Obama won't support building 'Death Star'

A DEATH Star won't be a part of the US military's arsenal any time soon.

More than 34,000 people have signed an online petition calling on the Obama administration to build the Star Wars inspired super-weapon to spur job growth and bolster the country's defence.

But in a posting on Friday on the White House petitions website, Paul Shawcross, an administration adviser on science and space, says a Death Star would cost too much to build - an estimated $US850 quadrillion ($A805 quadrillion) - at a time the White House is working to reduce the federal budget.

Besides, Shawcross says, the Obama administration "does not support blowing up planets".

The US, Shawcross points out, is already involved in several out-of-this-world projects, including the International Space Station, which is currently orbiting Earth with a half-dozen astronauts.

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Beijing air pollution hazardous

AIR pollution levels in China's notoriously dirty capital have hit dangerous levels, with cloudy skies blocking out visibility and warnings issued for people to remain indoors.

Local authorities have warned the severe pollution is likely to continue until Monday.

The Beijing Municipal Environmental Monitoring Center has reported air-quality readings between 176 and 442 from its monitors throughout the greater Beijing area since Friday.

The monitors measure the level of air-borne PM 2.5 particulates, which are tiny particular matters considered the most harmful to health.

The air is considered good when the reading is at 50 or below but hazardous with a reading between 301 and 500, when people are warned to avoid outdoor physical activities.

Monitors in urban Beijing all reported readings above 300 on Friday, and the centre real-time readings showed Beijing remained heavily polluted on Saturday with readings as high as 478 at 3pm (local time).

At the same time, monitors at the city's US Embassy recorded an off-the-chart air-quality reading of 699.

Readings are often different in different parts of the city and because the instruments used to measure the pollution levels are different.

According to rules issued by the city government in December, all outdoor sports activities are to stop and factories have to reduce their production capacity if Beijing's official air-quality reading goes over 500.

Beijing authorities are blaming a lack of wind and foggy conditions.

Several other cities, including Tianjin on the coast east of Beijing and southern China's Wuhan city have also reported severe pollution over the last several days.

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NSW man dies during surf rescue

A MAN who tried to rescue four young people from the surf got into trouble himself and died.

Emergency crews rushed to Patonga, on the NSW Central Coast, about 2.30pm on Saturday.

The four young people, including children, were visiting from Asia and staying with the man, police say.

They were swimming in Patonga Creek when they were taken out by the tide.

The man, aged in his 60s, tried to rescue them before he also got into trouble.

Onlookers came to their aid using a boat and pulled all five from the water before racing them to the shore.

Members of the public performed CPR on the man until police and paramedics arrived but the man died at the scene.

A NSW Ambulance spokeswoman said one of the four young people, an 18-year-old woman, swallowed water before she was transported to Gosford Hospital in a stable condition.

The three others who were with the victims were also transported to hospital but only to receive language translation services.

A full investigation is underway into the circumstances surrounding the incident.

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Road deaths cost South Africa 10th of GDP

FATAL road crashes cost South Africa's economy 309 billion rand ($A33.17 billion)) each year or the equivalent of 10 per cent of gross domestic product, the Transport Minister has revealed.

Accidents blamed mainly on drunk driving and excessive speeding, claimed nearly 1,500 lives in the five weeks from the start of December, according to South African police.

"Road traffic fatalities are amongst the main causes of death in South Africa," Transport Minister Ben Martins said in a report on festive season road accidents he unveiled on Thursday.

"The economic ramifications include the increase in the social development and health budgets spent. At least 306 billion rand is lost to the economy due to road fatalities each year."

About 40 per cent of the 1,462 road accident deaths recorded by the police in December and the first week of January, involved pedestrians most of whom jay-walked on the roads while drunk.

On average there are 11,000 deaths on the road each year.

The government in South Africa, which has the biggest economy in Africa, has launched a campaign to slash road crashes by half in the next seven years.

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Aust shares close lower

THE Australian share market closed lower amid profit taking on Friday and mixed messages about economic data out of Asia.

At the close on Friday, the benchmark S&P/ASX200 index was 13.5 points, or 0.28 per cent lower at 4,709.5, while the broader All Ordinaries index was down 11.4 points, or 0.24 per cent, at 4,733.8.

On the ASX 24, the March share price index futures contract was 11 points lower at 4,681, with 25,099 contracts traded.

IG Markets market strategist Evan Lucas said sentiment had turned negative following Chinese data showing that inflation was at a relatively low 2.6 per cent for 2012, but had increased in December indicating no stimulation is likely soon.

However that was offset by Japan's premier Shinzo Abe unveiling a $US226.5 billion ($A214.68 billion) stimulus package.

"That helped our market move off its lows and it ramped up," Mr Lucas told AAP.

"But we had some profits locked in, weighing on the mining sector, despite the iron ore price still sitting at $US158 a tonne."

"It was a bit of a mixed market despite strong leads from the US ... a lot of people are watching what will happen with corporate earnings week there."

The mining giants continued to fall.

BHP Billiton led the falls, losing 73 cents, or 1.95 per cent, to $36.68, Fortescue fell 12 cents, or 2.47 per cent, to $4.73 and Rio Tinto tumbled $1.30, or 1.9 per cent, to $65.80.

The four major banks were mixed.

ANZ gained 10 cents to $25.25, National Australia Bank jumped 14 cents to $25.57, Westpac lost two cents to $26.58 and Commonwealth Bank dived 23 cents to $61.38.

The spot price of gold in Sydney closed at $US1,672.72 per fine ounce, up $US14.34 from Thursday's local close of $US1,658.38.

National turnover was 1.44 billion shares worth $3.14 billion, with 492 stocks up, 402 down and 373 unchanged.

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Tokyo surges on yen, Asian shares down

ASIAN shares fell on Friday after the previous day's gains but Tokyo hit a 23-month high as the yen sank further after Japan's new leaders unveiled a stimulus package worth hundreds of billions of dollars.

While the yen came under fresh selling pressure after Prime Minister Shinzo Abe outlined his economy-boosting plan, the euro was also lifted by unexpectedly positive comments about the eurozone by European Central Bank head Mario Draghi.

However, the latest inflation data out of China was unable to impress investors as much as the better-than-expected trade figures the previous day that indicate a pick-up in the world's number two economy.

Tokyo climbed 1.40 per cent, or 148.93 points, to 10,801.57 - its highest level since February 2011, but Sydney fell 0.28 per cent, or 13.5 points, to close at 4,709.5 and Seoul lost 0.50 per cent, or 10.13 points to 1,996.67.

Hong Kong fell 0.39 per cent, or 90.24 points, to 23,264.07 and Shanghai closed down 1.78 per cent, or 40.66 points, at 2,243.00.

Abe, whose Liberal Democratic Party swept to power last month, set out a $US226.5 billion stimulus to kick-start the limp economy with plans to rebuild tsunami-hit areas, beef up the military, boost employment and end deflation.

"With the measures, we will achieve real GDP growth of two per cent and 600,000 jobs created," he said in a briefing.

Also Friday, data showed that Japan logged a bigger-than-expected 222.4 billion yen deficit in November as exports to Europe and China dropped.

The events in Tokyo sent the yen tumbling.

The unit, which hit a record high of 75 against the dollar in late 2011, has been tumbling since Abe promised in his election campaign last year that he would unveil more stimulus and also urge the Bank of Japan for more aggressive monetary easing.

The dollar climbed to 89.34 yen at one point in Tokyo - its highest since June 2010 - before easing back to 89.01 yen, but still up from 88.64 in New York late Thursday.

The euro also surged to 118.56 yen in early Tokyo trade, breaking 118 yen for the first time since May 2011. It then retreated to 118.02 yen, from 117.53 yen in New York.

The single currency rose after the ECB decided not to cut interest rates, as some observers had expected, while Draghi said the eurozone was looking in better shape than last year.

Among a long list of positives, he pointed to lower bond yields, higher stock prices, record-low volatility, strong inflows into the eurozone, a halt of capital flight in peripheral countries and a reduction of the ECB's balance sheet.

"If you look at the overall landscape taking, let's say, a medium-term perspective... you will see a significant improvement in financial market conditions," he said.

He added that the debt crisis was not yet over, but said while the overriding fear last year had been one of "contagion" and that the crisis would deepen and spread, there was also "positive contagion when things go well".

Against the dollar the euro bought $US1.3262, from $US1.3261 in New York.

In China official figures showed inflation came in at 2.6 per cent in 2012, down sharply from 5.4 per cent the year before and much lower than the 4.0 per cent target set by Beijing. And for December the rate hit 2.5 per cent, in line with expectations.

While the data gives policymakers more room to loosen monetary policy, dealers were not as excited by the news as Thursday's figures that showed a huge jump in the trade surplus.

On Wall Street the Dow rose 0.60 per cent, the S&P 500 advanced 0.76 per cent and the Nasdaq added 0.51 per cent.

Oil prices were mixed, with New York's main contract, light sweet crude for delivery in February, gaining six cents to $US93.88 a barrel in the afternoon, while Brent North Sea crude for February dropped 33 cents to $US111.56.

Gold was at $US1,670.10 at 0840 GMT compared with $US1,662.87 late Thursday.

In other markets:

- Taipei added 0.10 per cent, or 7.51 points, to 7,819.15.

HTC rose 0.73 per cent to Tw$277.0 while Chunghwa Telecom fell 0.32 per cent to Tw$94.2.

- Manila closed 0.55 per cent higher, adding 33.18 points to 6,051.75.

BDO Unibank added 0.33 per cent to 75.15 pesos and Ayala Corp. rose 0.55 per cent to 550 pesos, while Philippine Long Distance Telephone increased 1.97 per cent to 2,688 pesos.

- Wellington ended 0.31 per cent higher, adding 12.67 points to 4,131.75.

Nuplex was up 1.6 per cent at NZ$3.21, Telecom advanced 0.43 per cent to NZ$2.31 and Fletcher Building added 0.6 per cent to NZ$8.72.

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Pakistan denies killing Indian soldiers

The Pakistan Army denies that its soldiers killed two Indian troops after crossing Kashmir's border. Source: AAP

INDIA has lodged a protest with Pakistan against the alleged intrusion of Pakistani troopers into India-administered Kashmir, the killing of two Indian soldiers and the mutilation of one of their bodies.

The Pakistani military on Wednesday denied the allegations.

Pakistan's High Commissioner to India Salman Bashir was summoned to the Ministry of External Affairs in New Delhi, Indian Foreign Minister Salman Khurshid said.

A group of Pakistan Army soldiers intruded across the 740km Line of Control (LOC) that divides India and Pakistan administered Kashmir on Tuesday, the Indian Army said.

Two Indian troopers died in an exchange of gunfire, and one of their bodies was found decapitated, NDTV news channel reported citing army sources.

"We have conveyed it is unacceptable," Khurshid said.

"Our intent, our anxiety has been conveyed very clearly and we now expect an appropriate response from the other side.

"We must not and cannot allow an escalation of what was a very unwholesome event that has taken place and we hope that message has gone home."

The minister said violations of the ceasefire could derail efforts to improve bilateral relations.

"Pakistan Army's action is highly provocative," Indian Defence Minister AK Antony said.

"The way they treated the dead body of the soldiers, the Indian soldiers, is inhuman."

A Pakistani military official denied that its troops had violated the ceasefire.

"It looks like Indian propaganda to divert attention from Sunday's raid on a Pakistani post by Indian troops in which a Pakistani soldier was killed," the official said.

Pakistan accused Indian troops of attacking one of its outposts on Sunday in the Haji Pir sector and injuring two soldiers, one of whom later died.

The Foreign Ministry summoned India's Deputy High Commissioner Gopal Bagley in Islamabad on Monday to complain that Indian soldiers had attacked a Pakistani checkpoint on Sunday.

"The Indian government was strongly urged to take appropriate measures to avoid recurrence of such incidents in future," the ministry said.

India denied that its troops had crossed the LOC or violated the ceasefire.

Periodic skirmishes have been reported along the LOC since the two South Asian rivals signed a ceasefire in Kashmir in late 2003. The latest incidents occurred after a recent improvement in relations.

They have fought over the Kashmir region since their independence in 1947 from British rule. Both countries claim the region, and each controls parts of it.

The two sides have been engaged in a dialogue to resolve differences, including the border. They have adopted several measures to improve relations over the past year, including easing trade and visa restrictions and a recent series of cricket matches.

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Palmer Qld refinery at tipping point: WWF

Tailing ponds at Clive Palmer's nickel refinery in Queensland may collapse during the wet season. Source: AAP

CONSERVATIONISTS are concerned tailing ponds at a north Queensland nickel refinery owned by mining magnate Clive Palmer will burst during the upcoming wet season.

WWF Australia spokesman Nick Heath says three ponds containing toxic industrial waste at Queensland Nickel's Yabulu refinery near Townsville were already at capacity and could collapse when seasonal storms hit, creating a major environmental disaster.

"Heavy rains from the wet season could hit this area any day now, we have a ticking time bomb on our hands," Mr Heath said in a statement on Wednesday.

"The government needs to urgently reveal how it plans to fix this."

The state government says its Environment and Heritage Protection department is talking with Queensland Nickel to address water management issues.

Ingrid Fomiatti Minnesma, the department's acting executive director, says the refinery has submitted a corrective action plan.

She said the plan includes proposals to divert stormwater away from the tailings dams and to construct additional contaminated water storage capacity on the site.

"The department is reviewing the TEP (Transitional Environmental Program) as a matter of priority," Ms Minnesma said in a statement.

Queensland Nickel requires a permit from the Great Barrier Reef Marine Park Authority (GBRMPA) to release tailings into the ocean.

Mr Heath said dumping millions of litres of contaminated water into the Great Barrier Reef was not the answer.

"The tailings dam water contains metals, nutrients and nitrogen," he said.

"Not only could a release damage parts of the reef but the chemicals could enter the food chain, potentially affecting the fish we eat."

GBRMPA says it's concerned about any proposal to discharge hazardous waste from the refinery's dams into the marine park or nearby coastal wetlands.

"The refinery has known since at least May 2012 that the tailing storage facility was reaching capacity but has failed to act effectively to deal with the situation," GBRMPA written statement says.

Queensland Nickel applied for a permit to discharge into the marine park on May 30 last year.

GBRMPA said it requested more information but the refinery failed to meet the deadline and the application was considered "withdrawn".

Queensland Nickel has been contacted but is yet to respond.

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Bob Brown to lead anti-whaling fight

Sea Shepherd says its four ships will be in the Southern Ocean sanctuary ahead of Japanese whalers. Source: AAP

FORMER Australian Greens leader Bob Brown will direct the coming campaign against Japanese whaling in the Southern Ocean, taking over from the group's founder Paul Watson.

Dr Brown joined the activist group's board as a director on January 1 following his retirement from the Greens leadership and the Australian Senate last year.

He is a long-time friend of Mr Watson, a Canadian who has until now captained Sea Shepherd's flagship Steve Irwin in the group's war against Japanese whalers in the Southern Ocean.

The group has been engaged in heated confrontations with the whaling fleet and was ordered by a US court in December not to approach the Japanese ships, overturning an earlier decision in favour of Sea Shepherd.

Mr Watson on Tuesday resigned as president of Sea Shepherd's US chapter and the Australian president as a result of legal proceedings against him and the US court's injunction ordering protesters to stay at least 450 metres from the whaling fleet.

Dr Brown was appointed as a director in January and will spearhead the anti-whaling campaign Operation Zero Tolerance in the Southern Ocean this season alongside Australian director Jeff Hansen.

Current board member and adviser to Mr Watson, Marnie Gaede, will assume the role of president of Sea Shepherd in the US.

Dr Brown's new role will involve directing Sea Shepherd's ninth campaign in the Southern Ocean.

"I am honoured to serve the great whales of the Southern Ocean and Sea Shepherd in this way," Dr Brown said.

"My admiration for Paul Watson is inversely proportional to the Japanese government's anger at Sea Shepherd's success at preventing the slaughter of almost 4000 whales in recent years."

Former Liberal politician Ian Campbell joined Dr Brown in Hobart on Tuesday in support of Sea Shepherd.

"The Japanese have armed their vessels with harpoons that maim and kill whales and guns that can maim and kill humans," the former federal environment minister said.

"Sea Shepherd Australia is there to protect whales and if its vessels have to get within 450 metres of a killer ship to save a whale, then that is what will be done."

If the Japanese said they wouldn't go within 450 metres of a whale, Sea Shepherd Australia would do the same, Mr Campbell said.

Mr Watson is set to defy the US court order and is in the Southern Ocean waiting to tail the fleet from the Japanese Institute of Cetacean Research (ICR), which conducts the so-called scientific whaling program and initiated the US court action.

He is the subject of two Interpol "red notices", seeking to extradite him to Costa Rica and Japan to be put on trial for his actions in anti-whaling campaigns.

The Steve Irwin will be captained by Siddharth Chakravarty, but Mr Watson will remain on board to document this year's campaign.

The Japanese fleet reportedly left for Antarctica in late December.

Sea Shepherd claims the ICR lawsuit against it is funded by a Japanese government subsidy of some US$30 million in relief funds donated to help Japan's tsunami victims, not to hunt whales.

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Campfires under scutiny after Tas disaster

THE use of campfires could come under scrutiny in outdoor mecca Tasmania after one allegedly caused a massive bushfire in the state's Derwent Valley.

Police charged a 31-year-old man after he allegedly didn't completely extinguish a campfire near Lake Repulse.

The fire, in the farming and forested area northwest of Hobart, has burnt out nearly 11,000 hectares with several properties destroyed.

Eighty firefighters in 27 trucks and three aircraft continue to fight the blaze.

The accused man will face a magistrates court in coming months after allegedly committing what is known as a simple offence, similar in magnitude to a traffic infringement or public drunkenness.

Tasmanian Premier Lara Giddings said ways to avoid carelessness or accidents would be considered when the horrific fire situation is reviewed.

"The reality is some of the fires that have started in Tasmania have started because of lightning strikes," Ms Giddings told reporters in Hobart.

"There's nothing we can do about that.

"At least one has been accidentally lit, and we will go back and look at how you can avoid those accidents in the future.

"But that time to do those inquiries, to ask those questions is not now."

Tasmania Police confirmed on Tuesday the biggest fire, on the Tasman Peninsula, had begun accidentally at Forcett.

A tree stump burn had continued to smoulder through the root system and ignited when the south of the state hit record temperatures on Friday.

The fire has burnt 23,000 hectares, destroyed more than 120 buildings and left 100 people unaccounted for.

Lightning is thought to have started an east coast bushfire that razed up to 15 properties.

Tasmania Fire Service Chief Officer Mike Brown said campfires needed to be attended to at all times.

He said they needed to be completely extinguished the moment people walked away from them and cleared of flammable material for three metres around.

"We make it very clear about how people can use campfires and how people can use cooking appliances," he said.

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NSW residents try to stay cool in heatwave

NSW residents have flocked to the beach in an attempt to escape the heatwave that grips the state. Source: AAP

NSW residents have flocked to the beach and taken refuge in air conditioned buildings in an attempt to escape temperatures in excess of 40 degrees.

However, not everyone has been able to evade the oppressive heatwave, with paramedics responding to a spate of heat-related casualties on Tuesday afternoon.

Sydney recorded a peak temperature of 42.5 degrees, just shy of the forecast 43 degrees that would have made it the third hottest day on record.

Senior meteorologist at the Bureau of Meteorology (BoM), Julie Evans, said temperatures were expected to hover around the 30 degree mark for most of the evening before dropping on Wednesday morning.

"Ahead of the cool change, quite warm and very gusty wind conditions are expected," said Ms Evans.

"We are expecting the change to reach Sydney and Newcastle around 4am tomorrow (Wednesday)."

Much of NSW has also broken the 40 degree barrier, with Bega on the south coast the first town to hit the mark at 11.30am (AEDT) on Tuesday.

The Ambulance Service of NSW witnessed a significant increase in heat related callouts across the state, with 17 patients treated for heat exposure in Sydney alone, eight of whom were aged 70 years and over.

Many other patients presented with symptoms such as dizziness, nausea and vomiting that were attributable to the weather.

Moviegoers took advantage of reduced ticket prices on "cheap Tuesday" with more worldwide releases on offer since Christmas.

Some of the Event and Greater Union cinemas in suburban areas eclipsed their Boxing Day sales by 11.30am (AEDT) on Tuesday.

"It's a rather big day," a cinemas spokeswoman told AAP.

Extra surf lifesavers volunteered their time at beaches that would not normally be patrolled on weekdays.

Surf Life Saving NSW Lifesaving Manager Dean Storey said lifesavers were also aware that temperatures would be as high as 30 degrees late at night and into Wednesday morning.

"Today they've been planning especially for an increase in potential activity after hours," he said.

"We'd urge people to plan their swim for patrol hours."

Train passengers were warned over loudspeaker systems in carriages and at stations to travel with water and notify staff if they felt unwell.

At busy stations, staff are handing out bottled water and misting fans are in operation at some platforms at Sydney CBD stations.

And it wasn't only humans who needed help cooling down, with keepers at Taronga Zoo and the Australian Reptile Park on the Central Coast handing out frozen treats to their residents.

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Hagel draws fire as Obama's Pentagon pick

President Obama has named Chuck Hagel (L) to head the Pentagon and John Brennan (R) to lead the CIA. Source: AAP

US President Barack Obama has named Chuck Hagel to lead the Pentagon, setting up an ugly confirmation battle as Republican opponents said he was too hard on Israel and too soft on Iran.

Obama's choice of John Brennan to replace scandal-tainted David Petraeus as CIA chief was seen as more straightforward despite the counter-terrorism czar's defence of "enhanced interrogation techniques" and the US drone war.

The second term revamp of the president's national security team was expected to eventually win approval but several leading Republicans signalled they would make it tough for Hagel even though he is one of their own.

Obama paid particular tribute to retiring Pentagon chief Leon Panetta before giving ringing endorsements to the "outstanding" Hagel and Brennan and urging the Senate not to dally in confirming the important appointments.

"Chuck Hagel is the leader that our troops deserve. He is an American patriot," the president said, heaping praise on a war hero whose wounds earned him two Purple Heart medals as a soldier in Vietnam.

"When Chuck was hit by shrapnel, his brother saved him. When his brother was injured by a mine, Chuck risked his life to pull him to safety. To this day, Chuck bears the scars - and the shrapnel - from the battles he fought in our name."

Hagel was also awarded the Army Commendation medal and the Vietnamese Cross of Gallantry, the latter from the former South Vietnamese government, for his bravery while serving in the war.

Some Republicans have never forgiven him for his outspoken criticism of ex-president George W Bush's handling of the Iraq war, and his closeness to the Democratic president has seen him branded as a traitor by others.

But Obama, who wants to be remembered as a leader who ended wars abroad to set about the tricky task of building at home following a crippling recession, described Hagel as someone perfectly fitted to that mold.

"Maybe most importantly, Chuck knows that war is not an abstraction. He understands that sending young Americans to fight and bleed in the dirt and mud, that's something we only do when it's absolutely necessary," he said.

Administration appointments are often tense affairs in the US as confirmation hearings provide senators with opportunities to turn away unwanted candidates or score cheap political points, or both.

Hagel, 66, known for a fiercely independent streak and a tendency to speak bluntly, is expected to get particularly rough treatment due to his criticism of America's "Jewish lobby" and opposition to some Iran sanctions.

Republican Senator Lindsey Graham said Hagel would be "the most antagonistic defence secretary towards the state of Israel in our nation's history."

Another Republican senator, John Cornyn of Texas, said he would oppose the nomination, charging it would be the "worst possible message we could send to our friend Israel and the rest of our allies in the Middle East."

But in an interview with The Lincoln Journal Star, a newspaper in his home state of Nebraska, Hagel hit back at his critics.

There is "not one shred of evidence that I'm anti-Israeli, not one vote (of mine) that matters that hurt Israel," he said.

If confirmed by the Senate, Hagel will have to manage major cuts to military spending while wrapping up the US war effort in Afghanistan and preparing for worst-case scenarios in Iran or Syria.

Serving as an enlisted man who never joined the officer ranks, Hagel carries a particular empathy for the unheralded infantry "grunts" in the field.

As he grapples with budget pressures, the former sergeant will likely try to shield frontline troops from the effect of spending cuts.

In his typical straight-shooting fashion, Hagel has called the Defence Department "bloated" and said that "the Pentagon needs to be pared down."

Brennan, 57, may get an easier ride but is sure to face questions over his support for the use of certain "enhanced interrogation techniques" under the Bush administration and for his staunch defence of the US drone program.

The 25-year Central Intelligence Agency veteran, an Arabic-speaking Middle East expert, replaces Petraeus, who resigned in November after confessing to an extramarital affair with his biographer Paula Broadwell.

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Businesses expect to cut prices

THE first few months of 2013 will be a bargain-hunter's paradise, with more businesses cutting prices than at any point in the last 24 years.

A survey of 1,200 business owners and senior managers in the retail, wholesale and manufacturing sectors, shows a larger-than-usual number expect to have to offer price discounts to overcome the post-Christmas sales slump.

Dun and Bradstreet's selling price expectation index has fallen to a record low - indicating more businesses are planning to offer discounts during the March quarter than at any point since the survey began in 1988.

The lower prices are expected to be accompanied by weaker activity, with sales falling and businesses reducing their inventory levels, the survey showed.

Dun and Bradstreet's director of corporate affairs, Danielle Woods said the survey suggested businesses were cutting prices to stimulate spending during the difficult post-Christmas months.

"We know that there is traditionally a drop off in spending following the Christmas period as consumers play catch-up with their household budgets and debts following an often expensive holiday period," she said.

"These findings suggest that businesses are planning to negotiate the spending slump by extending discounting through the New Year and by managing their stock carefully."

Ms Woods said business' selling price expectations have been below their ten-year average since 2009.

"Although the most recent data has taken selling price expectations to a new low, it is part of a long downward trend that suggests ongoing discounting has become the new normal," she said.

D&B's economic adviser Stephen Koukoulas said the expected price cuts would help keep inflation low and added to the case for the Reserve Bank of Australia to cut interest rates again in early 2013.

"It remains likely that the inflation rate will remain near the bottom of the RBA target band (of annual inflation of two to three per cent), which will be a critical issue for the RBA when it decides future interest rate settings."

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Vic bushfire spreads to farming community

A MASSIVE bushfire could potentially double in size and hit small farming communities in Victoria's southwest, as the north of the state faces severe conditions.

There is a threat to lives and property with the southwest Victorian settlement of Drik Drik under direct attack from fire and embers, authorities said on Monday night.

An afternoon wind change swung the 4000-hectare Kentbruck fire on a path to Drik Drik, an agricultural farming area of about 30 houses.

Authorities warned the out-of-control bushfire had the potential to double in size to 8000 hectares in an afternoon with westerly to south-westerly winds of up to 40km/h on Tuesday capable of pushing the fire a significant distance.

Fire services commissioner Craig Lapsley said the immediate concern on Monday night was the Drik Drik area but the key issue would be on Tuesday.

"It will be a fire that will be pushed with winds and we believe that it's got the potential to move significant distance tomorrow, potentially block the Princes Highway and have further impacts on the rural community around Drik Drik and Dartmoor," Mr Lapsley told ABC TV.

Nearly 500 firefighters and a dozen aircraft are battling the blaze, which started on Friday and has mainly burnt through pine plantation.

The Country Fire Authority (CFA) said there had been no reports of property damage or loss of life by early Monday night, dismissing earlier rumours that at least one home had been impacted by the fire.

A spokeswoman said there was still a risk to lives and property.

A number of roads have been closed and most of the 250 residents of nearby Dartmoor have already left the town.

Mr Lapsley warned the next 24 hours would be critical, but he said the Victorian towns of Portland, Nelson, Heywood and Mt Gambier in South Australia were unlikely to be directly impacted by the fire.

"We are doing significant planning on the potential of how large it could get, that is not a scenario that we would see at this stage, where those major centres would be impacted by this fire," he told reporters at the State Control Centre in Melbourne.

"It would need a significant run of fire that is not predicted, however in this general area it could increase from 4000 to 8000 hectares in size in an afternoon so it has potential to move, but not to move to impact on major centres."

Mr Lapsley said the main concern on Tuesday was for northern Victoria, which faces yet another day of hot conditions, with total fire bans declared in the Mallee, Wimmera, Northern Country and North East fire districts.

He said there was a severe fire danger stretching along the South Australian border, the Murray River and the NSW border.

Lightning strikes have already sparked blazes in north-eastern Victoria and there are also fears that fires across the Murray River in NSW may reach Victoria if they take hold.

Northern parts of the state have experienced several days in a row above 40C.

Mr Lapsley said lightning strikes could take a day to become a fire.

The hot conditions have kept ambulance crews busy, with paramedics attending 450 heat-related incidents in the past four days including between four and seven children being left in cars each day.

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Delhi gang-rape suspects appear in court

The father of the gang-rape victim has revealed his daughter's identity to a British newspaper. Source: AAP

THE magistrate hearing the case of five men accused of gang-raping and murdering a 23-year-old medical student in New Delhi has ordered that their first appearance in court take place behind closed doors.

"The court has become jam-packed," magistrate Namrita Aggarwal told the court on Monday amid noisy protests from lawyers and a media scrum.

"It has become impossible for this court to conduct proceedings in this case."

Police have charged the men with murder, rape and other crimes that could bring them the death penalty.

The crime caused nationwide outrage, leading to massive protests.

The adult defendants have been named as Ram Singh, Mukesh Singh, Vijay Sharma, Akshay Thakur and Pawan Gupta. They are all from New Delhi.

The case is expected to be transferred to a fast-track court set up last week for their trial.

A sixth suspect who is 17 years old was expected to be tried in a juvenile court, where the maximum sentence would be three years in a reform facility.

Prosecutor Rajiv Mohan said last week that a DNA test confirmed that the blood of the victim matched bloodstains found on the clothes of all the accused.

It normally takes months for the prosecution to assemble such a case but the legal proceedings are getting under way barely a week after the student died of her injuries in a Singapore hospital.

Police have pledged "maximum security" during the hearing at the magistrates' court amid fears for the defendants' safety. A man was arrested last week as he allegedly tried to plant a crude bomb near the home of one of the men.

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Kuwait jails opposition tweeter

A KUWAITI court has sentenced an opposition youth to two years in jail for writing tweets deemed offensive to the ruler of the oil-rich Gulf state, a rights activist says.

Rashed al-Enezi, who was in the courtroom to hear the sentence, was immediately arrested by police and taken to jail, the head of the independent Kuwait Society for Human Rights, Mohammad al-Humaidi, told AFP on Sunday.

Enezi is the first to be sentenced among dozens of tweeters, activists and former opposition lawmakers who face similar charges since the government began a clampdown on the opposition in the lead-up to elections held on December 1 last year.

The opposition has been staging regular demonstrations in protest at an amendment of the electoral law and the holding of the the parliamentary vote on the basis of the amended legislation.

It has announced plans to stage a demonstration later on Sunday to demand that parliament be dissolved and the amendment to the electoral law scrapped.

Humaidi said that more than 200 opposition activists, including former lawmakers, face trial on a variety of charges, mainly criticising the emir who is protected against criticism in the constitution.

Among those are around 25 young tweeters who were arrested, interrogated and then freed on bail on charges of insulting the emir.

"The charges were not based on solid accusations but on wrong interpretation of the tweets by authorities. Most of the charges are fabricated," said Humaidi.

The same court is slated to issue verdicts on Monday on another youth tweeter and a member of the scrapped parliament on similar charges.

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Suicide attack hits Afghan tribal meeting

TWO suicide bombers have struck inside a meeting of community leaders in the southern Afghan town of Spin Boldak, causing an unknown number of casualties, local officials say.

"There has been a twin suicide bombing in the Spin Boldak council building. The blasts were inside the hall during a meeting of tribal elders," Jawed Faisal, spokesman for the governor of Kandahar province, told AFP.

"There are casualties but we don't have the numbers at this time."

Witnesses said that two explosions were heard, followed by small arms fire in Spin Boldak, a town in the restive Kandahar province close to the border with Pakistan.

The council building was badly damaged and some people were feared trapped in the rubble.

"Every Sunday the local shura (council) meet at the administrative building, that is where the attack happened," said Mohammad Ali, the border police chief in Spin Boldak, 100 kilometres south of Kandahar city.

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Crash victims 'gone too young'

VICTIMS: Zara Simons and Samantha Neilsen died in a car crash at Anstead. Picutres: Facebook Source: The Courier-Mail

FRIENDS have paid tribute to two beautiful girls "gone too young" after they died in a devastating crash at Anstead today.

Zara Simons and Samantha Neilsen, believed to be aged 18 and 16, were killed when their car struck a power pole in the early hours of this morning.

Shattered friends have taken to social networking sites to remember the pair, describing them as "beautiful" and their deaths "tragic".

"I know you're looking down on us in a better place," one wrote.

Earlier, emergency services urged drivers to slow down after the "horrific" crash.

ROAD TRAGEDY: The crash scene at Anstead. PIC: Jono Searle

Metro north inspector Mark Laing said the Forensic Crash Unit was still working at the scene to remove the small Japanese car from the power pole on Hawkesbury Road at Anstead.

"Words can't describe the scene but it is a horrific scene with a tragic loss of two young lives," he said.

Insp Laing said factors into the crash that happened about 3.30am, including speed and fatigue, would be investigated.

"It's quite evident to me that speed has been a factor," he said.

It is as yet unknown where the two young people were travelling to and from.

A neighbour said she heard the crash about 3.30am and rang triple zero.

"I raced out and have seen the vehicle and called triple 0," she said.

The local said she immediately knew it was a bad crash and stayed away after putting her own car on the scene with its hazard lights.

Insp Laing urged all drivers to learn from the tragic crash.

"It's not just young drivers either, it's all ages. We keep repeating, please, slow down." 

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