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Nikki, thank you so much
for coming in. Thanks, Karen. Guys, make sure you jump
on the phones. Back to you.

The first of the Royal Baby Magazine editions had hit the stands. And Johnny Ruffo is on the show tomorrow. But I am not on the show.

This program is captioned live. This morning - Tony Abbott unveils his plan
to stop people smugglers, as the death toll
from the latest tragedy rises. Dozens killed in a train derailment
in Spain. Kate and William name their prince
George Alexander Louis. And Australian cycling great
Stuart O'Grady admits to doping.

VOICEOVER: This is Seven News,
morning edition, with Ann Sanders.

Good morning. Tony Abbott has unveiled
a military-led operation to tackle the asylum seeker issue if the Coalition wins the election. It follows the latest boat tragedy
off Indonesia, where the death toll
has now risen to nine and many more are still missing. The anguished faces of the
last asylum seeker boat tragedy. Exhausted women and children are lifted out of
an Indonesian fishing boat after being plucked from the sea
off Java. Nine others are confirmed dead including a baby, four children
and pregnant woman. More than 40 are still missing. The boat sank in rough seas
on Tuesday night with 204 people on board. They were heading to
Christmas Island. And they're not the only ones. 522 people have arrived at
Christmas Island since Kevin Rudd's hardline
PNG solution was announced last Friday.

The people smugglers
will seek to test our resolve by pushing even more, for a while,
at us. The Prime Minister says Tony Abbott
is also testing his patience. For political reasons, he'd much rather the government's
strategy did not work. Tony Abbot unveiled his own strategy
this morning - a military-led operation
to take on the people smugglers.

We are announcing today
that under a Coalition government, we will swiftly implement
Operation Sovereign Borders. So we've now got two
3-word slogans - "stop the boats" and "operation
sovereign something-or-other." But Tony Abbott says
there's more to it than that, with Defence to take a bigger role
in border security. Operation Sovereign Borders will be in the hands of
a 3-star military commander who will be reporting directly
to the Minister for Immigration. For a plan that so heavily involves
our military, it has been revealed that
Tony Abbott only contacted the chief of the Defence Force,
David Hurley, this morning, even though it was reported that
he sought advice from him on the strategy. That lead to this rebuke, a statement saying the head of
Defence Force:

"General Hurley has not provided
any advice or recommendations to the Opposition Leader".

At least 60 people have died
and 130 more injured after a train derailment
in north-west Spain. The accident happened on the high speed route
between Madrid and Ferrol, as hundreds of tourists were on the way
to celebrate a public holiday. Angela Cox reports.

Good morning, Ann. The death toll kept climbing as rescue crews made their way
through the chaotic scene. The high-speed train
derailed in north-western Spain, near the
Santiago de Compostela Station just before 9pm at night
local time. It was a pretty frantic scene. Rescue workers had a tough time scrambling to get
into the passenger cars to help the dozens
of people who were injured. 13 carriages came off the tracks, one was torn apart,
another was on fire, four carriages overturned, others were piled
on top of each other. Some of the 218 passengers on board
were thrown from the cars. One witness said he heard an
explosion before the train derailed.

TRANSLATION: What just happened is not normal. I am in shock. It

TRANSLATION: What just happened is
not normal. I am in shock. It ran over one person. I tried to help. I said to my wife, "What just happened?" and the train does not stop. Government officials say it's too early to know
what caused the crash but say it doesn't appear
to be a result of terrorism. The train was travelling
from Madrid to the coast, which is a popular tourist spot. Tomorrow is a local holiday so many of the travellers
were probably heading for the coast to celebrate.

The Spanish prime minister is
expected to visit the accident site tomorrow morning.

The Duke and Duchess of Cambridge
have ended two days of speculation announcing their baby's name - The young family
has left Kensington Palace after a visit from the Queen.

The bookmakers tipped George as the favourite name
for the new baby. MAN: Have you called him George? (LAUGHS) Wait and see, Peter,
wait and see. Now we know they were right. In full,
it's George Alexander Louis. The announcement came
via social media. George has been the name
of six British kings including the Queen's father. One of the Queen's own middle names
is Alexandra - the female version of Alexander. And Louis is almost certainly
a tribute to Louis Mountbatten, Prince Phillip's uncle
who was assassinated by the IRA. Kate and William aren't shying away from acknowledging
what this baby is - it's a future king. The young family
has now left Kensington Palace with William driving and Kate looking after George
in the back seat. They were heading for
Kate's home village of Bucklebury. Before leaving Kensington Palace George received a special visit -
the Queen. It's understood William and Kate wanted him
to meet his great-grandmother before they shared his name
with the world. The Queen had earlier told guests
at a Buckingham Palace reception she was thrilled.

He's an enormous child. Good solid English name.
Needed to be. Got a bit of strength
behind it, so, yeah, and the Louis adds a bit of a twist. In another royal twist, the town crier who proclaimed
George's birth wasn't officially part
of the Palace's plans, but says he took the element
of surprise when he heard the news. The timing was absolutely perfect. Now I'm more famous than ever.

A Sydney family
has escaped their burning home thanks to the quick-thinking actions
of a man driving past the house. 11 people, including a baby,
are unharmed but their Bonnyrigg house
is destroyed. Hugh Whitfeld joins me now. Good morning, Hugh. Their rescuer
was on his way to work?

It is a case on that very good timing. The man saw the black smoke coming from the house. It was just after 730 this morning. Inside there were 11 people, three generations of the one family including cousins who had stayed over after a party last night. Fortunately the motorist was driving past at the right time, he saw the smoke, ran out the front, knocked on the door. He managed to wake most of the members of the family. That allowed them to get outside. Three generations, 11 members including two

outside. Three generations, 11
members including two dogs. I saw the black smoke go up so I didn't wake anybody up
or anything then I knock on the door and then the mother was holding
probably a grandchild. She came out first then she screamed
and called her sons. Sons came out
and no-one knew there was a fire. He's a hero,
unsung hero and, ah...excellent.


No-one disputes that hero tag this morning. Firefighters say this was a very hot and difficult fire. The ceiling collapsed. They managed to get back inside but had to fight the fire from outside. The family has been checked over including a baby. They are all OK. Investigators are on the scene, trying to figure out how it started. One of the family members says speculation is that it may have started from an overloaded power board at the back of the time. More to come from here later today.

The Australian Olympic Committee has asked for
Stuart O'Grady's resignation, saying he doesn't deserve
to be a member. One of Australia's
most decorated cyclists, he's admitted taking banned drugs
before the 1998 Tour de France.

From champion to cheat. Olympic gold medallist
and 17-time Tour de France rider, Stuart O'Grady's shock confession
comes just days after he announced
his retirement. He used banned blood booster EPO
before the 1998 tour, a year he donned the yellow jersey. He's been quoted as saying: He says he only did it once. This is what he had to say
just six months ago in reaction to Lance Armstrong's
spectacular fall from grace. The problem with people like Lance
or any drug cheat is they think everyone else
is doing it, so they have to do it. His reputation was untainted
by the scandal but Tour Down Under director
Mike Turtur had this to say two days ago. That's his position. He's stated that many times,
you've just got to trust him. O'Grady's among 30 riders
from the 1998 Tour named as having either questionable
or positive test results.

Already, the Australian Olympic
Committee's asked O'Grady to resign from its Athletes' Commission but his most recent team's saying one mistake shouldn't tarnish
an exceptional career.

AFL chief executive Andrew Demetriou
has denied reports he advised Essendon to report
its supplement program to ASADA, before the team was questioned. Michael Scanlan has the details.

Good morning. Essendon are back in the headlines. The 'Herald Sun' is reporting that the AFL CEO to find the club president Dave Evans on February 4th, the night before Essendon self reported its possible use of performance-enhancing drugs. It is claimed a witness told ASADA that it was during that discussion that Andrew Demetriou raised the issue of whether the Bombers had been involved in the use of banned substances. They say any suggestion that Andrew Demetriou may have tipped them off is not true. The club's coach, James Hird, addressed the issue a short time ago.Andrew made a call at some stage in that meeting. The contents of that call was discussed. We have all given our version, told the truth to ASADA and that will come out over time.We are expecting to hear from Andrew Demetriou later today. He was on Radio Ellia this morning and he said the conversation with David Evans was

he said the conversation with David
Evans was in regard to the phone conversations he had been having with media.They made it clear that there were several clubs that could be implicated. They would not disclose to the clubs were.Beside a's investigation will be handed down next month. Andrew Demetriou 0 and others say they are looking forward to the facts rather than the rumours. The One Nation Party says it's fully supporting a candidate
with links to an anti-Muslim campaign. It involves offensive stickers
being placed on products at one of Australia's
biggest supermarket chains. Brisbane reporter Erin Edwards
broke the story.

Good morning.

Good morning. The brand targeted was Nestle. They targeted Milo and instant coffee at this supermarket. The staff notice by -- the staff notice the stickers. The products contained a sticker that said:

They were allegedly purchased on a website. The co-founder is the One Nation candidate.I sold these stickers to raise awareness that the Muslims are forcing a halal Taksim asked research to find out too. Part of that halal tax goes to fund terrorism.Queensland's Muslim community says it is appalled. It has called on One Nation two days endorse him. They said he had his full support this morning. One person will appear in court Tamara charged with product contamination. There are allegations that the products, the packaging was tampered with but there is no evidence that the food itself was contaminated. And an abrupt ending to a hot-air
balloon ride in the Netherlands.

Victoria's parole board chief
has offered to meet Jill Meagher's widower to explain its handling
of Adrian Ernest Bayley, the man who raped
and strangled his wife. Tom Meagher
went to the media yesterday after the board
failed to reply to his emails. Criminal lawyer David Galbally says
the delayed response is appalling, but also points out
there could be legal reasons for information to be withheld. I think the Government
should meet with him and should talk to him
about compensation for what has taken place. Mr Meagher wants
an explanation or apology. To finance now and joining me is Martin Lakos
from Macquarie Private Wealth. Hello, Martin. Good to see some better
economic data out of Europe, but US markets were soft?

Good morning. Yes indeed. The markets were happy with the manufacturing data that came out of Europe. The market has rallied about 1%. Manufacturing came in a positive sense and that is a good surprise in regard to the German economy, in terms of the covering its growth profile. That was tainted for the US markets by the fact that we have weaker than expected results at of Caterpillar. That is despite better if new home sales, up 8%, 493,000 new homes. How is our market trading? The data yesterday in regard to inflation was gone. There is an expectation of further rate cuts in August. Our market is softer, down 17 points. Mining and energy are the worst hit. Banks, defence and telecommunications. The Australian dollar hit 93 US cents. Trading is some Judit today. -- subdued. 11 people
have escaped serious injury after the hot-air balloon
they were in crashed in the Netherlands. Home video shows
the balloon coming down over a lake in the town
of Almere, near Amsterdam. The basket hits the water
and starts floating to shore, as the balloon billows out onto
the road near oncoming traffic. Everyone managed to swim to shore. Two people needed treatment
for minor injuries. Next in Seven News - the Bombers preparing to test
themselves against the AFL's best. And history at the MCG, as a record crowd watches Liverpool
do battle with Melbourne Victory.

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More than 95,000 fans
packed into the MCG last night to see Premier League giants,
Liverpool, defeat Melbourne Victory. The crowd was a record
for Australian football and the biggest the Reds have ever played
in front of while on tour.

More then 95,000 fans belted out
those famous words as one, creating one of the great
Australian sporting moments. (CROWD SINGS):
# You'll never walk alone. #

A spectacular backdrop at the MCG for Liverpool's
first ever game in Australia. Raheem Sterling lively for
the Premier League giants early... before a Reds legend
brought the house down. COMMENTATOR:
Back inside for Steven Gerrard. Liverpool lead!

Fabio Borini almost pulled off
the unthinkable. Borini again! The always controversial
Luis Suarez, one of 10 substitutions at once, And fittingly,
the Uruguayan had the final say. And there he creates number two
with a piece of absolute brilliance. Liverpool 2-0 winners in front of the biggest crowd for an Australian football match
ever. Tonight it was really
special, you know, 95,000 singing it - unbelievable. The lads have been blown away. (CROWD CHEER) To AFL, and Essendon's
hopeful skipper Jobe Watson can return from a broken collarbone in next week's match
against Collingwood. The Bombers are preparing for tomorrow night's
top-of-the-table clash against flag favourites Hawthorn
at Etihad Stadium.

They're the best team
in the competition so that's always a huge challenge and we need to be at our best
to be competitive against them. Essendon is set to welcome back
gun midfielder David Zaharakis from a minor back injury. NRL cellar dwellers, Parramatta,
are determined to start their climb up the ladder in tomorrow night's
clash with Canterbury. The teams are playing
for the Bandaged Bear Cup, and a visit to Sydney's Westmead
Children's Hospital has put the Eels' on-field woes
into perspective. That's not an excuse and that's not saying
it's not important to win and lose but there's definitely
more important things in the world than footy. In Brisbane, the Broncos have lost prop
Ben Hannant to a niggling calf injury for tomorrow night's Queensland
Derby against the Cowboys. David Warner
is on track for an Ashes recall after blasting 193
for Australia A in Pretoria. Nathan Lyon
is also desperate to play in the third test at Old Trafford. The spinner insists he's not bitter about being dropped
for teen sensation Ashton Agar. I was as excited as everyone
and especially disappointed when he fell short of his milestone
in his first test. Skipper Michael Clarke's
back injury has flared again. He'll miss this weekend's tour match
against Sussex.

Former MotoGP world champion
Casey Stoner will be back behind the wheel in this weekend's
V8 Supercar round at Ipswich. Racing in the Development Series has
been a major challenge for Stoner. He's heading to Japan next week
for test sessions with Honda, sparking speculation
he may return to bike racing.

Most races I have done so far this year I have come from last, through the pack. It is making a lot of hard work and we are not learning enough. The V8 Supercars
are live on Seven this weekend. Stay with me here
on Seven's Morning News. I'll be back with all the weather
details after this break.

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Checking today's weather - a front and trough are moving
through WA and South Australia bringing a cool change with showers. Another trough
over South-East Queensland is triggering a few showers. Mostly fine
in Brisbane. Sydney,
mostly sunny. Possible late showers
in Hobart. Melbourne,

some cloud. Late showers
in Perth. Darwin
will be sunny.

And that's Seven News to now. I'm Ann Sanders.
Thanks for your company. Goodbye. Supertext captions by
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