Good morning. Here's what happened overnight and what you need to know today.
1.
Hostage deal: Hamas announced that it has agreed to a ceasefire proposal brokered by Qatar and Egypt to halt the ongoing fighting with Israel in Gaza. The proposal involves the release of Israeli hostages held by Hamas in exchange for Palestinian prisoners detained by Israel, as well as calls for an initial six-week pause in hostilities, during which Hamas would free 33 hostages. This would be followed by an extended ceasefire, dubbed "restoring a sustainable calm," during which the remaining hostages would be freed. The announcement came hours after Israel ordered the evacuation of eastern Rafah, signalling a potential imminent military operation there. Israel is reviewing the terms of the deal, with some officials signalling the "softened" proposal is not acceptable. The military will continue to operate in the Gaza Strip as it is examined further. An Israeli official speaking anonymously to the New York Times claimed that Hamas had rejected the latest proposal by Israel which had been on the table as of Sunday. (Financial Times)(New York Times)(Reuters)
2.
No 'slash and burn': Treasurer Jim Chalmers says the upcoming federal budget will prioritise fighting inflation in the near-term, while allowing for more spending and deficits in later years to boost economic growth. Chalmers' comments come as Treasury estimates suggest less government debt than expected. Gross debt is projected to reach $904 billion in 2023-24, $152 billion lower than previously forecast, saving around $80 billion in interest payments over the decade. "Debt will peak significantly lower than was projected at the time of the election thanks to our responsible economic management," Chalmers said. The treasurer clarified the budget will have two objectives: an initial focus on curbing inflation, followed by a shift towards growth-promoting investments later on. (Australian Financial Review)(Capital Brief)
