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Live.

Tony Abbott's riding high on

the numbers, but the

independents are not

celebrating just yet.

Panel feels the chill after key forecasting errors. There's no

question that their trust was dented by all those controversies. Barack Obama

looks for ways to avoid a

double-dip recession. And curing agarophobia, without

even leaving the house.

Hello. Welcome to ABC News

across Australia. I'm Ros

market, worries about global

recovery are again spooking

investors.

More finance later in the

bulletin. Now more than ever,

the race to form the next

government is turning into a

numbers game. Tony Abbott is

pressing his claims to the

revised count of Prime Ministership, based on a

two-party-preferred votes. The

coalition is ahead of Labor and

Mr Abbott says that strips away

Parliament's independents who Julia Gillard's legitimacy. The

will ultimately decide insist

the vote's only one factor in

their thinking. From Canberra,

George Roberts reports. Even in

limbo, some things never

change. Tony Abbott's daily

routine's the same. Do you think that the two party vote,

does that really matter in who

at should be Prime Minister? And

at his shadow Cabinet meeting,

he reminded his team he's fit

to govern. We nor longer an

opposition. We may very well be a government in

was part pep talk, part tough

talk, to hammer point on Labor's claims to moral authority. The Labor Party has

first lost its way, and then in

the election, it lost its

majority and it lost its

legitimacy. From the earliest

days after the election, Julia

Gillard used Labor's lead on the two-party-preferred vote to

argue her case for staying in

office. It now appears clear

that Labor has won the two-party vote. That means the two-party

majority of Australians voting yesterday prefer a Labor Government. But Labor's Government. But Labor's lead has since evaporated. The

in the Electoral coalition's fractionally ahead

recalibrated count. It's enough

for the opposition to assert

that Julia Gillard's failed her

own test. Julia Gillard made

two-party-preferred vote the claim that the

two-party-preferred vote gave

her some moral authority to form

form government that plank has

now been taken away. It's

clear now that the coalition

has the preference of the areas - the two party Australian

the most number of seats. On preferred, the primary vote and

any basis, they really don't -

they are no longer a government. They're just siting

decision of the in the seat but it's the

independents. For at least one

of them it matters but not

much. All of that is being

listened to but in the end it's

in the context of the job that we've

we've all got and that is how

do we form a stable government

for the next three years? The

way beyond numbers of the independents' calculations go

everything they've requested to

make their final decision is

now being delivered. They're getting with bureaucrats, piles of

paperwork, and meetings with

key government and coalition

figures. Demands for changes to

the way Parliament itself does business are also being met. There is broad recognition

of the problems of the way

practices here have been run up

till now. And there's broad

recognition of the opportunities. He's expecting

Julia Gillard and Tony Abbott

to detail their proposals soon.

The ABC's election computer

gave the seat of Brisbane to

the coalition days ago, serving Labor MP Arch Bevis was only last night that long

conceded defeat to Liberal Teresa Gambaro. For Arch Bevis

it's the end of 20 years in the job and some time now to ponder what went wrong. I think in

seat of Brisbane, the single biggest factor was the

redistribution that occurred at

the end of last year. There was

a dramatic change in the

electorate, 27,000 voters

removed. 27,000 other voters

electorate. And that were put into the

lost were Labor voters. The

27,000 I gained are amongst the

strongest Liberal voting areas

of Queensland. And that's

certainly made a big difference

Queensland there was a mood to

punish Labor. That was felt

here in Brisbane like

everywhere else. What about the

Rudd factor? That couldn't have

helped? Look that was one of

the issues people raised but

you gotta put these things into

perspective. There are a whole

range of things that decide

elections. I've been through my

fair share of them and

analysis work as well. There is been involved in post-election

never one issue. There is

always a raft of issues. That

was one issue, but it was different for different people.

during the campaign I had people coming up to me

during the campaign for the

last few months talking about their concerns over climate

change, for example. For some

people, that was the issue that decided their vote. It was

people. It's never one different issues with different

thing. Could the Labor Party

machine have run a better

campaign? I think we do need to

have a look at how things

last couple of month,. The unfolded but not just in the

government's record is an

outstandingly good one. We have

to ask ourselves how could we

do bet er where we did better

with the global financial than any country in dealing

crisis, we had a good record in

health, in education, how do we

find ourselves in this

situation? If there is another

election in say 18 months'

time, will you be a

candidate? You never rule

things out in politics other things but I'm taking one

day at a time. I hope we're

able to establish a stable government. I hope Julia

Gillard is able to form a

government with the support of the independents. But time will

tell. And for me, I will simply

take it one day at a time, and

see what comes down the track. Arch Bevis there. The UN's

for a shake-up. An Climate Change Panel is bracing

international review has called

for fundamental reforms,

including leadership changes

source material. The IPCC has

been under intense pressure

since admitting its landmark study into climate change exaggerated the speed of

glacier melt. Russia was

burning this summer. Is extreme

weather really on the increase?

That's the sort of question the

intergovernmental panel on

climate change was set up to

answer. It's been hugely influential,

influential, but following a

blunder on glaciers it's been

under review. Today the world's

top science their verdict on the panel,

known as the IPCC. There's no

question that IPCC, the trust

in what they had to say was

somewhat dented by all these controversies. We think what we

have recommended will

help. Today's report said the

panel should be clearer about

uncertainties. On issues like

how far sea ice would melt, for instance. Some say reform must go even further. Issues now

raised by climate change mean

that we need more than simply

the IPCC. We need to other

forms of assessment with organisations playing a much bigger part than simply the

scientific experts. The panel is a high profile organisation,

though. Its chair accepted though. Its chair accepted the

Nobel Peace Prize with Al Gore

for drawing attention to the

climate threat. His job is now

at risk. Today, he was fighting back. Science has confirmed

that climate change is real and the more scientific information

we have, better we can design

our actions. And the panel will continue, as long pollution is changing pollution is changing the

climate. With the sport's credibility at stake, cricket's

world governing body is vowing to take swift action if betting

scam allegations involving four

top Pakistani players are found

to be true. British police are

investigating claims players deliberately bowled pre-arranged no-balls in the

final Test match between

Pakistan and England at Lords

at the weekend. And there are

growing calls for Pakistan to abandon the rest of its matches in in England. Emma Alberici

reports. The Pakistani team may

have left the scene of the

alleged crime, but in London,

police are still investigating

footage from the 'News of the

World' showing a middle man

taking $260,000 in return for a

promise that bowlers will

deliver no-balls at exact times

during play. The first ball of

the third over. And just as

discussed, first poler Mohammed Asif overstems the mark and the

umpire calls a no-ball. How far

was that? Whoa! A news program

in Pakistan has debate about the allegations of

match fixing. Mohammed Asif's

ex-girlfriend tells viewers

that the bowler told her that

last summer's

Australia/Pakistan Test in

Sydney was fixed and that the entire team was involved. There

he goes. Got him! What a

catch! In 2006, Mohammed Asif

cricket for a year after

testing positive for a performance-enhancing drug. Two

years later, he was deported

from Dubai for drugs into the country. To this

day, Asif cannot enter Dubai.

And Pakistan play him? Cricket is Pakistan's national sport.

Details of the alleged betting

scam have been splashed across the front pages of press. On the streets of Islamabad, there

Islamabad, there is talk of the

Taliban and the reign and the

new enemy, corrupt cricketers.

new enemy, corrupt cricketers. Both Both the Cricket Board and the

team should be shot. They're

worthless. They're a shame on the country. If the allegations

are true, which we don't know

as yet because they're

allegation, then there should

be punishment. Cricket's

governing body says the

Pakistanis should continue

their England tour. The England

team is said to

that ruling. The International

Cricket Council has rejected

calls for Pakistan to abandon

its remaining matches in

England though Pakistani officials might consider

dropping the four players

alleged to have accepted bribes

to fix parts of the fourth Test here at Lords.

An Australian civilian

medical team has flown to

Pakistan to help with aid

efforts in the flood ravaged

country. About 20 medical

personnel from around the country, including staff from the National Trauma Centre in

Darwin have left from the

Amberley Air Base west of

Brisbane. They'll work with a

Defence team to set up a health clinic in an area where up to 30,000 people have been

displaced by the floodwaters

and they're expecting a mammoth

task. It will be mentally

challenging and physically

challenging, but I believe it

will be very rewarding to be

able to assist the affected

communities in Pakistan. The

civilian staff are likely to

stay at the clinic for a month. Imagine being so afraid of crowded places that getting in

a lift or going to the movies

is impossible. For some people with agarophobia, that's exactly

exactly what happens. But there

is hope. Australian scientists

are using 3D virtual reality

technology to create a safe

environment where people can

conquer their fears. Two years ago, it would've been difficult

for Paula Sinclair to be here at Sydney's Macquarie University. She suffered

agarophobia. Fear of closed

spaces, so lifts and going in the tunnel an things and what I was doing was

avoiding them. Just not doing

them at all costs. But she

read about a new approach using virtual reality to help

patients overcome their anxiety. In real time and as if

real life, patients are very gradually exposed to different

scenarios. One of the reasons

it works is that the therapists can completely control the

environment, unlike the real

world. So far the results are

quite positive because the

patients are less afraid when

they are confronted with this kind of violence. They also

have better mood and better

humour. Virtual reality has

been used to treat phobias for

a while. Despite that

researchers say it's never been done before in Australia. The

techniques are easy to master

even for hapless reporters. There are studies

about the treatment of various

types of phobia. For Paula the

program has been life hitch

changing. I found it fantastic

because you could practise repeatedly, each situation, so

that the situations are

specific to you, and I was

given coping strategies which I went over in each situation

over and over again so they

become a habit. She says program has meant she stops avoiding stressful situations

and can live a full life.

Researchers now want to trial

the technique on a larger group

of patients. Australia's

current account deficit has

narrowed in the June quarter.

The shortfall services an investments came in

at 5.6 billion dollars. Exports outstripped imports by more than economists had predicted. The White House is working on

new ideas to stimulate the stalling American economy.

Barack Obama is under

increasing pressure to do something

something to prevent what some

fear will be a double-dip

recession. The President says

his economic team is hard at his economic team is hard at work. But as Washington

correspondent Craig McMurtrie reports there are no details on what new measures are on the

table. Iraq and Middle East

peace talks dominate Barack

Obama's agenda this week but

with so many people out

the polls and pundits say the

issue Americans really wanted

to talk about is fixing the US

economy. Official unemployment

already at 9.5% is tiped to get

worse, not better later this

week. And with growth revised

down to a crawl at 1.6 instead

of a projected 2.4% the President

of new unspecified measures to

get the economy moving. I will

be addressing these proposals

in further detail in the days

and weeks to come. But facing

a massive deficit no-one in his

administration is talking about a second big stimulus. Targeted

initiatives to help spur the recovery. One of those

initiatives a Bill giving tax

breaks to small businesss is being blocked by Senate Republicans Holding this Bill

hostage is directly detrimental

to our economic growth. So I

ask senator Republicans to drop

the blockade. Republican

leaders fired back saying

instead of growing jobs,

Democrats have been growing

America's national America's national debt. With the mid-term congressional

elections approach, the

political blame game isn't

helping calm markets looking

for direction. It's a confidence crisis. That's

something that's more than just

an abstract thing. I think

that's the big lock on the

economy right now. And the

Dow's decline accelerated

today, on thin trading it shed another 140 points.

Holden has unveiled what it

says is its most environmentally environmentally friendly car.

The serious 2 Commodore is

Australia's first locally built

vehicle that can run on either

petrol or bioethanol. The car

maker has teamed up with Caltex

to develop a new form of bioethanol made from household

garbage waste. The great thing is that people don't have to

change their behaviours. They

just put it in the tank and they go. They have the benefit of reducing their carbon

footprint by about 40%. Well to

wheel. Also announced today

were plans to export the were plans to export the new Commodore to Commodore to Brazil. The world's largest bioethanol market. Sky high prices have seen Australia's gold

production hit levels not seen

for more than six years. Prices

for the precious metal have

stayed high regardless of how much the mining companies can

produce. Gold is back in vogue. And has And has been reaching historically high

historically high prices. We

had something like 550 an ounce

in the early 2000s. The gold

price has been averaging about

1,200 an 1,200 an ounce in Aussie

dollars for the last two years.

So it's doubled. Gold bugs are

looking to the US Federal

Reserve to see if the boom is

likely to continue. We're going

to continue to see the gold price rise as long as the

central banks adopt

central banks adopt quantitative easing programs

and rather loose monetary

policy continues it could have

inflationary implications and

will further reinforce the

attractiveness of gold. It is a

lot of cash floating

looking for a return. And at

this stage there's not a lot of

obvious candidates but gold

does stand out as having that

steady and out performing

characteristic to it. characteristic to it. It's

drawing support to it. Australian gold companies are

keen to capture some of those

dollars, and are ramping up

production levels. An industry

report has found production for the the June quarter reached 67

tonnes, up 20% compared to the

same time last year. And that

means Australia is now the

second largest gold producer in the the world after China. Some

companies even returned to

mothballed sites to develop

them further. A whole heap have

gone back to old operations,

had a look often beneath the

old open-cuts and are now

developing larger open cuts or

in some cases going under

ground and being able produce far more gold for future. Gold analysts will

this week be monitoring a run

of US economic dat to look for signs of inflation and the

slowdown in the economy. Let's

go to some other stories making

news in business. A slight

increase in home prices last

month, ep open 4% according to

RPA data. July quarter figures

showed Darwin recorded the biggest price hike while

Brisbane and Perth eased 2.5%. The owners of the Clem 7 The owners of the Clem 7 tunnel

in Brisbane have hosted a $1.6

billion loss for the year to

June. Rivercity Motorway Group says the slos due to much lower

traffic volumes than expected

through the tunnel that

connects the city's north and

south. And a ban on Blackberry

phones in India which was due

to take effect today has been

postponed for at least two months. India says the months. India says the maker of

Blackberry, Canberra's Research

in Motion, has now allowed the government

phone data. Time for a check of

the markets with Simon Palan.

Fairly downbeat start to the

session? It is. We've had

leads from both Europe and the

US. At lunchtime in the east the All Ordinaries is down

around 21 points to 4461. The

falls are fairly indiscriminate today. Really all sectors are

heading south. All the big

banks are lower except the Commonwealth Bank. Westpac is

off more than 1% and that's to $22.07. And the earnings season

is coming to a close? Yes,

there is only a few companies left to report earnings now.

Centro Properties Group has

results out today. It's posted

a $652 million annual loss as

it continues to

issues. It's an improved result

from last year but investors might've

might've been expecting more

because Centro shares are down

almost 6% today. Southern Cross

Media Group also has results

out. It owns radio and TV

assets in regional Australia

and it's recorded an $82

million annual loss but the

company says it's cautiously optimistic about the current financial year and it's bright spot on market today. Southern Cross shares are up

slightly to $1.78. The market

is feeling the impact of weaker oil prices? Yes, it is. Resource stocks Billiton are struggling. It's down a little more than 1%. Rio

Tinto is lower today too. The oil miners are also hurting.

Origin Energy has lost 2% to

15.26. A check now of the other

big movers in the ASX top 100:

Wall Street gave Wall Street gave up most of

yesterday's gains, while new

figures show consumer spending

rising they've been offset by

weaker growth in personal and disposable incomes.

A cruise ship passenger is in a Gold Coast Hospital suspected case of meningococcal

disease. The 48-year-old man

was airlifted in critical

condition from P & O's 'Pacific Sun' about

Sun' about 110 kilometres off

the south-east Queensland coast

last night. A Careflight rescue helicopter doctor was lowered

on board to treat the man who

was then winched off the ship. He seemed to be getting

worse on our arrival, but with

the treatment we initiated he

seemed to be doing better en

route. The cruise ship left

Sydney two days ago and is

heading for New Caledonia. 33

Chilean miners trapped deep

underground are about to get

help from NASA. The US space agency has been agency has been called in to

advise them on how to survive

in isolation. The latest input may move crucial given

expectations it will be months

until the miners see the light

of day. The final piece of the

drill hasn't yet arrived, but this afternoon, we found plenty

of activity around the site of

the main rescue Engineers are getting ready to start the digging. The current

plan is to dig straight down to the

the miners' shelter. That means

cutting a hole about 26 inches wide, roughly the size of a

bicycle wheel, more than 2,300

feet through rock. Engineers

hope they can drill as much as

66 feet per day. But the drill

will have to stop for

maintenance. And the government

warns that it may take three or four months to reach the

miners. And here are the men, in their refuge. The miners

sent up a new video shortly

after they had their first

phone conversations with their

relatives. You can see what

just 60 seconds on the just 60 seconds on the phone

has done for each man trapped

underground. This woman told me

she spoke to her 27-year-old

son Daniel. She is a widow. Her

son is the centre of her life.

son is the centre of her life. It was a very short

conversation. I was just able

to ask him how he was. Who he was waiting for him. That he should

be calm. This pastor believes

that the miners' survival is a

miracle. So he sent 33 mini

bibles down to their refuge. I

asked the mining minister if I could send could send doesn't bibles. He

said yes, so long as they were

smaller than 7.5 centimetres.

The families of the miners are

preparing for a long wait. For

now they sit quietly outside

the mine. They promise here until the last man comes

out from the ground. The

Hawthorn Football Club is in

damage control after it was

revealed player Travis Tuck found unconscious in the back

of a car on Friday of a car on Friday night.

Travis Tuck is the son of AFL games record holder Michael

Tuck who took his son away from

the family home this morning.

Ambulance officers had to take

the 22-year-old to hospital on

Friday night. Police say he was

found with drug accessories in

the car but no charges would be

laid. In those circumstances,

we don't lay charges. We don't

want to discourage people when they

they find themselves in need of

some medical assistance or some

medical treatment. We don't

want to discourage people from

actually calling police and asking for help. Our first,

second, third concern at the

moment is for Travis. And his

family and the club are doing

all we can to support him.

Tuck has played 20 games in

five years with the Hawks. Lleyton Hewitt has gone out in the

the first round of the US the first round of the US Open

after a five-set defeat to

Frenchman Mathieu. After Hewitt had

had sent the game into a fifth

set, he ran out of steam, and

Matieu cruised to victory with

a 6-1 score line. Samantha

Stosur will play fellow Australian Anastasia Rodionova

in the second round. The fifth

seed was taken to three sets by Russia's Elena Vesnina but

closed out the final set 6-1 .

Rodionova had a straight sets win over Serbian Bojano Jovanovski. Jovanovski. Qualifier Sally

Peers will met Kim Clijsters in

round 2 after thrashing

Canadian Aleksandra Wozniak. I

don't think I can try to play any better with that. any better with that. The

Boomers have bounced back from

yesterday's defeat by Argentina

to thrash Germany 78-43.

Patrick Mills led the scoring

as Australia stayed on track

for a phase. Australia is off to a

winning start at the Hockey

World Cup with a 2-1 win over

Japan. Kobie McGurk scored the first and captain Madonna Blyth

got the second. Researchers in

Perth have identified Perth have identified a

possible genetic link to asthma

and in the process opened up a

new direction for treatments.

They found evidence that

abnormalities in lung cells may

be a key factor. It's a

condition that affects 2 million Australians.

12-year-old Olivia is one of

careful sometimes, like when you're at parties sometimes you can't eat all the pad stuff but

you can still have fun. For years,

years, medical researchers have sought better ways to treat

asthma while searching for its

cause. Allergies have often

been blamed but a new study

suggests the cause may lie in

abnormal cells in the lung. The

rationale there is that many

people in the community are

allergic but they don't all

develop asthma. Professor

Stephen Stick leads the PMH has found the cells that line

the airways of some children the airways of some children are abnormal. That abnormality

means their lungs are more

easily damaged and don't repair properly leaving the children

more vulnerable to developing

asthma. Now researchers believe

treating that primary

abnormality may hold the key to

pro venting asthma itself. Maybe we've been heading down the wrong pathway.

Instead of just treating the consequences consequences of something

abnormal in the lung which

might focus on the factors that

are abnormal and treat those.

Brad Lowson realises treatments

flowing from this research may

be years away but he is hopeful

scientist also find a scientist also find a way to

eradicate asthma. For now he and

and his family must closely manage for daughter's

symptoms. For Olivia we need to damage the

damage the day-to-day part of asthma as well as having asthma as well as having this

hope that one day there is a

cure for asthma. The next phase

of research will focus on

developing drugs to help correct the the air ways. To the weather

now. The at light shows cloud

dripping some south eastern

states and patchier cloud over

eastern Queensland and moist

south easterlies. A front and trough will push rain from South Australia South Australia through as far

as New South Wales. A low and

trough over WA will cause

showers and the odd storm

across the south. And around

the capitals:

A final check of the

markets. That's the news for now. Up

next, Julia Gillard at the National Press Club. Our next

full bulletin on ABC1 is at 7

o'clock this evening. I'm Ros Childs. Have a great afternoon. Closed Captions by CSI

This Program is Captioned

Live. Today at the National Press Club, the Prime Minister Julia Gillard. After the

historic election outcome 10

days ago that delivered a hung parliament, Ms Gillard will argue her case for why the

Labor Party should be supported

to form government for a second term. With Club address from Canberra, the Prime Minister Julia Gillard.

Prime Minister Julia Gillard. (Bell rings) Ladies and gentlemen, welcome to the National Press Club and today's

National Australia Bank

address. We're very pleased to

welcome back the Prime Minister. We've had an unusually large number of

occasions to do it this year, but in the current

circumstances, I'm sure you

will all join me in welcoming will all join me in welcoming back the Prime Minister, Julia

Gillard. (APPLAUSE)