Chalmers to visit China as Australia faces $4.5b budget gap

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

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1.

Beijing bound: Jim Chalmers will visit China in the last week of September in the first trip by an Australian treasurer in seven years. The visit, scheduled around 27 September, will come as an economic slowdown in China and falling demand for key commodities threaten a $4.5 billion hole in Australia’s federal budget. They discussions will also likely include talks about remaining trade restrictions on Australian lobster as well as foreign investment rules in Australia around areas like critical minerals, Chalmers told the ABC's Insiders program. He also confirmed the 2026 census would, for the first time, include a new topic covering questions of “orientation and gender identity,” following pressure from LGBTIQ+ advocates. (Capital Brief)

2.

Joint intel: In their first-ever joint public address, the heads of the CIA and MI6 warned the international world order is under an unprecedented range of threats, ranging from Putin’s war on Ukraine to Russian sabotage in Europe,= to the rise of China and rapid technological change. Appearing at a Financial Times forum in London and writing in an opinion piece for the FT, CIA director Bill Burns and MI6 chief Richard Moore said the countries are cooperating “in a contested international system where our two countries face an unprecedented array of threats”. They said they believed Ukraine’s recent Kursk offensive had sparked doubts within Russia's elite about the war’s direction. Burns described the offensive as a “significant tactical achievement,” while Moore noted it as a “bold move” but cautioned it’s too early to predict its long-term success. (Capital Brief) (FT)

3.

Trump’s posts: Donald Trump threatened 100% tariffs on countries that move away from the US dollar and vowed to prosecute lawyers, political donors and operatives if he wins the election and they are found to have “cheated” or engaged in “unscrupulous behaviour”. In posts on his social media site, the Republican presidential candidate said the US dollar has been “under siege” and vowed to ensure it remains the world’s reserve currency. It comes after China, India, Brazil, Russia and South Africa have discussed de-dollarisation at a summit last year, according to Fortune. Separately, Trump warned he would prosecute those involved in “unscrupulous behaviour” related to the election, including lawyers, donors and election officials. His remarks come as early voting for the 2024 presidential election approaches, intensifying his claims of election fraud. (Fortune)(Axios)

4.

AI share: Elon Musk denied reports that his AI startup, xAI, is in talks with his EV company, Tesla, to receive a share of the carmaker’s future revenue in exchange for providing AI technology. The Wall Street Journal reported Tesla would license xAI’s AI models to help power its Full Self-Driving (FSD) software and other features, with xAI potentially receiving a revenue split based on how much Tesla used its technology. Musk refuted the report in a post on X, saying that while xAI engineers have helped Tesla accelerate unsupervised FSD, there is no need to license anything from xAI. Musk has previously suggested integrating xAI’s chatbot, Grok, into Tesla software, and has raised the idea of a USD5 billion ($7.51 billion) investment in xAI by Tesla. Concerns remain about resource-sharing between the companies, with a number of Tesla shareholders filing lawsuits claiming xAI has drained resources from the carmaker. (The Wall Street Journal)

5.

Deadly crossing: Three Israeli civilians were killed at the Allenby Bridge border crossing between Jordan and the Israeli-occupied West Bank by a gunman from Jordan, Reuters reported citing Israeli officials. The attacker was a 39-year-old truck driver who exited his vehicle and opened fire before being shot dead by Israeli security forces. Israeli authorities identified the victims as Israeli forklift operators aged over 50. Jordan is investigating the incident, its state-run Petra News Agency reported. The incident is the first of its kind since the 7 October Hamas assault on southern Israel. It has the potential to escalate tensions in a region already destabilised by the ongoing Israel-Hamas conflict, with concerns over Iranian-backed efforts to stoke violence in the West Bank. (Capital Brief)

6.

Yagi wreckage: Typhoon Yagi, Asia’s most powerful storm in decades, was downgraded to a tropical depression on Sunday after causing widespread damage in northern Vietnam, particularly in the industrial hubs of Hanoi and Haiphong. The storm killed 21 people and injured 229 in Vietnam, according to preliminary estimates from the government cited by Reuters. Power, water and telecommunications remained down in many areas, while factories in Haiphong, including many owned by multinationals, reported significant structural damage, with about 80% affected. Authorities warned of continued risks of flooding and landslides as cleanup efforts continued, particularly in Hanoi, where thousands of trees were uprooted. (Reuters)

7.

iPhone Arm(ed): Apple will unveil the iPhone 16 on Monday US time, featuring its new A18 chip built on Arm’s latest V9 designarchitecture, the Financial Times reported citing sources. The tech giant will hold its launch event in Cupertino, California, where it is expected to release a series of new phones and other products with enhanced generative AI capabilities. The A18 chip will power these new AI functions. V9 generates double the royalties than its V8 predecessor for SoftBank-owned Arm, the paper said citing previous comments by CEO Rene Haas. Apple is expected to use a staggered approach to introducing the AI features, with investor focus expected on further announcements regarding the timeline. (The Financial Times)

8.

Venezuelan escape: Venezuela's opposition presidential candidate Edmundo Gonzalez fled to Spain where he has been granted political asylum, after seeking refuge in the Spanish embassy in Caracas. Gonzalez had been hiding after the disputed 28 July election, which the US, EU and other powers recognise he won, despite government results declaring Nicolas Maduro the victor. The opposition has released vote tallies they argue prove his victory, but Maduro’s government last week issued an arrest warrant for Gonzalez, accusing him of conspiracy and document forgery. His departure came after security forces surrounded Argentina's former embassy in Caracas, now being protected by Brazil (after Maduro expelled diplomatic personnel of countries that expressed concerns over the election result), where six opposition staffers have been sheltering since warrants were issued for them. Venezuela also revoked Brazil’s authority to represent Argentina’s diplomatic interests, accusing the staffers of conspiring to carry out “terrorist” acts. (Reuters)