Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
Lateline -

View in ParlViewView other Segments

(generated from captions) Tonight, diminished responsibility. Do you accept

that ultimately you are

responsible for this whole

responsible. Who is

responsible? The people that I

trusted to run it and then

maybe the people they trusted. As Rupert Murdoch

tries to distance himself from phone hacking, the Home Affairs Committee find that news executives blocked a police investigation into it. There

have been serious attempts to thwart this investigation News International. This thwart this investigation by

Program is Captioned Live Good evening, welcome to

'Lateline', I'm Tony Jones. Rupert and James Murdoch got mixed reviews for their inconclusive and often

unforthcoming answers during cross-examination by British

MPs overnight. They appear to

their two-hour inquisition, vim pressed the markets.

News Corporation stock rose

almost 6%. One US share

analyst claimed this was

because no smoking gun was

found to link the Murdochs

directly to a criminal

conspiracy. Are they out of

the woods now with investors,

are they safe in their US

bastion and is Rupert Murdoch

secure at the top of his

empire? We'll cross shortly to

New York to speak to media

analyst and former 'Rolling

Stone' publisher Porter Bibb.

That's coming up. First our

other headlines.

an inquest hears that a prison van driver didn't think it was

necessary to check on the

inmates he transported. The UN declares a famine

Somalia as the country sofrs

its worst drought in 50 years.

And gas fires, coalition senators get hot under the collar over compensating

farmers for coal seam gas

exploration on their

properties. The British Prime in the House of Commons as he's Minister is under fire tonight

dragged further into the phone hacking scandal. He has been

accused of a catastrophic error of judgment in 'News of the World' O'Donoghue of judgment in employs a former

Fiery scenes in Parliament come editor now been arrested.

a day after the Murdochs

fronted an inquiry and

apologised but refused to take

responsibility. From London, Lisa Millar reports. David

Cameron rushed back to London

cutting short his trip to

Africa in the face of the growing scandal. he was on his feet in the House of Commons defending his

and believe you actions. You live and learn

and believe you me, I have

dragged further into this learnt. David Cameron is being

scandal because of his decision

to employ former 'News of the

World' editor Andy Coulson. He

stepped down in January and was

arrested over allegations of phone hacking. I have an old fashioned view about innocent

turns out I've been lied to,

that would be a moment for a

profound apology. In that

event, I can tell you I will

not fall short. It's been

alleged that Neil Wallis, another ex 'News of the World' employee who was also arrested,

advised Cameron's cons sertiff

party. It has been drawn to

our attention that he may have provided Andy Coulson with some

informal advice on a voluntary basis before the e. To the

best of my knowledge I did best of my knowledge I did not know anything about this until

Sunday night. Adding the

pressure, a new report from the Home Affairs Committee which has damned News International

and the police, declaring the investigation into phone

hacking a catalogue of

failures. It describes one of the investigators as

unprofessional and inappropriate. And deplorable

that that same detective took a

months job with the newspaper two

International deliberately months later. News

tried to thwart a criminal

investigation. The report is

not convinced hacking still

isn't taking place. If they had taken appropriate and proper

action, if there had been a

thorough investigation, then

some of the issues that have

come to light in the last few

weeks would have been dealt

with years ago. Do you have

anything you want to say to the victims of phone hacking? victims of

Rupert and James Murdoch had

arrived at Westminster transparent. They certainly

came prepared with apologies.

First of all I would like to

say as well just how sorry I am

and how sorry we are to

particularly the victims of

and to illegal voicemail interceptions

and to their families. It is

a matter of great regret of

mine, my father's, and everyone

at News Corporation and these

are standards, these actions do not live up to that our company aspires to. What happened at the 'News

of the World' was wrong. We

and I have apologised and unreservedly for that and and I have apologised profusely

my father has as well. We

felt ashamed of what had

to bring it to a close. People happened and thought we ought

lied to you and lied to their

readers. We had broken our

trust with our readers. They

had broken with me. The

broken our trust with our important point was we had

readers. They stumbled pushed on legal payments to

Glenn Mulcaire, the private investigator convicted of

hacking phones. News International is still paying

the bill. Got time for your

organisation to say do your

worst. You behaved

disgracefully. We're not going

to pay any more of your

I don't know the status of what

we're doing or indeed what his

contract was, whether it still has any force. There are still

major questions about Rebekah

Brooks's role while editor of

News International. I don't the paper and then as chief of

know any one in their right

mind who would authorise, know,

sanction, approve of anyone

listening to the voice mails of circumstances. I just don't Milly Dowler

know anyone who would think it

was a right and proper thing to

do. The media, government and

police have all been swept up

in this crisis and

sign of it ending. The

police investigation has been sign of it ending. The new

given extra impetus. The judicial inquiry will call

witnesses under oath, and the

British Parliament is vowing to

use all of its powers power to

get to the bottom of this scandal. Lisa Millar, Prime Minister's increased the 'Lateline'. The

pressure on Rupert Murdoch's

media operations here saying

they need to answer hard

questions. One of her

backbenchers has gone even

further suggesting that there's

a cosy relationship between

police and some journalists.

Political correspondent Tom

Iggulden has more from

Canberra. Tilting at windmills.

The attack on Rupert Murdoch's power in Britain is emboldening

Julia Gillard to take on his

his news empire on home turf. I

think that does mean that

Australians here look at News Limited some hard questions that they

want answered. News Limited's

boss released a statement saying those comments were unjustified and unjustified and regrettable, adding, there's absolutely no

connection between events in

the UK and our business in

Australia. The Prime Minister

isn't saying which questions in particular shaed like News

Limited to answer. When we see a big thing happen overseas it

cause us us to right next on

circumstances in our own

nation. I'm saying no more less than that. One in her government is saying more than

that. I suspect that there are cosy relationships which have been entered

various journalists and various

media companies and the

police. Mr Thompson didn't directly point to News Limited except to draw parallels with

the allegations against News

International in London. Police

Commissioners would do well to

look at what has gone on in the

unit keepingdom and to say to

their police forces we don't want that. want that. We want a

transparent relationship. We

and the an arms length formal

proper relationship with the media. The allegations of police bribe bring and phone hacking might seem a long way

from the carbon tax, but they feed into the Government's complaints about News complaints about News Limited's coverage of hits plans. The

daily Dell Telegraph is interested in distorting the debate. 'The Daily Telegraph'

in Sydney is constantly

opposing a price on carbon. It

doesn't care how it does

it. They bias in favour of what they're calling Tony Abbott's fear campaign. Today he campaign. Today he was speaking to workers in the

power generation industry in Victoria's Latrobe Valley. The Latrobe Valley is under threat

from this carbon tax. The

problem with this carbon tax is

that it is going to close down over time an enormous amount of

power generating capacity of

this valley. The Government's

been running a (1) 200-0000 ad campaign to counter Mr Abbott's

claims. Tomorrow comes the

retort. Lateline's obtained a

full page ad to be run in

tomorrow's paper calling the Government's

Government's tax excessive and

paid for by a coalition of

coal, mining, retail and

manufacturing lobby groups.

Today, though, it was the

opposition leader feeling a

little pain with a dawn dip in

Port Phillip Bay. What's the water like? Freezing. This

all just goes to show Mr Abbott

keep his negative campaign up because he's all about the

politics, not about the

nation's future. Kevin Rudd was championing quite another

policy today. Donate Life campaign your Honour the

country is really important.

We still have a couple of

thousands people on organ transplant lists around Australia. The Foreign Minister

was once one himself when he

got a new heart aorta 18 years

ago of It is wearing out. The

docs have said it is time for a

new one. So being the owe beat

yent soul I am I've decided to take their advice. There will

be an operation in the next few

weeks to fix out that worn out

aorta and a couple of aorta and a couple of months recovery time after that. The Foreign Minister says he's

looking forward to returning to

work which is just as well for the government. A by-election

in his Brisbane seat could cost

Julia Gillard the long. The

Defence Minister Smith submit

has announced an inquiry into

the Navy's Collins Class

submarines. Mr Smith has become frustrated at delays and cost overruns of defence

projects and hopes the inquiry

will overcome the problems of availability of the fleet. The

ministers says at times only

one of the six submarines has been available

The review will be conducted by

a British expert, John Coles.

The submarines have cost more

than $10 billion to construct

and maintain. They're

scheduled to be in service

until 2025. The driver of a

NSW prison van in which an

inmate died has told a coronial inquest prison van like he'd never

heard before, but he didn't consider pulling over to find consider pulling over to find

out what was going on. Clive Bateman gave evidence today at the coronial inquest into Mark

Holcroft's death in 2007. He

said he assumed the banking and

noise coming out of the van was

because the inmates were

getting board. The other driver of the prison van Peter

Sheppard says he was monitoring vision coming from cameras in

the back of vap and said

everyone seemed to be sitting

up normally. Steve Cannane reports reports from Wagga Wagga. 59-year-old Mark

Holcroft died of a suspected

heart attack in the back of a

prison van in August 2009. A low security prisoner, he was

being transported on a 4.5 hour

journey from Bathurst Gaol to a

prison farm near Tumbarumba.

Last year four inmates who

witnessed his death spoke to 'Lateline' about how they tried

to alert the drivers that Mark

Holcroft was having a heart

attack. These interviews were

tendered as evidence at the inquest. inquest. We were all banking

and screaming trying to let the

drivers know, pull over, you know, the guys something wrong with him. Stop the van. Come

on. We were banking all the

way from 40, 50 minutes all the

way to Mannus, every town we

stopped at we thought someone

would be able to hear us. We

were yelling, screaming, men

were crying. It was just a

terrible situation to be in. Today the inquest heard for

the first time from the drivers

of that prison van. Clive

Bateman told the court that he

heard yelling in the back of

the van like the van like he'd never heard

before. When asked yes didn't

pull the van over Mr Bateman replied:

Mr Bateman told the court he thought the noise was related

to boredom. While Clive

Bateman was driving help was in

the passenger seat monitoring

inmates via cameras. Mr Shepherd told the court there

was nothing obvious that was

shows up there was any trouble. When asked why his conflicted with the inmates who

described a seen of chaos he

replied. I just saw something

different to what they

saw. Last year, Afif Khowly

told 'Lateline' he'd trying signalling to the cameras. I remember I was putting signing,

putting hand signs because the

truck had four cameras, one in

each corner and just pointing

out when that person is laying

down. The court heard today

only one camera in compartment was working. Afif

Khowly might have been motioning to

motioning to a camera that

didn't work. The inquest also

heard the PA system that allows

the drivers to communicate with the inmates was not

operational. There was a

facility for the drivers of the

van to talk to the people in

the back of the van, but that

wasn't working. That wasn't

functional. There's no

communication provided for the

prisoners in the back of the

van to talk to the front of the

van. Next week, the inquest moves to Sydney and begins hearing evidence about the medical treatment Mark

Holcroft received inside the

prison system in the days

leading up to his death. Cannane, 'Lateline'.

Back tour top story, the phone hacking scandal in the

United Kingdom. Joining us to

discuss the implications of the

affair is US media analyst with

media tech capital Porter Bibb. correspondent for Newsweek. He

was the first publisher of

'Rolling Stone' and he has written several books including

the biography of He joins us live from New York. It's great to be here.

Thank you. On the evidence from

Wall Street where News

Corporation's shares rallied 6%, the Murdochs actually had a

good day in the British

Parliament. Is that how you

see it? Well, you have to

realise that the entire stockmarket in the US went up

higher than it had in the last

eight weeks yesterday and News

Corp was dragged along with it. The fact of life is the last two-and-a-half weeks, News Corp has lost (800)

000-0000 US in terms of market

value. They gained back about

$1.5 billion of that 8 billion but

but they're still way, way

down. Probably most analysts

are saying here that the worst

is yet to come. I presume many of us you watch the interrogation of the two

Murdochs, father and son. How

good a job do you think the

British parliamentarians did British parliamentarians did in their cross

cross-examination. You have to

realise, first of all, that the Murdochs were not and Rebekah Brooks in her portion of the

inquisition were not under oath, so it was really an

anticlimax in terms of what the

world and media might

expecting. The Murdochs were

exceptionally well schooled by

their PR representatives and

their legal advisers and essentially you saw about three

hours worth of stone walling.

Rupert Murdoch called the day

the humblest day of his life.

I think that he actually should

say I am now the centre of the

greatest story of my life. It

is the biggest tabloid story in

papers. It keeps unfolding even tonight a second tonight a second parliamentary committee has concluded Murdoch executives deliberately tabloid story in the last 10 years to hit the papers. It keeps unfolding even tonight a second parliamentary committee has concluded Murdoch executives deliberately thwarted a police investigation

into the phone hacking. Absolutely. When you say US analysts believe there's

more to come, what are you

talking about? What do you

think is to come? What they touched

touched on primarily in the parliamentary hearing yesterday was basically social and

political issues. The phone

hacking is one thing that...

People overlook the fact that phone hacking

phone hacking and wire tapping

is illegal. It is illegal in

United States and it is Australia, it is illegal in the

definitely illegal in the UK.

The real problem is not just

the phone hacking. It is the

payments to the police. That

is the a very, very serious

crime and it spread across the Atlantic because we have in Corrupt Practices Act which US something called the Foreign

forbids any US corporate member

paying a representative of a foreign government for business

gain illegally and that's very

not just the reporters who were serious. It's going to cause

actually extraditing the bribes

to the police, but the

management of News

News Corp in the United States International in the UK and

to be brought into court and

the questioning when they're sitting there in front of

judicial reviews and US and courts is not going to be

nearly so tame as it was in

Parliament yesterday. There

under the Foreign Corrupt seemed to be some doubt that

Practices Act they could be

looked at there, but there

whether that investigation will seemed to be some doubt as to

go ahead. Do you believe it

will? It is being pressed in

Congress. Yesterday, two US Congress. Yesterday, two

Congress people asked the FBI

to broaden the investigation

and bring in the Justice

Department. I don't think that this tsunami of problems that

has overwhelmed News Corp is

going to go away any time soon.

Then you have to realise

there's a whole second tier of

litigation class action suits.

There's already one major class

action suit being brought

against News Corp and

Rupert Murdoch going all the

way down to Les Hinton and

James and including the board

of directors. The independent

directors of the News Corp have

been reading their directors

insurance policies very

carefully because they're

vulnerable right now. They've

been not just silent but invisible in that crisis. That

action has been taken by

institutional investors. Can

you tell us more how that might

unfold? It initiated with News Corp's acquisition of Elizabeth Corp's

Murdoch's production company,

shine, for nearly $700 million

US and the investors are suing saying there was not

appropriate due Tillegra due

diligence and how could anybody

pay that kind of price for a production company that was

worth probably a quarter of

that and not go to that and not go to the board

with the proposition or allow

investors to have any voice

until the deal was done and then elevate Elizabeth back to

the News Corp board. That class action suit that the institutional investors have

waged against News Corp has now

been expanded to include the

foreign corrupt practices

violations that are alleged against News Corp. These

investigations, as corporate investigations are want to do,

could actually go for years.

There are a few critical things

happening in the headquarters

moment. For example, Rupert of News Corporation at the

Murdoch is trying to buy time Murdoch is trying

right now so that he actually

buy-back a large block of his

own company's shares and keep himself in a controlling

position. That's correct. How

is that likely to Pan out? He

announced last week a $50

would billion buy-back of shares that

That of course will be greeted

very happily by investors who

were worried most analysts are calling an investment in News Corp today dead money because

of the uncertainty of all of

this litigation, but the

buy-back is clearly going to

have two very important

effects. One, it is going to

give investors who were in News

Corp now a chance to get out at

secondly, it's a reasonable price, and

increase the actual de facto

ownership of the Murdoch family

because there will be fewer

shares out in the Rupert Murdoch, do you believe, likely

likely now, particularly as the

British MPs found no smoking

gun, as one American share

analyst put it, found nothing

to link them to a criminal conspiracy, is he likely to

retain his control of News

Corporation? Well, from an

ownership point of view there's

no question that Murdoch and

his family interests will

retain control, but I think

that this criminal litigation,

the prospect of people being indicted and probably jailed,

can go as high as Les Hinton

and maybe even to James Murdoch. I think that Rupert

Murdoch will probably be able

to dodge the bullet, but the

he from an investor point of

view and considering his age at

80 years, should he both CEO and chairman. I

suspect he'll either step up or step aside. I don't think

there's a snow ball's chance of

hell that James is going to

rise as Rupert Murdoch would

want him to as CEO of News

Corp. I think several other

senior managers of News

International and News Corp are very likely to face serious very

legal problems and possibly

even time in jail. With the

clouds hanging over Murdoch James Murdoch's head think that analysis is probably

right, except it is not shared

right across spectrum of

analysts in New York. The same

analyst who was talking about

the shares jumping in the New

York Times also said the market

was watching the heir

presumptive James Murdoch in

of News Corporation were the British Parliament

ticking up literally as he spoke. As I said, that was

because of a very significant

lift in the overall stockmarket yesterday and

yesterday and also you must

realise there are not very many

large shareholders in News

Corp. There are probably two dozen institutional investors,

none of whom owns more than 2%

of the total equity and then we have prince Prince

Talal Abdul-aziz who has 12%.

He's right now down about half

a billion dollars in his

He was the one who finally last investment value in News Corp.

week, last Friday, pressed

Rupert Murdoch to make sure that Rebekah Brooks's resignation was accepted.

Rupert did not want to do that.

It was Prince Talal Abdul-aziz who who persuaded him to do that and Prince Talal Abdul-aziz

may not stay a a shareholder.

I wouldn't be surprised if he

didn't take the money and run didn't take the money

when the share buy-back

proposal begins on August

5. What do you think will

happen to the corporation? We

have the British judicial inquiry about to begin. Of

course, that's not going to report

report for another 12 months.

It is a much more rigorous

inquiry because people can under oath. We're not going to

get a result for a long time.

Do you see a slow bleed for the company? Here's the anomaly

that you have to appreciate.

News Corp, most of its assets,

its television and its entertainment assets, 20th

Century Fox, Fox News, the television and satellite

systems, are phenomenally

successful. They're very profitable, they're they're very significantly

undervalued in today's market.

We call it the Murdoch discount

because of nepotism and because

of Rupert's lack of

transparency in the way he manages the company. The

assets are terrific and News

Corp as an investment if it

were not overshadowed by all of

this potential turmoil and litigation would be the most undervalued growth company in

the media sector probably

anywhere in the world. News Corp Corp is going to do fine. I

think that in the end the

pressures to divest the

newspapers in the UK are going to be too much to resist and from a business point of from a business point of view,

it makes a lot of sense because

they're a declining sector in terms of the overall growth

strategy of News Corp. They

are pressing the issue in the

UK of media domination by News Corp which is a social issue as much as a legal

issue, and I think that if the

worst came to the worst and the

FCC here in the US took away

the licences of the fox, the

two dozen Fox local television

stations that would not be a

disaster either, because they

don't have the growth potential

that the cable networks and the

satellite business and the

entertainment business does.

All in all, it has got to be a

cleaned house with the Murdoch interests being reduced or

eliminated, new management,

lot of people are talking about Chase Carey, the chief

operating officer rising up to

be CEO. That would be greeted with great enthusiasm by

investors, and a meaner, lienor, cleaner News Corp would

be a terrific investment for anybody, but this Murdoch's swansong. It's

really turned into a kind of Shakespearian tragedy with

Rupert looking an awful like

King Lear yesterday at parliamentary hearings. He's

too old to continue to run the

company. James is too young

and too tainted. That's all

going to shake out, but you're

right, it is going to take a

long time. Remember, there are

almost 5,000 people whose

phones were hacked including two former prime ministers of the UK, the class action suits

are going to go on for years

against the Murdochs and against News Corp before this

is all settled. Let's look at

some of the other looming problems that could hurt his

position in the United States. There's a story in the New York

Times business section suggesting that the News

Corporation culture, the

culture of buying its way out

of trouble, is alive and well

in the United States and it is

impacting and has impacted

heavily on the US operations.

What you can tell us about story? You're absolutely

right. This is the culture.

Win at any cost that Rupert Murdoch has fostered and

fomented for 35 years. He's

famous here for a statement

that he made a long while ago

to his management. He said

bury your mistakes. Just count

the wins. In the US, he very interesting business. It's highly profitable. It

consists of newspaper inserts,

the adverts that go inside the

newspapers whether they're News

Corp newspapers or anybody

else's, that feature special

bargains at the supermarket and Wal-Mart and other retail

chains, that's a hugely profitable

profitable business, it is

cheaper to put those inserts

into the paper than to mail

them out through the US Postal Service. Rupert has fomented a

culture where he's crushed the

competition in that business to

the point where News Corp

dominates it. One example that

was in the New York Times

article that you mentioned, he

didn't phone hack, but News

Corp hacked into the computer

codes are computers and got codes and business strategies

that cost a minor competitor

who was only doing about a million dollars turnover year, cost them major contracts with major supermarket chains

for a newspaper insert s. News

Corp not only settled with a

large cash payment, but then

bought the company to keep them quiet from calling out in court

what News Corp did with their

computer hacking. They paid

$29 million for a company that

was doing $1 million in

turnover. Another example that

was a little bit egregious, the

company that was News Corp's

main competitor in this field sued News Corp for illegal infringing infringing on contractual

arrangements that the company

had with major users of

newspaper inserts and News Corp settled and settled and required confidentiality so the company couldn't talk about that situation, situation, but they paid over

$500 million to this company to

keep them quiet. These are just just outrageous, egregious

examples of the kind of win at

any cost culture that Rupert Murdoch fomented. It is

preposterous yesterday

listening to him saying he had

no idea that payments were being made to Mr Mulcaire,

convicted phone hacker for

'News of the World', and some

of the other people, and there

were literally millions and

millions of dollars paid out millions of dollars paid out to

people who complained about being hacked and it is inconceivable that Rupert

Murdoch, one of the most hands-on managers in any

business, had no idea that this

was going on. Finally, people's

ears would have gone up as you mentioned hacking in the United

States, computer but still evidently allegations of hacking presumably that's

illegal. I imagine it is. I

don't know. It is indeed. If

it is, it likely that the US investigators who are now very

focused on these kind of

issues, are going to look again at what happened there? They

are. To be perfectly clear, there's absolutely no evidence of phone of phone hacking, particularly

of 9/11 victims and their

families. That was an

allegation made unsourced by

the daily mirror in the UK, but

it caused an outrage here and

that was what there engendered

the FBI investigation. Several members of Congress demanded

that the FBI start looking into

it. If that turns out to be

true, which is possible, but

there's absolutely no proof that it is at this point, then

News Corp is in really serious problems legally because the FCC is going to come down

heavily on them, the Justice Department is going to come down on them and Rupert Murdoch

will be in very serious trouble. Porter Bibb, we'll have to leave you there. We

thank you very much to join us

early morning your time in New York. Thanks for being there. It is a there. It is a pleasure. Thank you. Coalition senators have clashed with gas clashed with gas industry representatives over

compensation for farmers

affected by coal seam gas hearings in southern Queensland, the inquiry headed

to Brisbane where the petroleum

lobby defended the industry's record. Farmers say they're

powerless in the war being

waged against coal seam gas. Yes, we are getting worried

we're losing the battle. That

water is largely being fought on Queensland's Western opponents of the gas expansion there say the landscape speaks for itself. The whole area

looks like a pin cushion with

coal seam gas wells coal seam gas wells pipelines,

service roads, holding ponds,

the whole thing just is a mess. National Senator Barnaby

Joyce has a personal stake in

the inquiry. He's had notice

he's getting a gas well on his

property. I'll be doing more

than locking the gate. I've

got a little job in Canberra

that helps me. He's the fight with gas industry representatives over compensation for farmers. It

depends on whether you're

talking to a cotton farmer or a grazier. I'm talking to you. What's the average. You

must know. Typically, per

well head it is around about

$5,000. That means you're

giving them about $15 to (1)

500-0000 and you're collecting

8.5 billion. That's not a bad

deal. As the hearing continued tempers possibly say you've been of

assistance to the agricultural

industry in drought proofing Queensland. Late holders say

they're not expecting help from the Queensland Government. We

worry on the broad economic

bout the Treasurer is more

interested in the coal seam gas

industry than he is in

agricultural land. Both the

regulator of the industry and

the approver of the industry

and the beneficiary of the

royalties. A triple uncertain future, they say. United

say. United Nations has

declared a famine in two areas

of Southern Somalia as the country sofrs its worst drought

in more than half a century.

The UN says the humanitarian

situation had deteriorated

rapidly affected more than 10 million people in areas

controlled by insurgents

inspired by Al Qaeda. Aid

agencies say they need safety

guarantees from armed groups to

allow staff to reach those in

need. United Nations millions of dollars in aid will be needed to avert a

catastrophe. 300 million dollars is needed to the famine in the next two

months. This is a rough

estimate and the number will

probably increase as the number

of people in need rises. The

Red Cross says that one in 10

children fleeing to camps children fleeing to camps in

Kenya and Ethiopia is at risk of starving to death. To the

weather, showers Melbourne and Hobart, a

possible shower in Canberra,

the risk of a thunderstorm in

Perth, fine and windy in

Brisbane, sunny in

That's all from us. If you'd

like to look back at tonight's

be view with Porter Bibb or review any of Lateline's

stories or transcript you can

visit our website or advice out

us on Twitter or FaceBook.

We'll see you tomorrow night. Closed Captions by CSI This Program is Captioned


Good evening, welcome to

'Lateline Business'. Fullerton. Coming up tonight's program, with some News Corp investors openly calling for

change at the top, we look

close up at why the Murdoch

family's grip on the company

could prove impossible to

shake. Global markets storm

ahead but beware another

European crisis sum miss looms. European are very tough and politicians are very slow to address the problems. And

from a man made Isurava disaster to one from Mother

Nature where live to Perth to

discuss the future of uranium

post Fukushima. To the

markets. Debts and deficits were ignored and corporate earnings

Rupert Murdoch's experience

before a British parliamentary

committee was partly aimed at reassuring News Corp's

investors that he is firmly at

the helm of the company and

steering the way steering the way through this

crisis. I feel that people I

trusted, I'm not saying who, I

don't know at what level, have

let me down and I think they behaved disgracefully and

detrade the company and me and

it is for them to pay. I think

that, frankly, I'm the best

person to clean this up. But

while the shares have rallied,

some institutional investors

are openly calling for him to

move aside. A number want company's chief operating officer Chase Carey to take

over the cop job. Some suggest

he could be a stop gap while somebody from a background rather than

newspapers found. They call it in one newspaper report a corruption of corporate

governance. But wanting Rupert Murdoch to go and actually

getting him out the door are

two very different things. He

made it very clear to his British interrogators last

night he resigning which means he would

have to be pushed. Under the

current share structure at News

Corporation that would be a

very difficult process. Andrew Robertson. News

Corporation without any

Murdochs, unthinkable just a

fortnight ago, now it's a real possibility. Rupert Murdoch's

Halo hasn't just slipped, it's

crashed to the floor. Minority shareholders are questioning their investment in the

company. Just look at the damage done to the News Corp

share price. 15% so far

month to Monday's low point. Look further back. In 2001,

they were $38, 2007, $33. Why

the rout in a regular dose of Rupert Murdoch inspired destruction of shareholder

value. News Corp paid $580 million

million for MySpace. Last

month it was sold to pop star

Justin Timberlake for $35

million. News Corp's deal to

get media rival John Malone its share register cost it $3

billion and a lucrative stake

in DirectTV. It paid $6

billion for do you Jones owners of the Wall Street Journal just

a year later the book value was halved. Add to that News

Corp's dividend 15% or 15 cents

a share. Investors feeling

ripped off is one thing,

getting rid of Rupert Murdoch

is another. News Corp has two

classes of shares. A and B.

Only the B shares rights. Rupert Murdoch owns 40

of 40% of them. The next

biggest is Saudi Arabian prince

Prince Talal Abdul-aziz with

7%. The rest are just tiny

fractions impossible to bring

together to vote out Rupert

Murdoch. But James Murdoch,

son and heir, is less secure.

As News Corp's CEO in Europe,

his brief included news international, the newspaper

division the source of all this

grief. He's also chairman of BSkyB via News Corp's

controlling minority stake.

Like his father at News Corp, it is difficult to turf him

out. The next biggest

shareholder has less than 5%. But with Rebekah Brooks gone

and the scandal still raging,

James Murdoch's scalp is next

in line. The long arm of the

law may do what shareholders

can't. As for the News Corp's

succession, Lachlan Murdoch

running the Ten Network doesn't

want the want the top job. That leaves

Elizabeth on the News Corp

board. For James Murdoch

falling foul of the law may be

the spark that news corporation shareholders

to say no more Murdochs. The

phone hacking scandal has

spilled over to the Murdoch

paperser here with Julia Gillard saying news limited

needs to answer hard questions

about its conduct in Australia. News Limited chairman and Chief Executive John Hartigan

described the comments as

unjustified and regrettable. While shadow Communications he takes Rupert Murdoch at his

word and doesn't see the need

for an inquiry here. There's

a whole political debate raging

there, but there's no evidence

of which I'm

sort of phone hacking has been

going on in Australia whether

by News Limited journalists or anybody else F there was, if there was evidence of that,

then again that's something

that the police should deal

with. Mr Turnbull also

described as a dreadful idea Bob Brown's idea for a government licence newspapers in Australia. You

could call with the relief

rally. Investors have been on

edge for weeks as politicians

in the US and Europe grappled

with debt problems. Process in

the US and good result results

saw investors around the world

dive into equities. Wall

Street surged 200 points,

triggering the Australian

market's biggest rise this year. 1.8%. Phillip Lasker

reports. After weeks of anxiety

Europe and the US, markets were

desperate for hope and US President, Barack Obama, was

the provider. It is time to

get down to the business

actually solving this problem

and I think we now have seeing

the potential for a bipartisan

consensus around what that

would take. I do think it is

responsible for us to look at

what plan B would look like.

The leadership had a long

conversation yesterday about plan agreement in talks to lift America's debt limit combined

with good results from bellwether stocks like

Coca-Cola and Apple to kick off

world treat's reporting season.

. For this quarter the numbers

thus far are ahead of analysts

forecasts. A net upgrade, if

you like, as far as that scene is concerned. Australia was one of the biggest beneficiaries of

the brightening global mood.

BHP Billiton's June quarter production report reminder of where the economy's

money is being made. There

were annual production records across four commodities and 10 operations, operations, while production of

steel making coal from its

flood hit collieries in Queensland was better than

expected. Selling coal to the

Chinese beats selling flat

screens to Australians. It is

going to be a tough year.

There's no great or good news

on the horizon that might

change the saving and spending habits of consumers. Quarterly

sales for Woolworths' discretionary business, Dick

Smith electronics, dipped more

than 3.5%. But fs it was able to fall back on its supermarket

business where revenues grew, helping deliver the forecast

group revenue of more than 1

(200) 000-0000, up 6%.

Analysts say as far as profit

growth is concerned, it is lean

times for the industrial

sector. We're talking here media and building materials, in ago

gretswill be close to or for

the year finished close to fine

news 5. The fourth year in a

row of negative numbers. This year might be year might be lucky to be zero or little better. Westpac, the

bank that's saying weak will see interest rates cut, reveal

its May economic index results. Its leading index forecasting

economic growth 6 to 3 months

down the track is running well

below the long-term trend. The coincident index measures the pulse of current activity went negative for the first time

since the 90s recession.

Standby for the next instalment of European debt negotiations later this week. Europeans are

very tough. Politicians are

very slow to address the

problems. We have interest

rates now which are level which

make Portugal and Greece almost

impossible situations from the

status quo. In other words,

something will need to be done. Investors are not holding

their breath. A much more

market. Earlier I spoke to Martin Lakos from Macquarie

Private Wealth. A big rebound

today on the market. Was the

market a bit market a bit oversold, perhaps?

The market was probably

The market was probably very

oversold. We've fallen in the

last 7 days 150 points and down

11% since mid April. Very much

a lot of nervousness built into

the market. The news out of

the US which drove markets helped that relief rally. We

have to see if there's more continue the rally. Wall

Street or the Dow Jones up 202

points based on three things.

First we had news out that President Obama

they were close to agreement on their debt ceiling negotiations

with the Republicans. Second,

we had much stronger housing

start numbers. 629,000 new

homes started and permit

numbers were also better than

expected. The market liked

that. Thirdly, pretty strong

earnings results coming out of

the US n particular reported after the market much

better result but we'll

probably talk about that rate

later on. BHP Billiton

production numbers were out. They were quite strong. Yes

solid numbers. A rebound for

Queensland coal. For BHP

numbers up 40%. We still only

the about 65% of operating

capacity to what they were

doing on quarterly sales all of

last year. Still, pretty

strong number and continuing to

come through. Petrol was up

21 years which was good. A surprise out of the copper

division up 6% above

expectations. Escondida doing

very well. More importantly, Escondida is Escondida is upgraded. Its total resource base. There's

an additional 55 Milton tonnes

of mineable copper to come out

of the ground in the coming