Dutton hits campaign trail slamming wasteful spending

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

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1.

Dutton’s pitch: Opposition leader Peter Dutton launched his election agenda at a campaign rally in Melbourne’s Chisholm electorate, pledging to cut wasteful spending, lower taxes, expedite gas production and reform school curricula. Emerging from his summer break on Sunday, Dutton focused on the Coalition’s existing policies, outlined in a 44-page document released the same day, and announced no new initiatives. In a 40-minute speech, he highlighted his working-class roots and criticised Labor’s cost-of-living relief measures, such as energy bill subsidies and debt waivers, as inadequate short-term fixes, advocating structural economic reforms instead. Dutton accused Labor of prioritising “inner-city activists” over everyday Australians and pledged to address community safety, housing affordability and Indigenous program audits. He also vowed to repair ties with Israel, blamed Labor for rising antisemitism, and reiterated the Coalition’s nuclear energy plans. Labor dismissed his speech as divisive and lacking solutions for Australians’ challenges. (Capital Brief)

2.

TikTok ban: The US Supreme Court heard arguments over the law requiring TikTok’s Chinese parent company, ByteDance, to sell the app or face a ban by 19 January. Lawyers for the companies warned enforcing the law would violate the First Amendment and render the platform unusable for its 170 million US users. Solicitor General, Elizabeth Prelogar, argued the law was necessary to mitigate national security risks, including the potential misuse of user data and covert influence by the Chinese government. Justices questioned both sides. Meanwhile, billionaire Frank McCourt made an offer to purchase TikTok’s US operations – estimated to be worth USD20 billion ($32.53 billion), excluding its algorithm – but ByteDance has said a sale is unfeasible. The Court is reviewing the bipartisan law, passed by Congress last year, after President-elect Donald Trump – a previous critic who now describes himself as a “big star” on TikTok and campaigned on the promise to save the popular app – asked the court to extend the deadline to allow his administration to find a solution. (Bloomberg)(Reuters)(USA Today)(Capital Brief)

3.

DEI retreat: Apple’s board urged investors to reject a shareholder proposal to abolish its diversity, equity and inclusion (DEI) programs, calling it unnecessary and an overreach by the conservative group behind it. The proposal, submitted by the National Center for Public Policy Research, was described as "an inappropriate attempt to micromanage" Apple’s operations. The decision comes as companies like Meta and Amazon dismantle DEI efforts following the 2023 US Supreme Court ruling against affirmative action in college admissions. President-elect Donald Trump and other conservatives have used the ruling to pressure businesses to end DEI initiatives. On Friday, Meta cited a "shifting legal and policy landscape" in a memo announcing changes to hiring, supplier, and training efforts, with Chief Diversity Officer Maxine Williams reassigned to focus on accessibility. In December, Amazon also reportedly informed staff it would phase out “outdated” inclusion programs. Walmart and McDonald’s have also recently scaled back DEI policies. (Capital Brief)(Axios)(Reuters)(Bloomberg)

4.

Shaky markets: The Australian sharemarket is set to fall, with futures indicating a 0.9% drop for the S&P/ASX 200 on Monday, tracking Wall Street losses after strong US jobs data dashed hopes for immediate Federal Reserve rate cuts. December saw 256,000 US jobs added—far above expectations—pushing 10-year Treasury yields to 4.79%, their highest in over a year, amid renewed fears of persistent inflation. Meanwhile, the Australian dollar fell to US61.38¢, its lowest since March 2020, and dropped below 60 on the trade-weighted index (TWI). Economists warned this could drive up inflation by raising import and export costs, adding pressure on the RBA ahead of its February meeting. Markets had assigned a 72% chance of a rate cut then, but the currency’s slump may prompt a rethink. The week’s key data includes Australian jobs numbers, US CPI figures and China’s GDP report, which could shape inflation expectations and market sentiment globally. (Capital Brief)(AFR)(Reuters)

5.

Historic fire: Wildfires continue to ravage Los Angeles County, having killed at least 16 people, with 16 others reported missing, in what Governor Gavin Newsom warned could become the costliest disaster in US history. The Palisades and Eaton fires, two of six simultaneous blazes that have ripped across the US’ second largest city, have scorched more than 37,000 acres and destroyed over 12,000 structures. In remarks to NBC’s Meet The Press on Sunday, Newsom also said "I've got search and rescue teams out. We've got cadaver dogs out and there's likely to be a lot more (deaths)." Analysts at AccuWeather last week calculated the economic losses could be between USD135 billion ($219.56 billion) and USD150 billion. While firefighters have made some progress containing the fires, strong Santa Ana winds remain a major threat. FEMA has mobilised resources, with military personnel on standby to assist, with Canada and Mexico sending firefighters to help. Meanwhile, about 30 people have been arrested amid fears of looters, while aggressive price gouging has been reported with some rental prices doubling despite laws limiting increases during emergencies. (FT)(Reuters)(NYT)

6.

Trump convicted: Donald Trump was sentenced to an unconditional discharge for falsifying business records related to a 2016 hush-money payment to Stormy Daniels, becoming the first president-elect formally convicted of a felony. Despite the conviction on 34 felony counts—eligible for up to four years in prison—Justice Juan Merchan imposed no jail time, fines or probation, citing the constitutional limitations on penalising a president-elect. The sentencing followed a jury’s guilty verdict in May and follows years of legal challenges, including Trump’s failed attempts to halt the case. Prosecutor Joshua Steinglass criticised Trump for showing no remorse and undermining public trust in the justice system. Trump denied wrongdoing, calling the case politically motivated. The conviction cements his status as the first felon to assume the US presidency, but Trump is expected to appeal during his second term. (Politico)(NYT)

7.

Steel delay: The Biden administration has delayed enforcement of its order to block Nippon Steel’s USD14.9 billion ($124.23 billion) acquisition of US Steel, extending the deadline to abandon the deal to 18 June, Reuters reported citing the companies. The delay follows a legal challenge by the steelmakers, who allege the Committee on Foreign Investment in the United States (CFIUS) review was biased by Biden’s pre-existing opposition. The CFIUS panel, which reviews foreign deals for national security risks, failed to reach consensus, leaving the decision to Biden, who cited national security grounds in blocking the deal on 3 January. President-elect Trump has also expressed opposition. Japanese Foreign Minister Takeshi Iwaya has criticised the decision, citing potential strain on US-Japan economic ties. The delay allows courts to review the case and coincides with the expiry of the companies’ acquisition contract. (Reuters)

8.

Captured NK: Ukraine announced the capture of two North Korean soldiers in Russia’s Kursk region, marking the first instance of such live captures since North Korean troops reportedly joined the war on Russia’s side in October 2024. President Volodymyr Zelenskiy said the soldiers were taken to Kyiv and are being questioned by Ukraine’s Security Service with assistance from South Korea's NIS intelligence agency due to language barriers. Kyiv and its Western allies estimate over 10,000 North Korean troops entered the conflict last year and claim Pyongyang has supplied Russia with artillery shells. The SBU released videos showing the men, in their twenties, being treated. The capture, part of a special forces operation with paratroopers, was partially documented by drone footage. A criminal investigation is underway to determine whether the men violated Ukraine’s laws on waging war. Moscow and Pyongyang have not commented on the report. (Reuters)