10 things you need to know this morning in Australia

The F-35 has got more problems.

Happy Friday!

1. The ASX200 is looks set for another sharp fall this morning, after US stocks fell by another 2% overnight. Losses were led by energy and financial stocks, with smaller falls in the big tech companies. The S&P500 has now fallen below its 200-day moving average. Since Tuesday, the Dow Jones industrial average has shed more than 1,300 points. Here’s a look:

Markets Insider

Sam Jacobs has more from markets here.

2. Should this sell-off have come as a surprise? Probably not: there have been a range of risks building in the global economy and financial markets, ranging from the uncertainty over the impact of the US-China trade war and the rising interest rate environment to high equity valuations and increased complexity in markets with products like ETFs and the rise of private credit. Jim Edwards outlines 11 reasons why markets are in turmoil – and who is to blame.

3. The US military has grounded its entire fleet of the fighters that are supposed to provide Australia’s next-generation air power capabilities. After an F-35 crashed in South Carolina last month, the Pentagon has decided to ground its entire fleet of the planes while it carries out checks on a fuel tube. The inspections are only expected to take a maximum of two days, but it’s another setback for the project. Australia is scheduled to take 72 of the fighters over the coming five years.

4. A Russian cosmonaut and a US astronaut on board a Soyuz rocket headed for the International Space Station had to return to earth in a “ballistic descent” after boosters failed at launch in the skies over Kazakstan on Thursday. The rocket failed high in the atmosphere and had to return to earth on a steep trajectory. Video showed the rockets abruptly cutting out and the astronauts being violently jerked within the capsule before they landed and were recovered by helicopter.

The failure has thrown astronaut access to the International Space Station into limbo — here’s why.

5. Just as it looked like Theresa May was starting to make progress on a Brexit deal, it now looks like the critical alliance that props up her government is in danger of falling apart. The Democratic Unionist Party – the small group of Northern Irish MPs who maintain May’s majority in the House of Commons – is furious about the new proposals that would mean increased border checks between Northern Ireland and the rest of the UK. The party, which has nine MPs in the Commons, reportedly plans to vote against May’s upcoming budget – which would be a massive humiliation for the British PM and lead to calls for her resignation. Adam Payne has the details.

6. Kanye West called himself a “motherf—er” in the Oval Office and gave Trump a massive hug during his bizarre White House visit. He was at the White House to discuss prison reform, but instead he touched on a lot of topics during an enthusiastic, erratic 10-minute rant. West, who recently said he has changed his name to “Ye,” said the speech came from the “soul.”

7. China says its H-20 nuclear stealth bomber is about to hit the skies. According to China Central Television the H-20 is called Hong-20, meaning “bomber aircraft” in Chinese. And with a suspected range of about 800km, the Hong-20 could pose a threat to US carriers in the Pacific and be a game changer in the South China Sea.

8. Looking to impress Jeff Bezos? Be prepared to change your mind. The Amazon founder said in a Q&A session with staff at web applications company Basecamp that “that the smartest people are constantly revising their understanding, reconsidering a problem they thought they’d already solved.” More here.

9. Lionel Messi’s life is being turned into an elaborate Cirque du Soleil show that will tour the world next year. The FC Barcelona forward is widely considered to be La Liga’s greatest showman. Messi confirmed the partnership on Instagram where he juggled with what looked like a clown nose.

10. The greatest escape. Tim Paine’s Australian team has pulled off a defining performance against Pakistan in Dubai. Chasing a world record 462 to win, they survived 140 overs to finish at 8-362. Paine survived 194 balls for his 61 not out, but Usman Khawaja amchored the draw with a exhausting 141 off 302 balls. All up, Khawaja batted for 760 minutes in the match. It’s only the second time in cricket history Australia has escaped with a draw after being more than 280 runs behind in the second innings.

https://twitter.com/VATTIKUTIV/status/1050501654649425920

BONUS ITEM: Watch Google take a savage swipe at cryptocurrency in an advert for its new Pixel 3 phone.

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