Why Google chief's NKorea visit irks US

GOOGLE chief Eric Schmidt's plan to visit North Korea has put the Obama administration in the awkward position of opposing a champion of internet freedom engaging with one of the most intensely censored countries.

But the Obama administration is wary for a reason: It fears Schmidt's trip could give a boost to North Korea's young leader, Kim Jong Un, just when Washington is trying to pressure him.

North Korea in December launched a long-range rocket in violation of UN Security Council resolutions, and the US and its allies are seeking tighter sanctions. That's proving difficult because of resistance from permanent council member China, which likely fears its troublesome ally could respond to punishment by conducting a nuclear test.

US officials are also concerned that the high-profile visit could confuse partners in Asia and suggest a shift in US policy as the administration prepares to install a new secretary of state to succeed Hillary Rodham Clinton. The nominee is Sen. John Kerry, the Democratic presidential candidate in 2004.

An imminent change of government in South Korea is already raising questions about whether Washington and close ally Seoul can remain in lockstep in their dealings with Pyongyang. Newly elected leader Park Geun-hye is expected to seek a more conciliatory approach toward rival North Korea after she takes up the presidency in February.

This helps to explain why the State Department, which has been a vigorous advocate of social media freedoms around the world, particularly last year during the Arab Spring, made clear it was displeased by the planned "private, humanitarian" visit by Schmidt and former New Mexico Gov. Bill Richardson, expected this month.

"We don't think the timing of the visit is helpful and they are well aware of our views," State Department spokeswoman Victoria Nuland told a news briefing Thursday.

Richardson, a seasoned envoy and a former US ambassador to the United Nations, saidon on Friday that the State Department should not be nervous. In interviews with CBS and CNN, Richardson said they had been planning to visit in December but postponed the trip at the department's request because of the presidential election that month in South Korea.

Richardson said he would raise with North Korea the matter of an American detained there last month on suspicion of committing unspecified "hostile" acts against the state that could draw a sentence of 10 years of hard labour. He'll also try to meet with the detainee, he said.

He also said he was concerned about North Korea's nuclear proliferation and this was a "very important juncture" to talk and try to move the North Koreans in the "right direction."

Schmidt, Richardson said, was travelling as a private citizen. But the trip raises questions about whether Google has plans for North Korea.

Schmidt, the company's executive chairman, is a staunch advocate of global internet access and the power of connectivity in lifting people out of poverty and political oppression, and there are few countries where the obstacles are as stark. North Koreans need government permission to interact with foreigners - in person, by phone or by email - and only a tiny portion of the elite class is connected to the internet.

US law restricts American companies' dealings with North Korea, which is subject to tough sanctions because of its nuclear and missile programs. Imports of North Korean goods are prohibited, but travel to North Korea, exports of US goods and investment in the country are allowed, subject to some restrictions, such as on exports of luxury goods.

Richardson himself has been to North Korea at least a half-dozen times since 1994, including two trips to negotiate the release of detained Americans. His last visit to Pyongyang was in 2010.

The present detainee, Kenneth Bae, is the fifth American held in North Korea in the past four years - including two US journalists who were freed in 2009 after former President Bill Clinton travelled to Pyongyang and met with then-leader Kim Jong Il. Richardson said it was doubtful he and Schmidt would meet with Kim Jong Un, but he expected to talk with officials from the foreign affairs and economic ministries and the military.

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Cops strip off uniforms to save swimmers

Two Gold Coast police constables have stripped down to rescue two women caught in a rip. Source: AAP

TWO women were saved from dangerous surf on the Gold Coast after quick-thinking police officers did a Baywatch-style strip on the run before diving in to rescue them.

Police say the two women, aged 19 and 20, walked into the water off Surfers Paradise for an early morning swim about 4am (AEST) on Saturday.

However, they were caught in a strong rip and swept out past the breakers.

Two police constables walking nearby heard their screams and immediately sprinted towards the water as they stripped off their uniforms.

They dived in and swam a considerable distance before they reached the women.

An onlooker and other uniformed officers on the beach helped bring the group back to shore safely.

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Aust stocks close lower

AUSTRALIAN stocks have closed weaker as declines among the major miners dragged the broader market lower and snapped a two-day rally.

At 1615 AEDT on Friday, the benchmark S&P/ASX200 index was down 16.9 points, or 0.36 per cent, at 4,723.8 points, while the broader All Ordinaries index had fallen 18.5 points, or 0.39 per cent, to 4,742.9 points.

On the ASX 24, the March share price index futures contract was 13 points lower at 4,703 points, with 20,395 contracts traded.

The Australian market opened down about 0.3 per cent, following a disappointing night on Wall Street as US investors reacted negatively to news the US central bank may consider ending its quantitative easing program earlier than expected.

After the poor start, local stocks remained stuck in red figures but held their ground to trade in a tight range throughout Friday's local session, ending a two-day rally that had pushed the S&P/ASX200 to a 19-year high.

The S&P/ASX200 closed at its highest level since May 2011 on Thursday and the market had risen about two per cent over the first two trading days of 2013.

CMC Markets chief market strategist Michael McCarthy said the declines on Friday were a healthy sign for the local bourse.

"We've had such strong runs in both the US market and the local market," Mr McCarthy said.

"We need a bit of a flush, a bit of a correction or at least a pause to consolidate to bring new buyers into the market.

"A concern from an investor's point of view is when a market runs and runs in one direction because inevitably that then leads to a very significant correction."

Gold was the worst-performing sector on Friday, tumbling 3.48 per cent according to IRESS data.

Metals and minerals stocks (down 1.34 per cent) and the materials sector (down 1.17 per cent) were also deep in negative territory.

BHP Billiton fell 24 cents to $37.91, while Rio Tinto was off 70 cents at $68.55.

One bright spot was financial stocks - a large component of the Australian market - with the big four banks all posting gains.

ANZ climbed eight cents to $25.26, CBA advanced one cent to $63.25, NAB rose six cents to $25.31 and Westpac was six cents firmer at $26.25.

Making news on Friday, Atlas Iron said it was on track to produce up to 7.7 million tonnes of iron ore in the 2013 financial year after bringing its third Pilbara iron ore mine into production.

Atlas was down six cents at $1.81.

Macmahon Holdings said an existing agreement to sell its construction operations to Leighton Holdings meant it was unable to let an Indian-based bidder that emerged on Thursday conduct due diligence on the assets.

Macmahon was up 0.5 cent at 29 cents, while Leighton was 35 cents higher at $19.00.

The spot price of gold in Sydney was $US1,649.90 per fine ounce, down $US36.53 from Thursday's local close of $US1,686.43 per ounce.

Preliminary national turnover was 1.1 billion securities worth $2.4 billion, with 384 stocks up, 499 down and 371 unchanged.

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Rat poison washes up on beach

A CANISTER of rat poison has washed up on a NSW beach, with police unsure where it came from or whether there are more.

A man walking along Salt Beach at Kingscliff, on the far north coast, noticed the 30cm metal canister covered in barnacles and lying on the sand on Friday.

A Hazmat team from Fire and Rescue NSW examined its contents and will dispose of them.

In the meantime, police are keen to determine where it came from and how many more might be in the water.

"Judging by the barnacle growth, these have been in the water for some time," Inspector Greg Jago said in a statement.

"We believe the contents are toxic and there is a significant potential risk to anyone who tries to open the canister.

"If you see one leave it alone and alert authorities."

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Bus station to offer a break from the heat

ADELAIDE'S Central Bus Station will stay open around the clock to offer people a place to cool down as the city swelters through a string of 40C days.

The mercury surged to 40.6C on Thursday and was forecast to hit 42C on Friday.

Some brief relief was expected on Saturday with a cool change dropping temperatures into the low 30s, before another string of 40C days early next week.

Lord Mayor Stephen Yarwood said the air-conditioned bus station was a convenient place for people to cool off.

"The station is a good option for people who are without air conditioning at home or just need some time to recharge," he said.

With Adelaide and most of SA in the grip of a summer blast, SA Health and SafeWork SA have urged people to avoid heat stress.

Director of public health Kevin Buckett said it was important for people to stay well hydrated during prolonged periods of hot weather.

"If you do need to go into the sun, do so for limited periods and wear a long-sleeved, light-coloured shirt, a hat, sunglasses and plenty of sunscreen," he said.

Dr Buckett said the elderly, babies and young children were most at risk from heat-related conditions.

Symptoms of heat exhaustion include nausea, dizziness, loss of appetite, weakness, headaches, vomiting and reduced urine output.

SafeWork SA said workplaces should ensure they have measures in place to cope with the heat.

"Hot weather is a hazard that needs to be considered when planning work activities," acting executive director Robin Scott said.

The RSPCA said pets should be kept out of the sun and be offered more water or blocks of ice.

Dogs that were left in cars, even with the windows open, could die in minutes.

"We need people to exercise common sense and to be aware of the dangers," chief inspector Simon Richards said.

The SA Ambulance Service said the hot weather had not caused major problems so far, but an increased number of calls was expected if the heat continued.

AAP tjd

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Aust stocks close higher

AUSTRALIAN stocks have closed at fresh 19-month highs after strong gains among the big miners and retail banks.

At 1615 AEDT on Thursday, the benchmark S&P/ASX200 index was up 34.8 points, or 0.74 per cent, at 4,740.7, while the broader All Ordinaries index had risen 38.5 points, or 0.82 per cent, at 4,761.4 points.

It was the S&P/ASX200's highest close since it finished the local trading day at 4,756.4 points on May 19, 2011.

On the ASX 24, the March share price index futures contract was 35 points higher at 4,719, with 26,588 contracts traded.

The local market opened up 0.4 per cent, following a strong lead from Wall Street, and extended gains through the day with investors buoyed by the deal over the US fiscal cliff and firmer commodities prices during the overnight session.

Positive data from China also lifted sentiment on equities markets.

Resources-related sectors were among the best performers on a day of broad-based gains on the Australian bourse.

The gold sector climbed 3.17 per cent, metals and minerals companies rose 1.64 per cent and the materials sector advanced 1.5 per cent, according to IRESS data.

BHP Billiton was up 31 cents to $38.15, while Rio Tinto was $1.63 firmer at $69.25.

Financial stocks - a large component of the Australian market - were 0.41 per cent higher, with all four big retail banks all posting gains.

ANZ climbed nine cents to $25.18, CBA advanced 52 cents to $63.24 - an all-time closing high - NAB rose 15 cents to $25.25 and Westpac was nine cents firmer at $26.19.

"Regional equities are seeing a continuation of the buoyant risk environment in Asia today as investors react to the passing of the fiscal cliff deal," IG markets strategist Stan Shamu said in a research note.

"Although some analysts feel this is merely a relief rally as US leaders kick the can down the road so to speak, it seems to have done the job for now."

Making news on Thursday, IAG said it had raised its catastrophe reinsurance programme to $5 billion for 2013, from $4.7 billion in 2012.

IAG was up three cent at $4.72.

Brambles rose eight cents to $7.67 after the pallet company said it had completed the 135 million euro ($A170.82 million) acquisition of intermediate bulk container company Pallecon.

The spot price of gold in Sydney was $US1,687.30 per fine ounce, up $US7.12 from Wednesday's local close of $US1,680.18 per ounce.

Preliminary national turnover was 1.4 billion securities worth $2.8 billion, with 621 stocks finishing up, 305 down and 333 unchanged.

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Aust stocks close 1.2 per cent higher

AUSTRALIAN stocks have begun 2013 on a bright note, climbing more than one per cent to fresh 18-months highs as investors welcomed a deal that averted the so-called US fiscal cliff.

At 1615 AEDT on Wednesday, the benchmark S&P/ASX200 index was up 57 points, or 1.23 per cent, at 4,705.9 points, while the broader All Ordinaries index rose 58.3 points, or 1.25 per cent, at 4,722.9 points.

It was the S&P/ASX200's highest close since June 1, 2011, when the benchmark index ended the local session at 4707.3 points.

On the ASX 24, the March share price index futures contract was up 66 points at 4,682 points, with 16,488 contracts traded.

The local market, which was closed on Tuesday for New Year's Day, opened up 0.3 per cent and extended gains through the day as investors took their cues from good news from Washington regarding the US fiscal cliff.

Legislators in the US Congress and the White House had agreed on a series of measures to avoid steep tax hikes and steep spending cuts - dubbed the fiscal cliff - coming into effect at the start of 2013.

While the result was not a comprehensive solution, the US economy was tipped to have slumped back into recession and world growth knocked down - in the absence of any deal.

"Asian markets have sprung to life on the first trading day of 2013, with big gains across the risk space," IG Markets strategist Stan Shamu said in a research note.

In Australia, all but one sector finished the day in green figures, with gold stocks the best-performing part of the market rising 3.17 per cent according to IRESS data.

Metals and minerals companies (up 2.51 per cent) and the materials sector (up 2.29 per cent) also had a positive day on the back of firmer iron ore prices.

BHP Billiton gained 74 cents to $37.84, while Rio Tinto was $1.61 firmer at $67.62.

Financial stocks - a large component of the Australian bourse - were 0.8 per cent higher, with all four big retail banks all posting gains.

ANZ climbed four cents to $25.09, CBA advanced 54 cents to $62.72, NAB rose 10 cents to $25.10 and Westpac was six cents higher at $26.10.

Making news, Gindalbie Metals said it had shipped its first cargo of magnetite from the Karara iron ore project in Western Australia after extensive delays.

In percentage terms, Gindalbie was the second best-performing stock on the S&P/ASX200, climbing 10 per cent or 2.5 cents, to 27.5 cents.

The spot price of gold in Sydney was $US1,680 per ounce, up $US16.66 from Monday's close of $US1,663.34 per ounce.

Preliminary national turnover was 1 billion securities worth $2.1 billion, with 656 stocks up, 290 down and 295 unchanged.

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Bali pool death at private home not club

Bali police are investigating the suspicious death of a Qld woman who was found dead in a pool. Source: AAP

A QUEENSLAND woman found dead in Bali was found at her home, not the beach club where she worked, her employers say.

Indonesian police are investigating the death of 33-year-old Denni North, who was found facedown in a pool on the resort island on December 30.

She had been working as a guest relations consultant at the Cocoon Beach Club and her death is reportedly being treated as suspicious.

The club released a statement on Facebook on Wednesday saying Ms North had been found dead in a swimming pool at her home, not at the club as has been reported.

"We cannot comment on any details of her death but would like to confirm the incident did not occur at Cocoon but at her private residence, we do not believe it to be suspicious but the police are investigating," it said.

Ms North, from Deception Bay north of Brisbane, reportedly frequented the beach club as a customer and was later offered a job there.

The club has offered assistance to her family, the police and the Australian consulate.

"She was a vivacious and beautiful young woman and we are incredibly saddened by her death and send our deepest condolences to her family and many friends," the statement said.

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Finger severed during gardening dispute

A Sydney man has severed his neighbour's finger with gardening shears during a gardening dispute. Source: AAP

A MAN has severed his neighbour's finger with gardening shears during a gardening dispute.

Police say an argument broke out between a 71-year-old man and his 58-year-old neighbour in Killara, on Sydney's north shore.

The man was trimming a hedge about 7.40pm (AEDT) on Monday when an argument started and he allegedly severed the top of her finger with his gardening shears.

She was taken to Royal North Shore Hospital where she underwent surgery to re-attach her finger.

The man has been charged with recklessly inflicting grievous bodily harm.

He was granted bail and will appear in Hornsby Local Court January 30.

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Teenager stabbed during Lorne fight

A teenager has been stabbed during New Year's Eve celebrations on the Victorian Surf Coast. Source: AAP

A TEENAGER has been stabbed during New Year's Eve celebrations on the Victorian Surf Coast.

Police patrolling the streets of Lorne came across a fight between a group of people near a service station about 11.45pm (AEDT) on Monday.

When officers broke up the fight they were told by an 18-year-old man that he had been stabbed in the chest, a police spokeswoman said.

Officers administered first aid at the scene before taking the man to Lorne Hospital.

He was later transported by air ambulance to The Alfred hospital in Melbourne in a serious but stable condition.

Police are seeking witnesses and want anyone with information to call Crime Stoppers on 1800 333 000.

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Scuffles erupt at Hong Kong pro-govt rally

Scuffles erupted in Hong Kong as thousands marched in support of the city's scandal-plagued leader. Source: AAP

SCUFFLES have broken out as thousands marched in support of Hong Kong's scandal-plagued leader Leung Chun-ying, ahead of a mass pro-democracy rally planned for New Year's Day.

About 2500 people took to the cold and windy streets waving Chinese flags and shouting slogans in favour of Leung, who faces possible impeachment proceedings over illegal alterations to his luxury home.

Leung was chosen to lead the southern Chinese city in March by a pro-Beijing election committee, promising to improve governance and uphold the rule of law in the former British colony of seven million people.

But in his first sixth months in power, Leung has seen his popularity ratings slide and faced a no-confidence vote in the city's legislature.

"We welcome people to support the government and to support the stability and prosperity of Hong Kong citizens," said Caring Hong Kong Power, the organisers of Sunday's march, which began at the city's Victoria Park and ended at the government headquarters.

But scuffles erupted midway between pro-Leung supporters and anti-government campaigners who arrived carrying colonial Hong Kong flags.

Some participants were also seen punching two reporters from a local television station, according to an AFP photographer.

"I am not comfortable with the increasing power of groups that create turmoil in Hong Kong," Stan Ngan, a 63-year-old retiree at the event told AFP, referring to increasingly vocal pro-democracy groups.

Pro-democracy campaigners plan to hold a rally on January 1 to demand the resignation of Leung and ask for universal suffrage, with organisers saying they hope to see 100,000 people at the rally.

Hong Kong returned to China in 1997 as a semi-autonomous territory with its own political and legal system that guarantees civil liberties not seen on the mainland, including freedom of speech and association.

Leung survived a vote of no confidence in the legislature earlier this month over illegal structures in his home, including a wooden trellis and a glass enclosure.

But he faces a planned impeachment motion scheduled for early January, with 27 pro-democracy lawmakers in the 70-member legislature saying they would support the motion.

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Summernats cancel strip show

THE organiser of the revamped family-friendly Summernats festival has a message to fans upset about the cancellation of the traditional Saturday night strip show: "That's how we roll".

Co-owner Andy Lopez has made Canberra's once-infamous street car event more family-friendly since taking over in mid-2009.

He scrapped the wet T-shirt competition in 2010, and this year has axed the annual Saturday night strip show from the four day entertainment schedule.

"That's how we roll," Mr Lopez said.

"For those people who it is a bit of an issue for, they can go and avail themselves at Canberra's facilities outside of the grounds."

The event came close to folding following bad crowd behaviour in 2008 after patrons were kicked out for misbehaving and a 300-strong rowdy mob marched around the venue in retaliation yelling "Show us your tits".

But with the addition of better live music and group goals such as breaking the 2013 Guinness World Record for the most number of cars involved in a simultaneous burnout, Mr Lopez and his fellow co-owners are turning the event around.

"People come to Summernats because they love cars and they love getting together, looking at cars ... and getting new ideas of what they are going to do over the next 12 months.

"Then they like sitting around, chilling out, listening to good music, watching the fireworks and hanging out with their friends."

And it looks as though the event really has turned a corner, with ACT Policing praising the 2012 festival after not making a single arrest.

As a result, Mr Lopez anticipates crowd figures may even exceed the 90,000 people who visited last year for the festival's 25th anniversary.

Already 1700 cars have been registered for this year's event, with participants travelling from as far away as Darwin and Perth.

"It is the national mecca for the street machines," Mr Lopez said.

The four-day Summernats festival begins with the Civic city cruise at midday (AEDT) on Thursday.

Gates at Exhibition Park open at 1pm.

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Man held over Melbourne teenage stabbings

Police believe two separate stabbings in Melbourne's west may be linked to the same attackers. Source: AAP

A 19-YEAR-OLD man has been arrested after two teenagers were stabbed and left with serious injuries in Melbourne's west.

A 16-year-old boy was stabbed in the stomach and wrist following an altercation with a group of males outside a house in Gordon Street, Footscray, at about 10.40pm (AEDT) on Saturday.

Minutes later, officers were called after a 15-year-old boy was stabbed multiple times during a fight between a large group of youths in a fast-food outlet's car park in Ballarat Road, Footscray.

Both teenagers were taken to the Royal Children's Hospital with serious but non-life-threatening injuries.

Maribyrnong Crime Investigation Unit detectives were interviewing a 19-year-old Bundoora man over the attacks following his arrest on Sunday.

Police are urging witnesses to both attacks, which they say may have been committed by the same offenders, to contact Crime Stoppers.

They particularly want to speak to a group of Asian males aged between the early teens and early 20s who were seen near both stabbings, police said.

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Bus bomb wounds seven in Philippines

A POWERFUL bomb has exploded in a passenger bus and wounded at least seven people in the southern Philippines in an attack by suspected extortion gangs.

The homemade bomb exploded in the rear portion of the bus as it travelled late on Saturday in Isulan town in Sultan Kudarat province, damaging the vehicle and sparking a brief fire but causing no injuries among the vehicle's passengers and crew, police chief Rolen Balquin said on Sunday.

The force of the blast shattered the windshield of another passenger bus nearby, wounding its driver and two passengers. Four bystanders along a roadside were wounded by shrapnel from the blast, Balquin said.

The bombing occurred despite a security alert over possible attacks by armed extortion gangs which have targeted passenger buses in the south.

Balquin said his men had captured a member of the notorious Al Khobar extortion gang who detonated a roadside bomb last month in Sultan Kudarat's Tacurong town and later told investigators the attack was part of an attempt to extort money from a bus company.

The bombing prompted the provincial police to go on full alert with intensified patrols of public areas and road checkpoints.

Intelligence agencies also went on alert on Sunday, the anniversary of five near-simultaneous bombings by al-Qaeda-linked Filipino extremists that killed 22 people and wounded about 100 in Manila on December 30, 2000.

Police said they had not monitored any specific terrorist threat but that intelligence and counter-terrorism agencies traditionally intensify their monitoring on dates when terrorists have staged major attacks.

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