks. A better-than-expected outcome for Geelong's Gary Ablett. He'll miss only a fortnight after being cleared of serious shoulder damage. David Adamson, Ten News. Another off-field controversy for the NRL, this time involving an incident with several Brisbane Broncos players. Halfback Brett Seymour is at the centre of the speculation. The club dissappointed he was named in media reports yesterday. We've also had a meeting with other players and contacted other people because, as I've said, we're carrying out an investigation of our own.

Queensland police are yet to receive an official complaint. Frank now with a check of finance

and as the Reserve Bank meets to discuss interest rates, more evidence of price rises? And more drama for Australian construction company Multiplex The TD Securities and Melbourne Institute monthly inflation gauge rose 0.2% over July, the second consecutive monthly rise,

taking the annual rate of inflation to 3.5%. Last week official inflation figures released by the Bureau of Stats showed inflation tracking at an annual rate of 4%. What it means is bad news for mortgage holders, the latest numbers fuelling suggestions the RBA may be forced to lift interest rates twice before the year is out. And more drama for Australian construction company Multiplex again embroiled in a war of words with Wembley Stadium's owners. It's threatened to put the disastrous project even further behind schedule.

It was hoped England's premier soccer stadium would be ready for the FA Cup final in September. But Wembley's owners say Multiplex is lagging behind and is unlikely to have the $1.8 billion project completed by the deadline. Now for a look at today's weather and for the rest of the day: Israel shrugs off talk of a ceasefire in the Middle East. The details when Ten's Early News returns. Only new Continental Flavour Bases You can stir-fry. Stir through. UPBEAT ACOUSTIC GUITAR You can simmer. Hey! Hey! Mmm! (Chuckles) Hey! You can even dip. NIGHT INSECTS CHIRRUP New Continental... ..Flavour Bases... Just look for the 'C'. Twenty years ago, this place was a dump - literally. Now it's so alive. The birds are back. The frogs are back. It's all volunteer work. We need all types of skills. Some people come once a month. Some people come once a year. Others just can't stay away. They're crazy about it. People like this are doing great work all around the State. We can always do with an extra pair of hands. Hey! # It's a living thing. # We've brought these wetlands back to life. This program is captioned live. Today - the Reserve Bank meets to discuss a widely-anticipated and widely-condemned interest rate rise. The Coalition extends its buffer in the latest news poll amid news John Howard will steer the party into the next election. Israel unleashes more attacks on southern Lebanon despite agreeing to 48-hour stoppage. And in sport - speculation over an off-field player incident causes more trouble for the Brisbane Broncos. Now for a look at today's weather and for the rest of the day: And now for another look at finance, Frank. Good morning Kath. Well, Australian stocks rose yesterday. The much hyped monthly RBA meeting is being held this morning. Some analysts are tipping an interest rate rise of 0.25% and perhaps 0.25% next month. Financial markets are already gearing up for a rise which may see official rates move to 6%. The annual inflation rate is now 4%, well above the Reserve Bank's target range of 2% to 3%. Kath, the flying kangaroo's not flying quite so high. I'll have details of job cuts shortly. High petrol prices, rising inflation and fears of interest rate hikes haven't dented the Federal Coalition's popularity. The latest Australian Newspoll shows Labor's primary vote down while the Coalitiion's is up slightly heading for next year's election. In the end, Howard and Costello will be taking on Beazley.

It is the Government's best change. John Howard has cast aside Liberal leadership speculation telling his colleagues he'll fight the next election. Peter Costello has fallen into line saying he'll remain Treasurer.

On a flying visit to Far North Queensland the PM inspected cyclone recovery efforts. Hello there! Just hours earlier, he faxed fellow Liberals telling them he would lead the Party to the next election. I commit myself with enthusiasm and vigour to responding to the wishes of my colleagues.

The school motto more than fitting. Keep on keeping on. Good advice. The Treasurer put his ambitions to one side. It is clear to me that most people, including public and colleagues, do not support a leadership transition at the current time. Mr Costello also staying put as Treasurer. It doesn't matter what I feel. That's the outcome.

With the leadership issue on the back-burner, the Government can now focus on what will be a tough election battle. A campaign has started. This is the fight I want and a fight I'm going to win. I think with the Howard-Costello team we're just about invincible. A new poll suggests

many Australians support an expansion of uranium mining. 38% of people surveyed believe there should be more than three uranium mines in operation that's up from 25% in June. A peak research body says fast-food outlets and school canteens aren't making our kids fat - parents are. 'The Australian' newspaper quotes the CSIRO as saying

parents should rethink what they're putting in their kids lunch boxes. The Organisation's Peter Clifton wants them to take more of a responsibility in the fight against childhood obesity. He says good eating habits start at home. Thousands of Israeli soldiers are gathering at the Lebanese border. It's believed they're planning one last military onslaught before diplomacy stops the violence. First, we heard them arrive overhead then we saw why they were here. Israeli jets bombing Hezbollah positions. It happened at least twice right in front of us. Now the PM of Israel, Ehud Olmert, offered this aerial ceasefire and doing it has put him under intense political pressure,

but it always allowed for the jets to keep flying. Behind the shelling, an enormous force is gathering. This is the new front. The focus of a ground campaign Israel's defence minister said would be expanded and deepened. But here on the border it is a fight.

Hezbollah still respond. This is a good example they can hit back and hurt the Israelis. There is a view here that this is one last Israeli push. One last onslaught on Hezbollah before diplomacy stops the fighting.

One last chance to do what this war was all about. And the BBC's Jeremy Bowen is in Israel following the peace-talks.

They are still working and pressing hard for a ceasefire by the end of the week. There are huge political realities here.

Condoleezza Rice was meant to be coming here but because of the killings her trip is cancelled. Gunmen in military clothing have kidnapped at least 26 staff and customers from two businesses in Baghdad.

Police say they arrived in a convoy, stormed a shop and an office building and bundled their captives away. Earlier, Iraqi soldiers arrested at least 30 suspects and seized a variety of weapons in raids on towns outside the capital. The raids were sparked by fears o f renewed sectarian violence. The Brisbane Broncos are the latest NRL side to be embroiled

in an off-field player controversy. Media reports placing halfback Brett Seymour at the centre of an alleged incident, early yesterday morning.

Queensland police say they are aware of an incident at this popular Brisbane watering hole, but no complaint has yet been made. Yesterday, Broncos halfback Brett Seymour

met with senior club officials. We also had a meeting with other players and contacted other people

because, as I said, we're carrying out a complete investigation of our own. It's an unwanted distraction for the club, but with three losses in a row, don't mention the 'S' word. It's not a form slump. The Tigers have stitched up dazzling rookie Chris Lawrence for the next three years, though the 17-year-old has no time to celebrate. He's doing his trial HSC exams this week. And Eels hard-man Fuifui Moimoi faces a suspension of between seven and ten weeks after he was charged for a grade three reckless high tackle. Anthony Goodridge, Ten News. Melbourne's bid for a top two finish has been dealt a double blow with Aaron Davey and Byron Pickett ruled out for a month with torn hamstrings. A hamstring injury has also sidelined Richmond forward Nathan Brown for two weeks, while Geelong's Gary Ablett will miss a fortnight with a shoulder injury. Meanwhile, Cameron Mooney has been given a one-match suspension for charging. Richmond ruckman Greg Stafford has copped two weeks for this bump while team-mate Troy Simmonds has been given a week for a jumper punch so, too, Saint Steven Baker. Wallabies coach John Connolly has hinted at resting key players from the end of season tour of Europe.

Up to half a dozen players have been ear-marked for a break ahead of next year's World Cup.

Captain George Gregan drawing most of the attention. George was actually probably number 4 or 5 on the list, and he's been plucked from 5 up to 1 and made a headline out of so I don't know where it came from. There were 2 or 3 other guys that we'd spoke of ahead of that. Gregan's possible omission will give the Wallabies a chance to blood a number of new players

including Australia under-21 half-back Josh Holmes. Finance now with Frank. Qantas is not flying so high today with the flying kangaroo announcing a new round of job cuts. Up to 840 information technology employees will be out of work when Qantas moves its system maintenance off-shore later this year. The airline has narrowed its supplier options down to two -

Satyam Computer Services and Tata Consultancy services. It's yet to decide if the work will be shared. But pay rates at no-frills Aussie air carrier Jetstar have taken off. Cabin crew have agreed on a 9% rise over three years, dating back to July 1.

The Flight Attendants Association has endorsed the EBA amendment. Now let's take a brief look at some of the other stories

making business news.

Now for a look at today's weather and for the rest of the day:

Let's have a look at the newspaper headlines -

Stay with Ten's Early News. More news after this short break.

ON THE SATELLITE, A COLD FRONT STILL MOVING ACROSS THE REGION, BRINGING COLD - WINDY WEATHER - AND A FEW SHOWERS. IN THE NATIONA'S CAPITAL, EARLY FOG AND FROST, CLEARING TO A FINE SUNNY DAY - AND A TOP OF 12 DEGREES. FINE IN SYDNEY, SHOWERS IN MELBOURNE. A FINE PARTLY CLOUDY DAY, EXPECTED IN DUBBO. A WINDY ONE IN ORANGE. FINE AND MOSTLY SUNNY, IN WOLLONGONG. 15 THE TOP IN BEGA. THE MERCURY HEADED FOR 11 IN BOTH BOWRAL, AND GOULBURN. A LITTLE WARMER IN BATHURST. A PARTLY CLOUDY DAY IN PARKES, SUNNY IN MUDGE, AND COOMA. RAIN CLEARING IN NOWRA. TO THE OUTLOOK NOW - FOR CANBERRA AND SURROUNDS.... AND A FINE DAY TOMORROW, BEFORE SHOWERS THROUGH TO

SATURDAY. THE WEATHER SET TO CLEAR ON SUNDAY - FINE CONDITIONS FOR MONDAY. (NO SCRIPT NEEDED HERE.)

This program is captioned live. This is Ten's Early News. Making headlines - Israel rejects pleas for a ceasefire strengthening its military muscle on the ground in Lebanon. Fuming Muslims take to the streets in protest as international leaders struggle to reach a resolution.

The Coalition increases its primary vote in a poll released on the back of the PM's leadership pledge. And $400,000 richer and smiling - Australia's new reality TV show winner, Jamie. Israel is refusing to agree to a ceasefire and despite promising to halt air-strikes, is continuing its military offensive from the sea, air and ground.

As thousands of troops move into southern Lebanon, jets bombard towns and villages on the border. The United Nations fears Israeli forces will step up its assault on Lebanon before diplomacy halts the violence. Fighting in the region is now in its 20th day. Police in the northern Israeli city of Haifa say they've prevented a major suicide bombing. Authorities reportedly received a tip-off

about a car carrying explosives.

They sealed off streets leading into the city as they intercepted a vehicle and arrested two men.

In recent weeks

Haifa has been pounded by a barrage of rocket attacks from southern Lebanon. Israel was supposed to stop air strikes on southern Lebanon for two days, but their jets are still active in support of troops fighting Hezbollah militants.

The truce was meant to let humanitarian relief through but aid workers say conditions are still too dangerous. It did not feel as if the war had stopped more like a long, fearful pause. Village after village from which the people have been driven by fear of Israeli attack. Now they escape however they can. By mid-morning we reached a village close to the Israeli border. Mothers pleaded for lifts north. Many families had just arrived here by foot but others seemed too old, too tired to struggle any longer. A man showed us his American passport. but others seemed too old, too tired to struggle any longer. A man showed us his American passport. Unbelievable what I've seen.

Human beings, bodies on the street. Houses burnt down and the children - children on the ground.

We drove on to the place they had just fled. This is what is left.

Hezbollah killed nine Israeli soldiers here. The Israelis shelled this into rubble. In the ruins of houses we found old people trapped by the fighting. She was desperate for water. A local man, still dignified in spite of it all. We could do little but give them water and get the elderly to ambulances. The home they knew is no more. A sense of urgency is growing to end the violence in the Middle East with the US saying it will try to broker a deal for lasting peace by the end of the week. But anti-US and Israel feeling appears to be growing with chilling displays of anger across the region. Calling for the death of Israel thousands of women in Tehran dressed themselves as suicide bombers.

Their show of support for Lebanon armed with a promise to help the embattled country. Children gathering in front of a UN building say they want the children of Lebanon to know they aren't alone. Protests have escalated since Israel's devastating attack on the southern Lebanese village city of Qana. Demonstrations also erupted in Syria, Iraq and India

with warnings Israel will be punished. But there is renewed hope of a lasting ceasefire after US Secretary of State Condoleezza Rice

wrapped up extensive talks. President George Bush says the US will push for a UN resolution, possibly this week. We will work with our allies to bring about a resolution for lasting peace.

Nicole Strahan, Ten News. The PM will attempt to win an historic fifth term in office at the next election. John Howard has ended Liberal leadership speculation for now by agreeing to stay on as Prime Minister.

I commit myself with enthusiasm and vigor responding to the wishes of my colleagues. Peter Costello has put his ambitions to one side

and will remain Deputy Liberal Leader and Treasurer.

Sydney's been told to think big as it plans to expand light rail services across the city. There's a proposal to extend the tram service from Central Station to Circular Quay but some experts say this isn't enough to improve public transport recommending the network fan out to Bondi and the North Shore. A transport summit will consider the option this week. It's a case of survival of the fittest for this year's 'Big Brother'. West Australian personal trainer Jamie Brooksby has gone the distance to win the most controversial series yet. If you thought the 'Big Brother' gang had a wild time in the house,

just catch them in action at the finale party. $426,000 richer and still unable to keep his pants up, 23-year-old Jamie Brooksby lapped up the attention.

A couple of Jamie things we need to have a look at. The headband and the pants don't look any good like this. Jamie beat 22-year-old Camilla Severi, the woman at the centre of the turkey-slap incident.

How much of the furore are you now aware of? Not a lot. I'm happy with everything I did in the house. The pair were neck and neck throughout the show but a certain romantic moment - the reunion of Katie and Jamie might just have tipped the balance in Jamie's favour.

2006 was without a doubt 'Big Brother's most controversial year but it also looks set to be the first to produce a housemate idol.

19-year-old Danielle Foot

premiering her debut single on the show appropriately called 'Underneath the Radar'.

I'm so happy. Angela Bishop, Ten News. Geelong will face its must-win match against the Brisbane Lions on Saturday without key big man Cameron Mooney after the Cats accepted a one-match ban from the Match Review Panel.

For the third time this season, Cameron Mooney has felt the sting of the match review panel, this time for a late spoil on Kangaroo Daniel Pratt.

While the Cats have already accepted the 1-match suspension. Richmond is yet to decide if it will contest Greg Stafford's 2-week ban for a bump that KO'ed Brendon Goddard. The Tigers ruck stock further depleted,

with Troy Simmonds given a week for a jumper-punch. So, too, Saint Steven Baker. Melbourne's bid for a top-2 finish has been dealt a double blow

with Byron Pickett and Aaron Davey to miss the next month with torn hamstrings. It's unfortunate and we'll just both have to get ourselves fresh

and hopefully the team keeps playing good footy and, you know, be fresh for the finals. Richmond's Nathan Brown another with hamstring woes. He'll miss two weeks. A better-than-expected outcome for Geelong's Gary Ablett.

He'll miss only a fortnight after being cleared of serious shoulder damage. David Adamson, Ten News. Another off-field controversy for the NRL, this time involving an incident with several Brisbane Broncos players. Halfback Brett Seymour is at the centre of the speculation. The club dissappointed he was named in media reports yesterday. We've also had a meeting with other players and contacted other people

because, as I've said, we're carrying out an investigation of our own.

Queensland police are yet to receive an official complaint. Frank now with a check of finance. A positive start to the week Kath, but that is expected to change.

The housing market is feeling the full force of spiraling petrol prices

and interest rate rises with new homes sales continuing to drop. Australia's peak building industry body says the number of new home sales hit a 17-month low in June. It's the third monthly drop in a row. The Housing Industry Association is warning another interest rate rise

could have a disastrous impact on the industry. More than 100 green-thumbs have been cutting each other's grass to win the annual lawn-mower championship race in England. The 33-year-old event has contestants competing for 12 hours and following an afternoon start.

The enthusiasts drive throughout the night. The team completing the most laps during the allotted time wins. This year it was Tim Ticehurst after 17 long years trying. It might be a good excuse to retire now that I've won it. All the excitement a little too much for some. Now for a look at today's weather and for the rest of the day:

A quick recap of stories making headlines. And the Reserve Bank will, in just a few hours time, consider what economists say is an inevitable interest rate rise.

The Prime Minister will lead the coalition into the next election bouyed with confidence from a new poll showing a strengthened primary vote. And Israel rejects calls for a ceasefire in the coming days as more troops move in on southern Lebanon.

And that's all for this edition of Ten's Early News. I'm Kath Robinson, 'bye for now. And I'm Frank Coletta. Join us again tomorrow for a special look at what any rate rise will mean for you. Good morning. Supertext Captions by the Australian Caption Centre. www.auscap.com.au