Australia news LIVE: High stakes for PM’s talks with Trump after failure to sign PNG treaty; Federal Reserve cuts rates amid concerns for labour market

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7.17am

‘Really disappointing’ delay on PNG treaty: McKenzie

By Emily Kaine

Nationals Senator Bridget McKenzie has called Albanese’s failure to sign a historic mutual defence treaty with PNG this week “really, really disappointing” but has acknowledged that these deals can be “really challenging”.

“We know the geostrategic challenges across the Pacific… And it’s really challenging at the moment, and we can’t underestimate the level of influence that other regional players have in that space. Now there’s conflicting reports this morning in the papers about the influence of the CCP,” McKenzie told Today this morning.

“This is obviously a long-standing and critical relationship with PNG. So hopefully he can have another go and land this plane.”

Albanese returned from his visit to PNG on Wednesday without signing a landmark defence treaty with its Pacific neighbour.

7.02am

Middle East oil giant abandons $30 billion bid for Australia’s Santos

By Nick Toscano

XRG, the foreign investment arm of the Abu Dhabi National Oil Company (ADNOC) said on Wednesday night that they had withdrawn their blockbuster offer to acquire Santos, the second-largest Australian oil and gas company, ending months of negotiations.

The Middle Eastern oil giant vying to take over Australian fossil fuel producer Santos has walked away from the proposed $30 billion deal just two days before the deadline. It would have been the biggest cash takeover in the country’s history.

Abu Dhabi’s national oil company has abandoned a $30 billion takeover bid for Australia’s Santos.

“The XRG-led consortium announced today that it has withdrawn its indicative offer and will not proceed with a binding offer for Santos,” it said. “While the consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the consortium’s assessment of its indicative offer.”

ADNOC had expressed an eagerness to acquire Santos’s assets in Australia and overseas in a push to expand its production of liquefied natural gas (LNG), and gain exposure to growing Asian gas markets.

Read the full report from Nick Toscano here.

6.50am

Federal Reserve cuts rates, concern grows for nation’s labour market

The Federal Reserve Bank cut its key interest rate by a quarter-point and projected it would do so twice more this year as concern grows at the central bank about the health of the nation’s labour market.

The move is the bank’s first cut since December and lowered its short-term rate to about 4.1 per cent, down from 4.3 per cent.

Federal Reserve officials, led by Chair Jerome Powell, had kept their rate unchanged this year as they evaluated the impact of tariffs, tighter immigration enforcement, and other Trump administration policies on inflation and the economy. Trump had been badgering Powell to cut rates for months.

The Fed is facing both a challenging economic environment and threats to its traditional independence from day-to-day politics.

Hiring has weakened while inflation remains stubbornly elevated. It rose 2.9 per cent in August from a year ago, according to the consumer price index, up from 2.7 per cent in July and noticeably above the Fed’s 2 per cent target.

“In this less dynamic and somewhat softer labour market, the downside risks to employment appear to have risen,” Powell said at a press conference following a two-day meeting.

6.50am

High stakes for Albanese-Trump talks after failure to sign PNG treaty

By Emily Kaine

Albanese is being urged to lobby Trump to step up efforts to counter China’s influence and stop key regional partnerships from floundering after Australia failed to sign a historic bilateral defence treaty with PNG this week.

The PM returned to Australia on Wednesday without finalising the agreement with its Pacific neighbour. It was the government’s second security agreement to fall through in the past eight days, after Australia also failed to strike a security pact with Vanuatu last week, in what the federal opposition has called “a serious foreign policy embarrassment”.

Prime Minister Anthony Albanese and his PNG counterpart James Marape signing a communique in Port Moresby today. The PM failed to sign a new bilateral defence treaty with PNG during his Port Moresby trip.

The news comes just days before Albanese is set to fly to the States for the opening session of the UN General Assembly where he is likely to meet for talks with Trump.

A meeting between the two leaders is yet to be scheduled, but Albanese will be attending a reception held by Trump in New York on Tuesday next week.

What’s making news this morning

By Emily Kaine

Good morning and welcome to the national news live blog for Thursday, the 18th of September. My name is Emily Kaine, and I’ll be bringing you rolling updates through the morning. Here’s what is making headlines today:

Albanese is being urged to lobby Trump to step up efforts to counter China’s influence and stop key regional partnerships from falling into oblivion after Australia failed to sign a historic bilateral defence treaty with PNG this week. The PM returned to Australia on Wednesday without finalising the agreement with PNG – it was the government’s second security agreement to fall through in the past eight days, after Australia also failed to strike a security pact with Vanuatu last week.
The Federal Reserve Bank has cut its key interest rate for the first time since December and lowered its short-term rate to about 4.1 per cent, down from 4.3 per cent as concern grows at the central bank about the state of the nation’s labour market.
Trump’s state visit to the UK has kicked off with a bang, as the President attends a state banquet hosted by King Charles at Windsor Castle. Follow along with our dedicated rolling updates on Trump’s visit here.
Middle East oil giant XRG – the foreign investment arm of the Abu Dhabi National Oil Company (ADNOC) – said on Wednesday night they had withdrawn their offer to acquire Santos, the second-largest Australian oil and gas company, ending months-long negotiations and walking away from a proposed $30 billion deal.