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(generated from captions) This program is captioned live. Good morning. I'm Bill Woods. You're watching Ten's Early News. And I'm Kellie Morgan. Wednesday morning - rate decision. Our top stories this official interest rates to 6.5%. The Reserve Bank expected to lift Australians targeted - up in the latest East Timor unrest. our soldiers on patrol in Dili caught More time needed - three days to free six miners authorities say it will take at least

of Utah. trapped in the American state

And let the battle begin -

the department store fashion wars David Jones kicks off with a glamorous show in Sydney. movement on Wall Street this morning? A look at the markets now and some That's right, Bill. on Wall Street There's been quite a bit of movement over the past few hours with the Federal Reserve announcing for the ninth consecutive time. interest rates would remain steady

When I come back - the Aussie dollar if interest rates are lifted today. and where it will head interest rates by 0.25% this morning. The Reserve Bank is tipped to raise And there's concern heartache before the year is out. home owners could be in for more revealed at 9:30 this morning. The Reserve Bank's decision will be from 6.25% to 6.5%. Most experts predicting a rise that rates will go up I wouldn't say it's a dead certainty in that direction. but the odds would point of interest rates rising Major banks say there's an 80% chance for home owners later in the year - and there's unlikely to be any relief for after the federal election another rate rise tipped mortgage rate to 8.5%. that could bring the standard in the Australian economy We have seen a pick up over the last six months or so, for retail sales, and even the more recent figures

consumer and business confidence, building approvals, that things are fairly robust. they all suggest If interest rates hit 6.5%, highest rates since November 1996. Australians will be facing the rates are still comparatively low. But the Prime Minister says On average, are five percentage points lower interest rates on a housing loan now housing interest rate was than what the average under the Keating government. Ben Lewis, Ten News. in Sydney overnight Daring and noisy training

preparing with the Australian Defence Force

for next month's APEC meeting. onto city buildings, Choppers deploying troops not to be frightened the military urging residents by the sound of mock gunfire. out of an action movie - During the day, scenes straight between buildings in Sydney's CBD. two Black Hawk helicopters weaving The training exercise will continue for another two days.

onboard a P&O cruise ship. There's been another death An investigation is under way of a 31-year-old Australian man into the death onboard the 'Pacific Sun'.

in a competition The man won the South Pacific cruise on Sydney radio station 2GB. This comes almost five years Diane Brimble, died after Brisbane mother of three, onboard P&O's 'Pacific Sky'. under attack in East Timor Australian troops have come

as violence in the capital escalates. of the ousted Fretilin party Supporters for a second day. hurled rocks and torched buildings The unrest follows of Xanana Gusmao as Prime Minister Monday's controversial appointment fewer votes in June elections. who formed government after receiving behind closed doors Yesterday, both parties sat down the country's security concerns. in a bid to solve to try and free six coal miners Heavy drilling equipment will be used trapped underground in the US.

before rescuers reach them. But it may be up to three days Fore more than 24 hours to reach six men crews have been desperately trying trapped in a central Utah mine three miles into Crandall Canyon mine below the surface. and some 1,600 feet from the six miners. There has been no word are alive or dead. I don't know whether these miners Only the Lord knows that.

Monday morning's caving, If the men survived plenty of air officials say they should have plus the mine is stocked with water. to reach them Crews are trying five different ways

it would take three days. but, at best, officials say at a nearby senior centre Families of the miners have gathered to wait for work. of mining called retreat mining. The coal mine uses a risky form Pillars of coal support the roof and when miners move from the area, during a planned collapse. the roof falls in is still unclear. The cause of the cave-in

it was triggered by an earthquake Mine officials insist

also being questioned and now the safety of the mine is brought against Crandall Canyon with more than 30 citations this year alone. Gwen Belton, Ten News. case of foot and mouth disease Confirmation this morning of another

in the UK. 100 cows have been slaughtered in the Surrey area. after it was found in a second farm Authorities can't confirm reports by recent flooding. the disease was spread measures are being neglected. Farmers are concerned bio-security The parents of Madeleine McCann has been murdered. refuse to believe their daughter has been found at the apartment It follows reports blood where the 4-year-old went missing. will be found alive. but still believe their daughter are doing all they can to find her. They're confident Portuguese police wars were into full swing last night. The annual department store fashion David Jones showed its latest range. Megan Gale the headline act as

There were plenty of skimpy swimsuits and heels to match. as well as high hem lines The day was extra special for Megan. She was celebrating her 32nd birthday.

head on The AFL is tackling Jason Akermanis possible drug cheats, over his claims about the champion. refusing to rule out sanctioning is not one to back down. But the outspoken Bulldog The past few days for Jason Akermanis. have been anything but smooth sailing was doing it's best to stay shut. his famous mouth to speak out about it? Standing by your decision Can't talk about that. Has the AFL said anything to you into disrepute? about bringing the game Can't talk about that either! The furore surrounding his suspicions about drug cheats gathering momentum. At the AFL's 150-year celebration launch,

Aker was in the highlights, but the league is considering sanctioning the Brownlow medallist, including charging him with bringing the game into disrepute. This is a 3-year-old claim, that our understanding is, has no substance but ASADA will be the ultimate determinant of that. But Akermanis says he has no regrets. I've never had regrets, and I never will. I would never change a thing in my life that I've had. If they said, "Come back and live again, would you change anything?"

I'd say no. Ian Cohen, Ten News. Bulldogs rugby league forward Brad Morrin faces a long suspension when he fronts the judiciary on a contrary conduct charge tonight. Morrin will plead guilty to biting Parramatta's Timana Tahu. His charge was sent directly to the judiciary giving the panel of three former players the discretion to hand out whatever penalty they find appropriate. Australian Olympic Committee boss John Coates says our athletes won't spend any longer in Beijing than necessary

due to pollution. It's one year to the day until the Games begin and as the frantic building continues, celebrations were held to mark the milestone. of the locals. Coates not sharing the enthusiasm We would not be recommending a long period in China before the Games, of respiratory or gastro illness particularly if you're not living in the village. The opening ceremony is due to be held on 8 August '08, a lucky date in Chinese culture. Another look at finance now and a rate rise could drive the Aussie dollar higher? That's right, Bill.

If the Reserve Bank does lift rates today as expected, the Australian dollar is expected to follow suit and climb. The local currency has been trading in a narrow range for the past week ahead of the RBA meeting

and should find support if the cash rate is lifted to 6.5% As our interest rate differential with the United States widens, the dollar should track back towards the 90 US cent mark.

A short time ago, one Aussie dollar was buying 85.4 US cents. And overnight the US Federal Reserve kept American interest rates steady at 5.25%. The decision was widely tipped by the market as the world's biggest economy continues to show signs it's losing steam. Overnight, a report showed productivity rose less than expected but labor costs gained, suggesting inflation may still be a problem. In its statement, the Fed reiterated those fears saying another rate hike could be on the cards if inflation moves higher.

Now for a look at the national weather and for the rest of the day. Let's take a look at today's newspapers.

in remote Aboriginal communities passed in parliament, Those details when the Early news returns.

This program is captioned live. Welcome back to Ten's Early News. This morning - soldiers targeted. Australians on duty in East Timor caught up in the latest round of violence. Rates watch - the Reserve Bank tipped to lift interest rates by 0.25%

Rivers of lava - spewing torrents of ash and rock. a Hawaii volcano blows its top And walking the walk - Matt Damon hits the red carpet in Sydney for the premiere of his latest film.

Time for another look at finance and how has Wall Street ended up? Bill, it seems investors have responded with confidence to the Federal Reserve's decision to keep interest rates steady. The US market ending the day with a rally. When I come back - Richard Branson's latest venture in the US. Australian soldiers serving in East Timor have come under attack from rebels protesting the appointment of the new Prime Minister. at buildings in the capital Dili Youths lit fires and threw rocks and were even heard shouting "down with John Howard." Fighting continues on the streets of the East Timorese capital. Gangs hurling rocks and setting fire to buildings. Australian troops and UN personnel came under attack as they attempted to secure the streets of Dili while leaders of the ruling and opposition parties sat down to talk behind closed doors in a show of solidarity. Monday's appointment of Xanana Gusmao as prime minister was denounced by the leader of the former ruling Fretilin party.

Mr Gusmao seized power after he formed a coalition with other minor parties. gained the greater number of votes But the Fretilin party at June's elections and believes it should govern. The country's President, Jose Ramos Horta,

has called for calm. We are all committed to maintain peace and security in this country. More violence is expected when the Prime Minister is inaugurated later today. Anthony Donaghy, Ten News. Interest rates are tipped to rise 0.25% this morning. And we could be in for another rise later this year which will take interest rates to their highest level in more than a decade. interest rates on a housing loan now are five percentage points lower than what the average housing interest rate was under the Keating government. The Reserve Bank's decision will be revealed at 9:30 this morning. Laws allowing government intervention in top end Aboriginal communities have passed their first vote in parliament. Labor has backed the bills despite concerns over the scrapping of the land permit system. to impact on the lives of Indigenous children like no minister has ever had and I take that responsibility incredibly personally but also take it very seriously and I hope I can do it justice. The legislation will now go before the senate. Labor has launched a new campaign which it hopes will put it even further ahead of the Government in the polls. The Government has accused Kevin Rudd of resorting to US-style politics.

The Government is down but not out. I have lived through the best of times and the worst of times. And Labor has plenty up its sleeve to keep the Government guessing. A catchy jingle, flashy website and a trendy T-shirt the latest offerings from the Rudd publicity machine.

I just wanted to take a few minutes of your time to talk about the future. Not everyone's impressed.

Kevin '07? Why not 007? Good grief! It's a load of crap, and the thing that I say to Australians is please look at not just the media tart carry-on.

(Laughs) That's pretty funny, isn't it? The Prime Minister isn't laughing - but he sees potential support from voters angry over State issues like the forced amalgamation of Queensland councils. What the Beattie Government is doing is riding roughshod over the wishes of the people of many parts of Queensland. Murray McCloskey, Ten News. One women is dead and three men in hospital

following a terrifying car crash in Brisbane overnight. Police say the car slammed into a power pole in the city's north and badly injuring the others. killing the woman in her 30s and bJdly injuring the others. The three men were taken to hospital. They're believed to be in a stable condition. The parents of missing British girl Madeleine McCann believe she's still alive. It follows reports blood has been found at the apartment where the 4-year-old was taken. but on numerous occasions the Portuguese police have assured us that they were looking for Madeleine alive and not Madeleine being martyred and I don't know of any information that's changed that. Even last week with the police they were saying "We're looking for a living child" and they've said that lots so. REPORTER: Now, the nature of these searches involved yourself, your car, I believe, is actually still being looked at by detectives. How has that been? Well, of course it's difficult but we expect the same thoroughness and to be treated the same way as anyone else who has been in and around this. A car has been dragged from the Mississippi River at Minneapolis. The vehicle was pulled from the site of last week's bridge collapse. It's unclear whether the car was empty. Police have taken it away for further inspection. Eight people are still missing in the underwater rubble. Spectacular pictures from Hawaii's Kilauea volcano. A red stream of lava can be seen flowing down the side of the mountain. The brilliant sight stretching for almost two kilometres. The activity forcing authorities to close the nearby national park, the lava also giving off toxic fumes. Kilauea is one of the most active volcanoes in the world. Hollywood star Matt Damon has hit the red carpet in Sydney for the Australian premiere 'The Bourne Ultimatum'.

It's been hailed the best of the series, film buffs dubbing him the American James Bond.

Flying solo on the red carpet last night, Hollywood heart-throb Matt Damon stopped Sydney traffic at the premiere of the much-anticipated action flick 'The Bourne Ultimatum'. The Oscar-winner spent time signing autographs and posing for happy snaps.

Fans more than happy to have the star all to themselves. It's the actor's third trip down-under, but this time, the visit's been hard-going. Last time we were here I was with my whole family so we hung out for an extra week so it's been a little less of that and more of this. In the third and final installment of the franchise Damon returns as CIA-trained assassin Jason Bourne, now hunted by the people who made him what he is. Having lost his memory and the one person he loved, he's undeterred by the barrage of bullets and a new generation of highly-trained killers. Bourne has only one objective -

to go back to the beginning and find out who he was. The flick already a hit in the US. The other two really did well here to come through. and so we always count on Austraila Dubbed the American James Bond, which would he prefer? Oh, like Bourne, yeah, yeah, I'm happy where I am. 'The Bourne Ultimatum' hits cinemas August 30. Tracy Vo, Ten News. St Kilda will put it all on the line in their must-win clash against Sydney on Saturday night. They will risk gun midfielder Luke Ball, after only one week's rest for his niggling groin injury. I spoke to him before. He's really keen. He'll be managed again tonight and train Thursday. He's a big game player, a midfielder and he's always said he wanted to be in the midfield. West Coast defender Daniel Chick's 250th game is on hold after he suffered a fractured larynx courtesy of a Dean Solomon's wayward elbow. Parramatta fullback Luke Burt is on target to return from a sickening knee injury in the first week of the finals series. But he's facing another fight - getting the number one jersey back from brilliant youngster Jarryd Hayne. While running is still out of the question, Luke Burt's pushing hard towards a late season comeback, rating himself an outside chance to re-join his team-mates in the final round of the competition. It's always frustrating to sit on the sideline, especially the way the boys are playing, they're playing some good footy and you always want to be part of it, so the sooner I get back, the happier I'll be. His leg still not a pretty sight but a whole lot better than when his kneecap was dislocated 5 weeks ago. The injury horrifying his team-mate Jarryd Hayne, who's since been turning heads at fullback. Burt not expecting the number one jumper handed back to him on the platter. I'd like to hope so, but no, you can never think that, not with the quality of Haynesy. He's a quality player and mate, it's just a matter of me putting my hand up when I'm back and ready. And Bulldogs forward Brad Morrin faces a long suspension when he fronts the NRL judiciary tonight. He'll plead guilty to a biting charge. Leanne West, Ten News. Mark Bresciano's move from Italian side Palermo to Manchester City has hit a snag. Man City has reportedly agreed to pay $10 million for the Socceroos midfielder but Palermo are saying on Bresciano's departure. an agreement hasn't been reached The clubs continue to debate a transfer fee for the Australian. And they'd want to hurry up because Bresciano is supposed to play in Manchester City's premier League opener against Lucas Neill's West Ham this Saturday. Time for another check of finance and some promising figures out yesterday?

The corporate reporting season is getting into full swing with AXA Asia Pacific reporting numbers yesterday. The company reported a 23% lift in a first-half profit of $374 million. The Australia and New Zealand division saw earnings rise 17% thanks to the strong equity markets. The company has plans to increase its share buyback program. AXA shares ended the day almost 6% higher at $7.44. Richard Branson's global aviation empire just keeps growing. In just a few hours time the latest franchise of his Virgin brand will take to the skies in America with the launch of flights between New York and San Francisco. Well, in a sense, it's the perfect time to start an airline. Obviously we'll have the advantage that our planes be brand new, so more reliable, um, the quality of most big American carriers is pretty dire so when somebody walks onto an Virgin America plane they're going to to "Wow" because it's really going to knock them out. If there is a delay because of weather or because of air traffic control, we'll have the best entertainment system anywhere in the world so at least they can be entertained whilst they're delayed but obviously, the fact that we have new planes and we won't be over-scheduling our planes will mean we won't have too many delays. Now for a look at the national weather and for the rest of the day. An exlcusive Sydney store targeted in an overnight ram-raid. Those details next. And will interest rates rise? We'll find out with CommSec when the Early News returns.

This program is captioned live.

Our top stories this Wednesday morning - rate decision. The Reserve Bank expected to lift official interest rates to 6.5%. Australians targeted - our soldiers on patrol in Dili caught up in the latest East Timor unrest. More time needed - authorities say it will take at least three days to free six miners

trapped in the American state of Utah. And let the battle begin - David Jones kicks off the department store fashion wars with a glamorous show in Sydney. Time to check the markets now and some movement on Wall Street? That's right, Bill. Stocks slipped after the Federal Reserve decided to keep US rates steady but the markets are doing a bit better now.

When I come back - interest rates remain steady in the US, but for how long? The Reserve Bank is tipped to raise interest rates by 0.25% this morning. And there's concern home owners could be in for more heartache before the year is out. The Reserve Bank's decision will be revealed at 9:30 this morning. Most experts predicting a rise from 6.25% to 6.5%. I wouldn't say it's a dead certainty that rates will go up but the odds would point in that direction. Major banks say there's an 80% chance of interest rates rising and there's unlikely to be any relief for home owners later in the year - another rate rise tipped for after the federal election that could bring the standard mortgage rate to 8.5%. We have seen a pick up in the Australian economy over the last six months or so,

and even the more recent figures for retail sales, building approvals, consumer and business confidence,

they all suggest that things are fairly robust. If interest rates hit 6.5%, highest rates since November 1996. Australians will be facing the But the Prime Minister says rates are still comparatively low. On average, interest rates on a housing loan now are five percentage points lower than what the average housing interest rate was under the Keating government. Ben Lewis, Ten News.

An actor appearing in the Federal Government's WorkChoices ads has again been accused of short-changing his employees, this time by his estranged son. Damien Richardson is at the centre of claims he was underpaying young workers Now his son has come out saying he was underpaid when he was working for his father back in 1999. The ad has been pulled off air.

There's been another death onboard a P&O cruise ship. An investigation is under way into the death of a 31-year-old Australian man onboard the 'Pacific Sun'. The man won the South Pacific cruise in a competition on Sydney radio station 2GB. This comes almost five years after Brisbane mother of three, Diane Brimble, died onboard P&O's 'Pacific Sky'.

Thousands of dollars worth of designer clothes have been stolen during a ram-raid in Sydney's east. Just after after midnight thieves targeted the Zambelli boutique on the exclusive Queen Street shopping strip. A white van reversed into the shop smashing the glass store front. It's the third time in the past year the boutique has been robbed. to try and free six coal miners

trapped underground in the US. But it may be up to three days before rescuers reach them. For more than 24 hours crews have been desperately trying to reach six men trapped in a central Utah mine three miles into Crandall Canyon mine and some 1,600 feet below the surface. There has been no word from the six miners.

I don't know whether these miners are alive or dead. Only the Lord knows that.

If the men survived Monday morning's caving, officials say they should have plenty of air plus the mine is stocked with water. Crews are trying five different ways to reach them but, at best, officials say it would take three days. Families of the miners have gathered at a nearby senior centre to wait for word.

The coal mine uses a risky form of mining called retreat mining. Pillars of coal support the roof and when miners move from the area, the roof falls in during a planned collapse. The cause of the cave-in is still unclear. Mine officials insist it was triggered by an earthquake and now the safety of the mine is also being questioned with more than 30 citations brought against Crandall Canyon this year alone. Confirmation this morning of another case of foot and mouth disease in the UK. 100 cows have been slaughtered after it was found in a second farm in the Surrey area. Authorities can't confirm reports the disease was spread by recent flooding. Farmers are concerned bio-security measures are being neglected. American actor Michelle Pfeiffer has been given a star of the Hollywood Walk of Fame. The 49-year-old's fans were on hand to help celebrate the achievement. The three-time Oscar nominee says her mother's support was key to her success. She's the 2,345 star on the famous walkway. The annual department store fashion wars were into full swing last night. Megan Gale the headline act as David Jones showed its latest range. Backstage, the mood was relaxed, as a bevy of beauties prepared to showcase this year's summer look. And none more so than Megan Gale, celebrating her 32nd birthday. This is my birthday, I know, birthday amongst the madness! And why wouldn't they look at ease? This season's theme was the south of France. That meant plenty of red, white and blue, as well as the cheeky reveal - and that's the modest dress option. A lot of dresses that are long, sort of... They're calling them maxi dresses. And they're very... glamourous but still cool. The runway was filled with super-high heels and even higher hemlines, but just don't call it sexy. Now, I call it sensuality, because I think sexy is so '80s or '90s. And with hems and heels high you'd be forgiven for asking to get away with it? do you have to look like Megan Hale In the words of one designer, not necessarily, but it helps. She's even coined a new term for royal blue. That beautiful royal blue, like what I'm wearing now, we're going to be seeing a lot of this summer. A perfect colour for our Channel Ten viewers. Yeah, Channel Ten's blue! Channel Ten blue, it's not royal blue. It's Channel Ten Blue. We hope so! Amber Muir, Ten News. The AFL is tackling Jason Akermanis head on over his claims about possible drug cheats, refusing to rule out sanctioning the champion. But the outspoken Bulldog is not one to back down. The past few days have been anything but smooth sailing for Jason Akermanis. After finding himself in unchartered waters, his famous mouth was doing it's best to stay shut. Standing by your decision to speak out about it? Can't talk about that. Has the AFL said anything to you about bringing the game into disrepute? Can't talk about that either! The furore surrounding his suspicions about drug cheats gathering momentum. Aker was in the highlights, but the league is considering sanctioning the Brownlow medallist, including charging him with bringing the game into disrepute. This is a 3-year-old claim, that our understanding is, has no substance the ultimate determinant of that. but ASADA will be But Akermanis says he has no regrets. I've never had regrets, and I never will. I would never change a thing in my life that I've had. If they said, "Come back and live again, would you change anything?" I'd say no. Ian Cohen, Ten News. Bulldogs rugby league forward Brad Morrin faces a long suspension when he fronts the judiciary on a contrary conduct charge tonight. Morrin will plead guilty to biting Parramatta's Timana Tahu. His charge was sent directly to the judiciary giving the panel of three former players penalty they find appropriate. the discretion to hand out whatever Another look at finance now

and a rate rise could drive the Aussie dollar higher?

And overnight the US Federal Reserve kept American interest rates steady at 5.25%. The decision was widely tipped by the market

as the world's biggest economy continues to show signs it's losing steam. Overnight, a report showed productivity rose less than expected but labor costs gained, suggesting inflation may still be a problem. In its statement, the Fed reiterated those fears saying another rate hike could be on the cards if inflation moves higher.

For more now on what we can expect from today's Reserve Bank meeting we're joined by Craig James from CommSec. Craig, thanks for joining us. There's about an 80% chance we'll see rates rise today, what's your prediction?

We're expecting the Reserve Bank We're expecting the Reserve Bank to

lift interest rates and basically

it is an assurance policy. Be

Reserve Bank wants to keep up -

inflation under control. By Aussie

dollar is that sitting as a c five

1/2 cents. That is good news if you

are travelling overseas and bad

news if you are an exporter. It is

caused more volatility on the Dow

Jones. Trading over his 60 points.

It managed to embassy It mana ed to embassy should It managed to embassy should hire

around 35 points so at least that

is positive. It is pointing to a

strong eye open for the Australian strong eye open for the Australian

market. A lot was going to market. A lot was going to depend on the interest rate decision on the interest rate decision at

930 this morning. Now for a look at the national weather and for the rest of the day.

The Early News returns. GOOD MORNING THERE ARE CONCERNS LOCAL HOSPITALS ARE RUNNING SHORT ON IMPORTANT MEDICAL SUPPLIES - MORE ON THAT

SOON BUT FIRST - A FORTY-YEAR OLD MAN'S DUE TO FACE GOULBURN COURT TODAY, AFTER ALLEGEDLY BEING CAUGHT DRINK-DRIVING THREE TIMES IN SIX HOURS. POLICE FIRST STOPPED THE MAN ON FRIDAY NIGHT, WHERE

HE ALLEGEDLY BLEW A READING ALLEGEDLY BLEW A READING THREE TIMES THE LEGAL LIMIT. DESPITE HAVING HIS LICENCE SUSPENDED, HE WAS ALLEGEDLY LICENCE SUSPENDED, HE WAS ALLEGEDLY CAUGHT AN HOUR LATER, AND EARLY ON SATURDAY MORNING AFTER A SHORT PURSUIT NEAR LAKE BATHURST. THE A-C-T GOVERNMENT'S COME UNDER FIRE FOR THE STATE OF THE LOCAL TAXI SYSTEM. THE OPPOSITION CLAIMS PLANS TO DE-REGULATE THE INDUSTRY HAVE LEAD TO A FURTHER DECLINE IN SERVICES. THEY SAY THE GOVERNMENT NEEDS TO LISTEN TO TAXI MANAGEMENT AND DRIVERS, TO DELIVER BETTER SERVICES FOR

LOCAL COMMUTERS. AND THE OPPOSITIONS' ALSO CONTINUED ITS CRITICISM OF OPPOSITIONS' ALSO CONTINUED ITS CRITICISM OF A-C-T HOSPITAL SERVICES.

THEY CLAIM TO HAVE RECEIVED INFORMATION ON FURTHER SHORTAGES OF IMPORTANT MEDICAL SUPPLIES, INCLUDING LIFTING EQUIPMENT AND CHEMOTHERAPY DRUGS.. IN SPORT, THE CANBERRA RAIDERS HAVE MADE THREE CHANGES TO THEIR STARTING LINE-UP FOR SUNDAY'S CLASH WITH THE BULLDOGS. MARSHALL CHALK WILL START FROM FULLBACK WINGER BRETT KELLY AND SECOND-ROWER MATT BISKERSTAFF HAVE BEEN PROMOTED AFTER RECENT GOOD

FORM . AND FORWARD MICHAEL WEYMAN'S BEEN NAMED ON STAND-BY FOR INJURED CAPTAIN ALAN TONGUE. ALAN TONGUE.

NOW TO THE LATEST WEATHER ... A STRONG HIGH'S CENTRED OVER THE SOUTHEAST OF THE

CENTRED OVER THE SOUTHEAST OF THE CONTINENT, MAINTAINING FINE CONDITIONS FOR MOST OF THIS WEEK.

ACROSS THE NATION NOW, SUNNY IN CANBERRA AND

SYDNEY, MORE SHOWERS FOR PERTH, FINE FOR BRISBANE, AND MELBOURNE SUNSHINE RIGHT ACROSS THE REGION TODAY .. DUBBO FINE AND TOPS OF 18 .. WARMER AND 20 IN WOLLONGONG .. ORANGE HIGHS OF 11

MOSTLY SUNNY AND 15 IN BOWRAL .. COOLER AND 14 IN

COOMA MOSTLY SUNNY AND 14 .. PARKES HEADING FORA TOP OF 18 DEGREES LOOKING AHEAD AND MORE SUNSHINE TOMORROW WITH A TOP OF 15 .. // FINE AND FRIDAY .. // AND LOOKING MOSTLY FINE ON SATURDAY (NO SCRIPT NEEDED HERE.) This program is captioned live. Welcome back to Ten's Early News. This morning - soldiers targeted.

Australians on duty in East Timor caught up in the latest round of violence. Rates watch - the Reserve Bank tipped to lift interest rates by 0.25% Rivers of lava -

a Hawaii volcano blows its top spewing torrents of ash and rock. And walking the walk - Matt Damon hits the red carpet in Sydney for the premiere of his latest film. Time to take our final look at finance and Wall Street seems to be recovering? Bill, US markets finished in positive territory after initially slipping slightly

on news interest rates would remain steady. When I come back - predictions of more interest rate rises before the year is out. Australian soldiers serving in East Timor have come under attack from rebels protesting the appointment of the new Prime Minister. Youths lit fires and threw rocks at buildings in the capital Dili and were even heard shouting "down with John Howard." Fighting continues on the streets of the East Timorese capital. Gangs hurling rocks and setting fire to buildings. Australian troops and UN personnel came under attack as they attempted to secure the streets of Dili while leaders of the ruling and opposition parties

sat down to talk behind closed doors in a show of solidarity. Monday's appointment of Xanana Gusmao as prime minister was denounced by the leader of the former ruling Fretilin party. Mr Gusmao seized power after he formed a coalition with other minor parties. But the Fretilin party gained the greater number of votes at June's elections and believes it should govern. The country's President, Jose Ramos Horta, has called for calm. We are all committed to maintain peace and security in this country.

More violence is expected when the Prime Minister is inaugurated later today. Anthony Donaghy, Ten News. Laws allowing government intervention in top end Aboriginal communities have passed their first vote in parliament. Labor has backed the bills despite concerns over the scrapping of the land permit system. Measures which give me the authority and responsibility to impact on the lives of Indigenous children like no minister has ever had and I take that responsibility incredibly personally but also take it very seriously and I hope I can do it justice. The legislation will now go before the senate. Interest rates are tipped to rise 0.25% this morning. And we could be in for another rise later this year which will take interest rates to their highest level

in more than a decade. On average, interest rates on a housing loan now are five percentage points lower than what the average housing interest rate was under the Keating government. The Reserve Bank's decision will be revealed at 9:30 this morning. Labor has launched a new campaign which it hopes will put it even further ahead of the Government in the polls. The Government has accused Kevin Rudd of resorting to US-style politics. I have lived through the best of times and the worst of times. The Coalition party room told to dig deep despite trailing in the polls. And Labor has plenty up its sleeve to keep the Government guessing. A catchy jingle, flashy website and a trendy T-shirt

the latest offerings from the Rudd publicity machine. I just wanted to take a few minutes of your time to talk about the future. Not everyone's impressed. Kevin '07? Why not 007? Good grief! It's a load of crap, and the thing that I say to Australians is please look at not just the media tart carry-on. (Laughs) That's pretty funny, isn't it? The Prime Minister isn't laughing - but he sees potential support from voters angry over State issues like the forced amalgamation of Queensland councils. What the Beattie Government is doing is riding roughshod over the wishes of the people of many parts of Queensland. Murray McCloskey, Ten News. Daring and noisy training in Sydney overnight with the Australian Defence Force preparing

Choppers deploying troops onto city buildings, the military urging residents not to be frightened by the sound of mock gunfire. During the day, scenes straight out of an action movie - two Black Hawk helicopters weaving between buildings in Sydney's CBD. will continue for another two days. The training exercise The parents of Madeleine McCann refuse to believe their daughter has been murdered. It follows reports blood has been found at the apartment where the 4-year-old went missing. Gerry McCann says they're not naive but still believe their daughter will be found alive. They're confident Portuguese police are doing all they can to find her. Rescuers will use heavy drilling equipment trapped underground in the US. to try and free six miners It's now been 24 hours since the mine collapsed, trapping the men 500m below. But it may be up to three days before rescuers reach them. While families gather at the mine site, it's still unclear whether any of the men survived the initial collapse. Spectacular pictures from Hawaii's Kilauea volcano. A red stream of lava can be seen flowing down the side of the mountain. The brilliant sight stretching for almost two kilometres. The activity forcing authorities to close the nearby national park, the lava also giving off toxic fumes. Kilauea is one of the most active volcanoes in the world. Fans of Hollywood actor Matt Damon had him all to themselves last night at the Australian premiere of 'The Bourne Ultimatum' in Sydney. Flying solo to promote his latest flick, Damon signed autographs and posed for happy snaps with fans. The third and final installment of the Bourne franchise has been hailed the best of the series. 'The Bourne Ultimatum' opens here on August 30. St Kilda will put it all on the line in their must-win clash against Sydney on Saturday night. They will risk gun midfielder Luke Ball, after only one week's rest for his niggling groin injury. I spoke to him before. He's really keen. He'll be managed again tonight and train Thursday. He's a big game player, a midfielder and he's always said he wanted to be in the midfield. West Coast defender Daniel Chick's 250th game is on hold after he suffered a fractured larynx courtesy of a Dean Solomon's wayward elbow. While running is still out of the question, Luke Burt's pushing hard towards a late season comeback, rating himself an outside chance to re-join his team-mates in the final round of the competition. It's always frustrating to sit on the sideline, especially the way the boys are playing, they're playing some good footy and you always want to be part of it, so the sooner I get back, the happier I'll be. His leg still not a pretty sight but a whole lot better than when his kneecap was dislocated 5 weeks ago. The injury horrifying his team-mate Jarryd Hayne, who's since been turning heads at fullback. Burt not expecting the number one jumper handed back to him on the platter. I'd like to hope so, but no, you can never think that, not with the quality of Haynesy. He's a quality player and mate, it's just a matter of me putting my hand up when I'm back and ready. faces a long suspension And Bulldogs forward Brad Morrin when he fronts the NRL judiciary tonight. He'll plead guilty to a biting charge. Leanne West, Ten News. Parramatta fullback Luke Burt is on target Mark Bresciano's move from Italian side Palermo to Manchester City has hit a snag. Man City has reportedly agreed to pay $10 million for the Socceroos midfielder but Palermo are saying an agreement hasn't been reached on Bresciano's departure. The clubs continue to debate a transfer fee for the Australian. And they'd want to hurry up because Bresciano is supposed to play in Manchester City's premier League opener against Lucas Neill's West Ham this Saturday. Time for another check of finance. If the Reserve Bank does lift rates today as expected, before the year is out. it may not be the last hike we see The market is expecting mortgage rates to reach 8.5% by the year's end which means we'd need to see at least two more rate hikes. Mortgage rates are currently around 8% 80% of market analyst. are bracing for a rate rise,

The rest say the Reserve Bank may wait and see if there's any more fallout from the sub-prime woes currently being experienced in the United States. And finally, a plush waterfront mansion in Sydney has rewritten Australian real estate records. The three-story property at Point Piper, known as Routala, sold for a reported $28.7 million. That's $700,000 more than the previous best set in 2002 by Altona -

a property just five doors down the road. Routala was bought in 1999 for $8.3 million before being extensively renovated. And real estate agents are tipping even higher sales this year. Now for a look at the national weather and for the rest of the day. A quick recap of the morning's top stories. Soldiers targeted - Australians on duty in East Timor caught up in the latest round of violence. Rates watch - the Reserve Bank tipped to lift interest rates by 0.25%. More time needed - authorities say it will take at least three days to free six miners trapped in the American State of Utah. That's it for Ten's Early News. We'll have full coverage of the interest rate decision in the morning news at 11 o'clock. I'm Bill Woods, see you tomorrow. And I'm Kellie Morgan, enjoy your day. Supertext captions by the Australian Caption Centre. www.auscap.com.au