10 things you need to know this morning in Australia

Robert Cianflone/Getty ImagesTim Cahill of Australia looks dejected following his sides defeat in the 2018 FIFA World Cup.

Good morning.

1. Australia’s World Cup journey is over. Chances of progressing to the second round of the 2018 World Cup ended for the Socceroos overnight after they suffered a 2-0 defeat to Peru in Russia. Peru’s captain Paolo Guerrero led the assault against the Aussies, scoring one goal himself and setting up another. Guerrero was only allowed to play in the cup after FIFA overturned his drug ban following a request for clemency by Australia’s captain, Mile Jedinak. But it was a dead rubber regardless, because France also ended the Socceroos’ hopes by drawing with Denmark.

2. China and the EU are teaming up to fight back against Trump’s trade war. US President Donald Trump has imposed trade tariffs against the European Union and China, sparking trade conflicts with allies and rivals alike. Officials from the two regions have formed an unlikely team at the World Trade Organisation and attacked Trump’s approach, saying they wanted to set the rules to suit their approach.

3. Watch out. The risk of out-of-cycle mortgage rate increases is rising in Australia. While the RBA hasn’t moved official interest rates since August 2016, short-term Australian money market rates have spiked, creating margin pressures for banks. In fact, some smaller Australian banks have already announced increases in variable mortgage rates due to funding pressures. This chart explains the risk at hand.

Macquarie Bank

More on that here.

4. The Australian dollar has fallen again. The Australian dollar finished Tuesday’s session mixed, falling against the greenback but higher against most major crosses. An apparent ebbing in trade tensions helped to boost the greenback. The Aussie found support from another surge in crude oil prices. At 7am in Sydney, the AUD/USD was down 0.30% to 0.7391.

Investing.comAUD/USD Hourly Chart

5. Opposition leader Bill Shorten surprised everyone yesterday when he announced Labor would repeal the company tax cuts already passed for businesses with a turnover of between $10 million and $50 million. To make matters worse, Labor still hasn’t decided whether it wants to set the threshold at $2m or $10m. With a 2.5% reduction in company tax due to roll out for companies with a turnover of $25 million from next week, and Labor ahead in the polls with an election due next year, Shorten’s throwaway announcement has sent shockwaves through the business community. Simon Thomsen argues it’s a “captain’s call” as crazy as Tony Abbott’s “Sir Prince Philip” knighthood.

6. The US Supreme Court has upheld Trump’s controversial travel ban, in a 5-4 decision that split the justices along partisan lines. The travel ban was Trump’s third attempt at restricting travel from certain majority-Muslim countries after federal courts blocked the previous two. The third ban imposed restrictions on travellers coming to the US from Syria, Iran, Yemen, Somalia, Libya, North Korea, and Venezuela. Chad was also originally listed in the ban, but the Trump administration later removed it.


7. Facebook has abandoned its plans to build giant internet-providing drones and laid off staff. The revelation comes after Business Insider reported on upheaval at the Aquila project, including the departure of its leader and a planned redesign. The company is now closing the facility in England where the 747-sized drones were being developed, and 16 staff have been laid off.

8. Uber won its licence back in London after a two-day court battle. But it’s not out of the woods yet. The licence lasts only 15 months, and Uber has to meet conditions from London’s regulator. Despite making a decision favourable to Uber, chief magistrate Emma Arbuthnot was critical of the company. In a hearing at Westminster Magistrates’ Court, she said Uber thought it was “above the law”. Uber said it deserved to lose its licence last year but argued it had made lots of changes in the past nine months.

9. Now, this is cool. Napkin Finance is a multimedia company that aims to break down complicated financial concepts through text, video, and illustrations. It covers topics like insurance, stocks, debt, student loans, crowdfunding, estate planning, and even bitcoin. Every explanation is simple enough to fit on a napkin. Check it out:

10. Diego Maradona was going nuts before Argentina’s must-win World Cup match. The Argentine soccer legend was engaging in some ridiculous, must-see behaviour during the build-up to Argentina’s crucial World Cup match against Nigeria. He could be seen dancing, yelling, and waving banners with his own image on it. Maradona’s antics have already spawned memes like these:

Have a great day.

You can get 10 things direct to your inbox each morning by punching your details into the form below.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.