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(generated from captions) is Order! Order. Tonight -

is this man Labor's weakest

link? The coalition thinks so. Now they're bringing out the

dirt file. We know that Craig

Thomson lived the high life on

the back of these union credit

cards.

cash advances. We know he got

trips payments for escorts. Overseas

trips and funds spent on his

own election campaign. But the

Prime Minister is standing by

Craig Thomson whose political

demise could trigger a

potentially catastrophic by-election. I have have complete confidence in the member for Dobell. This

Program is Captioned Live Good evening and welcome to

'Lateline'. Tony Jones. As Britain's political and intellectual elites round on each other over the causes of the riots in that ricochetted

around the UK last week, one of

the done tru's leader writers

has entered the debate of with

sides. a scathing debate of both

author Howard Jacobson says sides. Booker Prize winner

that the wealthy have long

averted their eyes from the brute facts of brute facts of social

inequality of England.

Liberalism lies in ruin having

created the cultural binge that

gave looters their baseless

sense of entitlement. Rough

ride, opposition mounts the

overhaul planned for the Flying

Kangaroo. More details emerge

Mosman bomb hoax appears in a as the man accused of the

Kentucky court. It's been

revealed a potentially dangerous by-election which

could have threatened Gillard Government's hold on

power has been avoided by the

financial bailout of a Labor

backbencher. Former union

official Craig Thomson ran up a

reported $90,000 bill by taking

legal action against media

claims he'd used his union

funds to pay nor prostitutes.

Unable to pay the legal bills, bankruptcy would triggering a by-election for

his seat on the NSW Central

Coast W latest our political

correspondent Tom Iggulden in Canberra. The opposition smells

blood. I like my meat. That's why I get along with Tony. The by-election would put Labor's

and hold on power on tender hooks

and and sabis trying to force

one by embarrassing the Prime

Minister into cutting loose one

of her

to justify how she can have

confidence in the member given

all the vary quus events. The

member is Craig Thomson

belatedly revealed a cash gift

made to him in May from the

Labor Party reportedly worth

$90,000. It was made after Mr Thomson ran up legal bills

suing a newspaper which reports

that during his time as a union

card to pay for prostitutes. He boss he used a union credit

says someone forged signature on the credit card.

Is the Prime Minister satisfied

that it is proper for the Australian Labor Party to

contribute some $09,000 towards the member's private defamation

action against Fairfax, which

claim he abandoned shortly

after the court compelled the

disclosure of his credit card

and telephone records which

appear to give the lie to his

claim that his signature was

forged. The gift may have helped Mr Thomson avoid

bankruptcy which would have

forced him out of Parliament.

The Prime Minister was asked

about it directly in the lower

house. I'm advised by the

member for Dobell that media

reporting on the matter he

raises is incorrect and his statement of interests was updated in the interests of updated

full disclosure. The cash gift

to Mr Thomson is a political

used it to revive the one for the Opposition who have

2-year-old allegation against

the NSW MP. Craig Thomson

lived the high life on the back

of these union credit cards.

We know that he got cash

payments for escorts, overseas advances, we know he got

trips and funds spent on his

own election campaign. Given

that Thomson's mobile telephone

number was used to number was used to contact the service provider, and that his

driver's licence was produced

to verify payment, how did his

credit card, driver's and mobile phone find their way

into the possession of another

person? She can run, she can

from this matter. There could run, but she can no longer hide

Fair Work Australia's be more ammunition to come.

investigating Mr Thomson's use

of the credit card at the

request of the union that gave

it to him. Its report could

either establish the veracity

of Mr Thomson's defence or

provide the about opposition a

launchpad for its seat. Another parliamentarian target a by-election in his

is choosing the time of her

departure. Liberal Senator

Helen Coonan is quitting after

16 years, including a stint as the Communications Minister in

the Howard cabinet. Mr

Howard's paid tribute to her

tonight in a statement. His

54-year-old former chief of

Sinodinos is thought to be a Staffordshire staff Arthur

logical replacement. Details of

Madeleine Pulver's collar bomb

but it's still unclear how the suspect came to focus on the Pulver family. Police allege

that Australian businessman

Paul Peters attached a fake bomb to the Sydney

a bid to extort money from her

parents. Peters has appeared

in a court in Louisville in the

State of Kentucky where he was arrested yesterday by an FBI

Swat time. Lisa Millar reports

from Louisville. Still wearing

the clothes he was in when he

was arrested, Paul Peters was also burdened by hand cups and

leg shackles. Any word for

Madeleine? I hope she's well. He spent his last night

of freedom at the home of his of freedom at the

ex-wife and mother of his three

school age children. She went as she sat in court. The

situation facing the family

clearly overwhelming. She's handling this very poorly.

She's in shock. This is hard

on her and her children. In

court, her ex-husband spoke

only once to acknowledge he understood his silence. Paul Peters's lawyer says the Australian will fight

the charges. I'm not going to

share but or anyone else

anything that he's told me. I will tell you that he will

contest these charges. Tell me

if this gentleman had any

know of. It is my understanding trouble prior to this that you

he has no criminal history

whatsoever. He has been a law

abiding citizen. It is abiding citizen. It is my Attorney-General in good understand he's a

standing in Australia no criminal history. Police allege the 50-year-old launched the hoax with the hoax with a baseball bat.

They say it was an email trail

that led them to the man they

believe is the attacker. Documents filed in the

Louisville courthouse reveal

what was on the note attached to the device to the device around Madeleine

Pulver's neck.

Police say the note then instructed Madeleine Pulver not

to contact the police and

stated:

Also on the note police say

was an email address which created in Chicago and then

accessed only three times, all

in Australia in the hours after

Madeleine Pulver's initial call to police. The police say the

email account was accessed on a

computer in this Central Coast

video store. We had like 7 or 8 police here, detectives,

including computer guys and

forensics, and they were pretty

secretive about it all saying

it was a classified

investigation, so they didn't really tell

account was also allegedly used

at a library at Kincumber north

of Sydney. In both instances,

security camera footage shows a

man fitting Paul Peters's description. Five days later,

Paul Peters flew out of Sydney

nor Chicago and on to Kentucky

despite the new details

submitted to the Louisville

court, the Australian police officers who came to Kentucky

to arrest Paul Peters aren't

talking about the case. I can't comment on the case. New details are beginning toe

haemorrhage about the accused. Paul Peters. He was educated

at an elite Sydney private

school, had a law degree and

ran an international finance

business. Half a world away,

he's saying he'll plead not

guilty to charges that include

break and he entering and

kidnapping. Paul Peters will stay in custody until his next

court appearance on October 14th. Australian authorities

have until then to make the

formal request for his extradition. Lisa Millar, 'Lateline'. A letter containing

damaging claims about News International's knowledge of

illegal phone hacking is being

described as a smoking gun in the ongoing investigation of

the scandal. Written by a

disgraced former reporter, Britain's 'News of the World'

of the paper, the letter claims

phone hacking was routinely

discussed at editorial

meetings. Its seniors figures under Rupert Murdoch later

tried to cover-up the criminal

behaviour. Europe reports from London. The hacking scandal was never going

to disappear but its burst on

the front pages in dramatic fashion. Thanks to Clive Goodman, the the World' royal reporter, he

was jailed for hacking and

wrote this letter four years

ago arguing yes should keep his

old job. As he says he wasn't

the only offender. This

practice was widely discussed

in the daily editorial conference until police is the

reference to it was banned the tore. Clive Goodman went

on to provide assurances he was

given by the legal manager Tom

Crone and editor Andy Coulson.

After this letter they paid

him 240,000 pounds. It looks

as all the worm they paid him

to shut up as well. Insofar this evidence is a cover-up,ty

think that's pretty clear. Although precisely by who remains an open question. Andy

Coulson went on to become the Prime Minister's communications

chief and has always said he

knew nothing of the hacking W

former news international staff

appearing to contradict each

other the parliamentary

committee has to sort fact from

fiction. Good man's accurate

we don't know that yet, it is

an allegation; if it is accurate the whole foundation

of the company's the last three years collapses. Conflicting legal

advice given from lawyers

Harbottle and boot tell that James Murdoch said cleared other employees of hacking. It

is a key bit of outside legal

advice from senior counsel that

was provided to the company,

the company rested on

it. Harbottle and Lou it. Harbottle and Lou is

wissaid it was asked to conduct

a narrow examination of

documents relating to good man and it has been misused to

provide a wider exoneration of

the whole organisation. We're

receiving accounts that convict

each other at various points and not in a number of areas

they can't both be right. The

committee will recall some

witnesses and James Murdoch is

likely on that list. There was

some bright news, senior

policemen had just been cleared of any involvement in of any involvement in the

hacking scandal. Philip

Williams, 'Lateline'.

To tonight's guest Howard

Jacobson is an author

commentator and columnist with the Independent newspaper. His most recent book The Finkler

Question won the Mann bookser

prize. In recent days he's

involved himself in the fierce

argument over the causes of the

wave of rioting that swept

across the UK last week. That

tea bait has so deeply divided Britain's political and

intellectuale leets that Howard Jacobson

Jacobson was moved to write that in the argument actually

mirrors the aggression of those

who drive cars at whoever

stands in their way. He joins

us now in our London studio. Thanks for being there Howard Jacobson. My pleasure. How are you? I'm very well. Tell us

what you were getting at there?

I think it is very interesting

that if you read about what's

being going on in the streets,

even those people who are most moralistic about the violence

on the streets, about the

hoodlum behaviour and no-one calls it anything else, themselves almost hoodlums in

words. People are killing one

another verbally in language

this. Has been going on a long

time over here and probably over there too on the internet. Anybody who looks at the

internet will have noticed how

much more violent language has

become. You don't disagree

with somebody now, you vilify

them, you kill with language.

Of late it's got worse. Over

this particular issue it is

very strange to have grown-up

politicians and academics

trying to put violence of the streets and

mirroring in the violence of their own, the I'm ter

Perrettness of their own disagreements with another. Has this changed over

this issue and if so what's

changed it? We don't have to think too far in British

history to remember equally

passionate debates. It is

always dangerous to say that

one has hit a new low and I wouldn't want wouldn't want to say we've hit

a new low. You're

this is the UK is a country

with a savsavage sense of

humour. We the savagery of our literature.

At this particular moment when it would seem to be important

that we try and put our

imagination s to work about

what's going on, what the lives

of these people must have been

for them to be doing this,

which is not to say we're

forgiving anything. We have to

preface everything we're not excusing

not. At this particular moment

would you have thought

commentators would say let's

look at this very calmly and

put to rest our own differences. Our only differences are not only not

going to solve this, they're probably probably contributory reasons

anyway to why we're in this

mess and it is a mess. We'll

get into the mess shortly. We

are seeing to some degree a similar debate being mirrored

here in Australia about the riots. riots. There's veer mans to

that themselves as if the riots

have become tangible proof of

one social theory or not. If

you see the cause in social

inelectrical quit you're a

leftist , moral disintegration,

you're hide bound conservative.

It is the same thing is

happening here. Yes. The

mysterious thing it makes me

sound like poly Anna, that they won't at Luft particular occasion to hold

hands over it. You might both

be right, guys, both parties

might be ride, ideologies never solve anything, in the core of

a ideology will be some stand understanding of something.

The problem is when it is

pursued to its ultimate

extreme. If both sets of ideologies would say a bit of

you and a bit of me could make

sense of this, this idea that you

you must... The Liberalism must be excluded

has made us go wrong in this or that authoritarianism must be

excluded because it's made us

wrong, is folly. We need both. Each argument does not

necessarily cancel out the

other. Is it the nature of

modern politics or as you

implied is it something to do

with the internet, the

anonymity of blogging in some

cases and beyond line commentary, of Twitter and

other social forms of media?

Do you sense that that is all

playing a role here? I think

it's playing a role. One

shouldn't exaggerate the role

it's played. I was horrified to discover this wassing

organised by a BlackBerry. I

own a BlackBerry. I'm carrying

about with me a insend dri

device here. Not that I would

have a clue how you talk to

other people by BlackBerry.

These things are only as good

as what you put on them. We've

had examples this year in Arab

countries in which the social together in causes which we've

decided are good ones and decided are good ones and now that people have got together

in causes which we've deciderd

bad ones, you can't

It is the messenger. It is

clearly a very dangerous

messenger. The sad thing

meanwhile as we go on fighting,

the problem went go away. We

don't know what's happened

this. Is what's fascinating

about this. We keep saying

it's you are come up pence, but

we don't know what's come up. We don't know what actually

this is about, how far it political, driven by poverty,

how far it about race, you'll

hear some of these people that

complain they feel they're

being put on by the police, being put on by the police, be racist themselves and say it all to do with Polish

immigrants. Nobody knows what

it is about. The most fascinating part to me here

we're spotting something we

might get some unanimity is the

degree about it is consumerism.

Someone called it shopping with

violence. It's like it to

watch that looting. though they are mirroring, it

is like a morality tale. These

are the people who have been

told by advertising and television and their magazines that they must have objects. It is as though

they're saying okay, you've

told us we must have these objects, these are the objects

we must have. These are the

objects we keep on telling you

which we can't afford but

behold that's the objects we

have. If that's not a morality tale I don't know what it

is. You argue we and I the wealthier parts of society

need to acknowledge in this our

own darkness. What blame could

possibly be laid at the feet of a calm, middle class family

sitting quietly at home?

Probably anyone and you can't

lay the blame either at any individual banker who has

decided he would like is it

have a 9 million bonus this

year. That's not how it,

works. Blame is not what I'm I myself should

about. If we're seeking for an

explanation hand how a tone of

society is created, then what

looks like an absurdity, this

banker can't be responsible for

that boy stealing a pair of

trainers, trainers for good

sake, they're so horrible, but

I have to tell you living here

in the last few years I've felt

the tone of this country has

sunk to a new low. It's been very ugly. very ugly. We've had politicians with their expenses

ask scandals, the other story

which alternates with the hoot

loom story and the relation to the police and

politicians. We've got

banker's bonuses. Financial

scaf venners affecting the

market. The general tone of

society is not good. It

doesn't matter whether any of

these individual looters read

the financial times or read The

Economist and know what's going

on. That's not how things work. Little by

about on den see or greed or an

ugliness or lowness of tone

creeps into society and then

we're all affected by

lot of this appears to be in

the way you're looking at it

the massive discrepancy in that

society and in many others

between the wealthiest and the

poorest members of the society.

The Economist, as you point

out, is pleased to publish an

annual rich list. Should is

they publish a poor list with

the poorest poorest communities? Is that what you're suggesting? I

think she shouldn't publish a

rich list. I cringe whenever I see one. I just think what

good does it do to society to

know who these rich people are and how much money they've got.

What discontent does it here

and there and little by little

drip, by drip, discontent in

the social fab Britain of a

colour. How good is that? How good is it to have

television pushing health and

fame based on absolutely

nothing at these kids all the time. It is interesting to me what it is that they wanted to

loot. They wanted televisions

and they wanted trainers. They

didn't, easy to be superior

about it, they didn't raise

bookshops. There you are it

shows you it is not about

education. It is partly about

education. That's what so up

setting about the sight of those and also about the violence is just that

sense of you can see how

dispossessed they are by what

they want. Is that all they

want? You need a Dickens. I

kept thinkings of dick Kens seeing those little boys

staggering between a flat screen television. They could

barely carry. It reminding me

of the beginning of the dick

Kens novel. They don't know

what to do with themselves. They don't

They're out of it. All they

know is that these seem to be

the desirable objects in our

society. Who has given them that idea? that idea? They're not born

with it. So we don't get taken

out and stoned by the advocates of the other side of the

argument, let's look at something you're quite clear

about. The idea of Liberalism

lies in ruins. Tell us why

you say that? I say that because having because having made my attack

on everything else, I want to

make it clear that that doesn't mean to attack where conservatism has taken us does

not moon you can nth up on the

left. Reject the lot or accept

the lot. You done have to buy

one or the other. The

Liberalism I'm explaining of is

the thing that we all know

really that's going on in

schools. We run frightened of

children. We're a

runs terrified of children.

Parent are terrified of children, school teachers are

terrified of children. If you

lay a hand on me, say kids, they say to their

parents, I'll call the police.

Even the roughest of these kids

have imbibed a message of their

human rights, their right not

to be attacked, their right to

be have respect. They have a

sense of their entitlement. I'm not going to buy the rights

without obligations things that

Cameron is going on, what

obligation do they have to a

society that gives them nothing, just about none, but

the one thing they do seem to

have some terrible parenting, from a society that's

frightened of making a judgment

about them, they go to school

and they don't learn anything,

one of the reasons among many

that they don't learn anything

and one of the reasons is that the schools aren't they good

and are underfunded and the rest of we've been frightened, Liberalism has been frightened

over the last 40 years to say

these are things you should know. I don't know wrong, just knowledge. This is

knowledge you should possess.

Kids now feel empowered to say

who are you to tell us what we

should know? The answer is we

teach you. That's the answer.

We teach you. You sit down,

you shut up and you listen.

Once on a time it didn't work

for everybody, but a strong

teacher with confidence as to what he was doing it and what he wanted

to pass on to pupils didn't turn them into little robots,

it took kids confidence. One

of the things we see with the

youth which has been empowered,

if you like, to believe in

itself and to believe in its

own rights, at the same time as

it actually has nothing, it

that they've got no

language. Let me interrupt you

on that point to bring you to one of the interesting points,

one of the many interesting

rates you make, the i idiot at

what of these groups as you

describe it welcomedly Liberalism as Liberalism as a rebellion against conformity. Are you

intuding gangster rap. Yes I am.

Q. Some popular among middle class kids as well. It

shouldn't be. It's ugly, brutalising, inah particularly,

it's monotonous. Someone has

got into trouble, a historian

David star key got into terrible trouble which terrible trouble which was

saying something clumsy in the

way he put it but he

to get to the bottom of this

gangster rap. He was called a

racist. He said this has been

imported from Jamaica, which is

not a good idea. It is

impossible to have a conversation about what that language

language means, about David

star key talk about about fact white kids are becoming

black kids. This was called

racism. It wasn't called

racism when Ali G had a cod I

did sketch about. He had every

white kid wherever that was

happening want be to be a black

kid. It wasn't racism when

Norman Mailer 50 years ago

white men wanting to being black men. Where is the

backlash to stark key? He said

it on news night. it on news night. He said it

on a equivalent to yours I

would imagine, he said it in an

argument with other people and he was very ill-advised in his

choice of language and his

presumably you have David star

key's history programs over

there, us arrogance led him

into thinking that he defeat

anybody in an argument and he

was actually beaten up. It was

almost like a mirror image of going on in the streets. He

looked at the end of a sad old

rightist man that shouldn't

have been involving himself in

this subject matter. He was dressed wrong. His accent was

wrong and essaying the wrong

things. The speed he was

pounced on for daring to go

into an area. There can't be

any no-go areas in this

conversation. I want to wrap up

with some of your thoughts.

You argue for the liberals don't understand role that ill Liberalism plays

in governing society,

guidelines, example, authority boundaries. Doesn't this logically mean that David

Cameron is on the right path

and that the country will have

to brace itself for an

in-Liberal backlash after in-Liberal backlash after this

cultural binge as you call it?

The been pointed out to me my

use of the world in-Liberal

there was rhetorical. Liked it. Liberalism contains a properly informed Liberalism

contains the possibility of a belief in authority and

discipline and the rest of it.

I don't say that everybody that Cameron is saying makes

nonsense. I say that much that

Cameron is saying it right. I

say much that Ed Miliband in

the Labour Party is saying is

right. We will get nowhere if

they simply front up against

one another and insist that the

other is wrong. To a degree

they're both wrong and to a

degree they're both right. Do

you think we'll see a single unified theory of why this

happened? No, there can't be

one. I don't want either. That will be a third ideology.

There cannot be one single unified theory of what happens.

We'll never know what happened

because it's happened to

several thousand individuals

and each one will have his own psychological reasoning for

doing what he's doing even if

the individual person knows nothing about it. That doesn't

mean it will defy explanation,

but it will be a very complex

explanation indeed. Good luck

trying to deal with it. We thank Jacobson for coming to join us

on 'Lateline'. Thank you. My pleasure. Unions and members

of Parliament have indicated

they'll oppose the Qantas restructure on two fronts,

international industrial action

and legislation. The has announced plans to shed

many jobs as it embarks on a told oeld bold push told oeld bold push into Asia. With 1000 Australian jobs

to go, union says they'll flex

their international muscle in

order to stop what they claim

is a move by Qantas to shift

jobs offshore. The Teamsters, Transport Workers Union of

America, Unite in the UK,

unions throughout south-east

Asia have sworn their

commitment to make paying jobs are maintained in

any country and are simply not

offshored to one country to

undercut another. There's no off shoring of the jobs. What's actually happening is

that are reducing our service

into the UK because they're a

mass is of loss making

operations from bang con to

London and Hong Kong to London.

Those jobs are gone. They're into the going anywhere else. The Qantas chief was stalking the halls of

Parliament House to drum up

some enthusiasm for restructure will see two new

airlines created in Asia and

the acquisition of 100 new

aircraft. He hit turbulence instead. Some of the commentary

that the unions are make the precisions

precisions they would like

precisions they would like to put on would limit Qantas's

ability to protect the 35,000

jobs we have here in Australia. The Qantas keep on

saying they have to make these

changes to remain excess tiff.

That's one great big fat lie. They They are about to announce a $500 million fly the planes are concerned by

what they see asse reading safety standards at the

airline. We're concerned about

the off shoring of skills of

all our workers. Nick Xenophon

introduced a bill to guarantee the same wages and conditions

as Australian based employees.

He's also suggests changes to

the Qantas shale act. To ensure

it is strengths this end so

this behaviour isn't allowed to continue. The Greens say

they'll support any inquiry whether the whether the Qantas restructure reaches reechts breeches at

act and are asking why Qantas

should receive should receive protection by the government on routes. This

seems to be about increasing a

thin edge of profitability at

the expense of some local jobs

and it is going to have serious

impact and all the while

expecting the government to

continue to go into bat in

Qantas in the international

arena as Australia's national

carrier: It doesn't have any

clauses to stop an airline like Qantas using Qantas using its expertise to create ventures in other

countries where it can make

money and bring that money back

to Australia. Some Labor members had other suggestions to Alan Joyce's claims Qantas

International is losing

money. If the company is losing $200 million maybe they should start pruning from the top. Bob

Katter showed tis diversity

using from defending the word

on gay to free character assessment on Sydney executives. There would be few

people in the world compare with them. Hamish Fitzsimmons, 'Lateline'. A shoe has been found that Queensland authorities believe

could belong to missing teenager Daniel Morcombe. A

large police and SES volunteer

search for the boy's remains

has been under way for several

days on the Sunshine Coast.

The shoe found today will now undergo scientific testing but

police warned the results could

take weeks. The Morcombe

family has been notified. Last Saturday 41-year-old Brett Peter Cowan Peter Cowan was charged with

the boy's murder. A quick look at

at the weather. Light rain and

a possible storm for Brisbane,

early rain in Sydney, rain ease ing in-Hobart, a somehow

for Melbourne, Canberra and

Adelaide mostly sunny in Darwin

and Perth. That's all from us. If

If you'd like back at tonight's

interview with Howard Jacobson

or review any of the Lateline's

stories and transcripts you can

visit our website and you can

follow us on Twitter FaceBook. I'll join you tomorrow night. Until then, good night. Closed Captions by CSI This Program is Captioned Live Good evening and welcome to Lateline Business. I'm Ticky Fullerton. Tonight -

Boral's boss justifies a high

priced expansion in Asia as

shareholders fret about that

and the gloomy outlook for housing. I think in housing. I think in the longer

term we'll be gauged about how

well we grow it, how well we

develop it, and how well its

productivity comes on

board. Pallet maker Brambles lifts profit and says it will

sell the non-more document

business Recall. Private sale

is the most compelling option

this terms of both simplicity

and the po yaeptional pricing

out come. The reason that

we're coming into a hub and why

we support a hub is because we

are trying to ensure that we

have well designed proper development in the Kimberley

and I think it is important for

everybody to understand

that. To the markets, Australian investors defied

Wall Street for the next a row. The local market was up

around 1.5% despite the Dow Jones index falling this

morning. In Japan the Nikkei

is down half a percent is down half a percent while

Hong Kong's Hang Seng was up

slightly. First some breaking

news tonight. South Korea has

announced it will buy 84

billion dollars worth of

liquified natural gas from

Shell's Prelude project in Queensland.

Queensland. The state-owned

Kogas, which is the world's biggest buyer of biggest buyer of LNG, will invest $1.5 billion to take a

10% stake in Prelude which is due

due to come online in 2017. Kogas' deal with Shell

represents 20% of South Korea's

LNG needs. That's a lot of

gas. Shares's in Australia

slumped 5% today despite a big

rebound in earnings. Boral

turned last year's loss into a

full-year profit of $168

million. Investors are

concerned Boral is paying too

much to take full control of an

venture. They're worried about

the company's gloomy outlook

for housing here and in the US. Tracey Kirkland reports Severe weather conditions and depressed housing markets in

the United States and Australia

certainly took the gloss off

Boral's return to the black.

The full-year result of $168

million was in line with analysts expectations and turns

around last year's loss of $91

million. Revenue kriensed by just over 4% to $4.68 billion

despite housing area poor

performance this year the company remains confident the

American residential market is

ripe for the picking. We've

seen four years of half that

number. The operational

leverage in gearing for the

once it gets above that million

number is phenomenal. got great market positions. Some fund managers don't share that optimism. They're working on

numbers that are suggesting 750,000

750,000 by the end of the year.

I think that's probably a little

little bit optimistic given the circumstances that are facing

the US at the moment. In any

case, Boral has other ideas.

It is aiming to cement its

place in the Asian construction

market announcing its worth out Lafarge to take full ownership of its ASEAN plasterboard

business. Great business, leadership leadership market positions

right throughout Asia. It's

been growing at better than 10%

compound growth per annum.

Fantastic legs to grow beyond

that. It is an opportunity for

us to provide a beachhead into

Asia with a great distribution,

great logistics back cloth as a basis for starting that

growth. The price tag of growth. The price tag of $530

million. If you look at the two

markets, the two geographical

regions, Asia and the US, Asia is in a much better shape. That's

That's probably to me a more

positive move and maybe that's

where they're looking to direct

the businesses in the longer

term. I think it is a good

start. I think the issue there

is whether or not they paid the

right price for the business.

That's a big bite for them.

Given that the existing business isn't business isn't growing all that

well, it is counter cyclical

and is demands a leap of faith

on behalf of the on behalf of the existing

investors. It is a leap I'm

not prepared to make at the

moment. The market ha agreed.

Boral's shares plummeted an

over 6% on the board. It is difficult to find quality

assets like market positions

like this. When you find them

the prices expectrd very high. Shares had clawed back

slightly finishing at $6.69

down 5%: the bad thing from

professional fund manager's

point of view it is still point of view it is still very

sense sentence expensive.

That's too expensive for me to

buy it nor my clients. As for

the next financial year, Boral

says the outlook is hard to

determine but is banking on

improvements in the weak

residential market in the

second half of 2012. The future

of Fosters is up in the tonight after global brewer SAB

Miller announced it was take inning

inning its $10 fillion takeover

bid hostile. SAB Miller made

the $4.9 a share in June and described it

described it was so low it was

not worth talking about. Two

months on no other takeover

bids have been forthcoming.

Fosters shares added three

cents today to close at $4.96.

Shares in shopping centre

operator Westfield rose nearly

1% today despite a 32% fall in half year earnings to $651

million. The result reflected

the challenges retail

environment in Westfield's

three main markets, Australia,

Great Britain and the United

States. However, investors

seemed to take heart from the

company's announcement that $2

billion in non-core assets will

be sold. We expect that a

portion of these sales may

occur by the end of the year,

but we are under no pressure to

do so and plans for these

divestments to occur order fashion over time

depending on price. The

proceeds of the sales will be put put today whats Westfield's $11

billion global pipeline of future developments. Another

company expecting to raise

about $2 billion from asset

sales is Brambles. It is

announced plans to offload its

Recall document management

business so it can concentrate

on its global pallet

operations. The announcement

coincided with a 6% lift in

full-year profit and investors liked what sending Brambles's shares up

5%. Here's Emily Stewart. It

is not the most glamorous business, but Brambles has

become the market become the market leader in

supplying pallets and

containers. Brambles is now starting to dominate the starting to dominate the world CHEP pallet business in terms

of global footprint and

reach. The company posted a full-year net profit of $475

million, up 6% on last year. After much speculation,

Brambles has announced it will

sell its document management business, Recall, with market

expectations of around

billion. A quarter of proceeds

will be used to expand Brambles's pallet business and

pay down debt. The private sale is the

sale is the most compelling

option in terms of both

simplicity and the potential

pricing outcome. Although

market conditions have been volatile

volatile in recent weeks, the

indications remain that there will be interest. The reason for the

interest is obvious. With

revenue from the Recall

business up 10% to a record $8

15 million and Simon Robinson from Wilson

from Wilson HTM says the sale

makes sense. When you makes sense. When you think

about in a logical sense, what

does document storage have to

do with CHEP pallet

manufacturing and the provision

of pallets to supermarket, et

cetera? Brambles now operates in in almost 50 countries. Its largest presence is in the

United States where won back

big customers including coke so

la and Nestle. The CHEP business performed very well.

We had the European operations

slightly off but they were

offset by more positive results

and a turn around in the US

business as well as the

Australian and Asian

businesses. One notable success was the re-usable plastic

container maker IFCO Systems which Brambles acquired in

March. The growth areas do

relate to the IFCO business and

the re-usable the re-usable plastic

containers and also the areas

of emerging markets. Emerging

markets in particular make up

approximately 10% of the revenue of the business currently and that's expected

to grow to probably about 20%

by 2014. Brambles expects earnings for the year ahead to

grow by up to 20%. It was a

today despite a mix of results

for investors to ruminate over.

Earlier I spoke with John Milroy from Macquarie Private

Wealth. I see the local market

has gone its own way again. A

decent rally despite a slide on

Wall Street. Certainly

shrugged off those sluggish

performance from the overnight

markets and the lukewarm

reception to the French and

German comments as well around

potential changes

there. Positive to see. Banks

certainly a as well of course. Although the results today are a little mixed, markets generally took

that pretty positively. It

seemed also returns of some of those overseas buyers along as well. Blood products

CSL has disappointed the market

with its results what. Are

your thoughts on the plans for

a new manufacturing plant in

Victoria? Result as you say

was a little disappointing, down 11% on the previous period. Anything that is going

to add to their business of

course those new jobs environment of other groups

suggesting they'll be cutting

jobs here as well. The

division went very well, Gardasil a little softer and

royalties falling there also.

Finished softer, 29.07 at the

end of the day. The reject shop

suffered a 31% slump in its

profit. It was a casualty of

the Queensland floods of course

what. Did the market make of

it? It ended up being pretty

much steady on the day. It

finished 10.07 or so. The centre in Queensland certainly

did hurt them. A bright spot

was the opening of 23 stores

this year. The company is reporting their reporting their trading above the group average. Good news

amongst all the difficulty

they're facing. They're suggesting the retail

environment remains pretty

challenging as well. Qantas has worn the wrath of politicians

today. Has it worn the wrath

of investors. A brighter day

for them today. They've finished up talks about the challenges

facing about the business and

reiterating the centralgy

they're going to undertake with

reducing that capex around the

A380 and the launch Asian

short hall carrier. They're in

the first phase of that

five-year turn around. Markets

probably impatient sometimes as

that was witnessed yesterday.

That is a five-year turn around

going to take some time to come

to true wish.

the day. John Milroy thank you

very much for joining us

today. My pleasure. To the

other major movers on the local sharemarket dropped nearly 3% despite

winning a four year $200

million contract to provide installation and maintenance

for Foxtel customers in four

Australian capital cities. Macarthur Coal edged lower

after again urging shareholders

to take no action on the

takeover bid from Peabody.

Retail had a good day with one of the best performers

gaining nearly 4%. Woolworths

put on 2.25%. Turning to currency markets. currency markets. The dollar

is little changed against most major currencies tonight.

On to the commodities markets

now.

Australia's biggest oil and

gas producer Woodside Petroleum

delivered solid half year results tore

results tore under its new Chief Executive. Revenue rose

7% over the previous year's

half and while net profit did

fall 8% to $8 29 million, that

was due to an inflated number

in the previous year when the

Ottway assets were sold. The new chief Peter Coleman has been brought across from Exxon

Mobile and I spoke to him earlier. Welcome to the program, Peter Coleman. Thanks

Ticky. It is wonderful to Ticky. It is wonderful to be here. Analysts seem quite

pleased with that 3.6% in your

underlying profit due to better

oil prices. How do you see the

second half panning out. ? We see a continuing strength in

oil prices. As we said during

the call, a lot of our oil

prices we LNG sales is linked to oil

price on a lag basis. We'll

enjoy high oil prices out for a

few months ahead of about the economy more

generally? Of course, global economic factors affect

Australia up all. We have a

long-term base and in that

business we need to take very

long-term views of things.

Designing a business can go

through these peaks and troughs

in the

very strong balance sheet T as

a conservative balance sheet.

It is designed for some of the issues we're talking about. It

is designed for us to advantage of the opportunities

in front of us. You're the new

man with a lot on your plate.

Where are you putting most of

your focus. . Our focus is on

our foundation business. Our North West Shelf and Australian business delivers searier

returns from us. Woodside and

the people of committed to maximising the

value out of that. We is have this

this wonderful sweet of growth

tubts in front of us. Pluto first. You had a big $1

billion cost blow-out in June.

You pushed back the start of

the first train. We've also

got Pluto two and presumably that will be driven by

exploration results. How

critical is Pluto to being

developed to the viability of Pluto 1? The

first train is a wonderful

project for us. As you look at

the first train, what we call the foundation project for Pluto, you can see we're

forecasting for it to come on

stream in late first quarter

next year. That's going to

provide a real bump up for us

in our revenue stream. We'll