Good morning! Lots of news:
1. The Greens implosion. MPs who were born overseas are scrambling to show they are Australian citizens after a second Greens senator, Larissa Waters, had to follow her colleague Scott Ludlam and quit because it turned out she had been sitting in parliament, making laws, while holding dual citizenship. Disaster.
One Nation senator Malcolm Roberts, who was born in India, was one of the MPs to confirm he was a citizen of Australia only — and managed to follow up the news with a reprehensible tweet.
2. The Journal turns on Trump. It’s quite something to see one of the world’s great business media brands — and Rupert Murdoch’s flagship global masthead — round on the Trump administration and explain what a bunch of amateurs they look like with their handling of the Russia investigations. “These realities will destroy Mr. Trump,” the WSJ said in a dark editorial.
It has emerged this morning, separately, that Trump met privately with Vladimir Putin on the wings of the G20 summit, in a meeting nobody talked about. Until now.
3. Anyway, the Aussie dollar went bananas in trade yesterday, we needn’t remind you the first item in yesterday’s column was precisely on the fragility of the healthcare bill before the US Senate, and the implications for that policy weakness in global markets. As it happened, the US dollar unwound when it emerged the Republicans were sufficiently split on healthcare to put Trump’s policy agenda under a cloud, which started the Aussie dollar on the move…
4. … And then along came the RBA minutes later, with a more bullish assessment than expected on the outlook for interest rates. Result? Here’s AUD chart from yesterday:
So what does it all mean? Is the economy really looking brighter? Does it benefit importers or exporters? What does it mean if I’m planning a holiday? Should I hold off buying that apartment in Belize?
Glad you asked. Here’s a detailed round-up of what the experts are saying. Expect some revisions to the outlook for rates and the AUD from the major banks in the days ahead.
5. Malcolm Turnbull and corporate Australia are not getting on. A report in today’s Australian Financial Review details a dinner held on Monday involving the PM and some captains of industry, and it sounds like it was a chilly affair. Turnbull, one source told the AFR, has “had the shits since the election”, as the Coalition believes business is not doing enough to support it. That said, business is wondering what’s coming the other way. Probably understandable if you’re one of the banks and facing a new tax that’ll cost you a billion dollars over the next few years. The AFR has more.
6. Speaking of banks, it’s a big day for the sector with APRA announcing this morning the new capital requirement ratios.
7. We can finally get to markets, and ASX futures are pointing slightly lower ahead of the open. With the APRA requirements finally public the action in the financials could make for an interesting day. Wall Street had (yet) another quiet night. Iron ore, in the meantime, continues its bullish run and is sitting just under $US70 having rallied 30% in a month.
8. Netflix now has more subscribers internationally than it does in the US. Look:
The company smashed analyst expectations with its results overnight and the stock went nuts.
9. How to tell if your relationship is doomed. John Gottman is one of the world’s leading authorities on how couples’ relationships last. He told Business Insider about the key warning signs that you might be heading for a break-up.
10. Here’s what legs look like after 16 stages of the Tour de France:
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