Leon and Garry talk about the election in Britain which could produce a hung parliament. With Britain facing a massive debt of one trillion pounds, the political parties are talking about big cutbacks. Taxes, particularly VAT, are also likely to rise. Two top directors of Northern Rock, which collapsed in the global financial crisis, have received massive fines and are facing lawsuits. Still, executive salaries continue to soar. In Australia, there are signs the recovery is kicking in with the All Ords hitting 5000 for the first time in 18 months and consumer confidence tracking well, despite five interest rate rises. Demand for home loans is slipping. BHP Billiton’s proposed joint venture with Rio Tinto in the Pilbara now looks unlikely. There are also rumors that Telstra has done a deal with the Government over the NBN. And ASIC has confirmed it is investigating Rio Tinto in the wash up of the Stern Hu conviction.