Musk’s SpaceX stuns with mid-air rocket catch

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

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1.

Stellar catch: SpaceX successfully caught its "Super Heavy" booster rocket using giant arms, dubbed chopsticks, in a test flight of the world’s largest and most powerful rocket. It was the fifth Starship test after the previous four faced varying degrees of failure. Launched at 7:25am CT (11:25pm AEST) on Sunday, the booster lifted off, separated and reignited its engines for descent. With flames rising along one side, it was caught in mid-air by the tower's arms on its Texas launch pad. The spacecraft on top of the booster also landed as planned in the Indian Ocean. The success marks a key milestone for reusable rockets, crucial to SpaceX’s goal of cutting costs and increasing flight frequency for missions to the Moon and Mars. It comes as the world’s richest man becomes an increasingly vocal and provocative figure in US politics, backing Donald Trump’s presidential campaign, and two days after Musk’s robotaxi project disappointed investors, sending Tesla shares down 8.78%. (Capital Brief)

2.

Deflationary pressure: China's deflationary pressures intensified in September as consumer inflation unexpectedly eased and producer prices fell at the fastest pace in six months, highlighting weak domestic demand. The consumer price index rose by just 0.4% from a year earlier last month, compared to 0.6% in August, Reuters reported citing data from China’s National Bureau of Statistics. Producer prices meanwhile dropped 2.8% year-on-year in September, worse than the 2.5% forecast by economists polled by Reuters. Finance Minister Lan Foan on Saturday hinted at more "counter-cyclical measures" to support the property sector, including allowing local governments to use special bonds to buy unsold homes, but offered no details on timing or size. (Capital Brief)

3.

US shield: The US will send an advanced anti-missile system and about 100 troops to Israel to strengthen its air defences following Iran’s missile attacks, The New York Times reported citing a Pentagon spokesman. When asked on Sunday (Monday morning AEST) President Joe Biden said he authorised the deployment “to defend Israel.” A Pentagon spokesperson said the Terminal High Altitude Area Defense (THAAD) system would bolster Israel’s existing defence network. “This action underscores the United States’ ironclad commitment to the defense of Israel, and to defend Americans in Israel, from any further ballistic missile attacks by Iran” Patrick Ryder said. Iran's Foreign Minister Abbas Araqchi warned the US was putting American troops at risk. “While we have made tremendous efforts in recent days to contain an all-out war in our region, I say it clearly that we have no red lines in defending our people and interests,” Araqchi posted on X. (NYT)

4.

UN fray: Nearly 40 people were wounded, three critically, in a Hezbollah-attributed drone strike on Israel’s central city of Binyamina, The Associated Press reported citing local media. Two drones were launched from Lebanon, one intercepted, following a similar attack on Tel Aviv a day prior. Earlier the UN said Israeli tanks forced entry into a UNIFIL base in southern Lebanon, destroying a gate and briefly entering the base before dawn Sunday, Reuters reported citing the UNIFIL peacekeeping force. Israel provided a different account, with the IDF saying its tanks backed into the base while evacuating wounded soldiers. The incident follows rising tensions, with Israel urging UNIFIL’s withdrawal from southern Lebanon, accusing the peacekeepers of shielding Hezbollah fighters. Five UN peacekeepers have been injured in recent days while Israeli airstrikes continue against Hezbollah. (BBC)(Reuters)(AP)

5.

App battle: Google requested a US judge to delay a court order forcing it to open its Play Store to greater competition, Reuters reported citing a court filing. The order, issued by US District Judge James Donato on 7 October, mandates that Google allow third-party app stores on Android and remove restrictions on competing in-app payment methods. The injunction stemmed from a lawsuit brought by Epic Games, the maker of Fortnite, which accused Google of monopolising Android app distribution. But Google argues that implementing the changes, set to take effect on 1 November, would pose safety, security and privacy risks for its Android ecosystem. Google has also filed an appeal with the 9th US Circuit Court of Appeals. (Reuters)

6.

Boeing axe: Boeing will cut 17,000 jobs, representing 10% of its workforce, and delay the first deliveries of the 777X jet to 2026 due to a month-long strike involving 33,000 US workers, the company said Friday. The strike has halted production of key jets, leading to USD5 billion ($7.42 billion) in third-quarter losses. Boeing has filed an unfair labour complaint, accusing the union of not bargaining in good faith, while union officials claim Boeing’s moves are tactics to disturb negotiations. Ratings agency S&P estimates the strike is costing Boeing about USD1 billion per month, threatening its investment-grade credit rating, Reuters reported. The company is also exploring options to raise USD10–15 billion to shore up finances. Boeing is facing additional scrutiny over safety issues and a potential court-supervised probation following a guilty plea to fraud under a deal with the Justice Department. (Boeing statement) (Reuters)

7.

EV play: European carmakers are planning to launch dozens of cheaper electric vehicles next year, aiming to regain market share and meet strict new EU emissions targets, the FT reported. Tough competition from Chinese automakers like BYD and Xpeng, coupled with slowing EV demand in Europe, has led manufacturers like Renault, Volkswagen, BMW and Stellantis to focus on more affordable models. Renault is faring better, avoiding profit warnings, while other manufacturers are facing shrinking profits and rising inventories, especially in the US. A Barclays analyst cited by the paper estimates global carmakers will launch more than 100 EV models this year in Europe and around 70 in 2025, while warning of an "EV winter" as consumer reluctance to buy current models grows, expecting improved options soon. Some industry leaders, including Stellantis CEO Carlos Tavares, called for a delay or relaxation of the emissions rules to avoid collective fines of up to €51 billion by 2030. (FT)

8.

Republic move: King Charles reiterated, through Buckingham Palace officials, that it is up to Australians to decide whether the country remains a constitutional monarchy or becomes a republic. The message was conveyed in a letter sent by the King’s private secretary to the Australian Republic Movement, which had written to request a meeting during the King and Queen Camilla’s visit this week, from 18 to 26 October. The palace letter, first reported by the Daily Mail, said King Charles, as a constitutional monarch, acts on the advice of his ministers and would not stand in the way if Australians choose a republic. The visit, the first since King Charles’ cancer diagnosis, includes events in Sydney and Canberra and is expected to draw protests organised by the British-based Republic group. (Daily Mail)(BBC)