Fonterra faces new milk scare in Sri Lanka

NEW Zealand dairy giant Fonterra, already under pressure over a global botulism scare, is facing fresh trouble over milk powder in Sri Lanka allegedly mixed with a farm chemical.

The company said on Saturday it had completed a recall of two batches of milk powder under Sri Lankan government orders because of allegations it contained traces of chemical DCD.

Dicyandiamide, or DCD, is added to pastures to increase agricultural yields.

A New Zealand government website says DCD is not toxic and poses no food safety risk but adds that international regulators are likely to view DCD residues as a "contaminant".

However, Sri Lanka's health ministry said it considers DCD to be a "toxic chemical" that should not be in milk and that is why it ordered the recall, spokesman Dharma Wanninayake told AFP.

Fonterra, whose brands are the market leader in Sri Lanka, accounting for nearly two thirds of imports, has denied its products contain any trace of DCD.

"Our milk is 100 per cent pure," Fonterra spokesman Roshan Kulasuriya said. "But we complied with the directive and have completed the recall of the two batches said to contain traces of DCD by today (Saturday)."

The Sri Lankan action is unrelated to the global safety recall announced by Fonterra earlier this month after tests turned up a type of bacteria that could cause botulism.

New Zealand's government said last weekend products potentially tainted with botulism-causing bacteria included infant formula, sports drinks, protein drinks and other beverages.

Fonterra has said the Sri Lankan government tests that allegedly found traces of the DCD chemical in its products were flawed and the results incorrect.

Meanwhile, Sri Lanka's Court of Appeal has slapped a temporary ban on Fonterra advertising.

The ban will remain in force until August 21 when test reports from foreign laboratories are expected, a court official said.

Following the botulism scare earlier this month, Sri Lanka suspended the release of milk imported from New Zealand at a port in Colombo until an internationally recognised laboratory certifies they are toxin free.

Fonterra insists the batches at the port do not contain any harmful bacteria.

Sri Lanka imported $US307 million ($A339.08 million)-worth of milk and milk products in 2012 with the bulk coming from New Zealand and Australia, the central bank says.

The developments globally have been bad news for New Zealand's dairy industry which is a key driver of the nation's economy.

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Another asylum seeker boat arrives

A BOAT carrying 28 asylum seekers has been intercepted by the Navy off Christmas Island.

Customs says the boat, which also had two crew on board, sought and recieved assistance from HMAS Maryborough on Friday night.

The people on board have been transferred to Christmas Island, where they will be given health checks.

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Rudd dumps ALP candidate for Hotham

PRIME Minister Kevin Rudd has dumped the ALP's candidate for the safe Labor Victorian seat of Hotham following claims of misconduct several years ago, while another candidate has quit the campaign after a racism row.

Geoff Lake was forced again to apologise for abusing a fellow councillor during a meeting of Monash City Council in 2002.

Details of a sexual harassment claim from the time, reportedly being shopped around by his own party colleagues, say he called Liberal councillor Kathy Magee a "f...ing bitch" and a "f...ing slut".

Mr Lake told News Corp newspapers he had apologised several times to Ms Magee and was still remorseful.

Labor ministers including Mark Dreyfus and Tanya Plibersek defended Mr Lake on Saturday, saying it was a long time ago, when he was 22, and he had apologised many times.

However, late on Saturday, Mr Rudd issued a statement saying the party had removed Mr Lake's endorsement following a report by Labor's national secretary George Wright into misconduct claims.

"The national secretary has informed me that he is not satisfied that there has been full disclosure about these previous matters," Mr Rudd said.

"Based on the investigation, I have concluded that it is inappropriate for Mr Lake to continue as the endorsed Labor candidate for Hotham."

He said he would ask the national executive to preselect a new candidate for the Hotham.

Meanwhile, Labor candidate for Kennedy, Ken Robertson, has resigned after reportedly calling Tony Abbott a bigot, Sky News says.

"I hope Australia never has to suffer his Catholicism and the things that he's doing personally, because I think he's a very, very bigoted person," Mr Robertson reportedly said.

"He'd have the White Australia policy back in a flash, if he could."

Earlier on Saturday, the coalition said Mr Rudd's sincerity about party reform would be tested by what action he takes against the two Labor candidates.

Shadow attorney-general George Brandis said the two reports of "serious misconduct" posed a test for Mr Rudd.

He linked it to Thursday's announcement Labor was dumping its candidate for Forde, Des Hardman, in favour of former Queensland premier Peter Beattie.

"If Mr Rudd is willing ruthlessly to sack a candidate who is innocent of any wrongdoing, what leadership will he show, what action will he take against these two candidates ... who have in different ways disgraced themselves?" he asked reporters in Brisbane," Senator Brandis said.

"If Mr Rudd stands by these candidate, while dismissing poor old Mr Hardman in Forde as part of his political chess game, then the Australian people will make their own judgments about Mr Rudd's personal standards and they'll make their own judgment about Mr Rudd's hypocrisy."

One Nation candidate Stephanie Banister, who was ridiculed after referring to Islam as a country in a television interview, has also withdrawn from the election campaign.

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Dozens of cops injured in Belfast clashes

DOZENS of police were injured in Northern Ireland's capital Belfast on Friday night in clashes with pro-British Protestants protesting against a parade by Catholic republicans.

Some 56 police officers were injured, four requiring hospital treatment, when they were attacked with bricks, bottles and other missiles by crowds in the city centre, police said on Saturday.

Several cars were set on fire, while police used water cannon and fired baton rounds to try to disperse the rioters.

Seven people were arrested for offences ranging from riotous behaviour to hijacking, and Northern Ireland police chief Matt Baggott warned that many more arrests would follow.

"Those people had no intention of peaceful protest," he said.

"They lack self respect and they lack dignity."

The city's prisons would be "bulging" once all the culprits were rounded up, he said.

Belfast is currently hosting thousands of former police and fire officers from around the globe, who are in town for the World Police And Fire Games.

Protestant loyalist protesters had tried to block part of the route of a planned republican parade marking the anniversary of the introduction by British authorities of internment without trial on August 9, 1971.

It was one of the most controversial policies of The Troubles, the three decades of civil unrest in Northern Ireland between pro-British Protestants and Catholic republicans favouring a united Ireland.

Nearly 2,000 people were held without trial under the policy, the vast majority of them republicans.

Internment lasted until 1975. It was intended to restore order in the British province, but the deeply unpopular policy ultimately boosted recruitment to the paramilitary Irish Republican Army.

There were also clashes on Thursday night at an anti-internment bonfire near Belfast city centre, when eight police officers were injured and eight people were arrested.

Last month the city was hit by several nights of rioting, mainly by loyalist groups.

More than 3,500 people died during Northern Ireland's three decades of sectarian strife.

The 1998 Good Friday agreement, which set up a power-sharing government between republicans and loyalists, largely ended the violence, although sporadic attacks and bomb threats continue.

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Japan national debt at one quadrillion yen

JAPAN'S eye-watering national debt has topped Y1 quadrillion, official data shows, a record figure that underlines Tokyo's struggle to curb its huge borrowing.

The figure supplied by the finance ministry of Y1.008 quadrillion by the end of June amounts to about $A11.51 trillion at current exchange rates.

A quadrillion is one thousand trillion.

Tokyo has the dubious distinction of having, proportionately, the biggest debt pile among industrialised nations, more than twice the size of its economy.

The lion's share of that debt is from long- and short-term Japanese government bonds, as well as other borrowing.

The staggering figure, about 1.7 per cent higher than the previous quarter, comes a day after Japan pledged to slash its budget and get spending under control.

Japan has not faced a public debt crisis like the kind seen across the debt-riddled eurozone, largely because most of its low-interest debt is held domestically rather than by international creditors.

But the International Monetary Fund and others have issued warnings about Tokyo's ever-increasing borrowing, after a series of sovereign credit rating downgrades in recent years.

This week, the IMF called on Japan to adopt a "credible" fiscal plan to repair its books, including raising sales taxes to generate new revenue.

Prime Minister Shinzo Abe's government is mulling whether to go ahead with a series of sales tax rises that would double the rate to 10 per cent by 2015, a key source of new income but one that some fear would stall his economy-boosting plan dubbed "Abenomics".

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One Nation defends candidate over gaffe

THE One Nation party is defending its candidate who was ridiculed after referring to Islam as a country, saying it was a simple slip of the tongue.

One Nation leader Jim Savage says its candidate for Rankin in Queensland, Stephanie Banister, 27, was dealt a terrible injustice following the Seven Network interview, which was picked up by newspapers and radio stations around the country.

Ms Banister, who had only been in politics for 48 hours at the time of her interview, referred to Islam as a country.

"I don't oppose Islam as a country but I do feel their laws should not be welcome here in Australia," she told the network.

However, Mr Savage says Ms Banister meant to say "in" a country and immediately corrected herself, but this was not aired.

"Channel Seven went to air trying to give the impression Stephanie said Islam was a country," he said in a statement.

"She immediately corrected herself, but Seven conveniently left this off.

"I am bloody furious that Channel Seven targeted this young woman, without our knowledge.

"Of course as a rank novice it was easy to manage to get her to make a simple slip of the tongue.

"The poor girl was giving her very first TV interview, and if anyone thinks it is easy, try doing it some time.

"Even the Channel Seven reporter, Erin Edwards, in an interview she did with me last week asked if I was racist against Islam.

"I had to inform her Islam was not a race."

Mr Savage called for Ms Banister to be given a fair go, adding other politicians had referred to Islam as a race but were not taken to task by the media.

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Tokyo investors eye Japan, US data

TOKYO investors will be eyeing Japanese and US economic data next week, but trading is expected to be thin with many dealers off for a national holiday.

US economic figures including retail sales and industrial output are due out as markets look for clues as to when the US Federal Reserve will start rolling back its huge stimulus drive.

The Fed has said any pull back from its quantitative easing scheme rested on evidence of a solid recovery in the world's largest economy.

"If it is confirmed that the US economy is keeping in good shape, that would support the (Tokyo) market," Nomura Securities said in a client note.

Eurozone GDP figures will also be in focus while, closer to home, second-quarter economic growth figures for Japan will be eyed as Tokyo mulls a series of sales tax hikes aimed at chopping its mounting public debt, already the worst in the industrialised world.

There are fears that a drive to stimulate the world's third-largest economy could be cut short by raising taxes.

In the week to August 9, Tokyo's benchmark Nikkei 225 index lost 5.88 per cent, or 850.97 points, to 13,615.19.

The Topix index of all first-section shares lost 4.62 per cent, or 55.26 points, to 1,140.91.

The tumble was largely due to a 4.0 per cent drop in the Nikkei on Wednesday as selling pressure soared because of a stronger yen and after Wall Street fell sharply.

On Friday, Tokyo stocks ended flat after zigzagging in and out of positive territory, with market heavyweight Nikon diving after a big drop in the camera giant's quarterly profit.

"The market remains in the summer doldrums," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.

Next week, many traders will be off for national holidays.

"The markets could see some renewed buffeting if trading volume drops off even more than we have seen in recent weeks," said an equity derivatives trader at a foreign brokerage.

On Friday, Nikon dropped 14.29 per cent to Y1,726 after saying on Thursday its net profit fell 72 per cent in the April-June quarter as digital camera sales slumped, while slashing its sales and profit outlook for the fiscal year to March.

Toyota rose 0.16 per cent to Y6,170, Sony gained 0.83 per cent to Y1,943 while Sharp was down 0.74 per cent to Y401.

In Tokyo afternoon trading, the US dollar was nearly flat at Y96.66 from Y96.64 in New York on Thursday.

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European stocks mixed before weekend

EUROPEAN stock markets have traded mixed and the euro retreated from seven-week highs against the US dollar as traders banked profits ahead of the weekend pause.

London's FTSE 100 index on Friday gained 0.26 per cent to 6,546.46 points following strong British export data and approaching midday in the British capital.

Frankfurt's DAX 30 fell 0.16 per cent to 8,305.24 points and the CAC 40 index in Paris dipped 0.13 per cent to 4,059.15.

"Markets have hit a lull ... (amid) holiday mode after a busy two weeks dominated by economic figures and news from all the major policy decision makers," said Toby Morris, senior sales trader at CMC Markets, in reference to action being taken by global central banks.

On Friday, the world's second-biggest economy China reported industrial growth for July reached a five-month high.

Industrial production, which measures output at factories, workshops and mines, rose 9.7 per cent year-on-year, well above analyst expectations.

Authorities also announced steady expansion in retail sales and fixed asset investment, and a benign inflation figure of 2.7 per cent, unchanged on last month.

Analysts said the figures pointed to a more stable outlook for China's economy - seen as a key driver of global growth - after months of mounting pessimism.

The data came as Britain's biggest retailer, supermarket chain Tesco, said on Friday that it is in exclusive talks over combining its Chinese operations with those of China Resources Enterprise.

Tesco said the move was in line with the group's strategy of seeking to profit from fast-growing economies, and comes as China seeks to balance export growth with domestic consumption.

Tesco - the world's third-biggest supermarket group after French rival Carrefour and US retailer Wal-Mart in first place - said the proposed joint venture would create a business with annual sales of about STG10 billion ($A17.18 billion).

Shares in Tesco rose 0.87 per cent to stand at 372.3 pence in London morning deals.

Shares in Dutch telecom group KPN leapt by 18.0 per cent in response to a bid for full control by Mexican group America Movil.

The euro edged up to $US1.3383 from $US1.3380 in New York late on Thursday.

The US dollar nudged higher to Y96.68 from Y96.65 on Thursday.

On the London Bullion Market, the price of gold rose to $US1,306.61 an ounce from $US1,298.25 on Thursday.

Asian stock markets closed out the week mixed, while on Wall Street overnight US stocks snapped a three-day losing streak.

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India accuses Pakistan of Kashmir attack

INDIA'S government has for the first time directly accused Pakistan's army of involvement in a deadly ambush on its troops in Kashmir, amid uproar over its handling of the attack.

Defence Minister A.K. Antony also warned the ambush would damage warming ties with Islamabad and hinted at stronger military action along the Line of Control (LoC) where the ambush overnight on Monday saw five Indian soldiers killed.

"It is now clear that the specialist troops of Pakistan army were involved in this attack," Antony told parliament on Thursday.

"Nothing happens from Pakistan's side of the LoC without the support, assistance, facilitation and often direct involvement of the Pakistan army," he said.

Antony's strongly worded statement comes after the opposition angrily accused the minister of deliberately choosing not to blame the Pakistani army for the attack, amid attempts to revive peace talks with Pakistan.

Analysts have said the attack had complicated efforts to arrange a meeting between India's veteran Prime Minister Manmohan Singh and his new Pakistani counterpart Nawaz Sharif.

"Naturally, this incident will have consequences on our behaviour on the LoC and for our relationship with Pakistan," Antony said.

"Our restraint should not be taken for granted nor the capacity of our armed forces and resolve of the government to afford the sanctity of the LoC ever be doubted."

In a fresh allegation of their own on Thursday, Pakistani military officials accused Indian troops of opening fire and seriously wounding a male civilian in the Tatta Pani sector along the LOC.

The picturesque Himalayan territory of Kashmir is divided between India and Pakistan by the UN-monitored LoC, the de facto border, but is claimed in full by both countries.

While Indian military sources said on Tuesday Pakistani troops were behind the attack, Antony would only say in a statement the same day that it was carried out by men wearing Pakistani uniforms.

The Congress-led government has been keen to engage with Pakistan, with Foreign Minister Salman Khurshid saying on Wednesday, "We don't want to create a situation that is detrimental and destructive for India's security and peace".

But following the attack, the opposition has piled pressure on the government to postpone peace talks. The ambush and the government's response have made front-page news in India.

Thursday's headline in the Times of India daily read "Under fire for letting Pak off the hook, govt to rejig position".

Pakistan has denied any part in the incident, but India has lodged an official protest with Islamabad for what is one of the worst losses of life for the Indian army since a 2003 truce agreement.

Antony said he made his initial comments based on the best available information, and that Thursday's statement came after receiving the latest briefing from Army Chief General Bikram Singh over the attack.

The minister's statement comes as the bodies of the five soldiers were cremated with state honours in their local villages, in the presence of army officers and thousands of mourners, local media reports said.

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Mandela marks two months in hospital

CRITICALLY ill former South African president Nelson Mandela has marked two months in hospital, as his compatriots extended their national vigil.

The anti-apartheid hero was rushed to the Pretoria Mediclinic Heart Hospital on June 8 with a recurring lung infection. His condition is still said to be "critical but stable".

But the past two months have seen a series of scares for the Nobel Peace Prize laureate and for the country where he is considered a living saint.

On Thursday, a steady stream of pedestrians passed the hospital gates, which have been plastered with posters, hand-painted signs and notes wishing the 95-year-old well.

Nearby a line of white satellite vans, some parked there for 62 days - since Mandela fell ill - are stationed on the road. A white police truck guarded the entrance, while police officers continued to search cars entering and leaving the hospital.

"The country is a little bit quiet because he is still alive," said Elizabeth Thembo, a 63-year-old cleaner wearing a blue smock walking outside the hospital. "God must help him."

On the eve of the sorrow-tinged anniversary church leaders led prayers in front of the hospital, urging South Africans to rally together.

"God is using Madiba, and his extended illness, to present to us a great challenge to unite behind the values that he represents," Pretoria bishop Joe Seoka said, using Mandela's clan name.

Early in his stay family testimony and court documents gave an indication of the seriousness of his condition. He was described as being in a "vegetative state" and depending on life support to survive.

On June 23, the presidency said "the former president's condition had become critical over the past 24 hours", as President Jacob Zuma cancelled a foreign trip.

But since then friends and family members reported the peace icon's health was improving.

Mandela's 95th birthday on July 18 saw the family gathered at his bedside for a celebration.

Across the country there was an outpouring of charitable deeds, with many people offering 67 minutes of service for the 67 years he was in public service.

But despite recent upbeat assessments, there appears little sign of a much-wished-for discharge from hospital.

Last month US network CBS reported, citing unnamed sources, that Mandela underwent a surgical procedure to unblock a dialysis tube.

It also said that he had two scares, once when he failed to respond to his medications and on another occasion when his life support machine showed him in distress.

"It's quite painful, actually. We don't want to face the truth," said Rethabile Maake, a 21-year-old student outside the hospital.

Some people observed that since Mandela has been in care, the country has changed.

"Since he has been in hospital, everything is going down," said Tshepo Rampou, a 19-year-old student with one gold tooth, wearing a green Che Guevara shirt.

"People seem to have forgotten about the maintenance of peace," he said, adding that crime and corruption within the government is a problem.

There are fears that Mandela's message of peace will be lost when he is gone.

"Obviously we feel bad, we still need him around," said Stan Kgomotso, an unemployed 23-year-old from Venda, Limpopo.

Kgomotso is concerned by the message of some political factions, including that of the new political party, Economic Freedom Fighters, being against a racially united South Africa.

"You know they don't like whites," he said, "but whites bring money into our country. If Mandela goes I think it's going to be a mess up."

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Acid attack on two UK women in Zanzibar

TWO young British women are recovering after unknown attackers in the Indian Ocean island of Zanzibar threw acid into their faces, the first such assault against foreigners in the popular tourist destination, police say.

Late on Wednesday night two men on a moped threw the acid at the 18-year-old women as they strolled through the streets of Stone Town, the historical centre of the capital of the semi-autonomous Tanzanian archipelago, splashing their faces, chests and hands.

"Police in Zanzibar have launched a manhunt, and we ask for public assistance in identifying the attackers," deputy police commissioner Mkadam Khamis said on Thursday.

The attack on the women, both working as volunteer teachers at a school on the island, came at the end of Ramadan, the Muslim holy month of fasting, and as people began to celebrate the Eid al-Fitr holiday.

"The motive for the attack on the volunteers aged 18 years, has not been established. Investigations are on until we apprehend the criminals," Khamis said.

The women were flown to Tanzania's economic capital Dar es Salaam for treatment, where their injuries were said to be "not life-threatening", said Saleh Mohammed Jidawi, a senior health ministry official.

Britain's Foreign Office said they were "providing consular assistance" to the women, but gave no further details.

Tourism is the main foreign currency earner for Zanzibar, famed for its white-sand beaches and historical buildings in Stone Town, which is listed as a world heritage site by UNESCO.

"It may threaten tourists," said Abdul Samad, chairman of the Zanzibar Association for Tourism Investors.

Tensions between the majority Muslim population and Christians in the archipelago (some three per cent of the 1.2 million people on the islands) have risen in recent years, as well as on mainland Tanzania.

In Tanzania, where both Muslims and Christians each make up around a third of the population, the communities traditionally live peacefully side-by-side.

In Zanzibar, some more conservative elements of the Muslim community object to foreign tourists who wear revealing clothes, as well as bars selling alcohol.

There have been a series of attacks in the archipelago, including an acid attack on a Muslim cleric in November, and the shooting death of a Catholic priest in February.

In December another priest was shot and wounded.

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Vietnam War victims found in jungle

AN 82-year-old man and his 41-year-old son have been found living in a forest in central Vietnam after they went missing during the country's war with the US, an official says.

The older man could communicate a little in the Cor ethnic minority language, but his son only knew a few words, an official at Tay Tra commune in Quang Ngai province said on Thursday on condition of anonymity.

Ho Van Thanh was last seen running into the woods with his then-infant son Ho Van Lang after a bomb exploded in his home, killing his wife and two other children in 1973, newspaper Dan Tri reported.

They were discovered when two people from a nearby village ventured 40 kilometres into the forest looking for firewood and spotted the two men's tree house. The villagers reported the find to local authorities who recovered the pair on Wednesday.

The two men survived by cultivating forest vegetables and hunting animals. They had no contact with the outside world, the report said.

Photographs in local media showed the younger man with dishevelled hair wearing a loin cloth made from tree bark.

Thanh, who was fighting for North Vietnam when the bomb exploded, left behind another son, Ho Van Tri.

"My father is very weak and the doctors are taking care of him, but my brother's health is fine even though he looks very thin," said Tri, who was six months old when his father fled into the jungle.

Thanh is being treated at a medical centre while his son is being looked after by his nephew, Ho Ven Bien.

"My uncle doesn't understand much of what is said to him, and he doesn't want to eat or even drink water," Bien said.

"He's very sad. He doesn't say anything now," he said. "We know he wants to escape my house to go back to the forest so we have to keep an eye on him now."

Hoang Anh Ngoc, chairman of the district, said local authorities had visited Thanh at the medical centre and given him food.

"I asked officials to keep a close eye on the two men to make sure they don't escape back into the forest," he said.

The discovery has shaken the small community, which thought the two men dead.

"No one could imagine Thanh and his son could live 40 years in isolation in the hard conditions of the jungle," said villager Ho Van Xanh.

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Peter Garrett's talents wasted: Blundell

Senate candidate James Blundell (R) says Peter Garrett's intellect was wasted in politics. Source: AAP

COUNTRY music star James Blundell says fellow artist Peter Garrett's intellect was wasted in politics.

But the lead Queensland Senate candidate for Katter's Australian Party has vowed his celebrity status won't be exploited, in the same way Labor used the former Midnight Oil frontman.

"I think Peter Garrett is the greatest misuse of intellect I've seen in my adult, politically active lifetime," he told AAP.

"The decision makers and policy makers should have been listening to what Peter was saying because the reason Peter Garrett and Midnight Oil became incredibly famous was because they really, really connected with their peers, and half a generation above and below."

Blundell says he and Mr Garrett chatted about the shaved-head rock star's future career as they sat side-by-side at country music legend Slim Dusty's funeral in 2003.

He also feels that Mr Garrett, who is retiring from politics at this election, was unfairly tied to the failed pink batts scheme.

"To give him pink batts is the stupidest thing I've seen in my life," he said.

The 28-year music veteran and Golden Guitar winner says his own celebrity status won't be exploited, after persistent pleas from party leader Bob Katter for him to stand.

"If a celebrity is there for the glory of it, they will be badly hurt," he said.

Blundell called State of Origin coach and rugby league great Mal Meninga for advice, and to ask why he famously aborted a 2001 run for the ACT parliament.

"Mal is a bloke I absolutely love and he was one of the people ... I had a list of people to call because I wanted to know what happened," Blundell said, adding he hoped not to "go the Mal route".

Blundell also admits to being in favour of gay marriage, unlike many in his party.

"We have an agreement to disagree or to keep that whole issue away from the top 20 important things to discuss," he said.

"We don't see eye-to-eye on it 100 per cent."

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Schools key in Corangamite: Shorten

Senior minister Bill Shorten believes Labor's battle for the seat of Corangamite will be tough. Source: AAP

LABOR can win the election, senior minister Bill Shorten says, but he's less confident it will retain its most marginal seat.

Campaigning in the Victorian seat of Corangamite, which the ALP's Darren Cheeseman holds by only 0.3 per cent, Mr Shorten told students the government could win the election.

"Bookmakers have us not as the favourite in a two horse-race," Mr Shorten said at a Geelong school.

"Bookmakers can be wrong. It's four weeks to go.

"We can win. That's for sure."

When asked if Labor could retain Corangamite, Mr Shorten qualified his response by saying the ALP would prevail in the seat if the election was fought on education policy.

"Corangamite is an electorate which has got a great future," Mr Shorten said.

"If this is an election that is fought on education policies, Darren Cheeseman will remain the member for Corangamite."

Mr Cheeseman said he would have to work hard to show voters how Labor was addressing their concerns.

"This going to be a very close contest here. Every single vote will count," Mr Cheeseman said.

"If we campaign hard ... I think we've got every chance of winning this seat again."

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Greens pledge big cut for small business

The Greens say they would support a bigger corporate tax cut, but only for small businesses. Source: AAP

THE Australian Greens want to cut corporate tax rates harder and faster than the coalition - but only for small businesses.

Opposition Leader Tony Abbott has confirmed a coalition government would lower the 30 per cent tax rate to 28.5 per cent from July 1, 2015 for all businesses.

Greens leader Christine Milne parried with a promise to cut the rate to 28 per cent but only for businesses with an annual turnover under $2 million.

"This is the kind of injection that small business has really been looking for," she told reporters in Canberra.

"Not only is it more generous to small business, it would start a year earlier."

The Greens plan would benefit 610,000 small business and cost $1.75 billion over four years, compared with $5 billion for the coalition cut.

Mr Abbott has said the company tax cut would offset his plan for a 1.5 per cent levy on big business to pay for his wage-replacement paid parental leave scheme.

The Greens also want to put a levy on big business to cover a similar leave proposal.

However, Senator Milne said big business could afford to pay more tax and didn't need any offset.

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BoE ties rate rise to fall in unemployment

THE Bank of England (BoE) has made a major break with policy, insisting that any rise in its record-low key interest rate would be tied to a drop in Britain's unemployment rate.

The BoE said it "intends not to raise Bank Rate from its current level of 0.5 per cent at least until ... the unemployment rate has fallen to a threshold of seven per cent".

Britain's unemployment rate is 7.8 per cent.

The new governor of the bank, Mark Carney, noted on Wednesday that "a renewed recovery is now under way" for Britain's economy.

The BoE added that its Monetary Policy Committee stood ready to provide the economy with more cash stimulus while the unemployment rate remains above seven per cent - and despite a recent recovery of British growth.

The Bank of England described its pledge over interest rates and stimulus as "explicit guidance regarding the future conduct of monetary policy".

Markets had widely expected some form of so-called "forward guidance" being introduced by Canadian national Carney, who became head of the BoE at the start of July.

The Bank of England's main interest rate, which has stood at 0.50 per cent since March 2009, is closely tied to borrowing costs offered by the retail banking sector.

The BoE's record-low rate has resulted in cheap loans for home owners but poor returns for people with deposited savings.

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Turkey's ex-army chief gets life over coup

A Turkish court has sentenced ex-military chief Ilker Basbug to life in prison for plotting a coup. Source: AAP

ANGRY protests have erupted in Turkey after a former army chief and 16 others were sentenced to life in prison following a high-profile coup plot trial.

The verdicts sparked scenes of anger outside the court on Monday, and thousands of protesters clashed with police in the streets.

The trial, in which 275 people were accused of plotting against the Islamic-rooted government, was seen as a key test in Prime Minister Recep Tayyip Erdogan's showdown with secularist and military opponents during his decade-long rule.

Charges against defendants ranged from membership of an underground "terrorist organisation" dubbed Ergenekon to arson, illegal weapons possession, and instigating an armed uprising against Erdogan and his Justice and Development Party (AKP).

Ex-military chief Ilker Basbug, several other army officers, as as well as reporter Tuncay Ozkan and lawyer Kemal Kerinsiz, were all sentenced to life in prison.

"The final say belongs to the people," local media quoted Basbug as saying.

"Those who have always stood by ... justice have a clear conscience. I am one of those people."

Most other defendants received jail sentences, while 21 were acquitted.

About 10,000 people protested outside the court complex after the verdicts were announced, with some throwing stones at riot police who responded with water cannon, tear gas and rubber bullets.

In Ankara, hundreds of people also marched in demonstration at the court ruling, chanting: "We are soldiers of Mustafa Kemal Ataturk," a reference to modern Turkey's founder.

Speaking ahead of the verdicts, journalist and opposition MP Mustafa Balbay, who was later handed 34 years and eight month sentence, said the trial was "purely political".

The heavy sentences handed down to journalists sparked criticism from the Organisation for Security and Cooperation in Europe (OSCE), accusing European Union hopeful Turkey of violating free speech.

The verdicts, which were expected to be appealed, come after Turkey was rocked by mass protests in June that presented Erdogan's government, seen as increasingly authoritarian, with its biggest public challenge since it came to power.

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Rate impact stymied by election campaign

The Reserve Bank of Australia has cut the cash rate to a new all-time low of 2.5 per cent. Source: AAP

BUSINESS groups are warning the latest interest rate cut won't have an immediate impact because of uncertainty generated by the federal election campaign.

The Reserve Bank of Australia (RBA) cut the cash rate by 25 basis points to a new all-time low of 2.5 per cent, as widely tipped by economists.

Three of the major banks have already passed on the reduction in full - although Westpac's cut was by 28 basis points to a standard variable rate of 5.98 per cent.

Many smaller lending institutions also matched the central bank.

People with an average $300,000 mortgage will be around $45 a month better off on their home loan repayments.

RBA governor Glenn Stevens had previously noted the inflation outlook could provide some scope to ease policy further, should that be required to support demand.

"At today's meeting, and taking account of recent information on prices and activity, the board judged that a further decline in the cash rate was appropriate," he said in a statement.

Treasurer Chris Bowen says the rate cut is good news for families and business.

But shadow treasurer Joe Hockey said if the economy was performing well the RBA wouldn't have moved.

"It's not a great credit to this government at all," Mr Hockey told reporters in Canberra.

Mr Bowen pointed out that in past elections the coalition has gone to the Australian people with a solemn pledge that interest rates would always be lower under a coalition government.

"Now all of a sudden, because interest rates are at record lows under a Labor government, we have Mr Hockey saying this is somehow a bad thing," he told reporters in Sydney.

"How negative has this opposition become?"

However, Mr Hockey said when former Liberal leader John Howard made that pledge in October 2004 economic circumstances were different with unemployment at 5.1 per cent rather than 5.7 per cent now and economic growth was four per cent instead of 2.5 per cent.

Then the cash rate was 5.25 per cent compared with 2.75 per cent now.

Yasser El-Ansary, general manager Institute of Chartered Accountant Australia, said the rate cut confirmed that business in the non-mining sectors was continuing to do it tough.

"While the announcement will help drive confidence for businesses and households, the current election campaign does mean people will continue to be cautious about spending until the election result has been decided," he said in a statement.

Australian Chamber of Commerce and Industry chief executive Peter Anderson said assistance to help the economy cannot rely on interest rates alone.

"Clearly other areas of economic management are falling well short of the mark and dragging on confidence," he said in a statement pointing at the federal government.

"That includes not delivering on budget undertakings, poorly targeted spending, and a series of tax increases."

Australian Industry Group chief executive Innes Willox hoped the rate cut would result in further falls in the exchange rate to help lift business competitiveness.

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Cochlear looking for success in Nucleus 6

Cochlear says its new Nucleus 6 implant will be the big driver behind its 2014 financial results. Source: AAP

HEARING implant maker Cochlear says its "game-changing" Nucleus 6 device will be the big driver behind its 2014 financial results.

The company says rollout of the device, which it describes as the most advanced cochlear implant sound processor ever released, is underway in Europe after its sale in the region was recently approved.

Regulatory approvals in other jurisdictions, including the key United States market, are expected during the year.

"We do think that how we go with Nucleus 6 will be important in terms of how fiscal 2014 will look, both in terms of various regulatory approvals and our ability to execute on these launches," Cochlear chief executive Dr Chris Roberts told reporters on Tuesday.

"And then it's how well we get traction on these truly game-changing features in this product."

The Nucleus 6 system has five times the processing power of the Nucleus 5 and can automatically process sounds according to the sound environment of the patient, such as speech, noise, music, quiet or wind.

Dr Roberts said it was the most advanced cochlear implant sound processor ever released in terms of hearing performance and usability.

Cochlear on Tuesday posted a net profit of $132.6 million for the 2012/13 financial year, up from $56.8 million in the previous year.

Its 2011/12 result was pulled back by $101.3 million in after-tax expenses linked to a recall of the CI500 series implant in September 2011.

The latest result was in line with guidance provided in June, when the company flagged weakness in its key market in the United States.

Cochlear subsequently lost nearly a fifth of its market value as investors dumped shares.

Dr Roberts on Tuesday said a record number of patients globally had received a Cochlear implant over 2012/13 and the company had focused on bringing new products to market, especially Nucleus 6.

But over the year, sales in the Americas had fallen four per cent to $284.4 million.

Sales of sound processor upgrades to existing cochlear implant recipients in the Americas were down $17.0 million ahead of the release of the Nucleus 6.

Sales in Europe, the Middle East and Africa dropped one per cent to $283.0 million and sound processor upgrade sales were also down ahead of the release of the Nucleus 6.

But the Asia Pacific region was the standout performer, with sales jumping 20 per cent to $147.6 million on the back of a large tender sale to China.

Shares in Cochlear were 41 cents higher at $59.56 at 1316 AEST on Tuesday.

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European stocks push higher

EUROPE'S main stock markets have mostly risen as traders responded to positive economic data and the latter stages of the current earnings season.

London's FTSE 100 index of leading shares dipped 0.02 per cent to 6,618.46 points approaching midday on Tuesday, as heavyweight miners retreated in value, offsetting news of a strong rebound for British manufacturing.

Frankfurt's DAX 30 advanced 0.30 per cent to 8,423.63 points after official data showed that German industrial orders had risen by 3.8 per cent in June.

The CAC 40 in Paris climbed 0.17 per cent to 4,056.86 points.

"After a decent run up in recent weeks, blue-chip mining stocks have cooled as lower metals prices take the steam out of the rally," said Matt Basi, head of UK sales trading at CMC Markets.

The euro climbed to $US1.3278 from $US1.3255 late in New York on Monday.

The US dollar edged up to 98.25 yen from 98.22 yen.

Sterling was steady against the European single currency, while it jumped to $US1.5376 from $US1.5352 on Monday.

Britain's manufacturing output rebounded with a bang in June, official data showed on Tuesday, providing further evidence of the country's broad-based economic recovery.

Output jumped 1.9 per cent in June from May, when it had fallen by 0.7 per cent, the Office for National Statistics (ONS) said in a statement.

Traders also digested further earnings updates, which along with improving European and US economic data, have helped to lift stock markets over the past month.

The DAX and CAC indices have each rallied by about 8.0 per cent in value since the start of July.

On Tuesday, shares in InterContinental Hotels Group (IHG) jumped 3.0 per cent to 1,966 pence after the company announced a 25 per cent increase in first-half net profits thanks to a strong showing by its US operations.

Profit after tax jumped to $US340 million ($A381.98 million) in the six months to the end of June compared with net earnings of $US271 million in the first half of 2012, said the company that owns the InterContinental, Crowne Plaza and Holiday Inn hotel chains.

IHG added that it would pay shareholders a special dividend totalling $US350 million.

Asian stock markets closed mixed on Tuesday as investor concerns lingered over a potential tapering of US monetary stimulus, analysts said.

Hong Kong was dragged lower by a near five-per cent tumble for the share price of heavyweight HSBC Holdings.

On Monday, the banking giant announced a 22-per cent rise in half-year net profit on lower costs and falling bad-debt charges, slightly below analysts' estimates.

It warned that slower Chinese growth was affecting its main market Asia.

Elsewhere on Tuesday, the price of gold slipped to $US1,293.12 an ounce on the London Bullion Market from $US1,304.75 on Monday.

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Breastfeeding 'lowers disease risk'

MOTHERS who breastfeed their children may have a lower risk of developing Alzheimer's disease, according to a new study.

The report, published in the Journal of Alzheimer's Disease, suggests that the link may be to do with certain biological effects of breastfeeding and that longer periods of breastfeeding lowered the overall risk.

Previous studies have established that breastfeeding can reduce a mother's risk of other diseases but until now little has been done to examine the impact of breastfeeding duration on Alzheimer's risk.

Dr Molly Fox, from the department of biological anthropology at the University of Cambridge, led the study.

She said: "Alzheimer's is the world's most common cognitive disorder and it already affects 35.6 million people. In the future, we expect it to spread most in low and middle-income countries.

"So it is vital that we develop low-cost, large-scale strategies to protect people against this devastating disease."

Although researchers used data gathered from a very small group of 81 British women, they say they observed a highly significant and consistent correlation between breastfeeding and Alzheimer's , although the connection was much less pronounced in women who already had a history of dementia in their family.

The findings may point towards new directions for fighting the global Alzheimer's epidemic - especially in developing countries where cheap, preventative measures are desperately needed.

More broadly, the study opens up new lines of inquiry in understanding what makes someone susceptible to Alzheimer's in the first place.

It may also act as an incentive for women to breastfeed, rather than bottle-feed - which can have wider health benefits for both mother and child.

The study argues that there may be a number of biological reasons for the connection between Alzheimer's and breastfeeding.

One theory is that breastfeeding deprives the body of the hormone progesterone, compensating for high levels of progesterone which are produced during pregnancy.

Progesterone is known to desensitise the brain's oestrogen receptors, and oestrogen may play a role in protecting the brain against Alzheimer's.

Another possibility is that breastfeeding increases a woman's glucose tolerance by restoring her insulin sensitivity after pregnancy.

Pregnancy induces a natural state of insulin resistance and Alzheimer's is characterised by a resistance to insulin in the brain.

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Hopes rise of eurozone recovery: survey

THE eurozone recession seems to be fading out at last, with key growth indicators giving a surprisingly strong showing, economics experts say.

A key leading indicator of activity, the Markit Eurozone Composite Purchasing Managers Index for July, switched to give a growth reading for the first time for 18 months.

The index logged 50.5 points, up from an initial estimate of 50.4 and above the 50-point watershed which signals the difference between a trend of shrinking activity or growth.

The reading for the services sector was 49.8 points, up from an initial estimate of 49.6, after manufacturing surprised with a strong 50.3-point reading.

The survey of sentiment among thousands of purchasing managers, the people responsible for buying materials and products for businesses, is widely seen as a reliable gauge of economic expansion.

In Germany, rates of increase in manufacturing output and service sector activity hit 17- and five-month highs respectively, London-based Markit said on Monday.

The combines score for Germany in July was 52.1 points, comfortably back in the black.

The other main national economies of France, Italy and Spain each registered a further easing of contraction, with solid growth among manufacturers.

"The final Output Index reading of 50.5 confirms a welcome return to growth for the eurozone economy at the start of the third quarter, raising hopes that the region can finally claw its way out of its longest-running recession," said Rob Dobson, Senior Economist at Markit.

"Granted, the euro area has experienced false dawns before - but the improvements in confidence and other forward-looking indicators warrant at least some optimism for the outlook this time around."

The data comes on the back of a first, minuscule drop in overall numbers of unemployed people for more than two years - by 24,000 to 19.26 million in June.

The eurozone has been seen as the main drag on the world economy over the past couple of years as austerity policies adopted to tame the debt crisis have crippled growth.

"The labour market remains the main bugbear of the eurozone, as rising joblessness hurts growth and raises political and social tensions," Dobson added.

"But even here there was some better news, with the rate of job cutting easing to a 16-month low."

The news was not all good on Monday with the European Union's Eurostat data agency flagging a fall for eurozone retail sales in June of 0.5 per cent compared to May.

Germany, the EU's biggest economy, saw retail sales fall 1.5 per cent. Eurostat gave no explanation of the figures which tend to be volatile and heavily influenced by seasonal factors.

However, the anticipated impact of growing business confidence on consumer spending was still enough for analysts to tip a stable recovery.

"The hope for the eurozone is that current rising confidence encourages businesses to increasingly pare back their job cutting and become more prepared to invest, and also encourages consumers to spend more, said IHS Global Insight's Howard Archer.

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Bomb blast in Philippines city kills six

A POWERFUL bomb has exploded at the centre of the southern Philippines city of Cotabato, killing six people and wounding more than two dozen others, police say.

The explosive device was placed in a vehicle - either a motorcycle or a van - parked near a hospital and a school during the afternoon rush hour on Monday, city police chief Senior Superintendent Rolen Balquin said.

Cotabato photographer Mark Navales, who was on the scene within half an hour of the blast, described seeing a blood-spattered road strewn with charred bodies and smouldering vehicle parts.

"I saw three mangled human remains, one of them burnt," he told AFP.

"I have never before seen (the effects of) such a powerful blast in Cotabato," he added.

The attack came a month after after the United States, Australia and Canada warned their citizens against travelling to Cotabato and two other southern cities over fresh threats of terrorism.

Those killed were motorists passing through Sinsuat Street, the main highway in Cotabato that is lined by commercial establishments.

At least 26 others were wounded, including police officers in a vehicle that was passing through the area, he said.

No group immediately claimed responsibility.

Mujiv Hataman, governor of a regional autonomous area whose office is 800 metres away from the blast site, said the explosion rattled his windows and shattered a quiet afternoon just before Muslims were to end their Ramadan fast.

"The blast was heard kilometres away. It was powerful," he said.

The late-afternoon explosion damaged at least four vehicles and triggered a fire that engulfed a nearby mortuary and a tyre repair shop, he added.

Cotabato is a mixed Muslim-Catholic city on the main southern island of Mindanao, where Muslim insurgents have waged a decades old rebellion that has claimed 150,000 lives.

It was the second bombing to hit Mindanao in 10 days.

A powerful blast at a restaurant packed with doctors and pharmaceutical salesmen left eight people dead on the Mindanao city of Cagayan de Oro on July 26.

The Cotabato explosion also came just shortly after the Bangsamoro Islamic Freedom Fighters, a breakaway rebel faction, warned of intensified attacks against the government targets.

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Abbott the 'sworn enemy' of divisiveness

UP on stage stood the tired, down below were the hungry.

Prime ministerial hopeful Tony Abbott has capped off a long first day on the campaign trail with a visit to western Sydney, where local Muslims gathered to break their Ramadan fast for the day.

The seminary drop-out and staunch Catholic said Monday's iftar dinner at Auburn was a perfect microcosm of ethnically, culturally and religiously diverse Australia.

"There is unity in our diversity," Mr Abbott said.

The opposition leader's arrival sparked a respectable round of applause, but in a room full of people who've been waiting till sunset for a bite, food was always going to be the main event.

One woman appeared unfazed by the luminaries around her - Philip Ruddock, Jason Clare and Australian Grand Mufti Ibrahim Abu Mohammed were all in the audience - and chose to bag up fellow guests' leftovers rather than press the flesh.

If Prime Minister Kevin Rudd wants voters to see him as a negative purveyor of three-word slogans, the coalition leader wants us to know he's the man to end the gender debates and class warfare that have captivated Canberra.

"I am the sworn enemy of anyone who seeks to divide Australian from Australian over things that can't readily be changed: over class, over gender, over birthplace and particularly over faith," he said.

"Our greatest days are ahead of us."

But his pitch to western Sydney won't rest solely on unity.

Mr Abbott told the crowd he was committed to cutting red tape, lowering taxes and ensure the WestConnex road project goes ahead "as quickly as is humanly possible".

Auburn's Liberal Mayor Ned Attie said Mr Abbott's tribute to diversity and acceptance struck the right chord.

"It appealed to what the people are about," he told AAP.

He said asylum seeker policy remained close to locals' hearts.

"Auburn has traditionally been considered a refugee welcome zone," he said.

"A lot of people come to me and say, look, we came as refugees, we'd like to see others come the right way, not just show up on the doorstep."

Local Wally Elriche told AAP Mr Abbott had earned his respect just by showing up.

"The fact that he made his way down here, it shows a lot," he said.

And the talk of tolerance?

"Oh, that's a bunch of bulls***, just to get some votes," he laughed.

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UK construction sector optimism grows

A SURGE in house building spurred a new wave of optimism in the UK construction sector as it achieved its best performance for three years, the latest figures show.

The reading of 57 on the closely-watched Markit/CIPS purchasing managers' index was the best since June 2010 and a steep rise from 51 recorded in June. A reading of 50 separates growth from contraction.

The figures add to hopes of a sustained recovery in the sector after official figures showed it grew 0.9 per cent in the second quarter of the year, though it remains 16.5 per cent off pre-recession levels.

Construction has been buoyed by flagship initiatives including Funding for Lending, which encourages banks to offer mortgages, and Help to Buy, which offers loans and guarantees to help buyers with small deposits.

The survey results were the third month in succession the construction index was above the no-change level of 50.

Residential building activity was by far the strongest area as it recorded its sixth month of improvement in a row.

But there was also a return to expansion for civil engineering, while commercial construction output rose at its strongest pace since May 2012.

Firms attributed the overall improvement to a marked improvement in demand for housing alongside a general rise in spending amid signs of an improving UK economy.

Optimism about the year ahead reached its strongest level since May 2010, leading to a rise in employment levels for the second month running.

"July's survey highlights a new wave of optimism across the UK construction sector, with companies reporting a pace of expansion in excess of anything seen over the past three years," said Tim Moore, senior economist at survey compiler Markit.

David Noble, chief executive at the Chartered Institute of Purchasing and Supply, said homes are the "beating heart" of the rapid recovery in the construction sector, which is also backed by a solid expansion in civil engineering and commercial activity.

He said confidence was the highest since the coalition's austerity policies began in 2010, suggesting growth could be sustained into the third quarter.

"Of critical importance to the construction sector going forward is that the economy and the housing market sustain their recent improvement over the coming months, and that this increasingly stimulates building work," said Howard Archer, chief UK and European economist at IHS Global Insight.

"It currently appears that housing market activity is really stepping up a gear, while the Government's Help to Buy initiatives in the budget to boost housing market activity was also welcome news for house builders."

But he said construction continued to be constrained by the impact of austerity measures on public sector projects, while it may take some time for private commercial activity to show a marked pick-up.

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Rudd, Abbott tussle over election debates

Prime Minister Kevin Rudd says he's prepared to debate Tony Abbott every week. Source: AAP

PRIME Minister Kevin Rudd is so keen to debate Opposition Leader Tony Abbott he wants to do it on Monday and every week after that.

"I'm in like Flynn, I'm up for it," Mr Rudd told reporters in Canberra on Sunday.

"I hope Mr Abbott is as well."

But Mr Rudd may have to wait a week for the first leaders' debate.

Liberal Party national secretary Brian Loughnane has written to his Labor counterpart, George Wright, asking for the first election debate next Sunday at the National Press Club in Canberra.

The prime minister challenged Mr Abbott to a debate on Monday evening, to be hosted by Sky News, after announcing the election date of September 7.

He said he was prepared to have a formal debate with Mr Abbott every week of the campaign.

Mr Abbott said he was open to debates.

But he was coy on whether he would accept the invitation for Monday, referring journalists instead to Mr Loughnane's letter.

The letter suggests a debate next Sunday in Canberra followed by two community forums - the first at Rooty Hill RSL, in Sydney's west, and then one in Brisbane.

"The Liberal Party believes this is the most important election in a generation," Mr Loughnane wrote.

"Therefore it is appropriate that a number of forums be held in different formats to allow Australians to ask their own questions directly of the leaders on the issues that matter most to them."

Former prime minister Julia Gillard and Mr Abbott also held community forums at the Rooty Hill RSL and Brisbane during the 2010 election campaign.

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Rudd 'no friend to NT', says Giles

Labor has been no friend to the Northern Territory, says Chief Minister Adam Giles. Source: AAP

THE federal Labor government has been no friend to the Northern Territory, says Chief Minister Adam Giles.

Mr Giles has welcomed an early September election date, criticising Prime Minister Kevin Rudd's "erratic leadership" which he says has failed to deliver vital road improvements or fair education funding for NT schools.

"While he's neglected the territory ... Labor has no plan to manage the nation's economy, and will surely hit families and businesses with more taxes after the election," Mr Giles said in a statement on Sunday.

There are about 3000 asylum seekers being held in detention in Darwin, which Mr Giles said showed Labor had lost control of Australia's borders.

Other key issues for the NT are schools funding and the coalition's Northern Australian development plan.

Mr Giles refused to sign up to the Gonski education reforms before the election, and this week he backed a coalition plan which he said would cost the Territory nothing and allow it to spend money independently.

He called for Territorians to vote out the ALP's "tired" incumbent Member for Lingiari, Warren Snowdon, who "has failed to bring prosperity to our remote communities".

Mr Snowdon holds his seat by a margin of 3.7 per cent, and will probably be a casualty of the NT's rising discontent with federal Labor.

His enormous seat of Lingiari covers 99.8 per cent of the Territory, along with Christmas and the Cocos (Keeling) islands, with a 40 per cent indigenous population.

He is being challenged by the CLP's Tina MacFarlane, a cattle station owner.

The urban Darwin and Palmerston seat of Solomon is the only other seat in the NT and is expected to remain with Natasha Griggs of the CLP.

The two NT senate seats are up for re-election this year, and are equally divided between the CLP and Labor.

Trish Crossin was dumped by former prime minister Julia Gillard earlier this year when she parachuted in former Olympian Nova Peris - who wasn't a member of the ALP when her pre-selection was announced.

Despite wide dissatisfaction over the ousting of Ms Crossin and what's seen as a paternalistic meddling in territory politics, Ms Peris will most likely keep the seat for Labor.

The second senate seat is held by Nigel Scullion of the CLP, who will also most likely keep it.

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Soldiers, judge among six killed in Iraq

ATTACKS in Iraq have killed six people, including three soldiers and a judge as authorities struggle to contain the worst violence to hit the country in five years.

Militants opposed to the Iraqi government frequently attack security forces and other government employees with both bombs and gunfire.

The soldiers were killed by a roadside bomb that exploded near their patrol in the northern province of Nineveh on Sunday.

The blast, which struck about 60km south of the provincial capital Mosul, also wounded four soldiers.

And another bombing targeted a police patrol farther south, wounding three policemen.

In Tikrit, north of Baghdad, a car bomb exploded near a judge's house, killing him and severely wounding his wife, while another blast in the Iraqi capital itself killed one person and wounded five.

And gunmen killed a man and wounded his son west of the northern city of Kirkuk.

The attacks came a day after violence killed 24 people, including nine soldiers.

Violence has increased markedly this year, especially since an April 23 security operation at a Sunni anti-government protest site that sparked clashes in which dozens died.

Protests erupted in Sunni-majority areas in late 2012, amid widespread discontent among Sunnis who accuse the Shi'ite-led government of marginalising and targeting their community.

Experts say Sunni anger is the main cause of the spike in violence this year.

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