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(generated from captions) history. Good evening. The

Prime Minister has spent her

first full day in office

talking to world leaders and

charting a new course for her

Cabinet. She's now working on

reshaping her front bench but

Day 1 wasn't all bouquets and

well wishes. The Prime

Minister's faced a barrage of

questions over the plotting

that toppled Kevin Rudd. The

faces are familiar. The seating

plan isn't. The new Prime

Minister and her deputy talked

of koalas overboard. I dropped

it over the side of the boat

and cried and all the rest of

it. Only one member of the

Kevin Rudd's Cabinet is

missing, him. Julia Gillard

hasn't spoken to her former

boss but will before finalising

her front bench. She may decide

to reward the factional heavies

who helped deliver her prize.

But insists she won't be

beholden to them. They breed

'em tough the Gillards. Tough

but not fair according to the

Opposition Leader. They've

exposed the ugliness of the

factional manoeuvrings, the

kind of knock on the door at

midnight assassination style

which has characterised State

Labor. At least one Labor MP

has similar concerns about the

coup leaders. The decisions I

have made this week have been

decisions about profound

matters of the national

interest. They have weighed

heavily on me. The affairs of

State carry their own weight.

Julia Gillard's first acts

included talking to her

colleagues about digging their

way out of the mining mess and

speaking to the American

President about Afghanistan. I

fully support the current

deployment. And I indicated to

President Obama that he should

expect to see the Australian

efforts in Afghanistan continuing. There are still

no hints about election timing.

That will be influenced by the

opinion polls. Liberal sources

say their internal surveys

suggest Julia Gillard's a lot

more popular than Tony Abbott.

Although as Kevin Rudd

discovered, political

honeymoons can end quickly and

badly.

Kevin Rudd hasn't been seen

in public since his emotional

final media conference

yesterday. But tonight he

issued a brief message on-line,

thanking those who've sent

messages of support. Some in

the ALP would like Mr Rudd to

become Foreign Minister but as

Hayden Cooper reports all

diplomacy today was left to

Julia Gillard. Do that again?

There's a new feel to the

alliance. The American

Ambassador brought out a prime

ministerial blush. Many more

courtesy contacts will follow.

The leaders of Indonesia, Malaysia, Canada and Britain

have been on the phone. China

has lost a Mandarin-speaking

comrade. But it seconds its

best too. We congratulate madam

Gillard on becoming the Prime

Australia. China/Australia Minister of

relations are developing very

well. The moment's been met

with a claim in Australia, a

woman in charge, a political

milestone unmatched in the

nation's history. But what of

the vanquished? The sudden

termination of Kevin Rudd's

tenure has left some MPs with

pangs of guilt. These are

gut-wrenching processes of

changing leaders. These things

are never pleasant. We all felt

for Kevin yesterday. I still

feel for him today. One man

could only marvel at the

merciless efficiency. You have

to hand it to the machine men

of the Labor Party when they

execute someone they do it

ruthlessly. Right-wing faction

heads delivered the victory but

the two new leaders say there

was more to it. I was approached by a significant

number of caucus members right

across the party. Who believed

interest there was a need for a

change. Kevin Rudd's next job

could help Julia Gillard bury

the public unease over his

dumping. Making him Foreign

Minister is an option. But one

that has knock-on effects right

through the ministry. Even so,

one prominent Australian thinks

Mr Rudd's been unfairly

fouled. He was a good man. Got

the red card. Like Mr Kewell. Sent off in injury

time.

The picturesque Welsh town

where Julia Gillard was born is

celebrating the rise of its now

most famous daughter. The Prime

Minister's father was a coal

miner there before her family

moved to Australia in 1966.

Europe correspondent Emma

Alberici reports from Barry in

Wales. This is the town where

Julia Gillard spent her early

years. She was born on this street. And lived in this

two-bedroom terrace next door

to Baiz ill Baker who at 90

years old hasn't moved from

here since he was born. Did you

keep in touch with the Gillards

over the years? Yes, every Christmas.

Christmas. Christmas card and a

letter. When Julia Gillard was 5, she contracted bronchial

pneumonia. Doctors advised her

parents to move the family to

warmer climes. Julia Gillard

and her family were who they

used to call ?10 Poms. Back

then the Australian Government

would offer people from places

like this ?10 boat fares to

emigrate to the country. For

viewers of the comedy show

Gavin and Stacey, the town of

Barry will be a familiar

sight. Party of 12. When the

Prime Minister finished high

school, she came back here, and

stayed with the Bakers. She

said she didn't want to raise a

family at least yet. She wanted

to get settled in a career

where she could work her way

up. That's what she said. And

she said. Julia has put Barry

on the world map, no question

about it. We wish she hadn't

left Barry probably. She

could've been Prime Minister,

our London Assembly Prime

Minister as well! Members of

the Welsh Assembly have sent

their congratulations to

Australia's first female Prime

Minister.

The bodies of three

Australian commandos killed in

a helicopter crash in

Afghanistan are making their final journey home. They've

been farewelled at a ramp

ceremony in Tarin Kowt attended

by their comrades. These were

the last sad moments of their

tour of duty in Afghanistan.

Tim Aplin. Warrior. Tim Aplin. Warrior. Benjamin

Chuck. Warrior. Scott Palmer.

Warrior. You are respected and

will be forever remembered as

warriors by your warrior brothers. The three commandos

were killed in a helicopter crash en route to an operation

from northern Kandahar. Their

bodies were taken back to Camp

Russell at Tarin Kowt. Now

they've been farewelled bit

Special Forces. They're mates,

they're commanders and all of

us here in Afghanistan have

said our goodbyes in a very

touching service. The coffins

were carried in a silent

procession flanked by all the

personnel at the multinational

base paying tribute to their

fallen comrades. Another seven

Australians were injured in the

crash. But it's had an impact

on many of those serving in

Afghanistan. We're going to

continue the fight here on

their behalf. After the ramp

ceremony, a final flight. From

here we'll look after the boys

all the way home. We'll care

for thems, make sure they're

never alone and take them home

safely to their families and loved ones back in

Australia. In Australia, those

families will say their own

goodbyes.

Australia says New Zealand

may support legal action

against Japan over its

scientific whaling program. The International Whaling

Commission has failed to reach

agreement and talks remain at a

stalemate. New Zealand says it

may back Australia's action in the International Court of

Justice, in another attempt to stop Japan killing whales in

the Southern Ocean. Environment

Minister Peter Garrett says he

looks forward to discussing any

support. Now they're considering the possibilities

for legal action. It will be a

matter for them to determine

what particular level of

participation they're seeking

one way or the other. I look

forward to having a discussion

with them further down the

track. The Japanese government

says it will stick to its

pledge not to kill any humpback

whales this season. Two men

have been jailed over the

deaths of six of their friends

in a boat crash on Sydney

Harbour in 2008. Skipper

Matthew Reynolds and his

unlicensed passenger Percy

Small will each serve at least

five years behind bars.

Families of the victims say

that's a good result. It was a

night that went horribly wrong.

Now the families of the six

dead hope the sentences may

bring some closure. It's taken

two years and finally, someone

has been held accountable for

the accident. It's all we

really wanted. Today, not only

for me and my family, but the

other families of the deceased,

it's been a good result.

Matthew Reynolds will spend at

least five years in jail for

manslaughter. He was the

skipper of the overloaded boat

on the night it crashed into a

fishing trawler. It was

licensed to carry eight people.

14 were on 14 were on board. Percy spall

will also spend five years

behind bars. He was driving the

boat at the time of the

collision. He was unlicensed,

drunk and had been taking

cocaine and cannabis. His level

of abuse of alcohol and drugs

is a significant factor in

assessing the degree of his

culpability. Speed was also a

factor. The judge was satisfied

that the fishing trawler was

proceeding at about 8 to 9

knots and that the work boat

was travelling at between 20

and 25 knots. But Matthew

Reynolds' father isn't so

sure. Boaties beware. Maritime

incident, not treated as much. Boaties beware. While the two men were facing different

charges they received identical

sentences. The judge said that

dangerous navigation causing

death is a mirror offence to

dangerous driving causing

death. The six people who died

were all friends of Reynolds

and Small. The two men will be

eligible for parole in 2015.

A new report is calling for

better management of a common

heart disorder to reduce

strokes and heart failure. strokes and heart failure.

Atrial fibrillation causes an

irregular heartbeat. It

frequently goes unnoticed. But

sufferers are up to seven times

more likely to have a stroke.

Doctors are urging people to be

aware of the symptoms and get

checked. Alfred Wilson was

diagnosed with atrial

fibrillation 10 years ago. The condition causes the

70-year-old's heart to beat quickly and quickly and irregularly. It

puts him at greater risk of

having a stroke or heart

failure. Eye I picked it up was

just through being extremely

tired and fatigue. He is one

of almost a quarter of a

millions with atrial

fibrillation. More than half

are over the age of 75. The

condition often isn't picked up

until a person has been

admitted to hospital after

having a stroke or heart

attack. If you talk to someone

about a stroke they'll know

what that is. If you talk what that is. If you talk to

someone about a heart attack

they'll know what that is. If

you mention the words atrial fibrillation, usually a blank

face. And that's the problem.

Because many people aren't

being diagnosed early the cost

is great both to individuals

and the health system. A new

report commissioned by the National Stroke Foundation and

paid for by an unrestricted

grant from a drug company puts

the cost of atrial fibrillation

to the health system at more

than $1.2 billion a year. And

rising. Doctors say that cost

could be reduced if more people

were aware of the condition and

got tested. The easiest way to

pick it up it just to feel your

pulse. And if it's not regular

like a clock, then you may well

have atrial fibrillation. While doctors don't have a cure

for it, they can medicate to

try to prevent the life

threatening illnesses it

causes. I'm relying on the

medication and using wisdom as

to how hard I exercise.

Doctors are urging others to

get checked before it's too

late.

Still to come on ABC News,

paths to abstraction. The

paths to abstraction. The

pioneers of modern art go on

show. Canberra bus drivers have

warned commuters there could be

more industrial action ahead.

ACTION management wants an independent arbitrator called

in to resolve the dispute. ACT

political reporter Julie Doyle.

The travelling public could be

in for a rocky ride.

in for a rocky ride. The

industrial campaign by Canberra

bus drivers looks set to

continue, with all options on

the table, from overtime bans

to a refusal to implement the

new ticketing system. We'll

make a decision on what forms

of industrial action and which

ones are least harmful to the

public. The Transport Workers

Union is angry over a proposal

to increase the number of

part-time drivers. The union

says it wanted to hold a

meeting in the middle of the

day to cause less disruption,

but management refused. The only option for us to get

together with our members to

have this conversation was to

have the buses off the road

from the morning. Drivers

voted to return to work after

this morning's meetings. But

ACTION management had already

decided to stand them down for

the entire day. ACTION's pos

says the public needed certainty. The one thing that

you can't be doing on a Friday

morning is sending your kids

outside to get on a bus and

have no bus turn up and have

them waiting there all day. He wants Fair Work Australia to

arbitrate. We can get an

independent umpire to look at

the issues, make the calls,

make the decision, we all walk

away and we live with those

decisions and we get on and we decisions and we get on and we

run the business. Workers, they

have every right to take industrial action but I think

we do need to look at the

people who are inevitably going

to suffer with this, which is

the commuters. When you have a strike on a day like today the

people who are going to be hurt

the hardest are the people who

feed to get an ACTION bus to survive. ACTION says most passengers made other

arrangements and few were left

stranded.

To finance now. Global share

prices continued to sag today

in response to fears about the American economy.

Pretty uniform falls on share

markets all over the world.

Although in Europe the basket

case markets are well basket cases. Wall Street fell about

1.5%. Today's scary number in

the US was durable goods orders

down 1.1%. Mostly because of a

30% drop in orders for

aircraft. But that was after a

215% increase in April, so it

was hardly surprising. In Australia, All Ordinaries index

fell 1.5% while in Asia the

falls were between half and 2%.

I have a couple of graphs that explain what's going on. The

long-term bond market both in the US and the

the US and the rest of the

developed world is now

predicting a double dip

recession. Bond yields fall when investors think a

recession is coming because

they think inflation will be

lower as a result. There were

big falls in yields ahead of

last year's recession . This graph shows what's spooking everyone. Negative data

surprises in the US. This is an

index showing the net balance

between nice and nasty

surprises about economic data.

Everyone was getting lovely

surprises for a while but in

the last few months they turned

nasty. The falls on the local

market today were pretty much

across the board. Miners fell

heavily as investors started to

realise that getting rid of the

mining tax and the revenue that

goes with it may not be all

that easy. Banks also went down

and Caltex shares dropped 7%

after the company reported a

much worse than much worse than expected first

quarter profit. The Australian

dollar is down to 86.25 US

cents. I will be back on Sunday

with David Thodey from Telstra

and the CEO of the NBN company

Mike Quigley. Where else would an American

President take a visiting

leader for a bite to eat?

Barack Obama headed straight for for his favourite burger point

to give Russian President

Dmitry Medvedev a sample of

local culture. They sat in the

heart of the busy restaurant

making small talk among the

regular patrons. They

eventually emerged from Ray's

Hell Burger with security men

in tow having consumed one

cheese burger each. The

Socceroos are packing up and

heading home after Australia's

early exit from the World Cup.

But they can take heart from the quality the quality teams joining them

as spectators, teams like the

defending champions, Italy.

It was a modest farewell for

the Socceroos. Contrasting the

frenzied response to their

outgoing win against Serbia. We

wanted to finish on a positive

note, and we did everything we

could. Things have gone fairly fast. It hasn't really sunk in. But in in. But in the cool light of elimination, the players and

fans reflected on the hiding by

Germany as Australia's Achilles

heel. I think technically we probably got it wrong first

game. The Australian players

are trickling away to all parts

of the globe to reunite in two

months for a friendly against

Slovenia. We had a great time. It's been a fantastic

experience personally. And now

just looking forward to a bit

of a break and getting home to

see my little one and my

girlfriend. The flags are

thinning out. Joining us

Australia in an early exit is

New Zealand. Who gallantly drew

with Paraguay but needed to

win. The All Whites proudly

remained unbeaten. The major

upset of the of the tournament

so far was Slovakia's defeat of

Italy which sent the defending

champions crashing out of the

World Cup. Slovakia took an

early lead and never relented. early lead and never relented.

At 2-0 up, Italy's fate looked

sealed but they tenaciously

pulled one back before a

devious offside ruling went

against them. The third

Slovakian goal signalled the

Italians' demise though they

went down fighting. That means

both 2006 finalists are gone

before the second round.

A handful of Socceroos are

back in Australia tonight after

the South African campaign.

While missing out on the second

round the players say they're

proud of the performances

against Ghana and Serbia, but

regret a poor start to the

tournament. I would've liked to

play the first couple of games,

but it wasn't the case. And I

think over 2.5 years we did

extremely well together. Back

at the Cup the Netherlands and

Japan progressed to the

knock-out phase with overnight

victories A typically skilful

passing move helped the Dutch

on their way to a 2-1 win over

Cameroon to secure top spot in

group E. And a knock-out clash

with Slovakia. The Japanese

scored twice from free kicks in

their 3-1 win over Denmark.

Japan will meet Paraguay for a

place in the quarter finals. After 11

After 11 hours, 183 games and

215 aces, the longest match in

tennis history is over and it really seemed unfair that

someone had to lose. American

John Isner sell operated as if

he had won the tournament when

he took the fifth set # 70-58.

He beat Frenchman Nicolas Mahut

in a match played over three

days. The Queen appeared at days. The Queen appeared at

Wimbledon for the first time in

33 years, but might've wished

the royal box was moved to

Court 18 where it was standing

room only for the third and

final installment of Nicolas

Mahut versus John Isner. When

the pair resumed at 59-all in

the fifth set their match had

already gone for 10 hours but

they were in no hurry to finish

of the both players brought up their centuries

their centuries of aces.

Another hour went by but at

69-68 Isner had a chance to end it all.

What started as a low

profile first round match ended

three days later as a colossal

contest. That is a world record

that will be still standing in

100 years 100 years time. Appropriately

neither player left empty

handed. The guy is an absolute

warrior. Maybe I will see him

somewhere down the road. A

match I will never forget. I

hope the people that saw it

will think the same. Svetlana Kuznetsova refused to shake

Anastasia Rodionova hand after

losing to the Australian. No

eye contact. Absolutely

nothing. Others remembered

their manners, on a history-making day at

history-making day at the All

England Club. Not even Ricky

Ponting's acrobatics to inspire

Australia to victory in Game 2

of the one-day series against

England. Shane Watson had the

tourists on track for a big score. But Stuart Broad sparked

a middle order collapse,

removing Ponting and Michael Clarke in quick succession.

Cameron White belted an

unbeaten 86 but Australia's 239 looked

looked modest A measured

response from England's batsmen

made light work of the chase.

Despite a stirring late spell

from Doug Bollinger the home

team never looked threatened

winning by four wickets. Game 3

of the five match series is on

Sunday. Rocky Elsom is calling

on his players to prove they

can perform well under pressure

in tomorrow night's Test

against Ireland. The Australian

skipper says the team can't

afford a repeat of last week's

effort against England. Our

intensity was off. And in test

match rugby we learned that

last week but that's never acceptable. Ireland says all

the pressure will be on

Australia at Lang Park in

Brisbane. I don't think a huge amount

amount is probably expected of

us. But we're quietly confident

in our own ability. Ireland

hasn't won in Australia for

three decades but secured a

20-20 draw in their last match

in Dublin.

The New South Wales art gallery says its new exhibition

could be a once in a lifetime

experience for art lovers. The

gallery has gathered a

selection of work from some of the biggest names the biggest names in modern

art. They're showing in

Australia for the first and

perhaps the last time. Picasso

Matisse and many of the

modernist masters have been

shown before but almost all of

the 150 paintings in this

showing are in Australia for

the first time. And part of an

exhibition with a story to

tell. We know Monet, Cezanne,

but we know them in their own but we know them in their own particular world and context.

What we're doing here is

looking at them in the whole

story of the evolution of

western art. Which is a very

different matter. Paths to abstraction charts the history

of modernism from the 1860s to

1917. It includes a 1914

Mondrian in which the artist

adopted a new technique to use

a recessed frame. And that was

very important to him

philosophically because it

meant that the painting could

expand into life. Putting on

an exhibition like this is no

mean feat. The art gallery says

it's taken five years of

planning and sweet talking more

than 50 major international

museums into lending their

priceless pieces all the the

same time. Those galleries

include New York's Museum of Modern

Modern Art, the Tate Britain

and Spain's Picasso museum. To

see them in the context of the

narrative of the story that

will be a very rare experience. The exhibition will only show in Sydney until

September.

Now with a look at the

weather, here's someone also very colourful, Mark

Carmody. Thanks, Virginia. And

good evening. I ran into an old

mate of main today. He used mate of main today. He used to

drain blood out of me at the

blood bank. She has retired to

Hervey Bay in Queensland and

she was banging on about how

good the weather is up there.

So good, that you can drink G &

Ts every night outside and her

only problem was her lemon tree

couldn't produce enough. How

soon she forgets the good

weather here. Take today.

Nearly the middle of winter,

minimum of 4, a maximum of 14,

not bad so far, not bad so far, shite

north-westerly winds, and it

was all washed down with rain

this afternoon.

The r the cloud band

delivering this rain is slowly

moving through State but it

will clear our region around

lunch tomorrow. This cloud is

associated with a cold front

and following it is some really

cold air. We'll get increasing

sunshine after lunch tomorrow

and into Sunday, but the

temperatures will start to

fall. The rain has been

widespread, with parts of the

Riverina like it. Oke getting 2

mm, Broken Hill got 7 and we

might get 10-plus.

We've got plenty of variety

in our weather, just like our

flowers. Look at this common

Heath from Botanic Gardens, for

example. Now that's something

we've got out of Hervey Bay --

over Hervey Bay apart from the

lemons a brilliant Botanic

Gardens. Indeed but I wouldn't

mind drinking the G & Ts

without the lemon, if it was

hot! (Laughs) Thanks, Mark.

Before we go a brief recap of

our top story tonight. Julia

Gillard has spent her first

full day as Prime Minister

getting down to business. She's

spoken to world leaders

including US President Barack

Obama and shared her first

Cabinet meeting. She will spend

the weekend shaping her new

front bench. That's ABC News.

Stay with us now for a special

edition of the 7.30 Report,

with Kerry O'Brien reflecting

on Julia Gillard's first day as

Prime Minister. And featuring an interview with an interview with the

Opposition Leader Tony Abbott.

And you can find the latest

headlines 24 hours a day at ABC

Online. Have a great weekend.

Goodnight. Closed Captions by CSI

This program is not captioned.

Welcome to the special

edition of the '7:30 Report'

coming to you again from

Canberra. What a way to end a

parliamentary session with a

new Prime Minister and a new

ball game, with an election just months, just months, if not weeks,

away. On her first demai the

job, Julia Gillard plunged

straight into it with barely a

pause to adjust to her new

situation while Kevin Rudd

spent the day bunkered down at

the Lodge, deciding what part,

if any, he might like to play

in the Gillard Government. And

Opposition Leader Tony Abbott

immersed himself in the task of

weerg down his new live rival's

credibility. In a moment we

will be joined here in the will be joined here in the studio by Tony Abbott but

first, day one of the Gillard

Government with political