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Live.

Tonight - a sorry affair,

more executives go as Murdoch

apologises. The founder of the out what had happened. At the company I was appalled to find

out what had happened. At the out what had

coal face, carbon campaigning

on the ground and on the airwaves. As consumer

confidence goes down, are interest rates suit? And the classic interest rates set to follow

collection that's kept a collection

Canberra couple in top gear.

Good evening, Craig Allen

with ABC News. Rupert Murdoch's

started day in London ended much as it

profile executive resigning

from his media empire. This

time it was his loyal

lieutenant Les Hinton, chairman of News International time of phone hacking. It was a

hamibling day for the media

mogul. He made an apology for

the hurt caused by hacking into

a 13-year-old girl's phone

after she went missing. The

parents and sister of murdered

schoolgirl Milly Dowler have

been given an audience with

3 most powerful men in Britain

- the Prime Minister, the

Opposition Leader and finally

the man they hold ultimately

responsible for hacking into their daughter

she was kidnapped. I just said

that as founder of the company

I was appalled to find out what

had happened. And I apologised

and I have nothing further to say. Rupert Murdoch bought

advertising space in all British newspapers not only his

own, stating that the company The Dowlers still intend

The Dowlers still intend to

pursue their legal action

against the 'News of the World'

but they welcomed the personal

apology from the boss. I don't

think somebody could have held

their head in their hands so

many times to say they were

sorry. He said the word sorry, this should not have happened,

that this was not the standard

set by his father, a respected

journalist, not the standard set by his mother. While

set by his mother. While the

media tycoon repented another

of his Les Hinton worked with Rupert of his top executives resigned.

Murdoch for more than 50 years.

He was head of News

International and takes full responsibility of what under his watch. Lawyers

Harbottle and Lewis were

employed by the Murdoches to

establish how widespread phone

hacking was at their newspaper.

these lawyers Rupert Murdoch is now blaming

these lawyers for making a major mistake in under

estimating the extent of the

that it was this firm that scandal. The ABC can reveal

represented the royal family in represented the

represented the royal

the original case against the

'News of the World' that saw 2

men convicted of phone hacking,

so the question has to be

asked, how can lawyers who

managed to put 2 men

not know what was going on? I don't

don't consent to being

filmed. Lawyers at Harbottle

and Lewis refused our requests

for an interview. A short time

ago I spoke to our

correspondent in London Lisa

Millar who's following the

story. She told me it's been humiliating day for the Murdoch

empire. They're calling it

atonement when bloody Friday here or day of

atonement when the world's most

powerful media mogul lost his

two trusted advisers in Les

Hinton and Rebekah Brooks. It

was a shocking day for him but

what probably says it is most

is this - the full page

apologises that he has run in

his rivals newspapers with

Rupert Murdoch's signature at

the bottom having to Paytens of thousands of pounds

thousands of pounds to

message across ta he is sorry

and if he was thinking this was

going to be a circuit breaker of some kind then he's probably

going to discover that he's

wrong because what it's done is simply turn the attention to

James Murdoch, the heir

apparent to the empire and

today the newspapers are full

of questions about his future.

And the 'News of the World'

isn't the only British paper in the Murdoch stable finding

itself in trouble? Well in the

spotlight today is 'The Sun' tabloid, the big money earner newspaper, the Monday to Friday

for Rupert Murdoch. Jude Law

the actor is taking legal

action against that newspaper action against that

claiming that it hacked into

his voice mail messages over a period of years. News

International has called that

International has called that

lawsuit deeply cynical and

mischievous from Jude Law. You might recall it was Jude Law's

ex-girlfriend Sienna Miller who

was also involved in this

scandal and got one of the early

of her mobile phone. early payouts over the hacking

where to from here for News

Corp? Well, we've been promised

that over the next

that over the next 24 hours

we'll see something more from

Rupert Murdoch about how he

plans to go forward, how he's

going to atone for the damages

and the hurt done but of course

all eyes will be on the

parliamentary inquiry on

Tuesday when Rupert Murdoch and

his son James and Rebekah

Brooks, the former employee, will will front the answer questions or be asked

and questions about what they knew

and when they knew it. Lisa

Millar in London, thanks very

much for joining

us. Thanks. The US President

says his country is facing

economic meltdown, a week of

frustrating meetings has failed

to clinch a deal to dig the

United States out of its

deepening debt crisis. The

Barack Obama is calling on

congressional leaders to

produce a plan this weekend

produce a plan this weekend to

avoid an unprecedented US

default. With ratings agencies

warning of a possible credit

downgrade Barack Obama argued

one more time for his

preference - a big $4 trillion

deal. I always have hope. Don't

you remember my campaign? But

his plan would involve

eliminating tax breaks as well as making deep spending cuts

and despite a string of meetings at the White House, Republicans, particularly Tea Party-backed congressmen, are

still refusing to accept

anything that smacks of a tax intends on writing every cheque until cheques start bouncing

then he will be the one that

defaulted on America. To avert an economic meltdown in August

and allow the and allow the US Government to

keep borrowing, house Republicans are are

Republicans are are pushing

instead for spending cuts of

$2.4 trillion, along with a balanced budget amendment. But

that won't wash with the

Democrat-controlled Senate or

the White House. We don't need a constitutional amendment to

do our jobs. As Treasury's

August 2 deadline approaches politicians are come up with other plans politicians are scrambling to

come up come up with other plans

including a Senate Republican

proposal giving the President

the power to lift the debt the power to lift the debt

ceiling in 3 stages, if all

else fails. But that's else fails. But that's only divided Republicans and it's far from clear if it will be enough to ease market concerns

about the need for a long-term

deficit reduction strategy.

While leaders on both sides are

pushing to avert an

unprecedented US default

there's a growing sense of

desperation. The problem

desperation. The problem is

members of Congress are dug members of Congress are dug in ideologically. Barack after 5 days says after 5 days of says it's decision time after 5 days of talk there's

little sign of a break through.

Interest rate relief could be

just around the corner. That's the bold prediction from one of

the big banks. With consumer

confidence collapsing a

downward movement in rates

would be welcome news for home

owners but not everyone agrees

that rates are on the way down.

The housing market is flat in

many capital cities this

year. Who would like to make a

start? In Melbourne talk of an interest rate cut created a ripple of excitement. I mean families are interest rate cut created a ripple of

families are really hurting out

there at the moment and an

interest rate cut would be significant. Westpac's chief

economist gave buyers hope reversing his bank's forecast

from a future interest rate

increase to cuts up to 100

basis points. My view is that eventually rates will come down

and that they will be on hold

for the next few months but by

December or early next year interest rates will start to

come down. And that was enough

to shake the market. We saw the

Aussie dollar weaken by about 0.5 to 1% and Aussie dollar weaken by about 0.5 to 1% and interest rate

markets rallies by 10 basis

points. Its just under half a points. Its just under half a rate cut. Westpac epredict s the Reserve Bank will cut rates

to protect the economy from

Europe's financial turmoil and to boost weak consumer spending

in Australia. The Treasurer acknowledge acknowledge there's are some

worrying signs. It is true that

consumers in Australia are are

now more cautious and they've

been like that for some time.

That is the response we've seen

from Australian consumers to

international international uncertainty. Earlier this week the big department stores

downgraded their profit

forecasts due to a sharp slump

in sales. The retail industry

says any cut in interest rates can't come soon enough. It may

be the kind of jolt needed for

consumers, for people in their

homes to feel a bit more

confident about spending those dollars. But other economists

disagree with Westpac. The most

likely outcome is still at the next move in next move in interest rates is

going to be up. He says a

booming Chinese economy will

any downturn in Europe. At the

end of a week spruiking her

Government's carbon tax, Julia

Gillard's had the hardest sell

of all. of all. The Prime Minister ventured to the La Trobe

Valley, home of one of Australia's dirtiest coal-fire

power stations. And while some

union leaders are backing the plan

plan there's plenty of anxiety

among local residents. For

months workers at the La Trobe Valley's coal-fired power

stations have been urging the

Prime Minister to frornt - front them and explain her

carbon tax plan. Today she

heard their concerns first hand. We're going to be

affected by this carbon tax. Under the plan the Federal Government will fund the

cutting of 2,000 megawatts of power generated by the

country's dirtiest power

plants. Julia Gillard says the

Government will work to create

new industries in areas affected by the cuts . People

are thinking what does it mean

for me? What does it mean for

my family? That's why I'm here

today to start a conversation

with this community with an

assurance that we working through with

them. After meeting with the Prime Minister union leaders

were optimistic new industries

will come. We're going to draw

up plans to be positive about

the future and see what climate

we can create in this region

for it to attract industries

here and investment. But the

Opposition Leader Tony Abbott

doesn't see a bright future for

areas like the La Trobe

Valley. Coal generated

electricity goes from 80% of

Australia's total to 10%

Australia's total by 2050. This

has to have a dramatic impact

on the coal industry. It's been

a long week on the road for Julia Gillard. Tomorrow night

her $12 million advertising

campaign begins on TV screens.

ADVERTISEMENT: In fact 9 in 10

households will receive tax cuts, increased payments or

both. Judging by the response

on the ground today the carbon tax remains a hard sell. Biosecurity Queensland is investigating two more

the deadly Hendra virus, one in

Brisbane the other in Hervey

Bay. Two horses have been put

down and several people are being monitored being monitored but Queensland

Health says human exposure to

the disease has been low in all

recent outbreaks. As Hendra

progresses, the tally mounts.

11 horses have now died from

the disease over the past month in Queensland and NSW including

two confirmed this afternoon.

The first of those in Hervey

Bay on Thursday where a local

vet took samples that were confirmed as Hendra last night. There's one other horse

on the property which has been

quarantined. The second case is

in the northern Brisbane suburb

of Boondall where a vet attend

ed a suspect horse on

Thursday. The horse wasn't in a

condition where we thought it

was necessary to euthanase but

it deteriorated rapidly on

Thursday afternoon and was

euthanased. 6 other horses on the property were also being

tested for Hendra and the acreage next door has been quarantined. 11 Queensland properties are now off limits

because of the disease. More

than 40 people are being monitored with an anxious

through the 21-day incubation through the 21-day incubation

period. At this stage I've been

told that all of the people

that have been exposed have that have been exposed have had low or negligible exposure. At

least 4 people from the Hervey

Bay property will be tested.

The two vets took strict precautions. They're confident

they obeyed all the rules, they

wor wore all the wor wore all the correct protectional equipment and they're confident they did all

the right things. No-one can yet explain why the number of cases cases of Hendra is up so sharply. There's certainly something happening this year that's different from other years. Biosecurity Queensland

is conducting intensive

research on every affected property using infra-red cameras and

cameras and sampling the level

of virus in bat droppings which

is known to be up from 10% to more than 30%.

more than 30%. The ACT

Opposition Leader says a stoush

between the planning chief and

the former chief minister Jon

Stanhope over the Giralang shops reflects a broader

culture of political interference. Documents under freedom of information

laws show planning boss Neil

Savery accused the Government of interfering with the approval process for development at the shops. The

Government's solicitor cleared

the Government of any

impropriety in the case but the

Opposition says it's proof

planning is highly politicised

in Canberra. The quick and

dirty legal advice is one thing

but Neil Savery pointed to a

pretty widespread culture of

interference and he didn't back away away from that. The current

Chief Minister says the legal

advice showed no political interference

interference was intended. But

I think it is important to make

sure that if one arm of Government's talking to the other other arm of government that

they actually resolve their issues. It shouldn't be that

the issues remain unresolved

and escalate into the sort of

outcome that we saw over this

issue . She says a recent

restructuring of the public

service will ensure better

communication over planning. Mr

Savery has not been available

for comment. Torres strait Islanders Islanders feel they're about to become the developed first climate refugees.

Residents there are demanding urgent

urgent action to fight rising

sea levels. Islanders say infrastructure

infrastructure and sacred sites

are being washed away and that appeals for Government help

have been ignored. For the people of the Torres Strait

climate change is evident. They

say tides in recent years have

been getting higher. Roads,

gardens and buildings are being

ruined, sacred burial grounds

washed away. This is fresh one

here. For about two years

community leaders have been asking for $22 million to pay

for sea walls and other

works. We cannot wait for any

revenue stream to be achieved

as a result of the carbon tax

if that ever goes

through. Claiming neglect by

State and federal authorities,

appeals have been made to the

international community for support. Well we're actually been reporting to the United

Nations on getting some

attention of the climate change to help us work with departments and organisations

that need to be working with us. We're us. We're left in a situation

where up until the 11th hour

pack up and leave. They've been

left to construct makeshift

defences. But this is only way

we can do it. One of the architects of the carbon tax

says the concerns are

justified. We have storm surge,

we have vulnerability to

disease, we've already got lost infrastructure and these communities

communities need help now. And

it's up to the Government to start putting money in. The

Opposition's indigenous affairs spokesman this money, spokesman agrees. You're doing

this money, you're spending $3

billion overseas and the people

who are actually being impacted

practically on the ground are

getting nothing and I feel for

them and I think they've got a very good case. A spokesman for

Climate Change Minister Greg

Combet says the Government has

invested about $1.5 million in

assessing the problem and

future risks. He says more

research needs to be done

before what he called site

specific action can

specific action can be taken.

The actress Googy Withers has

Kied at her Sydney home, she

was 94. A star of both stage

and screen she was theatre

the UK. She starred in the West royalty in both Australia and

End and on Broadway and met

Australian actor John McCallum

in the 1940s. They married and moved to Australia where they collaborated on many

productions. To sport now and a

vintage performance from Darren

Lockyer has helped the Broncos

to a big win over Gold Coast.

In other results the beleaguered Bulldogs were

punished by the Warriors. While are fighting out a tight contest. The Broncos dominated the second half against the

Titans. It took the Broncos

just over 2 minutes to land the first blow.

first blow. The Titans hit back

after Scott Prince set up Steve

Michaels. 10-10 at half time.

30 seconds after the break

Darren Lockyer burst clear.

Yow Yeh's second try was

demoralising for the Titans and it came from a it came from a Lockyer bomb.

Yow Yeh has taken a bomb. Yow Yeh has taken a bomb. The

captain did it again with a perfectly

perfectly judged kick for perfectly judged kick for Josh

Hoffman. If we can put that

effort in each week, you know,

we're going to be in the mix,

you know, when September comes

around. I feel for these boys

because they're working hard,

they're putting in and there's

a little bit of lack of belief

and probably forgetting how to

the box against win. The Bulldogs jumped out of

scoring the first 2 tries.

Steve Taylor has had a

lottery win. But he must have as the Warriors scored the next forgotten to put his ticket in

36 points. They ran in 4 second

half tries with hooker Aaron

Heremaia grabbing a double.

The second half rout completed a dreadful week for

the Dogs who have now lost

their coach and their way in their coach and their way in this year's premiership race.

To compound their misery Jamaal

Idris Raz - was reported striking. Mitchell Pearce

dominated the first half. His

neat grubber led to a try. Souths responded with an

Luke. But the Roosters went to individual effort by Isaac

the break in front when Pearce

to Shaun Kenny-doul. In local popped a beautiful short pass

comp:

Queensland winger Rod Davies

will make his Test debut tomorrow when the Wallabies

was called into the team when take on Samoa in Sydney. Davies

was called into the team when

James O'Connor was ruled out

with a hamstring injury. This

is crazy, you know, at the

have start of the year I wouldn't

have expected any of this and

it's all come pretty quick but

I've got to take it in my stride. Davies is one of 3

players in the starting line up

who will be playing their first Test. In the John

In the AFL the Magpies put

yesterday's betting scandal

behind them to defeat Carlton.

In other games Gold Coast beat

Richmond and Essendon accounted

for Adelaide. Collingwood put

in a workman like performance

this afternoon to beat the

Blues by 19 points. Nick Maxwell appeared a man with a

lot on his mind, Heath Shaw didn't lot on his mind, Heath Shaw didn't appear at all but the

spotlight on the captain and coach

coach it was the other stars

who lifted. Travis Cloke did

what he does best, Dale Thomas

did what he does best. And the

Magpies were off to a flyer.

But Carlton wasn't to be

intimidated and after first

gamer Zach Toomey goaled for

the Blues it was a 5-point game

at quarter time. The premiers

were in were in ominous form

were in ominous form but every

time the Magpies pulled away

Carlton scrapped its way back

in. It was enough for the Pies

boss to dream of early

retirement. In the retirement. In the end an 11-point half time lead was

tight. It got tighter. Walker's

goal had Blues fans enraptured

but the Blues couldn't take the

next step and hit the lead and

the Magpies managed to keep the Magpies managed to

them at arm's length. As the

teams turned for home

Collingwood led by 17 points.

The main concern a The main concern a possible injury to Scott Pendlebury. As

injury to Scott

the final term played out the

Magpies put the result to bed

in a burst of scoring that was

but always coming. The Blues brave

fifth time in a row by the but ultimately beaten for the

Magpies. I just want to thank

all the fans and supporters and

my team-mate for all the

support they've given myself

and Heath. We dug our own grave

that support. Collingwood but it's still nice to have all

showing that they've still got

nothing to worry about. And in

local competition Tuggeranong have beaten Belconnen.

Northern Ireland's Darren

Clarke and American Lucas

Glover share the lead after 2 rounds of the British Open. The

pair has one shot advantage

over a group of 4 players. Adam

Scott is the best placed

Australian, 3 shots from the

lead. He almost won the

British Open 2 years ago and at British Open 2 years ago and at

61 Tom Watson still likes to

show the youngsters a thing or two. two. I just saw it on the

replay and it was a slam dunk.

I mean if it missed the flag it

would have been, you know, 30

feet by. The 5-time champion is

6 shots off the pace. The 6 shots off the pace. The 2009

US Open winner Lucas Glover

moved to the top of the leader

Darren Clarke board with an even par 70. And

Darren Clarke who lost in a

play off at the British Open 14

years ago joined Glover on top

with a 68. 4 under is pretty

go with the forecast we've got good but an awful

for the weekend. Heavy rain and

strong winds are predicted as

Adam Scott continues his bid

for a first major title. The world's top 2 plairs Luke

Donald and Lee Westwood Donald and Lee Westwood missed

the cut. The 13th stage of the

Tour de France was un lucky for

some. Kloden is almost in tears. The vultures were circling and some of the

supporters were too close for

comfort on the climbs. Noted

sprinter Thor Hushovd surprised even himself by crossing the

line first. Frenchman line first. Frenchman Thomas Voeckler remains the overall leader with leader with Cadel Evans third. Still in France, and

18-year-old Hawaiian Carissa

Moore became the youngest ever

surfing world champion by

reaching the final of the

year's pen ultimate tour event.

She lost to Stephanie

Gilmore. Someone I've looked up

to for the past 4 years and

is pretty cool. For Gilmour it having her pass me the trophy

was her first win since she was assaulted outside her home late

capital's last year. A couple of the

capital's easy riders are

showing off their obsession

with speed and chrome displaying their motorbike

collection at the Canberra

they're Museum. They're classics but

they're regularly taken out on

the open road. The pair say riding together has kept their

love alive. Everyone remembers

their first love. For one Canberra collector it all started number. When this photo was

taken in the '60s Peter Toet

was loving life on the open

road. She generally tended to wave to people as they came the

other way and I always remember

when I went to Queensland and I

waved to this rider coming the

other way and it was a bloke in

a brown uniform it turned out

to be a policeman. He turned

around and pulled me up and he

said are you trying to be a

smart B or something. Instead

of giving away his wild waves

when he married brought his wife on board,

literally She was happy to

pillion. I said the real joy in

motorbikes is to ride it yourself. He got one bike each

another one and for us and then another one and

another one and after he bought

a few more he thought I better

get Ann another one and another

one appeared. Ann's quite the

cruiser these days. Her faifrts

is the red Triumph or perhaps

the 1930's Rudge. You get to

know each individual bike.

There's a few I can start and a

few I get Peter to start. It's

a family affair for her too.

with a need for speed. He and Her grandfather was also a man

his brother used to sort of spend so much time on

motorbikes granddad had his

Rudge and before that they had

a Harley Pump between them. Some of the pieces here

are rare enough to fetch

upwards of $70,000 but for

their owners that's not where the real value lies. Happy wife

good life, we found that bikes

were something that really we

could share and get some

enjoyment out of . A lifelong

love affair between two

love affair between two like-minded travellers. To the

weather now and it's been a

mostly overcast day in

Canberra. We had low cloud this

morning, a spot of sun in the

middle and then more cloud building this building this afternoon. A top

of 12 degrees in the city after

minus 2 this morning.

Any cloud showing up on the

radar is dry for now but we can

expect a few showers to sweep

in late tomorrow afternoon.

Around the capitals today:

There's some cloud crossing

over the great Australian Bight

and that's linked to a cold

front bringing some showers over southern Australia. That

tomorrow, producing showers front will cross the ACT

which will continue on and off

all next week as a low pressure

system develops off the coast.

So for The showers nationally will

follow that front into

Victoria. There will be more

rain up the east coast with an onshore wind. The South Coast

will see showers early on and

then the rain will reach the ACT ACT later in the day as that front approaches. Temperatures

will reach the high teens on

the coast tomorrow. Cooma is in

for another cold night to a top

of 13. Yass 13 as of 13. Yass 13 as well. Wagga 6

to 14 degrees. For Canberra:

And that's the And that's the news for now.

You can keep up to date 24

hours a day on ABC News online

and on ABC News 24. Thanks for

your company, goodnight. Closed

Captions by CSI