AUSTRALIAN NEWSPAPER HIGHLIGHTS - OCT 2, 2006.

SYDNEY, Oct 2 Asia Pulse - Highlights of today's newspapers:

THE AUSTRALIAN FINANCIAL REVIEW

- There are calls on federal and state governments to rein in the estimate $10 million a week spent on highly paid consultants, with inadequate monitoring of the expenditure; Government in late talks with Telstra over terms of share sale amid fears an escalation in their conflict would jeopardise the sale; Media regulator ACMA to get powers to prevent big mergers; Energy security is fuelling Japan's interest in Australian gas projects.

- News summaries.

- Federal building and construction regulator warns that contractors who abide by the Victorian code of practice risk missing out on projects; Australia's wealthy expanded faster than any other region apart from Latin America in 2005; Bloggers of all political persuasions are ramping up the battle for voters even though the Victorial election does not start formally until the end of the month; US accused of regularly blocking allied acccess to intellingence on Iraq.

- US data likely to confirm slower pace, heightening speculation the Federal Reserve will not raise interest rates; US-EU anti-terrorism deal remains up in the air as partners can't agree on issues of privacy and security; New Japanese Prime Minister to hold summit with China's leaders - report.

- Wall Street's bulls will be hoping their calls for a continuation of the Goldilocks economy in the US are met, as some key components of the economy come under the spotlight this week.