Good morning, it’s Angus here in Sydney. Here’s what you need to know on this Tuesday morning, as the pressure on ANZ shows no sign of relenting.

Today’s must-reads:
• ANZ’s regulator calls for reset
• Submarine deal confidence
• Sydney Airport’s terminal overhaul

What's happening now

Australia’s top securities regulator said ANZ Group Holdings Ltd.’s new chief Nuno Matos still has a lot of work to do to avoid a repeat of past misconduct, after the bank agreed to pay a record fine. “This has been a dark day for ANZ,” Joe Longo, chair of the Australian Securities & Investments Commission, said in an interview. Matos has “inherited some very significant issues,” but the bank can now try to “reset and renew,’’ he said.

Australia is confident its wide-ranging security agreement with the US and UK will push ahead despite a Pentagon review, people familiar with the matter said. The Trump administration’s review of the so-called Aukus agreement is focused mainly on reinforcing the pact rather than unraveling it, according to the people.

Sydney Airport proposed a long-term overhaul of domestic and international terminal operations to cope with a 75% increase in passengers in the next 20 years. The two-decade plan lays out for the first time long-term flight demand in Australia in the post-pandemic era. Some 72.6 million passengers a year are expected to use Sydney Airport by 2045.

Illustration of Sydney Airport's terminal expansion. Source: Sydney Airport

The Future Fund’s investment chief resigned from the A$252 billion ($168 billion) Australian sovereign wealth fund to take up a role in the Middle East. Ben Samild joined the Future Fund in 2013 and had been chief investment officer for just over two years. He’s heading to the Abu Dhabi Investment Council, said a person familiar with the matter, who asked not to be named as the details aren’t yet public. 

AMP Ltd. has agreed to pay A$120 million to settle a class action alleging the financial group charged excessive fees on some pension accounts for more than a decade. Sydney-based AMP made no admission of liability in the class action, which covered activity from July 2008 to May 2020. 

Australia will spend A$9 billion on climate adaptation through 2030 as it braces for more frequent and severe hazards caused by global warming. The money is earmarked for flood mitigation, bushland conservation, agricultural support and health management, according to the National Adaptation Plan. A separate report showed the nation at risk of losing A$40 billion a year due to climate change. 

What happened overnight

Here’s what my colleague, market strategist Mike “Willo” Wilson says happened while we were sleeping…

US stocks edged higher, with the S&P 500 Index topping 6,600, as traders saw a Federal Reserve cut on Wednesday as a sure thing. The only question is how many more reductions are coming. Lower US bond yields dragged the dollar down and pushed the Aussie and kiwi higher, along with talk of stimulus for China, our common trading partner. Two Reserve Bank of Australia officials will deliver remarks today while New Zealanders get an idea how much of their bonds are held offshore. The former may move markets, the latter won’t. ASX futures point to a positive open for local stocks.

S&P 500 tops 6,600. Photographer: Michael Nagle/Bloomberg

President Donald Trump said he would speak with Chinese leader Xi Jinping on Friday as US and Chinese officials reached a framework deal on keeping the TikTok app running in the US. It would be the first direct engagement between Trump and Xi since June.

China ruled that Nvidia Corp. violated anti-monopoly laws with a high-profile 2020 deal, ratcheting up the pressure on Washington during sensitive trade negotiations. The surprise announcement emerged with US and Chinese officials heading into a second day of wide-ranging talks in Madrid over tariffs.

Alphabet Inc. joined an elite group of companies valued at more than $3 trillion, the latest sign of improving investor sentiment toward the Google parent. The stock has soared more than 70% from its April low. Nvidia Corp., Microsoft Corp. and Apple Inc. are the only other publicly traded companies valued at more than $3 trillion.

Elon Musk responded to an unprecedented pay proposal from Tesla Inc.’s board by buying about $1 billion worth of shares, sending the carmaker’s stock soaring into positive territory for the year. The purchase coincided with Tesla Chair Robyn Denholm speaking with reporters about the merits of awarding Musk around $1 trillion worth of stock if Tesla achieves a series of ambitious milestones.

President Donald Trump and Vice President JD Vance pledged to investigate left-leaning organizations following the killing of Charlie Kirk, laying the groundwork for federally scrutinizing political opponents that some administration officials and supporters have blamed in part for his death.

What to watch

• Reserve Bank of Australia Assistant Governor (Economic) Sarah Hunter speaks at an Australian Finance Industry Association conference at 9:50 a.m. in Sydney.

One more thing...

A Western trade alliance against the world’s two most-populous nations, China and India, is a silly idea, writes Bloomberg Opinion columnist Andy Mukherjee. China is past the point where it could be threatened with sanctions without tanking the global economy, while targeting India could be a huge misstep, Mukherjee writes.