THE NEWS WRAP: Murdoch to “hit back” over sabotage allegations

News Corporation chairman Rupert Murdoch has indicated he is preparing to “hit back” at what he describes as the “lies” directed towards his business.

The BBC and The Australian Financial Review have both made allegations that News Corp has been involved in sabotaging its pay television competitors.

Federal Opposition communications spokesman Malcolm Turnbull says News Limited is free to take legal action over the allegations.

“News Limited has the right of every person who has been defamed to go to court,” Turnbull said.

Palmer settles with Hyatt

Businessman Clive Palmer has paid the Hyatt group an undisclosed amount to end its management of his Sunshine Coast resort.

Palmer placed the Coolum resort into voluntary administration last month after a dispute with Hyatt over its management.

A joint statement says all differences have been resolved and negative allegations withdrawn, following Palmer’s confidential payout to Hyatt.

Costello to aid mining states

Peter Costello is set to become the new weapon for the resource-rich states of Queensland and WA in the battle with the Gillard Government over the GST and the carbon tax.

The former federal Liberal treasurer will head a commission of audit for the newly installed Newman Government in Queensland.

Costello said he was eminently qualified to advise the Queensland government on the overhaul of the GST because he helped devise the formula of horizontal fiscal equalisation in 2000, which determined the carve-up of revenue between the states.

Overnight

The Australian dollar is higher as US stock markets rebound from earlier falls.

At 7am, the Australian dollar was trading at 103.80 US cents, up from 103.63 US cents on Thursday afternoon.