Good morning. Here's what happened overnight and what you need to know today.
1.
Bank on it: The US is drafting sanctions that could cut off some Chinese banks from the global financial system, a threat aimed at pressuring Beijing to curtail its exports of commercial goods with military applications to Russia. Despite heeding initial warnings against arming Russia, China has become the primary supplier of crucial dual-use items like circuitry, aircraft parts and machinery – allowing Moscow to rebuild its military production capacity decimated by over two years of war in Ukraine. As allies worry Russia could outlast Ukraine through attrition, the US hopes the risk of Chinese banks losing access to the dollar system and disrupting Europe ties will persuade Beijing to change course on exports. But the threat faces challenges, as little-known regional Chinese banks have gradually replaced major lenders in facilitating deals. (Wall Street Journal)
2.
Burn notice: Australian Federal Police boss Reece Kershaw has accused social media companies like X Corp of "pouring accelerant on the flames” of disinformation following Australia's recent stabbing attacks. Kershaw's comments were released ahead of his address to the National Press Club in Canberra alongside ASIO director-general Mike Burgess. Kershaw will allege that social media companies are “refusing to snuff out the social combustion on their platforms”, and that his "door is open" to leaders like Elon Musk and Mark Zuckerberg to discuss the issue. In his address, Burgess will criticise recent moves by companies like Meta towards expanded end-to-end encryption on their messaging platforms, which he will argue compromises ASIO's ability to investigate Australian extremist networks. (Capital Brief)
