Stronger dollar hurts McDonald's Q3 result

TOUGH competition in the US and the weakening economy abroad was a double whammy for McDonald's in the third quarter, sending the burger chain's net income down nearly 4 per cent.

McDonald's said on Friday it was adjusting some of its plans to deal with the pressures, including stepping up advertising for its dollar menu and bringing back the popular McRib sandwich nationally in December to drive traffic into US stores.

The world's largest hamburger chain with 33,000 locations worldwide has thrived in boom and bust times by selling cheap meals and constantly updating its menu.

But global economic pressures and intensifying competition are wearing at the company, which does two-thirds of its business overseas.

"When the economic crisis began in 2008, few people thought the environment would still be as uncertain and fragile as it is today," said chief executive Don Thompson.

"It is clear however that this operating environment is the new normal. As such, our near-term focus is on stabilising and growing traffic and market share."

Thompson said revenue in stores open at least 13 months, a key restaurant metric, is trending negative so far in October.

That news sent shares down $US4.14 ($A4.01), or 4.5 per cent, to close at $88.72. The stock had been down 7 per cent since the beginning of the year.

"McDonald's is facing a lot of pressure," said Morningstar analyst R J Hottovy.

"They're seeing more competition from their quick-service restaurants and fast-casual peers in the US and facing austerity measures and macro-economic pressures in Europe and Asia."

McDonald's said its net income fell to $1.46 billion, or $1.43 a share.

That compares with net income of $1.51 billion, or $1.45 a share last year. Analysts expected net income of $1.47 a share, according to Fact Set.

The stronger US dollar hurt net income by 8 cents a share. When the dollar is strong, international sales translate into fewer dollars at home.

Revenue was nearly flat at $7.15 billion from $7.17 billion last year. Analysts expected revenue of $7.17 billion.

Revenue in stores open at least 13 months rose 1.9 per cent globally, including a 1.2 per cent rise in the US, where the company said it faced "broad competitive activity".

McDonald's is facing stiffer competition from newer chains like Panera Bread Co, which offers higher-end food in a fast casual atmosphere.

Long-time rivals such as Wendy's and Burger King are also reworking their menus, renovating restaurants and launching new ad campaigns to win back customers.

McDonald's said it will step up advertising for its dollar menu rather than its more profitable extra value menu that includes items more expensive than $1.

Hottovy, the Morningstar analyst, said focusing on the value menu was a good move for McDonald's.

"In this environment you have to give customers what they want, and across the globe consumers are squarely focused on value," he said.

In Europe, where McDonald's does 40 per cent of its business, revenue in stores open at least 13 months rose 1.8 per cent, hurt by reduced guest traffic.

In the Asia-Pacific, the Middle East and Africa, the measure rose 1.4 per cent as the company promoted limited-time offers and traffic increased.

In China, the measure rose 3.6 per cent.

Many US companies are looking to China for growth, but there is concern about a slowdown in the country.

However, Thompson said the country is a "market with significant potential" and that McDonald's is on track to open 225 to 250 restaurants there this year, with the goal of having 2000 open by the end of 2013.

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Bushfire threatens rural homes in NSW

AT least two sheds have been destroyed by an out-of-control bushfire threatening dozens of properties on NSW's mid north coast.

An emergency warning was issued to around 110 homes in Upper Lansdowne at 3pm (AEDT) on Saturday, half-an-hour after the blaze broke out.

More than 10 hectares of bush have already been burnt.

NSW Rural Fire Service (RFS) spokeswoman Bridie O'Connor said the fire was heading towards 30 rural properties on Gungully Road.

"We have got more than 20 firefighters there and they're being assisted by water bombing aircraft," she told AAP.

"Hopefully they're making good progress on it and the fire won't actually reach those homes."

Temperatures reached 38 degrees Celsius in the area earlier on Saturday, with wind gusts of up to 35km/h.

Fire crews are hoping a cool change slowly moving up the NSW coast will bring with it more favourable conditions later in the evening.

A handful of properties are also under threat from a grassfire burning out of control about 10km south of Casino.

The blaze began about midday (AEDT) and has already covered about 15 hectares.

"Grassfires can start really quickly and move three times as fast as bushfires, that's why it's managed to get to these properties as quickly has it has," Ms O'Connor said.

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Mundine slams racist Australia

WHAT started as an apology to Tasmanian Aborigines ended with outspoken boxer Anthony Mundine labelling Australia one of the most racist countries in the world and calling for the flag and national anthem to be changed.

Aboriginal leader Michael Mansell described Mundine's apology in Sydney on Friday as shallow and said his original comments directed at Tasmanian-born Aboriginal boxer Daniel Geale on Thursday were racist.

But it is Australia that Mundine says is racist, starting with the flag and national anthem - which he believes represent the White Australia policy that was abolished in 1973.

"Everyone that comes here, and a lot of my close friends and family members, feel that Australia is one of the most racist countries in the world," Mundine said.

"I want to unite the people. I want to move forward as one, as all Australians.

"We've never had any representation on the flag, yet I see representation of the Union Jack.

"Something that symbolises the invasion, the murder, the pillaging.

"I think we need to address that. It's dividing Australia rather than uniting Australia.

"... With the flag now, I can't fly it. And I want to fly it for the Australian people."

During his apology, Mundine stopped short of saying he was sorry for causing offence to Geale, something the dual-world champion says was not unexpected.

"When I heard there was an apology coming I was probably more surprised at that," said Geale, adding his wife was insulted by Mundine's comments,

"When he didn't come through with the apology, I wasn't surprised at all. It just goes to show what sort of bloke the guy is," he told Fox Sports News.

"He made some statements today which I believe didn't really help. He just changed the topic."

The pair, who will fight in January for Geale's IBF middleweight title, were promoting the bout on Thursday when Mundine questioned the Tasmanian-born Geale's Aboriginal heritage in comments that drew widespread condemnation.

"I thought they wiped all the Aborigines from Tasmania out, that's all I know," Mundine said.

"I don't see (Geale) representing us black people or coloured people. I don't see him out in the community doing what I do with people.

"He's got a white woman, white kids."

Mundine also said on Friday he wanted a government-enforced cut-off point for Aboriginality, arguing for a scaling system where first-generation Aborigines receive more assistance than those with distant Aboriginal heritage.

Mansell believes that sort of attitude is archaic and says the apology wasn't sincere.

"His comments (on Thursday) promoted the myth of the extinction of Aboriginal people and in doing so they promoted the idea that if there's intermarriage between Aborigines and white people the offspring are not really Aboriginal and so therefore genocide is complete," Mansell told ABC television.

"In this day and age, that sort of notion is just rejected across the board in white Australia and in black Australia.

"His comments were hurtful to Aboriginal people, they were racist and they were grubby, and his comments about the colour of the skin of his opponent's wife and the child of his opponent were just unforgivable.

"When you listen to the words of his apology, it's a pretty shallow apology. I just don't think he's quite got it yet."

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Hoax collar bomber behaviour 'bizarre'

PAUL Douglas Peters has no memory of attaching a fake collar bomb to a Sydney teenager's neck and now believes his action was "bizarre and stupid", a court has heard.

In the months before he confronted Madeleine Pulver on August 3 last year, Peters was suffering from "major depression" and had taken on the role of a character in a book he was writing, forensic psychiatrist Dr Bruce Westmore told a sentence hearing at the District Court in Sydney on Friday.

Peters, once an affluent banker, has pleaded guilty to breaking into the Pulver family home and attaching a fake collar bomb to Ms Pulver's neck after cornering her in her bedroom.

An attached document demanded an unspecified sum of money and said the device would explode if tampered with.

The incident sparked a 10-hour police operation before the device was confirmed to be fake.

Peters was arrested in the Kentucky home he had shared with his ex-wife, Debra Peters, in the US a couple of weeks later on August 15.

Ms Peters, who flew from the US for the hearing, cried as she described how Peters became "disconnected" in the lead-up to their marital breakdown in 2007.

But Ms Peters described him as her "partner in life", saying they had been on the verge of reconciling in May 2011 before Peters' behaviour worsened.

Peters wiped his eyes with a handkerchief as he listened to his former wife.

The court heard Peters had been "obsessed" with a book he was writing and spent hours working on it in his basement.

"I didn't want to go back to marriage with Paul and have the issues of anger and the mood swings," Ms Peters said, adding he had been drinking heavily.

"His moods were manic. One minute he'd be happy, the next he would be upset. His personality was all over the place."

As a result, Peters moved to Australia where Dr Westmore said he became "increasingly isolated".

Dr Westmore said Peters had told him his last memory of the collar bomb event was walking up the steps of the Pulver home.

"He said he did not know the victim or her family. He didn't remember the events," Dr Westmore said.

After he was prescribed medication in custody, there was a "significant and dramatic change" in Peters' behaviour, Dr Westmore said.

"I noted he appeared to express remorse," he said.

"He thought it was bizarre and stupid. He talked about a lot of his behaviour as being absurd."

Dr Westmore said he believed Peters "took on the role" of the main character of the book he was writing, a character Ms Peters described as "dark".

But crown prosecutor Margaret Cunneen, SC, noted the incident was "planned in a complex fashion", which included buying items such as an aluminium baseball bat and balaclava.

"Isn't his account of disassociation, becoming a character in a book, just a means for him to come up with a creative story to avoid admitting he was trying to extort money?" Ms Cunneen said.

"That's possible, yes," Dr Westmore replied.

Outside court, Ms Pulver's parents, Bill and Belinda Pulver, said the hearing was the first time they had come face to face with Peters.

"It all feels pretty surreal. We still have no idea why he chose Maddie, how he ended up in our house," Mr Pulver said.

Ms Pulver, who did not attend the hearing, was doing "okay", he added.

"I think it's fair to say the anniversary of the event combined with the sentence hearing was a pretty traumatic process to go through."

Judge Peter Zahra adjourned the hearing until October 31.

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$A surges after relief over Chinese GDP

THE Australian dollar hit an almost three-week high after traders breathed a sigh of relief over China's latest economic growth figures.

At 1700 AEDT on Thursday, the local unit was trading at 103.81 US cents, up from 103.13 cents on Wednesday.

During local trade, the currency, rose as high as 103.98 US cents, its highest level since October 1.

Early in the afternoon, it was announced that China's gross domestic product (GDP) growth slowed to 7.4 per cent in the September quarter.

It was the lowest rate in more than three years but retail sales and investment improved in a possible sign the slump might be stabilising.

Forex.com research analyst Chris Tedder said the market was relieved that China's GDP were not disappointing, which helped the Australian dollar rise.

"Anticipation of Chinese growth figures flat-lined Asia's commodity currencies early in the session, with investors nervous about the possible impact of the data," he said.

"Overall, China is expanding at a pace the market deems acceptable, which is important for investor sentiment and, in turn, commodity currencies."

Mr Tedder said the Australian dollar looked at if it could get to 104.00 US cents but as it neared that level investors start to sell it to take profits.

"A push through this level may pave the way for a push back towards 105.00 US cents," he said.

"Now that the Chinese data is out of the way, the near-term direction of the Aussie, and many other risk assets for that matter, may be determined by the success or failure of the upcoming EU summit.

The European Council will meet in Brussels on October 18 and 19.

At 1700 AEDT, the Australian dollar was at 82.16 Japanese yen, up from Wednesday's close of 81.11 yen, and at 79.20 euro cents, up from 78.78 euro cents.

Meanwhile, Australian bond futures prices moved lower.

Westpac senior market strategist Damien McColough said a global shift towards higher risk assets such as equities saw local bond futures prices fall for the third straight day on Thursday.

"I don't think there is a major bearish trend under way, it is just correcting some relatively strong pricing," he said.

Mr McColough said the Chinese economic growth figure was roughly in line with market expectations and many had expected an even weaker number.

He predicted that the sell-off in local bond futures was likely to stall on Friday.

At 1630 AEDT on Thursday, the December 10-year bond futures contract was trading at 96.855 (implying a yield of 3.145 per cent), down from 96.965 (3.035 per cent)

The three-year bond futures contract was at 97.450 (2.550 per cent), down from 97.550 (2.450 per cent).

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European stocks stable at open

EUROPE'S main stock markets have steadied at the start of trading, with London's FTSE 100 index of leading companies up 0.15 per cent at 5,919.97 points.

Frankfurt's DAX 30 gained 0.09 per cent to 7,401.41 points on Thursday, while in Paris the CAC 40 eased 0.02 per cent lower to 3,526.15 points.

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NSW MP could be ejected over lapel pin

IN the NSW Upper House, five millimetres makes all the difference.

If your lapel pin is wider than the prescribed 20 millimetre limit, you could be ruled out of order for breaching dress standards.

Do that three times, and the president of the Upper House could eject you from the chamber.

But this did not worry Greens MP Jeremy Buckingham, who wore a 25 millimetre wide Aboriginal flag pin back into the chamber on Wednesday, only a day after he expressed fears he could find himself expelled for breaching the parliamentary dress code.

"To be thrown out ... because of a pin the size of a thumb nail ... what planet are we on?" Mr Buckingham told AAP.

Government Whip Peter Phelps had on Tuesday called Mr Buckingham on a point of order for wearing the oversized badge, and Mr Buckingham expected a repeat the following day.

However, when no MP objected to the pin on Wednesday Mr Buckingham claimed the government had backed down.

Mr Buckingham said Mr Phelps had been "smacked down" and "told to pull his head in" by his boss, NSW Premier Barry O'Farrell.

Mr Buckingham also called for Mr Phelps to be sacked saying it was what his pin displayed, not its dimensions, that prompted Mr Phelps to raise the point of order.

"This was always about this being an Aboriginal flag pin... he picked on this pin because he didn't like it," Mr Buckingham told reporters in Sydney.

But Mr Phelps told AAP these assertions were completely untrue.

Mr Buckingham was well aware of the rules having been called on the same point of order in September, Mr Phelps said.

On that occasion Mr Buckingham chose to remove an oversized eagle badge rather than have himself ruled out of order, the whip added.

Mr Phelps said that he would not bother calling Mr Buckingham on points of order for dress standards in the future.

"He's clearly attention seeking. I'm not going to give in to his attention seeking, he's just acting like a big baby."

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Body found in Gold Coast hinterland

DETECTIVES are investigating the discovery of human remains in the Gold Coast hinterland.

The remains were found at an address on Mt Nimmel Road in Austinville around midday on Wednesday, and police, forensic officers and crime scene investigators are at the scene.

Police say the death is being treated as suspicious.

Police have confirmed the remains were badly burned by a bushfire that swept through the area last week, which is making identification difficult.

The discovery was made by two bushwalkers who alerted police.

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European stocks open higher

EUROPE'S main stock markets rose at the start of the trading on Tuesday, with London's FTSE 100 index of leading companies up 0.46 per cent to 5832.25 points.

Frankfurt's DAX 30 gained 0.66 per cent to 7309.08 points and in Paris the CAC 40 grew by 0.71 per cent in value to stand at 3444.67 points.

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Clay could be key to new hypersonic craft

HYPERSONIC aircraft that could fly from Sydney to Madrid in less than two hours could be closer to reality following Australian scientific work with clay.

Jets have already been built that can fly at up to five times faster than the speed of sound (Mach 5) but they can do it only for a few seconds.

Part of the challenge of maintaining speed is materials, University of Melbourne's Carolina Tallon and other researchers say in a paper for Fresh Science, a national science event in Melbourne.

But they have found a unique group of ceramic materials that withstand the temperatures and stresses.

Ultra-High Temperature Ceramics are promising materials for hypersonic aircraft parts because they offer good thermomechanical properties under extreme conditions and they do it without compromising the integrity of the overall structure, Dr Tallon says.

The UHTCs can also be formed into complex shapes.

Using chemistry to modify a standard method of casting ceramics in a mould, the researchers have developed an alternative to the traditional technique of forming these ceramics as blocks at high temperatures and pressures.

The new method, a form of slip casting, allows them to generate ultra-high-temperature ceramic components at lower temperatures and pressures, which save time and money because they do not require extensive machining.

"The ceramic pieces we have made are stronger and will survive to higher temperatures than those used on the Space Shuttle," Dr Tallon says.

Dr Tallon is developing the processing techniques with Professor George Franks of the Department of Chemical and Biomolecular Engineering.

Their work is part of the propulsion program of the Defence Materials Technology Centre to develop the manufacturing of advanced materials within Australia.

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European stocks stable at open

EUROPE'S main stock markets are steady at the start of trading compared with Friday's closing levels.

London's FTSE 100 index of leading companies dipped 0.06 per cent to 5,789.60 points on Monday, Frankfurt's DAX 30 edged up 0.07 per cent to 7,237.50 points and in Paris the CAC 40 dipped 0.04 per cent to 3,387.76.

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Taken 2, Looper top box office picks

ACTION, sci-fi and outlaw tales have kept movie-goers enthralled at the Australian box office, with Taken 2, Looper and newcomer Lawless in the Top 4.

Liam Neeson's action film Taken 2, the sequel to his 2008 hit, has held onto its No.1 spot for a second week, taking more than $3.4 million at the weekend.

American sci-fi action film Looper continues its good run jumping two places to sit in second place, earning more than $1.2 million.

Lawless, which was written by Nick Cave, directed by fellow Aussie John Hillcoat and stars Tom Hardy, Shia LaBeouf and Mia Wasikowska finished in fourth place in its opening week.

Madagascar 3: Europe's Most Wanted is in the top three, earning $907,912 million at the weekend for a total of more than $22.7 million at Australian cinemas.

PJ Hogan's Australian film Mental, starring Toni Collette and Anthony LaPaglia, has held on to its No.6 spot.

Meanwhile two new films to hit Australian cinemas this week included Killing Them Softly, a crime/thriller starring Brad Pitt, which debuted in seventh place.

The drama/romance The Words, starring Bradley Cooper as young writer who becomes a literary darling with his first published novel, finished its first week at No.10.

Top 10 at the Australian Box Office this weekend:

1. Taken 2 - $3.423 million (Fox)

2. Looper - $1.291 million (Roadshow)

3. Madagascar 3: Europe's Most Wanted - $907,912 (Paramount)

4. Lawless - $843,377 (Roadshow)

5. Hotel Transylvania - $767,813 (Sony Pictures)

6. Mental - $729,616 (Universal)

7. Killing Them Softly - $664,552 (Hoyts/StudioCanal)

8. Diary Of a Wimpy Kid - Dog Days $379,045 (Fox)

9. Arbitrage - $353,490 (Madman)

10. The Words - $137,936 (Becker)

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