Korean veteran remembers mate's snoring

Fifteen Australian war veterans who fought in Korea have returned to mark the 60th anniversary. Source: AAP

RETURNING to Korea 60 years after fighting in the war has stirred up unexpected memories for Bill Monaghan.

During the Korean War, Monaghan bunked with fellow fighter pilot Bob Macintosh at the Kimpo Airbase, outside of Seoul.

"The room mate I'm sharing with, we were in Kimpo together, I had forgotten how much he snores," the 84-year-old Canberra great-grandfather told AAP on the phone from Korea on Saturday.

The pair are among 15 Australia war veterans who have travelled to Korea to mark the 60th anniversary of the armistice signing that ended fighting.

Mr Monaghan joined the Royal Australian Air Force (RAAF) in 1949 and was in active combat during the last three months of the war.

His role was to fly over enemy supply lines and try to stop supplies getting through to the frontline.

"I was a frightened young boy from the country who did not know what he'd gotten himself into," he said.

During his twelfth combat mission, his Gloster Meteor plane was hit by enemy fire which took out his right engine.

Unable to return to base on one engine, Mr Monaghan made an emergency beach landing on the island of Paengyong-do held by United Nations forces, where his engine was replaced.

Mr Monaghan returned to Australia in December 1953, to marry his wife Dot.

"She's only divorced me 14 times," he joked, hastily adding that they've had a wonderful married life and are proud of their son and daughter.

More than 18,000 Australians served in the Korean War, 340 soldiers died, 1200 were wounded and 43 are still listed as missing in action.

The 15 Australian veterans are attending a special ceremony at the Korean War Memorial in Seoul on Saturday, alongside Veterans Affairs Minister Warren Snowdon, and have toured some battle ground sites.

Mr Monaghan said it was sobering to visit the famous land battle site at Kapyong.

"You look at the conditions where the (Australians) fought back an overwhelming force of the Chinese, it's very daunting to consider that ... your hat comes off to them every time you think about it."

While the highlight of the trip has been the companionship of his mates, Mr Monaghan was keen to return to Korea and see first-hand the thriving democracy and economy.

"We look over the border at the north and we say it was well worth the effort," he said.

* Korean War veterans will also mark the anniversary at a service at National Korean War Memorial in Canberra on Saturday.

AAP lpm/nl

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Albo calls for patience on poll date

The Deputy Prime Minister has called for people to be patient about the federal poll date. Source: AAP

DEPUTY Prime Minister Anthony Albanese says no one in the Rudd government has a "rush to the polls mentality" but it will be before or after his league team wins the premiership.

Mr Albanese on Saturday called for patience, as speculation about the federal election date reaches fever pitch.

"No one in the government has had a rush to the polls mentality," he told reporters, flanked by scores of red balloons at a community campaign event for Chinese Australian lawyer Jason Yat-sen Li, Labor's candidate for the Sydney seat of Bennelong.

He said the government would consider calling the election at an appropriate time.

"It will be before or after the Souths win their twenty first premiership," he joked.

Mr Albanese is a South Sydney Rabbitohs supporter.

Opposition leader Tony Abbott urged Prime Minister Kevin Rudd to stop "playing games" and name the date.

"The government of our country is not about showbiz," he told reporters at the Stockman's Hall of Fame at Longreach in western Queensland.

"Electing a national government is not a version of celebrity Big Brother."

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Six dead, 40 wounded in Philippines blast

Six people have been killed and at least 28 injured in a bomb blast in a southern Philippine city. Source: AAP

SIX people are dead and more than 40 wounded in the Philippines after a bomb struck a restaurant filled with doctors after a national convention.

Police say the improvised explosive device went off around midnight Friday local time at a popular restaurant in the southern port city of Cagayan de Oro.

Most of the victims were doctors and pharmaceutical salesmen who had just attended a national convention of lung-disease specialists at a nearby hotel, said the city police chief, Senior Superintendent Graciano Mijares.

"This is one of the busiest areas of Cagayan de Oro.... somebody left a bomb on a chair at the bistro," he told reporters.

He declined to speculate on the motive for the bombing, saying an investigation was under way.

Cagayan de Oro is located on the main southern island of Mindanao, which has been blighted by a decades-old rebellion by elements of the large Muslim minority in the mainly Catholic Asian nation.

Local businessman Noel Arcenas, who owns an electronics shop at the shopping complex where the restaurant is located, said at least 100 people were inside the bistro when the explosion occurred.

"I felt then heard the blast," said Arcenas, who added he was standing about 15 metres away.

"I looked around and saw this ball of white smoke. People were running away bloodied and survivors were dragging at least seven or eight people away from the blast site."

The powerful explosion broke glass panels, upturned tables and chairs, and damaged cars parked up to 30 metres away, reporters at the scene said.

The six dead included two doctors as well as local politician Roldan Lagbas, a member of the provincial executive board of Misamis Oriental province, police said.

Forty-six other people were taken to area hospitals for treatment, said regional military spokesman Lieutenant-Colonel Leo Bongosia.

President Benigno Aquino's government denounced the attack.

"We deplore this act of violence at this meeting of professionals, the Philippine College of Physicians, whose mission in life is to bring about healing," Aquino spokesman Herminio Coloma told reporters in Manila.

Cagayan de Oro mayor Oscar Moreno told ABS-CBN television network at least two of the wounded were in critical condition.

"Doctors have been attending to them and we hope their situation will stabilise soon," Moreno said.

Asked who he thought was responsible for the attack, he said: "It's hard to speculate at this time."

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Sydney teen mum reveals abduction ordeal

A TEENAGE mother has described her terrifying ordeal after her baby son was abducted at knife point in Sydney by her ex-partner.

As the hunt continues for Steven Hume, who forced his way into the Chester Hill home of his ex-girlfriend on Thursday night, the baby's mother said she tried to escape.

Casey Mifsud, 16, told the Seven Network Hume broke into her southwest Sydney home, took out a knife and told her to get in the car with her eight-month old son.

"He told me he was going to kill me ... and my son," said Ms Mifsud, who had cuts to her face.

"Every time he would ask me a question and I would answer it, he would punch me in the head ... smash my head into the car window and then told me that he's really sorry and that he only does it because he loves me."

When Hume stopped for tissues to wipe her bloody face she fled the car with her baby.

Ms Mifsud said she banged on a driver's door begging for help but the driver took off.

This is when the 24-year-old grabbed baby Zhaiden and took off.

Hume's car was found abandoned on Avon Dam Road at Bargo, south of Sydney, on Friday morning after it slammed into a tree.

Ms Mifsud said she thought her child was dead until one of Hume's family members handed him to Campbelltown police station around 5pm (AEST) on Friday.

"It just makes me feel like I failed as a mum," Ms Mifsud said while sobbing heavily.

"He should get jail time for beating a woman."

The baby is currently in the care of the NSW Department of Family and Community Services.

Hume, who has a thin build, brown hair and several tattoos on his arms and chest, was last seen wearing a blue jumper and green track pants.

Police warn he's considered dangerous and should not be approached.

"I ask that members of the public do not approach him, but contact triple zero immediately," Superintendent Dave Eardley, from the Bankstown Local Area Command, said on Saturday.

"I urge Steven Hume to attend the nearest police station and hand himself in, or contact us and commence some dialogue."

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Qld police to blow up suspicious items

CONTROLLED blasts will continue into the night as bomb squad officers destroy homemade explosives which have already claimed a man's fingers.

Police late on Friday declared an emergency situation at the home in West Ipswich and surrounding areas after finding more dangerous chemicals at the scene.

Officers declared it an emergency situation after an explosion on Thursday evening.

This was revoked for most of Friday but had to be reinstated after police found suspicious liquids and chemicals in the house inside small jars wrapped in tape.

Police say they'll detonate the jars in the home's backyard and have warned residents to stay away.

Residents within 500 metres have been advised to stay inside.

Acting Inspector Geoffrey Noller earlier told reporters two men were injured in the initial blast.

One man, 43, was discharged from hospital with minor injuries.

But a 37-year-old man remained in hospital late Friday with severe injuries to his hands and groin.

"My information is that he's left with a thumb and a forefinger on his left hand and he's lost all the other digits," Insp Noller said.

A third man, who was in the house but uninjured, has been questioned by police.

Insp Noller said criminal charges were a possibility but investigations were continuing.

The incident comes just two months after the bomb squad was called to detonate a suspicious device at a nearby construction site that turned out to be a party popper tied to fishing line.

Party poppers in the property's bins were being gathered as evidence on Friday.

Insp Noller said police would investigate if there was a link between the two incidents.

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Sydney baby back after knifepoint kidnap

A Sydney man who threatened his ex-girlfriend and abducted his eight-month-old remains on the run. Source: AAP

A DRAMATIC search for an eight-month-old Sydney boy abducted at knifepoint by his father has ended in relief, with a family member handing him over to police.

Zhaiden Mifsud was handed in about 5pm (AEST) on Friday - about 20 hours after he went missing - at Campbelltown police station by a female relative of his father.

"He seems to be well and uninjured," a senior police source told AAP.

"It's a good result."

The baby was checked out by ambulance officers and may attend hospital as a precaution.

His father, Steven Hume, is known to police, to community services and is subject to an apprehended violence order.

Police continue to search for the 24-year-old.

He allegedly forced his way into the Chester Hill home of his ex-girlfriend Casey Mifsud, 16, and their son about 8.30pm on Thursday.

He grabbed both of them at knifepoint and put them into his 2007 Toyota Camry before later allegedly assaulting Ms Mifsud at a highway rest stop, and driving off with the baby, police say.

Zhaiden was in a booster seat and Mr Hume had no supplies for the baby, who was lightly dressed when abducted.

His car was found abandoned on Avon Dam Road at Bargo, south of Sydney, on Friday morning after it slammed into a tree.

Local police, PolAir, the Dog Squad and volunteers from the State Emergency Service and Rural Fire Service scoured the area, but were unable to find the pair.

Superintendent Dave Eardley made a final plea for anyone with information to come forward just minutes before Zhaiden was turned in to police.

He also said Mr Hume had a number of associates in the Bargo area who had been assisting police.

Supt Eardley defended the eight hour gap between the abduction being reported to police and a public alert being issued.

"I believe the investigation that we conducted was thorough and proper and we followed the correct processes," Supt Eardley said.

He said Ms Mifsud had been released from hospital after treatment and was distraught over the incident.

Ms Mifsud's sister, Jade Lee, says she reported the couple to the NSW Department of Family and Community Services as recently as two weeks before the abduction.

Her concern was directed at Mr Hume and the safety of the baby.

"Just so everyone no's (sic) yes I did report my sister to docs," Jade Lee wrote on her Facebook page on July 10.

She also said her sister reacted negatively to the action.

A week prior to that, she posted a general comment about abusive relationships.

"I really can't stand guys that hit and abuse girls and vise verser (sic)," she wrote on June 4.

" ... makes it worse when there r children in the picture cuz if they grow up with it they think it's normal and they end up in abusive relationships."

Speaking about Mr Hume's abduction of Zhaiden, she wrote: "This is what I didn't want to happen this is why I called docs cuz I new what was gonna happen."

Community Services Minister Pru Goward and the department declined to comment about any action taken in relation to the family.

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Asian shares mixed, strong yen sinks Tokyo

ASIAN markets have closed mixed, with Tokyo tumbling as the US dollar fell to a two-week low against the yen after suffering a sell-off in New York.

A disappointing batch of jobs and consumer data out of the United States kept Wall Street muted, although they provided hope that the Federal Reserve will hold off winding down its stimulus for the time being.

Tokyo on Friday dived 2.97 per cent, or 432.95 points, to 14,129.98 and Shanghai was 0.51 per cent off, shedding 10.32 points to 2,010.85.

Seoul was flat, edging up 1.20 points to 1,910.81, while Sydney added 0.13 per cent, or 6.4 points, to close at 5,042.0. Hong Kong was up 0.31 per cent by the close, adding 67.99 points to 21,968.95.

The Nikkei on Friday suffered its worst loss since the start of June after the US dollar tumbled against the yen as dealers absorbed the weak US figures.

The Labor Department said initial jobless claims rose to 343,000 in the week ending July 20, an increase of 7,000 from the prior week's upwardly revised 336,000 claims, and more than the 340,000 expected.

Durable goods orders rose 4.2 per cent in June, but BK Asset Management managing director Boris Schlossberg said the result missed expectations when the volatile transportation sector is excluded, leaving orders flat.

The figures increased the likelihood the Fed would keep its bond-buying scheme in place for the rest of the year to make sure the US economy can get back on track. It also means the bank will continue pumping dollars into the financial system, meaning it is less in demand.

The greenback sank to Y99.24 in New York on Thursday, from Y100.00 earlier in Tokyo.

And in early Japanese trade on Friday, the US unit fell even further to Y98.55.

The US dollar also fell against the euro on Thursday in the wake of a closely watched German business climate index, which rose more than forecast this month.

The euro traded at $US1.3290 on Friday from $US1.3277 in New York, and well up from Thursday's level of $US1.3209. The single currency was also at Y130.99 from Y131.75 in New York.

In US equity trading the Dow edged up 0.09 per cent and the S&P 500 added 0.26 per cent. But the Nasdaq rose 0.71 per cent, driven by Facebook, which soared 30 per cent following a better-than-expected earnings report.

On oil markets, New York's main contract, West Texas Intermediate for September, eased 79 US cents to $US104.70 a barrel, while Brent North Sea crude for September tumbled 65 US cents to $US107.00.

Gold cost $US1,332.58 per ounce at 1810 AEST, compared with $US1,313.40 late on Thursday.

In other markets:

- Taipei fell 0.17 per cent, or 14.18 points, to 8,149.40.

Smartphone maker HTC fell 0.57 per cent to $Tw175.0, while Hon Hai was 0.39 per cent lower at $Tw78.9.

- Manila fell 0.54 per cent, or 36.49 points, to 6,763.62.

Metropolitan Bank and Trust slipped 1.53 per cent to 109.30 pesos while BDO Unibank dropped 3.15 per cent to 83 pesos.

- Wellington rose 0.11 per cent, or 5.19 points, to 4,581.99.

Fletcher Building was up 0.48 per cent at $NZ8.31 and Telecom was steady at $NZ2.35.

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Tunisia in turmoil after MP's murder

Tunisian opposition figure, Mohamed Brahmi, has been shot dead outside his home by unknown gunman. Source: AAP

TUNISIA faces a general strike after gunmen shot dead a leading opposition figure in a killing that brought thousands of protesters on to the streets and sparked international condemnation.

Tunisia's national airline Tunisair cancelled all flights on Friday.

MP Mohamed Brahmi, a father of five, was shot by unknown gunmen outside his home on Thursday in the second such political assassination this year.

The ruling Ennahda party, a moderate Islamist group, denied accusations from his family that it was involved.

Protesters took to the streets on Thursday in central Tunis and in Sidi Bouzid, the birthplace of the Arab Spring and Brahmi's home town.

Police in Tunis fired tear gas to disperse scores of demonstrators who tried to set up a tent for a sit-in calling for the fall of the regime.

The General Union of Tunisian Labour (UGTT) called Friday's general strike across the country in protest at "terrorism, violence and murders".

It last called a two-hour general strike on January 14, 2011, the day former Tunisian dictator Zine El Abidine Ben Ali fell.

Brahmi, 58, of the leftist Popular Movement, was killed outside his home in Ariana, near Tunis, Watanya state television and the official TAP news agency reported.

"He was riddled with bullets in front of his wife and children," Mohsen Nabti, a fellow member of the small movement, said in a tearful account aired on Tunisian radio.

Human Rights Watch said that Brahmi's son, Adnen, had told its researchers he heard a first and a second gunshot, then several other shots as if from a machine gun.

He and his sister ran out of the house and as they reached their father's car they saw two men riding off on a motorbike, HRW said in a statement.

The Tunisian presidency, meanwhile, told AFP that Friday would be observed as a day of national mourning "following the assassination of lawmaker martyr Mohamed Brahmi".

The February 6 assassination of Chokri Belaid, another opposition figure, also outside his home, sparked a political crisis in Tunisia and charges of government connivance.

"I accuse Ennahda," the MP's sister Chhiba Brahmi told AFP at the family home in Sidi Bouzid. "It was them who killed him," she said, although she offered no evidence.

"Our family had the feeling that Mohamed would suffer the same fate as Chokri Belaid," whose family also blamed Ennahda, she added.

Ennahda chief Rached Ghannouchi rejected the charge in a statement to AFP. Brahmi's killing was "a catastrophe for Tunisia", he said.

"Those behind this crime want to lead the country towards civil war and to disrupt the democratic transition."

EU foreign policy chief Catherine Ashton condemned the killing, adding her voice to calls by UN human rights chief Navi Pillay, Amnesty International and Human Rights Watch for an investigation into the killing.

The United States condemned the "cowardly" assassination.

Brahmi was elected MP in October 2011 for Sidi Bouzid, birthplace of the revolution earlier that year that toppled Ben Ali.

On July 7, he resigned as general secretary of the Popular Movement, which he founded, saying it had been infiltrated by Islamists.

Following his killing, angry demonstrators took to the streets of Tunis to denounce the ruling Islamists.

Mohamed Maaroufi, a member of a youth committee that organised the protest, told AFP that they would stay in the streets until Ennahda had been forced from government.

In Sidi Bouzid, crowds, referring to the Muslim Brotherhood, chanted "Down with the Brothers, down with the people's torturers!"

Thousands also protested in nearby Menzel Bouzaine, where Ennahda party offices were set ablaze.

Prime Minister Ali Larayedh, himself an Islamist, told reporters: "I condemn in the strongest terms this odious crime which targets the whole of Tunisia and its security."

He also called for calm.

"This drama must not be exploited to sow trouble," he said. "Only minutes after news of the murder was announced, calls were made inciting Tunisians to kill each other."

President Moncef Marzouki said the killing was aimed at derailing the Arab Spring, and called it a "second national catastrophe" after Belaid's murder.

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Chinese man throws toddler in parking row

BEIJING, July 25 AFP - A two-year-old Chinese girl is in critical condition after being thrown to the ground by a man in a row with her mother over parking, a hospital and state media say.

The man, identified only by his surname Han, wanted to park by a bus stop in Beijing, the Beijing Times said, citing a witness.

But the woman pedestrian would not move out of his way as she was checking on her daughter at the time.

Han, in his 40s, emerged from his Hyundai Sonata and hit the woman before taking the toddler out of her pram, holding her up and dropping her "forcefully" to the ground, said the witness, a street stall owner surnamed Zhou.

"The baby made no noises after being dropped, not even a cry of pain," the newspaper on Thursday quoted Zhou as saying.

Another man came out of the car and also beat the mother before the pair drove away, it added.

The mother rushed the girl to a nearby medical facility and the report said she died while being transferred to Beijing Tiantan Hospital.

But that hospital indicated to AFP that the toddler remained under treatment.

"She is still alive," said a hospital official, declining to be named or to provide further details.

The Legal Daily said the girl remained in critical condition, adding she had stopped breathing at one point and was being kept alive by a respirator.

Police found Han, who was released from prison this year after serving a sentence for theft, in a hot spring bathhouse on Wednesday and detained him, said the report.

He could be charged with serious assault if the girl survives, the Legal Daily cited lawyers as saying, making him eligible for a maximum penalty of 10 years in prison.

A death sentence could be handed down if she dies and he is charged with murder, according to other Chinese reports.

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Thomson lawyer seeks damages from Labor

The lawyer for federal MP Craig Thomson (pic) claims NSW Labor promised him$35,000 in legal fees. Source: AAP

THE lawyer for federal MP Craig Thomson is seeking $35,000 in legal fees he claims NSW Labor promised him.

Lawyer Chris McArdle on Wednesday lodged a statement of claim in the NSW Local Court for $35,000 damages plus $1000 in costs.

Mr McArdle says NSW Labor secretary Sam Dastyari came to his office on February 21 and agreed to pay him $25,000 in seven days and $10,000 within the following 10 days.

The lawyer said Mr Dastyari - who had discussed the matter with Mr Thomson before the meeting - had made it clear the money was being offered to cover the former Labor MP's legal services.

Mr Thomson, who now sits as the Independent MP for the NSW seat of Dobell, is defending charges of misusing Health Services Union funds while he was the union's general secretary.

In the statement of claim, Mr McArdle cites text messages and emails between him and Mr Dastyari regarding account details.

Mr Dastyari, who was being sought for comment, has 28 days to file his defence.

Mr McArdle told AAP on Thursday he had never before met Mr Dastyari, nor had he done legal work for the ALP.

"He has been to my office but I've never been to his," Mr McArdle said.

The lawyer said he understood Mr Dastyari had told Mr Thomson that the reason the payment hadn't been made was because there was "some sort of delay".

"When time passed, he (Mr Dastyari) started denying that that which had taken place had ever taken place, which was rather pathetic," Mr McArdle told AAP.

Mr Thomson was suspended from the ALP in April 2012.

Mr Thomson declined to comment on the McArdle case.

But he told AAP two supporters, Mark Worthington and Rodney Allan, had so far raised close to $50,000 to cover his own legal bills.

"I am delighted with the support I have received through many, many donations from across Australia and from my region of the NSW Central Coast," Mr Thomson said.

"I would like to thank everybody who has supported me."

About 30 people attended the $150-a-head fundraiser in central Sydney on Thursday night.

Blogger Peter Wicks said he bought a ticket because Mr Thomson deserved a fair go.

"They haven't been able to prove anything yet," he said.

"It is Australia we're living in, not North Korea."

Reporters were prevented from entering the fundraiser but Mr Thomson spoke briefly to them outside.

He said he had received plenty of small donations totalling about $50,000.

He wouldn't say how much of his legal expenses this would cover but expected they would cost 'lots'.

Mr Thomson added that he wasn't worried about the turnout at the fundraiser.

"We've got money in the bank," he said.

"We've raised just around $50,000.

"It's a good start."

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QLD man seriously injured in explosion

A GAS bottle has exploded leaving two Queensland men in hospital, one seriously injured.

The explosion happened at a house in West Ipswich about 6.30pm (AEST) on Thursday, police said.

"Initial information suggests the explosion was caused by a gas bottle," they said in a statement.

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Cost-cutting gives Credit Suisse Q2 boost

CREDIT Suisse Group, Switzerland's second-largest bank, has posted a 33 per cent rise in second-quarter profits from a year ago, driven by solid returns from its wealth management and investment banking divisions as well as cost-cutting.

The Zurich-based bank said on Thursday it made a net profit of 1.045 billion Swiss francs ($A1.22 billion) in the second-quarter, up from 788 million francs in the comparable period of 2012.

Chief executive Brady Dougan said the bank's "business model is performing well" and that it continues to make progress in reducing its cost base and balance sheet.

The bank said its wealth management arm had 7.6 billion francs in net new assets, with strong inflows in emerging markets, and its investment banking's pre-tax income more than doubled from a year ago.

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PNG warns Rudd, Abbott over asylum issue

PAPUA New Guinea has warned Labor and the coalition not to impugn its dignity over the asylum seeker issue, as 70 men were flown out of the Manus Island detention facility amid allegations of rape and torture.

Immigration Minister Tony Burke is due on the island on Thursday to see for himself conditions at the centre, after speaking with the whistleblower who made the claims.

It's not clear if the group which left on Wednesday included the alleged offenders.

But Mr Burke had said he would remove them before Australian authorities begin transferring people to the island under Labor's new hardline policy to stop the flow of asylum seeker boats.

Whistleblower Rod St George alleges up to half a dozen men were assaulted and sexually abused by some detainees, others were forced to sew their lips together and one had solvent poured into his ear.

"I've worked with some of the worst criminals Australia has and even they have a clearer sense of decency than what I witnessed there," Mr St George told SBS's Dateline program.

Under the federal government's deal with PNG, people arriving by boat will be denied resettlement in Australia, be taken to Manus Island for processing and if their refugee status is approved, resettled in PNG.

Prime Minister Kevin Rudd said he made no apology for the government's tough stance, after reports three people, including a child, died after a boat carrying more than 160 people sank off Cidaun in western Java at about 2am (AEST) on Wednesday.

Indonesia's rescue agency BASARNAS told AAP there were about 157 survivors.

"We are seeing too many drownings, we are seeing too many sinkings, too many innocent people being lost at sea," Mr Rudd told reporters in Melbourne.

Opposition Leader Tony Abbott pointed to Mr Rudd's record, saying it was his government in 2008 that dismantled the Howard government policies which had "worked" to stop the boats earlier in the decade.

"This is a tragic reminder of what happens when policy change in Australia puts the people smugglers back in business," Mr Abbott told reporters on the Gold Coast.

"The only way, I submit, to stop the boats is to change the government."

Mr Rudd again rejected Mr Abbott's claim the deal with PNG, under which Australia has agreed to provide further aid, was a "cash splash" that wouldn't be accountable to taxpayers.

"Partisan politics aimed to, frankly, derail the regional resettlement agreement is just an appalling approach to the responsibilities of the highest office of this land," Mr Rudd said.

PNG High Commissioner Charles Lepani issued a warning to "Australian politicians to observe international protocols and courtesies ... and not impugn the dignity of our leaders, who are attempting to assist Australia in this very complex regional and international issue of asylum seekers."

Mr Abbott on Tuesday said PNG Prime Minister Peter O'Neill made it "pretty clear" the government had "subcontracted out to PNG the management of our aid program".

Opposition foreign affairs spokeswoman Julie Bishop added Mr O'Neill "has claimed and certainly believes that Kevin Rudd has agreed to hand over total control of the entire PNG aid budget".

In Port Moresby, Mr O'Neill told reporters the resettlement deal was an expansion of the existing aid program.

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Spike in violence tests Thai peace efforts

A SPATE of bomb and gun attacks in southern Thailand has left eight people dead, including teachers and police officers, officials say, despite a tentative deal to curb violence.

Malaysia - which is facilitating peace talks between the Thai government and Muslim rebels from the region - announced on July 12 that the two sides had agreed to try to avoid bloodshed during Ramadan.

But after a period of relative calm, violence spiked on Tuesday with the deaths of six people, including two police officers visiting a local market to gather intelligence in Narathiwat Province, according to the Thai authorities.

The other victims were a couple in their early 50s shot and killed while driving home and two Muslim villagers who died after gunmen sprayed bullets at a tea shop.

And on Wednesday, two female teachers were killed in a roadside bomb blast, while a third was seriously wounded, police said.

An insurgency in the Muslim-dominated region has claimed more than 5,700 lives since 2004 but talks between the Thai authorities and some rebel groups including the Barisan Revolusi Nasional (BRN) have brought tentative hopes of peace.

Thailand's National Security Council chief and lead peace negotiator Paradorn Pattanatabut said dialogue with the BRN would continue.

He said insurgent attacks were still down sharply compared with last year's Ramadan.

"I can reassure you that the talks haven't failed," Paradorn told reporters.

"Whenever violence occurred we asked the BRN and they said through the facilitator that it was the work of small, uncontrollable groups who oppose the peace dialogue," he said.

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$A steady after a volatile day

THE Australian dollar hit a one month high after the release of lower than expected local inflation figures, but later fell on the release of weak Chinese manufacturing figures.

At 1700 AEST on Wednesday, the local unit was trading at 92.57 US cents, slightly down from 92.59 cents on Tuesday.

Just after 1130 AEST the Australian dollar peaked at 93.19 US cents, its highest level since June 27.

The consumer price index rose 0.4 per cent in the June quarter, and 2.4 per cent in the year to June, slightly below expectations.

Soon after those figures were published by the Australian Bureau of Statistics, HSBC released its measure of manufacturing activity in China, which fell to an 11-month low in July.

The data made for a volatile session for the Australian dollar, Forex.com research analyst Chris Tedder said.

"Today's inflation data isn't a game changer in our opinion, but it makes predicting whether the Reserve Bank of Australia will cut interest rates next month more complicated," he said.

"A significantly weaker second quarter inflation figure would have almost certainty caused the RBA to become more dovish, while a significantly stronger figure would have made a rate cut unlikely."

The futures market is now pricing in a 62 per cent chance of a quarter of a percentage point cut at the RBA August board meeting.

The market had been pricing in a 67 per cent chance on Tuesday.

At 1700 AEST, the Australian dollar was at 92.39 Japanese yen, up from Tuesday's close of 92.10 yen, and at 70.03 euro cents, down from 70.23 euro cents.

Meanwhile, the Australian bond market ended the local session weaker.

Bond prices fell on the inflation numbers but then had a small rally after the Chinese manufacturing data, ANZ head of interest rate research Tony Morriss said.

"Overall, we think the inflation numbers were a little disappointing for the RBA, who might have looked for slightly lower CPI," he said.

"There is going to be some upward pressure on tradable prices in the future because of the falling Australian dollar."

At 1630 AEST, the September 10-year bond futures contract was trading at 96.310 (implying a yield of 3.690 per cent), down from 96.340 (3.660 per cent) on Tuesday.

The September three-year bond futures contract was at 97.340 (2.660 per cent), down from 97.370 (2.630 per cent).

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Witness claims actress set fire to pants

Amanda Bynes has been placed on a mental health hold after allegedly starting a fire at her US home. Source: AAP

AMANDA Bynes reportedly set fire to her trousers and may have been in danger of harming herself, before she was placed taken in for a psychiatric examination.

The troubled actress was hospitalised on Monday night for a mental health evaluation after deputies said she started a small fire in the driveway of a home in Southern California.

There are reports the incident was more serious than initially thought as gasoline was involved and it's now been claimed the 27-year-old star was in danger of harming herself.

"I see this girl with her pant leg on fire and a gas can trailing fire through the driveway," eyewitness Andrew Liverpool told E! News.

"She was laying down right here trying to roll or do something to take off the fire from her pants. Her pants were on fire."

Liverpool was coming home from work about 8.45pm local time when he came across Bynes. He immediately stopped to help her and realised it was the star as she had on her trademark wig.

"I quickly pull over to go help her and when I got over here. She put the fire out on her leg and was rushing over to her dog," he recalled.

"I kicked the gas can over and moved it to the middle of the driveway so nothing else would catch on fire. And I said, 'Are you OK?' She was kind of frantic and discombobulated, and many people rushed over to try to assess the situation and when I looked back up, she was gone."

Another onlooker summoned help and Liverpool went to look for Bynes - who had run off wearing her "charred pants". He found her a block away, where she was making a phone call and attempting to get a taxi.

"I told the driver, 'Don't let her in. There's a fire'," he explained. "I tried stopping her and she was like, 'Please don't touch me, don't move.' [Then] she got in and [the driver] just took off. Squad cars chased after her and I don't know what happened next."

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430 Qld govt IT jobs earmarked to go

ABOUT 430 Queensland government IT jobs could go next financial year and the minister won't guarantee work will stay onshore.

The state government is divesting its technology services provider, Centre for Information Technology and Communications (CITEC), within two years as part of a cost cutting drive.

The government's Information Communications Technology deputy director-general, Andrew Spina, told a budget estimates hearing on Tuesday job losses were expected to be finalised after a review was handed down in two months time.

"If you look at the service delivery statement, we've identified a reduction of staff for next financial year, which represents a movement of corporate resources and a movement of resources from the chief technology office to a number of 430," he said.

"Depending on what the outcomes of that review are, we would obviously be considering what other options there would be and what would need to occur with staff overall."

Information Technology Minister Tim Mander said he expects the government's IT needs to increase over the coming years but more of this work will be done by the private sector.

"This is good news for people in the IT game, the government isn't going to shut up and stop using IT," he said.

However when pressed by the opposition, Mr Mander couldn't promise jobs wouldn't be outsourced overseas.

"The key things for me will be value for money for Queenslanders and support of our local industry," he said.

Former Federal Treasurer Peter Costello's audit of the state's finances recommends the government divest itself of CITEC.

His report said CITEC was due to record an operating deficit of around $26.4 million in 2011-12, with further deficits expected in the following years.

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Abuse victim brings inquiry to tears

A WITNESS has drawn tears from the public gallery and applause from the commissioner of a special inquiry as he told his story of abuse at the hands of a NSW Catholic priest.

The man, now 37, flew to Newcastle from interstate to tell how abuse at the hands of Father James Fletcher had contributed to his alcohol use, relationship breakdowns, depression, business failure and a suicide attempt.

He questioned how different his life would have turned out if the church "had done something about Fletcher years ago instead of moving him around. Would he have got to me?'"

He said Fr Fletcher did "a terrible job on me."

"I had tried to block it out but there were many times I was tormented by memories and the shame, anger and embarrassment which had a really bad effect on me," he told the inquiry into the police handling of child sexual abuse allegations involving Hunter Valley priests, Fr Denis McAlinden and Fr Fletcher.

"The breach of trust I have experienced at the hands of the Catholic church will affect me forever as I was an innocent little kid with a big hope for the future...I expected that when I finally got the courage to tell someone about it the church would not let me down...

"That wasn't to be and I believe they put more effort into damage control than into caring for me."

After he gave his evidence, commissioner Margaret Cunneen applauded his courage.

"You must always remember, no shame attaches to you," she told him.

Fr Fletcher was convicted in a NSW district court in 2005 of sexually assaulting a boy and died in jail in 2006.

Later in the day, a senior Hunter Valley Catholic priest denied there was "a culture" of not recording details of pedophile priests in the 1990s.

Monsignor Allan Hart told the inquiry he believed it was sufficient to verbally pass information on to the bishop of the Maitland/Newcastle diocese at the time, Leo Clarke.

Monsignor Hart, who was second in charge of the diocese, admitted notes were never taken during meetings and conversations between 1993 and 1995 with two victims, a nun and bishop Clarke.

"These conversations raised matters of the gravest nature involving a priest where you did not take notes, was there a culture within the office to avoid there being a record?" barrister Maria Gerace, on behalf of a female victim of Fr McAlinden, asked.

"I passed the information on to the bishop, he got my record," Monsignor Hart answered.

He said there was no policy to record these meetings.

Fr McAlinden died in Western Australia in 2005.

Documents obtained by the commission show church leaders knew from the 1970s Fr McAlinden had sexually abused Hunter Valley children since the 1950s.

In 1993, Bishop Clarke stripped him of his powers to act as a priest but until the end of 1997 he was living a "nomad" type of life, paid an allowance by the Maitland/Newcastle diocese and sometimes operating as a priest in various parts of the world.

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Spain still stuck in recession

THE crisis hit Spanish economy remained in recession in the second quarter but seemed close to a recovery thanks to exports, the Bank of Spain says.

"According to available data, that is still incomplete, we estimate GDP (gross domestic product) fell by 0.1 per cent on a quarterly basis, a yearly drop of 1.8 per cent," the central bank said in a statement on Tuesday.

But the Bank said the contraction had slowed considerably, eased by a boost in demand for Spanish exports which had made a 0.4-per cent contribution to the country's gross domestic product during the quarter.

Spain, the eurozone's fourth-biggest economy, has been sunk in recession since mid-2011 and officially contracted by another 0.5 per cent in the first quarter this year.

But the Spanish government has repeatedly signalled in the past month that the economy is about to get back on track on the wave of resurging exports.

Last week, the government said Spain's trade deficit narrowed sharply in May.

Exports have been a rare bright spot for the Spanish economy which is struggling to recover from a 2008 property crash that has pushed the jobless rate up to a record 27 per cent.

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Pair deny SA throat slit murder

Two SA men have gone on trial for murdering a man whose throat was slit and was stabbed 25 times. Source: AAP

A STRIKING-LOOKING man with long blond hair was repeatedly stabbed and had his throat cut after making a sexually suggestive remark, a jury has been told.

Memories differed about the actual comment, but prosecutor Sandi McDonald SC said one witness recalled the victim telling Michael Joseph Lindsay something like: "I will pay you for sex".

Another witness understood the comment to be jocular and to be directed at the whole group, she said.

Ms McDonald was opening the crown case at the South Australian Supreme Court trial of Lindsay, 29, and Luke James Hutchings, 30.

They have pleaded not guilty to murdering Andrew Negre, 37, whose dumped body was found in a reserve at Hallett Cove, in Adelaide, on April 8, 2011 about a week after he died.

Ms McDonald alleged that after Mr Negre's sexual comment, Lindsay punched him to the ground and Hutchings held his legs as Lindsay went through his pockets and took money.

Lindsay stabbed Mr Negre at least 25 times before Hutchings came from behind and slit his throat, the prosecutor said.

Mr Negre had been drinking with his partner on the night of March 31, but when she left him at the Cove Tavern to go home, he met Lindsay who was with two other people.

Ms McDonald said other patrons would give evidence about seeing the group with Mr Negre, who was "quite a distinctive man" being very tall and "very striking" with long, straight blond hair.

They allegedly went back to Lindsay's home, where Hutchings was a boarder, and they and a number of other people socialised and drank alcohol.

Mr Negre's partner tracked him down and after finding him to be drunk, she went home after Lindsay said he would drop him back there the next day.

Ms McDonald alleged that after Mr Negre was murdered, his body was transported to a nearby reserve in a wheelie bin.

The trial is continuing.

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Mandela 'stronger and stronger': grandson

SOUTH African peace icon Nelson Mandela is "steadily improving" six weeks after he was admitted to hospital with a recurring lung infection, his grandson said Monday.

Mandla Mandela, who is embroiled in bitter spat with family members over his grandfather's burial site, visited the former statesman at a Pretoria health facility on Sunday after missing his 95th birthday last week.

"The visit left me with a warm feeling because my grandfather is getting stronger and stronger everyday," he said.

In a statement, Mandla also issued a thinly veiled rebuke to his relatives after lawyers for more than a dozen family members had claimed in a court filing that the Nobel Peace Prize winner was in a "vegetative state".

Mandla said his grandfather's recovery "flies in the face of those who have been busy spreading lies that Madiba is in a 'vegetative state' and just waiting for his support machines to be switched off," he said, using his grandfather's clan name.

The oldest Mandela grandson, who is chief of Mandela's birth place Mvezo in the rural Eastern Cape province, has fallen out with relatives after moving the three graves of Mandela's children without consulting the family.

Following a court order, the remains were reburied earlier this month in Mandela's childhood village of Qunu, where the anti-apartheid hero has said he himself wishes to be buried after his death.

Mandla's family has laid a charge of grave-tampering against him, and Mandla is appealing the court ruling.

He was notably absent for Mandela's birthday celebrations in hospital last Thursday.

Mandla was instead carrying out community projects around his village as part of Mandela Day, a global day of charitable acts in honour of his grandfather, seen as the democratic father of South Africa.

Mandela's current hospital stay is his longest since he was released from prison in 1990, after serving 27 years under the apartheid regime.

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PNG opposition lashes asylum seeker plan

A PLAN to resettle asylum seekers in Papua New Guinea is an "agreement between two madmen", opposition leader Belden Namah says.

Mr Namah told the ABC from Singapore prime ministers Peter O'Neill and Kevin Rudd had no regard for UN conventions.

"Peter O'Neill is making decisions like a chicken with no head," he said.

"It is an agreement between two madmen."

Australia and PNG agreed on Friday that asylum seekers travelling to Australia by boat will be turned away, processed and potentially resettled in PNG.

Mr Namah called for the agreement to be debated in the nation's single house of parliament.

PNG has bigger problems than refugee processing, he said, and should not make money from asylum seekers.

Prime Minister Peter O'Neill says the scheme will boost the national economy.

"The problem in PNG is not money," Mr Namah said.

"It's not about bad financial management and corruption."

He said it was kowtowing to old colonial masters.

"Do we need to make money off asylum seekers? No."

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Afghan parliament sacks interior minister

Afghanistan's interior minister Mujtaba Patang has been sacked less than a year after taking office. Source: AAP

AFGHANISTAN'S parliament has sacked Interior Minister Mujtaba Patang, one of the country's most powerful security chiefs, less than a year after he took office.

Patang lost a vote of confidence by 136 to 60 in the lower house of parliament over accusations of corruption and incompetence in the battle against Taliban insurgents.

"He's lost the vote of confidence and I on behalf of the Wolesi Jirga (parliament's lower house) request the President of the Islamic Republic of Afghanistan to introduce another individual to the parliament for a vote of confidence," said speaker Abdul Rauf Ibrahimi.

Patang, a former deputy interior minister and a career police officer, was dismissed a month after the Afghan government formally took responsibility for nationwide security from US-led NATO troops at a handover ceremony.

Parliament dismissed Patang's predecessor Bismillah Mohammadi in August 2012, allegedly for failing to stop a Taliban resurgence and cross-border shelling from Pakistan.

But lawmakers approved Mohammadi's nomination a month later as defence minister.

The cabinet reshuffle at the time was interpreted as an effort by President Hamid Karzai to secure his powerbase before anointing a successor to stand in presidential elections next April.

Karzai has led Afghanistan since the US-led invasion removed the Taliban regime in 2001.

His government has been widely criticised as weak and corrupt, and for failing to address perceptions of worsening security as NATO troops withdraw.

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Villagers flee as Java volcano spews ash

Indonesia's Mount Merapi has unleashed volcanic material forcing hundreds of villagers to flee. Source: AAP

INDONESIA'S most volatile volcano has spewed smoke and ash forcing hundreds of people to flee their villages along its slopes, a disaster official said.

Mount Merapi on the main island of Java rumbled as heavy rain fell around its cloud-covered crater, said Sutopo Purwo Nugroho, disaster mitigation agency spokesman.

The volcano unleashed a column of dark red volcanic material 1,000 metres into the air, and the ash made the rain thick and muddy in several villages as terrified residents fled to safety, he said.

The sound was heard 30 kilometres away, but an eruption did not occur and the volcano's alert level was not raised, Nugroho said.

The 2,968-metre mountain is the most active of 500 Indonesian volcanoes. Its last major eruption in 2010 killed 347 people.

Indonesia, an archipelago of 240 million people, is prone to earthquakes and volcanic activity because it sits along the Pacific Ring of Fire, a horseshoe-shaped series of fault lines.

AP

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Nurses to strike at 160 NSW hospitals

Nurses and midwives will strike at more than 160 public hospitals and community health services. Source: AAP

NURSES and midwives at every major hospital in NSW will be walking off the job on Wednesday.

Staff at more than 160 public hospitals and community health services across the state have notified the union about their plans to strike.

They are protesting over what they say is the state government's failure to provide safe nurse staffing levels.

NSW Nurses and Midwives' Association General Secretary Brett Holmes said more branches were expected to join the cause by Wednesday.

"For a few hundred million dollars a year the state government can dramatically improve patient care in our public hospitals," he said in a statement on Sunday.

The union wants one nurse to four patients in all general medical, surgical and acute inpatient mental health wards.

It's also calling for one nurse per three children in general children's wards and one nurse to three patients in emergency departments.

The extra staffing would "save lives and money", Mr Holmes said, adding that the nurse-to-patient ratios needed to be consistent at every hospital in NSW, including those in the country.

A special general meeting will be held at Sydney Olympic Park Sports Centre from 11.30am (AEST) on Wednesday, with a live webcast to 17 regional centres, including Albury, Broken Hill, Kempsey, Tamworth and Wagga Wagga.

During the strike life-preserving services will be maintained in all hospitals and community health services, the union said.

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Bashed Sydney man's family seeks witnesses

THE family of a man brutally bashed by a stranger in the Sydney CBD have pleaded for two men caught on camera to turn themselves in.

Matthew Blackmore, 33, was crossing George Street to catch a cab home around midnight last Sunday when an unknown man smashed him in the side of the face, in what police have described as an "vicious, unprovoked" attack.

He was knocked unconscious and fell face first onto the pavement, breaking his nose and striking his head.

The Maroubra banker remained in hospital on Sunday, and his sister Karen Blackmore said he faced a long recovery.

"It's one day at a time," she told reporters.

"He's struggling, to be honest ... he doesn't recall anything, he doesn't know why."

Detectives have now released CCTV footage of two men who are wanted for questioning over the incident.

One man is described as being of Caucasian appearance, with an athletic build and short brown hair.

He was wearing a black jacket, white button-up shirt, dark pants and white shoes.

The second man depicted in the footage also looks Caucasian, has a short stocky build and a shaved head.

He was dressed in a dark jacket, white shirt, black pants and black shoes.

City Central Local Area Command's Stephen Warren said CCTV video showed the two men pulling up in a dark 4WD to the CBD street where Mr Blackmore was bashed.

"The males that we wish to speak to are seen to get out of that vehicle, cross George Street, and moments later the assault on Matthew occurs," he told reporters in Sydney.

He said Mr Blackmore didn't know either man, but urged anyone who did recognise them to come forward.

"Tell us what you know, so that we can bring some comfort to this family and try to arrest the offenders," he said.

Acting Inspector Warren also revealed police have obtained CCTV footage of the assault itself.

Mark Blackmore told reporters it was time for his brother's attacker to come forward.

"It's been a week, you've had time to think about your actions," he said.

He's described his brother as "one of the lucky ones" because he escaped severe brain damage in the incident, but Matthew Blackmore still suffers memory loss, severe headaches and difficulty balancing.

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Rudd's PNG boat deal a fake fix: Abbott

Opposition immigration spokesman Scott Morrison says asylum seekers could still be resettled in Aus. Source: AAP

THE coalition has launched a broad attack on Labor's asylum seeker deal with Papua New Guinea, accusing Kevin Rudd of misleading Australians to win votes ahead of an election.

Opposition Leader Tony Abbott says the central thrust of the deal - that all asylum seekers arriving by boat will be sent to PNG and will not be resettled in Australia - simply is not true.

"It's clear that neither of Mr Rudd's assertions are actually borne out by the document," he told reporters in Melbourne on Sunday.

"Mr Rudd has been misleading to the point of dishonesty."

Mr Abbott, accompanied by his immigration spokesman Scott Morrison, detailed a long list of alleged flaws with the deal, signed on Friday by Mr Rudd and his PNG counterpart Peter O'Neill.

Under the arrangement, people arriving by boat without a visa were to be sent to Australia's Manus Island facility in PNG for assessment and, if found to be refugees, would be settled there.

Attorney-General Mark Dreyfus earlier said it was unlikely PNG's leader would have told the coalition anything different.

"I'm certain that's not what Prime Minister O'Neill said," Mr Dreyfus told Network Ten.

But Mr Abbott said the document wasn't even legally binding, but a scant two pages "held together with blue tac and sticky tape" to last until the election.

"This is simply another fake fix from someone who is the great pretender of Australian politics," he said.

Mr Morrison said it was clear from examining the details that PNG was not bound to the agreement, and that Labor had no plan for children arriving by boat.

PNG would not take an unlimited number of asylum seekers, despite Labor claims to the contrary, and it could be years before Manus Island could handle a surge in arrivals, he added.

He said people who are found not to be refugees would become Australia's problem, and those with communicable diseases, terrorism charges or a criminal background would remain in Australia.

"The devil is always in the detail with Mr Rudd, and Mr Rudd always proves to be the devil in that detail," Mr Morrison said.

Mr Rudd's hardline policy will likely feature at a meeting of Labor MPs meeting in Sydney on Monday, with Cabinet member Mark Butler acknowledging a level of discomfort within the party ranks.

"There would be people within the Labor movement and the Labor party and the broader community who would feel uncomfortable with this," he told Sky News.

It comes as Home Affairs Minister Jason Clare announced that the Australian Federal Police would pay rewards of up to $200,000 for information leading to the arrest and conviction of people smugglers.

But Foreign Minister Bob Carr said asylum seekers were arriving at the rate of 40,000 to 50,000 a year, and a tough response to stop that rising even further was unavoidable.

"If it continues at this level - the prime minister was very persuaded by this - it could rise further as people smugglers really close in to make a financial killing," he told Sky News.

The coalition has said it would "salvage" what it could from the deal if elected to government, but wouldn't be replaced its foremost policy of turning back asylum boats where it's safe to do so.

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10 rebels and soldiers killed in Colombia

Six guerillas from the FARC rebel group and four Colombian soldiers have been killed in clashes. Source: AAP

SIX guerillas from the leftist FARC rebel group and four Colombian soldiers have been killed in clashes in southwest Colombia.

Military officials say the fighting occurred in the town of El Doncello, in the department of Caqueta, a stronghold of the southern bloc of the Revolutionary Armed Forces of Colombia.

Three soldiers were injured and two militants captured.

The latest casualties of Colombia's almost half-century-old insurgency came a day after the rebel group announced it had captured a US-ex soldier but said it was ready to release him as a gesture toward peace talks with the government.

The Revolutionary Armed Forces of Colombia, or FARC, is the country's largest guerrilla group with 8000 fighters.

Talks between the rebels and the government opened last November in Cuba, in the fourth attempt since the 1980s to end the conflict that has left 600,000 dead, more than 3.7 million displaced and 15,000 missing.

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