The Federal Court has heard Speaker Peter Slipper is deeply distressed over sexual allegations made by former adviser James Ashby.

Justice Stephen Rares has started hearing the civil case that political adviser James Ashby lodged against Mr Slipper and the Commonwealth.

Mr Ashby alleges Mr Slipper only hired him in order to pursue a sexual relationship.

The local sharemarket is on track for its lowest close this year, as worries about the stability of Greece and Spain spark a sell off.

The Federal Court has heard Speaker Peter Slipper is deeply distressed over sexual allegations made by former adviser James Ashby.

Justice Stephen Rares has started hearing the civil case that political adviser James Ashby lodged against Mr Slipper and the Commonwealth.

Mr Ashby alleges Mr Slipper only hired him in order to pursue a sexual relationship.

The local sharemarket is on track for its lowest close this year, as worries about the stability of Greece and Spain spark a sell off.

A report has found people who live in the city fare better in terms of health, education, employment and wealth than their rural counterparts.

The competition regulator will investigate clothing importers who are making deals with international online stores to inflate prices for their Australian customers.

An investigation into animal cruelty in Indonesian abattoirs has recommended action be taken against two Australian exporters.

NSW teachers have held a stop-work meeting, voting to ramp up industrial action unless the state government reviews its education reforms.

Queensland coach Mal Meninga cancelled a scheduled training run on Friday to keep his Origin players fresh and relaxed before game one.

Casey Stoner has shocked the motorcycle racing world by announcing he is retiring because he has "lost the passion" to continue.