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Australian Agenda -

View in ParlView

(generated from captions) as way. Here is David Speers.

Coming up after the break

on jaenld where we will have

a -- on jaenld we will look

at the -- on 'PM Agenda' we

will look at the stunning

turn around on the markets

today. For all of us watching

the scenes on the streets of

London we will bring you the

latest there as well and

talking to the acting

Opposition Leader warren

Truss. He thinks the carbon

tax is partly to blame for

the market reaction.

This program will be live captioned by Ai-Media

Welcome to the program I

am David Speers it's been an

eerie day for anyone watching global markets or the

shocking scenes on the

streets of London. What is

going on in the world?

Coming up we will bring you

the latest on what's been

happening in the capital and

other British cities today as

youths rioting have lit fire

to various buildings and

created general mayhem. Now

Londoner s waking up to the

mess that follow, what is

going on there? First we

will have a look at the

markets because while we have

seen some pretty awful falls

around the world, here in Australia late this afternoon

there has been something of a

stunning turn around. To

bring us the very latest

Julia Lee from Bell Direct

joins us now. It was looking terrible around lunchtime today but there has been

quite a turn around. How has the market closed and what

drove it? An absolutely

amazing day on the Australian

share market. I have never

seen anything quite like it.

The Australian market down by

more than 5% during the day

but swinging upwards more

than 7.4% to close up 1.2%.

We saw a range of about 280

points on the Australian

share market. At the start of

the day we saw heavy selling

and saw margin calls and red

across the board but if I can

just bring up a chart how the market finished, and we have

a look at the map, this will

show you stock s that gained

in green and the stocks that lost in red and can you see

we did see some pretty big

bright green spots by the

close. In particular we saw

the banks gaining between 2%

to 3%, a huge turn around

from this morning. Traders

are a little bit confused on

what caused the turn around,

part of it would have been a

short covering, a lot of short positions or bets the

market is going to go down

would have been closed out today before the US interest

rate meeting. But also if you

have a look at money markets, expectations that China will

keep on raising interest rates, disappeared today and that helped the Australian

market up. So in the end up

by 1.2%, the best sectors

were the banking stocks and

the resource stocks. So does

this mark an end to the

volatility or is this just

write it -- riding the crest

and we will go back down

again? That's the big

question and if we look at

what is driving the markets

at the centre of the market's

concern is the balance sheet

or debts in the US as well as

the eurozone, if we look at corporate balance sheets they

are in pretty good shape

financial crisis because we following the global

have seen businesses paying

off the debt now with small

levels of debt after the

global financial crisis but

what we have seen are large amounts of debt with the US

economy, with the eurozone

and with Japan. These are the

top three economies in the

world. At the moment the

markets are hoping that we

are going to hear some good news at the US interest rate

meet ing tonight, helicopter

Ben or Ben Bernanke is

expected to give a statement

and markers are hoping for

more money printing or quantitative easing to come

out of that meeting tonight

but with the top three economies in the world with

the huge burdens of debt what is expected is over the next

few years we will see very

slow levels of growth coming

through from the top three

economies. In these times of

volatility gold is always the

safe haven, we have seen new

records set for gold in Asian

markets today. Gold -- isn't

only seen as a safe haven

play at the moment but also a

store of value and that's

because when you see money

printing coming out of the

US, and the eurozone one

thing about gold is that you

can't print more gold. So we

are seeing investors turning

to gold and in Asia today we

have seen an all-time record

high. If I can bring up a

five year chart of gold this

is what it looks like and you

can see it has been trending

very strongly upwards. In

fact since that uptrend

started in fwagt we have

seen prices rising by 19% and

on today's market some of the

best performers were the gold

miners, Ociano up by 10% and

Percius up 5% and the gold

ETF hit a record on Australian markets

today. Here in Australia,

some of the banks have actually reduced their

interest rates today. Not by

a lot but they have made some

reductions. Tell us about

those. If we look at the fix

ed interest market at the moment a strange thing has

been happening, which is we

have seen yields on the

longer end of the curve

falling, so we are seeing

fixed interest loans becoming

cheaper in fact if we look at the banks they have started

to reduce rates on the fixed

loans. Commonwealth Bank

coming out today to say on

its five year product that it

will reduce rates by as much as.6%. Westpac coming out to

say on its three year fixed

product will drop rate s

Poyehue 32%. ANZ is coming

out to say its term Dot rate

will be cut by 0..2%, we also

today got numbers out on

housing finance, and it does look like these numbers still

soft in the month of June we

were expecting to see a 1%

rise but instead it is flat

so we are seeing is the banks

battling this very cautious

consumer and the slowing

housing market as well. So we

have seen those longer term yields coming down and the

big four banks reflecting

that in the moves today. A

final question, the market

went down and you up. What

about the Aussie -- and up

what about the Aussie dollar.

It is back above parity after

a dip today as well? You

think the market went up and

down, the Aussie dollar has

had an absolute turbulent

ride today. If we look at the Australian dollar versus the

US currency in today's trade

this is what it looks like.

The good news is it is above

parity in fact it is at 101.6

US cents. And of course the

Aussie dollar has had a phenomenal ride since May

2010 we have seen the dollar

up by about 38%. Today once again regaining some ground

on the back of the optimism

in the equity markets but, of

course, the currency is

really going to move with the

equity markets. So if we do

see another horror session in

the US tonight expect the Australian dollar to be

coming under pressure. We

will be bracing for that. Thanks so much for that.

Thanks David. World leaders are of course doing what they

can to steady the jittery

nerves of investors, overnight in the US President

Barack Obama took a bit of a

swipe at the ratings agency

Standard & Poor's for down

trade -- downgrading the

US's AAA credit rating. Markets will rise and

fall but this is the US of

America. No matter what

some agency may say, we have

always been and always will

be a AAA country. Here in

Australia, Julia Gillard

spoke with just as much

confidence, in fact she said

Australia and this region

will continue to see economic

growth. In other words, there

will be no recession she was saying. But will the

government still be able to meet its promised commitment

of returning the budget to

surplus next financial year?

Here was her answer tore

that. The traesher has made

clear -- the Treasurer has

made clear events impacts on global growth make the challenge more difficult but

we are working to return the

budget to surplus in 2012-13

as promised. We are working

to bring the budget back to

surplus. It's hardly the same iron-clad guarantee we have

had from the government in

the past. It could be the

start of a softening up

process here, we will see. What are the chances though of the government now getting

the budget back into surplus

in 2012-13? I spoke earlier

to Chris Richard son from

Deloitte Access economics.

Thanks for your time. How

does the fall on the market

actually effect the budget

bottom line and do you think

the government's promise to

return to surplus is now in

more doubt? Look, there are

big risks here. We know the

US economy is sick, we know

that the problems in Europe

are really fundamental. But,

worth remember ing China

itself was in fact doing

better than the government

assumed at budget time. Not

all the news is perhaps quite

as bad as people think. What

does it mean for the budget

bottom line? Is it too soon

to say whether we will go

back into surplus next

financial year as the

government is committed to achieving? Two things. It is

too soon to say, as of today

guess would be yes, still a surplus. But the more

important thing is, if this

does turn into a down-turn

then surplus is not the

important thing. This is

purely a politician's line in

the sand. Yes we need to pay

our way over time, but to

fight to save a surplus on an artificial deadline that will

be dumb. So politically

obviously there will be big problems for the government

if it didn't get back into surplus but economically it wouldn't matter too much one

way or the other? I will

leave the politics to the politicians. But from the

view point of economics, if

the economy is turning down

and that's hurting the

budget, let it hurt the

budget. We are in the amazing

position of having a Reserve

Bank able to turn a lot of fire power on this if it

became a major downturn and

indeed the budget itself. But

to just try to defend the

undefendable must have

surplus, 2012-13. We can do

better than that. The Prime

Minister is not speculating

about what might happen and

what the government might do,

if the world does head into

another recession. Do you

think another stimulus spending package would be the

way to go or should this be

dealt with through just cutting interest rates? Most

of the burden should be with

the Reserve Bank. You should

only be using the budget where it really is an

all-hands to the pump

situation and so far despite

all the market mayhem I don't

see that. I really don't. So

if needed Reserve Bank, if desperate government joining

in. Did the last stimulus

package work? Yes it did. Of course it worked too well course it worked too well because we never needed that

much. And with the benefit of

hindsight we should have had,

I think, more cuts out of the

Reserve Bank and less action

out of the government. But

the mistakes that were made

were the right ones at the

time. When we look at what's happening here and around the

world what do you think is

driving the pessimism,

particularly here in

Australia? Is it simply

because of what's happening

overseas or is there some

element of uncertainty and

lack of confidence and

concern about things like the

carbon tax for example? I think people all over the

world are edgy. Remember the global financial crisis

wasn't that long ago. And

there is very much a feel of

once bitten twice shy at the

moment. Whether you are

looking here or the US or

Europe or indeed Japan and

people's memory s clearly run

to recent mayhem. And that's

got them worried. And

finally, you mentioned

earlier China and how

important it is to the budget

bottom line. How confident

should we be that China's

growth is going to continue? Look, what's happening in the US and

Europe has the potential to

hurt them. But don't forget

we are starting from the

point where China was growing

too fast. And had inflation issues, property bubbles and

the rest of it. Some of a

slow down in China would be a

good thing. Too much would be very bad for very bad for Australia. But

so far I don't see us anywhere near that territory. Thank you. Thanks. Chris Richardson

from dough loit Access

Economics after the break we

will be talking to the acting

Opposition Leader Warren

Truss and also the High Court pending decision on the

government's Malaysia people swap deal. Stay with us.

Welcome back. In a moment

we will be talking to the

acting Opposition Leader Warren Truss. First let's

check in on the latest news headlines with Vannessa.

Fires and wild street

violence has escalated across London and spread to three

other major British cities today. Authorities are struggling to contain the

country's most serious unrest

since race riots in the

1980s. The Sony warehouse in

north London has partially

collapse ed after being

engulfed in flames, around 40

firefighter s are tal

tackles the blaze. People are

saying they saw a gang of looters levering

looters levering the

warehouse before the fire

took hold. Scotland says it

has deployed an extra 1700

officers to deal with the

unrest. Australian shares

have recovered from falls of

more than 5% while the

Australian dollar has clawed

back above parity. Earlier

today the market was in

free-fall as panic set in following steep falls on Wall

Street. The US stock market

plunged by more than 5% in

the first day of trading

since the country lost its

coveted AAA credit rating. A

day of panic saw every stock

on the Dow Jones end in the

negative with commodities hit

particularly bad. The Governor-General is touring

the Pilbara in Western

Australia, looking at some of

the biggest and newest mining

and resources developments.

Quentin Bryce has spent the

past two days visiting some

of the region's mining

projects and meeting community groups. Yesterday

she stopped in at an

education project in

Karratha. At the end of today

she will make her way to Port

Headland. Some happy news for Finance Minister Penny Wong

today. She and apparently

Sophie have revealed they are

expecting a baby. In a

statement the couple said Ms

Allouache was pregnant and due to give birth in

December. The baby was

conceived using sperm from a

donor, couple both knew. In

sport the Roosters have

investigating reports that

Todd Carney, Nate Myles and

Frank Paul Nuuausala broke a team booze ban in the early

hours of this morning. It's

believed the trio was out drinking until the early

hours of this morning. The weather:

Thanks. We are standing

by to take you to London

where the home affairs

secretary Theresa May is due

to give an updad as Londoners

wake up to the mess that's been left after 12 hours plus

of rioting and mayhem on the

streets there and also in

other British cities as well. First though while we stand

by for that we will return to

a look at the turmoil that's

been happening on the

Australian market and global

markets as well. As we

mentioned earlier there has

been better news this

afternoon as far as the Australian market is

concerned, a stunning turn

around, finishing impact in

positive territory after

dipping below 5% earlier

today. In fact earlier this

afternoon when things were

looking very grim indeed I

caught up with the acting Opposition Leader and leader

of the Nationals Warren Truss

to talk about what was

happening on the markets and

the government's Malaysian

deal for asylum seekers which is under a question mark at the moment given the High

Court is yet to decide

whether it does stand on

solid legal ground, we will

get to him shortly, let's go

now to London and the Home

Affairs secretary Teresa May.

Apologies for that, we

will bring that as soon as we

get it. That clearly isn't

there yet. Let's go to the

acting Opposition Leader Warren Truss who I say I spoke to earlier this

afternoon when things were

looking pretty grim on the Australian market.

Firstly on the markets, it

has been another horror day

for shareholders, what do you

put this pessimism down to?

Well I think there is

growing concern globally but

also in countries like

Australia about the capacity

of governments to manage this issue, concerns about the

strength and vitality of the

world economy. In particular in countries like Australia

there is anxiety about the

carbon tax and what that's

likely to lead to as far as

the Australian industry is

concerned. All of those things combined to put an

element of pessimism in the

marketplace. And of course

the losers from this, the

people who are really most

anxious, are those who have

got superannuation funds,

those already living in

retirement who are seeing their standard of living being eroded as a result of this crash on the stock

market. So you think the

carbon tax, which doesn't

come into effect for another

12 months, is at least partly

to blame for what we are

seeing on the markets

today? It is one of the factors causing concern in Australia. People are worried

about the fact that our

economy is perhaps not as

strong as it could be and

then this is just the wrong

time to impose another heavy

burden on Australian

manufacturers and Australian

industry. The senior US

Congressman described what

Australia was doing as unilateral economic

disarmament. Now at a time

when we need all the help we

can get, when we need to be

growing strongly and

vigorously, when we need to

be taking every opportunity,

we are imposing upon

ourselves the harshest carbon

tax in the world. We are carrying another dead weight

that's going to make it so

much more difficult for the

Australian economy to regain

strength. The Treasurer has

now warned his ministerial

colleagues that return ing

the budget to surplus next

financial year is going to be harder but he remains

committed to doing so. That might mean therefore that the

government will have to make

deeper spending cuts. Is now

the right time for further

spending cuts or do you think

the return to surplus should

be delayed so there's more of

a cushion against the impact

of any downturn? Look, Labor

never delivers surplus

budgets, they were never

going to return the budget to

surplus by whatever date they

were talking about. And the

Treasurer's anxious to find

any excuse now to walk away from the promise that he

made. The reality is that

when you are making long term

projections you have got to

take into account the fact

that the times are not always good. Sometimes there are going to be difficult things

that happen around the world,

and sometimes of other sometimes of your own making

people's makes and when you

are making predictions about returning to surplus you have

got to take the bad times

into account as well as the

good. We still have the best

terms of trade that our

country has ever seen, we had

a government that inherited

substantial financial

surpluses and reserves, they

have all been squandered. If

the government has to take

new action now they won't

have the support that they

had the first time from the

savings left over from the Howard and Coalition

governments. The reality was

that we left this economy

when we left government in

excellent shape and that has

helped the Labor government

to work its way through the

first economic global

downturn. This time they

won't have that level of

assistance so it will be

harder for our economy to

recover than it was last time

around. If there is such a

need to rein in the debt and

get back to surplus, will the

Coalition also review some of

its policies, for example the

direct action, climate change

plan which will cost $3.2 billion, the paid parental

leave plan which will cost

more than $2 billion a year,

will you review some of

these? Well, governments

always have to look at their

spending and their programs

on the basis of the economic

circumstances at the time.

Now we are still potentially

two years away from getting back into government. And

question will certainly be

keeping a close watch on what

we will be able to do and

what we won't be able to do.

But we are committed to

direct action, we are

committed to a range of other policies, we are not walk

away from those. We are still determined to deliver on

those issues and to make sure

that we are able to achieve

an appropriate policy mix for

the nation. You are saying

there is a degree of flexibility around the Coalition policies? We always

have to review the - what we

are capable and able to do in

the light of the economic

circumstances at the time. We have made commitments, we

intend to honour those commitments. But we

acknowledge it will be difficult on coming to

government with heavy budget

deficits, with the debt that

this government has built up

over its term in office, it

achieve everything that we will be difficult for us to

want. But we have a record in

government of being able to

deliver good economic

outcomes even in tough

circumstances, we repaid

Labor's debt last time and we

will do it again. Would you

like to see the Reserve Bank cut interest rates when it

meets next month? Well, everyone always wants

interest rates to be just as

low as they possibly can be,

it's going to be important to encourage business in this

country to invest and to make

the kind of commitments that

are necessary to help rebuild

the economy. Interest rates

are one thing, a carbon tax

is another. Why put a $9

billion burden on Australian

industry and the Australian economy in economic

circumstances like this? It

just makes absolutely no

sense. So don't put all the

blame on the Reserve Bank,

they have a role to play but bad government policy is

contributing as much as

anything to our current

difficulties. Can I turn to the Malaysian asylum seeker

deal which is now on hold for

another two weeks pending a

High Court decision. If the

High Court decides this

people swap arrangement can't

proceed, will that have

implications for all third

country processing of asylum seekers, including the

Coalition's own plan to send asylum seekers to Nauru? Well, it's far too

early to to speculate what

the High Court might decide

in relation to a case they

haven't yet herd. The

government always said it

expected legal challenges to

the Malaysian solution, they

have now had those challenges but when they went to court

they were criticised by the

judge for not being ready to

deal with the issues. It's

another miss. Another case of

the government having not thought through its policy,

and then when the expected

legal challenge has occurred

they have no answers. Sadly,

this government will never

get its border protect policy

right and this is just

another example of them

having stuffed up in an

important Asia of policy. The

High Court is yet --

important area of policy. The

High Court is yet to make a

decision here. The legal

question is whether you can

guarantee the human rights of asylum seekers in a third

country. Can you guarantee

the human rights of asylum

seekers in Nauru? Well, in

owners of the facility and the case of Nauru we were the

the operators of the facility

and so Australia had a dprekt

responsibility in deliver --

direct responsibility in

delivering it the kinds of

care and support those people

who were living there

required. So when we have a

direct level of control we

have much more influence than

in the case of a solution

like Malaysia. As part of the

government's Malaysia deal

Australia will take 4,000

refugee from Malaysia despite

the legal limbo in the High

Court that is still going

ahead. The first arrivals of

refugees will happen this week. Do you support at least

that element of the policy,

increasing Australia's

intakes of refugees? Well,

Australia has always been

very generous in accepting refugees from around the

world. And that has been

going on now of course for

100 years. Many Australians

are disendants of people who

escaped from another country,

persecution or hardship in

another land so Australians

have been generous in the

past and expect to be generous again in the future

of taking our fair share of refugees, the people though

ought to be coming to this country are those who have

gone through the proper

assessed by the United processes. Who have been

Nations as meeting the

requirements, there are many

people who have been waiting

for years, who are already

approved to come to Australia

and of course their entry

into this country has been delayed as a result of the

people arriving by unlawful

means by boat. So the reality

is yes we will continue to

take refugees, we have

indicated in the past that we

are open to a higher quota than there has been in the

past but what we want people

to do is come here in an orderly fashion and that we

make the decisions about

those who should enter our

country. Thank you. Warren Truss talking to us earlier

this afternoon wealth. We

want to bring you up to date

what's boon happening in

London. Anyone who has been watching Sky News would have been gripped by the awful

scenes of rioting and

violence of cars and violence of cars and

buildings being set alight.

Gangs of largely youths

roaming the superbs and

places of London as eother

cities as well in what

clearly has been a situation

of crisis there. We have seen

the riot police trying to

restore some control in these

areas, but as London wakes up

it's about a quarter to 8 in

the morning now in London,

the mess is there for all to

see in their local suburbs.

The home affairs secretary

teria May spoke to our Sky

News -- secretary Theresa May

spoke to our Sky News

colleagues a few minutes

ago. The disorder we have

seen is at a level that hasn't been seen for many

years in the country. It is totally unacceptable. It is criminal behaviour we are

seeing, looting violence and

arson is sheer criminality

and we do need to bring an

end to it and need to bring

an end to it soon. We can do

that with robust policing and I will be be talking

obviously later to the police

this morning to make sure

they have everything they

need with the use of good

intelligence by the police

but also with the support of local communities too. I

think the figure of arrest is

now over 450, we will be

seeing people in court today,

as a result of arrests and

charges being made. So people

will start to see the

consequences of their

actions. And that's what they

need to know, they need to

know that this is not consequence free, that they

are acting, they are doing

criminal behaviour, criminal

damage, theft, through

looting, and that they will

be brought to justice. And as

you say, there are many who are easily identified through

CCTV cameras, as we speak

today police officers will be

sitting combing through CCTV

footage, they will be looking

and taking statements from witnesses, and they will be

following that up with

arrests. With arrests today and arrests which will then

lead to charges and people being brought to court.

That's what I mean by robust

policing which follows

through disburse ing groups

but also with action. The home affairs secretary

Theresa May talking to the

Sky News colleagues in London a few minutes ago. She has

returned to London as has

Prime Minister David Cameron

cutting short his holiday to

Tuscany, there will be a lot

of questions about the powers

a, the sort of police

response we have seen,

whether the powers are

adequate. One thing we do

know, that a year out from

the London Olympics this is

the last thing they need to

in their efforts to promote

the city and promote those

games. 12 months out and we

will continue to keep you up

to date with how things look

as London and the rest of the

UK wakes to these scenes after riots that have been

raging for hours and hours

now across the city. Stay

with us after the break we

will return and look at the

carbon tax debate with a group of organisations, friendly to what the

government is doing with the

carbon tax, giving they're

assessment of where they have got it right and where they perhaps need to work a little harder. Stay with us.

Welcome back. We will

return to the situation in

London. Joining us on the line Sky News reporter

Alastair Blunkell at Scotland

at the moment. It is nearing

8 a.m. there in London, what

can you tell us about the

situation at the moment, has

the violence and the rioting continued through the night?

Is it still under way now or

is it large ly under

control? I don't think the

riot is under way now. It followed a pattern as it has

down in the last couple of

nights where it has stopped

as it has got light. People

are going back to work as

normal. But, of course, a lot

of questions are being asked

now. Much more so than the

previous night as well. The

rioting was far more

widespread last night than it

has been over the previous 48

hours, the Prime Minister

arrived back in the UK from holidays, very early this

morning, the Home Secretary

has been on Sky News over

here, she

here, she is facing questions

as well, should the Army be

put on the streets, should water cannons be brought over

from Belfast, should there be

a curfew. These are all

things I don't necessary

think are plausible,

possibly with the exception

of the water cannon but they

are the questions that people

are asking given what they saw last night and will be

what's called a meeting here at Downing Street at Downing Street at this

morning in an hour's time

when it is held in times

national emergency, whether

for foreign reasons or for

domestic reasons and in this

case it will include the

Prime Minister, members of

the metropolitan police force

in London and senior members

from the cabinet to try to

decide what is the best

course of action today but one gets the impression they

really need to come out with

something pretty robust out

of that in order to satisfy

those members of the public

in London and further afield

who saw quite widespread

rioting last night. We saw

some of her comments to Sky News, she was obviously

saying there will be reviews

but defending the way police

have handled this. We have

also seen during the night a

lot of criticism from locals

about the way the police have

handled this. What's the

general sense you get about the attitude towards the

police, the way they have

handled this and can you tell

us what number of arrests

there might have been by

now. Let's start with that

last question. 450 arrests or

at least the latest figure we

are getting. That is expected

to rise throughout the day.

The plan will be they try to

round up as many people as

possible. In order to try to stop violence tonight they plan

plan to get people into the

courts today and charge them

and put them through the judicial system the best they

can do. In terms of criticism

facing the police, well when

you have widespread riots as

we did last night,

particularly in the capital,

popping up all over the

place, with no rhyme or

reason, are you bound to get

criticism of the police and

why they haven't done more.

Myself I was in Clapman where

I live last night and it

sprung up complete ly out-of-the-blue, I was joking

with my fiancie it would

happen down there because it

would never happen there but

it did. Police were not seen

for about two hours which

enabled around 200 or 300

young men and women to walk

into local shops, break the

windows and take very calmly windows and take very calmly

what they wanted out and take

it away. Electrical goods,

computers, tfls and the like.

But you know, the -- tfls and

the like. Police to be fair

were very, very stretched.

They were operating in all parts of left-hand-side last

night and when they got there

they did what they could but

I think there are questions

over the madages gathering

intelligence, whether they

could have -- gathering of

gellance whether they could

have foreseen the violence

and what kind of resources

they need and what they can bring in from elsewhere in

the UK to make sure it

doesn't happen tonight or any

other subsequent night. A

final question of those 450

arrests that have been made,

are they mostly kids, are

they mostly youths and this is the million dollar

question, what is motivating

this? Well, I would say

mostly youths but I would say

that only based on what I

have seen with my own eyes

and that is that most people

have been carrying out the

looting and rioting, not all

but the vast majority have

been teenagers, maybe in

their early 20s. What is

motivating it, it started on

the weekend, Friday night,

because the police shot dead

a man in north London in Tottenham but it spread far Tottenham but it spread far beyond that now. It is - that really cannot be related

to the sort of rioting we saw

last night in other parts of

London. I think it's

opportunistic. I think people

see an opportunity to frankly

go and grab a little bit of

loot without much recourse.

As I said, where I was last night they weren't being

stopped. At one point I

stopped by the side of the

road waiting to cross the

road, a busy road, waiting

for the traffic lights to go

for the traffic lights to go

red and there was to my right

a guy stood next to me

holding two very computers in

the boxes and he calmly walk

add cross the road and

presumably walked home. I think people are seeing

what's going on and they are

taking the opportunity to

come down and try to steal

stuff for themselves or

trying to draw any kind of political parallel maybe the

fact there is a disaffected

youth with the fact

obviously the UK as much of

the world is in a bit of a financial crisis at the

moment. There are massive

cuts being made to welfare

services, but I think on the

whole these are opportunistic

attack, and riots, and that

is partly the problem the

police are facing, there is no sort of direct

intelligence, there is no

rhyme or reason about the way

people are going about it.

Thanks so much for that and outstanding coverage from our

Sky News colleagues there in

London throughout the night.

Throughout the day here.

Before we go amidst all the

doom and gloom in the UK and

on the markets around the

world, some good news on the political front here in

Australia, Finance Minister

Penny Wong announced today

that she and her partner

Sophie are having a baby.

Sophie is pregnant due in Sophie is pregnant due in

December after an IVF

treatment, here was some of

the reaction today. Penny

Wong is a colleague of mine,

she is also a very long term

friend. So I am very pleased

for penny and her partner

Sophie as they look forward

to a new baby and the next

phase of their lives which

will be as parents raising a

new child. I think it's

great and I think it is

fantastic. I want to fantastic. I want to congratulate them and wish

them all the best. That's the

issue today I them well. It

is their life and their

business that's all you can

say is I wish them well. We

wish you well, I hope the

baby is healthy and happy and

we wish them well in their

parenting. Congratulations

across the board and from us

as well. That's all we have

time for. After the break the

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