AAP

Australians shares fell for a second straight day as investors were unwilling to establish positions into the weekend amid weak overseas leads, and retail stocks continued to bled.

Pricing carbon pollution will unleash a new wave of investment in clean energy technology and build a stronger economy for Australia for years to come, federal Treasurer Wayne Swan says.

Shares in iron ore miner Fortescue Metals Group eased after a higher than expected jump in June quarter costs.

Tiger Airways passengers with flights booked for August can cancel their tickets without being penalised, while the grounded airline waits to hear when it will be cleared to fly again.

Four past Australians of the Year are petitioning the federal government to offer better protection of the fragile waters off the southwest coast of WA.

BHP Billiton expects to undertake more acquisitions in the booming US shale gas sector after its $US15.1 billion ($A14.13 billion) takeover of Petrohawk Energy, chief executive Marius Kloppers says.

The Australian sharemarket opened lower this morning, dragged down by BHP shares following negative offshore leads.

US stocks fell on Thursday as the market worried about a possible US debt default if Congress fails to act soon to raise the borrowing limit.

The Australian dollar has started the trading day slightly weaker, after US Federal Reserve chairman Ben Bernanke said the central bank was in no hurry to implement another round of stimulus measures.

Gillard open to media probe – The Aus; Job and housing fears a drag – The Fin; Critics slam 'rushed' modelling – The Aus; Minister promises to consult industry on rule changes – The Aus; $4.1 billion charge of the light rail brigade – The West

Calls for an inquiry into media behaviour are growing in Australia as the impact of the News of the World phone hacking scandal travels beyond Britain.

US miner Peabody Energy and the world's biggest steel maker, ArcelorMittal, have agreed to improve their joint $4.7 billion takeover bid for Queensland-based coal miner Macarthur Coal.

A last minute rally wasn't enough to lift Australian stocks back into the green at the close of trade today.

A farmers' rally in Perth has been told that "mung bean" activists will continue to plot the destruction of Australia's live cattle export industry.

Mining colossus Rio Tinto has reported a rise in second quarter production of its cash-cow commodity, iron ore, despite heavy rain denting its March quarter performance.

The federal opposition insists its direct action plan to tackle climate change is better than Labor's carbon tax, despite criticism from economists.

David Jones says a dramatic plunge in consumer confidence among well-heeled shoppers, exacerbated by carbon tax fears, has led to a record fall in sales.

Shares in Iluka Resources rose after the minerals sands miner flagged an increase in its full year production target.

Online DVD rental and movie subscription company Quickflix posted significant revenue and subscriber growth last financial year and wants one million customers within five years.

Shares in News Corporation in Australian have gained more than four per cent after Rupert Murdoch dropped his bid for British pay TV giant BSkyB.

Prime Minister Julia Gillard says the carbon tax will pass parliament and is more ambitious and better than her predecessor's scheme.

Brazilian mining giant Vale is considering legal action to end an export impasse with its Queensland coal mine joint-venture partner Aquila Resources.

Significant losses in retail stocks have sent the Australian share market lower, due to a profit downgrade from David Jones caused by a rapid deterioration in trading conditions.

The Australian dollar has started the trading day over one US cent higher, benefiting from a weakening US currency and strong Chinese growth figures.

US stocks rose after China reported robust second-quarter growth and Federal Reserve chairman Ben Bernanke said further stimulus might be needed to boost the ailing US recovery.

New rigour for live sheep trade – The Aus; Probe into M&A dealmakers – The Fin; Labor to rush carbon tax into law – The Fin; ConocoPhillips deal affirms WA shale gas – The West; Gas plan an 'international disgrace' – The West

Prime Minister Julia Gillard has rejected claims that her government will stop investing in carbon capture and storage, saying a funding stream will operate separate to the carbon tax.

Julia Gillard and Tony Abbott have been confronted in public by critics as they continued their election-campaign-style pitch to the nation on action against climate change.

The pilots of a Tiger Airways flight flew at an unsafe low altitude without permission as they came in to land at Melbourne's Avalon Airport last month.

Pressure is mounting on the state's Fire and Emergency Services Authority to explain the appointment of a second senior employee who left his previous job surrounded by controversy.

A slump in consumer confidence stands as a warning that fear of the carbon tax is emerging as a risk to the economic outlook.

Australian shares closed higher after defying weak offshore leads and receiving a boost from better than expected Chinese economic growth data.