Sledge match continues between Paris and Canberra

Scott Morrison has hit back at comments made by French President Emmanual Macron who made claims that the Australian Prime Minister knowingly lied about the $90bn submarine deal between the ally nations. Morrison has said he will not “cop sledging” and that Macron was well aware of Australia’s intentions to pull out of the Naval Group contract with France, opting for the AUKUS deal. “I’ve got broad shoulders, I can deal with that. But those slurs, I’m not going to cop sledging of Australia, I’m not going to cop that on behalf of Australians. I can deal with whatever people throw at me. But Australia has a proud record when it comes to our defence capability,” Morrison said.

UK takes bold step at COP26

According to sources close to the COP26 UN Climate Change summit currently being held in Glasgow, the UK is negotiating with at least 18 countries to agree to stop funding of foreign fossil fuel projects by the end of 2022, with a one-page statement to be unveiled later this week. “The planned statement builds on similar promises this year from the U.K., European Union and the U.S. as well as earlier pledges to stop financing overseas coal projects. While not binding, it would mark a further tightening of the flow of money to fossil fuel projects from publicly backed development banks,” Bloomberg reports.

ASX to rise, RBA to release policy statement

A late rally from US stocks indicates a positive open for the ASX this morning. ASX futures were up 13 points or 0.2% to 7360 near 7am AEDT. On Wall St: Dow +0.3% S&P 500 +0.2% Nasdaq +0.6%. All eyes will be on the RBA’s policy statement released at 2:30pm AEDT today. According to analysts at NAB: “where last week’s de facto abandonment of the 0.1 per cent April 2024 Yield Curve Control target is expected to be formalised. In doing so, presumably the broad contours of the RBA’s forecast revisions, to be revealed in the Statement today prior to publication in Friday’s [Statement on Monterary Policy] would, if realised, allow for rates ‘lift-off’ potentially occurring somewhat earlier than April 2014”.

Biden administration sets sights on stablecoins

The Biden administration suggests that stablecoins, a type of digital asset pegged to traditional currencies, could transform the way Americans pay for everything from cell phones to haircuts. The President’s Working Group on Financial Markets found that, when regulated, stablecoins could “support faster, more efficient, and more inclusive payments options.” Still, US President Joe Biden’s economic advisors said Congress should pass legislation that limits stablecoin issuance to insured banks, a move that would fly in the face of decentralisation within cryptocurrency. CNBC reports.

Third world nations call out the rich at COP26

Developing nations such as Libya, India and Honduras have expressed their view that richer countries must further live up to their financial commitments to fund the fight against climate change. Third world nations are typically among the most vulnerable to the effects of climate change. “For many developing nations, climate change is a big danger to their very existence,” said India Prime Minister Narendra Modi. “Time demands that we need to take big steps.” He called on developed nations to make $1 trillion in climate finance available “as soon as possible”.