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Live. Tonight - Malaysia's luke-warm response to the Prime Minister's asylum centre

initiative. Victoria's other

great race - John Brumby pulls

the State election trigger. A

key suspect identified in the

Yemen parcel bomb plot. And

Melbourne in the mood - a city

primed for a special Cup. Good

evening. Siobhan Heanue with

ABC News. The Prime is still trying to sell her

asylum seeker initiative in

Asia, but so far she's received

little more

interest. Julia Gillard's in little more than polite

Malaysia, where she's been

talking up her plan for a

regional processing centre.

But the Malaysians say there

are outstanding issues and they

want more information before

backing the idea. To

complicate matters, the PM

arrived in Kuala Lumpur to find

talks with her Malaysian counterpart cancelled due it a

suspected case of chicken pox. Chief political correspondent

Mark Simkin reports. The

Malaysians rolled out the red

carpet. All the way from the

plane through the terminal and

treatment continued outside the out to the street. The VIP

Prime Minister's office, but

one thing was missing, the

Prime Minister himself. He's

sick with suspected chicken pox

personally conveyed to the and cancelled his events. I and cancelled

Prime Minister my best wishes

for his speedy recovery, and I

take this opportunity to convey

those best wishes publicly. Malaysia's deputy

Prime Minister stood in for

Julia Gillard's first stand-alone bilateral meeting. He raised He raised Australia's proposed regional asylum seeker centre,

demanding more detail. A lot

more needs to be done and I did

mention earlier that we need to

see how this mechanism can

work. Hardly a ringing

endorsement, according to the

Coalition. The Prime Minister

should not mistake polite

conversation at regional forums

for any sort of concrete

support. Malaysia's a key

transit point for asylum

seekers. Its support will be

crucial to any regional

solution. We're sharing

information, we're working

through, and that will be

across any area of or further dialogue that

Malaysia raises. On a free

trade agreement, the two

countries are speaking the same

language. We hope that this

will be moved forward by next year. Malaysia is a substantial

trading partner for freer trade between the two countries is in everybody's

economic interests. This

evening, Julia Gillard will

move on to Jakarta for more top-level talks on people smuggling. While the Prime Minister's reaching out to

regional leaders, her

reaching out to community Immigration Minister is

leaders in the Adelaide Hills,

the reluctant home to a new asylum seeker detention

facility. Chris Bowan met

speak to local officials but didn't

speak to the residents saying

"not in our backyards". If I

was afraid of coming here, you

would be having an empty press conference, you wouldn't be talking to me today. The centre will be open by Christmas. Victoria's Premier has chosen Melbourne Cup Eve to

fire the starting gun for the State's election campaign. The

Labor Party, with John Brumby

at the helm, is chasing a

predict record fourth term. Analysts

predict his Government will be

Greens are a force to be returned, but they also say the

reckoned with. There's only one

contest on the minds of most

excited about the election. Melburnians. You must be

Couldn't give a (bleep) Vins

go to the polls on the 27th of

this month. The Premier

dropped in to see the Governor, marking

marking the official start of

the campaign. Labor has been

in power in Victoria for 11

years, since its surprising win

over Jeff Kennett. There were Labor landslides in 2002 and

2006 under the leadership of

Steve Bracks. John Brumby took

over in 2007. We will deliver

competent, stable, experienced

Government. Ted Baillieu has

been the leader of the

Coalition for four

trying to convince vins the

Government has become arrogant

and apathetic and the State's

crime problems are Labor's

fault. This Government has

failed to deliver police,

failed to deliver police on the

streets. The Coalition has been

making up ground in all the

latest opinion polls, but it needs 13 seats to win and political an vices believe

that's highly unlikely. But

Labor's biggest threat comes

from elsewhere, a recent

Newspoll revealed that almost

one in every five victorans is

considering voting Green. That would suggest

would suggest that the Greens

are very well placed to

possibly claim three or even up

to four seats in inner

Melbourne. But some predict the

Greens could take as many as

seven seats off Labor in the

lower House, including two

belonging to cabinet ministers.

A siege at one of Baghdad's

biggest churches has ended

violently with more than 20 people killed. forces stormed the Catholic

Church several hours after Al

Qaeda militants seized the

building and took more than 100

parishioners hostage.

Survivors say they were rounded

up and beaten by the attackers,

who were wearing suicide vests.

When police moved in, the

insurgents set off their insurgents set

explosives. At least seven

hostages were killed along with

several Iraqi troops. Iraqi

officials say the militants

were demanding the release of

Al Qaeda prisoners. A senior

Al Qaeda operative has been

named as a key suspect in the

Yemeni parcel bomb plot. The US says he is he' a 28-year-old

Saudi bomb maker believed to be

based in Yemen. He's also

wanted in connection with the

Christmas Day attempt to blow

up a passenger plane over

Detroit. Washington correspondent Craig McMurtrie

reports. The US president's

now says chief counter-terrorism adviser

designed to blow up cargo

planes. At this point, we I

think would agree with the

British that it looks as though

detonated inflight. One of the they were designed to be

bombs was carried on Qatar Airways passenger jets in the

Middle East, before arriving in

Dubai. The umplt S and several

other countries, including

Britain, Germany and France, has suspended all freight

deliveries from Yemen. We're

not presuming that we have

found all the devices out

there. The original tip-off

came from Saudi intelligence.

The episode has only added to

growing US concerns about the

potency of Al Qaeda in the

Arabian Peninsula. It is a very active operational

franchise of Al Qaeda and so

this I think just underscores

the need for us to work even

more closely with our Yemeni

counterparts and be as aggressive as possible. US

investigators believe the

devices may have been made by

Saudi bombmaker

thought to have built the

failed underwear bomb found

last Christmas. If the opinion

polls are correct, Barack Obama's Democrats are in for a

hiding in this week's mid-term

elections. The polls all point

to a Republican to a Republican landslide. Every member of the House of Representatives and a third of the Senators are up for

re-election. North America

correspondent Michael Brissenden reports from the bellwether State of Florida. For decades Florida

has been one of the fastest-growing States in

America. It's often seen as a

microcosm of the nation and in

this election it's an apt

reflection of the current state

of American politics. This

race is still about one very

simple thing, what kind of

country are we leaving our children children and grandchildren?

Marco Rubio, a Tea

Party-backed Republican, looks set to easily win a three-cornered Senate, proof if any more was needed

needed the current strength of

the grassroots conservative

movement. He's the only one

running that stands up for the principles of smaller

government, lower taxes, doing

away with the health care law that's

that's a disaster. Both

opponents are on the other side Both side Both parties bring out the

big guns here. Democrats are

so determined to stop Rubio that, according to some

reports, Bill clipton was even

enlisted to try to talk the Democratic Senate candidate out

of the race to give the Independent, Charlie Crist, a

chance of winning. If we ever

needed a reminder of what's

going bad in politics in

America, this store see is it The Senate race aside,

Florida is one of the few States that might give

Democrats hope. We have a

Governor's race that's a dead

heat in all the polls and the

Democrat has a clear chance of

wing in a bad year for Democrats The single biggest

issue here, as everywhere, is

the economy, but Florida isn't just another swing state. This

is considered to be the

bellwether of American

politics, and whatever happens

here, this year will be closely

watched by everyone with an eye

to the presidential elections

in 2012. Holding in 2012. Holding the

Governor's office here is

thought to be worth 2 or 3

percentage points to a party

during a presidential race. If

the Democrat does win the

Governor's race, it will be one

of the few bright spots this season for Barack Obama.

Brazil has elected its first

female leader. The ruling party candidate, Dilma

Rousseff, has won a resounding

victory in the presidential

vote. Thousands have poured into the streets to celebrate

the election of the woman who

was hand-picked by the country's president to succeed

him. Ms Rousseff thanked her

supporters and vowed to continue with policies to fight poverty. The

joy I feel for my victory

blends with the feeling of his

departure. I know that a

leader like Lula will never be

far away from his people. Ms

Rousseff is a former leftist

guerilla who was imprisoned guerilla who was imprisoned and tortured during tortured during Brazil's

dictatorship in the 1970s.

She's never held an elected

post, but served as the

president's chief of staff and

energy minister. Lula da Silva

levers office having served the

maximum allowed eight years. His

His popularity cemented Ms Rousseff's victory over her

sent rist rival, Jose

Serra. Here Federal Police have

seized 160kg of heroin, their

biggest drug haul since 2002.

The shipment was found at

Sydney's Port Botany in a container load of doors sent

from Malaysia. Detectives say

that when cut, the heroin would

have had a street value in

dollars. It has the potential

to yield anything over or up to

$410 million, but that's

certainly dependent on how many

times it's cut down to street

level. Street level can range

anywhere between 7% and 11 or

12%. Police allowed the

shipment to be delivered to

warehouse, then arrested three

people they allege people they allege collected

the heroin. A mother and son

from Campsie and a Hong Kong national have national have been

charged. There's been a major

shake-up of the health care

system. From today, patients

getting primary care from nurse

practitioners or mid wives practitioners or mid wives will

receive Medicare rebates. It's

the first time such rebates

have been paid to health

workers other than doctors. As a nurse practitioner, Leanne

Boase has been able to treat

patients for a range of minor illnesses, but now for the

first time patients will be

able to claim Medicare rebates

for her services. It's a significant step and certainly a very important one. The rebates rebates will change from $8 to

almost $50 for longer

consultation s. Nurses say

patients are the winners. They

want that choice. They want to

be able to make the decision whether they see a nurse

practitioner or a GP. For

people who live in areas where

there aren't many GPs, they

just want just want access to health care. Women using eligible mid

wives will also be able to

claim their services back from Medicare for care during

pregnancy, labour and

post-natal care. Today is day

one. We look forward to the

growing number of mid wives and

nurse practitioners who will

make use of these

benefits. Under the changes, nurse practitioners will be

able to prescribe medications

on the pharmaceutical benefits

scheme. It's a real

acknowledgment that nurse

practitioners are providing

safe and effective care. Most doctors support nurse

practitioners and mid wives

working as part of a team, but

some are concerned about

extending the Medicare rebates. Fee for funding through a Medicare

rebate don't promote the very

teamwork that we desperately

need now for the treatment of

chronic diseases. The changes

come into effect from today.

The ACT Attorney-General has

rejected claims that rejected claims that a

legislative loophole could put children at risk from

registered child sex offenders.

The Ombudsman is concerned that

current laws don't prevent the

94 registered offenders in

Canberra from coming into

contact with children. In his

annual report, Ron Brent says

he fears the legislation might

not be achieving its aim of

reducing repeat offending. He

also warned that ACT police

don't have the power to enter

and search premises. There's obviously another four

jurisdictions where that

doesn't occur. So this

highlights the need for

national consistency. Right now States and territories Attorney-General says he'll

move to amend the laws if there's national agreement. It

was a festive mood in Melbourne today as race-goers prepared

for the running of the 150th

Melbourne Cup. Jockeys,

trainers and past winners drew cheers at the annual cup eve

parade. As Guy Stayner

reports, a betting plunge on Maluckyday has backed that

horse into second favourite,

but So You Think remains the

talk of the town. Every year is

is special, but rarely has a

Melbourne Cup had the fanfare

of the 150th. Absolute

beautiful animals It's largely

because So You Think has been

prematurely compared to a

legend. Pretty good. He's won

two Cox Plates after 10 runs.

So he's pretty good. And Phar

Lap is the only horse to win

two Cox Plates and a Melbourne Cup. Cup. Bart will be there, mate,

don't worry about it, he'll be

there. Saintly has long been

considered Cummings' favourite

horse. He takes pride of

place, I suppose Now a new kid

is on the block I don't think

they've brought the So You

Think caps out, but I'll buy

one Shocking has to overcome

barrier 24 Poses a lot of

problems, a long way up to the straight, hopefully we can slot

in behind mid-field

somewhere He's in front of

where he was last year going

into the cup Will that be good

enough to finish ahead of So

You Think? Let's hope

so Descarado is chasing the

Cup's double He'll stay all

day. He's got a massive chance

to win it. 2008 runner up will

have to pass a vet's inspection

in the morning after suffering

a bruised hoof. It's a question of whether the

bruising will come out of the heel in time for tomorrow or not The weekend rain has closed

the centre car park. The track

is rated slow but could be upgraded to dead for the Cup,

regardless of the rating, one horse is on everyone's lips.

So You Think And Luca. I

think So You Think, what do you

think? It's a universal

thought. Still to come on ABC News, Australia's cricketers

get a trouncing in the

Twenty20. Tonight, Four

Corners exposes a multimillion dollar telecommunications scam.

Small businesses have been

stung by finance deals

promising free laptops, plasma TVs and other electrical

equipment. The Australian

competition and consumer commission commission has contacted

Macquarie Bank about its alleged involvement.

alleged involvement. Gold

Coast butician Caroline stilson

was offered a deal she couldn't

refuse, sign up to

service and get two TVs and DVD

player for free. They look at

you straight in the eye and

they lie to you. Ms Stillson

sighed a second contract with

Quick Fund They told me I had

to sign the rental agreement to be able to receive the equipment, but not

equipment, but not to worry

because that actually is paid

by the phone company. But in

the end she was charged nearly

$40,000 for the equipment that

was worth less than 3,000.

Literally hundreds if not

thousands of small businesses

have been caught by these sorts

of arrangements. In the South Australian town of Murray

bridge, 60% of small businesses

signed up with fresh telecom s.

When the company went bust,

many were told to pay for the

equipment, they'd been led to

believe was free. I said,

"Mate, if you think I'll pay you

believe is a scam, you must

have a substance abuse

problem." Four Corners has revealed fresh tell commune was

in business with Macquarie

Bank, which has an equipment

rental arm and despite a personal plea from the chairman of the ACCCC, Macquarie has

sued 300 small businesses that haven't

haven't been able to pay up. I

have to say, we're not

encouraged by the reaction at

this point of time Macquarie

Bank refused Four corners'

request for an interview. The

ACCC is taking action against

28 parties involved in the deals and it's believed there

are many more to come. A short

time ago Macquarie issued a statement saying it has fully

cooperated with the ACCC and

has responded to all its

requests. You can see more of

that story on Four Corners

tonight. That's at 8.30 here

on ABC 1. The Australian arm of Krispy Kreme doughnuts gone into voluntary administration, putting more

than 600 jobs at risk. Krispy

Kreme says its stores are

underperforming and the company

will have to undergo a full

restructure. All 50 outlets

across the country are expected

to continue trading for now.

But the company can't rule out closures down the track. That

would be so sad, I feel like a

sugar hit. They're so bad, but perfect. Fatty, sugary,

designed for obese people.

While Australians are heading

that way, thank God we're not

there yet. In my opinion, good

riddance to bad rubbish Krispy

Kreme won't say if employees

will lose their jobs. To

finance now, new inflation data

has put a rate rise back on the

agenda, most analysts don't

think it will happen tomorrow.

Today the local share market

rose in line with strong gains on

on the Asian markets. Here's

Alan Kohler. This This is the unofficial gauge. unofficial monthly inflation gauge. The quarterly data

showed that inflation is under

control, but these more up to

date numbers suggest inflation

may have bottomed, in which case, although rates will stay where they are tomorrow, it

won't be long before they go

up. The performance of manufacturing index was up a

bit, but still under 50, means manufacturing is

contracting. The ABS came out

with quarterly house price data

today. Sydney prices fell,

Melbourne rose, Brisbane and

Adelaide fell and Perth went up

for the quarter. On an annual

basis, it has been a huge year

for Melbourne. Over the page,

we have Hobart down, Darwin up,

Canberra down. National

average up 0.1%. Almost meaningless,

meaningless, because there's no

such thing as a national house,

all houses are somewhere, not

everywhere. Unlike companies,

which are mostly everywhere.

The national All Ords index

rose 0.8% today and rises of

about that size in except in Japan, where the

market fell. Ten Network has

yielded to the inevitable and

invited James Packer and lack

lan Murdoch on to the board after

after Packer bought 18%. Owe

to be a fly on the wall at

those board meetings. Wall

Street was flat on Friday. Not enough to get unemployment

down, but not a recession

either. The surprising thing

was a strong rise in consumer

spending. Much stronger than

incomes, which actually fell

and savings fell, which means

only one thing, they're

spending their savings again,

or what's left of the equity in

their homes. As we know, that

can't go on. So the US dollar

fell and the Australian dollar

rose from 97.5 on Friday night

to 98.8 tonight. If rates go

up tomorrow, we'll see the parity

parity chorus tomorrow night,

or so you think. That's finance. The Melbourne Cup will have a billing tomorrow have a challenger for top

minutes before the race, the

Reserve Bank will announce

whether it's putting whether it's putting up

interest rates. The stakes couldn't be higher for hundreds

of thousands of households already battling financial

stress. A survey by the Wesley mission in New South Wales says

more and more families are

going without, as they struggle

to make ends meet. Happy sphass

despite hard times. Two

marriage break-ups and a failed

business venture left Bronwyn Rushton on

Rushton on her own looking

after five children. 6-year-old jakob has Kabuki Syndrome and needs constant

care. I can't leave him for

more than 25 hours a week,

which puts me back in limiting

my income capacity . Life now

means making sacrifices to give her children the best she can. I've had the phone

disconnected quite a few times

before. I've just let it go. As soon as I've had the money

to pick it back up, I pick it

back up Bronwyn Rushton isn't lone. The Wesley mission surveyed more than 600

households in New South Wales

for its making ends meet

report, it found a third of the State's households are feelings

the pain, either skipping

meals, selling belongings to

get by or being unable to pay

important bills like electricity.

electricity. Whilst 7 out of 10 people in New South Wales expect to have to have

sacrifices to meet future

bills. The mission and

Government are urging people to get help early. Most people

turn to a counsellor when it's

too late. In a sense, it's no

different going along to a

financial counsellor than going along to

along to see your GP when

you've identified a health problem. With power prices on

the rise, there's little hope

on the horizon for many. My

son 's on a breathing machine

at night that I have to run for

him to be able to breathe to

survive. That draws a lot of

electricity. There's still a deliver more pain tomorrow.

Every time interest rates rise

up you know that the cost of groceries and everything else

seems to go up, but the cost of

the wages don't go up. The

Wesley Mission says it's all

making life harder in the lead-up to Christmas. Australia

has made a disappointing start

to its summer of cricket, being comprehenceively outplayed comprehenceively outplayed by

Sri Lanka in last night's

Twenty20 international

national. The home team

struggled with bat and ball as the Sri Lankans raced to a

7-wicket win with more than 3

overs to spare. A parting shot

summed up Sri Lanka's

dominance. What a way to

finish it. We have no excuses.

Sri Lanka bowled really well

and, like I say, we got

outplayed Earlier the captain tried

tried to convince critics he's

not out of place in shortened form of the game.

Clarke couldn't clear the hopeful hands of Dilhara

Fernando, though. His wicket

triggered a middle order collapse, which left the

Australian struggling at 5/43.

Brad Haddin launched a

fightback. That's a good shot

that's going way over the

top. With the assistance of Steve Smith, added respectabilitiy to the score.

The 133 looked like a modest

total, especially after an

early Sri Lankan anslaught. Peter Siddle broke through in

his return to international

cricket. But the tourists were

always in control. Australia's

form hardly has the touring

English team running scared.

The Ashes holders are itching

to be let off the leash.

Different group from last

time, different set-up, we're coming here confident,

we're under no illusions it

will be a tough challenge, but

something we're really looking

forward to England starts its

campaign with a tour game

against Western Australia on

Friday. Kim Clijsters has kept

off her first full year by

claiming the season ending championships. The reigning US

Open champion overpowered Caroline Wozniacki in the

final. It was Clijsters' first

appearance at the elite eight-woman event in seven

years. He hasn't won a major,

but Lee Westwood's achieved

something no other golfer has

in five years. The Englishman

has finally ended Tiger Woods'

time as the world number 1.

Martin Kaymer's failure to

finish in the top 2 confirmed

Lee Westwood's ascension. His

reign could ko be a short one,

though. Phil Mickelson have

the chance to overtake him next

week. Casey Stoner had a short

but spectacular ride at the Portuguese Grand Prix. World

champion Jorge Lorenzo got the

better of Valentino Rossi to

post his third straight win.

And the third season of the W

League kicks off this weekend

with Sydney FC considered

favourite to defend its title. Australia's Rugby League

coach has told the Kangaroos to

lift their game, despite

another comfortable win in the

Four Nations tournament much the Kangaroos booked a spot in

the final with a 34-14 point

win over England last night.

26 of Australia's points came

in the first half. He scores

his 15th try. The win guarantees an Australia-New

Zealand final. Before then,

the two sides play a dead

rubber in Auckland on Saturday.

Now with a look at today's weather, here's Mark Carmody.

Thanks, Siobhan, good evening.

Our new's room's Melbourne Cup

sweep has been done and dusted.

The question was can I have a

mud runner as it's going to be

wet for the race as showers are

forecast. Let's hope they hold

off. But today in Canberra it

was cloudy with was cloudy with rain starting

to fall late this afternoon.

We had a maximum of 20, after a

minimum of 7. Currently it's

still raining. So our

racecourse will be wet under

foot tomorrow and the temperature is sitting on 11

degrees. Around our region today, it was mostly cloudy

everywhere, with light showers

falling on the coast, while

Gundaroo and Yass got a good

fall late this afternoon. The overcast conditions kept the

temperatures down, with Bega

and Cooma only 15. Nationally

today, we've seen it was sunny

but cool for the horse parade

in Melbourne. Sydney was

overcast after a warmish night

and it rained there this afternoon. It

Brisbane and Perth had a hot,

dry, sunny day, topping at 30.

There's thick cloud along the

Queensland coast, extending

down through New South Wales.

This cloud is associated with a

developing low and it's

generating patchy showers with

the odd storm. The low will drift further south tomorrow,

then move out into the Tasman

and it has the potential to

drop some quite heavy rain.

The high is moving this way

through the bight. Around

Australia tomorrow, showers for

Flemington, 18, windy and wet

in Sydney, Brisbane will get

early showers, but they should

clear and going for a top of

28. Perth will have an ha

wiean shirt day, 33.

Regionally tomorrow, there will

be early showers along the

coast, which should clear

during the afternoon. The

winds will be south-westerly

and freshen to an average of

around 30km per hour. It will

be wet but coolish on the

Tablelands, with Yass expect

ing 18, Cooma 16.

going to the track tomorrow, it

will be cloudy and there's a

60% chance of scattered

showers, and they're expected

until the late afternoon.

Girls, you'll need to securely

fasten your fascinators as it's

going to be blowy, southerlies

averaging 30km per hour.

Temperature range cooler than

today, 9 to only 17. While

you're there, keep an eye out

for the riding for the disabled

volunteers, they'll be carrying

buckets. Sunrise tomorrow just

before 6, setting at 7.35.

Then cloudy but dry on

Wednesday, 18, cloudy but cold

on Thursday, only 16. Siobhan,

I've worn an azalea before, so

the precedence has been set.

That's the name of the horse I

got in the sweep. Go! Thanks,

Mark. That's ABC News. Stay

with us for the '7.30 Report'. You can keep up with

news at ABC online and ABC News

24. Enjoy your evening.

Goodnight. Closed Captions by CSI Tonight on the 7.30 Report -

Cups King Bart Cummings climbs

out of his sick bed for another

crack at the nation's biggest

race. I will be there tomorrow. And looking forward to a fine

day. It's just beautiful to

watch. So You Think wins by

three on the line. And this is

the champion horse that's hot

favourite to make it lucky 13

for the champion trainer, So

You Think. He's ready to go two

mile or further, and that's

what I bought him for, that's what we aim to do tomorrow. This Program Is Captioned

Live.

Welcome to the program. We

will be talking about Bart

Cummings in just a moment. The

detection of two powerful bombs

concealed in air cargo destined for the United States has