UBS meets Trump officials over potential move to US, says NY Post

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

---

1.

UBS move: Swiss banking giant UBS is ramping up its threats to leave Switzerland and set up in the US after local regulators proposed new capital requirements that could force the bank to increase its cushion against losses by USD 26 billion ($39.2 billion), according to the New York Post. The Swiss government introduced the rules following UBS’s 2023 takeover of Credit Suisse amid concerns of a fresh banking crisis. UBS executives led by Chairman Colm Kelleher and CEO Sergio Ermotti have met with officials in Trump’s administration to prepare for a possible strategy shift, which could include the purchase of a US bank or a merger, according to the report. The paper said the bank had no comment. UBS is working with regulators in Bern to scale back the planned increases, with Ermotti calling the proposals “very punitive and excessive” in a Bloomberg interview last week. He also said UBS wanted to continue to operate as a global bank based in Switzerland. (NYPost)(Bloomberg)(Reuters)

2.

AUKUS lift: Anthony Albanese announced a $12 billion investment in the Henderson Defence Precinct near Perth to support submarine maintenance and naval shipbuilding under the AUKUS agreement, with the site expected to cost $25 billion over the next decade. The announcement comes ahead of his trip to the US, where the Prime Minister hopes to meet Donald Trump amid a Pentagon review of the AUKUS pact and growing pressure from the Trump administration for Australia to lift defence spending. The facility will build landing craft and frigates and include docking stations to support the rotation and maintenance of US and UK submarines, as well as the future nuclear-powered submarines Australia will receive under AUKUS. The government says the project will create more than 10,000 jobs. Meanwhile, The Washington Post reported US Secretary of State Marco Rubio privately reassured Defence Minister Richard Marles that the AUKUS deal will proceed. When asked on the ABC’s Insiders program, Marles did not confirm that. He said the investment lifts total increased defence spending to nearly $70 billion over the decade. The first rotational deployment of US and UK submarines to WA is expected from 2027, with Australia’s first Virginia-class submarine due in the early 2030s. (WaPo)(ABC)(AFR)(Nine)

3.

The signal: The Albanese government is stalling on its news bargaining incentive, leaving media executives anxious as Google’s multimillion-dollar publisher deals edge towards expiry. Labor officials have told media bosses to expect a consultation paper—now more than six months overdue—shortly after the prime minister returns from the US. Executives had hoped Anthony Albanese’s trip to New York for the UN General Assembly would gauge how US President Donald Trump might respond to the policy, but it's not on the agenda, according to a person familiar with planning. Labor’s timeline would see consultation begin nine months after the framework was announced by then-assistant treasurer Stephen Jones in December. Pressure is mounting as some of Google’s deals expire in early 2026, threatening more than $100 million in annual revenue for Nine, Seven, the ABC and The Guardian. Privately, executives fear Labor is wary of provoking Trump. Google, meanwhile, has privately complained about maintaining a wide range of deals while Meta exited without penalty, but publicly has stressed it is committed to commercial agreements, having renewed about 50 this year, including one with AAP. (Capital Brief)

4.

Chip check: US and Chinese officials began talks in Madrid over the weekend on trade, tariffs and TikTok, potentially laying the groundwork for a meeting between Donald Trump and Xi Jinping at the APEC summit in October. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met Chinese Vice Premier He Lifeng and trade negotiator Li Chenggang at Spain’s foreign ministry, in their fourth round of negotiations in as many months. The talks follow President Trump’s extension of US tariffs on Chinese goods of about 55% until 10 November and come ahead of a 17 September deadline for TikTok’s owner ByteDance to divest its US operations or face a ban, though a source told Reuters another extension is expected. The meetings also follow US sanctions on 23 Chinese firms, including two tied to SMIC, and comes as China earlier in the weekend launched anti-dumping and anti-discrimination probes into US analogue chips. Bessent separately urged G7 allies to impose tariffs on China and India over their purchase of Russian oil. (Bloomberg)(Reuters)(NYT)(SCMP)(NBC)

5.

Pacific blend: Australia and Papua New Guinea will this week sign a landmark defence treaty to “totally integrate” their military forces, the ABC reported citing PNG Defence Minister Billy Joseph. The pact will allow both countries to recruit each other’s citizens, operate with shared equipment and includes a clause similar to, but reportedly less onerous than, NATO’s Article IV, requiring consultations when security or sovereignty is threatened. The ABC said a submission would go to PNG’s cabinet on Monday before signing by both prime ministers, while The Australian reported an announcement is expected Wednesday. Papua New Guineans serving in the ADF will be eligible for citizenship, with Defence Minister Richard Marles indirectly confirming they will receive equal pay. Asked on the ABC’s Insiders program, Marles declined to provide details ahead of official announcements but called the treaty “a really significant agreement” that would transform defence cooperation. The deal replaces the 1977 Status of Forces Agreement and follows negotiations that began in January. (Capital Brief)(ABC)(The Australian)

6.

Yes! yield: Brookfield Asset Management is in talks to buy US landlord Yes! Communities from Singapore’s sovereign wealth fund GIC in a deal valued at more than USD 10 billion ($15 billion), financial media reported citing unnamed sources. Yes!, one of the largest operators of manufactured-housing communities in the US, runs about 300 sites and had been exploring an IPO in 2025, Bloomberg reported. The acquisition would be among Brookfield’s largest and comes as the USD 1 trillion investment group has spent more than USD 10 billion on US homes and apartments since early last year. Elsewhere, a financial disclosure showed that Steve Witkoff, Donald Trump’s special envoy for peace missions, sold a USD 120 million stake in his real estate company to resolve potential conflicts of interest. Witkoff reported at least USD 350 million in assets, received USD 34 million in distributions, was paid at least USD 5,000 by Bally’s Corp, and disclosed USD 31 million in debts. (FT)(Bloomberg)

7.

Semiconductor Sceptre: The United Kingdom and the United States are set to sign a “ground-breaking” technology agreement during President Donald Trump’s state visit to Britain next week, the UK government said. The accord will focus on AI, semiconductors, telecommunications and quantum computing, boosting opportunities for businesses and consumers on both sides of the Atlantic. Trump is scheduled to arrive Tuesday for a three-day visit, his second, accompanied by US executives including Nvidia CEO Jensen Huang and OpenAI’s Sam Altman. BlackRock plans to invest up to GBP 500 million ($1 billion) in Britain’s data centres, while Nvidia, OpenAI and CoreWeave are also expected to announce UK investments. Separately, Reuters reported Airbus, Thales and Leonardo may combine their satellite businesses under “Project Bromo,” with a first deal possible in 2025, citing Airbus Defence and Space CEO Michael Schoellhorn in an interview with Italian daily Il Corriere della Sera. (Reuters)(Bloomberg)

8.

Stone strong: Israeli forces reportedly destroyed at least 30 residential buildings in Gaza City on Sunday, killing at least 13 Palestinians as they escalate strikes on the city, while US Secretary of State Marco Rubio arrived in Israel to discuss the war. Israel said it carried out five waves of strikes on more than 500 targets, including Hamas reconnaissance sites, tunnel openings and weapons depots. The military has ordered residents to evacuate Gaza City to the south, to what it designated as a humanitarian zone, estimating 250,000 have left, though hundreds of thousands remain. Rubio met Prime Minister Benjamin Netanyahu at the Western Wall, where Netanyahu said US-Israel ties were “as strong and as durable as the stones of the Western Wall.” (The Hill)(AP)(NYT)