Albanese eyes Aussie win from Trump 2.0 policies

Good morning. Here's what happened overnight and what you need to know today.

---

1.

China talk: Prime minister Anthony Albanese said that changes to US policies under President-elect Donald Trump could present “potential benefits” for Australia, particularly if Trump scraps Joe Biden’s Inflation Reduction Act. The law had redirected significant capital to the US for clean energy initiatives, impacting Australia. Albanese made the remarks at the Australian embassy in Lima, Peru, ahead of the APEC and G20 summits, where Trump's election and possible policy shifts, including tariffs, are expected to be major topics. “Given Australia’s position in the world and the resources that we have, there are potential benefits if there are changes in US policy,” Albanese said. The PM declined to comment on replacing ambassador Kevin Rudd due to past criticisms of Trump, praising Rudd’s bipartisan support. Earlier, during Albanese's meeting with Indonesian President Prabowo Subianto, the latter referred to his plan on “some sort of management with the Chinese to de-escalate and lower the temperature,” in an apparent reference to tensions in the South China Sea.(Capital Brief)

2.

Trump’s control: Republicans secured control of the US House with a win in Arizona, reaching a 218-seat majority and giving President-elect Donald Trump’s Republican party full control of Congress to push their agenda including mass deportations, tax cuts and easing regulations on the oil and gas industry. Trump’s nomination of Florida Representative Matt Gaetz, a loyal ally and fierce Justice Department critic, as attorney general, drew widespread criticism, including from Republicans like Senator Lisa Murkowski, who called him “not a serious candidate.” Gaetz immediately resigned from Congress after the announcement, ending a House ethics investigation into accusations of misconduct, drug use, using campaign funds for personal use, accepting bribes and misusing state identification records. Trump also nominated Tulsi Gabbard, a former Democratic congresswoman with sympathetic views on autocrats like Vladimir Putin; Pete Hegseth, a military veteran known for defending Trump on Fox News; and Senator Marco Rubio, for top cabinet roles. Rubio defended Trump’s picks, saying, “Presidents deserve great deference.” (Capital Brief)(AP)(WSJ)(NYT)

3.

Sticky inflation: US producer prices increased 0.2% in October, driven by higher service costs, including a 3.6% rise in portfolio management fees and a 3.2% jump in airline fares, both of which feed into the Federal Reserve’s preferred measure of inflation. Core PPI, which excludes food, energy and trade, climbed 0.3% month-on-month and 3.5% year-on-year. Meanwhile, data from the Department of Labor showed initial jobless claims dropped by 4,000 to 217,000 for the week ending 9 November, signalling a stable job market despite recent disruptions from storms and strikes. The wholesale inflation data followed more closely monitored consumer prices a day earlier that showed core inflation had stayed persistent for the third consecutive month. After the data PPI release, economists adjusted their estimates for the October core PCE inflation – the Fed’s preferred inflation gauge - to a 0.28%-0.32% range, up from a previous 0.2%-0.26% range. (Capital Brief)(BLS)(DOL)(Bloomberg)(Reuters)

4.

Satire takeover: The Onion acquired Alex Jones’ Infowars with the support of families of Sandy Hook shooting victims to whom Jones owes nearly USD1.5 billion ($2.32 billion) in defamation damages. Jones was ordered to pay nearly USD1.5 billion after being found liable for falsely claiming the 2012 Sandy Hook Elementary School shooting, where 20 children and six adults were killed, was a hoax. The Onion won the bankruptcy auction with the support of the families, who chose to forgo part of their recovery to boost the value of the satirical outlet’s bid. The sale price has not been disclosed. The Onion plans to repurpose Infowars into a parody site, featuring humour and satire, mocking “weird internet personalities” like Jones who traffic in misinformation, Ben Collins, CEO of The Onion’s parent company, Global Tetrahedron, said. “This is going to be our answer to this no-guardrails world where there are no gatekeepers and everything’s kind of insane.” (Capital Brief)(NBC)(NYT)(The Onion)(Ben Collins)

5.

Azure watch: The US Federal Trade Commission (FTC) plans to investigate Microsoft's cloud computing business for alleged anti-competitive practices in the final weeks of Joe Biden’s presidency, The Financial times reported citing unnamed sources. The FTC is looking into claims that Microsoft uses punitive licensing terms to discourage customers from moving their data from its Azure cloud service to competing platforms. These include increased subscription fees, exit charges and incompatibilities with Office 365 on rival clouds. While the FTC has not yet formally requested documents from Microsoft, this potential probe aligns with Chair Lina Khan’s efforts to curb Big Tech’s market power. Khan is set to leave her role as President-elect Donald Trump assumes office, though any successor may continue scrutinising large tech companies. The move follows industry feedback to the FTC that raised competition concerns. The UK and EU have conducted similar probes, with Microsoft settling with EU providers in July. (FT)

6.

Google watch: The US Consumer Financial Protection Bureau (CFPB) is moving to place Google under formal federal supervision, according to The Washington Post. The extraordinary move would enable the CFPB to access Google's internal records, similar to practices applied to large banks, the publication said. Google, which declined to comment in the report, has reportedly opposed the potential oversight during months of confidential discussions. The CFPB has also been working to finalise rules that could extend its supervisory powers to tech firms, including Amazon, Apple and Venmo, amid fierce lobbying against such measures from the industry. These move come as part of the CFPB’s broader push to regulate the power of the tech industry, particularly how firms harness consumers data. It follows recent reviews on buy now pay later firm Affirm and USD90 million in penalties against Apple and Goldman Sachs. (The Washington Post)

7.

Election limits: The Albanese government will unveil electoral reforms limiting billionaires’ election spending. Special Minister of State Don Farrell will introduce the bill, which caps individual spending at $600,000 per election and sets a national party cap of $90 million annually. Donations from individuals will be limited to $20,000 per year and the Australian Electoral Commission (AEC) will gain more oversight and auditing powers, with penalties for non-compliance. Donations over $1,000 must be disclosed within a month, or weekly during election campaigns. The full regime, including stronger compliance measures, is planned for 2027, missing the next election. Truth-in-political-advertising laws are included but face resistance from the Senate and AEC, which opposes overseeing ad accuracy. The reform echoes Farrell’s concerns about “big money” influencing elections, citing past billionaires’ influence such as Clive Palmer’s $123 million spend in 2022. (Capital Brief)

8.

Streaming magic: Disney’s fiscal Q4 2024 results showed strong growth in streaming and studio segments, contributing to better-than-expected earnings, according to media reports. The direct-to-consumer unit, including Disney+, Hulu and ESPN+, posted a USD321 million ($496 million) profit, compared to a USD387 million loss a year earlier, exceeding forecasts of USD202.9 million. Revenue rose 6% year-over-year to USD22.6 billion, with net earnings per share (EPS) of $1.14 also surpassing the USD1.10 analyst consensus. CEO Bob Iger said that about 60% of new US Disney+ subscribers opted for the ad-supported tier. The theme parks division saw operating income drop 5.7% to USD1.66 billion, attributed to rising costs and competition from events like the Paris Olympics. Disney projects 6-8% growth in theme park operating income next year and plans to repurchase USD3 billion in stock and raise dividends. An ESPN tile will be added to Disney+ in December. (The Verge)(Bloomberg)(WSJ)