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ABC News 24: 10am News -

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(generated from captions) This morning - the

Committee ville is in the detail. The Government is to ex

- the devil is in the detail. . We

decisions in our previous

decision left. Budget. There are no easy

This Program is Captioned Live.

Also today - high hopes jiptd after the first day post Mubarak election. jiptd after the first day of

Melbourne place prepare for more gang violence after

yesterday's brazen shooting yesterday's brazen shooting in

Brunswick. And securing success Brunswick. And securing success

- Charlotte Church tells

Britain's media inquiry she was

asked to waive her fee Let's look at the

Treasurer Wayne Swan

will announce a new round of

spending cuts as part of his

mid-year budget update, to be released today. The updated figures are expected to show $20 billion hole in government figures are expected to show a

revenues over four years. The Government is blame ing

Europe's economic problems for

the drop in revenues. The Treasurer says he remains

committed to deliver ing a surplus next financial

year. And joining me now correspondent Melissa discuss it is political correspondent Melissa Clarke.

Good morning, Melissa. Just how

has the Budget bottom has the Budget bottom line

deteriorated since May? We rex pecking it will have billion over four years. This deteriorated a

billion over four years. This

is on top of more than $100

billion of write-down since the global financial crisis

global financial crisis that

the Federal Government has

faced with Budget being hit lerve you downgrades. It could faced with Budget being hit by

be a very significant hit to

the deficit level for this financial year. In May they

were forecasting it could be a deficit of around 22.5 billion.

That could well be over $30

billion hen the final figures

are announced in about an

hour's time when we finally get our hands on what the numbers

actually. Are but that gives

you an explanation or an extent

of just how much this is

hurting the Government and how

much extra savings they are

having to find. We rex the Federal Government to stick having to find. We rex pegging

to its commitment to return the

Budget to the black next

financial year. It had forecast back in May it would be

get a surplus of $3.5

in 2012-134 it might become much smaller than that as the

Government look force savings

and derals to try to reach it but the Finance but the Finance Minister Penny Wong has defended moves for the

Government to stick to that

self-impoesds deadline for

it is not just a political getting back to surplus, saying

target there is an economic

need for it. That is what she was explaining at Parliament

House this morning. And I think

when you look at the global

economy, you get a very clear

view of what occurs governments are committed to

fiscal discipline. We see in Europe, financial passing very harsh judgments on Europe, financial markets

governments that aren't able to

ensure their budge Budgets are ensure their budge

on a sustainable footing. We will ensure that but equally we will

will also ensure we support

job, we continue to support

Government has been pointing economic growth. And the

the finger at the European debt

crisis, is that the main factor

in these revenue difficulties? It's the most

affects Australia on a significant one because it

Australia lost a lot of revenue of fronts - not only has

in terms of capital gains tax because the share market has been much lower than been much lower than evenlg expected over the last six to 12 months. With also have lower

company tax to some company tax to some extent

because Australian #k35e7bs

particularly those that de vief

derive a lot of revenue from overseas are not getting the

market or the growth they might otherwise have expected. otherwise have expected. So there is a big even you there is a big even you hit

there as a direct result of the

crisis that is enguxing Europe at the moment. There are other Budget in May, we have had the elements as

Government make announcements

and leave more detail about things like the carbon tax

which will see household which will see

assistance being paid out before the ing mechanism kicks into gear before the actual carbon price

mids mid-next year. That is a

cost that's had to be factored into the Budget bottom line since May last year and a

number of other factors but number of other factors but the

European debt crisis by far is

the one that's caused the Government the most headaches

in the last six month >>msd and

the OECD has released

latest economic outlook. And

that has some Some positive

news for Australia of news for Australia of sorts? It

certainly does. It finds that

Australia will do and is comparatively quite well

compared to the rest of the

world and other OECD nations. It points to

Australia's successful mining

boom and its export trade and

good terms of trade that's been

positive factors. They think the Australian economy will

grow next calendar year, so in

2012 in the order of slight downgrade that their

earlier estimate. That is roughly a strong er forecast

than the equivalent of what Treasury and the Reserve Bank of Australia are expect ing terms of growth. It does terms of growth. It does have two noted elements that are potential negative for Australia. It points to the Australia. It points

continuing strength of Australian dollar which makes continuing strength of the

it hard for some export industries. It also points to fiscal consolidation as being a potential neg thaif. That is the Government bringing the Budgetet back to surplus. The OECD is here

quickly to come back Government is rush ing too

quickly to come back to surplus

and risk pulling too much money

out of the economy and having a contractionary effect. contractionary effect. That is

something the OECD is asking the Federal Government something the OECD is kilogram

cokeep in minds. And the OECD's

global prediction will do letle

le to improve the mood in

Europe where there is still no

concrete plan for tackling the

debt crisis. Phil reports.

There was no surprise but it was still the same - the OECD predicting

the Eurozone is sliding towards

recession. With Britain and the

US not far behind. The

situation in the euro area is

rapidly detaryiating and contagion is spreading. Polity

continuing to be behind the curve. And warns the OECD the

situation will be made much

worse if a country defaults on

its dents. That will trigger

if nothing is done to stop it significant negative impact which could take different steps, hitting the euro area itself. But also other areas. The Paris-based OECD has urged urged the European Central Bank

to cut interest rates and to cut interest rates and buy

more bonds in struggling yushz

countries, effectively printing

money. Something that German Government is strenuously resisting. Another proposal to

establish a 2-tier bond market

in the Eurozone to protect the strong er economies strong er economies isn't finding much favour either. Trying to divide even

the 70 members of tu rowary yands have them organised into

different grupings seems to be

a very bad a very bad idea. The British economy too is heading for recession. The OECD says there

will be a slow recovery later

next year. The Government is

trying to stimulate growth trying to stimulate growth with a raft of multibillion-dollar

business and housing

initiatives. But no-one is

pretendsing the worst is over.

I think it's the right thing

to do at a time like this. We

have to take our country through We have to weather the storm

and lay the foundation of

future economic success. If the OECD is right, then unemployment here in Britain is

set to rise and not fall till 2013. While that is a political

liability for the Coalition,

far more importantly it's a

hardship for the millions

looking for jobs that simply won't exist. Despite won't exist. Despite dire predick, Egypt's first free and fair elects have got off to a

good start. After last week violence protests the mood was

much more relaxed in Cairo and other parts of the country for today's poll. Millions of have

made their way to polling booths as Middle East correspondent Michael Vincent

reports. Making history - one finger at

finger at a time. Old and young, mothers ABC daughter, some casting their first voe.

TRANSLATION: This is the first time I came to the time I came to the polling station to elect someone. I am

66 years old and I now believe

my vote will go to the right place. There were long lines

for polling stations. But there

was calm. Even those give

orders with good natured. Some

polling stations didn't open on time but otherwise it went to

plan. It was a heady mix of

patriot ism and TRANSLATION: I love Egypt . I

love Egypt too much. May God

make Islam win.

TRANSLATION: I tell my children

to go and vote. It's for their

future so they can see liberty

and have a better chance than

us. And the young have turned out.

TRANSLATION: I voted in 2010

and it was very bad. There was

bribery. I saw hands. Thank God this one is different. There's still protesters in Tahrir Square,

and no-one is forgetting why

this vote is taking place.

TRANSLATION: Thank God this

election is much better than

before. Mercy upon the martyrs

who died. They are the ones who

urged us all to go out urged us all to go out and vote. If today's turnout vote. If today's turnout is

anything to go by, the first

free and fair elections in Egypt

Egypt is off to start. But now it's for the

security provide today to

continue in the week ace head.

2 a United Nations report has accused Syrian Government

forces of committeding crimes against humanity. An independent panel independent panel interviewed

more than 200 pict ims - vict, witnesses and defectors.

Inconcluded the military and

security forces had committed

crimes. More than 3,500 people have reportedly died in the

violence since March. Police are continuing their search this morning for this morning for the gun Plan who shot a - gunman who shot a

man. It could spark a man. It could spark a round of

gang violence. The man known as

the enforcer of the Bandidos motorbike gang motorbike gang was shot repeatedly in a car park in the Melbourne suburb of Brunswick.

Detective s are slowly piecing

together the clues. Late last night the police night the police were called to

a suburb near Parkville and

there's speculation it could be

a getaway car. We were called to a car to a car fire and we found out

it was abandoned. The car was

going well when we arieftd. After we extinguished the fire

and we searched for

registration plates and it's registration plates and it's a

stolen vehicle. The police

suspect it's been involved in a previous crime in Brunswick.

There There is talk the man with links to Carl Williams. 37-year-old Toby

Mitchell is fighting for Mitchell is fighting for his life in life in the Royal Melbourne Hospital. The incident Hospital. The incident follows another rival gang the comcheerios at

the weekends. Is a British the weekends. Is a British man arrested then released without

charge over the murder charge over the murder of

Joanna Yates has spoken of a media witch hunt against him.

At the hefson - Leveson inquiry

into press standards he said he had been shameless ly vitfied. Christopher Jeffreys

is the figure on the left here

has changed his appearance

since his image appeared unwelcome

unwelcome attention a year ago.

This is how he looked This is how he looked last December when he over the murder of Joanna yaits. Christopher Jeffries was innocent but his reputation innocent but his reputation was

torn apart by the bres. The

whole slantding of the

reporting was intended to be as

sensation al, as

as titlating and to appeal in every possible way to people's

vuristic instinct. The stories about him were so that when he was released that when he was released by police he had to go into hiding. For a period after I was was released, I was effectively under house arrest. And went

from friend s to friend s

rather as if I were a priest at

the time of the reforation, I to safe house. Charlotte

Church has been in the public

eye since she was a teenager. The singer The singer describes how she had been asked had been asked to sing at the

wedding of Rupert Murdoch.

According to Ms Church he was

offered a fee of $100,000 or a favour of positive coverage of

her career. I remember being told that the offer of told that the offer of many or

the offer of the favour - money

or the offer of favour to get

good press to be looked upon favourably as favourably as it said in the statement. News International

said it had no recollection of such an offer. Charlotte Church described years of press inintrusion, the

had an an exposy on the norlds of her father's private of her father's private life

and the impact had it had had

on her mother's health: Iment I

just really hated the fact that

my parents who had never been

in this industry apart from in looking looking after me were being

exposed and vilified in broadcaster Anne Diamond who recalled the cot death of her son Sebastian. She and her son Sebastian. She and her then husband asked journalists husband asked journalists to

respect the privatesy of their funeral. They rang and said we

have an picture. An it's have an picture. An it's an

incredibly strong picture. We

would like to use it and would like to use it and my

husband said,, no we've asked

all of you to stay away.

No. And the editor said we're

going to use it anyway. The

inquiry's heard for

they've been victims of the

press. Tomorrow it will move on

and fear from a former tabloid

reporter who became dis ill

used at what he was asked to

and a 'Guardian' reporter who

more than anyone exposed the scale of the phone hacking

scandal. Let's check the

markets now with Alicia markets now with Alicia Barry.

The markets building on yesterday's solid start. That

is right. We saw global markets rally

rally as European leaders drafted framework for a bail-out fund for

bail-out fund for the region. Investors are hoping European leaders will plan that involves more

government restraint and guarantees for bonds issued by debt stricken countries. debt stricken countries. The futures market was pointing to a gain of a gain of just over half a per cent at the hope open and the market is trading a market is trading a little below that now. If we have a

look the All Ordinaries Index

is up 0.4% and the ASX 200

index has added around the index has added around the same amount. On Wall Street, the Dow Jones industrial average jumped 2.6%, the technology focus

Nasdaq index rallied European markets enjoyed even bigger gains after having been

sold off for the best part of

two weeks. London's FTSE 100 index gained 2.9%, Germany's

Dax added 4.5% and France's CAC

jumped 5.5%. On commodity

markets and spot gold is edging

a little lower. West Texas

crude oil has jumped on hopes

of a solution in Europe and

Tapis crude in Singapore Tapis crude in Singapore closed

a little higher last night. The

Australian dollar is following equity markets higher. currently buying 99.1 US. The

expectation that European will take decisive steps this week

to resolve the debt crisis also lifted metals prices overnight.

At one stage, copper surged 4%,

its biggest single day increase

in a month. The 3-month copper

deliveries on the London metals exchange reached a high of 7535

dollars a tonne during the session. Copper's session. Copper's future prospects could hinge on prospects could hinge on a solution in Europe even as China's consumption China's consumption remains steady. The CEO of Rio Tinto Tom Albanese says the China growth story still has a long

way to run. Many experts on

China have concerns about the housing market and housing market and the banking system there.

system there. But here some of what Tom Albanese has to say on Royo's predictions for

China. We have a strong team of economists and business economists and business people

in China who are look at those

markets not only the markets in

Beijing and Shanghai which have

been largely built up in some

cases overbuilt, but also those markets in the inner see quite a bit of growth. So see quite a bit of growth. So I

think if you look at China from a countrywide perspective, in

any events we would expect a

slowing off in the rate of

growth in 2013 12 and 2000 13

than we would have seen over

the last - past couple of

years. That would be consistent

with our long-term thinking of

growth. That was the CEO of Rio Tinto Tom Albanese speaking

there. Troit toita has unveiled

its latest car in Tokyo. A its latest car in Tokyo. A futuristic futuristic model resembling a smartphone. It allows drivers

to connect with each other

through a touch on the door

panel or an car interface. While it is not available to purchase just yet - an example

of what is to come. More from

the markets in about an hour.

Now let's look at the major

sports stories of the day.

Steve Pearce joins u us. Australia is pondering its

bowling line-up for the first

Test? Yeah, this is the generational change that's been

a little bit forced on Australia

the injuries that have come into play over the last week or so. Which has brought in three new bowling faces into the

line-up. Two of those will play - Ben Cutting, James Pattinson

and Mitchell Starc are the

three bowlers in 2ism the mix. three bowlers in 2ism the mix. It really just depends on

whether they go for the left

arm of Mitchell Starc or the local lad Ben Cutting. James

Pattinson seems likely to play. But that is what they're tossing

tossing around: David Warner

has come into the side and he will play at the top of torder.

Shane Watson is out of the side with injury. But Ricky with injury. But Ricky Ponting

is one man, Nick, who is really short of short of run, has been two

years now since he last scored

a Test century nearly and for a

man who has been so scored such a mountain of runs over a mountain of runs over the years, it's really, really poor

form slump. He nose having

given up the captaincy last

year, he earlier this year he ois coming into the Australian

summer not as captain he has summer not as captain he has to concentrate on his battling he showed some science of coming back into form in the

second dig in Johannesberg, but

he nose I think it's time to

score some hundreds and score

some consistent runs if he some consistent runs if he is going going to solidify his place in

the team for a few more year s yet to come. I've had near lay

week off. So today is the first

hit after the second inns in Joeberg

Joeberg I felt like I made Joeberg I felt like I made a bit of progress. bit of progress. I know I have to be a consistent run scorer

and I haven't been there for

tha for a fair while fi. Want

to seep keep in the team I have to score more heavily . Is it

crazy to suggest that age has

anything to do with it? There's a lot of older blokes around

the world still playing the world still playing well - and Tendulkar, Dravid and

Kallis. I don't think age has

anything to do with it. I think anything to do with it. I think

that's been proven over a long period of time. It period of time. It certainly

is going to be an interesting

couple of days as we build up towards this first Test match

as the wi which Kiwis in some

decent form. It will be

interesting to see if Ricky Ponting keeps up the roll call of players older than of players older than himself as we go into the

future. Berrick Barnes is

looking set to play for the Wallabies against Wales Wallabies against Wales this weekend? That is the word that

seems to be coming out of the

UK at the moment. It was a

nasty looking back injury

coming off against the Barr

barrians last weekend. Barnes

tha was the match at which

James ooh Connor played well James ooh Connor played well so as number 10. Australia ran in

a million tries you, ku ge

Genia there playing well Genia there playing well add well and well and O'Connor. It was a

very good performance by Australia but it was an

invitational side. This is a

much tougher ask against at the million yam Stadium omming up - millennium Statium

coming up this Saturday. I

think they would like Barnes in

that line-up. He is definitely in their best 15 at the moment.

It could be a big - would be a

big boost for Robbie Deans as

they build for the next World

Cup in four years ago. They still have the British and

Irish tours coming up. Irish tours coming up. So

there's a lot to build for. This is the start of it be a crucial part of this team

as long as he can take the field on

field on Saturday. And if he

does, it will be a good game,

no doubt. Lit's tourn the A-League

Victory have been hitting the exercise bikes it seems and

they're climb got their season

back on track? It looks like

it. That is what they're

saying. The win itself came

over Gold Coast United who are

rock bottom of the A-League at the

the moment. But the rest of the

league is so crunched league is so crunched and

bunched up in well behind Brisbane Roar and a fair that you can literally leap

from ninth to third with one win. That is win. That is what happened Melbourne vuctsry at scored a goal and

scored a goal and we wait with

bathed breath for him to score

at open play. Lease been a lot

of conjecture about whether

that star power and bringing in

in his own personal coach in his own personal coach into

the set-up has maybe unstld

dressing room a bit and it's a new coach as new coach as well. Really

Melbourne Victory needs to

consolidate in the form of some wins

they drop points it putting & s an enormous amount of presh

ouvern the Kewell situation and

the new coach situation. Yes, certainly the players are talking up the fact that got a win and now got a win and now they're going

to build from here. They have

Newcastle this weekend and the

coach should noefr about

them. In the end you have to

win games. Very much so. Thank you, Thank you. And Vanessa O'Hanlon is

O'Hanlon is here now to take us

through what is happening with

the weather today. And there's

fire warnings in some

sthaits? There. Is hot north to

north-westerly winds ahead of north-westerly winds ahead of a

trough. There's total fire ban in the Northern in the Northern Territory for the Alice Springs drict, also

in virct for the mallee and the

Wimmera in the North west. For SA, extreme fire condition

force the north-east pastoral

district a lot of severe district a lot of severe fire

warnings for the York pe ninss

la and the lower south-east. We

also have one for the

riverland, the Murray lands, north-east Flinders eastern Eyre pe Flins la. conditions are ripe with these

conditions. Are we likely to

see fire risk in any of the

other part of the other part of the country? Over the coming days we may. We expect these hot north erly

winds to move into NSW and Queensland Queensland tomorrow. We have the

the high pressure system system that is developing off the

coast of NSW. What - WA. coast of NSW. What - WA. This will bring former temperatures to

to WA's south-west tomorrow. to WA's south-west tomorrow. We

expect not only an increase in

temperature but also some dry

easterly winds. They will turn into into annest easterly direction. On Sunday, we will see a cool

change moch there through. But

we will keep an eye on that one

as well over the coming days

due to the recent activity over there in the south-west. And

that big diagonal line that big diagonal line through the middle of the continues

innocent produced by the two

lows that is bringing the rain

the eastern State also see? We

is have the main re behinds

it. There behind this we have Queensland and NSW and into

Victoria's east. It will move quickly into the north-east of

NSW on Thursday. The frontal

system also moving behind it will affect mainly Victoria will affect mainly Victoria and Tasmania. That Tasmania. That is very rapid

moving as well and will clear

off to the east by Thursday. A main areas central Queensland

down to Tasmania, rain

tomorrow, then Queensland and

NSW on Thursday. By Friday, we

should have much clearer

conditions with most of conditions with most of the ability affectivity moving up ability affectivity moving up to the towards the tropics. Take us through the

rest of the day's weather. For

Queensland we expect rain with a throughout the central coast. We will still have some showers

also in the also in the south-west

developing in that region and

again up in the tropics as well. In NSW, more showers

across the east, mainly about

the central west Plains and slopes. Very hot

across Victoria today with North to North westerly winds. The change is due late The change is due late this afternoon in the south-west, so

we will see cloud developing then. Should reach the central districts districts around midnight and

over to the east morning. For Tasmania, morning. For Tasmania, showers

about the north and west. about the north and west. They will increase throughout tloutd the day. 27 in Melbourne-to-Hobart Melbourne-to-Hobart hoentd. Very warm conditions as well.

Very hot in SA, heading 39 degrease

39 degrease for Coober Pedy. Shires long the South Coast and

they will extend to far south-east by tomorrow night.

In WA with that stront frontal system moving through, a few

showers in the southern coastal

district. A fine day with 25

degree s in Perth. In Perth, degree s in Perth. In Perth, a

top of 37 degree force Port

across Darwin. Looking a head to tomorrow:

The controversial film

director Ken Russel has died at the age of 84. Perhaps best known for known for the film adaptation of of DH Lawrence's novelwomen in

love Love, he also directed

Devils, the Boyfriend and the

musical Tommy: Ken Russel's port trait of

the composer el guard, one of a series of acclaimed arts

documentaries he made for the

BBC in the 1960s. Hoe they were

beautiful to look at, seductive to listen to and to listen to and they marked

him as a film-maker of talented and some said Camera speed. Mark Camera speed. Mark it, 339 take one. At the BBC, he

learned his craft as director

and developed his trade mark style - flamboyant and visually

extravagant. He moved into

cinema where his second major

feature, women in Love was acclaim as a master piece. We shan't is no knowing where they

are. Accuse me of expose ing

political chi cany and I would

plead guilty. But as time went

on his film s became more

extreme. The Devil ereflected

his fasnate with sex and

religion and was widely

panned: I started to make films

at that time, around '71, '72 and he also disturbed me

whether you liked it or dis

liked it and you had a strong

reaction to the work way. And this is rare. Tommy made in 1975 was typically overblown. It followed more than 30 years in which his progressively less successful

and the difficulties he faced in financing them in financing them progressively

greater. I sent a script to

greater. I sent a script to

Channel 4 the other day and Channel 4 the other day and it

eventually came back about six

months later signed by somebody

I had never heard of, a totally unknown to me saying, 'Thank you for your 'Thank you for your #1cri79, it

is not cinematic enough. Prts

'. Inarily went mad! Not cinematic enough from me! He

was and his films remain the

work of a genius. As a genius,

he was extraordinary and, like

all genius, sometimes his films were much less than

were much less than genius. Action. Music. Better to remember his successes like remember his successes like the musical the Twiggy. A reminds they're Russel, however self-ib dull gent and undisplinds gent and undisplinds he

sometimes was could s will wonderfully entertaining.

Our top stories this morning

- the Federal Government is dismissing warnings from some economists against making too

many spending cuts to achieve a surplus.

surplus. Labor's budget update

is due out this afternoon. It's expected to reveal that

contributed to a blowout contributed to a blowout in this year's deficit to around

$30 billion. The Government $30 billion. The Government is still aiming for a modest

surplus next financial year. Police are investigating Police are investigating whether there's an organised crime link to yesterday's shooting at Brunswick in