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(generated from captions) This program is captioned live. arrested in Iraq Al-Qa'ida's number two leader of a chilling recruitment video. hours after the release accused of Islam bashing The Treasurer for muslims to learn English. for backing comments by the PM Australia's peacekeeping commitment Our Foreign Minister to affirm to East Timor

at high-level talks in Dili. And in sport - an emotional farewell from the game Andre Agassi makes of the US Open. after being knocked out The weather briefly for Monday -

at finance, here's Kath Robinson. And now with our first look are expected to open higher today The Australian stocks

US payrolls figures on Friday night. after better-than-expected

has been arrested in Iraq. Al-Qa'ida's number two leader of a recruitment video, It follows the release urging Americans to convert to Islam. to the terrorist network. This latest arrest is a major blow was captured a few days ago Hamad al-Saedi the worst attacks on Iraqi civilians. and is accused of planning some of a crushing blow to the organisation. Authorities describing his capture as is accused The al-Qa'ida leader of this Shia shrine in Samarra, of ordering the bombing an increase in sectarian violence. the February attack blamed for

the release The arrest follows a recruitment video, of what is essentially to convert to Islam. al-Qa'ida urging Americans a US national wanted by the FBI. The new video even features arrived over the Internet, The footage of the September 11 attacks. just a week before the anniversary 14 men are in police custody In the UK, raids in London and East Sussex. after a series of anti-terrorism

followed months of surveillance Officers say the arrests alleged plot but are not linked to last month's or the July the 7th bombings. to blow up transatlantic airliners searches in various locations Officers have been carrying out

and an Islamic school. including a restaurant has again been accused The Howard Government Australian Muslims. of unfairly targeting on Islamic leaders The Treasurer has called of radicals in their community. to speak out against a minority so many other things in this society I'm worried about seems completely oblivious to that our Treasurer seem to have nothing better to do and he and the PM than gratuitous Islam-bashing. are at risk from radical extremists. The Treasurer says young Muslims begins talks in Timor today Foreign Minister, Alexander Downer, in the midst of a security crisis. with the nation top of the agenda Australia's peacekeeping commitment of a rebel leader in Dili. following the jail break

when talks begin in Dili today. Mr Downer will face tough questioning a fresh wave of violence. The fledgling nation now facing 57 inmates, Alfredo Reinado, including rebel leader after Wednesday's jail break. still on the loose It's disturbing that they still

haven't tracked them down but they're doing they're best. refusing to shoulder the blame The Foreign Minister more Aussie troops at the prison. for not stationing must accept responsibility The East Timorese

for they're own people, and they're own behaviour. they're own decisions

could destabilise the region, Fearing the escapees its security along the border. Jakarta has stepped up desperately to reign them in. International forces now working be the safety of the population The priorities established will and the return of inmates to jail. Rakhal Ebeli, Ten News. need an extra $2.4 billon in funding Australia's public schools to educate students properly. by a multi-government task force, A report, completed needs to be spent has found an extra $835 on every primary school student in high school each year. and more than $1,300 on every child Without the extra funding minimum education goals schools will fail to reach and retention rates. in literacy, numeracy

on its uranium enrichment activities. Iran says it is prepared to negotiate UN Secretary General Koffi Annan in Tehran has met with Iran's Foreign Minister backed by UN member countries. to discuss a number of proposals deadline to stop nuclear activities. The country failed to meet the August

remains more reserved on the issue, President Ahmadinejad will continue its nuclear program. he says for the moment the country believed to be siblings, Six children, in the United States. have been killed in a house fire aged from 3 to 16 years old - The two boys and four girls - were unable to escape the flames their third storey apartment. that engulfed kids escaped with serious injuries. The children's mother and three other is not yet known The exact cause of the blaze had been living without power, but neighbours say the family using candles to light the home. professional tournament, Andre Agassi has played his last by Germany's Benjamin Backer beaten in four sets in the third round of the US Open. breaking down in tears The former world number one on an incredible 21 year career, as the curtain closed thanking the crowd for their support.

through to the fourth round Meantime, Lleyton Hewitt has advanced over Serbian Novak Djocovik. with an easy win begins on Friday night at the MCG. The AFL finals series And for the first time, the top four places on the ladder. four non-Victorian teams fill and one boardroom meeting to decide 22 rounds down, 176 matches, will do battle where the final eight teams for the AFL's Holy Grail. and which games are on where We now where each team's finished with the outcome. and we're pretty pleased begins on Friday night, Week one of the '06 finals in elimination final two. the Saints and Demons Saturday afternoon the red-hot Freo Dockers the Crows host at AAMI Stadium. That night battle it out in the west. the Eagles and Swans and we've come off a big win, West Coast have come off a big win Freo, Adelaide have come off a big win, so just speaking for the top four, pretty even now, you know, I mean, everyone goes in because they're all in good form. And on Sunday, clash, the Magpies and Bulldogs the loser's season over. You need a bit of form and you some luck and certainly it's all about timing, and I wouldn't like to hazard a guess who's going to, you know, take out the eventual prize. Channel Ten will telecast the entire finals series, as well as the Brownlow Medal. Tim Hodges, Ten News. The NRL finals equation is sorted after Brisbane's big win over the Warriors at Suncorp Stadium yesterday. The Broncos were again in superb touch in front of a massive Brisbane crowd, securing third spot and a home semifinal against the Dragons. The Bulldogs returned to the winners list yesterday, setting up a date with the Raiders. Manly slipped to fifth and will travel to Newcastle. Minor premiers Melbourne will host the Eels. Finance now with Kath and Alinta told to keep its hands off APT? The takeover panel has effectively stopped the energy giant from soaking up any more APT units without making a full takeover bid.

It ruled that the company's 10.2% APT acquisition had arose from unacceptable circumstances and that its raid for 19% stake was simply too much. Alinta says it will appeal the panel decision. A merger proposal still hangs over the two companies. Now to a State of Origin battle with a difference. New South Wales is facing off against Queensland in the fight for skilled workers. Both states have launched costly advertising campaigns and it doesn't end there, because the Sunshine State now has Victoria in its sights. Just like the football series is State versus State and mates versus mate, but in this case there is no jersey or shield just the battle for skilled workers. This is a friendly competition. Friendly? Try telling that to the Queenslanders. I make no apologies for trying to recruit skilled labor from NSW. The competition just as fierce in the recruitment industry. I'd say we're kicking the ball deep into NSW territory. And while Sydney is Australia's financial capital Brisbane is all about big industry. Even the salaries are improving. It's like engineering - you'd get paid more in Queensland

than you would in NSW. Add to that a cheaper cost of living and you've scored a Origin-winning try. We do offer that, plus you pay less taxes. We are a very friendly environment. But NSW isn't giving up the fight that easily.

We are out there to find more. It helps our economy and creates jobs and investment. Both States have held expos to show their wares. Queensland recruiting 1,000 workers. Based on that success, yes, we'll go into Melbourne. Thankfully, it's neutral territory. Looking at today's forecast around Australia - Now for a look at the Monday's newspapers - Stay with Ten's Early News.

This program is captioned live. Welcome back to Ten's Early News. This morning -

Muslim fury - the Treasurer criticised for telling supporters of Islam to renounce terrorism. Claims poker machines are a haven for so-called dirty money and potentially terrorist groups. The Govenment's $2 billion Medibank Private dilemma. Will it sell or float the fund? And families mourn Britain's largest loss of life in Afghanistan. 14 soldiers dead. Finance now with Kath and Australian stocks expected to open higher today? The Australian stocks are expected to open higher today after better than expected US payrolls figures on Friday night.

The Federal Government has warned Australia is vulnerable to terror attacks from home-grown Muslim extremists. One community leader labelling it another case of Islam bashing. Just days after the Prime Minister called on all Muslim migrants to integrate and learn English, the Treasurer has urged Islamic leaders

to crack down on those who incite hate. I think there is a minority in the Islamic community that has been radicalised, and seeks to prey upon young people, in particular. The Islamic community has now had enough, reacting angrily. I'm worried about so many other things in this society that our Treasurer seems completely oblivious to and he and the PM seem to have nothing better to do than gratuitous Islam-bashing. The Treasurer is worried about a minority of home-grown extremists. We've seen, in this country, that would-be terrorists can be born in this country,

can have names, you know, like Tom, Dick and Harry. The Attorney-General says while there's no specific information about a terrorist attack here, Australia remains vulnerable. I think we've become very complacent about these matters because we've not had, on our own soil, terrorist attacks. Murray McCloskey, Ten News. Al-Qa'ida's number two leader has been arrested in Iraq. Hamad al-Saedi was captured a few days ago and is accused of planning some of the country's worst attacks on civilians. Officials describing his arrest as a severe blow to the group. It coincides with the release of a recruitment video with al-Qa'ida urging Americans to convert to Islam. The footage features a US national wanted by the FBI. There are calls for the New South Wales Government to tighten the money trail from poker machines. Federal authorities are reportedly concerned at the ease by which criminals can use the machines to launder money. Because of a loophole they can put money through the machines and collect it as a cheque. According to News Limited papers, the process legitimises the cash which could have been obtained through illegitimate means, such as armed robberies. The paper says no ID is required. It says the method could be used to fund terrorist groups. The New South Wales Opposition says child killers should be supervised around the clock if they're living in the community. The comments follow the arrest of one of Australia's most notorious criminals in Sydney. Murderer John Lewthwaite is back behind bars after allegedly breaching two conditions of his lifelong parole.

The 50-year-old allegedly caught nude sunbathing with gay men at a Sydney beach last month. Lewthwaite spent 25 years in jail for the stabbing murder of 5-year-old Nicole Hanns in 1974. He's been in the community for seven years since. Tributes have been paid to the 14 British military personnel killed when their plane crashed in southern Afghanistan yesterday. On board 12 RAF personnel from the same air base. United in grief through the loss of friends and colleagues.

At the Scottish air base where the Nimrod crew were based there's been a steady flow of people paying their last respects to the 12 men of 120 Squadron. They were good friends. Their families were good friends. Many I've known for a number of years,

some I've known more recently. I can say no more, really. They were great guys. The Nimrod has been in service nearly 30 years and it's believed a technical problem caused the crash. The RAF says it may be old but it is a safe aircraft.

The Nimrod has a very good serviceability record. I'm confident the Nimord has a good track record. As the Nimrods wait to fly again, the priority is to comfort the families of those that died. Four people have died in building collapses in the flooded Pakistani city of Lahore. Three of them children who were crushed to death by the roof

while their parents in another room survived. 20 others were injured as heavy monsoon rains continue to flood streets and disrupt power supplies. Forecasters say the rising waters show no signs of slowing. A teary-eyed Andre Agassi has played his last professional match after being knocked out of the third round of the US Open.

Meanwhile, good news for Australia with Lleyton Hewitt cruising into the fourth round.

Week one of the AFL finals series has been set

after the completion of the home and away season. St Kilda and the Demons kick off the premiership chase in the elimination final on Friday night. On Saturday afternoon Adelaide plays Fremantle in the second qualifying final at AAMI Stadium. In the first qualifying final, the Eagles host the Swans at Subiaco on Saturday night.

Collingwood and the Bulldogs do battle on Sunday - the loser eliminated. All of the finals are live and exclusive here on Channel Ten. Brisbane will head into the NRL finals series as one of the leading title contenders after another impressive win yesterday. The Broncos securing a home semifinal against the Dragons. They came to farewell Shane Webcke, more than 47,000 in all,

and they were treated to a vintage Broncos display. COMMENTATORS: He gets a lovely ball to Perry! The best defensive side in the competition showing they've got a few points in them as well, Justin Hodges with a double on the eve of a home semifinal against the Dragons. We're just executing a lot better at the moment and everyone's got that little bit of confidence back and they're playing for one another. The Panthers were playing for coach Johnny Lang, and for 40 minutes things were going to plan. Super try from Penrith!

Rhys Wesser broke the club try-scoring record after the break, but the Bulldogs had Hazem El Masri kicking goals like this.

Five tries apiece, goal-kicking the difference. He is a genius, Hazem El Masri! Those couple of kicks from this side of the grandstand were just outrageous. And a try-fest at Leichhardt, the Tigers crossing nine times to further demoralise the hapless Bunnies. Paul Cochrane, Ten News. Finance now with Kath and private equity firms already showing interest in Medibank Private? Yeah Bill, Kahlberg Kravis Roberts - the US company eyeing off Coles Myer is one of several reportedly interested in the fund. The Treasurer is isn't surprised, but has made it clear he favours a public float in a deal worth up to $2-billion.

The Treasurer says Medibank's 3 million policy holders should be given the chance to own part of fund. Fierce new petrol station ownership restrictions will be debated in Federal Parliament this week. The Family First Party is concerned about the monopoly supermarkets and oil giants hold over the industry. It says amendments are needed to prevent companies from owning or operating more than a quarter of the nation's petrol stations. Up to 70% of the retail fuel market is controlled by Shell-Coles and Caltex-Woolworths. Now for a look at the national weather - A grand master bows out of the world tennis spotlight. We'll have Andre Agassi's last game when we return.

This program is captioned live. Al-Qa'ida's number two leader arrested in Iraq hours after the release of a chilling recruitment video. The Treasurer accused of Islam bashing for backing comments by the PM for Muslims to learn English. Our Foreign Minister to affirm Australia's peacekeeping commitment to East Timor at high-level talks in Dili. And in sport - Andre Agassi makes an emotional farewell from the game after being knocked out of the US Open. The weather briefly for Monday - And now with our first look at finance, here's Kath Robinson.

The Australian stocks are expected to open higher today after better-than-expected US payrolls figures on Friday night.

In the UK, anti-terrorism officers

are searching 17 addresses in and around London. They've also resumed their search of a large Islamic school in the country's south. No one has been arrested but detectives have confirmed that a lake in the school grounds will be searched.

It comes after months of surveillance led to 14 people being arrested in a series of raids over the weekend. British police say those arrests were not linked to last month's alleged plot to blow up transatlantic airliners or the 2005 London bombings.

The Federal Government has warned Australia is vulnerable to terror attacks from home-grown Muslim extremists. One community leader labelling it another case of Islam bashing.

Just days after the Prime Minister called on all Muslim migrants to integrate and learn English, the Treasurer has urged Islamic leaders

to crack down on those who incite hate. I think there is a minority in the Islamic community

that has been radicalised, and seeks to prey upon young people, in particular. The Islamic community has now had enough, reacting angrily. I'm worried about so many other things in this society that our Treasurer seems completely oblivious to and he and the PM seem to have nothing better to do than gratuitous Islam-bashing. The Treasurer is worried about a minority of home-grown extremists. We've seen, in this country, that

would-be terrorists can be born in this country, can have names, you know, like Tom, Dick and Harry. The Attorney-General says while there's no specific information

about a terrorist attack here, Australia remains vulnerable. I think we've become very complacent about these matters because we've not had, on our own soil, terrorist attacks.

Murray McCloskey, Ten News. Foreign Minister, Alexander Downer, begins talks in Timor today with the nation in the midst of a security crisis. Australia's peacekeeping commitment top of the agenda

following the jail break of a rebel leader in Dili. Mr Downer will face tough questioning when talks begin in Dili today. The fledgling nation now facing a fresh wave of violence. 57 inmates,

including rebel leader Alfredo Reinado, still on the loose after Wednesday's jail break. It's disturbing that they still haven't tracked them down but they're doing they're best. The Foreign Minister refusing to shoulder the blame more Aussie troops at the prison. for not stationing must accept responsibility The East Timorese for they're own people, and they're own behaviour. they're own decisions could destabilise the region, Fearing the escapees

its security along the border. Jakarta has stepped up desperately to reign them in. International forces now working be the safety of the population The priorities established will and the return of inmates to jail. Rakhal Ebeli, Ten News. used by a human cannonball, The equipment last Friday, injured in an Adelaide stunt has been cleared of defects.

the machine, SafeWork South Australia says used by Stephanie Smith, when she was fired into the air. was operating properly has undergone spinal surgery The American for a cracked vertebrae

landing airbag and hit the ground. sustained when she overshot her is not paralysing. The 22-year-old's injury

on Western Australian roads There'll be a larger police presence as of today.

of her favourite annual events - The Queen has turned out for one

the Highland Games in Scotland.

by other members of the royal family She was joined for a display by local bagpipers. a number of traditional events The games feature test their strength. where competitors than the caber toss. And no event tests them more

to flip all the way over. The aim is to get the wooden pole Sometimes it doesn't quite make it.

begins on Friday night at the MCG. The AFL finals series

is sorted after Brisbane's big win The NRL finals equation at Suncorp Stadium yesterday. over the Warriors in superb touch The Broncos were again in front of a massive Brisbane crowd, home semifinal against the Dragons. securing third spot and a to the winners list yesterday, The Bulldogs returned setting up a date with the Raiders. and will travel to Newcastle. Manly slipped to fifth will host the Eels. Minor premiers Melbourne begins on Friday night at the MCG. The AFL finals series

And for the first time,

the top four places on the ladder. four non-Victorian teams fill and one boardroom meeting to decide 22 rounds down, 176 matches, will do battle where the final eight teams for the AFL's Holy Grail. and which games are on where We now where each team's finished with the outcome. and we're pretty pleased

begins on Friday night, Week one of the '06 finals

in elimination final two. the Saints and Demons Saturday afternoon the red-hot Freo Dockers the Crows host at AAMI Stadium. That night battle it out in the west. the Eagles and Swans and we've come off a big win, West Coast have come off a big win Freo, Adelaide have come off a big win, so just speaking for the top four, pretty even now, you know, I mean, everyone goes in because they're all in good form. And on Sunday, clash, the Magpies and Bulldogs

the loser's season over. and you some luck You need a bit of form and certainly it's all about timing, hazard a guess and I wouldn't like to take out the eventual prize. who's going to, you know, the entire finals series, Channel Ten will telecast as well as the Brownlow Medal.

Tim Hodges, Ten News. is facing off against Queensland New South Wales in the fight for skilled workers.

Just like the football series and mate versus mate, it's State versus State

there is no jersey or shield but in this case just the battle for skilled workers. This is a friendly competition. Friendly? to the Queenslanders. Try telling that to recruit skilled labor from NSW. I make no apologies for trying

in the recruitment industry. The competition just as fierce

deep into NSW territory. is Australia's financial capital And while Sydney Brisbane is all about big industry. Even the salaries are improving. you'd get paid more in Queensland It's like engineering -

than you would in NSW. Add to that a cheaper cost of living a Origin-winning try. and you've scored plus you pay less taxes. We do offer that,

We are a very friendly environment.

that easily. But NSW isn't giving up the fight We are out there to find more. and creates jobs and investment. It helps our economy to show their wares. Both States have held expos Queensland recruiting 1,000 workers. we'll go into Melbourne. Based on that success, yes,

Thankfully, it's neutral territory. And good news for mortgagees RBA's board meeting ahead of tomorrow's to remain steady. with rates expected Even better news - before the end of the year the odds of a quarter point rise has fallen fell to below 50% in mid August. It had been a 98% certainty and a slowing US economy But after weak consumer confidence

the probability has been scaled back.

around Australia - Looking at today's forecast

at the Monday's newspapers - Now for a look

Stay with Ten's Early News.

This program is captioned live. This morning - Welcome back to Ten's Early News. Muslim fury - the Treasurer criticised to renounce terrorism. for telling supporters of Islam

are a haven for so-called dirty money Claims poker machines

and potentially terrorist groups. Medibank Private dilemma. The Govenment's $2 billion Will it sell or float the fund? Britain's largest loss of life And families mourn in Afghanistan. 14 soldiers dead. has again been accused The Howard Government Australian Muslims. of unfairly targeting on Islamic leaders The Treasurer has called of radicals in their community. to speak out against a minority

so many other things in this society I'm worried about seems completely oblivious to that our Treasurer

seem to have nothing better to do and he and the PM than gratuitous Islam-bashing. are at risk from radical extremists. The Treasurer says young Muslims has been arrested in Iraq. Al-Qa'ida's number two leader It follows the release of a recruitment video, urging Americans to convert to Islam.

This latest arrest is a major blow to the terrorist network. Hamad al-Saedi was captured a few days ago and is accused of planning some of the worst attacks on Iraqi civilians. Authorities describing his capture as a crushing blow to the organisation.

The al-Qa'ida leader is accused of ordering the bombing of this Shia shrine in Samarra, the February attack blamed for an increase in sectarian violence. The arrest follows the release

of what is essentially a recruitment video, al-Qa'ida urging Americans to convert to Islam. The new video even features a US national wanted by the FBI.

The footage arrived over the Internet, just a week before the anniversary of the September 11 attacks. There are calls for the New South Wales Government to tighten the money trail from poker machines. Federal authorities are reportedly concerned

at the ease by which criminals can use the machines to launder money. Because of a loophole they can put money through the machines and collect it as a cheque. According to News Limited papers, the process legitimises the cash which could have been obtained through illegitimate means,

such as armed robberies. The paper says no ID is required. It says the method could be used to fund terrorist groups.

Budget airline Jetstar will retract an embarrassing email which accuses its pilots of being among the worst in the country at obeying air traffic instructions. The email, quoted in the 'Australian' newspaper, suggested the pilots' altitude instructions and restrictions left a lot to be desired. It also slammed their ability to follow radio procedures when arriving at and departing from airports.

Management says the email's authors had made some assumptions in their desire to urge pilots to improve. Tributes have been paid to the 14 British military personnel killed when their plane crashed in southern Afghanistan yesterday. On board, 12 RAF personnel from the same air base. United in grief through the loss of friends and colleagues.

At the Scottish air base where the Nimrod crew were based there's been a steady flow of people paying their last respects to the 12 men of 120 Squadron. They were good friends. Their families were good friends.

Many I've known for a number of years, some I've known more recently. I can say no more, really. They were great guys.

The Nimrod has been in service nearly 30 years and it's believed a technical problem caused the crash. The RAF says it may be old but it is a safe aircraft. The Nimrod has a very good serviceability record. I'm confident the Nimord has a good track record. As the Nimrods wait to fly again, the priority is to comfort the families of those that died.

Iran says it is prepared to negotiate on its uranium enrichment activities. UN Secretary General Koffi Annan has met with Iran's Foreign Minister in Tehran to discuss a number of proposals backed by UN member countries. The country failed to meet the August deadline to stop nuclear activities.

Week one of the AFL finals series has been set after the completion of the home and away season. St Kilda and the Demons kick off the premiership chase in the elimination final on Friday night. On Saturday afternoon Adelaide plays Fremantle in the second qualifying final at AAMI Stadium. In the first qualifying final,

the Eagles host the Swans at Subiaco on Saturday night.

Collingwood and the Bulldogs do battle on Sunday - the loser eliminated. All of the finals are live and exclusive here on Channel Ten. Brisbane will head into the NRL finals series as one of the leading title contenders after another impressive win yesterday. The Broncos securing a home semifinal against the Dragons. They came to farewell Shane Webcke, more than 47,000 in all,

and they were treated to a vintage Broncos display. COMMENTATORS: He gets a lovely ball to Perry! The best defensive side in the competition showing

they've got a few points in them as well,

Justin Hodges with a double on the eve of a home semifinal against the Dragons. We're just executing a lot better at the moment and everyone's got that little bit of confidence back and they're playing for one another. The Panthers were playing for coach Johnny Lang,

and for 40 minutes things were going to plan. Super try from Penrith!

Rhys Wesser broke the club try-scoring record after the break, but the Bulldogs had Hazem El Masri kicking goals like this. Five tries apiece, goal-kicking the difference. He is a genius, Hazem El Masri! Those couple of kicks from this side of the grandstand were just outrageous. And a try-fest at Leichhardt, the Tigers crossing nine times

to further demoralise the hapless Bunnies. Paul Cochrane, Ten News. Andre Agassi has played his last professional tournament, beaten in four sets by Germany's Benjamin Backer in the third round of the US Open. The former world number one breaking down in tears as the curtain closed on an incredible 21 year career, thanking the crowd for their support.

Meantime, Lleyton Hewitt has advanced through to the fourth round with an easy win over Serbian Novak Djocovik. Finance now with Kath

Kahlberg Kravis Roberts - is one of several reportedly interested in the fund. The Treasurer is isn't surprised,

but has made it clear he favours a public float

in a deal worth up to $2-billion.

Now for a look at the national weather -

A quick recap of the morning's top stories. Al-Qa'ida's number two leader arrested in Iraq hours after the release of a chilling recruitment video. The Treasurer accused of Islam bashing for backing comments by the PM for Muslims to learn English. And the Government supporting a float of Medibank Private despite reported interest in the fund from several private equity groups.

That's it for Ten Early News. I'm Bill Woods, bye for now. And I'm Kath Robinson. Good morning. Supertext Captions by the Australian Caption Centre. www.auscap.com.au