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ABC News -

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Tonight - another day, another

media shake up. Now News

Limited announces a major

reorganisation. Julian Assange

looks set to Ecuador for safe

haven for extradition. One

man's victory, of sorts, over

the school chaplaincy program.

And an outbreak And an outbreak of whooping

cough at the AIS pool put

Olympic preparations on hold.

It is just a precautionary

thing with our team. We're

getting close to the Olympics

now, only 40 days out, so we're

not going to put anyone at risk. Good evening, Craig Allen with ABC News. Australia's media

landscape has been rocked for

the second time in a week. News Limited has followed

Fairfax in announcing a major

restructure. Jobs will be

slashed as news consolidates

and moves further into the

digital era. It's also

announced it wants to increase

its stake in pay TV, offering

$2 billion to James Packer for

his interest in Foxtel. Ben

Worsley reports. As if to prove

the point, the news was delivered to

delivered to staff online. We

must change to create a viable

and sustainable future. After a

six month review of News

Limited, Kim Williams is

consolidating. The 19

divisions in the eastern States

will be folded into five.

National coverage will be

streamlined. Digital media

integrated with print. Unlike

at Fairfax, no printing presses

will close. In adopting this

national model we will be

ensuring we work as efficiently

and possible. Regrettably,

this means we will have to make

a variety of positions

redundant. Just how many,

though, isn't clear. We don't

want people, particularly in

the current climate of the

media market, left hanging

uncertain of their futures. The

number cut will be large, but

news says it won't be the 1900 announced by Fairfax. People

are still going to be worried

for some of their jobs,

obviously, because we don't

know who or when, but I think

there's an appreciation among a

lot of the staff, maybe not all

of it, that there's some need

to move with the times. The restructure announcement

coincided with another, a $2

billion takeover bid for James Packer's Consolidated Media

Holdings. If approved, it will

give News a 50% stake in Foxtel

and all of fox sport. These are

great assets. It is changing

the company, if you like, into

a real merger of a multi-media

outfit. For his part, James

Packer appears keen to continue

offloading his media assets.

In a statement he says:

The changes don't stop

there. News Limited has bought

the website Business Spectator

and investment newsletter the

Eureka Report, both owned by

the ABC's finance analyst Alan

Kohler. Staff at the 'Canberra

Times' remain in limbo over

what cuts they face as part of

Fairfax's radical restructure. Employees were today briefed

about the company's

announcement to axe hundreds of

jobs, close two printing

presses, introduce online

subscriptions, and downsize

some of its broadsheets to

tabloids. Little was revealed

about the impact on the

Canberra publication except

that some jobs will go. They

were clear about that, that we

would be expected, like the

other news rooms, to shed some

staff although it was

acknowledged that

proportionately it would be

fewer because of our size. Ms

Metherell says more will be

known next week when Fairfax

releases a review of its

metropolitan papers. There's

been an extraordinary twist in

the Julian Assange Zara. The

Wikileaks found seris seeking political asylum in Ecuador.

The move follows his failed bid

to avoid extra tition to Sweden

on sex crime allegations. He's

taking refuge in Ecuador's

London embassy where for now

he's being offered protection.

Lisa Millar is outside the

embassy. Julian Assange remains

inside here in the embassy.

There's not a lot of

information coming from

officials here. Even his supporters were caught by

surprise. They're all still

trying to absorb what this

latest twist in the

Philippa McDonald reports. long-running saga means.

Less than a week ago, London based Julian Assange failed in

his bid to stop his extradition

to Sweden where he faces

charges of sexual misconduct.

His supporters say he feared it

was the beginning of the

end. He faces the realistic

prospect that he'll thrown in jail in Sweden until the

Americans get their hands-on

him. Julian Assange believes

the United States has already

indicted him for divulging

state secrets although there's

been no confirmation of that.

But last night he sought refuge

in a friendly country. I can

confirm that today I arrived at

the Ecuador Dorian embassy and

sought diplomatic sanctuary and

political asylum. TRANSLATION:

It is a very delicate matter

and I believe that it is

important Government of Ecuador analyses evaluates and studies

the application. While Ecuador

does have an extradition treaty

with the United States, it

doesn't include those wanted on

political charges. Earlier

this year, the rapport between

Assange and the country's

President, Rafael Correa was

on his evident in an interview he did

on his television show. Welcome

to the club of the persecuted.

Thank you. Take care. This

is the last desperate effort

because he's a political

prisoner, but I hope the

Ecuador Government gives him

his asylum. It is shameful

that it's got to the stage that

an Australian citizen feels

that they have to seek the

protection of Ecuador because

the Australian Government is

not doing enough to ensure their safety. Today the

Government was denying

accusations it had sat on its

hands, resulting in Julian

Assange having to take drastic

measures. He's received more

consular assistance than any

other Australian in a

comparable period. It surprises

me that he would think that

Ecuador would provide him with better protection but that's a

matter for him. In this case,

the two main political rivals

agree the government has done

all it can. The Ecuadorians

have promised to review the

application and speak with the

US, UK and Swedish governments.

There's no clear idea on a

timeline for that. There's

also no idea what happens to

the 370,000 dollars in bail

money put up by Julian Assange

supporters. Leaders of the

world's most powerful economies

have laid down a plan to help

limit the financial contagion

from Europe. The G20 Summit

has ended in agreement to

stabilise the Eurozone and to

contribute more money for the

International Monetary Fund so

it can shield poorer countries

from the global slow down.

Chief political correspondent

Mark Simkin reports from Los

Cabos in Mexico. Lock 20

leaders in a room for two days

and this is what they come up

with, the Los Cabos action

plan. The leaders have pledged

to take all necessary steps to

stabilise the European and

world economies but they have

to say that and they always say

that. Still, the leaders are

talking about progress. There

are going to be a range of

steps that they can take, none

of them are going to be a

silver bullet that solves this

thing entirely over the next

week or two weeks.

TRANSLATION: We reached

compromises for various things,

to confront decisively the

situation in the Eurozone. The

community Kay doesn't make any

reference to Julia Gillard's

Australian Way, but it does

endorse many of the things she

has been pushing for. The

country's have agreed to chip

in $450 billion to help the IMF

contain the Eurozone Chrissy.

Some of the European countries

have pledged to integrate their

banking systems although the

language around that is

ridiculously vague. The G20

supports Europe's intention to

consider concrete steps, it

says. Julia Gillard reckons

the main take out from all of

this is just how well the

Australian economy has been

performing and some of the

other leaders seem to

agree. Their common response is

to sigh with a certain degree

of wit full envy. It has been a

strange G20 held in the shadow

of a resort that bills its as clothing optional. Julia

Gillard is on her way to Rio

now for a second summit. That

one is on sustainability

development although green

groups don't expect any

sustainable developments.

They're already calling it an

epic fail. This is Mark Simkin

in Los Cabos, Mexico, for ABC News. Meanwhile in Greece conservatives are moving closer

to forming a Coalition

Government before today's

deadline. The new Government's

first priority will be to get

back on track with reforms

promised for an international

bailout. From Athens here's

Europe correspondent Phillip

Williams. If all goes to plan

this should be the last meeting

before the announcement of the

Government. That should

consist of New Democracy, Pasok

and the democratic left. That

smaller democratic left party

appears to have had the biggest

problems with negotiations. It

might be more about personality

than politics. TRANSLATION:

Of course there's an issue

concerning the trustworthiness

of certain people because the

trustworthiness of people is an exceptionally important

issue. From the beginning, New

Democracy leader Antonis

Samaras, likely new Prime

Minister said, he wanted this

done quickly. We're into day

three now. If negotiations

aren't concluded by the end of

today, then we're back to the

chaos and the uncertainty of

the last few months. Nobody

here or abroad wants that. A Queensland father of six has

scored a victory of sorts in

the High Court over the school

chaplaincy program. Today the

court ruled in his favour agreeing that the way the

Government paid for the program

was un Constitutional. The Federal Attorney-General says

she'll find a way to continue

the scheme. However, the

ruling has wider implication

for other government funding

including local government

payments. A victory for the common common man. Queensland father

Ron Williams took on the full

force of the Commonwealth in

the High Court and won. It is

quite surreal. Everything to

do with this case has always

been surreal. It is something

of a hollow victory.

Essentially, the court ruled

the Government should have

passed legislation before

funding the program and that is music to the ears of some. Today's decision is not

the end of chaplaincy. Instead, it means a Instead, it means a new funding

model is needed. Sphwht

Federal Government remains committed. We're absolutely

confident that we have got a

range of options which will

allow us to ensure that the

program that was invalidated by

this decision, the chaplaincy

program, will continue. Whether

that's by legislation or other means the Opposition is on

board. I think it would be a

real pity if this program

wasn't able to continue. The

real problem for the Government is

is that the decision may have

changed the rules for how the

Government spends money.

Legislation or direct payments

to the States may now be needed

to fund a variety of Federal

programs. Governments of both

persuasions over the past years

have relied on a very broad

view of the Commonwealth's

spending powers. There has been

too much discretion if you like of of the executive to be giving

out money all over the country

without it going through the

Parliaments. But as things stand, no school chaplain will

be out of a job soon.

Elizabeth Byrne, ABC News,

Canberra. Egypt Egypt is in a

state of tension as it waits

the result of its first

presidential elections since

the overthrow of Hosni Mubarak.

There are concerns that the

military, which has ruled as a

caretaker government since last caretaker government since last year's revolution, is

sabotaging election results in

a bid to hang on four. Adding

to the confusion are con anything reports about the

death of the former

President. All along it was

feared that the Egyptian army's

promise to sphere the country

safely towards democracy is was

too good to be true. Those

fears have turned to anger.

The military council has dissolve the new dissolve the new Parliament.

Now it's stripped the

presidency of its powers while

greatly increasing its own.

These protesters believe the

army has no intention of

handing over power to a

civilian government.

TRANSLATION: We came here to

demand the Supreme Council of

the Armed Forces to hand all

its power to the elected

President. It is not yet clear

who that will be. The result

of Egypt's first presidential

vote since the revolution is vote since the revolution is

expected tomorrow. It is a

struggle between the Muslim

Brotherhood candidate and a

former Prime Minister of the

Mubarak regime. Both are

claiming the lead. The

brotherhood supporters say they

will win and that the army is

simply nobbling a result that

it doesn't want. TRANSLATION:

If the military council insists

we will stay here in the square. In the midst of the

crisis, Egyptian television

suddenly reported that the suddenly reported that the

former President, Hosni

Mubarak, was clinically dead.

There were celebrations in

Tahrir Square. But the

military council quickly denied

the reports. Even so, it is

not clear exactly what the former leader's condition now

is and he still has many

supporters. TRANSLATION: He

did many good things for the

country and we will not forget

his deeds. Hosni Mubarak's death would

death would mark a turning

point in Egypt's revolution, a

symbol lick final end to the

old regime of which the army is

very much a part. Knowing who

to believe is as difficult as

ever. After two days of talks

in Moscow Iran and world powers

are no closer to a breaking the

deadlock over its nuclear

program. The European Union

says Iran must stop enriching

uranium that could be used to

build a nuclear weapon. In

spite of looming new sanctions

and the threat of a military

strike, Iran is still insisting

it has a right to a peaceful

nuclear program. Moscow correspondent Norman Hermant

reports. In the latest round

of tortured negotiations over

Iran's nuclear program, this

wasn't progress. But at least

it wasn't a collapse. The

fact is that they did begin to

address the substance for the

first time. But there's a

very, very long way to

go. Iran's chief negotiator

agreed calling these talks more

realistic but still far from

any common ground. The only

agreement was to keep talking

about technical issues next

month. In the face of

tightening sanctions due to

squeeze to Iran's oil sales,

the President a regime has

refused to backdown on its key

demand, the recognition of its

right to enrich UNSMIS for its

nuclear program. The longer

the confrontation goes on the

more real the threat of a

military strike against Iran by

Israel or the US becomes. Any

act of war, some analysts say,

could quickly spin could quickly spin out of

control. If there would be no

war between Iran and USA no, if

there war, it will be regional

war. Iran cannot reply

directly. In instead fear the

Kremlin Iran will respond

indirectly through proxies in

Lebanon, the Persian Gulf and

Afghanistan. That is a bad

scenario for Russia with its volatile volatile Caucasus republics and

the west. Moscow and the

western powers share the same

goal, stopping a nuclear armed

Iran. But between Iran's

defiance and the threats of the

west, a breakthrough is nowhere

in sight. Norman Hermant, ABC

News, Moscow. The earth moved

for Victorian last night with

the state experiencing one of

its biggest earthquakes in

recent history. The epicentre

of the 5.4 magnitude quake was

in Gippsland 16 kilometres

south-west of Moe. But it was

felt in Melbourne and as far

away as Bendigo and Wodonga.

There were no reports of

injuries. Authorities received

hundreds of phone calls, but

fewer than 50 people needed

help. This was the moment

Victoria shook. Walls of food

collapsed, staff at this fast-food restaurant dived for

cover and in homes all over

Gippsland, residents got a good

fright. Oh, I was in the

shower there and just, you

know, washing away and all that

and next thing the whole house

is moving and I thought what

the hell is going on here. At

this Moe supermarket there was

no shopping for early birds.

Inspectors were called in to

assess structural dam ink N

Morwell it will be days before

these aisles are cleared and

shelves are restocked. Initially when got

the phone call and say there

has been some damage you don't

envisage how much it was. It's

just difficult to comprehend really. Authorities received

almost 1000 phone calls but

only about 40 people needed

their help. Measuring 5.4 on

the Richter scale it was one of

the biggest earthquakes

recorded in Victoria in the

past century and there's

unlikely to be another like it

for the next 20 years. We

didn't know what is coming last

night but we did know that this

area is prone to magnitude five

earthquakes. 150 kilometres

away, Melbournians also

experienced the tremor. Sitting

on top of a washing machine,

that was what an it was like.

It was just this moderate sort

of tremble across the whole

building. I was teaching on the

second floor and the students

said it's an earthquake, on a

said no it can't be an earthquake because earthquake because Melbourne

don't doesn't have earthquakes. For others it was

a piece of cake A friend of

mine and I were actually in

dessert at a cafe and she sort

of went do you feel that

shaking? And I said yeah and

then we just finished our

cake. Across the State the

clean up may not be so sweet. sweet. Australian scientists

have taken a big step in the fight against fight against HIV in the Third World, currently millions of

people are missing out on

anti-retroviral treatments.

Researchers say a new cheap and

easy to use test will change

that. It is the culmination of

six years work for scientists

at American burn's Burnett

institute. They've developed

affordable and I'm pull test to

work pout when patients should start anti-retroviral

treatment. It is tea designed

for people diagnosed with HIV.

We see this is a landmark in

the care of HIV in the developing world. At the

moment, current tests cost $10

per patient and involve taking

a full blood sample.

Scientists say the new test

uses a small amount of blood

from a finger prick with

results in less than an hour.

The samples don't need to be

sent away but tests can be done

on the spot. With the cost on the spot. With the cost of

anti-retroviral drugs now

coming down, health experts say

the last roadblock to improved

treatment has been a quick and

simple test. It is certainly

the case that successful

technologies of this sort would

result in much more effective

treatment of many more people

around the world with HIV infection. Aid agent says in

PNG, South Africa and India

will be the first countries to use the use the test. Roll-out of this

test in those countries could

potentially get 15 million

patients on to lifesaving

drugs. It will be rolled out

worldwide next year. To

finance now and the local sharemarket made modest gains today and the Australian dollar

touched the 102 US cent mark

for the first time in nearly

two months. Here's Alan

Kohler. The worries about Spain

and its bonds settled down a

bit today, mainly I think

because the European members of

the G20 meeting in Mexico made

a commitment to drive down the

cost of borrowing for all

Eurozone members. How they

might do that is unclear but

all such roads are paved with

communiques although G20 road

are sometimes dead-ends. Greek

and Italian shares bounced, the

rest of Europe saw solid gains.

Wall Street went up 1% so did

Japan while the Chinese market went backwards again. At

things settle down in Europe

attention is swinging toward

the US and how it will handle

its own austerity programs. As

this chart suggests, that's not

a question of it but when. US

public debt is not is only much

higher than the level across

the Eurozone, according to IMF projections the gap between

them is going to widen in the years ahead years ahead unless something

changes. Europe is rent by

austerity and the US won't be

far behind. But the starting

point is not great. This chart

shows monthly change in payrolls which are currently in

the middle of the third soft

patch since the great recession

of 2008-09. The Australian

market went up two tenth of 1%

which was a fair bit less than

European and US stocks. The

problem is while the blue chips

all did pretty well, with solid all did pretty well, with solid

gains by banks and resources

stocks, the small and medium

stocks generally went

backwards. The small All

Ordinaries Index lost two 10th

of 1% and the mid cap 50 index

dropped a third of 1%. The

dollar is now trading at 101.9

US having touched 102 briefly

in the early hours of this

morning. And that's finance. A

disrupted whooping cough scare has

disrupted Olympic preparations

at the Australian institute of

sport in Canberra. Swimming

Australia today cancelled this

weekend's training camp and competition after two members

of the women's water polo team contracted the highly

contagious disease. The two

symptoms but with the Olympics players both have minor

just around the corner, Vanessa

O'Hanlon initial are taking

every precaution. Ben Lisson

reports. Just a month out from

London, it doesn't take London, it doesn't take much to

spook Australian Olympic

officials. Of the three

people who have this illness,

two of them are completely

asymptomatic. They have no

symptoms at all. The other one

has a minor cough. That one

player in the Australian

women's water polo team is

veteran Melissa Rippon. It is

believed she contracted

whooping cough while in the

team on its recent tournament

spread in China. The illness is not

spread through water but

Swimming Australia has called

off its pre-Olympic competition

at the AIS. We're getting

close to the Olympics now only

40 days out, so we don't want

to put anyone at risk.

Swimmers are highly suss

sechtible to recipe try illness

and precaution are being taken

across all AIS facilities. We're

overinvestigating. It anything

presents with any form of upper

respiratory sis Toms which are

relatively likely to be simple

cost and colds they ill be

tested. It was to be the final teammate in Australia ahead of

the games. Instead athletes

will train in their home states

until racing in a testy vent in

Manchester prior to the

Olympics. They're going to stay

home and maintain stability in

their home programs and most

coaches now are going to set up

some time trials over the same

period they would race. Members

of the water polo team have

been in isolation since their

diagnosis but they're expected

to resume full training within

a week. If you're in a boarding

school or military barracks you

would have the same sort of

concerns and you would want to

get on to these things very

rapidly. In the lead-up to the

pinnacle of sport no chances

are being taken. Ben Lisson,

ABC News, Canberra. England has

with Italy set up a quarterfinal clash

with Italy at Euro 2012 after

its one-nil win over Ukraine.

Wayne Rooney scored the winner

in the first-half after a

mistake by Ukraine's goal-keeper. But the match

will be remembered for another

goal line controversy. Marko

Devic had his shot on the line

by John Terry but replays

showed a goal should have been

a word awarded. Oh my word. That picture tells day story

. The annual Royal Ascot horse

racing carnival is under way.

The world's highest ranked

horse, Frankel, stole the show

with its 11th win from 11

starts taking out The Queen

Anne Stakes. Australia's

unbeaten superstar Black Caviar

will be in action early Sunday

morning. And in basketball,

Miami has taken a three-one

lead over Oklahoma in the NBA

finals. Lebron James landed 26

points. His side is now one win from taking

win from taking out the best of

7 games series. It is a basic

skill many of us take for

granted, but literacy levels in

remote indigenous communities

still lag well behind the rest

of the country. Artists around

Australia are trying to help by

donating new works to raise

money for books and teachers. At this makeshift

studio artists set about

event, creating. It is part of a new

event, one word one day.

They're given a single word for

inspiration. In this case,

teeter. I'm painting an

indigenous child who is on

teetering on the verge of

realising her potential. Teat

ter on the edge of disaster.

That was the first phrase that

came to mind. I'm doing a piece similar to an

illustration I did in a book

last year called flood which

was about the Brisbane floods.

This project is about raising

awareness and funds awareness and funds to improve

indigenous literacy. All

that's right author half had

David Malouf says standards in

remote areas are in decline.

I'm someone who really mean

that reading and the ability to

lead is one of the keys in a

society like ours. The literary

foundation says by the age of

15 more than a third of

Aboriginal still don't have

adequate reading and writing skills. It skills. It is pretty woeful.

I think there are about 36% of

the population have access to

libraries and those libraries

are very poorly

resourced. Organisers have held

similar events right around the

country. By the end of this

last session in Sydney there

will be more than 80 artworks

set to go to auction to raise

money for indigenous literacy.

It is great to dog something.

A lot of the time people think

we're as artist you can't do much

we're making pretty pictures,

so it's nice to be able to make Policety pictures that help

people. The works will be

auctioned in late September of

the all the money raised will

go towards new books and

teachers remoter indigenous

communities. It was cold. You

probably don't need me to tell

you that. It was even nippier

than the bureau forecast.

Minus 6.3 at 5.39 this morning.

That's cold in any win's That's cold in any win's

language. With a slight breeze

blowly it felt like minus 9.

It was very cold this morning

right around our region.

A severe weather warning is

current for the Snowies and

also along the south coast. also along the south coast.

Adelaide, Melbourne and Hobart

will see those showers first as

the cold front moves through,

but at this stage Sydney and

Brisbane will be partly cloudy

but fine. Apart from those

strong wind warnings, there

will be showers in western and

southern centres like Koum, all

by and Wagga Wagga tomorrow.

Some increasing cloud for other

places, 12 for Goulburn

tomorrow and 17 down on the

coast.

A brief recap of our top

story tonight. News Limited

has announced plans for a

massive restructure, an

unspecified number of jobs will

go as the organisation stream

lines its print and digital

divisions. The company has

launched a $2 billion takeover bid for James Packer's bid for James Packer's share of

Foxtel. That's the news for

now. You can keep up to date

24 hours a day on ABC News

online. Stay with us now for 7

point 30 with Leigh Sales. Thanks for your company. Goodnight. Closed Captions by CSI