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Live. The pain in Spain.

Violent protests as tough new

austerity measures are

revealed. An Australian man on

drug charges in Bali likely to

avoid the death penalty. South

Korea backing away from its

plan to hunt whales. And a

French veteran delights his

home crowd by taking out the

10th stage at the Tour De

France. Good morning. It is Thursday, 12 July. I'm Andrew Geoghegan. I'm Karina Carvalho.

Had top story on ABC News

Breakfast - there have been

angry scenes in Spain after the

Government announced sweeping

tax rises and spending cuts.

Thousands of protesters have

taken to the streets. Things

turned ugly when striking

miners clashed with police in

Madrid. Philip Williams report.

It despite chronic unemployment

and a sinking economy, Spain

had avoided the violence that

marked the Greek troubles but

not anymore. The street battles

with police mark a disturbing

new phase in a crisis that

shows no end. It started in the

coal mining valleys of northern

Spain. Miners angry about

austerity cuts to subsidies for

their industry used whatever

they could to express their

so the miners took to the roads anger but that achieved little

and highways after a 3-week

trek they converged on the capital.

TRANSLATION: If this doesn't

work we need to go for more and

harder. Really, really go for

them. I think they need to see

this, need to see that all of

Spain is like this not just the

mines. Everything is going

badly but here we have the miners protesting. This is

bigger than the minors'

protests, thousands have joined

them in the streets. These

people say austerity isn't

working. Europe's highest

unemployment rate has increased

anxiety and frustration with

the Government which responded

by increasing consumption taxes

and announcing more spending

cuts of $80 billion over the

next three years.

TRANSLATION: One has to be

realistic. The way to build

Europe has ever been easy. We

have agreed on a strategy. We

have agreed that it is the

time. But we are seeing and we

will see in the future

tensions, difficult unanimous

votes, declarations which are

out of place and many troubles

but at least we have already decided where we want to go and

that we want to do as soon as

possible. That won't placate

these people who are sick of

cuts and say it makes a bad

economy even worse. Spanish

banks are about to receive

billions in European bail-out

funds that won't impress many

here either as discontent rise

as the economy sinks. In other

news, an Australian man held on

drug charges in Indonesia looks

likely to avoid the death penalty. Persecutors have

recommended a 15 year jail

sentence for the man arrested

in February after being X-rayed

at Bali's international airport. Indonesian officials

say he swallowed 70 capsules of

hashish and math amphetamines.

Bob Carr says he's encouraged

by suggestions South Korea

might scrap its plans to start

a scientific whaling program.

High-level diplomatic talks

have already taken place but

South Korea is yet to publicly

state it won't ever start

whaling. Tony Abbott has shed

more light on how a Coalition

Government would revamp

Opposition Leader says industrial relations laws. The

individual flexibility

arrangements need to be more

workable. He says he's

responding to business concerns

that Labor's fair work laws are

after normal hours. The making it harder to say open

Government's accused Mr Abbott

of wanting to bring back

WorkChoices. Emergency services

have recovered had body of a

pilot whose plane crashed near

Broome in WA last night. The

twin engine freight plane was

reported missing shortly after

take-off at 9:00. Three hours

later the wreckage was found in

sand dunes just south of kanl

beach. The pilot has yet to be

identified. A man's been mauled

to death after climbing into a

tiger enclosure in a zoo in

Denmark. Believe the man broke

into Copenhagen zoo at night in

an attempt to end his life.

Staff arrived at work to find

the body surrounded by three

tigers. They're now receiving counselling. Taking a look at

finance:

It seems as though south

crowa may scrap its plans to

start a whaling program. For more on the Federal

Government's reaction to this,

we can speak to our reporter

Winsome Denyer in Canberra. The

foreign affairs Minister Bob

Carr has commented on this.

What's hehe had to say in The Foreign Affairs Minister is due

to meet with south Korean

officials today to discuss the

matter further. We have heard

from the Environment Minister

Tony Bourke that Australian

diplomats have held high-level talks with south Korean

officials on the issue but Mr

Bourke stressed he want to see

the south Korean Government

publicly declare that they

won't ever start bale bhyling

so the foreign fins - won't

Foreign Minister Bob Carr ever start whaling so the

expected to take that further

with the south Korean officials

today. Australia is likely to

double its aid funding double its aid funding for

family planning services in the

developing world? That's right. The Foreign Minister Bob

Carr is currently in Phnom

Penh, the capital of Cambodia,

and making this announcement

Australia is going to double it

aid for family planning in

foreign countries, particularly

in the Asia Pacific region.

That's going see a doubling of

the aid to $50 million a year

by 2016 and the key areas of

spend ring going to be

contraception and health and

those family planning services

so it's expected it's going to

save thousands of lives in had

area. Meanwhile, back home Tony

Abbott has given voters a

glimpse of what he might do

with workplace relations law

s? Yes, well, Tony Abbott's

been speaking about workplace

relations for many months now

but only in very broad terms.

Perhaps he's still a bit

haunted by the WorkChoices

debacle from the Howard

Government years and finally

he's started to give a bit of

detail. He spoke at a business

forum yesterday in Sydney and

accused Labor of making life

more difficult for the industry

with recent changes that have

taken place in the industry.

Let's take a listen to what he

had to say. The Government is

making it even worse for you.

There's workplace relations

changes over the last few years

that are making it harder for

you to stay open on Sundays,

after hours, on public

holidays. There's the

increasing burden of red tape

and we will move the workplace

relations puching lnt back to

the sensible centre. - pendulum

back to the sensible centre.

You do need more flexible in

your workplace rychkments.

Individual flexibility

agreements must be made more

workable and we will do that. The workplace relations

Minister Bill Shorten was very

quick to respond. He wrote a

reply on social media after

that address by Tony Abbott

there and he raised concerns

about the impact on penalty

rates, overtime and unfair

dismissal laws. Winsome Denyer

in Canberra, we'll leave it

there. And the Workplace

Relations Minister Bill Shorten

will be our guest on ABC News

Breakfast a little later in the

program so stay with us for that. The Western Australian Opposition Leader says he won't

be invited the Prime Minister

to help Labor campaign during

next year's State

election. Mark McGowan says the

election should be fought on

State issues but the Premier

has accused him of disloyalty.

The Federal Liberal leader Tony

Abbott was in Perth this week

and it was a happy Liberal

Party get-together. In contrast, the State Labor leader has been distancing

himself from the Prime

Minister. Mark McGowan says he

won't invite Julia Gillard to

help him campaign in the State election in eight months. I

wouldn't think so. I would

think it's a contest between

the State Labor and State

Liberals and I wouldn't think

that there should boo any

Federal involvement. But the Premier says Tony Abbott is

welcome. I think it's

extraordinary that you have a

Labor leader in WA embarrassed

to have the Prime Minister of

the country come over and

campaign. I think it's a

terrible indictment of Mark

McGowan for not showing any

loyalty. Mark McGowan has

defended his stance. I don't

want to see Mr Barnett get away

with an a election victory on

the basis of it not being about

his own policies and his ideas

and his record. You cannot

campaign in a Western

Australian economy on local

issues. WA is an export

oriented economy, the fastest

growing economy in the nation.

Mark McGowan has also distanced himself from Federal Labor's

fight with the Greens which

flared over calls for Labor to

consider preferencing the party

last. I don't want to get into

a slanging match with the

Greens. I want people to see us

as a viable alternative to vote

for and wouldn't put the Greens

last on our preference

sheets. He says the parties have never had a close

association in WA and would

never form an alliance. Let's

move overseas now and more than

500 newly identified victims

have been reburied 17 years

after the Srebrenica massacre.

Some 8,000 Muslim men and boys

were killed when Serb forces

overran the Bosnian town in

1995. The UN war crimes

tribunal says it was Europe's

worst genocidinse World War II.

Two former Bosnian Serb leaders

are currently on trial. At

least 8 people have been killed

and 15 injured in a suicide

bomb attack in Yemen. Police

say the bomber blew himself up

among a crowd of cadets in a

police academy in the capsule

Saanaa. No-one owned up to the attack but Al Qaeda is suspected. Izallmest militants

have been threatening to

retaliate against army offences

on their strongholds. The

international peace envoy to

Syria says Iraq and Iran

support a plan for Syrian

transition. Kofi anan says the

violence needs to stop for

political change to begin ch

When we met as an action group,

all the members of the action

group undertook to maintain

sustained and effective

pressure on the parties to

implement the Security Council

resolution and first of all

take steps to stop the violence

so that we can move on to the

political dialogue. In both

Iran and Iraq, the Governments

are committed to supporting the

6-point plan. They supported

the idea of political

transition which would be

Syrian led and allow the

Syrians to decide on their

future political dispensation.

Obviously they are going to use

the influence in talking to the

Government andther parties and

moving in that direction. UN

peace envoy Kofi Annan. Let's

look at the front pages of the major newspapers and the 'Canberra Times' says

intelligence agencies are

pushing for greater access to

the private phone records and

Internet data of every

Australian. The Western

Australian reports on the search for a pilot after his

plane crashed off Cable Beach

near Broome. The body has since

been recovered. E confess, the

'Herald Sun' reports the country's fire authority has

admitted to exposing

firefighters to dangerous

chemicals at a training base

after decades of

secrecy. Warren Mundine called

on had Gillard Government to ditch the Greens and hold

emergency talks with the

Opposition to end Indigenous

disadvantage. Blind spot - the

'Daily Telegraph' reports a

missing CCTV camera could have

caught the killer of

18-year-old Thomas Kelly who

was fatally bashed in Sydney's

Kings Cross. The 'Financial

Review' reports the corporate

regulator could change takeover

laws because they're unfair and

out of step with regulations in

organise countries. The 'Courier-Mail' reports

Brisbane's hotels will be

overwhelmed by an influx of

delegates for the upcoming G20

summit. In the Northern

Territory News, a man accused

of killing his parents tells

police "God made me do it." The 'Advertiser' leads with a

report on planned job cuts at

zoos in SA to rescue the organisation from financial

ruin. In the 'Mercury', the

Liberal Opposition vows to tear

up planning laws that block

development on Mt Wellington

above Hobart. And on the front

page of 'The Age', Victorian

welfare authorities are using

extreme obesity as a reason to

have children removed from

their parents. This is going

to get people talking, isn't

it, because of the problem with

obesity we have in society

today and 'The Age' cites two

cases here where Victoria's Department of Human Services -

basically there, was a

preteenage boy who waked 110kg

and he's referred to medical

treatment with no effect and a

teen girl whose waist measured

greater than her height. Two

extreme cases obviously but

they were cited in case wheres

the children were removed from

custody of theirparence and put

into some sort of care. I guess

it raises the issue is this a

form of child abuse in terms of

obesity or is it a failure of society rather than of

parents? It's a very disturbing article you

mentioned the young girl whose

waist measurement was larger

than her height so her waist

measurement is 169cm so the

question we're posing to you is

should extreme obesity be used

by authorities as a reason for

children to be separated from

their parents? I should point

out the department told 'The

Age' that obesity may be a

symptom of other issues in

these two cases I've cited that

could place the child at risk

or harm that could warrant

child protection. We'd love to

hear your comments and what you

think about that situation.

Send your emails to: Let's take a quick look at

the weather:

These are the top stories on

ABC News Breakfast - there have

been violent protests in Spain against the Government's tough new austerity measures.

Thousands of people have taken

to the streets of the capital

Madrid to protest against big

tax rises and spending cuts.

An Australian man facing drug

charges in Bali looks likely to escape the death penalty. Edward Norman Myatt is accused

of trying to smuggle drugs into

the country. Prosecutors have

recommended a lengthy jail

sentence. And South Korea

appears to be backing away from

its plan to start scientific

whaling. Foreign Affairs

Minister Bob Carr has welcomed

the news and will hold talks

with his south Korean

counterpart later today.

The Reserve Bank's

deputy governor is warning the banking industry it needs tree

build the trust it lost during

the global financial crisis.

That's easier said than done.

Neither regulators nor the industry itself have the answers on how that can be done. Neal Woolrich

reports. Around the world,

major banks are under fire. It

started with the global financial crisis and recent scandals like interest rate

rigging in the UK have only

added to public and political

outrage. If the banks system

wants regulatory pressure to

ease off a bit they need to do

more to rebuild this bond of

trust. While the banking

industry itself recognises the

need to restore trust, no-one

yet knows how to achieve it,

however, the Reserve Bank and bankers' association are

warning that a heavy-handed

approach to regulation is not a cure for all of the industry's

ills. The preservation of

financial stability cannot be

achieved by rules alone. It

requires active and competent

supervision. I'm concerned

about the loss of faith in

markets but I'm actually more

concerned about the risk of us

replacing that loss of faith in

markets with a blind faith in regulation. I am seeing some evidence of that. Australia's prudential regulator and other international bodies are now

look at how to handle banks

that become too big to fail. At

the same time, APRA is also

grappling with the next round

of global banking rules called

basal3. Our banking

institutions can comply early

and they should. Surely this is

the time to be accentuating the

positive. Our larger banks, for

example, have already cleared

the 2013 hurdle and should be

readily able to clear the 2016

hurdle through prudent earnings

retention policies. However,

the strength of Australia's big

four banks means that interest

rates remain a sensitive issue.

That's despite repeated

assurances from both the RBA

and banks that funding costs

are rising, breaking the nexus

between had official cash rate

and the interest rates that

banks charge. While it's

difficult to be too precise,

the cash rate today is in the

order of 1.5 percentage points

lower than it would have been

in the absence of needs

developments You won't pay

any more for your mortgage than you would be if the banks had

always followed the RBA but you

do have safe and stable banks

and I look forward to all the

major newspapers tomorrow

having that as their front-page headline. Wishful thinking

perhaps and another sign that

banks around the world face a

tough public relations battle

for many years to come. Now today's official job figures

are expected to show the

unemployment rate edged higher

in June, a survey of Bloomberg

economists has most of them

tipping the jobless rate to

rise to 5.2% for the month, up

from 5.1 in May and economists

expect the data to show job

creation was flat in the

month. A London summit has

announced plans to extend

family planning services to 1.5

million women in the developing world. British Prime Minister David Cameron says family planning services are crucial

to tackling poverty. Women

should be able to decide freely

and for themselves whether,

when and how many children to

have. This is not something

that is just nice to have, some

sort of add-on to our wider

development goals t is

absolutely fundamental to any

hope of tackling poverty in our

world. Why? Because a country cannot develop properly when

its young women are dying from

unintended pregnancies and when

its children are dying in

infancy. That's the British

Prime Minister David Cameron

and Australia's contribution to

that fund is $50 million, it

will double its aid to $50

million a year by 2016. Let's

take a look at the markets now:

Coming up this hour, when campaign

speeches don't quite go to

plan. Boo! We'll find out -

that was Mitt Romney of course.

We'll find out what the

presidential candidate Mitt

Romney said to upset voters on

the campaign trail in the US.

That was a pretty loud and long

boo. It was sustained, yes.

We'll check out why shortly.

Now let's check in with sport.

Amy's with us. How's the tour

going? I gather Cadel Evans

hasn't made up any ground? Not

yet but we've got an

interesting stage tonight.

Frenchman Tomas Voeckler has

won stage 10 of the Tour De

France overnight. Cadel Evans' position in the general

classification is unchanged.

He's still 1 minute and 53 seconds behind England's

Bradley Wiggins but some good

news, Australia's Matt Goss has

closed the gap in the race for

the green sprinter's jersey.

The Tour De France entered the

Alps for the 194.5km 10th stage

and it was Tomas Voeckler, the

man who so dogged lay climbed

to the yellow jersey last year,

this year he's overcome

persistent knee trouble and was

the last man standing from the

long break away, winning solo.

Behind him was unfold ing a

fascinating race in the overall classification. Currently lying

in fourth place, Italy's

Vincenzo Nibali attacked and at

one point led by more than one

minute by the team Sky led

peloton but Sky chased him down

meaning the major favourites

finished in a group together so

Cadel Evans is still 1 minute

and 53 seconds behind the

yellow jersey of Bradley Wiggins. Speaking to Cadel

Evans after the stage, you got

the feeling that while he did

not want to criticise Nibali's

attack, he did think perhaps it

was a day where it was better

to save some energy. Nibali

went away and I was a bit

hesitant. I don't know if it

was a missed opportunity or

something but of course today

it looked - Sky have built a

team exactly for this course

and these kinds of situations

so it leaves opportunities few

and far between and with the

wind and climb so far from the

finish it's always a bit

difficult. In the green jersey competition, a good day for

Australian Matt Goss. He

escaped in a large group early

on and was able to win the

sprint, the intermediate sprint

, gaining another 5 point and

now sits just 27 points behind

Peter Sagan. I can't let him

sneak away and take 20 points

without 1 testing. I jumped in

the break, worked to perfection

in the sprint. I managed to win

the sprint with someone else

tacked on to my wheel which put

together space between us,

we're gown to 27, 8 points

now. The honourable mention of

the day has to go to Jens

Voight. He was also in the long

breakaway and made his bid for

stage glory but faded at the

end to finish third.

Nevertheless at the finish he

was typically candid with his

trademark sense of humour in

tact. Fortunately, lots of people try to have it easier

and not many do crazy stupid

tactics like me so that's good

for me. It's my image and I

stick to that. The 11th stage

is only 148km long. Short by Tour De France standards but that normally means we can expect the racing to be fast

and aggressive. The profile, it

looks like a row of sharks'

teeth, up and down all day and

finishes with an 18km category

1 climb to the finish. Perhaps

we can expect Cadel Evans to go

on the attack and use some of

that energy he saved today.

Sounds like a great stage 11

ahead. James Bennett reporting.

In football, the Australian

women's soccer team lost its

international friendly match to

Japan in Tokyo last night. The

Matildas were defeated 3-0 to

the world champions. The home

team took the lead with a

25th-minute penalty after a

foul by Australian defender

Tameka Butt. Japan doubled its

lead on the stroke of halftime

and continued to press after

the break. Japan scored its

third goal just before the

hour. Japan is preparing for

this months's Olympic

tournament and dominated the

game, creating lots more opportunities than Australia

which has failed to qualify for

London. To Australian swimming

medal hopes and they've been

speaking about their

preparations in Spain ahead of

the Olympics. Their Australian

camp is a chance to escape the

Australian winter and focus on

the task ahead. This will be

Eamon Sullivan's thred Olympic

appearance and freestyle

swimmer Kylie Palmer qualified

for the 200, 400 and 8manm

freestyle. My goal for London

is to get an individual medal.

I'm swimming three individual

events and one relay swim so

we'll see how it goes. I'm

really excited to represent

Australia. I think it's a massive honour to represent

your own country in an Olympic

Games and hopefully I can do

them proud. It's hard at the

moment because at the moment we

try to eat very healthy and the

Spanish food can be quite

morish so we try to be careful

not to eat too much. I think basically the whole top eight,

you know, there's 0.2 of a

second, 0.3 of a second at the moment between first and eighth

so any one of those guys can

get up and win but I think the defending champion will be the

one to beat. Eamon Sullivan

there speaking about the problems with

problems with food and it is a

big adjustment for lot of

athletes when they travel

overseas and Beijing was a real

challenge for athletes in the

village there as well to get

the food they needed but we know Eamon Sullivan is a bit of

a foody. Major foody. He won a

reality celebrity cooking show

and he has a cafe in Perth

that's very, very popular. We

know Olympians in particular

struggle once they retire

because they eat huge amounts

when they're competing and they

often struggle with weight

because they keep eating the

same amount. Geoff Huegill

stacked on 30 or 40kg because

they love their a food and

they're used to it being a fuel

and if you're swimming 7 to

10ks in the pool twice a day

it's no problem. It happens to

lot of athletes. A wide variety

of athletes have trouble

cutting down the kill yulz. Thanks for that. ABC News

Breakfast can be watched live

on the web. Just visit the plain ABC News website at

abc.net.au/news and you'll find

a link to news 24 streamed live

every day. Vanessa joins us

for the latest on the weather. After a brief respite yesterday

the heavy rain is back in the

east today. We have another low

pressure trough and associated cold front moving through the

region and will affect the east

up until Friday. Cool southerly

winds behind this front and the

combination of a high are

causing a few showers along the

south coast of WA and over the

weekend another trough will

isolate rain to the southeast

of Queensland and northeast NSW. A front will push strong,

cold winds and showers across

the southeast also over the

weekend with snow on the Alps

and by Sunday most of

and by Sunday most of the country will be back under a

high so back to cold mornings

and dry across most of the

interior.

This program is not subtitled

You are watching ABC News

Breakfast. Still to come, why

was Republican presidential

hopeful Mitt Romney booed at a

rally? Our north America correspondent Marc Murphy will

tell us and give us an update

on the use presidential

election. Phil Kafcaloudes will

be here to review the

newspapers and we'll talk to

Daniel Andrews about a crucial

upcoming by-election which has

pitted Labor against the

Greens. First, here's the

latest news with Karina.

Leading the news, tough new

austerity measures in Spain

have sparked violent protests.

Police have fired rubber

bullets at striking main miners

in Madrid. Thousands took to

the streets to protest the

sweeping tax rises and spending

cuts. An Australian man held on

drug charges in Indonesia looks

likely to avoid the death

penalty. Prosecutors have

recommended a 15-year jail sentence for Edward Norman

Myatt who was arrested at Bali's international airport in

February. Indonesian officials

say he'd swallowed 70 capsules

filled with hashish and

methamphetamines. The Foreign Affairs Minister Bob Carr says

he's encouraged by suggestions

that South Korea might scrap

its plans to start a scientific

whaling program. Am Carr's due

to raise the issue at a meeting

with his south Korean

counterpart today. Tony Abbott

has shed more light on how a

Coalition Government would

revamp industrial relations

laws. The Opposition says

individual flexibility

arrangements need to be more

workable. The Government's

accused Mr Abbott of wanting to

bring back WorkChoices. Emergency services have

recovered the body of a pilot

whose plane crashed near Broome

in WA last night. The twin

engine freight plane was

reported missing shortly after

take-off at 9:00. Three hours

later the wreckage was found in

sand dunes just south of Cable

Beach. The pilot has yet to be

identified. Let's get more on

the top story we're following.

There have been angry scenes in

Spain after the Government

there announced sweeping tax

hikes and spending cuts.

Thousands of protesters have

taken to the streets and things

quickly turned ugly when striking miners clashed with

police in the capital Madrid.

Philip Williams reports. Despite chronic

unemployment and a sinking

economy, Spain had avoided the

violence that marked the Greek

troubles but not anymore. The

street battles with police mark

a disturbing new phase in a

crisis that shows no end. It

started in the coal mining

valleys of northern Spain,

miners angry about austerity

cuts with subsidies for their

industry used whatever they could to express their anger

but that achieved little so the

miners took to the roads and

highways after a 3-week trek

they converged on the capital.

If this doesn't work we need to

go for more and harder, really,

really go for them. I think

they need to see this. They

need to see that all of Spain

is like this not just the

mines. Everything is going

badly and here we have the

miners that are protesting this

lot can do it. But this has

become much big tharren the

miners' protest. Thousands of

Spaniards have joined them in

the streets, angered by cuts to

services and jobs, these people

say austerity isn't working. Europe's highest unemployment

rate has increased anxiety and frustration with the Government

which responded by increasing consumption taxes and

announcing more spending cuts

of $80 billion over the next

three years.

TRANSLATION: One has to be

realistic. The way to build

Europe has never been easy a.

We have agreed on a strategy.

We have agreed it is the time

but we are seeing, and we will

see in the future, tensions.

Difficult unanimous votes, declarations which are out of

place and many troubles but at

least we have already decided

where we want to go and that we

want to do it as soon as possible. That won't

placate these people who are

sick of cuts and say it makes a

bad economy even worse. Spanish

banks are about to receive billions in European bail-out

funds that won't impress many

here as discontent rises a the

economy sinks. Republican US presidential candidate Mitt

Romney has been booed by an

African American crowd while on

the campaign trail overnight.

Joining us to discuss that and

the broader election in the US

from our Washington bureau is

north America correspondent

Craig McMurtrie. Craig, I guess

Mitt Romney wasn't expecting to

be welcomed at the civil rights

gathering but why was he there?

He was there because after a

very tough primary battle where

he was forced to take some very conservative positions to get

support to actually secure the

nomination, he now needs to

reach back across the I'll and

make inroads with minority

groups and try and attract

votes away from Barack Obama.

Essentially he went to this

NAACP conference in Houston,

caused some eye brows to be

raised because he certainly

wasn't expecting to get

anything other than a frosty

reception. Wasn't helped at

that before he took the stage

the preacher at the event asked

the crowd to pray for President

Barack Obama and as the organ

music swelled Mitt Romney

walked out on stage and never

really looked anything other

than awkward. He was trying to

make the case that despite the

promises made by Barack Obama

back in 2008, schools are still

underperforming for African

American children, the African

American unemploymenteralty at

14.4% is well above the

national average of 8.2% but he

ran into trouble when he tried

to identify expensive

Government programs he would cut, number one Barack Obama's

health care changes and as you

can hear, the audience mood

soured very quickly. So to do

that I'm going to eliminate

every nonessential expensive

program I can find. That

includes Obama care and I'm

going to work to reform and

save... CROWD BOOS I guess no

surprise that he is struggling

to get traction particularly

among African American voters

but also with Hispanic s as

well. How much of a problem is

that for the Republic snns

There is Ken in the party that

they have a structural problem

because poll data demonstrates

the sorts of problems Mitt

Romney as a candidate is having

with single women, for example,

polls show Barack Obama holds a

two to one lead, with the African American vote, those

responding in the surveys are demonstrating 87% support for

Barack Obama and if you recall

only a few weeks ago the

President announce heed was

going to improve the pathway

for young immigrants,

undocumented immigrants brought into the United States by their

parents illegally, allowing

them to apply for work permits.

That seems to have really

bolstered his support with the

Latino community. Florida for

example, a big battleground

State, polls are showing there

that Barack Obama holds a

double-digit lead over Mitt

Romney so it was important for

the Romney campaign to be there

today. I guess the Republican

will hope that independent

voters will give him some

credit for fronting up in that

situation. They also want to

draw a contrast with President

Obama who isn't going to the

NAACP conference this year,

suggesting he's taking the black vote for granted. We're

about four months out from the

election in November of course,

what are the polls telling us

about the tightness of this

race and just where both

candidates are at in their

campaigns? Well, there are two

new polls out today, there's a Reuters Ipsos poll which shows

Barack Obama in the lead 49-46,

there's also a university poll

out showing a similar 3-point

margin, 46-43 to Barack Obama,

demonstrating that it is indeed

a tight race though national

polls aren't so important as

what's going on in these

battleground states and the

other thing is fundraising,

very important. In June, Barack Obama raised there are 71

million, ordinarily this would

be an amazing figure. The

Romney campaign, however,

raised over $100 million so

he's constrained a bit. He

can't start spending some of

the money until he actually officially secures the

nomthation. That won't happen

until the convention in Tampa

next month though of course

these outside groups are

already spending so it's all

pointing to a tight race but it

also has to be said this far

out from the November election

it's hard to read too much into

the national polls. Craig,

thanks very much. Let's stay

overseas and a man's been

mauled to death after climb ing

into a tiger enclosure at a zoo

in Denmark. Police believe the

man broke into the Copenhagen

zoo at night in an apparent

attempt to end his life. Staff

arrived for work to find the body surrounded by three tigers. Those men are now

receiving counselling. More

than 500 newly identified

victims have been reburied 17

years after the Srebrenica

massacre. Some 8,000 Muslim men

and boys were killed when Serb

forces over ran the Bosnian

town in 1995. Two former

Bosnian Serb leaders, Radovan

Karadzic and Ratko Mladic, are

currently on trial. At least eight people have been killed

and 15 injured in and 15 injured in a suicide

bomb attack in Yemen. The

bomber blew himself up amongst

a crowd of cadets outside a police academy. No-one has

owned up to the attack but

investigators suspect it was Al

Qaeda. Islamist militants have

been threatening to retaliate

against army offensives on

their strongholds. Kofi Annan

says the UN Security Council is

likely to decide on the next

steps for Syria in the coming

days. The inter national

envoy's visiting the region to

discuss a plan for a Syrian-led

political transition. Mr Annan says Bashar al-Assad suggested

a representative for talks with the opposition but nothing has

been decided yet. In all

Frankness, yes, we discussed

it. He did offer a name and I

indicated that I wanted to know

a bit more about the individual

and so we are at that stage.

To a story that's just coming

to us from Sydney now. Police

have seized more than a kilo of

explosives and arrested 11

people during operations

targeting organised crime in

Sydney's west. Strike force

Crew which was set up to

investigate drug crime, has

carried out a series oaf ratedz

since Tuesday in suburbs

surrounding Parramatta. Police

also seized a haul including

drugs, guns and ammunition,

money and 1.25kg of explosives

and two det narlts and all

those arrested have been

refused bail and are due to

appear before a Local Court in

Sydney today. We'll have more

as it comes to hand. Doctors

in Brisbane have sived the life

a little girl from the Solomon

Islands. A nail had pierced

her brain and Rotary arranged

for her to be brought to Australia for life-saving

surgery. Donna Field reports.

When Larisha Barikoa arrived in

Australia two weeks ago she was

paralysed down one side and

gravely ill. But the pint-sized

5-year-old now has something to

giggle about thanks to the

Royal Children's Hospital. A

nail was lodged in her brain

when a piece of wood fell from

a building site. A large abscess developed and

meningitis set in. Her case

came to the attention of

Rotary's medical aid for

children project. Six days on

a boat on a very remote island

in a very remote village. When

she got to the hospital with

her aunt it was touch and go.

Larisha Barikoa has had two

operations to drain the

abscess. We're going to

aspirate it again and if that's

fine then we hope we get the

cyst down to such a size we can remove it. Denise Schellbach

has cared for many children

brought to Australia for procedures that aren't available at home. She's grateful to

grateful to the people who've

saved the little girl's life.

They're just wonderful. They do

so much for these children that

don't have a hope really and

they do it all for free.

That's one of the fantastic

things with my job really, to change things like that and save someone. It feels

fantastic for me and all the

team. It's a long way from home

and her parents but this little

girl is being given lots of

love on her road to recovery.

It will be some time before Larisha Barikoa makes the long

journey home to her family.

Doctors say if all continues to

go well she'll be discharged in

two months. Australia's

reputation as the land of the

golden fleece may soon be

changing as demand for fine wool falls. Now more Australian farmers are turning to wool-free sheep as wool-free sheep as a cheaper

way of rearing the animals for

meat. They may look like

ordinary sheep but this flock

has been bred to be free of

wool. Their grower says it's a

work in progress, that this is

the future of sheep being bred

for their meat. We don't need

a sheer, we don't need a

crutch, we don't need a mules,

we don't need a jet and out

here in the bush the labour's a

big issue. Dawson Bradford

sold his 13,000 merinos almost

a decade ago when the price of

wool plummeted so he turned to

hairless sheep with their high

fertility and lower production

costs, they're a more

profitable alternative. It's

been a big swing over the last

4 or 5 years with people

getting dis illusion ed with

the wool industry. There's

still a big future for the

merino sheep. We're not against

that. It's just the labour is

such a big problem for us. And

hairless sheep are once again

an attractive option with

demand for fine wool damp nled

by the European debt crisis. Wool-free sheep have been an

important part of the South African lamb market for the

last decade and now local

farmers are following their

example by producing sheep for their meat rather than their

wool. Those of us in the wool

industry have come through some

very, very tough times so I can

understand why people look

around and say, "Let's have a

slightly easier life." But

Dawson Bradford says breeding hairless sheep isn't an exact

science. He says he still

hasn't perfected theianetics of

creating a totally hair-free

sheep but when he does he

expects it will be one hair

loss formula lots of farmers

will want. You are watching ABC

News Breakfast. The top stories

- there have been violent

protests in Spain against the

Government's tough new

austerity measures. Thousands

of people have taken to the

streets of the capital Madrid

to protest against tax hikes

and spending cuts. An

Australian man facing drug

charges in Bali looks likely to

escape the deg penally. Edward

Norman Myatt is a - to escape

the death penalty. Edward

Norman Myatt is accused of

smuggling drugs into the country. South Korea appears

to be backing away from its

plan to start scientific

whaling. Bob Carr will hold

talks with his south Korean

counterpart later today. For a

look at the national newspapers

we're joined By Radio Australia's Phil Kafcaloudes.

If you think he looks exceptionally tanned this

morning it's because he's just

returned from a rather long

sojourn in Greece. I have and

it was very interesting being

in Greece. It was in between

the two election and I was really interested to see what

the attitudes of Greeks were

towards their Government. You

remember after the first

election there were a a number

of parties elected and they

couldn't decide what to do

about austerity measures and

there was lot of anger y can

tell you, from people. There

was a despondency. Things seem

to be getting on though. People

were still getting about their

business, still investing in businesses, still looking to

the future. They have been

through worse than this. I did

a blog on The Drum about it and

the anger was about their

politicians not about the fact

that they were in this mess in

the first place. Of course

we've seen what's happened in

Spain overnight which reflects

what's already happened in

Greece but overall, are people just pessimistic about the

future? Are they getting out of

the country as we hear? Yeah,

they are. In fact I was talking

to one professor from the

University of Athens and he -

when he was talking to us I

said, "How's your family

coping?" He said, "I don't

know. We've moved to America

until this is all over." It's

indicative of the sort of

attitudes people have got. I

think it's more that it was the

doubt. They just didn't know if

they were going to have a wage

in 6 months' time but now that

they've come through the

austerity measures of course

things have moved over now to

Spain and dollars Portugal to

be concerned about and Ireland and some of the other countries

in the region too. Let's get

to the newspapers and start

with the front page of 'The

Age' which is a story we've

already talked about on the

program and it's generated a

lot of comment. It is a

fascinating story. Whennio look

at the way it's done f we look

at the picture on the front

page it says, "Is this child

abuse? The courts think so."

We should point out this is a

generic photo too not a child

referred to in the article.

Good point to make too. Eating

a Hamburger is not - is that

child abuse? No, that's not what they're referring to.

They're talking about obese

children there. The question is

should they be - should

children be taken away from

their parents or should parents

be found wanting because they

let their children get obese?

There are two court cases and

the courts have found in one

case a teenage boy and a

teenage girl whose

circumference was bigger than

her height. They're are

talking about extreme obesity?

Yes and one dietician in the

article is a diabetes expert

and he says you can't blame

parents for environmental

factors heres necessarily. It's

an interesting case but I was

really interested in the way

the paper did the story, that

eating a burger is child abuse.

I'm speaking as a vegan. I

don't think that's particularly

fair. We have had comments

from Bruce saying sometimes

it's genetic but if not,

educate the parents don't

punish the kids. Yeah, right.

In this case it's punishing the

parents but the kids would ve

suffering as well. The article

does also talk about the other

factors leading the children

possibly to eating huge amounts

and maybe that's why the

children need to be removed

from their families. Yeah, and

you have to take it case by

case obviously. If there is a

real problem in the family and

one famous example is the Beach

Boys, you know, two of the

three brothers in the family

were very big because their

fathers accused them. You have

to take it on a case by case

basis. Let's move on to the

briems. This is going to send

a chill in the harpt of many

people. This a new proposal Nicola Roxon the

Attorney-General is considering

and this is about ASIO and

defence signals, considering

whether they should be keeping

data, whether telcos should be

forced to keep data about who you

you speak to on the phone,

Internet sites you visit or

Internet data for two years. I

guess it's easy to read from

that you're saying they're

spying on us but that's not

quite the case, its rurb

retention of data, our phone

records and Internet

usage. Yes, and I'm interested

about what Internet usage. Is

it about the sites we viz isn't

I had a dispute with a telco

and they said, "We don't know

what sites you visit." I

thought, "That's a relief." In

this case is it the sites you

visit or how often you're

online? I don't think the

telcos can keep a record of the

sites we visit. Let's hope.

There is a problem in the UK

because in the UK they've got a

similar thing and in the UK

it's only for one year they

keep the records and there's a

huge debate about that at the

moment trying to bring that in

so here it would be double that

time, more controversial. I

guess we'll hear a lot more

about that story in the weeks

ahead. Let's move on to 'The

Australian' and this is really

not telling us anything we don't already know which is

that people who live in the

inner city are less likely to

be religious. Yeah, and that's

the question, what are they

talk about when they say

religious? Believing in God?

You look at the article t has a

list and they've done a survey

of which people in Australia

are those who are most likely

to believe in God and east

Arnhem Land in the Northern

Territory, 99% but what God?

In east Arnhem Land a different

spirituality. If we're talking

Indigenous Australians, very

strong spirituality which is

great to see that it's 99% but

then we go to Campbell Field in

Victoria, 97 %. People who live

in the suburbs are more likely

to believe in God but then you

get to the other end, Nimbin

the least likely to believe in

God. With the inner city it's

about the young professionals

who are perhaps less inclined to believe in any God. True.

And if you're in Nimbin as well

I would have thought Nimbin is like, you know, spiritual

central, isn't it? That's

where you can buy all the dream

weavers and bay at the moon -

no offence to people in Nimbin

- but only 41% of people there

believe in a God. So this

doesn't count spirituality as

such, it is a God, which ever

God they believe in. Let's

move on. Let's go to the

'Herald Sun' and his is a

really curious case, isn't it?

Yeah, this is a story about a

man who has just become the

15th Earl of Ludon with the

death of his father. He could

be the king of England because

he is a descendant of Edward

IV, there was a problem about

whether his ascendant was

actually legitimately born as a

child of Edward IV and if it

was legitimate there is a very

good case, according to

historians, that this is the

guy who should be sitting in

the throne and saying, "My

husband and I." You're not

talking about a number of the royal family would have to be

wiped out, that he has a

greater right to the throne?

Yes. We have a guy in

Wangaratta who could be sitting

on the throne and driving in

the Rolls Royce. I think that's

amazing. I think the biggest

problem is he's a Collingwood

fan so I don't ink it's going

to happen. He's out then. He

should declare his own

province. What was his name in

Hutt River in WA declared his

own province. Wasn't there a

vote to confirm that? Let's quickly move on to a photograph you want to look at. This is

great. It's one of the great

photographs of outside a court

ever. This is a woman - the

story itself is terrific - she

and her husband got into a

fight with a guy about a

burn-out. Apparently a burn-out

was done on a carpark next to

where this guy was living. He

complained, they got into a

fight with him and a gun was

pulled out by her husband and a

shot fired at the man but not

before the man who had the gun

shot himself in the foot. It's

the not always fun being a

photographer at court.

Apparently she's not happy.

She's not happy or she's

calling for a taxi. Who knows.

Phil Kafcaloudes, thanks very

much. Thank you. Amy's just

joined us for the latest in

sport and the Tour goes on? It

goes on and on and Cadel Evans

hasn't unfortunately managed to

make up any groundary any time

in the Tour De France

overnight. Frenchman Tomas

Voeckler won stage 10 of the race in the French Alps. Cadel

Evans finished 12th in the age

but race leader Bradley Wiggins

stayed on his wheel right until

the finish line. That means

Evans is still 1 minute and 53

seconds behind Wiggins in the general classification but

Australia's Matt Goss has

closed the gap in the race for

the green sprinter's jersey,

he's 27 points behind Peter

Sagan. Tonight's 11th stage is

148km long and includes four

major climbs. The Australian

women's soccer team has lost its international friendly

match to Japan in Tokyo. The

Matildas were defeated 3-0 to

the world champions. The home

team took the lead with a

25th-minute penalty after a

foul by Australian defender

Tameka Butt. Japan doubled its

lead on the stroke of halftime

and scored its third goal just

before the hour. Japan is of

course preparing for this month's Olympic tournament

which Australia failed to

qualify for. And a quick look

at the Olympic flame. It's continuing its journey across

Great Britain, winding its way

through Winchester, the relay

is covering almost 13,000km.

Winchester cathedral, the

longest medieval cathedral in

Europe, has become a site of

pilgrimage for fans of author

Jane Austin who is buried

there. The flame ended its

travels on Wednesday in

Salisbury. We will have the latest from the Australian rowing team and our correspondent next hour in

sport. Let's check in now with

Vanessa for the weather. On the

satellite, a mass of cloud has

formed over SA, Victoria and NSW. A cold front is generating

large areas of rain and

thunderstorms and as we can

see, some of the cloud is

filtering into Tasmania and southern Queensland. A

developing trough is causing

rain over eastern Queensland

and over the weekend will

continue to cause rain in

southeast Queensland and

northeast NSW. At the same

time, a high will see a return

to cold mornings over the

interior.

Thanks very much. Coming up,

why is Google in trouble again

over its privacy settings?

We'll find out when we speak to

our technology expert Luke

Hopewell. That's coming up

after this short break, so is Daniel Andrews, the Victorian

Labor leader to talk about the

Greens by election to be held

in a week and a half.

The pain in Spain. Violent

protests as tough new austerity measures are revealed.

Guns and explosives seized

and 11 people arrested in raids

in Sydney. An Australian man

on drug charges in Bali likely

to avoid the death penalty. And

a French veteran delights his

home crowd by taking out the

10th stage of the Tour De France. This Program Is Captioned

Live. Good morning. You're watching ABC News Breakfast on

Thursday, 12 July. I'm Karina

Carvalho. Coming up on the

program, the Greens are giving

Labor a run for its money in an

up coming by-election in

Victoria. We'll speak to the

State's Opposition Leader

Daniel Andrews shortly. And

food fit for an army. I think

this is probably had best food

I've had on any army exercise

or deployment so it's

fantastic. The other night

they had an Asian theme night

the quality of had food is

really good. How to feed a

hungry army. That's the subject

of the latest installment in

reporter Cathy M leash's series