ANZ boss slammed after brutal email bungle

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

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1.

Indefensible moment: ANZ chief executive Nuno Matos apologised to staff after the bank inadvertently informed individuals they were being made redundant via an automated email, as first revealed by Capital Brief. In an internal note, Matos called the incident "indefensible and deeply disappointing" and said ANZ was investigating what caused the message to send. The error forced the bank to bring forward planned face-to-face redundancy meetings with its senior management teams and triggered a wave of angst among ANZ's roughly 13,000 retail staff. This week’s redundancies targeted Group 2 and Group 3 senior managers, but the next round is expected to be more widespread. Two sources with direct knowledge told Capital Brief that staff will find out next week (9 September) if their jobs are safe. Matos later told executives that "while change will continue, we are committed to ensuring it is delivered with care." Internal forums have drawn hundreds of comments criticising the mishap and Matos’ leadership style. One current staff member described a meeting where Matos berated a senior colleague, creating a culture where no one dares to challenge or escalate issues. (Capital Brief)

2.

Shanghai summit: Indian Prime Minister Narendra Modi and Chinese President Xi Jinping met in Tianjin on the sidelines of the Shanghai Cooperation Organisation summit and agreed that India and China are development partners, not rivals. In a video posted on his X account, Modi said an atmosphere of “peace and stability” had now been created on the disputed Himalayan border and announced the resumption of direct flights. Xi said the border issue should not define the overall relationship, according to Chinese state agency Xinhua. Indian Foreign Secretary Vikram Misri said Xi proposed four areas to deepen ties: strategic communication, cooperation for mutual benefit, accommodating concerns, and multilateral engagement. The meeting follows years of border tension and comes amid US-imposed 50 % tariffs on Indian goods and a 30 % tariff on Chinese imports under an extended trade truce. Meanwhile, Russian President Vladimir Putin and China’s Xi discussed the latest US Russian contacts after Trump’s meeting with Putin in Alaska. (Capital Brief)(Narendra Modi)(Reuters)(Bloomberg)

3.

Tariff turmoil: A US appeals court on Friday ruled that most of Donald Trump’s global tariffs are not legal, saying the emergency law he used does not authorise the president to impose duties or taxes. The decision threatens a key part of Trump’s trade strategy and has added to uncertainty in markets already facing a critical stretch, with jobs reports, a key inflation reading and the Fed’s interest rate decision all due over the next 14 trading session. The 7-4 decision upheld a May ruling by the Court of International Trade and affects levies on imports from China, Canada, Mexico and dozens of other countries. The court allowed the tariffs to stay in place until 14 October to give the administration time to appeal to the Supreme Court. The Trump administration is continuing talks with trading partners, and is reportedly preparing backup options to keep the tariffs in place if the Supreme Court agrees with the ruling. (Bloomberg)(Reuters)

4.

Deportation dollars: Environment Minister Murray Watt on Sunday defended a more than $400 million deal to deport members of the NZYQ cohort to Nauru, after refugee advocates labelled the deal discriminatory, disgraceful and dangerous. The agreement, signed by Home Affairs Minister Tony Burke during a visit to the island last week, allows for the resettlement of members of the NZYQ cohort. These non-citizens were previously held in indefinite detention until a 2023 High Court ruling deemed the practice unlawful. Estimates of how many will be deported vary, with Sky News reporting around 200 people, while ABC News reports the figure at more than 350. Australia will pay Nauru $408 million upfront and $70 million each year, according to the reports. Watt said the group has no right to remain in the country and that Australia has every right to remove them. He described the cohort as relatively small, said the transfers would be scaled up over time, and rejected suggestions the payments were a bribe. The opposition backed the deportations on public safety grounds, while The Greens described the policy as some of the world’s most anti-migrant. (Sky News)(ABC)(Blomberg)

5.

Dragon economy: China’s manufacturing activity shrank for a fifth straight month in August, with the official purchasing managers’ index at 49.4, according to the National Bureau of Statistics. The non-manufacturing PMI rose to 50.3 from 50.1, below the 50.2 forecast. The composite PMI of manufacturing and non-manufacturing was 50.5, up from 50.2 in July. Meanwhile, new home sales by the 100 largest developers dropped 17.6% year-on-year to 207 billion yuan, based on preliminary data from China Real Estate Information Corp. Sales have fallen for six straight months and factory activity remains in contraction, raising the prospect of further policy support. (Xinhua)(Bloomberg)(Reuters)

6.

Houthi retaliation: Houthi forces stormed UN offices in Yemen’s capital on Sunday, detaining staff from the World Food Programme and UNICEF, a day after Israel confirmed it had killed the group’s prime minister and several ministers in an airstrike on Sanaa. The UN agencies said they were urgently seeking additional information from local authorities. The Houthis have previously targeted international organisations and tightened security across Sanaa following the Israeli strike. The group confirmed Prime Minister Ahmed al-Rahawi and multiple ministers were killed during a government workshop on Thursday. Israel said the strike was in response to Houthi missile attacks, including a ballistic missile launched at Ben Gurion Airport earlier in August. Benjamin Netanyahu warned this was “only the beginning of the strikes on senior officials in Sanaa - we will get to all of them.” (NPR)(CNN)

7.

Housing mismatch: Australian home prices rose for a seventh straight month in August, with Cotality’s Home Value Index up 0.7% — the strongest monthly gain since May 2024. The national median value lifted to $848,858, taking annual growth to 4.1%. Brisbane led with a 1.2% rise, followed by Perth (+1.1%) and Darwin (+1.0%), while Hobart was the only capital to record a decline (-0.2%). Cotality said the growth cycle has been building since the Reserve Bank’s February rate cut, driven by improved borrowing capacity, real wages growth, rising confidence and tight advertised stock levels. Listings remain 20% below average, and the national rental vacancy rate is near historic lows at 1.5%. “Once again we are seeing a clear mismatch between available supply and demonstrated demand placing upwards pressure on housing values,” said Cotality research director Tim Lawless, who added that vendors are benefiting from limited competition. (Capital Brief)

8.

Gaza crackdown: Israel claimed it killed Abu Obeida, a key Hamas spokesman, in a Gaza City airstrike, and said more such blows would follow if a sweep of the Palestinian Islamist faction’s last stronghold goes ahead as planned. The Israel Defense Forces identified him as Hudahaifa Kahlout. Hamas hasn’t commented on his condition or whereabouts but said the Saturday strike inflicted dozens of casualties in the al-Rimal neighbourhood. Without Abu Obeida, Israel says three senior Hamas figures remain in Gaza. Netanyahu convened his security cabinet on Sunday following the decision to send troops and tanks into Gaza City. The aim, he said, is to crush Hamas and recover the remaining 48 hostages. Meanwhile, around 20 boats carrying humanitarian aid and international activists, including Greta Thunberg, departed from Barcelona for Gaza on Sunday. Organisers say around 70 vessels from 44 countries are expected to take part in the final leg of what they describe as the largest flotilla yet to challenge Israel’s blockade. (Reuters)(AP)