Girl reporter stuns Chinese officials

CHINESE officials accustomed to the tame questions of a compliant state press have been caught out by a plucky 11-year-old reporter during the country's sensitive Communist Party congress.

Sun Luyuan, a Beijing sixth-grade student, shook up one of the tightly-controlled party meetings on Friday on the congress's sidelines with a question that put officials on the spot over China's miserable food-safety record.

Noting that a steady stream of scandals and health scares involving tainted or unsafe food products had particularly affected students, leaving many sickened in various incidents, Sun asked why China can't clean up its act.

"I love snacks, but I don't dare to eat snacks now because we see so many reports these days of problems with food products," Sun asked high-level officials during a congress delegate meeting, according to state-run China News Service.

During the meeting at Beijing's cavernous Great Hall of the People, Sun, who works for the Chinese Teenager News, continued by asking "why are these kinds of food products available for purchase?"

"As many primary and middle school students eat our lunches at school, what can you do to put us at ease over food safety?" she asked.

The Communist Party is presenting a tightly-scripted image of national unity for the week-long congress that opened on Thursday.

Held every five years, the congress will end next Wednesday with the unveiling of a new top leadership line-up widely expected to be headed by Vice President Xi Jinping, who will lead for the next ten years.

Ma Kai, a top official in China's cabinet who presided over Friday's meeting, passed the question to Education Minister Yuan Guiren, the China News Service said.

Yuan offered a stock official response pledging the government was addressing the situation and putting proper safety measures in place, a line repeated for years even as the scandals have persisted.

In 2008, China was rocked by one of its biggest-ever food safety scandals when the industrial chemical melamine was found to have been illegally added to dairy products to give the appearance of higher protein content.

At least six babies died and another 300,000 became ill after drinking the tainted products.

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Madonna fan guilty of resisting arrest

A FORMER firefighter with a crush on Madonna has been convicted of resisting arrest outside her former New York City apartment building as he spray-painted poster boards with love notes.

A jury delivered its verdict on Friday in Robert Linhart's trial. He could face up to a year in jail.

Defence lawyer Lawrence LaBrew told the New York Post that Linhart will appeal.

Linhart was arrested in September 2010. Police say he parked his SUV outside the singer's Manhattan apartment, laid out a tarp and wrote out such messages as "Madonna, I need you".

Jurors told the Post they felt it was fine for Linhart to express himself to the Material Girl, but they said they believed police testimony that he resisted arrest by flailing his arms.

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PM concerned about US 'fiscal cliff'

PRIME Minister Julia Gillard stands by forecasts for the budget to return to surplus but says she is concerned about the implications for the Australian economy from the "fiscal cliff" in the United States.

The so-called fiscal cliff - the predicted effect of a combination of legislated tax increases and spending cuts - if not averted, is expected to drive the US back into recession next year.

There are also rising fears that if the world's biggest economy tanks again, others could be dragged over the edge with it.

Ms Gillard, who has been meeting with about a dozen world leaders in Bali, said on Friday she was concerned about the implications for global finances and the Australian economy.

But the prime minister nsisted that her government would still deliver a budget surplus next year as promised, despite the worrying signs coming out of the US and the economic slow-down in Europe.

"Of course we are concerned about the fiscal cliff in the US and we are concerned that if this matter isn't resolved it will have severe implications for the economy of the United States and that's got implications for the global economy including our own," Ms Gillard said on Friday.

"But I'm not going to deal with hypotheticals about our budget position."

The Mid-Year and Economic and Fiscal Outlook (MYEFO), released last month, has forecast a $1.1 billion surplus in 2012/13, with improving surpluses to 2015/16.

"We've got in there the projections that treasury believes are appropriate for the Australian economy and we've made savings in there, hard savings, to bring the budget to surplus," Ms Gillard said.

"We stand by the work that was done for the Mid-Year and Economic and Fiscal Outlook."

US President Barack Obama is set to begin negotiations with Congress soon in an effort to reach a budget compromise over the tax increases and spending cuts that would result in the fiscal cliff, and which are to come into force on January 1.

However, financial markets around the globe slid for a second day in a row on Friday over doubts that the issue will not be resolved in time.

At 1200 AEDT on Friday, the benchmark S&P/ASX200 index was down 32.3 points, or 0.72 per cent, at 4,451.5 points, while the broader All Ordinaries index had fallen 29.9 points, or 0.66 per cent, to 4,472.3 points.

On Wall Street on Thursday, the Dow Jones Industrial Average lost 120.95 points, or 0.94 per cent, to 12,811.78 points.

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Picasso sells for $40m in New York

AN erotically charged Picasso oil painting of his mistress alongside tulips and fruit has sold for $US41.5 million ($A40m) on an otherwise anemic night for high-end art in New York.

"Nature morte aux tulipes," painted in 1932, was the star of Sotheby's Impressionist and modern art sale in Manhattan on Thursday.

The pre-sale estimate for the work had been between $US35m and $US50m.

The painting depicts the head of Marie-Therese Walter, who was Picasso's lover and famous muse, poised over a suggestive flower arrangement.

Its sale was one of the few bright spots for Sotheby's, with 30 per cent of lots failing to sell and the total haul of the evening amounting to $US163m - below the low end of the overall $US169-245m estimate.

This followed a similar performance at the Christie's auction on Wednesday.

Another of the Marie-Therese series offered by Sotheby's, Femme a la fenetre (Marie-Therese), sold for $US17.2m, inside the $US15-20m estimate.

Other successes included the $US12.1m paid for Champ de ble by Claude Monet.

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Pedophile evidence in Rahma inquest

A SUSPECTED pedophile who lived near missing Sydney toddler Rahma El-Dennaoui deposited $65,000 in his account eight days after the little girl vanished, an inquest has heard.

The man, who cannot be named for legal reasons, talked on the phone to another suspected pedophile the morning after Rahma disappeared from her Lurnea home in Sydney's southwest in the early hours of November 10, 2005, Glebe Coroners Court heard on Thursday.

But the officer in charge of the investigation, Detective Sergeant Nick Sedgwick, said there was no evidence a paedophile ring was operating in the area.

Under questioning from David Evenden, representing Rahma's father Hosayn El-Dennaoui, Det Sgt Sedgwick said police had seized the man's caravan for forensic analysis 18 months after Rahma disappeared.

Asked why this hadn't ben done earlier, Det Sgt Sedgwick said, "There wasn't sufficient evidence to put all our eggs, or at least a lot them, towards (him)".

The court heard there was evidence the man had a "liking" for young girls and had enticed children into his home in the past.

No evidence was found in the caravan, but bank records showed the man had deposited $65,000 in his account eight days after Rahma disappeared.

Det Sgt Sedgwick said the bank had "hit a brick wall" when investigating how that sum of money came into the man's account.

The inquest also heard the man's phone records showed that the day after Rahma disappeared, he talked to another man believed to have previously sexually assaulted a six-year-old child.

But the evidence in relation to that man was "loosely based intelligence from an anonymous source", Det Sgt Sedgwick said.

"No evidence ever came forward that a pedophile ring ever existed," he said.

The inquest continues before Deputy State Coroner Sharon Freund.

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Missing Perth man worries police

THE family of a Perth man who has "disappeared off the face of the earth" hold grave fears for his safety after a fruitless month-long police search.

Antony Bryan Colquhoun, 26, was last seen at his home in Leake Street, Bayswater, at about 11pm (WST) on October 12 and has not contacted family or friends since.

His mother Julie on Thursday made a desperate plea for him to get in touch if he was able.

"He has just disappeared off the face of the earth - and that is impossible," his mother said.

"He was a very innocent boy, and it is inconceivable he could be looking after himself.

"He would have also run out of medication. You cannot describe how you feel."

A worrying message he posted on Facebook before he went missing has added to the family's fears.

"I am fearing the worst - it is quite serious now," brother Aiden said.

Mr Colquhoun was last seen wearing a bright blue T-shirt with an Atari computer logo and wearing black plastic thick-rimmed glasses.

Police say Mr Colquhoun has a fair complexion and is 182cm tall with a medium build, short brown hair with a distinctive patch of white hair on one side, and brown eyes.

Anyone who has information on Mr Colquhoun's whereabouts is asked to call police on 131 444.

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Camilla makes a good impression

SEASONED royal-watcher Neville Condron says Camilla, the Duchess of Cornwall, has made a good impression on her first visit to Australia.

Mr Condron, who has met several queens, princes and princesses from various countries, says he's pleased there haven't been comparisons with the late Princess Diana, who was a favourite with Australian crowds.

The duchess has been warmly welcomed at official events and has happily chatted with the small crowds that have turned out to greet her since arriving in Australia on Monday.

But the crowd numbers have been far from the thousands that flocked to greet Diana, or even the Queen, during their visits to Australia.

Mr Condron shook hands with both Prince Charles and his first wife in 1985.

"I've been pleased that the comparisons just aren't an issue," he said outside the Victorian College of the Arts Secondary School, where the royal couple watched a performance by school children.

"Camilla just seems so relaxed, people are warming to her and I think it's been long enough for memories to fade a little bit and I think she's off to a really good start.

"I think Australians would like her sense of humour and enjoy the way she dresses. She's very relaxed with the crowd.

"I think she's great and they look so happy together. It's a good thing."

Mr Condron took his French bulldog, Bert, to meet the royal couple, and the duchess was especially taken.

"The duchess said she used to keep Boston terriers, which are a similar looking dog, not as cute as French bulldogs though, and she was just very taken with him and gave him a good pat and called him Bertie," he said.

"He was enjoying himself. He'll sleep well tonight."

Yet Mr Condron is frustrated at the lack of public information about the royal tour, which is part of the Queen's Jubilee year.

"Last year for the Queen's visit you knew exactly where to go, what time, there was no guessing," he said.

"Nobody seems to know what's going on (this time)."

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New app to remember Remembrance Day

THE ritual of honouring Australia's war heroes is moving into the digital age, with a new app being launched to help young people remember Remembrance Day.

The Minute to Remember app will send out an SMS reminder just before 11am on Sunday to remind subscribers to observe the traditional minute's silence.

The app has been created for Defencecare, an RSL NSW charity that helps current and ex-service personnel and their families with a range of issues.

Defencecare CEO Robyn Collins says the number of war veterans is diminishing but the importance of Remembrance Day and the minute's silence "continues to be a truly essential cultural element of being Australian".

"This digital solution is an exciting way to stay relevant, respectful and help the Defencecare community," she said.

The Minute to Remember campaign also allows people to donate by buying a virtual poppy, which is uploaded to their Facebook page.

RSL NSW President Don Rowe welcomed the new app, saying it would help the ongoing effort to support veterans.

"Defencecare makes a real difference to people's lives and for us, it is crucial to be able to continue our support."

Details can be found at www.minutetoremember.com.au.

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Lottery lunacy matches Cup fever

THE really big money on Melbourne Cup day rests not with 24 horses but 45 numbered balls.

Oz Lotto's record $100 million jackpot dwarfs anything on offer at Flemington on Tuesday.

The Melbourne Cup prize pool of $6 million includes $3.6 million for the winner.

A lucky Oz Lotto punter, therefore, stands to win 28 Melbourne Cups in terms of prizemoney.

The longest shot in the Cup, Voila Ici, carrying the unlucky number 13 saddlecloth, offered odds of around 125/1 for the punter's dollar.

For just 20 cents more, including agent's commission, the lottery punter could dream of riches beyond imagining.

But there's a good reason for that - the odds are like a quadrella on steroids.

Picking the correct seven out of 45 numbered balls in one game is a 45 million-to-one chance - 45,379,620 to be exact.

And there is always the prospect of having to share the division one prize pool if another punter, or punters, are as lucky as you.

And don't discount no one winning, and the jackpot ascending yet again.

Hearts were ruling minds as lottery fever matched Cup fever around gambling-mad Australia on Tuesday.

A record eight million-plus entries had been lodged, more than one for every three Australians.

"Sales have been bigger than anticipated, and we had anticipated very big sales," said a spokeswoman for Tatts Lotteries.

Victorian agents were opening on a public holiday to cope with demand.

The previous highest guaranteed division one pool offered in Australia was $90 million in 2009, which grew to $106.5 million because of "heightened player interest".

The booty was shared between an Adelaide man and a Queensland couple.

But gambling is a zero sum game.

One man's record first prize is another man's record number of losers.

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ACT airport hub still possible: NSW govt

THE NSW government has rejected federal government claims a decision to build homes near Canberra Airport will stymie its use as a second airport for Sydney.

The state government is set to approve the rezoning of the Tralee Housing Development to allow 1000 new homes south of Queanbeyan in a $400 million venture.

Federal Transport Minister Anthony Albanese says the move undermines NSW Premier Barry O'Farrell's plan to use Canberra Airport as a second hub for Sydney.

But NSW Planning Minister Brad Hazzard disagrees.

"In fact everything we have done today allows that possibility still to occur," Mr Hazzard told reporters in Sydney after announcing the rezoning plan on Tuesday.

He said the development was "logical, sensible, and merit-based", striking a balance between allowing Canberra Airport to grow while delivering much-needed housing to the area.

He accused Mr Albanese of being out to score political points.

"The only issue he's been particularly interested in was having a political mudslinging fight today," Mr Hazzard said, adding that the move was supported by other ALP politicians such as local federal Labor MP Mike Kelly and NSW opposition planning spokesman Steve Whan.

However, Mr Albanese said the move showed Mr O'Farrell's plan to use the airport as a second hub was "farcical and completely contradictory".

He also queried the timing of the NSW government's announcement.

"Melbourne Cup day is known among politicians and journalists as one of those days known as 'put out your trash day'," Mr Albanese said.

He has refused to rule out court action over the issue, saying he had already appealed to the state government to review the decision.

Mr Albanese said passenger traffic at Canberra Airport was forecast to grow by 36 per cent in the next decade, with an average 97 flights a day over the Tralee area.

There was no curfew at Canberra Airport so residents under the flight path would be affected by aircraft noise around the clock, he said.

ACT Chief Minister Katy Gallagher said she hoped the federal government would do what it could to avoid such an outcome.

"But I think from the ACT government's point of view, there is very little we can do," she told reporters in Canberra.

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PM announces $60m for Laos programs

PRIME Minister Julia Gillard has announced $60 million in assistance for a number of programs to help impoverished people in Laos gain skills and have access to small business loans.

Ms Gillard, in Vientiane for the 9th Asia-Europe Meeting (ASEM), was set to hold a series of bilateral meetings on the sidelines of the summit.

Ms Gillard met with Laotian Prime Minister Thongsing Thammavong on Sunday night.

The assistance packages announced on Monday provide $41.5 million for a rural livelihoods program.

More than 360,000 children under the age of five in Laos - half the childhood population - are stunted through malnutrition and about 1.8 million people do not have access to adequate nutrition.

The program aims to boost economic security and is expected to provide 350,000 people with access to financial services including loans.

Another $20 million will be provided to establish a new Laos-Australia Institute, which will provide training to help the country tackle key developmental challenges.

The institute will open next year.

Ms Gillard has a number of other bilateral meetings scheduled for Monday, including talks with Burmese President Thein Sein.

It will be the first time an Australian prime minister has met with the leader of Burma since 1984.

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Obama, Romney still neck-and-neck

PRESIDENT Barack Obama and Republican challenger Mitt Romney remain in a virtual tie in the latest opinion poll released just two days before the White House election.

The survey by the Wall Street Journal and NBC News gave Obama 48 per cent support and Romney 47 per cent -- a statistical dead heat, given the survey's margin of error of plus or minus 2.55 percentage points.

"This poll is reflecting a very, very close campaign nationally," Republican pollster Bill McInturff, who conducted this survey with Democratic pollster Peter Hart, said in a statement on Sunday.

"It's a dead heat," Hart added. "This election is going to be decided by turnout, turnout, turnout."

The poll, conducted between November 1-3, sampled 1,475 likely voters. The findings were in keeping with most national polls which find the presidential contest too close to call.

Most polls, however, give Obama a slight but significant lead in most of the crucial battleground states that ultimately will determine the outcome of the presidential, and therefore give the Democratic incumbent favourable odds of re-election.

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Aust stocks set for cautious start

AUSTRALIAN stocks look set for a quiet start to the trading week ahead of the US elections and a Melbourne Cup day interest rate decision.

CommSec chief economist Craig James says the battle for the White House between Democratic president Barack Obama and his Republican challenger Mitt Romney will be at the front of investors' minds on Monday.

Before Americans go to the polls on Wednesday (AEDT), the Reserve Bank of Australia is due to hold its monthly board meeting on Tuesday, Melbourne Cup day.

"I think the market is going to be super, super cautious," Mr James said on Sunday.

"There are so many uncertainties ahead.

"You are not going to take too many positions ahead of that."

Futures markets were pointing to a weak start on the local market, with the December share price index futures contract down three points at 4,442 points on volume of 5,644 contracts.

Some 12 of the 15 economists surveyed by AAP said they expected the central bank to cut the cash rate by 25 basis points to three per cent.

In other domestic news, the Australian Bureau of Statistics is due to release local jobs numbers and the RBA is scheduled to publish its quarterly statement on monetary policy.

In companies news, full year results are due from Westpac Banking Corporation, while first quarter profit numbers from Rupert Murdoch's News Corporation and a September quarter trading update from Commonwealth Bank of Australia are also slated for publication.

"There's plenty of fodder for investors to feed off and a lot of these things could go either way," Mr James said.

"It is a case of just finding out what the outcome is, interpreting it and moving forward from there."

Wall Street traded higher during the early part of Friday night's (AEDT) session in response to better-than-expected US jobs figures before fading into the close as nervousness over the upcoming US elections took over.

The Dow Jones Industrial Average fell 1.05 per cent, the S&P500 eased 0.94 per cent and the NASDAQ ended 1.26 per cent lower.

The non-farm payrolls report showed the world's largest economy added 171,000 jobs in October, well above market expectations of a 120,000 gain.

The Australian dollar closed the US trading day at 103.37 US cents, down from Friday's local close of 103.85 US cents.

The Australian stock market closed flat on Friday - the benchmark S&P/ASX200 edged up 0.05 per cent and the broader All Ordinaries index rose 0.07 per cent.

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NAB CEO says funding costs on the rise

NATIONAL Australia Bank chief executive Cameron Clyne says there is little prospect of any official interest rate cut being passed on in full to customers any time soon.

Mr Clyne says funding costs for NAB are continuing to rise amid competition for retail deposits and ongoing pressures in wholesale money markets.

Most banks have lowered their borrowing rates by less than any cuts in the Reserve Bank of Australia's (RBA) cash rate, citing higher funding costs, and Mr Clyne says this will likely continue.

"I think there's no short-term return to the RBA cash rate and bank interest rate movements being aligned," he told ABC television's Inside Business program on Sunday.

Mr Clyne said the period between the mid 1990s to the mid 2000s was the only one where bank rates actually moved in line with RBA.

"If you go back prior to that, and then obviously the period since 2007, this is actually more normal," he said.

"Funding costs are driven by a variety of factors - what you pay for deposits, what you pay for long term and short term borrowings."

Mr Clyne says the battle for retail deposits has put the most pressure on funding costs in recent times, while wholesale funding has been "a little more benign".

"That's not to say it may not spike up again if you have instability in Europe or elsewhere, but funding costs are still continuing to rise," he said.

"That will obviously impact us to a degree to which we are able to reprice."

On October 31, NAB reported net profit for the year to September 30, 2012 fell 22 per cent to $4.08 billion, compared with the previous corresponding period, with results dragged down by difficulties at its UK-based operations.

Mr Clyne said turning around the performance of NAB's UK businesses would depend on the state of Britain's economy.

"A patient approach, although it's difficult, is actually in the long term interests of the shareholders," he said.

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