The Vatican is quietly conducting two sweeping investigations of American nuns, a development that has startled and dismayed nuns who fear they are the targets of a doctrinal inquisition.

Federal Treasurer Wayne Swan has ridiculed recent comments by Opposition spokesman Joe Hockey about tax cuts.

The tax breaks promised before the election start from today.

Yesterday Mr Hockey said it would have been legitimate for the Government to scrap them because of the global financial crisis.

"There would have been a legitimate justification for the Government to say 'our economic recovery will be slower if we are running a big deficit', and I think it should have been considered as part of the mix," he said.

Malcolm Turnbull has sought refuge from negative opinion polls and the OzCar affair in the politically safer territory of Afghanistan.

The federal Opposition leader visited Australian Defence Force members in Kandahar and Tarin Kowt that they have the support of all Australians during a visit to the strife-torn country.

The Liberal Party risks being labelled weak and pathetic if it replaces Malcolm Turnbull as Opposition Leader on the back of poor opinion polls, a Coalition frontbencher says.

Opposition MPs have today rallied behind Mr Turnbull following a barrage of dreadful poll data.

A pastor in the US state of Kentucky told his flock to bring handguns to church in what he said was an effort to promote safe gun ownership.

Pastor Ken Pagano told parishioners to bring their unloaded guns to New Bethel Church in Louisville for a service celebrating the right to bear arms.

He said he acted after church members voiced fears the Obama administration could tighten gun control laws.

The Opposition's Treasury spokesman, Joe Hockey, has dismissed claims he is jockeying for the leadership position.

An article in The Australian newspaper claims senior Liberals believe he has been too keen to distance himself from the OzCar affair, rather than stand by leader Malcolm Turnbull.

But Mr Hockey says it is a beat-up.

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Mr Turnbull has refused to say whether Mr Grech has been supplying him with information
The Treasury official at the centre of the OzCar affair, Godwin Grech, has supplied unofficial information to the Coalition, dating back to its days in government, the ABC has learned.

The revelation lifts already intense pressure on Opposition Leader Malcolm Turnbull to explain how much he knew, and when, about the email forgery that has backfired so spectacularly.

Independent Senator Nick Xenophon says his bid to defer a vote on an emissions trading scheme is not designed to delay action on climate change.

He wants debate on the scheme to be pushed back to the next sitting period in August to allow more economic modelling to be done.

Senator Xenophon says the Parliament should consider alternative designs for the scheme that would have less economic impact.

But he says a decision should be made during the next sitting week.

Australian Prime Minister Kevin Rudd has challenged the opposition to prove claims that he abused his position to help a friend's car-dealing business.

Mr Rudd said opposition leader Malcolm Turnbull must resign if he fails to produce an e-mail on which the claims are based by Monday afternoon.
Mr Turnbull has called for the prime minister to stand down, accusing him of lying to parliament over the issue.

Indian Prime Minister Manmohan Singh said on Thursday that the BRIC economies are a factor of stability and growth amid the global economic crisis when commenting on the first BRIC summit meeting in Russia earlier this week, according to local media reports. Singh told Indian journalists that there was a need for reforming the present systems of global governance and international financial system.

He expressed his hope that the BRIC countries -- Brazil, Russia, India and China -- would not remain only a "talk-shop" and they would work together so that their voice is heard in the global arena.

A Republican Senator who once denounced President Bill Clinton for his dalliance with Monica Lewinsky has confessed to an affair with a campaign aide whose husband also worked for him.

John Ensign of Nevada, 51, an evangelical Christian who had presidential ambitions, read out a statement in which he admitted to having "violated the vows of our marriage" to his wife Darlene.

In his long-awaited policy speech on Sunday, Israeli Prime Minister Benjamin Netanyahu accepted the creation of a Palestinian state - but only on condition that it was demilitarised, with no army, no control of its air space and no way of smuggling in weapons.

And he refused to halt the expansion of Israeli settlements, which US President Barack Obama demanded earlier this month in Cairo should be stopped. Netanyahu said settlers were not "enemies of peace" and that he backed the "natural growth" in existing settlements.

A Pandemic Emergency Committee meeting in Sydney has left Australia's influenza alert at the contain level, despite the World Health Organisation declaring the swine flu virus a global pandemic.

Victoria's alert level was upgraded to 'modified sustain' last week.

More than 1,300 people have been confirmed as having swine flu in Australia; six people diagnosed with the virus are in hospital but underlying medical conditions may have exacerbated the virus's effect on them.

Health Minister Nicola Roxon says there is no need to cancel sporting events and other public gatherings.

The Federal Government is continuing its attack on the Commonwealth Bank for increasing its home loan rate.

The bank announced on Friday that it would increase its standard variable rate by 0.1 per cent.

Treasurer Wayne Swan and Prime Minister Kevin Rudd have both condemned the move.

Mr Rudd says the Commonwealth Bank should reconsider its position.
"Everyone in Australia is pulling together to try and lift the country out of the global recession," he said.

"I'd say to the Commonwealth Bank, join us and don't head in the wrong direction ... I think it would be good if everyone was on board for that."