Australia Central Bank Foresees Need for Higher Rates to Contain Inflation

Australian bond market was weaker after the central bank reiterated that the next direction for interest rates was up even though a time frame was not given.

At 1630 AEST on Tuesday, the June 10-year bond futures contract was trading at 94.610 (implying a yield of 5.390 per cent), down from 94.660 (5.340 per cent) on Monday.

The June three-year bond futures contract was at 94.920 (5.080 per cent), down from 94.950 (5.050 per cent).

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On Tuesday, the Reserve Bank of Australia (RBA) released the minutes of its May 3 board meeting that showed it still believed an interest rate rise was in the pipeline but was unclear when that would happen.

The RBA left the cash rate at 4.75 per cent in early May - a level unchanged since November 2010.

Treasury secretary of Australia said the local currency will stay elevated “for some time,” a rise the central bank signaled would help contain inflation spurred by the nation’s biggest mining-investment boom.

The Australian dollar, which is currently at record levels, can be expected to move roughly in line with the terms of trade over the longer term,” Martin Parkinson, the Treasury’s top bureaucrat, said in a speech today in Sydney, referring to a measure of export income. “It is therefore expected to also remain persistently high for some time.”

Reserve Bank of Australia Governor Glenn Stevens has kept the benchmark interest rate at 4.75 percent after seven increases in the overnight cash rate target from October 2009 to November last year, moves that contributed to a 21 percent gain in the currency in the past 12 months.

The market has forecast hourly rates of pay, excluding bonuses, to rise by 1.1 per cent for the quarter.

Mr Johnson said the data would be crucial for the outlook on inflation and interest rates.

"I think that if the wages number is high it's a problem, but even if it is not high I suspect we've got a wages problem brewing already given the weak productivity performance."

Mr Johnson said the key piece of economic data on Tuesday night AEST would be the UK inflation figures.

IMF top job goes global Fight

That could pit the fast-growing markets of Asia and Latin America against Europe.

Developing countries are seeking more influence on the world stage as their economic clout increases.

Mr Strauss-Kahn has been charged with attempted rape in New York.

European officials, however, say the debt problems in the region mean any replacement should come from Europe.

The current structure for leadership at the IMF and the World Bank is one where the former is headed by a European and the latter by an American.

"There is growing disquiet, particularly among emerging nations about this division of roles," said Jan Randolph, head of sovereign risk analysis at IHS Global Insight.

He says China could use its influence to support an emerging market candidate for the top IMF job.

He led a tripling of Fund financial resources, and carved a crucial role for it in Europe's crisis, where it has joined bailouts of Greece, Ireland and, as of Monday, Portugal.

Strauss-Kahn also helped set a new ideological tone at the Fund.

In April he said it was no longer rigidly opposed to countries using capital controls defensively -- a position that in the 1990s had angered a number of developing countries, which accused the IMF of favoring advanced economies.

He also stressed the need to consider the impact of financial adjustment policies on job creation.

"It's probably too much to say that it's a jobless recovery, but it's certainly a recovery with not enough jobs," he said of the recent turnaround of many economies.

Another key change came with the acceptance that the IMF and World Bank leadership would no longer be monopolized by, respectively, European and US officials.

For more than half of the years since 1946 French men have led the Fund.

But in recent years rising economies have expanded their voting power on the fund's board, and in recent months numerous names from developing economies have circulated for eventually replacing one or both of its leaders.

Possible successor

Although Strauss-Kahn has not officially resigned, most analysts expect that he will do so.

John Lipsky, who was named as the IMF's acting managing director, has already said he will step down in August, when his term ends.

Names of potential candidates for the top job are already being bandied about.

Singapore's finance minister Tharman Shanmugaratnam, former South African finance minister Trevor Manuel and Kemal Dervis, Turkey's former minister of economic affairs are possible successor, according to former IMF official Eswar Prasad.

Families in Kyla Rogers tragedy are reeling

Gold Coast Detective Acting Superintendent Tim Trezise said evidence found at the Gold Coast unit suggested the five-year-old girl was asleep in bed as her mother and a 33-year-old man were stabbed to death at the weekend.

"In difficult circumstances like this, when we have a triple homicide and what we believe at this stage to be a suicide, it’s not easy to explain exactly why this happened," Detective Trezise said.

The body of Kyla's mother, Tania Simpson, 31, and the body of Antony Way were found dead in Ms Simpson's Robina unit around 8am yesterday.

The discovery sparked an abduction alert for Kyla, who police believe had been taken by her father Paul Anthony Rogers, 40, after the the murder.

Police have not yet officially named the man found dead with Simpson, citing the need to contact next of kin in New Zealand. But New Zealand media report he is Antony Way, formerly of Nelson.

The New Zealand Herald reported that Mr Way - who was known by many of his friends as 'Ant' - grew up in Nelson, attending St Joseph's Primary School and Nelson College.

He left New Zealand eight years ago and has been working in Australia as a renderer.

His family described him as an avid gym-goer and a keen rugby player.

"Ant was one of those charismatic guys with an X-factor who drew people to him,'' a family spokesman said.

"He had a sharp sense of humour and would give you the shirt off his back. He was generous, positive and had the most captivating smile.

The local area commander at Richmond in northern NSW, Superintendent Greg Martin, would not say whether Rogers left a note before dying in the car with his daughter.

"It's probably improper that I flush out all of the details of the investigation through the media when it's the coroner that should be finding all this out first," Supt Martin told reporters.

Bodies found by grandfather

The bodies of Mr Way and Ms Simpson were discovered by Kyla's maternal grandfather, who had arrived to take her to school. Acting regional crime co-ordinator Inspector Tim Trezise said police were 'gutted' at her death.

"It's just a waste, all these people dying, but particularly an innocent child like this one," he told a media conference at Gold Coast police headquarters today.

The child abduction alert for Kyla was not issued until about 3.15pm Monday but Insp Trezise said he did not believe it could have been issued any earlier.

He said police could not issue the alert until they had firm information and were also using mobile phone tracking to try to locate Mr Rogers and Kyla alive.

It's a bit early to speculate on the actual time of death but we would think that it wouldn't be long after the vehicle was first seen," Supt Martin said.

"It may not have really mattered the fact that we couldn't find the car when we first looked for it yesterday morning."

Kyla's mother and father reportedly planned to marry but broke up after an eight-year relationship.

Ms Simpson had moved to the Gold Coast to start a new life, but it is not known whether she was in a relationship with the man who was found dead.

The bodies of all four people involved in the tragedy will undergo autopsies in Brisbane to determine the exact causes of death.

Bomb found near Dublin ahead of UK Queen's visit

LONDON — A bomb was defused near Dublin ahead of a historic state visit by Britain's Queen Elizabeth to Ireland starting Tuesday, Irish police said.

"A viable explosive device was found on a bus yesterday evening in Maynooth," near Dublin, a spokesman said, adding that police had been tipped off by an anonymous call.

The device was defused by the Irish army, he said.

The queen will visit amid a massive security lockdown after the threat of Irish republican terrorism resurfaced with a coded bomb threat in London.

The historic four-day trip, the first by a British monarch to the Republic of Ireland since it gained independence from London in 1922, is a landmark moment aimed at normalising relations between the two neighbouring states.

It was found in the town of Maynooth, 25 km (15 miles) from Dublin and blown up by an army bomb disposal unit in a controlled explosion, the military said. The remains of the device were handed over to police for investigation.

Police later said the army's bomb squad was investigating a second suspicious device found at a Dublin tram station.

Peace in Northern Ireland after decades of conflict has paved the way for the Queen's four-day stay, but there will be constant reminders of a violent past during her visit.

he Aras dates back to 1751 and used to house the viceroys who oversaw British rule in Ireland. Queen Victoria and King George V stayed there while visiting.

George V, Queen Elizabeth's grandfather, was the last British monarch to visit, 100 years ago.

Following talks, the queen and the president head straight for one of the most sensitive moments of the trip -- a visit to the Garden of Remembrance, dedicated to "all those who gave their lives in the cause of Irish freedom".

Both McAleese and Queen Elizabeth will lay wreaths and the national anthems of both states will be played.

Republican demonstrators will be kept far from the scene, with many of the surrounding roads completely screened off.

The couple's final engagement Tuesday will be to visit Trinity College, one of Europe's finest universities, where they will view the Book of Kells, a ninth century gospel manuscript.

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Goodrem and teenage musician Jonas snapped on movie date

Goodrem, was photographed walking out of a Hollywood cinema with the Jonas Brothers star, 18, with the youngster's famed purity ring no-where in sight.

The pair have been spending the last few weeks working on tracks for Goodrem's upcoming album, the Daily Mail reported.

The new couple has not spoken publicly about the date, with Jonas leaving an ambiguous message on Twitter over the weekend.

"I feel so blessed. Had a great weekend," he tweeted.

Goodrem announced the end of her engagement to former Westlife star McFadden on April 1.

She has since found long-awaited recognition in the US when she performed the classic Carole King song Natural Woman on the US Dancing with the Stars.

Goodrem had just an hour to prepare for the performance after UK singer Adele pulled out.

songstress, 26, and the teen singing sensation were snapped heading to a West Hollywood cinema, with their hands locked. Even after they were spotted by the waiting paparazzi, the grinning duo kept a firm grip on on another The Daily Mail reports.

Couple was spotted on a cinema date in West Hollywood on Sunday, fuelling rumours of a romance between the pair.

Goodrem was all teeth an smiles as Jonas escorted her through the parking lot of the Arclight Cinema in Hollywood, reports the Daily Mail.

"Nick also sported a content smile, and didn't bother releasing Delta's hand when the pair were spotted by photographers," adds the report.

Which, in tabloid terms, means they're practically married and merrily raising progeny.

Rail closures to hit travel times

State Transport Minister Terry Mulder said on Tuesday that workers will start moving part of the existing track between Sunshine and Tottenham, in Melbourne's west, to make way for new country tracks into the city.


The Regional Rail Link aims to improve the times of Geelong, Ballarat and Bendigo regional trains when they make their way through the city, by creating dedicated tracks for them.


"Suburban trains will no longer be stuck behind country trains and vice versa," Mr Mulder said in a statement.


"This will also mean that suburban trains on the Werribee, Sydenham and Craigieburn lines will be more reliable."


Mr Mulder said there will be a two week closure of the Sydenham, Ballarat and Bendigo lines for construction works between July 1-18.


Express buses will carry commuters from Albion and Sunshine railway stations direct to Flemington Racecourse station.
Public Transport Minister Terry Mulder said V/Line trains would have separate tracks from suburban trains for the first time.
"Suburban trains will no longer be stuck behind country trains and vice versa, he said.
This will also mean that suburban trains on the Werribee, Sydenham and Craigieburn lines will be more reliable."
PTUA regional spokesman Paul Westcott said the closure of a suburban stations for more than two weeks was "completely unprecedented".
He said the shutdown of suburban trains would cause "massive disruptions.

Vic supports plain cigarette packs

Opposition Leader Tony Abbott may not support plain-packaged cigarettes as the tobacco industry threatens to slash the cost of cigarettes if the Gillard government pushes ahead with the anti-smoking legislation.

Mr Abbott, who is yet to back the government's proposal, says he is happy to support any policy that has been proven to curb smoking rates.

"But my anxiety with this [plain packaging proposal] is that it may end up being counterproductive in practice," he told reporters today.

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Health campaigners and Health Minister Nicola Roxon have branded the tobacco industry's threat to cut the cost of cigarettes if plain packaging is introduced as a stunt.

Mr Davis told reporters in Melbourne on Tuesday.

When asked if the government supported plain-packaged cigarettes, he replied "yes".

However, Mr Davis avoided answering questions about whether the state Liberal party would continue to accept donations from tobacco companies.

He said those questions would need to be directed to the Liberal party.

Mr Abbott has said he's happy to support any policy that has been proven to curb smoking rates but stopped short of supporting the government's proposal.

"My anxiety with this (plain packaging proposal) is that it may end up being counterproductive in practice," he told reporters in Geelong.

The NSW coalition government earlier this month also announced its support for plain cigarette packaging.

The tobacco industry has launched a campaign attacking the government's plan to introduce plain "drab green" packaging for cigarettes, claiming the move will drive down prices in the face of increased competition with blackmarket imports.

Bomb threat on eve of Queen's visit to Ireland

LONDON: Police received a bomb threat for central London from Irish republican paramilitaries, a day before a historic visit by the Queen to Ireland, Scotland Yard said.

''A bomb threat warning has been received relating to central London today. The threat is not specific in relation to location or time,'' a Scotland Yard spokesman said yesterday.

''We believe the threat is in connection with dissident republican terrorism.''

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Police closed a major road leading to Buckingham Palace for several hours but a search found nothing suspicious, while there was also a controlled explosion of a suitcase nearby.

The idea of armed British officers operating in Ireland was initially ruled out, but the Irish government has agreed to let 120 Metropolitan Police officers carry guns. It is the first time a British monarch has visited Ireland since 1911 and the city centre will be turned into a car-free zone to prevent car bombs.

Republican terrorists have pledged to disrupt the tour.

The first day of the visit coincides with the 37th anniversary of the bloodiest day of the Troubles, in which 34 people were killed in four car bombs in Dublin and Monaghan.

Irish police will have to deal with attempts by the radical republican group Eirigi to occupy the Garden of Remembrance in Dublin, the memorial to Irish people killed in the struggle for independence, where the Queen is due to lay a wreath today. The group has threatened to set up a ''freedom camp'' in the memorial garden .

Mrs McAleese said the trip was emblematic of the progress that has been made between the two countries. Her comments came as unprecedented steps were taken to ensure all runs smoothly.

She said: ''[It is] a phenomenal sign and signal of the success of the peace process and absolutely the right moment for us to welcome on to Irish soil her majesty the Queen, the head of state of our immediate next-door neighbours.''

The Irish Prime Minister, Enda Kenny, said the Queen should expect a warm reception from the majority of people.