The top headlines this hour, with CNBC's Adam Bakhtiar.

Westpac Banking said it is in merger talks with smaller rival St. George Bank. Peter Morgan, client dvisor, Tolhurst gives his immediate reaction to the breaking news, with CNBC's Jeffrey James.

Sharan Burrow, president of ACTU shares insight on how arbitration has evolved over the years with different governments in charged. She also speaks to CNBC's Jeffrey James about what she hopes to see from the budget.

Japan's appetite for luxury goods remains strong despite the headwinds in its economy. LG & Prada hope to ring in the tills with their new creation -- the Prada phone. CNBC's Kaori Enjoji reports.

Asia is an important growth market, as Hans Nuetzi, CEO of Clariden Leu see tremendous wealth creation in the coming years, even decades. He tells CNBC's Maura Fogarty how the private bank plans to penetrate the region.