Good morning, it’s Angus here in Sydney. Here’s what you need to know this morning, with a sweeping trade deal between the US and China on the cards. But first...

Today’s must-reads:

• RBA’s emerging headwinds for rates
• Rare earths plant planned in US
• US and China tee up trade deal

What’s happening now

Just as Australia’s central bank was on track to meet its inflation and employment mandate, fresh data may suggest emerging headwinds that challenge the interest rate-setting board’s assumptions. Third-quarter consumer-price data on Wednesday is shaping as a critical guide for Governor Michele Bullock and her colleagues ahead of their Nov. 3-4 policy meeting.

Australian Strategic Materials Ltd. aims to choose a location for its planned US rare earths plant by the end of this year, capitalizing on President Donald Trump’s backing for the sector. The firm has been in talks with the Pentagon about funding to support a plant in America producing metal for rare-earth magnets, Chief Executive Officer Rowena Smith said on Bloomberg TV.

Photographer: Brendon Thorne/Bloomberg

Internal pressure within Australia’s conservative opposition coalition to drop net-zero emissions targets intensified as key figures stepped up their attacks on the goals. “We’re not getting a good deal from net zero. It’s been a bit of a scam,” Matt Canavan, deputy leader of the National Party, said on ABC’s Insiders program. Sarah Henderson, a Liberal Party senator, said on Sky News that she would recommend “no net-zero laws for this country.”

Australia’s government has earmarked A$83.5 million ($54.4 million) to build cyber-security capacity across the Indo-Pacific, saying global cooperation is key as online crimes become more complex and sophisticated.

The Australian government will convene a two-day meeting on Monday to explore changes to its copyright framework, as it seeks to meet the challenges posed by artificial intelligence. The Copyright and AI Reference Group will discuss the potential for a new paid collective licensing framework.

What happened overnight

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

The Australian and New Zealand dollars extended their winning streak into a third week this morning, lifted by signs of progress in US–China trade talks. The US dollar brushed off a delayed inflation report that came in softer than expected, adding to expectations that the Federal Reserve will trim interest rates this week. A similar cooling in Wednesday’s Australian inflation data would strengthen the case for an RBA rate cut next month. In New Zealand, markets will be watching ANZ business and consumer confidence figures and fresh comments from the Reserve Bank. ASX futures are pointing to a firm start to the day and week ahead. In the US, key Big Tech earnings this week could dictate the direction of the US stock market for the rest of the year.

Top trade negotiators for the US and China said they came to terms on a range of contentious points, setting the table for leaders Donald Trump and Xi Jinping to finalize a deal and ease trade tensions that have rattled global markets. After two days of talks in Malaysia wrapped up Sunday, a Chinese official said the sides reached preliminary consensus on topics including export controls, fentanyl and shipping levies. 

US President Donald Trump unveiled a flurry of trade deals during his first day in Asia, looking to shore up access to critical minerals and a market for US agricultural goods ahead of a critical meeting with Chinese President Xi Jinping. The White House’s hope is that the framework trade pacts can bolster Trump’s hand before he sits down with Xi later this week in South Korea.

Bloomberg

Swiss drugmaker Novartis AG agreed to buy biotechnology company Avidity Biosciences Inc. in a deal that values it at $12 billion. Avidity is developing experimental drugs to treat rare diseases, including a neuromuscular disease known as myotonic dystrophy type 1.

Argentina is voting Sunday in a midterm election that will serve as a crucial referendum on President Javier Milei’s ambitious austerity policies and, potentially, a $40 billion rescue package from the Trump administration.

Anita Pouchard Serra / Bloomberg

The first direct flight between India and China in more than five years took off from Kolkata on Sunday night, in the latest sign of warming ties between two of the world’s biggest economies. IndiGo flight 1703 left Kolkata at 9:53 p.m. local time for Guangzhou in southern China. Diplomatic ties between the rivals are on an upswing as they both contend with US tariffs.

French authorities have arrested several suspects after a frantic manhunt for the men who staged a spectacular daytime heist at the Louvre museum that gripped the world and embarrassed the government in Paris.

What to watch

• Reserve Bank Governor Michele Bullock speaks at the Australian Business Economists annual dinner at 7:15 p.m. Sydney time.

One more thing...

New Zealand’s economy and tourism have been in a slump, but relief is coming from the west. Australians — armed with their strongest dollar in three years against the kiwi — are streaming across the Tasman. Everyone from newlyweds and rugby fans are cashing in.

We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here.

Follow us

You received this message because you are subscribed to Bloomberg’s Australia Briefing newsletter. If a friend forwarded you this message, sign up here to get it in your inbox.

|