IT tech convicted in 'Vatileaks'

A VATICAN court has convicted a Holy See computer technician of helping the former papal butler in the theft of confidential papal documents and given him a two-month suspended sentence.

Claudio Sciarpelletti, an Italian who is a computer program analyst in the Vatican's Secretariat of State, had testified earlier that he had played no role in helping to spirit out confidential documents in a scandal involving alleged corruption in the Vatican bureaucracy.

Pope's former butler, Paolo Gabriele, was convicted last month in a separate trial for the theft of the documents and is serving a 18-month prison sentence in Vatican City.

Top Vatican security officials, including the head of Pope Benedict XVI's bodyguards, as well as his convicted former butler were the witness list in the latest trial in the leak of confidential papal correspondence.

The witnesses had been called to testify earlier in the week in a Holy See courtroom, but the judge told them to come back Saturday to give more preparation time for the defence.

The stolen documents formed the basis of an Italian journalist's book about alleged corruption at the Vatican.

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Prince Charles thanks 'kind' Aussies

Prince Charles thanked Australians for being "wonderfully kind", as he and wife Camilla wrapped up a six-day tour which has taken them from the Outback to Bondi Beach.

Hundreds of people came to see the royal couple at their final destination in Canberra, with one woman offering the prince a packet of chocolate Tim Tams -which he had said he hoped someone would allow Camilla to try.

"You're very kind," Charles told Alyson Richards, 25, as she handed over the biscuits and wished him a happy birthday for next week.

At a lunch at Government House, Charles said it had been a joy to visit Australia, where the couple had met hundreds of community volunteers, as well as been able to see the local wildlife, including koalas and kangaroos, up close.

"When we finally get back, after a very, very, long journey, if I'm still reasonably compos mentis by then and haven't completely lost my marbles to jet lag, I will report back to Her Majesty your wonderfully kind thoughts and expressions after our visit," he said.

He said while the tour had not allowed them to visit as many places as they would have liked, it enabled them to "witness so many of the changes that have happened here since I was here last".

"And to witness... the extraordinary vibrancy of the multicultural society which Australia is and which of course has stood Australia in such remarkable stead in terms of the richness and diversity which you can see only too well."

Earlier, Charles watched as one of the terraces of Canberra's Lake Burley Griffin was named after the Queen, following a tradition of naming the terraces after Australia's monarchs since the country became a federal state in 1901.

Prime Minister Julia Gillard said the renaming would "remind future generations that for more than half of our journey as a united nation, Elizabeth the Second has been our monarch."

The royal couple arrived in New Zealand late onSaturday on the last leg of their tour marking the Queen's Diamond Jubilee and were met at a military air base in Auckland by Prime Minister John Key.

They will formally begin their six-day visit with a traditional Maori welcome today at the Auckland War Memorial Museum where they will also commemorate Armistice Day.

They will then travel to Wellington and tour Peter Jackson's Weta Workshop to inspect costumes and props used in The Hobbit movies before moving to Christchurch, the scene of devastating earthquakes last year that claimed 185 lives.

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China plans manned space launch

CHINA is aiming to launch its next manned space mission as early as June 2013, state media reported, as the country steps up its ambitious exploration program.

The Shenzhou-10, with three crew members, is aiming for a primary launch window in June, Niu Hongguang, deputy commander-in-chief of the manned space programme, told China National Radio in an interview Friday.

Mr Niu, speaking on the sidelines of China's 18th Communist Party Congress that kicked off Thursday in Beijing, said officials had identified a back-up launch window for July or August.

He said one of the three astronauts would likely be a woman.

China sent its first female astronaut, Liu Yang, into space earlier this year on the Shenzhou-9 in the country's first manual space docking mission.

The docking procedure was a major milestone in the country's ambitious space program that has a goal of building a space station by the end of the decade.

In its last white paper on space, China said it was working towards landing a man on the moon, but did not specify a time-frame.

So far only the United States has achieved that feat, most recently in 1972.

Beijing has said it will also attempt to land an exploratory craft on the moon for the first time in the second half of 2013 and transmit back a survey of the lunar surface.

China sees its space program as a symbol of its rising global stature, growing technical expertise, and the Communist Party's success in turning around the fortunes of the once poverty-stricken nation.

The country sent its first man into space in 2003. It completed a space walk in 2008 and an unmanned docking between a module and rocket last year.

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Orthodox patriarch visits Bethlehem

RUSSIAN Orthodox Patriarch Kirill visited the Church of Nativity in Bethlehem and met with Palestinian president Mahmud Abbas, on the second day of his Holy Land trip.

After his visit to the Bethlehem church, built over the site where Christians believe Mary gave birth to Jesus in a stable, Patriarch Kirill met with the Palestinian president at his office in the West Bank city.

A statement from the president's office cited Mr Abbas as telling Patriarch Kirill the visit was historical and bore political meaning.

"We feel it comes from the leadership of the Russian people," Mr Abbas said of the visit, saying Moscow supported peace and justice in the Middle East.

The statement also quoted Patriarch Kirill as saying the visit was special to him, and especially important "since Christ walked here."

"I'm fully confident you are committed to real peace, and your position is welcome because the people living here know the meaning of living in unrest," the Russian patriarch was quoted as saying.

The head of a community of some 150 million Orthodox believers arrived in Jerusalem on Friday for his first visit since becoming head of the powerful church in 2009, and held prayers at the Church of the Holy Sepulchre.

Over the course of his six-day trip, Patriarch Kirill will also meet Israeli President Shimon Peres and King Abdullah II of Jordan, in a new sign of his importance as a global religious figure.

Israel's foreign ministry called his trip "the most important (religious) visit (to Israel) since that of the Pope Benedict XVI" in 2009.

The 65-year-old patriarch will visit Christian holy sites in northern Israel as well as in Jordan.

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Afghan soldiers attack NATO troops

TWO Afghan soldiers attacked US-led NATO forces (ISAF) in western Afghanistan, in the latest "insider" attack in the country, injuring one foreign soldier, ISAF said.

An ISAF spokesman in Kabul said that the attack by two Afghan National Army (ANA) soldiers occurred in Muqur district of Badghis province in the early hours of Saturday, which resulted in the injury of one NATO soldier and one attacker but no fatalities.

"Two ANA service members turned their weapons against ISAF forces in Badghis province. There was no fatalities, but one ISAf soldier was injured and one attacker was also wounded when ISAF troops returned fire. Both attackers were detained by ISAF and Afghan forces," the spokesman said without giving more details.

A provincial spokesman confirmed the incident but said that only one attacker, an ANA soldier who "was suffering from mental problems", was involved.

"The soldier who opened fire was suffering from mental problems, he was wounded when ISAF forces returned fire and later detained by Afghan and ISAF forces," said provincial governor spokesman Sharafudin Majidi.

Shootings by Afghan forces have taken an increasing toll on NATO troops and have seriously undermined trust between NATO forces and their Afghan allies in the fight against hardline Islamist Taliban insurgents.

In the most recent previous attack a man in Afghan police uniform opened fire on NATO-led coalition forces in southern Helmand province on October 30, killing two British soldiers.

The Afghan conflict has seen a surge in insider attacks this year, with more than 50 ISAF troops killed by their colleagues in the Afghan army and police.

There are presently around 100,000 US-led forces fighting alongside Afghan security forces against a Taliban-led insurgency that has been raging in the war-torn country since a US-led invasion toppled the hardline Islamist regime in late 2001. NATO combat forces are scheduled to withdraw from Afghanistan by the end of 2014.

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Man killed at Swedish PM's residence

SWEDISH media say a man was shot and killed at the prime minister's residence in downtown Stockholm.

The prime minister was not in the building.

Police spokeswoman Tove Hagg confirmed to the AP that a man had been killed. She wouldn't give details but said "there is nothing that indicates a crime."

Ms Hagg said the man had "full access" to the location but was not a bodyguard or an employee of the government or Parliament.

Markus Friberg, a spokesman for Prime Minister Fredrik Reinfeldt, told the AP the prime minister was not in the building when the shooting happened.

Mr Friberg said: "The prime minister is fine. He was at an external meeting. He wasn't there."

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Clinton plans busy Aussie trip

US Secretary of State Hillary Clinton will travel to Australia next week, joining up with Defense Secretary Leon Panetta for annual bilateral security and strategic talks, a US official said Friday.

Mrs Clinton leaves Sunday heading for Perth and the annual US-Australia meeting of ministers, where she will also meet with Australian Prime Minister Julia Gillard and Foreign Minister Bob Carr, a State Department statement said.

The Perth summit on November 14 comes after the arrival of US Marine and Air Force units to northern Australia, seen as evidence of an American "rebalance" towards the Pacific after a decade of ground wars in Iraq and Afghanistan.

She will also travel to Adelaide to meet Australian business leaders as well as visit Techport Australia, a huge shipbuilding facility.

Australian newspapers also reported that Mrs Clinton, who has said she plans to step down at the end of her four-year term in January, would make a private trip to meet close friends in Adelaide.

The much-travelled top US diplomat then heads to Singapore on Friday to meet with Prime Minister Lee Hsien Loong and Foreign Minister Kasiviswanathan Shanmugam, State Department spokeswoman Victoria Nuland said.

From Singapore, Mrs Clinton will join up with President Barack Obama in Thailand on his first foreign visit since he won a historic second term in Tuesday's presidential elections.

Mrs Clinton will join Mr Obama on November 18 for meetings with Thai Prime Minister Yingluck and other senior Thai officials "to underscore our strong alliance and discuss shared priorities and regional issues in advance of the ASEAN East Asia Summit," Ms Nuland said in the statement.

She will then accompany Mr Obama on his landmark trip to Burma on November 19, before heading with him to Cambodia for the US-ASEAN leaders meeting and the East Asia summit.

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Train fire kills 25 dead, dozens hurt

TWENTY-five people were killed and dozens more injured in a large fire sparked by a train accident in northwest Burma, the government said.

Two petrol tankers loaded onto the train overturned when it derailed, and local villagers collecting the fuel were burned to death in the ensuing blaze, according to the information ministry website.

Sixty-two people were hurt in the accident, which happened at about 10.00 am (0330 GMT) in Kanbalu in Sagaing Region, it said.

"While some people from nearby villages were collecting the oil, the fire spread and 25 of them were killed and 62 injured, according to initial information," the ministry website said.

It said authorities were investigating the accident and the casualties had been rushed to hospitals in the area.

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US stocks lower on fiscal cliff worries

US stocks opened mostly lower on Friday, extending two days of heavy losses, as concerns about the looming "fiscal cliff" at year-end continued to grip Wall Street.

Traders awaited US President Barack Obama's first major post-election statement later on Friday, in which he is expected to lay out his plan to avert the automatic spending cuts and tax increases that could drive the economy back into recession.

In opening trade, the Dow Jones Industrial Average was down 19.81 points (0.15 per cent) at 12,791.51.

The S&P 500-stock index edged down 0.14 (0.01 per cent) to 1377.37, while the tech-rich Nasdaq Composite added 3.15 (0.11 per cent) at 2898.73.

"Concerns about the prospect of a fiscal cliff compromise and renewed worries about a eurozone break-up, which are rooted in brinkmanship over additional aid for Greece, continue to weigh heavily on sentiment," said Patrick O'Hare at Briefing.com.

"The fiscal cliff factor, though, is superseding all else as a major market driver."

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Iran confirms firing at US drone

IRAN'S defence minister confirmed a Pentagon claim that two Iranian fighter jets fired on an unarmed US Predator drone in the Gulf last week.

"Last week an anonymous plane entered the space over the territorial waters of the Islamic Republic of Iran in the Persian Gulf area which, due to the timely, clever and decisive action of our armed forces, was forced to flee," Ahmad Vahidi was quoted on ISNA as saying.

"This instance and others before show that the Islamic Republic of Iran has the needed vigilance to monitor all movements and takes decisive and timely actions."

His comments came after the deputy chief of Iran's armed forces, Brigadier General Masoud Jazayeri, had implied the aerial shooting had taken place, quoted earlier on Friday by the the Revolutionary Guards' website.

Pentagon spokesman George Little said on Tuesday the Iranian Su-25 Frogfoot fighters fired at the drone on November 1 but did not hit it.

"They intercepted the aircraft and fired multiple rounds," Mr Little said.

It was unclear whether the Iranians intended to warn off the unmanned drone but Mr Little said: "Our working assumption is that they fired to take it down."

The drone was "never in Iranian airspace" and came under fire off the Iranian coast over international waters, Little said.

In a warning to Tehran, Mr Little said the United States was prepared to safeguard its forces.

The confrontation threatened to derail diplomatic efforts to defuse a mounting crisis over Tehran's nuclear program, amid a shadow war of cyber attacks, bombings and assassinations.

Tough new sanctions led by Washington are squeezing Iran's economy, while the United States and Israel are accused of staging cyber sabotage on Tehran's uranium enrichment plants.

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Shot fired in mugging near White House

A ROBBERY in a downtown neighborhood not far from the White House ended with a shot fired but no injuries, Washington police said.

Three masked black male suspects robbed two men in downtown Washington at around six in the morning local time, police spokesman Araz Alali told AFP.

When the suspects fled in a silver or white Lincoln Town Car, the victims pursued in their own vehicle.

During the chase one of the suspects fired at least one shot that hit the victims' windshield.

Some reports placed the incident near Lafayette Square, the park outside the presidential residence, but police said the robbery occurred about six blocks away in an area popular for its bars and restaurants.

After the shot was fired, the victims drove towards the White House, "knowing there would be uniformed policemen there," Mr Alali said.

The men reported the incident to two Secret Service officers, who relayed the information to police.

No suspects are in custody, and the investigation is being actively pursued, Mr Alali said.

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Kenneth Branagh knighted by Queen

KENNETH Branagh, who has played royalty on stage and screen, has been made a real-life knight by the Queen.

The British actor and director said he was pleased to be honoured in the year of the queen's Diamond Jubilee and the Olympics. He said that "it's been a hell of a year for the U.K. and I feel very honoured to be a tiny part of it."

Belfast-born Branagh was knighted at a Buckingham Palace ceremony for services to drama and for his charity work in Northern Ireland.

Best known as a Shakespearean actor and as TV detective Wallander, Branagh joins the pantheon of theatrical knights alongside the late Sir Laurence Olivier - whom Branagh played opposite Michelle Williams in My Week With Marilyn.

He has also directed films including Henry V.

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Commerzbank says it's back in profit

COMMERZBANK, Germany's second-biggest bank, says it returned to profit in the third quarter of this year, but the result fell short of analysts' expectations.

Commerzbank said in a statement it booked a net profit of 78 million euros ($A96 million) from July to September, compared with a loss of 687 million euros 12 months ago.

Analysts polled by Dow Jones Newswires had been forecasting a bigger net profit of around 141 million euros.

Already late on Wednesday, Commerzbank had said it was unlikely to pay a dividend for either 2012 or 2013 given the difficult market environment.

The loss for the third quarter of 2011 had largely been due to writedowns on the bank's holdings of Greek sovereign bonds.

Nevertheless, the market environment "will remain volatile in the coming months", said chief executive Martin Blessing.

"We are, therefore, continuing with our strict cost management, consistently reducing non-strategic portfolios further and strengthening our profitability," he said.

At a news conference, Blessing said it was clear that deep cuts in personnel costs would be inevitable.

"But the extent of those costs will depend on the outcome of talks with the responsible bodies," such as labour representatives, he said.

A breakdown of the third-quarter earnings showed that net interest income fell, commission income was down slightly and net trading income was cut in more than half.

Investment income, on the other hand, swung back to small profit after a heavy loss last year.

At the same time, the bank increased its provisions for loan losses.

Looking ahead, "the situation in the euro zone has significantly stabilised in the third quarter. At present, it cannot be foreseen, however, whether the slight recovery of the markets will continue," said chief financial officer Stephan Engels.

In view of rising capital requirements, the ongoing low interest rate levels, and the loss of trust on the part of customers, "we expect to see further charges on revenues", Engels warned.

"However, the costs lately have developed better than originally expected due to further efficiency gains."

Investors did not appear as convinced.

Commerzbank shares were the biggest losers on the Frankfurt stock exchange on Thursday, shedding 3.32 per cent in a generally firmer market.

The weekly newspaper, Die Zeit, reported in its Thursday edition that Commerzbank is preparing to axe up to 10 per cent of its workforce in the coming years, or 5000-6000 jobs.

No such plans were unveiled on Thursday. But late on Wednesday, the bank said it would invest two billion euros in its core banking businesses between now and 2016.

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No talking to aliens at the BBC

WHAT if aliens really do exist?

The thought itself is too much for BBC bosses to handle.

The media behemoth shut down a TV presenter's plan to point a radio telescope at a newly-discovered planet out of fear that aliens might answer back.

Professor Brian Cox said the BBC was concerned the experiment, to be staged live on air during his show Stargazing Life, broke the corporation's health and safety rules.

"We decided that we'd point the Jodrell Bank telescope at the planet (Threapleton Holmes B) that had been discovered by these two viewers (in January) and listen because no one had ever pointed a radio telescope at it and you never know," Mr Cox said on BBC radio.

"The BBC actually said, 'But you can't do that because we need to go through the regulations and health and safety and everything in case we discover a signal from an alien civilisation'."

"(I said), 'You mean we would discover the first hint that there is other intelligent life in the universe beyond Earth, live on air, and you're worried about the health and safety of it?'

"It was incredible. They did have guidelines. Compliance."

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Officer challenges NSW premier for inquiry

A SENIOR police investigator has publicly challenged NSW Premier Barry O'Farrell to launch a royal commission into child sex abuse by clergy, saying the premier is lucky his own children haven't become victims too.

Detective Chief Inspector Peter Fox, who has investigated clergy abuse around Newcastle for decades, wrote an open letter to the premier and then criticised the state government's continued failure to launch a judicial inquiry on national television.

"We're lucky. We haven't had to go through what some of those other families have gone through," he told ABC's Lateline on Thursday, noting that Mr O'Farrell is the father of two boys.

"He has a lot of thanks to give that his boys were never ever abused. ... If he has any compassion and humanity for some of these victims, he's got to turn around (his position)."

The comments came after the senior officer published an open letter stating that there are so many NSW sex abuse cases that he's actually lost count.

"I can testify from my own experience that the church covers up, silences victims, hinders police investigations, alerts offenders, destroys evidence and moves priests to protect the good name of the church," he wrote in his letter.

"Mr O'Farrell, please don't block your ears. Many priests don't want a royal commission, nor does the hierarchy of the church, but God knows we need one."

Det Chief Insp Fox said he has "irrefutable" evidence of a cover-up involving a number of diocese bishops.

"It potentially goes even higher than that," he told Lateline.

In 2010, a woman he said is a credible whistleblower and church insider came forward and gave him an "explosive" statement that is now with the Director of Public Prosecutions.

"There is an archbishop, a bishop and a priest that are implicated in a potential cover-up," he said.

But he said he was directed to give all of his material to a taskforce upon learning of the information.

A superior officer then stood him down from investigating child sex abuse cases further, he said.

He said he doesn't know why he was stood down, but noted that many in the NSW police force would consider him to be outspoken.

He's also not sure if he will face disciplinary action for publicly calling on the premier to act.

"But I don't care," he said.

"What I do care about is that there are so many victims out there. ... There's something very wrong when you have so many pedophile priests operating in a such a small area for such an extended period of time with immunity."

Police later released a statement that stressed how Det Chief Insp Fox's views are not those of the force.

"NSW Police Force are not in a position to comment on the call for a judicial enquiry," the statement said.

But the statement clarified that Det Chief Insp Fox had only been removed from the case because the taskforce was being run in another regional command area.

Police also believe the allegations he raised of cover-ups by the church have been investigated thoroughly, the statement said.

"As a whole the church have cooperated with police," the statement said.

Those views, however, are in contrast to those held by Victoria Police.

Last month, police in that state accused the Catholic Church of intimidation, secrecy, destroying evidence, and failing to report accusations against the clergy.

Deputy Commissioner Graham Ashton told a parliamentary inquiry that the church had also hindered justice by failing to report a single case of child sex abuse in more than 50 years.

"The process is designed to put the reputation of the church first and victims second," he said.

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US trade gap shrinks in September

THE US trade deficit narrowed in September to $US41.5 billion ($A40 billion), down from a revised $US43.8 billion in August, on a surge in exports led by industrial supplies, government data shows.

Exports of goods and services jumped 3.1 per cent over August, to $US187 billion, eclipsing a 1.4 per cent rise in imports to $228.5 billion, the Commerce Department said on Thursday.

Exports of goods rebounded after two straight months of declines, surging 4.2 per cent month-on-month to $US134 billion.

The improvement in the US trade deficit surprised most analysts, who had forecast it would widen to $45.4 billion.

The overall trend has shown a steady narrowing of trade balance in the past four months. On a three-month moving average, the trade gap stood at $US42.6 billion in September, down from $US49.7 billion for the three months ended in May.

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US stocks recover from post-vote plunge

US stocks have edged higher in opening trade, a day after greeting President Barack Obama's re-election with a massive plunge.

In the first five minutes of trade on Thursday, the Dow Jones Industrial Average added a bare 8.29 points, or 0.06 per cent, to 12,941.02.

The broad-based S&P 500 gained 2.00 points, or 0.14 per cent, to 1,396.53.

The tech-rich Nasdaq Composite gained 7.98 points, or 0.27 per cent, to 2,945.27.

The Dow marked its biggest one-day loss in a year on Wednesday after Obama defeated Republican challenger Mitt Romney at the polls, losing 313 points; the S&P lost nearly 34 points and the Nasdaq nearly 75 points.

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Interpol elects French woman as president

INTERPOL has elected a French police commissioner known for her drive against organised crime in Bordeaux and Corsica as its first female president at its general assembly in Rome.

"Mireille Balestrazzi of France becomes the first woman to be elected president of Interpol," the world's top association of crime-fighters said on Twitter.

Balestrazzi, 58, became a police commissioner in France in 1975 and was already vice-president for Europe on Interpol's executive committee.

She is particularly well known for her time as director of judicial police in Corsica in the 1990s at a time of fierce turf wars on the island.

French Interior Minister Manuel Valls, who attended the Interpol assembly earlier this week, said Balestrazzi was "a great police woman".

"She is one of the women who are the pride of the French police," he said.

Valls said her experience with organised crime would serve her well in fighting drug trafficking, mafias from southern and eastern Europe as well as growing political violence that requires a coordinated international response.

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26 dead in Syria clashes near border

AT LEAST 16 Syrian soldiers and 10 rebels were killed on Thursday in heavy clashes in the northwestern town of Ras al-Ain near the Turkish border, the Syrian Observatory for Human Rights said.

"Ten rebels and 16 soldiers have been killed so far in fighting for the majority Kurdish border town of Ras al-Ain," its head Rami Abdel Rahman told AFP, after Turkish media said two Turks were wounded by bullets from the Syrian side.

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Good night's snooze a web click away

DO insomniacs dream of electric sleep?

The answer may not be that far off, with a new online program set to help thousands of restless Aussies get that much-needed night of shut-eye.

A US web-based training course, SHUTi, is being brought to Australia as part of a study into the effects of insomnia and depression.

It's been touted as one of the world's first online treatments to help people get a good night's sleep by changing their behaviour.

While it may sound like self-help, the program has been clinically-proven in a US study which found a number of adult insomniacs reporting significant improvement in their sleeping patterns.

Through tutorials and modules, the web course trains people to change their sleeping habits and the way they think about snoozing.

Techniques range from encouraging people to avoid sleep-blocking stimulants like caffeine and alcohol; reading or watching TV before bed; and ways to shut that annoying voice that warns of the doom that awaits insomnia.

A local version of the study was launched on Wednesday to coincide with the 2012 International Black Dog Lecture, hosted by mental health body the Black Dog Institute.

The institute aims to recruit about 1600 volunteers to take part in the study, which will research the link between insomnia, depression and other mental health issues.

The Australian study will be much bigger than the US one because it's based on a population study, and aims to prevent, rather than treat, mood disorders, anxiety and depression.

The institute's Helen Christensen, who is leading the study, said while taking an online approach to mental health was not new, the research is the first which applies psychological intervention for insomnia and depression.

Professor Christensen said that the findings of the research could have global repercussions.

"If we are able to show this (program) effectively reduces the development of depression and other disorders, then it really is a major weapon in the war against depression," she told AAP.

"That's because it can be developed to the population at large and that it can be disseminated globally."

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West changes tack on Syria intervention

WESTERN efforts to oust Syrian President Bashar Assad have shifted dramatically, with Britain announcing it will deal directly with rebel military leaders and Turkey saying NATO members have discussed using Patriot missiles to protect a safe zone inside Syria.

The developments on Wednesday came within hours of Barack Obama's re-election, with US allies anticipating a new, bolder approach from the American president to end the deadlocked civil war that has killed more than 36,000 people since an uprising against Assad began in March 2011.

British Prime Minister David Cameron, visiting a camp on Wednesday for Syrian refugees in Jordan, said the US, Britain and other allies should do more to "shape the opposition" into a coherent force and open channels of communication directly with rebel military commanders.

Previously, Britain and the US have acknowledged contacts only with exile groups and political opposition figures - some connected to rebel forces - inside Syria.

"There is an opportunity for Britain, for America, for Saudi Arabia, Jordan and like-minded allies to come together and try to help shape the opposition, outside Syria and inside Syria," Cameron said. "And try to help them achieve their goal, which is our goal of a Syria without Assad."

The Turkish official who reported Patriot missile discussions between his nation and its allies, including the United States, said planning for the safe zone inside Syria had been put on hold pending the US election.

The foreign ministry official spoke on condition of anonymity because of ministry prohibitions on contact with the media.

He also said any missile deployment might happen under a "NATO umbrella," though NATO has insisted it will not intervene without a clear United Nations mandate.

"With the re-election of Obama, what you have is a strong confidence on the British side that the US administration will be engaged more on Syria from the get-go," said Shashank Joshi, an analyst at London's Royal United Services Institute, a military and security think tank.

Cameron later held talks with Jordan's King Abdullah II in the capital, Amman.

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German economists lower growth forecast

GERMANY'S government must cut spending to get its deficit under control as the economy is weakening faster than earlier expected, the country's panel of independent economic advisers says.

Germany's economy, the continent's biggest, will grow by only 0.8 per cent next year as Europe's debt crisis weighs on its outlook, the experts predicted on Wednesday.

The government last month lowered its own 2013 growth forecast to one per cent from 1.6 per cent. It expects 0.8 per cent growth this year.

In its annual report, the group maintained recent plans by Chancellor Angela Merkel's coalition government to increase social welfare spending ahead of next year's national elections "go in the wrong direction" given the signs of financial trouble ahead.

"We need significantly more ambition in consolidating the budget," the group's chairman Christoph Schmidt told reporters after handing over its nearly 400 page annual report to Merkel. The government must show more spending discipline as the outlook is worsening, he added.

Merkel's government has defended the plans, saying that even with the increased spending the country will have an almost balanced budget as early as 2014.

Schmidt warned the great efforts required to keep the eurozone's debt crisis in check are diverting too much attention from necessary reforms and cuts in Germany.

Merkel's centre-right government has urged its European partners to implement structural reforms and reduce spending, although it has not pushed through any significant budget cuts at home.

Instead, the country was able to reduce new borrowing thanks to a robust economy, low unemployment and lower interest payment costs because investors consider its debt a safe-haven.

But Germany, the world's second-largest exporter, also depends on the health of its European neighbours' economies, whose outlook is worsening.

The European Commission, the EU's top executive body, lowered its growth forecast on Wednesday, saying both the 17-nation eurozone and the wider 27-member EU will slip into recession this year, contracting 0.4 per cent and 0.3 per cent respectively.

Germany's economy already shows signs of weakening.

Industrial production in September fell by 1.8 per cent, worse than market expectations for minus 0.6 per cent, according to new official data. Industrial orders also fell 3.3 per cent in September over the previous month, pulled down by drop in foreign demand.

The panel of economic advisers also cautioned that the bloc's governments must continue to work on creating lasting solutions to overcome the debt crisis, saying that the European Central Bank (ECB) has taken a too prominent role.

The ECB in September unveiled a plan to buy the bonds of struggling countries, lowering their borrowing rates, if they first agree to a European rescue program that includes conditions on their budget policies.

"The boundary between monetary and fiscal policy was blurred in a questionable way," they said, warning the ECB's bond-buying program must not become a permanent stabilisation mechanism, but remain an emergency solution.

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Chinese leaders gather for congress

CHINA'S communists have called the scandal surrounding disgraced politician Bo Xilai a "profound lesson" for the ruling party, as delegates gather in Beijing on the eve of a key leadership congress.

The party's handling of Bo's case underlines the leadership's resolve to uphold integrity and prosecute corruption no matter how high ranking the culprits, said Cai Mingzhao, spokesman for the 18th national Communist Party congress.

Bo had been one of China's highest-profile politicians and a candidate for higher office when he fell from grace amid a scandal over his wife's involvement in the murder of a British businessman. Bo dropped from view and in September was expelled from the party. He is being prosecuted for yet-unspecified charges, though he's been accused of corruption, abuse of power and assisting in covering up his wife's case.

"Problems involving Bo Xilai ... and others are serious corruption cases among our party's high-ranking leading cadres, and have offered a profound lesson," Cai told a news conference on Wednesday.

The struggle against corruption remains long term, complex and extremely difficult, Cai said. The 18th national party congress, which opens on Thursday, will thoroughly address the issue and its disciplinary arm will adopt new measures in education, prevention, supervision and punishment, he said.

Cai also cited Liu Zhijun, a former railways minister who was expelled from the party and faces corruption charges.

National party congresses are held once every five years, and this year's meeting will usher in a once-in-a-decade transition to a new generation of top officials led by Vice President Xi Jinping.

The congress comes as Xi faces calls from academics and other commentators to embark on political reforms from strengthening the rule of law to making the system more transparent.

Cai indicated that Communist Party rule was a key driving force behind China's success and that any political reforms would not detract from that.

"China has scored world-renowned development achievements. It speaks fully to the strong leadership of the (Communist Party) and the fact that the political party system of China suits China's national reality," Cai said.

"We have to unswervingly stick to the right path blazed by the party and the people in their long term practice. We should never be intimidated by any risks nor be confused by any distractions," he said.

Calls for political reform have occasionally been made and steps taken in recent years to strengthen the legal system and increase the government's responsiveness, but the moves were aimed at strengthening one-party rule. The party has allowed nonpartisan elections for the lowest-level village leadership posts, but it controls policymaking, and harasses and jails activists who call for multiparty democracy.

Over the coming week, in addition to selecting members of leading party bodies, the 2270 delegates will hear and deliberate over the work of the party over the last five years, a party discipline report and revisions to the party constitution.

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US stocks dive as 'fiscal cliff' looms

US stock markets have tumbled in early trade after President Barack Obama's re-election victory set up a tough battle with Republicans over a looming "fiscal cliff".

In the first six minutes of trade on Wednesday, the Dow Jones Industrial Average dropped 197.98 points (1.49 per cent) to 13,047.70.

The broad-based S&P 500 fell 21.28 (1.49 per cent) to 1,407.11, while the Nasdaq Composite shed 41.87 (1.39 per cent) at 2,970.06.

Obama won a resounding victory over Republican challenger Mitt Romney in a closely fought race late Tuesday.

But voters left Congress divided, with Democrats maintaining the Senate and Republicans holding the House of Representatives.

"Focus now shifts to the upcoming fiscal cliff of tax increases and spending cuts that go into effect in 2013 unless a budget compromise is met by Congress," said Wells Fargo analysts.

"By returning a divided government to Washington, the electorate has given neither party a clear mandate to address the lacklustre recovery, the fiscal cliff, and the looming debt crisis," said Brian Kessler at Moody's Analytics.

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US Democrats hold narrow Senate majority

A NEWLY re-elected President Barack Obama will once again deal with a divided Congress as Democrats retain control of the US Senate and Republicans kept their solid majority in the House of Representatives.

The results of Tuesday's election mean that President Barack Obama, despite being re-elected to a second term, will face the same Republican pushback in 2013 that has hurt efforts to enact his major legislation.

Democrats had been seen as vulnerable to losing control of the Senate, since they had more seats to defend, but they were assured of retaining or even increasing their 53-47 advantage. Among the winners for the Democrats was the first openly gay US senator.

Republican candidates in Missouri and Indiana - both states won by Republican presidential nominee Mitt Romney - were defeated after making damaging comments about rape and abortion. An incumbent Republican fell in liberal Massachusetts. Republicans also lost a seat in Maine, where an independent who is expected to caucus with the Democrats won.

Only a dozen or so Senate races out of the 33 on the ballot were seen as competitive, and almost all of those that were called on Tuesday - in Wisconsin, Virginia, Connecticut, Missouri, Ohio, Pennsylvania, New Mexico and Florida - went the Democrats' way. Republicans picked up a Democratic-held seat in Nebraska.

More than $US2 billion ($A1.9 billion) was spent on the nasty fight for Congress. All 435 House seats were on the ballot, and Republicans retained control there, though Democrats made a few gains.

Control of the Senate at the very least gives Democrats a firewall against Republican attempts to overturn Obama's signature legislative achievement, his health care reform law, before it is fully implemented in 2014. Republicans had promised to repeal it.

The first post-election test of wills could start next week, when Congress returns from its election recess to deal with unfinished business - including a looming "fiscal cliff" of $400 billion in higher taxes and $100 billion in automatic cuts in military and domestic spending to take effect in January if Congress doesn't head them off. Economists warn that the combination could plunge the nation back into a recession.

Newly elected Massachusetts Senator Elizabeth Warren, a Democrat who won a marquee race against incumbent Scott Brown, said on Wednesday she believes there is a "lot of room for compromise" on the impending fiscal crisis.

Warren, a favourite among liberals as a leading consumer advocate, told NBC's Today that Congress can find a middle ground to bring down the deficit by cutting spending while raising revenues.

In the new Senate, Democrats will remain below the 60-vote supermajority needed to easily pass legislation under Senate rules.

"Now that the election is over, it's time to put politics aside and work together to find solutions," said Senate Majority Leader Harry Reid.

Senate Minority Leader Mitch McConnell said the voters have not endorsed the "failures or excesses of the president's first term," but rather have given him more time to finish the job.

"To the extent he wants to move to the political centre, which is where the work gets done in a divided government, we'll be there to meet him half way," McConnell said.

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23 people saved, 50 missing off Bangladesh

FISHING boats have helped rescue 23 people after a boat crowded with illegal migrants capsized off Bangladesh's coast, but about 50 people are missing.

About 70 illegal migrants, mostly Rohingya Muslims, were reportedly travelling on the boat to Malaysia when it sank in the Bay of Bengal on Wednesday.

Border commander Zahid Hossain said no bodies had been recovered so far, but quoted survivors as saying they saw some bodies after the boat sank off Bangladesh's Teknaf coast, 320 kilometres south of Dhaka.

Survivors said they were travelling to Malaysia to look for jobs, coast guard official Leiutenant Badruddoza said.

The officials said other fishing boats rescued many of the survivors.

In recent years, poor young people have made dangerous attempts to go abroad for work, often through unscrupulous human traffickers, with local reports saying stateless Rohingya people living in Bangladesh often attempt the risky trips.

Another boat carrying more than 100 people sank in the Bay of Bengal last month, local media reported. Authorities have not confirmed that sinking, but police launched an investigation after several people filed complaints saying they survived the accident on the trip, organised by a gang of people traffickers.

More than 25,000 Rohingya people live in two official camps run jointly by the government and the United Nations in Cox's Bazar. But hundreds of thousands of others live outside the camps after crossing the border from Burma in recent years for economic reasons or because of alleged persecution.

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UK's Cameron moots safe passage for Assad

BRITISH Prime Minister David Cameron says Syrian president Bashar Assad could be allowed safe passage out of the country if that option would guarantee an end to the nation's civil war.

In an interview with Al Arabiya television, Cameron said the international community should consider anything "to get that man out of the country and to have a safe transition in Syria".

In Abu Dhabi on the second day of a three-day tour of the Gulf and Middle East, he said: "I am certainly not offering him an exit plan to Britain, but if he wants to leave, he could leave, that could be arranged."

"Of course, I would favour him facing the full force of international law and justice for what he's done," Cameron said.

In London, diplomats said Cameron was not suggesting Assad could escape potential international prosecution if he were to be granted passage out of Syria.

Cameron has previously called the failure of world powers to halt the Assad's regime assault on its opponents a "terrible stain" on the reputation of the deadlocked United Nations, where Syria's allies Russia and China have repeatedly blocked attempts to approve harsher sanctions in the Security Council.

"I am very frustrated that we can't do more. This is an appalling slaughter that is taking place in our world today - 40,000 lives lost already and you can see, on your television screens, night after night, helicopters, airplanes belonging to the Assad regime pounding his own country and murdering his own people," Cameron said.

However, he insisted that Britain would not consider providing weapons to Syria's fractured opposition - in part, because of concerns about the growing prominence of extremist groups fighting alongside the rebels.

"My fear is, firstly, that the slaughter will continue, that the loss of life will continue. That should be our number one concern," Cameron said. "But there is another fear, which is that the longer this goes on, the more that it can promote and drive extremism and we'll see instability in the region as well."

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Seven Syrian generals defect to Turkey

SEVEN Syrian generals have defected and crossed into Turkey.

The defections on Tuesday bring to 42 the number of key Syrian military officers who have sought refuge in the neighbouring country, reported the Turkish newspaper Today's Zaman.

They were taken under heavy security into a camp in the Turkish province of Hatay where military deserters are sheltered, the newspaper said.

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Search goes on for missing Victorian boy

A SEARCH will continue through the night for a two-and-a-half-year-old boy who has gone missing from his home in Mildura, in northwest Victoria.

The child was last seen playing with his dog at his Deakin Avenue house, near Twentieth Street, about 8.30pm (AEST) on Tuesday.

Police believe the boy and his dog have wandered off the property.

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Freddie Mac posts profit, pays dividend

US mortgage giant Freddie Mac has posted net income of $US9 billion ($A8.73 billion) for the July-September quarter, its second straight profitable quarter.

The government-controlled company attributed the gain to rising home prices and fewer mortgage delinquencies.

Freddie paid a dividend of $1.8 billion to the US Treasury and requested no additional federal aid.

The increase compared with a loss of $6 billion for the same quarter of 2011. It also marked the sixth quarter in which Freddie sought no additional aid since being taken over by the government in September 2008.

The gain "was driven by favourable market conditions, including the continued improvement in the housing market," Freddie CEO Donald Layton said in a statement.

The government rescued Freddie and larger sibling Fannie Mae during the 2008 financial crisis after both incurred massive losses on risky mortgages. Taxpayers have spent about $170 billion to rescue them, the costliest bailout of the 2008 financial crisis.

Under a new federal policy announced last summer, Fannie and Freddie have to turn over all profits they earn every quarter to the government. The change was made to ensure the companies pay the government back.

Freddie requested no government aid in the second quarter, after asking for $19 million in the first quarter. The company received $7.6 billion for all of 2011 and $13 billion for all of 2010.

Fannie and Freddie are required to pay 10 per cent dividends on the government money they receive.

Freddie has paid more to the government in dividends than it has taken in aid over the last seven quarters, the company says.

Freddie and Washington-based Fannie own or guarantee about half of all US mortgages, or nearly 31 million home loans. Those loans are worth more than $5 trillion. Along with other federal agencies, they backed nearly 90 per cent of new mortgages over the past year.

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Mitt and Ann Romney vote in US election

WHITE House hopeful Mitt Romney and his wife, Ann, have voted in the US election.

The Romneys voted in the town of Belmont, Massachusetts on Tuesday.

The Republican nominee then headed to Ohio and Pennsylvania for last-minute efforts there.

Asked who he voted for, Romney said: "I think you know," adding he felt "very, very good" about his election prospects.

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Merkel's Christian comments cause upset

GERMAN opposition politicians and human rights groups are criticising German Chancellor Angela Merkel for claiming Christianity is "the most persecuted religion worldwide."

Jerzy Montag of the opposition Greens party on Tuesday described Merkel's comments as "mistaken" and "not very helpful".

Rights campaigners said ranking faiths according to how persecuted they are is pointless.

Human Rights Watch noted that Muslims in Burma, members of Falun Gong in China and Jews in many countries also faced persecution.

Merkel's comments came at a meeting of the German Protestant Church late on Monday in which she emphasised Germany needed to protect Christian minorities as part of its foreign policy.

Merkel, the daughter of a pastor, also spoke out against strict separation of church and state and said Europe was built on Christian foundations.

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Wall Street opens higher as US votes

US stocks headed higher in opening trade as the country went to the polls to choose between Barack Obama and Mitt Romney for president, with the economy the key issue in the tight election.

With Wall Street more behind the president's challenger Romney, who supports low investment-related taxes, the Dow Jones Industrial Average was up 44 points (0.34 per cent) at 13,156.44 after five minutes of trade on Tuesday.

The broad-based S&P 500 added 3.29 (0.23 points) to 1420.55, while the Nasdaq Composite rose 2.68 (0.09 per cent) to 3002.34.

The dollar was down slightly against the euro, at $1.2809, while bonds were flat.

"The presidential race is considered too close to call. That probably means the nation is in store for a long night of political intrigue," said Patrick O'Hare of Briefing.com.

"Let's hope, however, that by this time tomorrow we at least know who has been elected president. There is a risk that we won't and that won't be a good thing."

Markets have been essentially flat for a week ahead of the vote, with corporate earnings and earnings forecasts keeping a damper on sentiment.

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Obama favoured in Kenyan village

AT Barack Obama's ancestral village in Kenya, witch doctor John Dimo has tossed some shells, bones and other items to determine who will win the US election.

After throwing the objects like so many dice outside his hut in Kogelo village, Dimo, who says he is 105 years old, points to a white shell and declares: "Obama is very far ahead and is definitely going to win."

It's not a surprising result in Kogelo, Obama's late father's hometown in western Kenya, where expectations of an Obama election victory over Republican presidential candidate Mitt Romney were high on Monday.

While pollsters in the US are using interviews, statistical analysis and the technology to predict the outcome of the election in America - one that is expected to be close - Dimo uses techniques he learned from his father, and is confident of his predictions.

Obama is the son of a white mother from Kansas and a black father from Kenya and has five Kenyan half-brothers and a half-sister.

Half-brother Malik Obama said on Sunday the family sees no reason why Obama shouldn't be elected for a second term.

He was speaking during a sports tournament he organises every year in honour of their late father, Barack Obama Sr.

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Romney says voting is the 'one job left'

REPUBLICAN presidential candidate Mitt Romney is urging Americans to vote as he kicks off his last and longest day of campaigning before Tuesday's election.

Mr Romney opened Monday by rallying more than 1000 people at an airport rally in Sanford, Florida. He told them "we have one job left" and that's getting people out to vote. The crowd chanted, "one more day".

The Republican nominee started his day in Florida with the first of five planned events. Next up are two stops in Virginia, and one each in Ohio and New Hampshire.

Florida, Ohio and Virginia are all critical to his hopes of amassing the 270 electoral votes needed for victory.

New Hampshire is where Mr Romney announced his bid for president about 17 months ago.

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Ryan's small kids show big support

Republican vice presidential candidate Paul Ryan waves with his family:  daughter Liza, sons Charlie and Sam Ryan, wife Janna and mother Elizabeth. Source: AFP

LIZA likes to wear smart clothes and wave to the strangers. Charlie is "the shy one". Sam mugs for cameras every chance he can. All of this would be unremarkable behaviour for a trio no older than 10 if their father, Paul Ryan, weren't running for vice president.

A regular presence on their father's campaign in its last days, the trio of tikes fires T-shirts into the crowd from slingshots and seems to enjoy the shift from small town Janesville, Wisconsin, to motorcades across the country.

They joined their parents on Sunday to tailgate before the Green Bay Packers' game and tossed beanbags with their father - while hundreds craned for a peek at the potential second family of the United States.

They're getting quite accustomed to the attention. Even when they went trick or treating last week, national journalists came with them.

"You need two hands to hold your candy bag," Mr Ryan explained to reporters who asked him why he was carrying a scythe.

He then chased after his children through the same neighbourhood where he once went door to door for candy. Secret Service and aides, of course, were not far behind.

Candidates' children are often featured on the political campaigns, although seldom are they as young as Liza, Charlie and Sam Ryan. Mr Romney's five sons are surrogates for their father and Vice President Joe Biden's son, Delaware Attorney General Beau Biden, often appears for the Democrats.

The Ryan children haven't taken public roles, of course, but they are a familiar site at Mr Ryan's side, especially on weekends. And there is a softer tone to Ryan's remarks when his children are a few feet away in the audience.

Liza is the one who is the first off the plane, waving to anyone waiting. She dressed up as Katy Perry for Halloween and strutted past her neighbours as if the tree-lined streets were a runway.

Charlie, the elder son, is less forthcoming.

"Charlie? He's the shy one. He's hiding behind Eric Cantor right there," Mr Ryan said Saturday in Richmond, Virginia, as Charlie tried to stand behind the Republican leader.

A few hours later in Panama City, Florida, he was called "this shy guy in the family."

But it most often is 7-year-old Sam who steals the show.

After Ryan's sole vice presidential debate with Biden, Sam got bored with the staged handshakes. He wandered over to his father's seat on the debate stage and started spinning around in the office chair.

At his dad's first campaign event this weekend in Marietta, Ohio, he jumped onto the stage and earned cheers of his own while his pop walked off the stage to shake supporters' hands.

Sam starting flashing a V-for-victory sign and wide grin.

"I don't know where he gets it," mother Janna Ryan said of Sam last weekend as she chased after him in New Philadelphia, Ohio.

Right before, he hoisted his hands above his head, blocking photographers covering Paul Ryan's factory tour.

"It's kind of crazy," Mrs Ryan said as she shook her head.

Liza Ryan poses for a photo backstage before a campaign event.

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Republicans plan gun range election party

ALABAMA Republicans plan to hold their election night party at a gun range, where participants can shoot a few rounds as returns come in.

The state Republican Party is inviting supporters to the Hoover Tactical Firearms for a "victory party".

Loaded guns will be allowed only on the firing range, and a party spokeswoman says drinking won't be allowed while people are shooting.

Republicans are expecting presidential candidate Mitt Romney to easily carry Alabama.

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Brits held over stab death of soldier

THREE British tourists in Cyprus have been remanded in police custody in connection with the killing of a teenage British soldier during a disco row in the holiday resort of Ayia Napa.

David Lee Collins, 19, from Manchester, was stabbed to death during a night club confrontation with a group of British tourists in the early hours of Sunday morning.

The soldier was stationed at Dhekelia garrison with the 2nd Battalion Royal Regiment of Fusiliers. The regiment is part of British army reserve forces for Afghanistan.

The tourists, 19-year-old Mohamed Abdulkadir Osman, and two 17-year-old suspects, who cannot be named for legal reasons, are being held in custody for eight days to allow investigators to complete their enquiry.

They face possible charges of premeditated murder, conspiracy to commit a crime, possession of an offensive weapon and use of cannabis.

The London trio appeared in court looking apprehensive while Mr Osman was sporting a bruised right eye.

Murder carries a maximum life sentence in the eastern Mediterranean island.

Police said the incident occurred when four off-duty British soldiers had a confrontation with the suspects at a club in Ayia Napa.

The fracas is believed to have ignited over taunting related to Manchester-London regional rivalry, officer Stelios Christodoulou told the court.

During the heated row one of the three allegedly drew a knife injuring the 19-year-old soldier in the chest.

Mr Christodoulou said that Mr Osman had admitted to stabbing the victim but said it was in self-defence as he and his friends were allegedly attacked by the soldiers.

Although the two 17-year-olds put themselves at the scene of the crime they claim to have taken no part in the violence, he added.

Mr Collins was pronounced dead on arrival at Famagusta General Hospital in nearby Paralimni.

An official autopsy carried out on the soldier concluded he died from a "ruptured heart caused by a sharp instrument".

A switch-blade recovered at the scene of the crime was to undergo forensic tests. Eleven similar knives bought in Ayia Napa as "souvenirs" were found at the trio's hotel room, police said.

British Bases spokeswoman Connie Pierce the incident happened in an area out of bounds to soldiers because of previous incidents.

British soldiers have been banned from pubs and clubs at the centre of the resort since 1994 when Louise Jensen, a 23-year-old Danish tour guide, was abducted, raped and beaten to death by three British servicemen.

The soldiers were sentenced to life for the killing, reduced to 25 years on appeal on the grounds that they were too drunk to have planned the attack. They were released in 2006.

Ayia Napa is the island's most popular resort among younger holidaymakers, especially British tourists attracted by the buzzing night life.

Around 9000 British troops and their dependants are stationed on Cyprus as Britain retained two large strategic sovereign base areas after the island gained independence from colonial rule in 1960.

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NSW fire stations to close to save costs

THE NSW fire service will push ahead with its plan to temporarily close some fire stations as a means of reining in excessive overtime costs.

Fire and Rescue NSW Commissioner Greg Mullins says the plan will kick in immediately after the firefighters union rejected other proposals to reduce costs caused by high levels of sick leave and absenteeism.

"With just one third of the financial year gone, nearly 70 per cent of the $10 million 2012/13 overtime budget has already been spent," Mr Mullins said in a statement.

"So I have decided to take steps to reduce the blow out in overtime by extending our long standing practice of moving fire fighting resources between fire stations in a responsible way."

The policy will see up to eight Sydney fire stations temporarily shut down for a day so that firefighters can fill shortages elsewhere.

Mr Mullins said these arrangements would only be in place when minimum safe crewing levels were not being met because of firefighters taking sick or other unplanned leave.

"The few fire stations moved to cover staffing shortfalls elsewhere in metropolitan areas, will be covered by crews from other nearby stations.

The plan had originally been scheduled to take effect in August before it was suspended to allow discussion of alternative cost-saving measures.

"The implementation of these arrangements follows the Fire Brigade Employees Union (FBEU) rejection of alternative measures for reining in overtime costs," Mr Mullins said.

FBEU state secretary Jim Casey has previously warned that closing fire stations would compromise public safety.

"Houses will burn and lives will be lost," he said.

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US stocks mostly lower on election eve

US stocks have opened mostly lower on the eve of the presidential vote, with President Barack Obama and Republican challenger Mitt Romney locked neck-and-neck in the race for the White House.

"The US equity markets are moving to the downside ... with tomorrow's US presidential election draining conviction on the Street, along with festering Greek bailout uncertainty," Charles Schwab & Co analysts said.

Five minutes into trade on Monday, the Dow Jones Industrial Average was down 20.47 points, or 0.16 per cent, at 13,072.69.

The broad-based S&P 500 fell 3.38 points, or 0.24 per cent, to 1,410.82.

The Nasdaq Composite gained 3.42 points, or 0.11 per cent, at 2,985.55.

On Friday, an encouraging US October jobs report provided only a fleeting boost to stocks, with markets ending down about one per cent.

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Aust's lowest paid the third lowest taxed

AUSTRALIA'S lowest paid workers are also among the lowest taxed, a report says.

A study by chartered accountant UHY Haines Norton found that a single, unmarried Australian whose take-home pay was up to $US25,000 ($A24,141) a year had the third-lowest personal tax rate.

Only Japan and the United Arab Emirates were ahead of Australia in the study, which covered 25 countries including all members of the Group of Eight (G8) nations, as well as the emerging economies of Brazil, Russia, India and China.

UHY tax partner James Tng said the report suggested Australia had found a balance between a progressive and competitive tax system.

"There has been a general easing of the tax rates of low- and middle-income earners over the past decade, beginning with the introduction of the GST in 2000," Mr Tng said in a statement.

"Australia also wasn't forced to raise personal taxes due to the fiscal strength of our economy prior to the global financial crisis where there was little debt and very little in the way of the social security hurdles compared to other European economies."

Australians with take home pay of $US200,000 ($A193,000) were the 14th lowest taxed in the survey.

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Kenya church attack kills policeman

A GRENADE attack on a Kenyan church has left one policeman dead and 14 other people wounded in a town near the Somalia border, where similar deadly attacks took place in July, police say.

Kenya has seen a wave of grenade attacks on cities including the capital Nairobi and the key port of Mombasa since the country sent troops into Somalia in October last year to fight al-Qaeda-linked al-Shabab insurgents.

"We have one fatality," said regional police chief Philip Tuimur after a policeman died of his wounds in the attack on a church at a police camp in the town of Garissa, which lies about 140 kilometres from the Somali border.

Another police source said 14 other people were also wounded in the attack.

"We have mobilised our officers to track down the attackers," Tuimur added, without giving further details.

The grenade "ripped through the roof during prayer session", said a police officer.

The officer said the church was located inside a police camp and most of the wounded were police officers.

In July, at least 18 people were killed in attacks on two churches in the same town.

A child was also killed in a suspected grenade attack on a church in Nairobi in September, triggering reprisal attacks against the Somali community.

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Syrian rebels seize their first oilfield

SYRIAN rebels have seized one of the country's major oilfields in the eastern province of Deir Ezzor, a first for the opposition, the Syrian Observatory for Human Rights says.

"Rebels in the Jaafar Tayyar Brigade took control of Al-Ward oilfield, east of the town of Mayadin, after a siege that lasted several days," the Britain-based watchdog said.

"This is the first time the rebels have taken control of an oilfield," Observatory director Rami Abdel Rahman told AFP by phone.

The fighting on Sunday began at dawn and lasted several hours, said Abdel Rahman, adding that 40 soldiers guarding the infrastructure had either been killed, wounded or taken prisoner.

The rebels, who face the superior firepower of regime forces, also seized a tank, armoured vehicles and ammunition.

Several attacks have targeted the country's oil infrastructure since the uprising against the regime of President Bashar al-Assad broke out in March 2011.

Deir Ezzor province, which borders Iraq, contains the largest energy reserves in the country, and Al-Ward field is one of the most important in the province.

Syria produced some 4000 of barrels of oil a day before the United States and the European Union banned in August and September 2011 the import of Syrian petroleum and petroleum products to put pressure on the Assad regime.

Oil exports fell from 13,500 tonnes in the fourth quarter of 2011 to 7500 tonnes in the first quarter of 2012.

Europe had previously bought 95 per cent of Syrian oil, generating a third of the country's revenue.

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Abbott, PM still on the nose with voters

TONY Abbott will be seeking reassurance from Malcolm Turnbull that he doesn't want his job, after a poll showed overwhelming support for Mr Turnbull to return as leader of the opposition.

The Galaxy Poll published by News Ltd found 60 per cent of voters believed Mr Turnbull would be a better choice as leader than Mr Abbott, who could manage just 29 per cent support.

The news was just as bleak for Prime Minister Julia Gillard, who has to keep Kevin Rudd at bay.

The poll also showed 49 per cent of voters want Mr Rudd leading the Labor Party compared to 34 per cent for Ms Gillard.

However, Labor keeps making inroads in the coalition's lead in the primary and two-party preferred votes, according to the poll of 1003 people that was conducted over the weekend.

The poll found Labor's primary vote firmed four points to 35 per cent since the last poll in June while the coalition's support eased two points to 47 per cent.

On a two-party preferred basis the coalition held a winning lead at 53 per cent to 47 per cent, which would result in the minority government losing 20 or more seats if an election were held now.

Galaxy boss David Briggs said apart from speculation about another leadership challenge, Ms Gillard's other problem was the lack of trust.

Sixty three per cent of voters did not believe her claims she was only recruited on the day Mr Rudd was overthrown as prime minister in 2010.

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Rebels shoot down Syria warplane: locals

SYRIAN rebels have shot down a warplane in the eastern province of Deir Ezzor, the Syrian Observatory for Human Rights says, citing local witnesses.

"Rebels shot down a warplane that had been carrying out air strikes near the town of Mayadin and crashed near the town of Baqras, according to witnesses, residents and activists," the Britain-based watchdog said on Sunday.

The watchdog, which gathers its information from a nationwide network of activists, lawyers and medics in civilian and military hospitals, said initial reports indicated the pilot had been captured.

Earlier the watchdog reported that rebels seized on Sunday one of the country's major oilfields east of Mayadin, saying it was an unprecedented move in the 19-month conflict.

"Rebels in the Jaafar Tayyar Brigade took control of Al-Ward oilfield, east of the town of Mayadin, after a siege that lasted several days," the Observatory said.

"This is the first time the rebels have taken control of an oilfield," Observatory director Rami Abdel Rahman told AFP by phone.

The fighting on Sunday began at dawn and lasted several hours, said Abdel Rahman, adding that 40 soldiers guarding the infrastructure had either been killed, wounded or taken prisoner.

The rebels claimed to have downed several helicopters since the beginning of the revolt against the regime of President Bashar al-Assad, which erupted in March 2011 as a peaceful uprising and steadily militarised in the face of state repression.

But they rarely managed to shoot down warplanes.

The military has increasingly relied on its superior air power to try to reverse rebel gains on the ground.

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Handful of states decide US election

THE White House race has narrowed to a fight over fewer than 10 states, ahead of Tuesday's tight election between President Barack Obama and Mitt Romney.

Obama's strategy, with two days of campaigning to go, is to solidify his last line of defence in the industrial midwest, and to try to pluck away several insurance states from Romney's target list elsewhere.

The Republican challenger trails the president in polls in many of the battleground states but retains a narrow and plausible path to the 270 electoral votes needed to win the presidency.

Romney's camp also argues that Romney may not even be behind, arguing that state polls are based on unrealistic assumptions of the size of the Democratic slice of the electorate and underplay Republican enthusiasm.

Here is the state of play in swing states that will decide whether Obama wins a second term, or Romney recaptures the White House for Republicans.

The number of electoral votes each state has is in brackets.

OBAMA'S LAST LINE OF DEFENSE

If Obama wins Ohio, Wisconsin and Iowa, and avoids any upsets on his turf, he is all but certain to become only the second Democrat to win two White House terms since World War II.

Romney spent months trying to tear the president's midwestern "firewall" but was hampered by an Obama advertising blitz hammering him as a wealthy plutocrat who disdains the middle class.

OHIO (18)

In most recent polls, Obama led Ohio between two and five points, an ominous sign for Romney, as no Republican since the Civil War has lost the state and gone on to win the White House.

Obama touts his bailout of the indebted auto industry in 2009 and Romney's opposition to it, as one-in-eight jobs in the state are linked to the sector.

His team believes that Romney has undermined his hopes in Ohio by running ad an warning that Chrysler will outsource production of its Jeep vehicles to China, a charge the company's CEO has said is false.

Obama leads an average of polls in Ohio by the RealClearPolitics (RCP) website by 2.9 per cent.

WISCONSIN (10)

Wisconsin has been solid Democratic territory for years: the last time a Republican won the state was Ronald Reagan in 1984.

But Republicans, who managed to repel an attempt by Democrats to oust Governor Scott Walker in a recall election this year, have a solid ground game in the state, and Romney's running mate Paul Ryan is a local boy.

The president leads the RCP average by 5.4 per cent.

IOWA (6)

Where it all started for Obama. The president built his grass roots operation in the agricultural heartland state and believes that after carving out an advantage in early voting, he has the edge on Romney.

Obama leads the RCP average in Iowa by 2.5 per cent.

UP FOR GRABS

FLORIDA (29)

The Sunshine State, the largest electoral battleground, is often decisive in presidential elections, but may not be the kingmaker this time. But Obama is competing fiercely there because if he wins, it is all but impossible for Romney to take the White House.

A punishing foreclosure crisis and an unemployment rate higher than the national average have many analysts expecting Florida to swing to Romney.

Obama has led several recent polls however, and if he can get a bumper turnout in Democratic strongholds in the southern part of the state, he could pull off a surprise.

Romney leads the RCP average by 1.4 per cent.

VIRGINIA (13)

Neither side seem to know whether the state will revert to Republicans after Obama became the first Democrat to win there since 1964. Obama needs to maximise turnout among students, and African American voters around the cities of Richmond and Norfolk.

Romney will count on old school conservatives in rural areas of the state and look to cut down on Obama's margins with educated middle class voters in the Washington DC suburbs.

Currently, Romney leads the RCP average by 0.3 per cent.

NORTH CAROLINA (15)

The most likely state to move from Democratic to Republican because Obama won it by only 14,000 votes in 2008. Romney aides are certain their man will win, but the Obama camp has mobilised a massive early voting effort, which it says will keep the president competitive into election day.

Romney is up 3.8 per cent in the RCP scoreboard.

COLORADO (9)

Romney's best chance to grab a western swing state. Obama is relying on women and Hispanic voters to keep him in the game here and currently heads the RCP average by 1.0 per cent.

NEW HAMPSHIRE (4)

The flinty northeastern state with an independent streak knows Romney well after he served as governor of neighbouring Massachusetts.

Obama won this state, in 2008 and leads the RCP average this year by 1.8 per cent.

MAY BE OVER

NEVADA (6)

The Obama campaign says it has a substantial lead after early voting which means Romney needs to win big in election day voting.

Obama has a powerbase among Hispanic voters, and his trip to the bowels of a vast Las Vegas casino hotel to greet culinary workers a few weeks ago looks to have paid off.

Obama leads Nevada by 2.7 per cent in the RCP average.

ROMNEY'S LAST STAND

PENNSYLVANIA (20), MICHIGAN (16), MINNESOTA (10)

Romney will make a late swoop into Pennsylvania on Sunday after ignoring the Keystone state for much of the campaign. Democrats say his move shows desperation and a recognition that he cannot get to 270 electoral votes elsewhere. Obama leads the RCP average by 4.6 percent.

Republicans have also made big advertising buys in Democratic states Minnesota, where Obama is up by five points, according to RCP and in Michigan where Obama leads by 3.5 per cent in the averages.

Obama aide David Axelrod is so confident that he has offered to shave his trademark moustache if Romney wins any of the trio.

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Hollande backs Lebanon over Syria crisis

FRENCH President Francois Hollande on a brief visit to Beirut has pledged to "protect" Lebanon against threats of destabilisation caused by the deadly conflict in neighbouring Syria.

"France will spare no effort to guarantee Lebanon's independence, unity and security," Hollande said at a joint news conference with Lebanese President Michel Sleiman on Sunday.

France is determined "to oppose with all its strength any bid to destabilise", Lebanon, he said.

Sleiman said he reaffirmed to Hollande "Lebanon's commitment to avoid the negative repercussions of the (Syrian) crisis".

After his stop in Beirut, the French leader flew to Saudi Arabia for talks with King Abdullah on Syria and Iran, before attending an Asia-Europe summit in Laos to talk trade at a time of economic crisis.

The visit comes two weeks after Lebanon's opposition called on Prime Minister Najib Mikati, whose cabinet is dominated by powerful Syrian ally Hezbollah, to resign.

The opposition accuses the government of complicity with the regime of embattled Syrian President Bashar al-Assad, which has also been accused of the 2005 assassination of ex-prime minister Rafik Hariri.

Calls for Mikati to quit were spurred by a massive car bombing in central Beirut last month that killed top security official Wissam al-Hassan, in an attack the opposition blamed on Syria and its allies in Lebanon.

Hollande said France was ready to help Lebanon probe the murder of Hassan, and said "there can be no impunity" for the assassination of Hariri and the security official.

The Beirut stop was a last-minute decision by Hollande to express France's solidarity with Lebanon.

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