US military to deploy spy plane in Japan

The US military is reportedly deploying a spy plane in Japan to boost surveillance on North Korea. Source: AAP

THE US military is set to deploy an unmanned spy plane in Japan to boost surveillance capabilities as North Korea apparently readied for missile launches, a newspaper report says.

The Global Hawk will be stationed at the US airbase in Misawa, northern Japan, in the first ever deployment of the aircraft in the country, the Sankei Shimbun reported, quoting government sources.

The US military informed Japan last month about plans to deploy the plane between June and September but may bring the date forward, it said, following reports about North Korea's preparations for missile launches.

South Korea's Yonhap news agency, citing a top South Korean government official, said North Korea had loaded two mid-range Musudan missiles on mobile launchers and hidden them in underground facilities near its east coast.

The Musudan have never been tested but are believed to have a range of around 3000km, which could theoretically be pushed to 4000km if they were to be given a light payload.

That would cover any target in South Korea and Japan, and possibly even reach US military bases located on the Pacific island of Guam.

Tensions have soared on the Korean peninsula since December, when the North test-launched a long-range rocket. In February, it conducted its third nuclear test and drew fresh UN sanctions.

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Woman's body found at Ballarat

A woman's body has been found at a house in Victoria's west. Source: AAP

A WOMAN'S body has been found at a house in Victoria's west.

Police were called to Doveton Street, Ballarat, where the woman's body was found at 11.15am (AEDT).

Homicide Squad detectives are also attending the scene.

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Abbott transport priorities wrong: Greens

OPPOSITION Leader Tony Abbott's plan to fund road and not urban rail projects shows 19th century thinking that will turn inner Melbourne into a rat's nest, the Australian Greens say.

Mr Abbott on Thursday said if elected to government, the coalition would not fund urban rail projects such as the cross-city Melbourne Metro rail tunnel.

However, Mr Abbott did commit to funding the East-West road link, which would connect the Western Ring Road to the Eastern Freeway.

Greens MP Adam Bandt said the opposition leader had the wrong priorities.

"If Tony Abbott is elected, it will be a disaster for inner-city Melbourne," he told reporters in Melbourne on Friday.

"The suburbs that we love and that make Melbourne consistently one of the world's most liveable cities will be turned into a rat's nest of on and off ramps.

"To suggest the federal government doesn't have a role in building public transport in major cities like Melbourne is 19th century thinking."

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Shell sale 'could lead to fuel volatility'

Plans to sell Shell's Geelong refinery could lead to dependence on volatile foreign fuel markets. Source: AAP

AUSTRALIA'S fuel supply could be exposed to foreign volatility in the wake of Shell's plans to sell its Geelong refinery, say industry experts.

The global oil giant says it will sell the refinery with a view to keeping it open, but may convert it to a fuel import terminal if a buyer isn't found by the end of next year.

Melbourne University economics lecturer Dr David Byrne says any threats to local refineries mean more dependence on potentially volatile foreign markets.

"You might be exposing yourself to risk inherent to refining fuel in foreign markets," Dr Byrne told AAP.

"When you refine domestically you might have more control over that in a situation of a crisis."

NRMA director Graham Blight said political instability along supply routes could put Australia's fuel supply at risk.

"If our supplies stop I can assure you this country is in trouble," he told Fairfax Radio.

Mr Blight said he doubted importing fuel would lead to cheaper prices, with Australia at the end of long trade routes.

Dr Byrne said while foreign refining could bring retail prices down, transport costs had to be taken into account.

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Data strong, but not enough for high fives

A BATCH of economic figures on Thursday brought good news, but it's still too early for high fives.

Retail trade and home building approvals rose more than economists expected, while a survey showed the troubled services sector has stabilised.

Despite that, convincing evidence of a sustained recovery in the non-mining parts of the economy remains elusive.

The headline act was the seasonally adjusted retail trade figures from the ABS, which showed a strong 1.3 per cent rise in February, adding to a 1.2 per cent increase in January.

To put that into perspective, the increase in January and February combined, 2.5 per cent, has already beaten the 2.3 per cent rise recorded over the whole of 2012.

These figures have too much volatility - monthly variations not related to underlying trends of regular seasonal patterns - to be confident that the gains will be sustained.

But they at least show consumers are willing to spend, something which has been a doubtful proposition in the years since the 2008 global financial tilted the balance away from spending and toward saving.

The Australian Bureau of Statistics also released its monthly count of home building approvals from local government.

The headline figure also looked strong.

Approvals rose by 3.1 per cent in February, the latest zag in a zig-zag pattern that's lasted for most of the past year.

The number of approvals was boosted by a rash of public sector housing approvals, dominated by Western Australia.

Even with that one-off boost, the number of residential approvals was only five per cent up from the past year's depressed average.

And it was just two per cent higher than the average of the preceding five years, a period that included the global crisis.

So the February rise can't be seen as evidence of either strength in the building sector or of an upward shift in the trend, which still looks fairly flat.

A routinely neglected aspect of the approvals figures is the value of non-residential approvals, which fell by 11 per cent in February.

That's a big fall but, by itself, no cause for alarm given the extreme volatility of this series.

But the bureau's estimate of the current trend is flat.

And the February level was six per cent below the past year's average and 14 per cent under the average for the past five years.

So, looking at building as a whole, things aren't quite as rosy as the minor rise in home building approvals might suggest at first glance.

Elsewhere, there was some encouraging news from the Australian Industry Group-Commonwealth Bank survey of the services sector.

The survey's main measure, the performance of services index, rose to 49.6 in March, its highest level since January 2012.

It is now tantalisingly close to the 50 mark which is the dividing line between expansion and contraction in the sector.

So things aren't as bad as they were.

More good news, of a sort.

AA

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Convicted Aussie mum set to return home

THE Australian mother convicted in Canada of drowning her two young sons in a bathtub is set to be released from hospital and deported, outraging her former husband who fears she could kill again in Australia.

The prospect of Allyson McConnell, 34, walking free from the Alberta hospital on Thursday and flown to Australia has also raised concerns with Alberta authorities, who hope to appeal what they deemed as a lenient sentence.

"Will anyone there know about the murders she committed here?" former husband, Curtis McConnell, said in a statement released to the media.

"Being only 34-years-old will she start a new family and have another child in her care?

"I am appalled that a person who kills two innocent children and leaves their dead bodies (for her husband to find) next to the wedding ring she hadn't worn in months has only served 10 months."

McConnell was sentenced to six years jail for the 2010 drowning of 10-month-old Jayden and two-and-a-half year-old Connor in the bathtub of the family home in Millet.

She was charged with two counts of second-degree murder, but a judge convicted her of the lesser charges of manslaughter because it was found McConnell, who suffered depression, did not have the requisite intent for murder.

While McConnell was sentenced to six years' jail, it is standard in Canada for prisoners to serve just two-thirds of their sentence.

McConnell also received credit for time in custody since her arrest.

The Crown is appealing her acquittal on the murder charges and is asking for a 12-year jail term, but the appeal is yet to be heard.

Alberta prosecutors are asking the Canadian government to keep McConnell in Canada, but the Canadian Border Services Agency has confirmed McConnell will be deported to Australia on release.

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Ford, Chrysler post good US sales

Ford posted its best performance since 2007 as sales rose six percent to 236,160 vehicles in March. Source: AAP

FORD and Chrysler have reported their best US sales performances since 2007 as analysts predict the auto industry as a whole will also rack up its biggest month in five years.

Chrysler said on Tuesday its sales rose five per cent to 171,606 vehicles in March despite limited inventory of some of its best-selling models, including Jeep and heavy-duty Ram trucks.

It was the company's 36th consecutive month of gains in year-over-year sales, and the strongest sales since December 2007.

Ford posted its best performance since May 2007 as sales rose six per cent to 236,160 vehicles in March.

Toyota sales rose one per cent to 205,342 units in March.

"The auto industry continued its string of impressive monthly results, and at Toyota we had our best month since Cash for Clunkers in August of 2009," said Bob Carter, head of automotive operations for Toyota Motor Sales, USA.

"A strong first-quarter close and increased consumer confidence continue to position the auto industry as a leader in the economic recovery."

The strong sales come after years of painful restructuring and the collapse of demand following the 2008 financial crisis which pushed General Motors and Chrysler into government-backed bankruptcies.

Automotive website Edmunds.com forecast that total industry sales will rise 5.3 per cent from March 2012 once all automakers have reported to a seasonally adjusted annual rate of 15.6 million vehicles.

With total sales forecast at nearly 1.5 million vehicles it would be the best performance in sheer numbers since May 2007, and would be a 24 per cent gain from February.

Since auto sales vary significantly from month to month because of traditional shopping patterns, seasonal sales and product launch schedules, analysts focus on the seasonally adjusted sales pace.

March is expected to be the fifth consecutive month with a sales pace over 15 million and Edmunds upped its forecast for 2013 to 15.5 million vehicles.

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Perth cinema's mouse woes go back years

A RODENT infestation at a Hoyts cinema in Perth could date back to more than a decade ago when mice were invading the popcorn room, a former employee says.

Hundreds of outraged film fans have taken to the Hoyts Facebook page to complain about mouse and rat sightings at the cinema complex.

The outcry came after patron Sue Donnelly posted a photograph on Facebook on Monday of a mouse eating her food as she watched a film at the Hoyts Carousel cinema at the weekend.

Ms Donnelly wrote: "My granddaughter flicked away two mice.

"Upon complaining at the front desk about the infestation I was told the problem was already known about and nothing could be done by an exterminator for two weeks.

"To add to my disgust, when I returned to my seat one of the vermin was eating her chips."

A former employee at the cinema told AAP on Wednesday there was a rodent problem as far back as 2000.

"We used to chase them in the cinema when cleaning," the former employee, who asked to remain anonymous, said.

"The popcorn room was full of them, with the bags of popcorn made days before it was served and stored in rooms, which the mice chewed through and ate daily."

The former employee, who worked at the complex for four years, said the manager at the time knew about the problem but did not address it.

A WA Health Department spokeswoman told AAP the department had not received any official complaints about mice in any cinemas and said it was a local government issue.

City of Canning commissioner Linton Reynolds confirmed on Tuesday that the council had received a complaint six months ago, but said the latest incident was the first report of a mouse eating someone's food.

Inspectors went to the site on Tuesday afternoon.

Hoyts is facing a backlash from cinemagoers who say they would rather see the complex closed down and fumigated before they would consider returning to the facility.

Many are concerned about the health risks of rodents getting into food at the cinema.

But some see the funny side, and the "Hoyts Mouse" now has a Twitter account.

"Might enjoy a screening of The Croods this morning. Anything with Emma Stone is great. Plus kids always drop good food," the Hoyts Mouse tweeted on Wednesday.

Hoyts issued a statement on Tuesday confirming there were mice in the Hoyts Carousel La Premiere cinema.

"We would like to ensure patrons that Hoyts has been undertaking preventative measures at this site," it said.

"Hoyts will immediately conduct incremental reactive measures to assist in eradicating the problem."

The company said every effort was made to ensure all its cinemas met stringent standards set by local council health regulators.

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Dart Energy slashes costs amid CSG changes

DART Energy shares have tumbled to record lows as the company cuts costs and slashes jobs in response to government crackdowns on coal seam gas projects.

Dart will close offices and axe 70 per cent of its workforce, taking the number of employees to 50, as it aims to slice costs by nearly two thirds.

It is also suspending field operations at Fullerton Cove, near Newcastle in NSW, and switching focus to developing CSG projects in Britain and China.

The moves come after the NSW government announced tough new coal seam gas regulations, including a ban on CSG drilling near homes.

The federal government also plans new environmental laws covering coal and CSG projects amid public concerns about their impact on water resources.

Dart's shares tumbled by more than a third after it revealed its restructure plans on Tuesday.

Chairman Nick Davies said he was disappointed with the uncertainty created by government decisions.

"The consequence is that investment is leaving the country, field operations are being suspended, Australian jobs are being lost, and the impending energy crisis in NSW is not being addressed, and indeed, will only get worse," he said.

He said this was in direct contrast to Britain's approach to CSG projects.

Dart's decision to suspend operations at Fullerton was made despite the recent lifting of a court injunction on the company sinking exploratory wells there.

Anti-CSG group Lock The Gate Alliance welcomed the suspension, saying it would protect local drinking water supplies.

"The people of Fullerton Cove have fought bravely to defend their community from a global gas company, and for now at least, they have won," said alliance coordinator Steve Phillips.

Meanwhile, Dart has cancelled plans to float its international arm.

And in a management shakeup, Dart will have just one chief executive heading the entire company instead of separate bosses for its international and Australian arms.

The head of Dart's international operations, UK-based John McGoldrick, will become the company's new chief executive.

Dart's shares were four cents lower at 6.5 cents at 1519 AEDT.

Options Xpress market analyst Ben Le Brun said the sharp fall in Dart's shares could have been a kneejerk reaction as many CSG players will come under pressure as a result of the new government restrictions.

"The market likes the idea of cutting your workforce and getting costs out as much as possible but playing against that is the government restrictions on coal seam gas projects so maybe the market's giving that more of a weighting," he said.

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Brazil cops investigate rape of US student

BRAZILIAN police have arrested a third suspect in the rape of an American student who was assaulted as her French boyfriend was forced to watch during an horrific six-hour abduction aboard a Rio minibus.

The crime raised fears ahead of World Youth Day in July, when the city is set to welcome Pope Francis and some 2.5 million young people. Brazil is also hosting the 2014 World Cup and 2016 Summer Olympics.

Two male suspects in the case, aged 20 and 22, were detained over the weekend, a police spokesman said. A third suspect was detained late Monday in the Rio metropolitan area, according to local media.

"She is a US national and he is French; they were studying in Rio," a French consular source told AFP, in reference to the victims.

The American, 21, and the Frenchman, 23, according to local media, boarded a minibus around midnight Saturday in touristy Copacabana headed to Lapa, a trendy area home to popular bars and dance clubs.

Two men who also boarded the minibus ordered the rest of the passengers to get off and handcuffed their victims.

They then proceeded to beat the young man with a metal bar and rape the young woman as they rode around the city, the special police for aid to tourists (DEAT) said.

After seeing photographs of two of the detained suspects, a young Brazilian woman who was raped on March 23, also in a minibus, identified them as her assailants, DEAT added.

The driver of the minibus may also have taken part in the rape of the American, local media reported.

The G1 news website said the Frenchman suffered an eye haemorrhage and a fractured face while the American's nosed was broken during the assault.

Minibuses are part of Rio's transportation network and, in a city of six million inhabitants, are often considered alternative means of getting around.

While some do have permits, many others are illegal and often take to streets in poor condition and packed with people.

Violence has declined in Rio following efforts by authorities to reclaim dozens of favelas once controlled by drug traffickers or militias, but the city remains rough when compared to Europe or the United States, with huge disparities between the rich and the poor.

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