Albanese in Washington for first Trump meeting with AUKUS, trade agenda

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

---

1.

Rare meeting: Prime Minister Anthony Albanese is en route to Washington for his first formal meeting with US President Donald Trump since Trump’s re-election. Albanese said in a statement the meeting, scheduled for Monday local time (Tuesday AEDT), will be “an important opportunity to consolidate and strengthen the Australia-United States relationship”. Talks at the White House are expected to cover the AUKUS submarine deal, which is under review by the US Defence Department, as well as on a critical minerals agreement. According to the AFR, Albanese will seek Trump’s support for guaranteed prices on Australian rare earths to help ensure new mining projects are commercially viable. Albanese is also expected to seek an exemption from tariffs on Australian exports, including the 50% rate on steel and aluminium. The trip comes amid speculation the US may take stakes in Australian mining companies as part of a broader strategic relationship. (AAP)(Bloomberg)(AFR)(The Age)(Capital Brief)

2.

Gaza strikes: Israel carried out its most extensive strikes on Gaza since the ceasefire began on October 11, after accusing Hamas of attacking its forces in Rafah with an anti-tank missile and gunfire, killing two soldiers Sunday. Gaza’s health ministry said at least 29 Palestinians, including children, were killed on the same day. The Israeli military said it responded to what it described as a “blatant violation” of the ceasefire by striking tunnel shafts, weapons depots and militants across Gaza. Unnamed Israeli officials told multiple outlets that the transfer of aid into the enclave had been halted “until further notice”, in response to attacks on troops and delays by Hamas in handing over the bodies of deceased hostages. Hamas said it remained committed to the ceasefire, denied responsibility for attacks in Rafah and blamed Israel for using “flimsy pretexts” to violate the agreement. The Rafah border crossing, which had been expected to reopen, remains closed. Hamas has returned 12 of the 28 deceased hostages as required by the deal and said more are buried under rubble. Both sides say they are committed to the truce, as negotiations continue in Cairo over next steps. (FT)(Bloomberg)(Reuters)(AP)(NYT)(Capital Brief)

3.

China tensions: Chinese tech giants, including Alibaba-backed Ant Group and JD.com, paused plans to issue stablecoins in Hong Kong after the government flagged concerns about the rise of currencies controlled by the private sector, the Financial Times reported. The companies had committed to participate in Hong Kong’s pilot stablecoin program or issue virtual asset-backed products like tokenised bonds, but paused plans after receiving instructions from Chinese regulators. People’s Bank of China (PBoC) officials advised against participating in the initial stablecoin rollout over concerns about allowing tech groups and brokerages to issue any type of currency, the FT reported. Meanwhile, China said it uncovered “irrefutable evidence” that the US National Security Agency exploited vulnerabilities in the country’s main agency responsible for timekeeping. As tensions intensify, US Treasury Secretary Scott Bessent is set to meet with Chinese Vice Premier He Lifeng in efforts to defuse tariff escalations. (FT)(Reuters)(Bloomberg)(CNBC)

4.

Carlyle’s credit: Carlyle CEO Harvey Schwartz said recent volatility in credit markets is on his “worry list” but that there is no evidence that conditions are deteriorating. Speaking to Bloomberg on Sunday from the sidelines of the US Grand Prix in Austin, Schwartz said data from Carlyle’s portfolio companies indicates growth, steady employment and “a little sticky” inflation, but nothing suggesting the situation is “crumbling.” His comments follow stress in credit markets after the collapses of Tricolor Holdings and First Brands Group, and loan fraud disclosures at two US regional banks. JPMorgan CEO Jamie Dimon last week warned there may be more than one “cockroach” in the credit system. Schwartz was interviewed alongside Oracle Red Bull Racing Principal Laurent Mekies, after Carlyle formed a multi-year partnership with the Formula 1 team. Amid broader industry moves to boost brand visibility through sports partnerships, Schwartz said Carlyle’s investment performance “has to stay number one” and “can’t be sacrificed.” Mekies said both Carlyle and Formula 1 were looking to broaden their consumer reach, and a decision on Verstappen’s teammate is expected “in another couple of races.” (Bloomberg)

5.

Boiling over: Police criticised protesters in Melbourne’s CBD after two officers were hospitalised and rocks, glass and rotten fruit were thrown at officers during clashes between protest groups on Sunday. Officers were forced to separate a March for Australia group estimated to be in the thousands and a group of anti-racism protestors as tensions escalated between the groups. Addressing the media, Commander Wayne Cheeseman said certain ideologically motivated groups came to the protest specifically looking to attack police: "The people that came to pick a fight with police were the issue-motivated people on the left," he said. "The March for Australia group were peaceful, were engaging, they listened to our instructions." Victorian Premier Jacinta Allan said it appeared "some people just want to protest for the sake of protest." The protests in Australia coincided with ‘No Kings’ rallies, which saw millions protest against US President Trump across the US, and outside US embassies worldwide. (ABC)(The Australian)(SMH)(FT)(CNN)(CBS)

6.

Hardware-ing VC gap: Four months after departing Grok Ventures — where he spent nine years as CIO helping deploy Mike Cannon-Brookes’ billions into climate technology — Jeremy Kwong-Law has been focused on how to fund the critical transition from proven technology to deployed infrastructure. While VCs eagerly fund software startups and early-stage technology development, and infrastructure investors line up for proven solar farms and wind projects, there remains a missing middle that few are willing to touch. Specifically, companies needing to build their first commercial plants often require investments of around $50 million, with projected returns of roughly 20% — too capital-heavy for VC, but too risky for traditional infrastructure investors. “Venture capital sucks at doing that because it’s capital intensive, and the returns don’t work for venture — they need a huge return to make their funds work,” Kwong-Law tells Capital Brief. The issue is especially acute for climate hardware companies that, unlike software businesses, require physical infrastructure. (Capital Brief)

7.

Lines blocked: Donald Trump said the US would stop all aid to Colombia and accused President Gustavo Petro of being an “illegal drug dealer,” intensifying a diplomatic rift between the two nations. In a Truth Social post, Trump wrote that drug trafficking “has become the biggest business in Colombia” and Petro “does nothing to stop it,” despite years of large-scale US payments, which he described as “a long term rip off of America.” Petro responded on X that “Trump is being deceived” by his advisers and claimed he has done more than any other leader to expose ties between traffickers and Colombia’s political elite. The announcement follows Trump’s September move to “decertify” Colombia as a partner in fighting narcotics. US Defence Secretary Pete Hegseth said the Pentagon destroyed a vessel on Friday that was allegedly linked to Colombia’s leftist rebel group, the National Liberation Army, and involved in drug smuggling, though he provided no evidence to support the claim. Earlier over the weekend, Trump said two survivors of a separate US submarine strike would be returned to Colombia and Ecuador. (Capital Brief)(Reuters)(Bloomberg)

8.

Longterm tax: Former Productivity Commission chair Michael Brennan does not believe the government’s superannuation tax backdown means tax reform is over, and called for commentators to remain cool-headed as the government begins to tackle broader economic issues. Speaking to Capital Brief, Brennan, now chief executive of economic research firm e61 Institute, said “there’s been a lot of commentary” about the political significance of the policy and noted that it could be “a bit over-interpreted”. He noted that he wasn’t sure whether the policy has implications one way or the other for where tax reform heads next, but that “it’s just where the tax system might need to go over the next decade.” With Australian federal and state governments running a “consolidated deficit a bit over 3% of GDP”, Brennan said the tax reform debate should be framed in the context of closing the fiscal gap, “not creating a bigger one”. (Capital Brief)