CBA's profits higher on business lending growth

Good morning everyone, it's Ben here on a chilly Canberra morning, here's what's making headlines today.Today's must-reads:• Commonwealth Ba
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Good morning everyone, it's Ben here on a chilly Canberra morning, here's what's making headlines today.

Today's must-reads:
• Commonwealth Bank's profit edges higher
• Meet Australia's first female opposition leader 
Traders slash bets on heavy RBA cuts

What's happening now

Commonwealth Bank of Australia's profit edged higher in the third quarter amid growth in the firm's business lending. with transaction accounts up 7% and the division expanding at a faster rate than the broader market.

The Liberal Party has elected Sussan Ley as its new leader, the first woman to head the party since it was founded in 1944. She is also the first female opposition leader in Australia's history.

Sussan Ley Photographer: Fairfax Media/Fairfax Media

Traders are winding back bets on aggressive monetary easing by Australia in a cascading effect from the US and China agreeing to temporarily lower tariffs on each other's products. 

Tensions between Washington and Beijing appear to be de-escalating, with China committing to suspend its non-tariff barriers on US imports. On Bloomberg TV's Australia Ahead, USSC Economic Security Program Director Hayley Channer discusses what this means for Australia, as Prime Minister Albanese's government tries to strike a balance between the world's two largest economies.

USSC Economic Security Program discusses Australia's trade outlook amongst ever-changing tariffs. Click on the image to watch.

China's plans to lift its birth rate have helped a2 Milk's stock become the biggest gainer in New Zealand this year. The dairy company's Wellington-listed shares have surged 43%, topping the nation's benchmark S&P/NZX 50 Index.

The UN's aviation council ruled on Monday that Russia was responsible for the 2014 downing of Malaysia Airlines flight MH17 that killed all 298 passengers and crew, including more than 200 Dutch and Australian citizens.

One of Australia's richest family offices is drawing up plans to build more than £1 billion worth of housing on land surrounding its UK golf courses, in one of the first major tests of the British government's push to develop the nation's green belt and turbocharge the economy.

What happened overnight

Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping…

The Aussie and kiwi dollars were standouts overnight, more than erasing Monday's loss as investors backed both to outperform their major currency peers. A broadly weaker greenback helped after it was quick to lose any residual tariff premium in the wake of Xi's trade truce with Trump. Meanwhile, the US President struck a trillion dollar investment commitment over 10 years from the Saudis which includes high-end AI chips, pushing the tech-heavy NASDAQ index higher. 

The Trump administration plans to overhaul regulations on the export of semiconductors used in artificial intelligence, tossing out a Biden-era approach that drew strenuous objections from US allies and companies including Nvidia and Oracle.

US President Donald Trump walks on the South Lawn of the White House. Photographer: Chris Kleponis/CNP

The US president said he'll lift American sanctions against Syria following the toppling of former President Bashar al-Assad, a boost to the war-ravaged country's ambitions of rejoining the international community.

Hong Kong fast-tracked changes to its national security laws that further consolidate Beijing's control over the financial hub, with the new regulations taking effect immediately.

China tech giant Huawei's move to challenge the global duopoly, overseen by Microsoft's Windows and Apple's MacOS, was not by choice, writes Bloomberg Opinion's Catherine Thorbecke.

What to watch

All times Sydney:
• 11.30 a.m. — 1Q Australian wage data 

One more thing...

With his wispy frame and reserved style, Liang Wenfeng can come off as shy, nervous even, in meetings. The founder of DeepSeek—the Chinese startup that recently upended the world of artificial intelligence—is prone to faltering speech and prolonged silences. But new hires learn quickly not to mistake his quiet rumination for timidity.

A giant screen shows news footage of Chinese President Xi Jinping shaking hands with DeepSeek founder Liang Wenfeng. Photographer: Florence Lo/Reuters
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